<PAGE>
[GRAPHIC]
[GRAPHIC]
FORUM
FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1998
INVESTORS HIGH GRADE
BOND FUND
INVESTORS BOND FUND
TAXSAVER BOND FUND
MAINE MUNICIPAL
BOND FUND
NEW HAMPSHIRE
BOND FUND
INVESTORS GROWTH FUND
PAYSON BALANCED FUND
PAYSON VALUE FUND
<PAGE>
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TABLE OF CONTENTS SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
A Message to Our Shareholders..................... 1
Discussion: Forum Investment Advisors, LLC........ 2
Forum Funds Performance........................... 3
FINANCIAL STATEMENTS OF THE FORUM FUNDS
Schedules of Investments:
Investors High Grade Bond Fund.................. 4
Investors Bond Fund............................. 5
TaxSaver Bond Fund.............................. 7
Maine Municipal Bond Fund....................... 10
New Hampshire Bond Fund......................... 15
Investors Growth Fund........................... 18
Payson Balanced Fund............................ 20
Payson Value Fund............................... 22
Notes to Schedule of Investments.................. 23
Statements of Assets and Liabilities.............. 24
Statements of Operations.......................... 26
Statements of Changes in Net Assets............... 28
Financial Highlights.............................. 32
Notes to Financial Statements..................... 36
FORUM FUNDS-Registered Trademark-
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(This page has been left blank intentionally.)
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A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
September 30, 1998
Dear Investor,
Forum Funds is pleased to send you this semi-annual report for the
period ended September 30, 1998, and to share with you the financial
highlights of the period and our perspective on the financial markets.
Total net assets for the eight Forum Funds (the "Funds") in this
semi-annual report now stand at over $270 million. The fiscal year for
the Funds began on an upbeat note, as the stock market continued to leap
from height to height. But as the summer heated up, the market began
cooling off, and by the end of September, investors had good reason to
be concerned. As measured by the Standard & Poor's 500, the market was
down nearly 15% from its July high, although it still showed a gain of
about 6% for the calendar year. For the six month period ending
September 30, 1998, the Morningstar Growth Fund Average had a total
return of -13.82%; however, our Investors Growth Fund did somewhat
better, showing a total return of -10.28%, not including the impact of
the maximum 3.75% sales charges. Fortunately, the conservative approach
our portfolio manager has toward the Fund somewhat mitigated the damage
caused by the falling market.
Investors in our fixed income funds have more to be grateful for. In
contrast to our stock funds, total returns on fixed income funds have
been positive during the most recent six month period. For example,
Investors High Grade Bond Fund had a total return of 6.60% for the
period, not including the maximum 3.75% sales charges. To put that
figure in perspective, note that the Morningstar Corporate Bond -- High
Quality Funds average had a total return of 5.23% for the same period.
There certainly has been volatility in the bond market, but the trend in
interest rates has been consistently down. Investors in the High Grade
Bond Fund also benefited from the financial crisis in emerging market
economies as the period came to a close, because this caused a flight to
quality.
This report includes additional performance information on all the
Forum Funds. As you consider these figures, keep in mind the relatively
short period they cover and the volatility of the markets in which the
Funds invest. Most important, we urge you to stay focused on your longer
term investment objectives rather than short-term performance. We will
continue to seek out opportunities for each fund that will allow them,
and you, to meet your investment objectives over time.
Thank you for the confidence you have placed in Forum Funds. We will
strive to continue meeting your needs by providing superior investment
service. If you have questions, please discuss them with your local
investment professional or call us at 207-879-0001.
Sincerely,
[SIGNATURE]
John Y. Keffer
PRESIDENT
FORUM FUNDS-Registered Trademark-
<PAGE>
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DISCUSSION: FORUM INVESTMENT ADVISORS, LLC
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ECONOMIC AND FINANCIAL DEVELOPMENTS
As U.S. economic growth continued at a somewhat reduced rate through the
most recent calendar quarter, long-simmering troubles were coming to a boil
elsewhere in the world. Emerging, and particularly Asian, economies showed
evidence of significant, indeed almost crippling weakness. The most notorious
cases were the financial meltdown in Russia and the well-publicized troubles
that resulted in a bailout of a highly leveraged investment hedge fund. These
multiple crises left the markets gripped by fear, when only shortly before,
excessive optimism was the dominant mood.
At the end of the calendar quarter, signs that global weakness would impact
the U.S. economy strengthened. Unemployment rose to a rate of 4.6% in September,
its highest in six months. A University of Michigan survey showed consumer
confidence falling. Consumer purchases account for about two-thirds of U.S.
economic activity, so, declining confidence is a predicator of a slowdown in
spending -- and in the economy. These factors raised hopes of interest rate cuts
by the Federal Reserve Board and caused Wall Street analysts to cut estimates
for corporate earnings growth.
Adding fuel to the fire, these dramatic events caused a pullback in lending
by banks. A credit crunch was feared and concerns about severe economic
repercussions arose. A traditional "flight to quality" caused the U.S.
government bond market to perform strongly (to the detriment of the stock
market). The yield difference between Treasury bonds and corporate and
mortgage-backed bonds widened significantly. To these factors add a lack of
liquidity and you get the kind of crisis in confidence that brings the
doomsayers out of the woodwork.
Troubles in global economies and financial markets are certain to keep
investors on edge and volatility high, yet it is unclear exactly what their
impact will be on U.S. corporate earnings growth. It is generally agreed that
earnings growth is continuing to slow but there is disagreement on whether the
stock market is appropriately valuing those earnings. Bears believe a recession
or worse lies ahead, and conclude that stocks are overpriced. Bulls say that
although earnings growth is slowing, interest rates remain low, and besides --
sheer numbers argue for continued growth in investing as more and more people
put money into retirement plans. Bears and Bulls would probably agree that
interest rates will likely stay where they are or decline. Obviously, neither
perspective is 100% on the mark, making it imperative for each investor to keep
foremost in mind their individual objectives and time horizon as they allocate
assets among funds offered.
2 FORUM FUNDS-Registered Trademark-
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FORUM FUNDS PERFORMANCE
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The volatile markets made fund management a more than ordinary challenge over
the past six months. Forum Funds took the challenge and achieved competitive
total returns. All of our fixed income funds were able to surpass the total
returns of their respective benchmarks, with the best returns going to the
Investors High Grade Bond Fund which invested in the highest quality
instruments. The equity funds turned in a mixed performance relative to their
benchmarks, with the best relative returns going to the Investors Growth Fund
which started up less than a year ago.
SUMMARY PERFORMANCE INDICATORS
SIX MONTH TOTAL RETURN -- PERIOD ENDING SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
FORUM VS.
FORUM INDEX INDEX
----------- -------------- ------------
<S> <C> <C> <C>
Investors High Grade Bond Fund............................................... 6.60% 5.23%(1) 1.37%
Investors Bond Fund.......................................................... 4.85% 4.61%(2) 0.24%
TaxSaver Bond Fund........................................................... 4.19% 3.98%(3) 0.21%
Maine Municipal Bond Fund.................................................... 4.12% 3.98%(3) 0.14%
New Hampshire Bond Fund...................................................... 4.39% 3.98%(3) 0.41%
Investors Growth Fund........................................................ -10.28% -13.82%(4) 3.54%
Payson Balanced Fund......................................................... -17.35% -5.78%(5) -11.57%
Payson Value Fund............................................................ -19.12% -11.15%(6) -7.97%
(1) MORNINGSTAR Corporate Bond-High Quality Funds Average:
270 Funds Rated
(2) MORNINGSTAR Corporate Bond-General Funds Average:
544 Funds Rated
(3) MORNINGSTAR Municipal Bond-National Funds Average:
550 Funds Rated
(4) MORNINGSTAR Growth Funds Average:
1,585 Funds Rated
(5) MORNINGSTAR Balanced Funds Average:
426 Funds Rated
(6) MORNINGSTAR Growth & Income Funds Average:
728 Funds Rated
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. FORUM AND MORNINGSTAR RETURN
FIGURES DO NOT INCLUDE THE EFFECT OF THE MAXIMUM 3.75% SALES CHARGES. DURING THE
PERIOD CERTAIN FEES AND EXPENSES WERE WAIVED BY THE SERVICE PROVIDERS. WITHOUT
THESE WAIVERS TOTAL RETURN AND RANKINGS WOULD HAVE BEEN LOWER.
3 FORUM FUNDS-Registered Trademark-
<PAGE>
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INVESTORS HIGH GRADE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
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<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS & NOTES (18.9%)
$ 1,000,000 ABN Amro Bank, North America Finance,
Inc., 8.25%, 8/1/09................... $ 1,134,165
500,000 BankAmerica Corp., 8.125%, 2/1/02....... 544,515
2,000,000 Comerica Bank, 8.375%, 7/15/24.......... 2,317,828
500,000 Dean Witter Discover, 6.25%, 3/15/00.... 509,495
2,000,000 Mercantile Bancorporation, 7.30%,
6/15/07............................... 2,219,748
-----------
Total Corporate Bonds & Notes
(cost $6,506,715) 6,725,751
-----------
GOVERNMENT AGENCY NOTES (7.0%)
FHLB (3.8%)
1,350,000 6.555%, 4/15/99......................... 1,360,881
FHLMC (0.9%)
300,000 6.60%, 11/12/99......................... 304,953
FNMA (2.3%)
750,000 7.50%, 2/11/02.......................... 814,043
-----------
Total Government Agency Notes
(cost $2,422,078) 2,479,877
-----------
GOVERNMENT MORTGAGE BACKED SECURITIES (14.4%)
GNMA
845,717 Pool 382828, 6.50%, 4/15/28............. 865,253
547,742 Pool 400138, 6.50%, 4/15/28............. 560,395
116,413 Pool 430637, 6.50%, 4/15/28............. 119,102
234,831 Pool 462566, 6.50%, 3/15/28............. 240,255
43,921 Pool 463682, 6.50%, 3/15/28............. 44,935
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GOVERNMENT MORTGAGE BACKED SECURITIES, CONTINUED
$ 845,608 Pool 463821, 6.50%, 4/15/28............. $ 865,143
1,119,751 Pool 463822, 6.50%, 4/15/28............. 1,145,616
658,513 Pool 468812, 6.50%, 4/15/28............. 673,724
71,818 Pool 473533, 6.50%, 4/15/28............. 73,477
219,478 Pool 473541, 6.50%, 4/15/28............. 224,548
295,137 Pool 474630, 6.50%, 4/15/28............. 301,955
-----------
Total Government Mortgage Backed Securities
(cost $4,998,929) 5,114,403
-----------
U.S. TREASURY NOTES (56.7%)
12,000,000 6.625%, 3/31/02......................... 12,866,256
1,000,000 5.875%, 2/15/04......................... 1,072,800
2,000,000 7.25%, 5/15/04.......................... 2,283,180
3,000,000 6.50%, 8/15/05.......................... 3,383,220
500,000 6.25%, 2/15/07.......................... 561,560
-----------
Total U.S. Treasury Notes
(cost $19,164,766) 20,167,016
-----------
SHORT-TERM HOLDINGS (3.0%)
88,540 Dreyfus Government Cash Management
Fund.................................. 88,540
1,000,000 Quincy Savings Bank CP, 5.51%,
10/5/98............................... 999,388
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Total Short-Term Holdings
(cost $1,087,928) 1,087,928
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Total Investments (100.0%)
(cost $34,180,416) $35,574,975
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 4 FORUM FUNDS-Registered Trademark-
<PAGE>
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INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
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<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (1.8%)
FHLMC (0.4%)
$ 291,892 Series 90 135-A, 8.75%, 5/15/00......... $ 298,028
-----------
OTHER (1.4%)
189,411 Merrill Lynch Mortgage Investors, Inc.,
Series 89 E, 9.40%, 9/15/09........... 203,681
970,612 RTC, Series 92 C8 D, 8.84%, 12/25/23
(b)................................... 964,546
-----------
Total Other 1,168,227
-----------
Total Collateralized Mortgage Obligations
(cost $1,422,913) 1,466,255
-----------
CORPORATE BONDS & NOTES (68.3%)
1,725,000 ABN Amro Bank, North America Finance,
Inc., 8.25%, 8/1/09................... 1,956,433
500,000 AT&T Corp., 4.375%, 5/1/99.............. 497,935
500,000 Alabama Power Co., 6.375%, 8/1/99....... 504,625
250,000 American Express Credit Co., 6.125%,
6/15/00............................... 254,940
750,000 Associates Corp. of North America,
6.625%, 6/15/05....................... 808,822
330,000 Associates Corp. of North America,
6.375%, 11/15/05...................... 352,377
500,000 Atlanta Gas Light Co., 5.90%, 10/6/03... 518,135
600,000 Banc One Corp., 7.60%, 5/1/07 678,594
1,000,000 BankAmerica Corp., 7.125%, 5/1/06....... 1,096,240
500,000 Bear Stearns Cos., Inc., 6.75%,
4/15/03............................... 524,740
500,000 Bell Atlantic Corp., 5.05%, 10/1/98..... 500,000
250,000 Boeing Co., 6.35%, 6/15/03.............. 266,310
500,000 Boeing Co., 8.10%, 11/15/06............. 601,165
3,000,000 CBS, Inc., ACA insured, 7.625%,
1/1/02................................ 3,199,914
250,000 CNA Financial Corp., 6.25%, 11/15/03.... 258,012
4,250,000 Chase Capital, 6.313% V/R, 8/1/28....... 4,158,838
500,000 Chase Manhattan Bank, N.A., 9.75%,
11/1/01............................... 562,763
5,000,000 Comerica Bank, 8.375%, 7/15/24.......... 5,794,570
1,000,000 Commercial Credit Co., 7.875%,
7/15/04............................... 1,129,250
1,000,000 Commercial Credit Co., 7.375%,
4/15/05............................... 1,105,690
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS & NOTES, CONTINUED
$ 500,000 Commercial Credit Co., 6.625%,
11/15/06.............................. $ 538,405
3,000,000 Conseco, Inc., 8.70%, 11/15/26.......... 3,139,539
1,000,000 Dow Chemical Co., 8.625%, 4/1/06........ 1,198,540
250,000 Duke Power Corp., 5.875%, 6/1/01........ 256,607
500,000 Dupont Corp., 8.125%, 3/15/04........... 573,395
500,000 Eli Lilly & Co., 8.125%, 12/1/01........ 548,250
500,000 First Chicago NBD Corp., 8.10%,
3/1/02................................ 546,805
500,000 First Chicago NBD Corp., 6.125%,
2/15/06............................... 518,055
600,000 Ford Motor Co., 7.25%, 10/1/08.......... 691,848
250,000 Ford Motor Credit Co., 7.25%, 5/15/99... 253,475
500,000 Ford Motor Credit Co., 6.375%,
4/15/00............................... 510,940
1,000,000 Ford Motor Credit Co., 7.50%, 6/15/04... 1,115,650
545,000 Ford Motor Credit Co., 6.25%, 12/8/05... 572,533
1,500,000 Ford Motor Credit Co., 6.125%, 1/9/06... 1,559,895
400,000 International Lease Finance Corp.,
8.375%, 12/15/04...................... 467,396
500,000 J.P. Morgan & Co., Inc., 7.625%,
9/15/04............................... 559,405
1,000,000 J.P. Morgan & Co., Inc., 6.25%,
12/15/05.............................. 1,036,160
450,000 Lehman Brothers Holdings, Inc., 5.57%
V/R, 1/12/99 (a)...................... 449,900
1,000,000 Lehman Brothers Holdings, Inc., 7.20%,
8/15/09............................... 983,530
2,000,000 Lehman Brothers Holdings, Inc., 8.50%,
8/1/15................................ 2,032,980
1,000,000 Leucadia Capital Trust I, 8.65%,
1/15/27............................... 898,057
750,000 Merchants National Corp. (a National
City Corp. subsidiary), 9.875%,
10/1/99............................... 781,894
500,000 Merrill Lynch & Co., Inc., 7.00%,
3/15/06............................... 536,770
500,000 Merrill Lynch & Co., Inc., 7.00%,
1/15/07............................... 538,945
250,000 Morgan Stanley Group, Inc., 7.50%,
9/1/99................................ 255,450
</TABLE>
See Notes to Schedule of Investments. 5 FORUM FUNDS-Registered Trademark-
<PAGE>
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INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
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<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
CORPORATE BONDS & NOTES, CONTINUED
<C> <S> <C>
$ 500,000 Morgan Stanley Group, Inc., 6.75%,
3/4/03................................ $ 530,795
1,000,000 NTC Capital, 6.208% V/R, 1/15/27........ 959,659
1,000,000 Nacolah Holding Corp. (a Sammons
Enterprises, Inc. subsidiary), 9.50%,
12/1/03............................... 1,051,618
500,000 Northern Telecom, Ltd., 6.00%, 9/1/03... 514,480
500,000 Norwest Financial, Inc., 6.20%,
9/15/99............................... 505,360
250,000 Norwest Financial, Inc., 6.125%,
8/1/03................................ 260,485
500,000 Paine Webber, Inc., 9.25%, 12/15/01..... 560,235
700,000 Republic New York Corp., 8.375%,
2/15/07............................... 829,234
2,000,000 SIGECO, 5.82% V/R, 12/1/98 (a).......... 2,000,000
500,000 Seagram Co., Ltd., 8.35%, 11/15/06...... 588,250
1,000,000 Sears Roebuck Acceptance Corp., 6.70%,
11/15/06.............................. 1,075,570
500,000 Security Pacific Corp., 6.00%, 5/1/00... 508,885
500,000 Southern New England Telephone, 7.125%,
8/1/07................................ 563,590
2,000,000 SunAmerica, Inc., 6.75%, 10/1/07........ 2,147,257
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Total Corporate Bonds & Notes
(cost $55,677,150) 57,429,195
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GOVERNMENT MORTGAGE BACKED SECURITIES (6.2%)
FHLMC (0.2%)
115,187 Pool 502128, 9.00%, 10/1/04............. 120,328
-----------
GNMA (6.0%)
88,434 Pool 406467, 6.50%, 3/15/26............. 90,552
152,228 Pool 452743, 6.50%, 12/15/27............ 155,808
1,662,382 Pool 462480, 6.50%, 1/15/28............. 1,700,783
495,028 Pool 462903, 6.50%, 2/15/28............. 506,463
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GNMA, CONTINUED
$ 2,556,012 Pool 463821, 6.50%, 4/15/28............. $ 2,615,059
-----------
Total GNMA 5,068,665
-----------
Total Government Mortgage Backed Securities
(cost $5,070,570) 5,188,993
-----------
MUNICIPAL BONDS (3.4%)
1,219,183 Coffee County, GA, Hospital Authority
RV, Taxable Anticipation Certificates,
Series B, ACA Insured, 9.00%, 12/1/12
(b)................................... 1,433,672
1,316,720 Coffee County, GA, Hospital Authority
RV, Taxable Anticipation Certificates,
Series B, 9.00%, 12/1/12 (b).......... 1,427,211
-----------
Total Municipal Bonds
(cost $2,680,620) 2,860,883
-----------
PREFERRED STOCK (4.7%)
4,000,000 Irwin Financial Corp., Capital Trust
I..................................... 1,070,000
6,850,000 NCBE Capital Trust...................... 1,806,688
8,000,000 Simmons First National Corp............. 1,050,000
-----------
Total Preferred Stock
(cost $3,738,300) 3,926,688
-----------
U.S. TREASURY NOTES (14.0%)
11,000,000 6.625%, 3/31/02
(cost $11,379,219).................. 11,794,068
-----------
SHORT-TERM HOLDINGS (1.6%)
1,369,372 Dreyfus Government Cash Management Fund
(cost $1,369,372)................... 1,369,372
-----------
Total Investments (100.0%)
(cost $81,338,144) $84,035,454
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 6 FORUM FUNDS-Registered Trademark-
<PAGE>
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TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
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<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS (99.2%)
COLORADO (3.3%)
$ 1,000,000 Douglas County, CO, SD #1, GO Bonds,
Series A, 8.00%, 12/15/09............. $ 1,337,380
-----------
FLORIDA (2.7%)
1,000,000 Cooper City, FL, Sales Tax RV, 7.25%,
10/1/11............................... 1,086,000
-----------
GUAM (1.5%)
560,000 Guam Power Authority RV, Series A, AMBAC
insured, 6.30%, 10/1/12............... 617,529
-----------
ILLINOIS (3.9%)
450,000 Illinois Development Finance Authority
RV, Community Rehabilitation Providers
Facilities Acquisition Program, Series
92, 8.25%, 8/1/12..................... 455,544
1,000,000 Illinois State, GO, 5.70%, 4/1/10....... 1,083,470
-----------
1,539,014
-----------
INDIANA (3.6%)
100,000 Hamilton Southeastern IN Conservative
School Building Corp. RV, First
Mortgage, 6.25%, 7/1/99............... 102,166
100,000 Hendricks, IN, Economic Development
Income Tax RV, Series A, 5.95%,
7/1/99................................ 101,877
100,000 Indiana Bond Bank RV, Special Program,
Series A2, Sumitomo Bank, Ltd., LOC,
6.30%, 1/1/00......................... 103,126
100,000 Indiana Bond Bank RV, Special Program,
Series B, 6.00%, 8/1/01............... 105,644
100,000 Indiana Health Facilities Financing
Authority Hospital RV, Community
Hospital of Indiana, Series A & B,
MBIA insured, 6.35%, 7/1/03........... 110,033
100,000 Indiana Muni Power Agency, Power Supply
System RV, Series B, MBIA insured,
5.00%, 1/1/00......................... 101,774
100,000 Indiana Transportation Finance Authority
Airport Facilities Lease RV, Series A,
6.00%, 11/1/01........................ 106,070
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
INDIANA, CONTINUED
$ 100,000 Logansport, IN, Multi-Purpose School
Building Corp. RV, First Mortgage,
5.40%, 7/1/00......................... $ 102,811
100,000 Monroe County, IN, School Building Corp.
RV, First Mortgage, 5.80%, 1/15/00.... 102,668
100,000 Noblesville, IN, West School Building
Corp., First Mortgage, 6.35%,
7/1/99................................ 102,066
100,000 North Harrison, IN, High School Building
Corp., First Mortgage, 4.90%,
7/1/99................................ 101,112
100,000 Shelby County, IN, Jail Building Corp.,
Jail Facilities RV, First Mortgage,
MBIA insured, ETM USG, 6.05%,
7/15/02............................... 108,104
100,000 South Bend, IN, Sewer Works RV, FGIC
insured, 4.50%, 12/1/98............... 100,194
100,000 South Vermillion, IN, Middle School
Building Corp., Educational Facilities
RV, First Mortgage, 5.00%, 1/15/00.... 101,644
-----------
1,449,289
-----------
KENTUCKY (3.0%)
1,000,000 Kenton County, KY, Water District RV,
6.00%, 2/1/17......................... 1,090,730
100,000 Kentucky Housing Corp. Housing RV,
Series B, 5.05%, 7/1/06............... 104,542
-----------
1,195,272
-----------
LOUISIANA (3.6%)
1,000,000 Louisiana Public Facilities Authority
RV, Extended Care Facilities
Authority-Comm-Care Corp., 11.00%,
2/1/14................................ 1,451,720
-----------
MARYLAND (1.6%)
625,000 Maryland State EDA Health Care
Facilities RV, Crescent Cities
Project, Series A, 5.30%, 12/20/18.... 648,025
-----------
MICHIGAN (7.4%)
250,000 Comstock Park, MI, Public Schools GO
Bonds, 6.00%, 5/1/06.................. 282,515
1,000,000 Grand Rapids, MI, Water Supply RV, FGIC
insured, 6.50%, 1/1/15................ 1,073,920
</TABLE>
See Notes to Schedule of Investments. 7 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MICHIGAN, CONTINUED
$ 250,000 Kent County, MI, Building Authority GO
Bonds, 5.10%, 12/1/07................. $ 267,612
200,000 Michigan Muni Bond Authority RV, Series
G, AMBAC insured, 6.20%, 11/1/04...... 224,896
1,000,000 Michigan State Strategic Fund Ltd.,
Detroit Edison Co., Project-BB, 6.50%,
2/15/02............................... 1,089,160
-----------
2,938,103
-----------
MISSOURI (1.5%)
500,000 Sikeston, MO, Electric RV, 6.00%,
6/1/16................................ 584,335
-----------
MONTANA (2.7%)
1,000,000 Forsyth, MT, PCR Refunding, Montana
Power Co., Series A, AMBAC insured,
6.125%, 5/1/23........................ 1,097,130
-----------
NEBRASKA (2.8%)
1,000,000 Douglas County, NE, SD #017, GO Bonds,
Millard, MBIA insured, 6.25%,
10/1/17............................... 1,099,730
-----------
NEW JERSEY (2.8%)
1,000,000 Essex County, NJ, Improvement Authority
RV, Utilities System East Orange
Franchise, MBIA insured, 6.00%,
7/1/18................................ 1,128,580
-----------
NEW YORK (1.0%)
350,000 New York State Thruway Authority,
Service Contract RV, Local Highway and
Bridge Project, 5.75%, 4/1/06......... 385,668
-----------
NORTH CAROLINA (3.4%)
750,000 Mecklenburg County, NC, Industrial
Facilities & PCR Financing Authority
RV, Fluor Corp. Project, 5.25%,
12/1/09............................... 780,727
505,000 North Carolina Eastern Muni Power RV,
Series A, USG COLL 6.00%, 1/1/26...... 594,905
-----------
1,375,632
-----------
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
OHIO (27.2%)
$ 1,000,000 Butler County, OH, Transportation RV,
Improvement District, Series A, FSA
insured, 6.00%, 4/1/11................ $ 1,143,550
1,000,000 Cleveland, OH, Public Power RV, 7.00%,
11/15/01.............................. 1,100,410
2,000,000 Hamilton, OH, Electrical System Mortgage
RV, Series A, FGIC insured, 6.00%,
10/15/23.............................. 2,182,340
700,000 Lakota, OH, SD UTGO Bonds, AMBAC
insured, 6.25%, 12/1/14............... 802,214
750,000 Montgomery County, OH, LTGO Bonds,
5.30%, 12/1/10........................ 816,810
795,000 Northwest, OH, SD LOC, GO Bonds, FGIC
insured, 5.50%, 12/1/12............... 885,980
500,000 Ohio State Air Quality Development
Authority, PCR, Cleveland Electric Co.
Project, FGIC insured, 8.00%,
12/1/13............................... 577,850
500,000 Ohio State Public Facilities Community
RV, Higher Education Capital
Facilities, Series II-A, 5.00%,
5/1/05................................ 530,615
1,500,000 Ohio State Turnpike Community RV, Series
A, 5.50%, 2/15/24..................... 1,670,715
655,000 Shelby County, OH, Hospital Facilities
RV, Wilson Memorial Hospital, ETM USG,
6.40%, 12/1/03........................ 700,837
435,000 Washington County, OH, Hospital
Refunding RV, Shelby General Hospital,
6.875%, 7/1/03........................ 468,321
-----------
10,879,642
-----------
OKLAHOMA (0.7%)
250,000 Claremore, OK, Public Works Authority
Capital Improvement RV, MBIA insured,
5.00%, 6/1/05......................... 265,623
-----------
PENNSYLVANIA (10.7%)
665,000 Allegheny County, PA, Hospital
Development Authority, Health Care RV,
Allegheny Valley School Project,
7.25%, 2/1/03......................... 703,071
</TABLE>
See Notes to Schedule of Investments. 8 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
PENNSYLVANIA, CONTINUED
$ 1,000,000 Allegheny County, PA, Hospital
Development Authority, Health Center
RV, West Penn Hospital Foundation,
Series 90, 8.00%, 1/1/05.............. $ 1,057,620
500,000 Bucks County, PA, IDA RV, Personal Care,
ETM USG, Series A, 10.00%, 5/15/19.... 837,500
350,000 Erie-Western Pennsylvania Port
Authority, Pennsylvania Refunding RV,
8.25%, 6/15/00........................ 376,271
1,000,000 Hampden, PA, IDA RV, Ralston Purina Co.
Project, 8.125%, 1/1/07............... 1,039,540
110,000 Pennsylvania HEFA RV, Medical College of
Pennsylvania, Series 91 B, 7.25%,
3/1/05, P/R USG 3/1/01 @102........... 121,097
125,000 Washington County, PA, IDA Refunding RV,
Presbyterian Medical Center, FHA
insured, 6.50%, 1/15/02............... 135,401
-----------
4,270,500
-----------
PUERTO RICO (9.6%)
1,000,000 Commonwealth of Puerto Rico, GO
Improvements Bonds, 5.50%, 7/1/13..... 1,104,040
80,000 Puerto Rico, Industrial, Medical &
Environmental RV, Abbott Chemicals,
Inc. Project, 6.50%, 7/1/09........... 80,737
1,860,000 Puerto Rico, Public Finance Corp.,
Commonwealth Appropriations RV, Series
A, 5.375%, 6/1/18..................... 2,038,783
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
PUERTO RICO, CONTINUED
$ 550,000 University of Puerto Rico RV, Series N,
MBIA insured, 6.25%, 6/1/04........... $ 618,860
-----------
3,842,420
-----------
TEXAS (2.0%)
750,000 Red River Authority, TX, PCR, Remarketed
8/1/90, Hoechst Celanese Corp. LOC,
7.50%, 8/1/12......................... 817,140
-----------
VIRGIN ISLANDS (0.7%)
80,000 Virgin Islands HFA, SFM RV, GNMA
Mortgage-Backed, 6.00%, 3/1/07........ 83,622
30,000 Virgin Islands PFA RV, Series B, USG
COLL, 7.25%, 10/1/07, P/R 10/1/00 @
101................................... 32,395
135,000 Virgin Islands Water & Power Authority
Electric System RV, 5.25%, 7/1/06..... 142,551
-----------
258,568
-----------
WEST VIRGINIA (3.5%)
1,300,000 Monongahela County, WV, Pollution RV,
Potomac Edison Co. Fort Martin, Series
B, 5.95%, 4/1/13...................... 1,403,155
-----------
Total Municipal Bonds (cost $37,970,162) 39,670,455
-----------
SHORT-TERM HOLDINGS (0.8%)
303,397 Boston 1784 Tax Free Money Market Fund
(cost $303,397)....................... 303,397
-----------
Total Investments (100.0%) (cost $38,273,559) $39,973,852
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 9 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS (98.8%)
GENERAL OBLIGATION--BOND BANK (5.5%)
$ 10,000 Maine Muni Bond Bank, Series C, 6.45%,
11/1/01............................... $ 10,799
50,000 Maine Muni Bond Bank, Series 88 A,
6.70%, 11/1/98........................ 50,144
50,000 Maine Muni Bond Bank, Series 88 A,
7.50%, 11/1/05, P/R 11/1/98 @ 102..... 51,177
40,000 Maine Muni Bond Bank, Series 88 B,
7.65%, 11/1/06, P/R 11/1/98 @
102.25................................ 41,046
50,000 Maine Muni Bond Bank, Series 88 B,
7.85%, 11/1/18, P/R 11/1/98 @ 103..... 51,690
60,000 Maine Muni Bond Bank, Series 88 C,
7.10%, 11/1/02, P/R 11/1/98 @
101.25................................ 60,943
50,000 Maine Muni Bond Bank, Series 89 B,
7.40%, 11/1/14, P/R 11/1/99 @ 102..... 53,094
210,000 Maine Muni Bond Bank, Series 90 B,
7.20%, 11/1/07, P/R 11/1/00 @ 102..... 228,945
50,000 Maine Muni Bond Bank, Series 90 B,
7.20%, 11/1/11, P/R 11/1/00 @ 102..... 54,510
150,000 Maine Muni Bond Bank, Series 90 B,
7.20%, 11/1/15, P/R USG, 11/1/00 @
102................................... 163,532
25,000 Maine Muni Bond Bank, Series 90 D,
7.375%, 11/1/10, P/R USG, 11/1/00 @
102................................... 27,340
100,000 Maine Muni Bond Bank, Series 92 B,
6.65%, 11/1/07........................ 112,842
85,000 Maine Muni Bond Bank, Series 92 B,
6.75%, 11/1/12........................ 96,235
100,000 Maine Muni Bond Bank, Series 92 C,
5.80%, 11/1/99........................ 102,590
150,000 Maine Muni Bond Bank, Series 92 E,
5.80%, 11/1/04........................ 163,374
20,000 Maine Muni Bond Bank, Series 93 A,
5.00%, 6/1/03......................... 21,209
205,000 Maine Muni Bond Bank, Series 93 C,
5.55%, 11/1/08........................ 220,668
25,000 Maine Muni Bond Bank, Series 93 D,
5.90%, 11/1/00........................ 26,135
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--BOND BANK, CONTINUED
$ 80,000 Maine Muni Bond Bank, Sewer & Water
Bonds, SRF Program, Series 91 A,
7.20%, 11/1/13, P/R USG, 11/1/01 @
102................................... $ 89,605
-----------
1,625,878
-----------
GENERAL OBLIGATION--LOCAL (19.6%)
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 5.75%,
10/1/01............................... 105,310
25,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 5.85%,
10/1/02............................... 26,748
150,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.00%,
10/1/03............................... 163,374
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.10%,
10/1/04............................... 109,150
250,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.35%,
10/1/07............................... 271,098
100,000 Bangor, ME, UTGO Bonds, 5.20%,
11/1/00............................... 103,270
60,000 Bangor, ME, UTGO Bonds, 5.50%, 9/1/24... 65,443
175,000 Bar Harbor, ME, UTGO Bonds, 6.20%,
6/1/05................................ 197,386
75,000 Bar Harbor, ME, UTGO Bonds, 6.45%,
6/1/09................................ 88,642
25,000 Bath, ME, GO Bonds, 5.625%, 3/1/09...... 27,540
30,000 Bath, ME, UTGO Bonds, 7.45%, 12/1/07.... 37,735
20,000 Bath, ME, UTGO Bonds, 7.50%, 12/1/08.... 25,578
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/03................................ 54,414
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/04................................ 55,140
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/05................................ 55,045
50,000 Brewer, ME, UTGO Bonds, Series A, 6.20%,
1/1/06................................ 55,114
50,000 Brunswick, ME, Tax Increment GO Bonds,
BTI Project, 5.50%, 11/1/08........... 55,162
</TABLE>
See Notes to Schedule of Investments. 10 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 100,000 Cape Elizabeth, ME, GO Bonds, 5.90%,
10/15/12.............................. $ 112,399
25,000 Cape Elizabeth, ME, GO Bonds, 5.90%,
10/15/14.............................. 28,100
250,000 Cape Elizabeth, ME, UTGO Bonds, 5.75%,
10/15/09.............................. 278,995
100,000 Cumberland County, ME, UTGO Bonds,
6.50%, 2/1/03, P/R USG, 2/1/01 @
102................................... 108,234
250,000 Cumberland County, ME, UTGO Bonds,
5.25%, 2/1/07......................... 267,405
25,000 Ellsworth, ME, UTGO Bonds, 7.20%,
7/1/08................................ 30,771
250,000 Freeport, ME, UTGO Bonds, 7.25%,
9/1/04................................ 293,878
20,000 Freeport, ME, UTGO Bonds, 7.25%,
9/1/10................................ 25,586
40,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.40%, 9/1/04................ 44,916
215,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.60%, 9/1/06................ 242,980
50,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/07................ 56,598
70,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/08................ 79,236
35,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/10................ 39,617
50,000 Portland, ME, GO Bonds, 12.10%,
7/1/99................................ 53,218
50,000 Portland, ME, GO Bonds, 10.50%,
11/1/99............................... 53,762
500,000 Portland, ME, GO Bonds, 6.20%, 4/1/05... 565,210
50,000 Portland, ME, GO Bonds, 12.60%,
11/1/05............................... 76,082
100,000 Portland, ME, GO Bonds, 7.25%,
12/1/05............................... 120,575
790,000 Portland, ME, GO Bonds, 5.30%,
6/13/13............................... 839,857
25,000 Portland, ME, GO Bonds, 6.50%, 4/1/14... 28,710
150,000 South Portland, ME, GO Bonds, 5.80%,
9/1/08................................ 171,592
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 40,000 South Portland, ME, GO Bonds, 5.80%,
9/1/11................................ $ 45,877
25,000 Westbrook, ME, UTGO Bonds, 6.75%,
11/15/04.............................. 28,928
75,000 Windham, ME, UTGO Bonds, 0.05%,
6/15/08............................... 50,608
130,000 Winslow, ME, GO Bonds, Crowe Rope
Industries Project, Series A, 5.50%,
3/1/07................................ 141,636
50,000 Winslow, ME, SD, UTGO Bonds, AMBAC
Insured, 7.00%, 10/1/10............... 55,689
20,000 Winslow, ME, UTGO Bonds, AMBAC insured,
6.90%, 10/1/08........................ 22,221
25,000 Winthrop, ME, UTGO Bonds, 5.10%,
8/1/04................................ 26,571
25,000 Winthrop, ME, UTGO Bonds, 5.20%,
8/1/05................................ 26,863
25,000 Winthrop, ME, UTGO Bonds, 5.30%,
8/1/06................................ 27,175
25,000 Winthrop, ME, UTGO Bonds, 5.40%,
8/1/07................................ 27,490
250,000 Yarmouth, ME, GO Bonds, AMBAC insured,
5.25%, 11/15/09....................... 273,010
35,000 York, ME, SD, UTGO Bonds, AMBAC insured,
6.40%, 3/1/03......................... 37,907
-----------
5,777,845
-----------
GENERAL OBLIGATION--STATE (2.2%)
10,000 Maine, UTGO Bonds, 9.25%, 3/15/99....... 10,269
100,000 Maine, UTGO Bonds, 8.50%, 3/1/00........ 106,745
100,000 Maine, UTGO Bonds, 7.50%, 12/15/00...... 108,182
50,000 Maine, UTGO Bonds, 8.00%, 5/1/01........ 55,286
90,000 Maine, UTGO Bonds, 6.40%, 7/1/02........ 98,399
25,000 Maine, UTGO Bonds, 7.50%, 12/15/02...... 28,617
100,000 Maine, UTGO Bonds, 6.50%, 7/1/03........ 111,794
100,000 Maine, UTGO Bonds, Highway Improvements,
8.00%, 5/1/02......................... 114,114
-----------
633,406
-----------
GENERAL OBLIGATION--TERRITORIAL (6.0%)
1,040,000 Puerto Rico, GO Bonds, MBIA insured,
6.50%, 7/1/04......................... 1,184,664
</TABLE>
See Notes to Schedule of Investments. 11 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--TERRITORIAL, CONTINUED
$ 525,000 Puerto Rico, GO Bonds, Series 93,
MBIA-IBC insured, 5.50%, 7/1/08....... $ 588,268
-----------
1,772,932
-----------
REVENUE--GUAM (8.3%)
25,000 Guam Government LO Highway RV, Series 92
A, FSA insured, 5.60%, 5/1/00......... 25,789
800,000 Guam Government LO Highway, RV, Series
A, FSA insured, 6.25%, 5/1/07......... 876,528
75,000 Guam Government Water System RV, CGIC
insured, 6.85%, 7/1/99................ 76,974
1,335,000 Guam Power Authority RV, Series A, AMBAC
insured, 6.30%, 10/1/12............... 1,472,145
-----------
2,451,436
-----------
REVENUE--HEALTH & EDUCATION (20.0%)
30,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-1,
6.80%, 12/1/07........................ 32,289
65,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-1,
7.00%, 12/1/16........................ 70,061
20,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-2,
7.15%, 12/1/16........................ 21,629
45,000 Maine Educational Loan Marketing Corp.,
Student Loan Refunding RV, 6.90%,
11/1/03............................... 47,698
25,000 Maine Educational Loan Marketing Corp.,
Student Loan Refunding RV, Series A,
6.35%, 5/1/05......................... 26,325
140,000 Maine HEHFA RV, Cedar Nursing Home, FHA
insured, 7.90%, 8/1/32, P/R USG 2/1/00
@ 102................................. 150,398
100,000 Maine HEHFA RV, Colby College Issue,
FGIC insured, 6.20%, 7/1/99........... 102,136
250,000 Maine HEHFA RV, Coves Edge Nursing Home,
10.00%, 8/1/20, P/R USG 8/1/00 @
103................................... 285,003
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 100,000 Maine HEHFA RV, FSA insured, 6.10%,
7/1/01................................ $ 105,991
10,000 Maine HEHFA RV, Kennebec Valley Medical
Center, FGIC insured, 7.00%, 7/1/05... 10,762
55,000 Maine HEHFA RV, Kennebec Valley Medical
Center, FGIC insured, 7.00% 7/1/15.... 59,193
185,000 Maine HEHFA RV, Maine Medical Center,
ETM USG, 6.00%, 10/1/13............... 210,771
100,000 Maine HEHFA RV, Maine Medical Center,
Series C, FSA insured, 5.00%,
11/15/08.............................. 104,283
50,000 Maine HEHFA RV, P/R, Series A, 6.10%,
7/1/03................................ 54,991
175,000 Maine HEHFA RV, P/R, Series A, FSA
insured, 5.50%, 7/1/07................ 189,901
415,000 Maine HEHFA RV, Saint Mary's General
Hospital, 8.50%, 7/1/09, P/R 7/1/99 @
102................................... 438,733
25,000 Maine HEHFA RV, Series A, 5.25%,
7/1/11................................ 26,897
550,000 Maine HEHFA, RV, Series A, FSA insured,
5.25%, 7/1/10......................... 590,986
100,000 Maine HEHFA RV, Series B, FSA insured,
5.875%, 7/1/06........................ 107,663
450,000 Maine HEHFA RV, Series B, FSA insured,
5.55%, 7/1/08......................... 484,601
335,000 Maine HEHFA RV, Series B, MBIA insured,
5.00%, 7/1/10......................... 351,743
155,000 Maine HEHFA RV, Series D, FSA insured,
5.20%, 7/1/06......................... 165,732
500,000 Maine HEHFA RV, Series D, FSA insured,
5.30%, 7/1/07......................... 535,555
25,000 Maine HEHFA RV, Southern Maine Medical
Center, AMBAC insured, 7.20%,
5/1/06................................ 26,785
15,000 Maine HEHFA RV, Southern Maine Medical
Center, AMBAC insured, 7.30%,
5/1/14................................ 16,056
100,000 Maine HEHFA RV, U/R Balance Series A,
6.10%, 7/1/03......................... 109,279
325,000 Maine HEHFA RV, U/R Balance, Series A,
FSA insured, 5.50%, 7/1/07............ 351,858
950,000 Maine Veterans' Homes RV, 6.80%,
10/1/05............................... 1,034,778
</TABLE>
See Notes to Schedule of Investments. 12 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 60,000 University of Maine System RV, 7.20%,
9/1/09, P/R USG, 9/1/99 @ 102......... $ 63,242
105,000 University of Maine System RV, 7.25%,
9/1/19, P/R USG, 9/1/99 @ 102......... 110,721
-----------
5,886,060
-----------
REVENUE--HOUSING (4.9%)
100,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 88 C, 8.20%, 11/15/08.......... 102,207
40,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 88 D-5, 7.45%, 11/15/11........ 43,071
200,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 88 D-6, 7.25%, 11/15/19........ 211,978
15,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 89 A-1, 7.625%, 11/15/24....... 15,511
30,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 89 A-2, 7.30%, 11/15/16........ 31,117
110,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 90 A-5, Remarketed 5/13/93,
6.20%, 11/15/16....................... 116,091
185,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 92 C, 6.55%, 11/15/12.......... 195,393
50,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 93 A-1, 5.05%, 11/15/06........ 51,895
300,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 94 A-2, 5.20%, 11/15/08........ 310,761
250,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 94 C-1, 6.20%, 11/15/07........ 266,040
30,000 Maine State HSG AUTH RV, Series 91 A,
FSA insured, 7.40%, 11/15/22.......... 31,916
50,000 Maine HSG AUTH RV, SFM Refunding RV,
Series 91-1, 6.90%, 11/1/07........... 53,142
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--HOUSING, CONTINUED
$ 25,000 Maine HSG AUTH RV, SFM Refunding RV,
Series 91-1, 7.15%, 11/1/21........... $ 26,563
-----------
1,455,685
-----------
REVENUE--INDUSTRIAL (6.4%)
15,000 Bath, ME, Sewer Improvements RV, 7.40%,
12/1/06............................... 18,519
25,000 Bucksport, ME, Solid Waste Disposal RV,
Champion International Corp. Project,
6.25%, 5/1/10, remarketed 5/1/93...... 26,537
530,000 East Millinocket, ME, PCR, Great
Northern Nekoosa Corp. Project, ETM
USG, 6.70%, 6/1/04.................... 581,330
15,000 Kennebunk, ME, Sewer District RV Bonds,
7.10%, 1/1/06......................... 17,687
165,000 Kennebec, ME, Water District RV, 7.00%,
12/1/14, P/R USG, 12/1/01 @ 101.50.... 183,798
40,000 Kennebec, ME, Water District RV, 7.00%,
12/1/20, P/R USG, 12/1/01 @ 101.50.... 44,557
500,000 Maine Finance Authority RV, Boise
Cascade Corp. Project, 7.90%,
6/1/15................................ 532,685
415,000 Regional Waste Systems, Inc., ME, RV,
Series A-C, 7.95%, 7/1/10............. 431,895
25,000 Regional Waste Systems, Inc., ME, RV,
Series D-F, 7.60%, 7/1/00............. 25,915
25,000 Wells Sanitation District, ME, Sewer RV,
6.75%, 3/1/00......................... 26,069
-----------
1,888,992
-----------
REVENUE--OTHER (0.0%)
10,000 Maine Court Facilities Authority Lease
Rental RV, 7.15%, 8/1/07, P/R USG,
8/1/00 at 102......................... 10,820
-----------
REVENUE--PUERTO RICO (16.2%)
15,000 Puerto Rico Highway & Transportation
Authority RV, Series U, 5.875%,
7/1/99................................ 15,278
20,000 Puerto Rico, Industrial, Medical &
Environmental RV, Abbott Chemicals,
Inc. Project, 6.50%, 7/1/09........... 20,184
</TABLE>
See Notes to Schedule of Investments. 13 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--PUERTO RICO, CONTINUED
$ 500,000 Puerto Rico, Industrial, Tourist,
Education, Medical & Environmental RV,
Series A, MBIA insured, 5.00%,
10/1/15............................... $ 533,760
300,000 Puerto Rico Infrastructure Financing
Authority, U/R Balance, RV, Series A,
7.60%, 7/1/00......................... 306,918
500,000 Puerto Rico, PBA, Guaranteed Public
Education & Health Facilities RV,
Series M, FSA insured, 5.70%,
7/1/09................................ 569,200
2,140,000 Puerto Rico Public Finance Corp.,
Commonwealth Appropriations RV, Series
A, 5.375%, 6/1/18..................... 2,345,697
870,000 University of Puerto Rico RV, Series N,
MBIA insured 6.25%, 6/1/04............ 978,924
-----------
4,769,961
-----------
REVENUE--TRANSPORTATION (3.4%)
180,000 Maine State Turnpike Authority RV, MBIA
insured, 6.00%, 7/1/11................ 202,729
700,000 Maine State Turnpike Authority RV, MBIA
insured, 6.00%, 7/1/14................ 788,389
-----------
991,118
-----------
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--VIRGIN ISLANDS (6.3%)
$ 785,000 Virgin Islands PFA RV, Series 89 A,
7.30%, 10/1/18, P/R USG 10/1/00 @
101................................... $ 1,022,926
40,000 Virgin Islands PFA RV, Sub Lien Fund
Loan Notes, Series D, 6.00%,
10/1/05............................... 42,254
500,000 Virgin Islands Water & Power Authority
Electric System RV, 5.25%, 7/1/06..... 527,965
250,000 Virgin Islands Water & Power Authority
Electric System RV, 5.25%, 7/1/08..... 264,855
-----------
1,858,000
-----------
Total Municipal Bonds
(cost $27,536,670) 29,122,133
-----------
SHORT-TERM HOLDINGS (1.2%)
353,969 Boston 1784 Tax Free Money Market Fund
(cost $353,969)....................... 353,969
-----------
Total Investments (100.0%)
(cost $27,890,639) $29,476,102
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 14 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPALS (100.0%)
GENERAL OBLIGATION--BOND BANK (3.8%)
$ 5,000 New Hampshire Muni Bond Bank, Pinkerton
Academy Project, AMBAC insured, 5.25%,
6/1/07................................ $ 5,337
25,000 New Hampshire Muni Bond Bank, Series 89
B, 6.70%, 7/15/04,
P/R USG 7/15/99 @ 102................. 26,143
25,000 New Hampshire Muni Bond Bank, Series 90
A, 6.90%, 1/15/05..................... 26,523
20,000 New Hampshire Muni Bond Bank, Series 90
D, 6.90%, 7/15/03..................... 21,512
25,000 New Hampshire Muni Bond Bank, Series 91
E, 6.90%, 8/15/06..................... 27,651
25,000 New Hampshire Muni Bond Bank, Series 91
K, 6.75%, 1/15/08,
P/R USG 1/15/01 @ 102................. 27,160
10,000 New Hampshire Muni Bond Bank, Series 92
D, State Guaranteed, 6.00%, 1/15/11... 11,027
50,000 New Hampshire Muni Bond Bank, Series 92
H, 6.35%, 7/15/06..................... 54,970
175,000 New Hampshire Muni Bond Bank, Series 92
H, 6.50%, 7/15/08..................... 193,308
50,000 New Hampshire Muni Bond Bank, Series 94
A, 5.15%, 11/1/08..................... 53,393
85,000 New Hampshire Muni Bond Bank, Series 94
C, State Guaranteed, 5.80%, 8/15/08... 94,000
------------
541,024
------------
GENERAL OBLIGATION--LOCAL (19.4%)
155,000 Bedford, NH, UTGO Bonds, 6.70%,
8/1/12................................ 171,554
225,000 Belknap County, NH, GO Bonds, MBIA
insured, 5.20%, 6/15/13............... 238,644
50,000 Concord, NH, GO Bonds, FGIC insured,
6.05%, 10/15/08....................... 56,067
100,000 Concord, NH, SD, GO Bonds, 4.70%,
10/15/07.............................. 105,297
100,000 Concord, NH, SD, GO Bonds, 5.00%,
10/15/10.............................. 105,923
100,000 Concord, NH, UTGO Bonds, MBIA insured,
5.00%, 1/15/09........................ 105,134
50,000 Exeter, NH, UTGO Bonds, 5.10%,
6/15/05............................... 53,494
25,000 Exeter, NH, UTGO Bonds, 5.30%,
6/15/08............................... 27,539
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 90,000 Farmington, NH, SD, GO Bonds, AMBAC
insured, 5.55%, 2/15/02............... $ 95,277
50,000 Franklin, NH, GO Bonds, MBIA insured,
5.20%, 10/1/07........................ 53,623
100,000 Goffstown, NH, GO Bonds, SD, AMBAC
insured, 5.25%, 8/15/11............... 105,810
45,000 Keene, NH, UTGO Bonds, 5.15%,
10/15/11.............................. 48,650
25,000 Lisbon, NH, Regional School District GO
Unlimited Bonds, 5.60%, 2/1/10........ 26,549
50,000 Londonderry, NH, UTGO Bonds, 5.40%,
1/15/14............................... 53,215
250,000 Manchester, NH, Public Improvement
Bonds, 5.50%, 11/1/12................. 269,917
15,000 Manchester, NH, UTGO Bonds, Series 93 A,
5.00%, 7/1/04......................... 15,909
250,000 Manchester, NH, UTGO Bonds, Series 93 A,
5.30%, 7/1/07......................... 268,010
20,000 Nashua, NH, UTGO Bonds, 5.70%,
7/15/07............................... 21,510
15,000 Nashua, NH, UTGO Bonds, 6.80%, 7/1/09... 16,515
100,000 Nashua, NH, UTGO Bonds, AMBAC insured,
5.35%, 7/15/06........................ 109,060
35,000 Nashua, NH, UTGO Bonds, FGIC insured,
5.25%, 11/1/09........................ 37,784
100,000 Nashua, NH, UTGO Public Improvement
Bonds, 6.80%, 7/1/07.................. 110,101
10,000 Nashua, NH, UTGO Public Improvement
Bonds, 6.70%, 11/1/07................. 10,549
50,000 Oyster River, NH, Cooperative SD State
Guaranteed, GO Bonds, Lot A, 5.75%,
6/15/07............................... 55,316
100,000 Oyster River, NH, Cooperative SD State
Guaranteed, GO Bonds, Lot A, 5.85%,
6/15/08............................... 110,756
30,000 Salem, NH, GO Bonds, MBIA insured,
6.45%, 3/1/04......................... 32,328
</TABLE>
See Notes to Schedule of Investments. 15 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 400,000 Stratham, NH, GO Bonds, SD, AMBAC
insured, 5.10%, 1/15/08............... $ 432,068
------------
2,736,599
------------
GENERAL OBLIGATION--STATE (2.8%)
10,000 New Hampshire State, GO Bonds, 6.00%,
9/1/05................................ 11,187
350,000 New Hampshire State Capital Improvement
GO Bonds, 5.50%, 9/1/06............... 387,702
------------
398,889
------------
GENERAL OBLIGATION--TERRITORIAL (0.9%)
110,000 Puerto Rico, GO Bonds, MBIA insured,
6.50%, 7/1/04......................... 125,301
------------
REVENUE--GUAM (3.1%)
200,000 Guam Government LO Highway, RV, Series
A, FSA insured, 6.25%, 5/1/07......... 219,132
200,000 Guam Power Authority RV, Series A, AMBAC
insured, 6.30%, 10/1/12............... 220,546
------------
439,678
------------
REVENUE--HEALTH & EDUCATION (24.0%)
25,000 Hudson, NH, Educational Facilities RV,
SD, Lot B, 7.30%, 12/15/06............ 30,701
20,000 Hudson, NH, Educational Facilities RV,
SD, Lot B, 7.30%, 12/15/08............ 25,253
15,000 Mascenic, NH, Regional SD #1, Lot C,
AMBAC insured, 7.20%, 12/15/07........ 18,654
50,000 New Hampshire, HEFA RV (Concord Hospital
Issue), AMBAC insured, 5.40%,
10/1/06............................... 54,700
1,000,000 New Hampshire, HEFA RV (Kendal at
Hanover Issue), 5.80%, 10/1/12........ 1,036,730
160,000 New Hampshire, HEHFA RV, 6.00%,
10/1/13............................... 178,282
90,000 New Hampshire, HEHFA RV, 6.00%,
10/1/13............................... 93,380
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 35,000 New Hampshire, HEHFA RV (Elliot Hospital
of Manchester), 6.50%, 10/1/11........ $ 37,924
460,000 New Hampshire, HEHFA RV (Elliot Hospital
of Manchester), 6.25%, 10/1/21........ 496,565
100,000 New Hampshire, HEHFA RV (Exeter
Hospital), 5.25%, 10/1/00............. 102,682
50,000 New Hampshire, HEHFA RV (Exeter
Hospital/Healthcare Issue), 6.00%,
10/1/13............................... 53,872
165,000 New Hampshire, HEHFA RV (Franklin Pierce
College), Series 94, 5.50%, 10/1/04... 178,595
90,000 New Hampshire, HEHFA RV (Franklin Pierce
College), Series 94, 5.50%, 10/1/04... 93,371
5,000 New Hampshire, HEHFA RV (Hitchcock
Clinic Issue), MBIA insured, 6.00%,
7/1/15................................ 5,420
45,000 New Hampshire, HEHFA RV (Lakes Region
Hospital Association), 5.75%,
1/1/11................................ 48,413
15,000 New Hampshire, HEHFA RV (Mary Hitchcock
Memorial Hospital), FGIC insured,
4.90%, 8/15/01........................ 15,443
50,000 New Hampshire, HEHFA RV (Nashua Memorial
Hospital), 5.50%, 10/1/02............. 52,550
400,000 New Hampshire, HEHFA RV, (River Woods at
Exeter), 1st Mortgage, 9.00%,
3/1/23................................ 493,740
125,000 New Hampshire, HEHFA RV (Rivier
College), 6.90%, 1/1/13............... 141,408
30,000 New Hampshire, HEHFA RV (University
System of New Hampshire), MBIA
insured, Series 92, 6.00%, 7/1/07..... 32,653
175,000 New Hampshire, HEHFA RV
(Wentworth-Douglass Hospital), 5.40%,
1/1/07................................ 187,394
------------
3,377,730
------------
</TABLE>
See Notes to Schedule of Investments. 16 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
REVENUE--HOUSING (8.2%)
$ 500,000 New Hampshire, HSG AUTH RV, MFHR,
FHA/VA/RECD MTGS LOC, 5.60%, due
7/1/03................................ $ 527,780
125,000 New Hampshire, HSG AUTH RV, Series SB,
4.85%, 1/1/05......................... 128,443
90,000 New Hampshire, HSG AUTH RV, Series SB,
4.95%, 1/1/06......................... 92,633
15,000 New Hampshire, HSG AUTH RV, SFM, 6.75%,
7/1/04................................ 15,763
95,000 New Hampshire, HSG AUTH RV, SFM, Series
A, 5.25%, 1/1/07...................... 98,177
95,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 5.90%, 1/1/07...................... 99,765
95,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 6.00%, 1/1/08...................... 99,275
95,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 6.00%, 7/1/08...................... 99,452
------------
1,161,288
------------
REVENUE--INDUSTRIAL (1.2%)
140,000 Exeter, NH, UTGO Bonds, Sewer
Improvements, 6.25%, 1/15/07.......... 151,665
10,000 New Hampshire State, IDA Solid Waste
Disposal RV, Canal Electric Co.
Project, FGIC insured, 7.375%,
12/1/20............................... 10,865
------------
162,530
------------
REVENUE--OTHER (1.4%)
200,000 New Hampshire, HEHFA RV, Municipal
Demand Notes, FGIC insured, 3.55% V/R,
7/1/21................................ 200,000
------------
REVENUE--PUERTO RICO (8.0%)
50,000 Commonwealth of Puerto Rico Highway &
Transportation Authority RV, Series U,
5.875%, 7/1/99........................ 50,926
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
REVENUE--PUERTO RICO, CONTINUED
$ 25,000 Puerto Rico Infrastructure Financing
Authority, U/R Balance, RV, Series A,
7.75%, 7/1/08......................... $ 25,580
775,000 Puerto Rico, PBA, Guaranteed Public
Education and Health Facilities RV,
Series M, FSA insured, 5.70%,
7/1/09................................ 882,260
145,000 University of Puerto Rico RV, Series N,
MBIA insured, 6.25%, 6/1/04........... 163,154
------------
1,121,920
------------
REVENUE--TRANSPORTATION (14.6%)
550,000 New Hampshire State Turnpike System RV,
Series A, FGIC insured, 7.00%,
11/1/06............................... 662,381
1,175,000 New Hampshire State Turnpike System RV,
Series A, FGIC insured, 6.75%,
11/1/11............................... 1,391,352
------------
2,053,733
------------
REVENUE--VIRGIN ISLANDS (12.6%)
325,000 Virgin Islands PFA RV, ETM USG, Series
89 A, 7.30%, 10/1/18.................. 423,504
1,170,000 Virgin Islands PFA RV, Sub Lien Fund
Loan Notes, Series D, 6.00%,
10/1/05............................... 1,235,941
115,000 Virgin Islands Water & Power Authority
Electric System RV, 5.25%, 7/1/06..... 121,432
------------
1,780,877
------------
Total Investments (100.0%)
(cost $13,482,401) $14,099,569
------------
------------
</TABLE>
See Notes to Schedule of Investments. 17 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (93.7%)
AMUSEMENT & RECREATION SERVICES (1.3%)
15,000 Walt Disney Co.......................... $ 379,687
-----------
BUSINESS SERVICES (10.1%)
4,000 Automatic Data Processing, Inc.......... 299,000
6,000 Computer Sciences Corp.(c).............. 327,000
15,000 Fiserv, Inc.(c)......................... 690,937
30,000 Ogden Corp.............................. 853,125
30,000 Oracle Corp.(c)......................... 873,750
-----------
3,043,812
-----------
CHEMICALS & ALLIED PRODUCTS (13.9%)
16,000 Abbott Laboratories..................... 695,000
16,000 Air Products & Chemicals, Inc........... 476,000
7,000 E.I. du Pont de Nemours & Co............ 392,875
10,000 Elan Corp. plc ADR(c)................... 720,625
8,000 Johnson & Johnson....................... 626,000
6,900 Merck & Co., Inc........................ 893,982
25,000 RPM, Inc................................ 360,938
-----------
4,165,420
-----------
COMMUNICATIONS (5.0%)
6,000 AT&T Corp............................... 350,625
12,000 Airtouch Communications, Inc.(c)........ 684,000
10,200 SBC Communications, Inc................. 453,262
-----------
1,487,887
-----------
DEPOSITORY INSTITUTIONS (8.0%)
9,136 BankAmerica Corp........................ 488,776
6,030 Fifth Third Bancorp..................... 346,725
20,000 First Indiana Corp...................... 420,000
18,000 Norwest Corp............................ 644,625
20,000 Washington Federal, Inc................. 500,000
-----------
2,400,126
-----------
EATING & DRINKING PLACES (3.9%)
30,000 Tricon Global Restaurants, Inc.(c)...... 1,170,000
-----------
ELECTRIC, GAS & SANITARY SERVICES (2.6%)
20,000 Republic Industries, Inc.(c)............ 291,250
15,000 SIGCORP, Inc............................ 484,687
-----------
775,937
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (8.5%)
10,200 Emerson Electric Co..................... 634,950
20,000 General Electric Co..................... 1,591,250
10,000 Northern Telecom, Ltd................... 320,000
-----------
2,546,200
-----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(1.5%)
12,000 Gillette Co............................. $ 459,000
-----------
FOOD & KINDRED PRODUCTS (1.1%)
11,000 PepsiCo, Inc............................ 323,813
-----------
GENERAL MERCHANDISE STORES (1.5%)
10,000 Sears, Roebuck & Co..................... 441,875
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.6%)
10,000 Compaq Computer Corp.................... 316,250
6,000 IBM Corp................................ 768,000
-----------
1,084,250
-----------
INSURANCE CARRIERS (5.4%)
10,125 American International Group, Inc....... 779,625
1,500 General Re Corp......................... 304,500
14,000 ReliaStar Financial Corp................ 546,000
-----------
1,630,125
-----------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (1.7%)
6,000 Xerox Corp.............................. 508,500
-----------
MISCELLANEOUS RETAIL (2.9%)
20,000 Barnes & Noble, Inc.(c)................. 540,000
20,000 Toys "R" Us, Inc.(c).................... 323,750
-----------
863,750
-----------
NONDEPOSITORY CREDIT INSTITUTIONS (2.1%)
10,000 FNMA.................................... 642,500
-----------
OIL & GAS EXTRACTION (1.5%)
9,000 Schlumberger, Ltd....................... 452,814
-----------
PAPER & ALLIED PRODUCTS (0.7%)
3,000 Minnesota Mining & Manufacturing Co..... 221,062
-----------
PETROLEUM REFINING & RELATED INDUSTRIES (5.8%)
4,000 Amoco Corp.............................. 215,500
10,000 Exxon Corp.............................. 701,875
6,000 Mobil Corp.............................. 455,625
8,000 Royal Dutch Petroleum Co................ 381,000
-----------
1,754,000
-----------
PHARMACEUTICAL PREPARATIONS (2.4%)
14,000 American Home Products Corp............. 733,250
-----------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS (1.7%)
14,000 Nike, Inc. Class B...................... 515,375
-----------
</TABLE>
See Notes to Schedule of Investments. 18 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS GROWTH FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
TOBACCO (3.1%)
20,000 Philip Morris Cos., Inc................. $ 921,250
-----------
TRANSPORTATION EQUIPMENT (5.4%)
13,000 Boeing Co............................... 446,062
15,000 Chrysler Corp........................... 718,125
6,000 United Technologies Corp................ 458,625
-----------
1,622,812
-----------
Total Common Stock
(cost $15,075,312) 28,143,445
-----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
SHORT-TERM HOLDINGS (6.3%)
350,235 Boston 1784 Institutional US Treasury
Money Market Fund..................... $ 350,235
1,538,511 Dreyfus Government Cash Management
Fund.................................. 1,538,511
-----------
Total Short-Term Holdings
(cost $1,888,746) 1,888,746
-----------
Total Investments (100.0%)
(cost $16,964,058) $30,032,191
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 19 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES/ FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (71.7%)
AUTOMOTIVE REPAIR, SERVICES & PARKING (2.5%)
20,000 Ryder System, Inc....................... $ 497,500
-----------
COMMUNICATIONS (6.5%)
7,900 AT&T Corp............................... 461,656
5,150 BellSouth Corp.......................... 387,538
10,230 Telefonos de Mexico SA ADR.............. 452,678
-----------
1,301,872
-----------
DEPOSITORY INSTITUTIONS (2.0%)
9,250 Chase Manhattan Corp.................... 400,063
-----------
EATING & DRINKING PLACES (1.5%)
11,000 Outback Steakhouse, Inc.(c)............. 290,125
-----------
ELECTRIC, GAS & SANITARY SERVICES (10.3%)
14,000 Coastal Corp............................ 472,500
14,800 DTE Energy Co........................... 668,775
12,600 Pacific Gas & Electric Co............... 402,413
13,270 Public Service Enterprise Group, Inc.... 521,676
-----------
2,065,364
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (4.2%)
13,190 Harris Corp............................. 422,080
12,470 ITT Industries, Inc..................... 422,422
-----------
844,502
-----------
GENERAL MERCHANDISE STORES (1.1%)
12,200 TJX Cos., Inc........................... 217,312
-----------
HEALTH SERVICES (3.0%)
37,040 Beverly Enterprises, Inc.(c)............ 296,320
10,350 Tenet Healthcare Corp.(c)............... 297,561
-----------
593,881
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT (4.7%)
13,560 Dover Corp.............................. 418,665
18,700 Quantum Corp.(c)........................ 296,862
14,450 Timken Co............................... 218,556
-----------
934,083
-----------
INSURANCE CARRIERS (6.9%)
9,000 Allstate Corp........................... 375,187
20,450 Conseco, Inc............................ 625,003
9,899 Travelers Group, Inc.(c)................ 371,212
-----------
1,371,402
-----------
<CAPTION>
SECURITY
SHARES/ FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (4.3%)
11,200 Litton Industries, Inc.(c).............. $ 672,000
12,750 Tektronix, Inc.......................... 197,625
-----------
869,625
-----------
OIL & GAS EXTRACTION (3.1%)
30,225 ENSCO International, Inc................ 326,807
6,000 Schlumberger, Ltd....................... 301,875
-----------
628,682
-----------
PETROLEUM REFINING & RELATED INDUSTRIES (1.2%)
8,400 Cooper Cameron Corp.(c)................. 236,250
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (0.9%)
3,800 Merrill Lynch & Co., Inc................ 180,025
-----------
TOBACCO PRODUCTS (3.6%)
15,800 Philip Morris Cos., Inc................. 727,788
-----------
TRANSPORTATION (4.1%)
7,150 AMR Corp.(c)............................ 396,378
9,800 Canadian National Railway Co............ 437,326
-----------
833,704
-----------
TRANSPORTATION EQUIPMENT (8.8%)
10,500 Chrysler Corp........................... 502,688
12,250 Dana Corp............................... 457,079
12,400 Fleetwood Enterprises, Inc.............. 374,325
5,500 United Technologies Corp................ 420,407
-----------
1,754,499
-----------
WHOLESALE TRADE-NONDURABLE GOODS (3.0%)
25,980 Supervalu, Inc.......................... 605,658
-----------
Total Common Stock
(cost $15,496,705) 14,352,335
-----------
CORPORATE BONDS & NOTES (10.2%)
150,000 Bear Stearns Cos., Inc., 6.625%,
1/15/04............................... 155,050
200,000 Chase Manhattan Corp., 6.25%, 1/15/06... 204,775
150,000 Crown, Cork, & Seal, 6.75%, 12/15/03.... 158,565
100,000 Crown, Cork, & Seal, 6.75%, 12/15/03.... 105,710
190,000 GMAC, 5.90%, 1/17/00.................... 191,001
100,000 Household Finance Corp., 7.625%,
6/15/99............................... 101,316
</TABLE>
See Notes to Schedule of Investments. 20 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES/ FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS & NOTES, CONTINUED
$ 20,000 IBM Credit Corp., 5.55%, 11/5/98........ $ 19,998
400,000 Korea Development Bank Global Bond,
7.25%, 5/15/06........................ 305,328
200,000 Lockheed Martin Corp., 6.85%, 5/15/01... 208,852
65,000 PepsiCo, Inc., 6.25%, 9/1/99............ 65,680
200,000 Sears Roebuck Acceptance Corp., 6.75%,
9/15/05............................... 212,105
100,000 Wachovia Corp., 7.00%, 12/15/99......... 101,892
100,000 WMX Technologies, Inc., 8.25%,
11/15/99.............................. 103,341
100,000 WMX Technologies, Inc., 6.70%, 5/1/01... 103,229
-----------
Total Corporate Bonds & Notes
(cost $2,057,408) 2,036,842
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.1%)
FHLMC (2.0%)
200,000 Series 1491 GB, 6.90%, 11/15/21......... 205,478
200,000 Series 1678 C, 6.00%, 8/15/08........... 203,840
-----------
409,318
-----------
FNMA (2.1%)
400,000 Series 1992-184 C, 7.00%, 10/25/21...... 413,760
-----------
Total Collateralized Mortgage Obligations
(cost $798,125) 823,078
-----------
<CAPTION>
SECURITY
SHARES/ FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MORTGAGE BACKED SECURITIES (0.7%)
GNMA (0.7%)
$ 134,529 Pool 394795, 7.50%, 10/15/10 (cost
$138,228)............................. $ 139,582
-----------
U.S. TREASURY OBLIGATIONS (12.7%)
U.S. TREASURY BONDS (3.6%)
650,000 6.00%, 2/15/26.......................... 727,594
-----------
U.S. TREASURY NOTES (9.1%)
300,000 6.375%, 1/15/99......................... 301,687
125,000 9.125%, 5/15/99......................... 128,398
275,000 6.75%, 6/30/99.......................... 279,298
400,000 6.125%, 7/31/00......................... 412,000
350,000 6.25%, 8/31/02.......................... 373,297
275,000 7.25%, 5/15/04.......................... 314,102
-----------
Total U.S. Treasury Notes 1,808,782
-----------
Total U.S. Treasury Obligations
(cost $2,396,812) 2,536,376
-----------
SHORT-TERM HOLDINGS (0.6%)
117,482 Dreyfus Government Cash Management Fund
(cost $117,482)....................... 117,482
-----------
Total Investments (100.0%)
(cost $21,004,760) $20,005,695
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 21 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON VALUE FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (97.4%)
CHEMICALS & ALLIED PRODUCTS (10.5%)
6,000 Bristol-Myers Squibb Co................. $ 623,250
3,000 Dow Chemical Co......................... 256,313
5,000 Eastman Chemical Co..................... 252,187
6,000 Schering-Plough Corp.................... 621,375
-----------
1,753,125
-----------
COMMUNICATIONS (12.0%)
10,000 AT&T Corp............................... 584,375
8,000 GTE Corp................................ 440,000
14,000 MediaOne Group, Inc..................... 622,126
8,000 Telefonos de Mexico SA ADR.............. 354,000
-----------
2,000,501
-----------
DEPOSITORY INSTITUTIONS (6.4%)
10,000 BankBoston Corp......................... 330,000
5,000 JSB Financial, Inc...................... 256,562
1,333 Wells Fargo & Co........................ 473,215
-----------
1,059,777
-----------
ELECTRIC, GAS & SANITARY SERVICES (1.5%)
5,000 New Century Energies, Inc............... 243,438
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (10.8%)
10,000 Harris Corp............................. 320,000
6,000 Intel Corp.............................. 514,500
16,000 ITT Industries, Inc..................... 542,000
8,000 Texas Instruments, Inc.................. 422,000
-----------
1,798,500
-----------
FOOD STORES (3.1%)
30,000 Ruddick Corp............................ 510,000
-----------
GENERAL MERCHANDISE STORES (1.7%)
16,000 TJX Cos., Inc........................... 285,000
-----------
HEALTH SERVICES (3.7%)
30,000 Beverly Enterprises, Inc.(c)............ 240,000
13,000 Tenet Healthcare Corp.(c)............... 373,750
-----------
613,750
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (6.2%)
15,000 Compaq Computer Corp.................... 474,375
9,000 Cooper Cameron Corp.(c)................. 253,125
20,000 Timken Co............................... 302,500
-----------
1,030,000
-----------
INSURANCE CARRIERS (5.0%)
10,000 American Bankers Insurance.............. 425,000
10,999 Travelers Group, Inc.(c)................ 412,462
-----------
837,462
-----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (2.9%)
8,000 Litton Industries, Inc.(c).............. $ 480,000
-----------
MISCELLANEOUS RETAIL (1.2%)
12,000 Toys "R" Us, Inc.(c).................... 194,250
-----------
OIL & GAS EXTRACTION (3.1%)
5,000 Atlantic Richfield Co................... 354,687
15,000 ENSCO International, Inc................ 162,187
-----------
516,874
-----------
PAPER & ALLIED PRODUCTS (2.9%)
17,000 Willamette Industries, Inc.............. 487,688
-----------
PETROLEUM REFINING & RELATED INDUSTRIES (5.7%)
6,000 Mobil Corp.............................. 455,625
1,000 Phillips Petroleum Co................... 496,375
-----------
952,000
-----------
PRINTING & PUBLISHING (1.6%)
10,000 Banta Corp.............................. 272,500
-----------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (2.6%)
12,000 Nike, Inc. Class B...................... 441,751
-----------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (3.3%)
9,000 Edwards (A.G.), Inc..................... 272,812
6,000 Merrill Lynch & Co., Inc................ 284,250
-----------
557,062
-----------
TOBACCO PRODUCTS (3.3%)
12,000 Philip Morris Cos., Inc................. 552,750
-----------
TRANSPORTATION EQUIPMENT (4.8%)
12,000 Dana Corp............................... 447,750
11,000 Trinity Industries, Inc................. 356,812
-----------
804,562
-----------
WHOLESALE TRADE-NONDURABLE GOODS (5.1%)
16,000 Supervalu, Inc.......................... 373,000
20,000 Sysco Corp.............................. 471,250
-----------
844,250
-----------
Total Common Stock
(cost $13,767,501) 16,235,240
-----------
SHORT-TERM HOLDINGS (2.6%)
439,813 Dreyfus Government Cash Management Fund
(cost $439,813)....................... 439,813
-----------
Total Investments (100.0%)
(cost $14,207,314) $16,675,053
-----------
-----------
</TABLE>
See Notes to Schedule of Investments. 22 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(a) Certain rate securities are deemed to have a maturity remaining until the
next readjustment of the interest rate, the demand period or a combination
of the longer of the demand period or readjustment. The interest rates shown
reflect the rate in effect on September 30, 1998.
(b) Securities that may be resold to "qualified institutional buyers" under the
rule 144A or securities offered pursuant to 4(2) of the Securities Act of
1933, as amended.
(c) Non-income producing securities.
<TABLE>
<S> <C>
ACA American Capital Assets
ADR American Depository Receipts
AMBAC American Municipal Bond Assurance Corporation
CGIC Capital Guaranty Insurance Company
COLL Collateralized
CP Commercial Paper
EDA Economic Development Authority
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
HSG AUTH State Housing Authority
IBC Insured Bond Certification
IDA Industrial Development Authority
LO Limited Obligation
LOC Letter of Credit
LTGO Limited Tax General Obligation
MBIA Municipal Bond Insurance Association
MFHR Multi-Family Housing Revenue
MTGS Mortgages
Muni Municipal
NBD National Bank Detroit
P/R Prerefunded
PBA Public Building Authority
PCR Pollution Control Revenue
PFA Public Finance Authority
RECD Royal Economic & Community Development
RV Revenue Bonds
RTC Resolution Trust Company
SD School District
SFM Single Family Mortgage
VA Veterans Administration
V/R Variable Rate
U/R Unrefunded
USG U.S. Government
UTGO Unlimited Tax General Obligation
</TABLE>
See Notes to Financial Statements. 23 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE
INVESTORS INVESTORS TAXSAVER MUNICIPAL
HIGH GRADE BOND BOND BOND
BOND FUND FUND FUND FUND
------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1 and 2):
Investments at cost.......... $ 34,180,416 $81,338,144 $38,273,559 $27,890,639
Net unrealized appreciation
(depreciation).............. 1,394,559 2,697,310 1,700,293 1,585,463
------------- ----------- ----------- -----------
Total investments at
value..................... 35,574,975 84,035,454 39,973,852 29,476,102
Cash........................... -- -- -- --
Interest, dividends and other
receivables................... 279,641 1,279,328 757,537 559,731
Receivable for securities
sold.......................... -- -- -- --
Receivable for fund shares
sold.......................... 2,794 389 450,000 10,254
Organization costs, net of
amortization (Note 2)......... 4,603 -- -- --
------------- ----------- ----------- -----------
Total assets....................... 35,862,013 85,315,171 41,181,389 30,046,087
------------- ----------- ----------- -----------
LIABILITIES:
Dividends payable.............. 167,027 395,362 107,311 27,778
Payable for securities
purchased..................... -- -- -- --
Payable to advisor (Note 3).... 11,640 27,702 13,216 9,704
Payable to administrator (Note
3)............................ 19 40,971 -- --
Payable for fund shares
redeemed...................... 14,937 24,500 -- 50
Accrued expenses and other
liabilities................... 44,599 69,180 6,600 4,846
------------- ----------- ----------- -----------
Total liabilities.................. 238,222 557,715 127,127 42,378
------------- ----------- ----------- -----------
NET ASSETS......................... $ 35,623,791 $84,757,456 $41,054,262 $30,003,709
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
COMPONENTS OF NET ASSETS:
Paid in capital................ $ 33,892,509 $81,569,155 $38,686,544 $28,287,628
Undistributed (distribution in
excess of) net investment
income........................ -- (4,904) 8,267 --
Unrealized appreciation
(depreciation) on
investments................... 1,394,559 2,697,310 1,700,293 1,585,463
Accumulated net realized gain
(loss)........................ 336,723 495,895 659,158 130,618
------------- ----------- ----------- -----------
NET ASSETS......................... $ 35,623,791 $84,757,456 $41,054,262 $30,003,709
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
SHARES OF BENEFICIAL INTEREST...... 3,451,694 7,881,551 3,747,863 2,668,057
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
NET ASSET VALUE, AND REDEMPTION
PRICE PER SHARE................... $ 10.32 $ 10.75 $ 10.95 $ 11.25
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
OFFERING PRICE PER SHARE (NAV
DIVIDED BY (1-MAXIMUM SALES
LOAD)............................. $ 10.72 $ 11.17 $ 11.38 $ 11.54
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
MAXIMUM SALES LOAD................. 3.75% 3.75% 3.75% 2.50%
------------- ----------- ----------- -----------
------------- ----------- ----------- -----------
</TABLE>
See Notes to Financial Statements. 24 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998 (unaudited) (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW HAMPSHIRE INVESTORS PAYSON PAYSON
BOND GROWTH BALANCED VALUE
FUND FUND FUND FUND
-------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1 and 2):
Investments at cost.......... $ 13,482,401 $16,964,058 $21,004,760 $14,207,314
Net unrealized appreciation
(depreciation).............. 617,168 13,068,133 (999,065) 2,467,739
-------------- ----------- ----------- -----------
Total investments at
value..................... 14,099,569 30,032,191 20,005,695 16,675,053
Cash........................... 25,072 -- -- --
Interest, dividends and other
receivables................... 261,370 57,717 115,748 35,943
Receivable for securities
sold.......................... -- -- -- --
Receivable for fund shares
sold.......................... 3,078 30,000 923 16,439
Organization costs, net of
amortization (Note 2)......... -- 12,815 -- --
-------------- ----------- ----------- -----------
Total assets....................... 14,389,089 30,132,723 20,122,366 16,727,435
-------------- ----------- ----------- -----------
LIABILITIES:
Dividends payable.............. 2,529 61,924 53,054 13,858
Payable for securities
purchased..................... -- -- -- --
Payable to advisor (Note 3).... 4,695 16,104 6,132 7,212
Payable to administrator (Note
3)............................ -- 11,809 22,860 19,112
Payable for fund shares
redeemed...................... 43,575 -- 2,600 --
Accrued expenses and other
liabilities................... 2,344 21,045 18,752 24,191
-------------- ----------- ----------- -----------
Total liabilities.................. 53,143 110,882 103,398 64,373
-------------- ----------- ----------- -----------
NET ASSETS......................... $ 14,335,946 $30,021,841 $20,018,968 $16,663,062
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
COMPONENTS OF NET ASSETS:
Paid in capital................ $ 13,639,540 $16,367,977 $19,976,511 $12,912,165
Undistributed (distribution in
excess of) net investment
income........................ 489 (11) (2,990) (15,727)
Unrealized appreciation
(depreciation) on
investments................... 617,168 13,068,133 (999,065) 2,467,739
Accumulated net realized gain
(loss)........................ 78,749 585,742 1,044,512 1,298,885
-------------- ----------- ----------- -----------
NET ASSETS......................... $ 14,335,946 $30,021,841 $20,018,968 $16,663,062
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
SHARES OF BENEFICIAL INTEREST...... 1,308,033 2,967,225 1,658,065 952,608
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
NET ASSET VALUE, AND REDEMPTION
PRICE PER SHARE................... $ 10.96 $ 10.12 $ 12.07 $ 17.49
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
OFFERING PRICE PER SHARE (NAV
DIVIDED BY (1-MAXIMUM SALES
LOAD)............................. $ 11.24 $ 10.54 $ 12.57 $ 18.22
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
MAXIMUM SALES LOAD................. 2.50% 4.00% 4.00% 4.00%
-------------- ----------- ----------- -----------
-------------- ----------- ----------- -----------
</TABLE>
See Notes to Financial Statements. 25 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTORS MAINE
HIGH GRADE INVESTORS TAXSAVER MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income...... $1,110,751 $2,759,322 $1,000,358 $ 734,136
Dividend income...... -- 127,563 -- --
----------- ----------- ----------- -----------
Total investment
income.................. 1,110,751 2,886,885 1,000,358 734,136
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory
(Note 3)............ 69,545 169,758 78,155 57,834
Management (Note
3).................. 34,772 84,879 39,078 28,917
Transfer agency (Note
3).................. 49,485 112,633 55,212 45,650
Custody.............. 4,530 11,083 5,317 3,751
Accounting (Note
3).................. 20,000 22,000 20,000 24,000
Audit................ 6,679 8,752 7,830 7,600
Legal................ 4,664 13,700 5,016 10,104
Trustees............. 1,527 3,762 1,712 1,270
Reporting............ 4,947 11,772 5,616 5,808
Amortization of
organization costs
(Note 2)............ 515 -- -- --
Miscellaneous........ 3,218 8,224 7,604 12,124
----------- ----------- ----------- -----------
Total expenses........... 199,882 446,563 225,540 197,058
Expenses reimbursed and
fees waived (Note 4).... (78,218) (149,540) (108,340) (110,329)
----------- ----------- ----------- -----------
Net expenses............. 121,664 297,023 117,200 86,729
----------- ----------- ----------- -----------
NET INVESTMENT INCOME
(LOSS).................. 989,087 2,589,862 883,158 647,407
----------- ----------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain
(loss) on
investments sold.... 336,723 223,866 242,960 100,897
Net change in
unrealized
appreciation
(depreciation) on
investments......... 898,972 1,225,028 499,544 421,564
----------- ----------- ----------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS.......... 1,235,695 1,448,894 742,504 522,461
----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS......... $2,224,782 $4,038,756 $1,625,662 $1,169,868
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See Notes to Financial Statements. 26 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 1998 (unaudited) (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW HAMPSHIRE INVESTORS PAYSON PAYSON VALUE
BOND FUND GROWTH FUND BALANCED FUND FUND
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........... $ 334,861 $ 60,696 $ 246,905 $ 14,275
Dividend income........... -- 238,231 155,390 160,699
------------- ------------- ------------- -------------
Total investment income....... 334,861 298,927 402,295 174,974
------------- ------------- ------------- -------------
EXPENSES:
Investment advisory (Note
3)....................... 27,145 107,774 68,580 76,449
Management (Note 3)....... 13,572 33,161 22,860 19,112
Transfer agency (Note
3)....................... 23,642 47,483 38,079 33,169
Custody................... 1,639 4,670 3,552 3,254
Accounting (Note 3)....... 19,000 18,000 18,000 18,000
Audit..................... 7,139 7,370 6,449 6,449
Legal..................... 3,502 15,198 3,759 3,147
Trustees.................. 583 1,517 1,060 883
Reporting................. 3,023 5,549 3,704 3,080
Amortization of
organization costs (Note
2)....................... -- 1,518 -- --
Miscellaneous............. 7,181 2,911 6,738 4,825
------------- ------------- ------------- -------------
Total expenses................ 106,426 245,151 172,781 168,368
Expenses reimbursed and fees
waived (Note 4)............. (65,721) (62,682) (41,177) (29,649)
------------- ------------- ------------- -------------
Net expenses.................. 40,705 182,469 131,604 138,719
------------- ------------- ------------- -------------
NET INVESTMENT INCOME
(LOSS)...................... 294,156 116,458 270,691 36,255
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss)
on investments sold...... 66,662 585,742 (342,064) 354,428
Net change in unrealized
appreciation
(depreciation) on
investments.............. 228,220 (4,239,055) (4,197,174) (4,322,888)
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS................. 294,882 (3,653,313) (4,539,238) (3,968,460)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS.................. $ 589,038 $(3,536,855) $ (4,268,547) $ (3,932,205)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
See Notes to Financial Statements. 27 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1998 AND
THE PERIOD ENDED SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTORS HIGH GRADE BOND INVESTORS BOND FUND TAXSAVER BOND FUND
FUND
---------------------------- ---------------------------- ----------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------------- ----------- -------------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS--MARCH 31,
1997................... $ -- $ 22,190,244 $ 17,757,007
- ------------------------- -------------- -------------- --------------
OPERATIONS:
Net investment income
(loss)................ 83,022 2,799,300 1,262,855
Net realized gain
(loss) on investments
sold.................. -- 407,860 431,531
Net change in
unrealized
appreciation
(depreciation) on
investments (Note
7).................... (120,183) 619,147 12,927
-------------- -------------- --------------
Net increase in net
assets resulting
from operations..... (37,161) 3,826,307 1,707,313
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (83,022) (2,799,300) (1,254,588)
Net realized gain on
investments........... -- -- (10,731)
-------------- -------------- --------------
Total distributions
to shareholders..... (83,022) (2,799,300) (1,265,319)
-------------- -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares......... 142,651 14,291 25,408,790 2,422,519 5,953,473 558,559
Transactions due to
acquisition (Note
7).................... 34,168,816 3,416,882 45,203,440 4,284,687 19,211,589 1,780,499
Reinvestment of
distributions......... -- -- 243,656 23,408 351,873 32,851
Redemption of shares... (154,387) (15,443) (8,475,106) (811,636) (4,512,629) (419,873)
-------------- ----------- -------------- ----------- -------------- -----------
Net increase
(decrease) in
capital
transactions........ 34,157,080 3,415,730 62,380,780 5,918,978 21,004,306 1,952,036
-------------- ----------- -------------- ----------- -------------- -----------
----------- ----------- -----------
Net increase (decrease)
in net assets......... 34,036,897 63,407,787 21,446,300
-------------- -------------- --------------
NET ASSETS--MARCH 31,
1998
- -------------------------
(Including line (A))... 34,036,897 85,598,031 39,203,307
-------------- -------------- --------------
OPERATIONS:
Net investment income
(loss)................ 989,087 2,589,862 883,158
Net realized gain
(loss) on investments
sold.................. 336,723 223,866 242,960
Net change in
unrealized
appreciation
(depreciation) on
investments........... 898,972 1,225,028 499,544
-------------- -------------- --------------
Net increase
(decrease) in net
assets resulting
from operations..... 2,224,782 4,038,756 1,625,662
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (989,087) (2,589,862) (883,158)
Net realized gain on
investments........... -- -- --
-------------- -------------- --------------
Total distributions
to shareholders..... (989,087) (2,589,862) (883,158)
-------------- -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares......... 1,753,261 175,089 6,547,822 617,424 5,039,155 467,344
Reinvestment of
distributions......... 620 61 319,990 30,114 193,544 17,911
Redemption of shares... (1,402,682) (139,186) (9,157,281) (863,604) (4,124,248) (382,625)
-------------- ----------- -------------- ----------- -------------- -----------
Net increase
(decrease) in
capital
transactions........ 351,199 35,964 (2,289,469) (216,066) 1,108,451 102,630
-------------- ----------- -------------- ----------- -------------- -----------
----------- ----------- -----------
Net increase (decrease)
in net assets......... 1,586,894 (840,575) 1,850,955
-------------- -------------- --------------
NET ASSETS--SEPTEMBER 30,
1998
- -------------------------
(Including line (B))... $ 35,623,791 $ 84,757,456 $ 41,054,262
-------------- -------------- --------------
-------------- -------------- --------------
(A) Accumulated
undistributed
(distribution in
excess of) net
investment income,
March 31, 1998....... $ -- $ (4,904) $ 8,267
-------------- -------------- --------------
-------------- -------------- --------------
(B) Accumulated
undistributed
(distribution in
excess of) net
investment income,
September 30,
1998................. $ -- $ (4,904) $ 8,267
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
See Notes to Financial Statements. 28 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1998 AND
THE PERIOD ENDED SEPTEMBER 30, 1998 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE MUNICIPAL BOND FUND NEW HAMPSHIRE BOND FUND INVESTORS GROWTH FUND
-------------------------- -------------------------- ---------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------------- --------- -------------- --------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1997 $ 25,827,495 $ 8,690,680 $ --
- -------------------------- -------------- -------------- --------------
OPERATIONS:
Net investment income
(loss)................. 1,249,323 486,791 87,832
Net realized gain (loss)
on investments sold.... 85,991 28,990 --
Net change in unrealized
appreciation
(depreciation) on
investments (Note 7)... 692,888 381,519 3,816,203
-------------- -------------- --------------
Net increase in net
assets resulting from
operations........... 2,028,202 897,300 3,904,035
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income... (1,249,323) (486,791) --
Net realized gain on
investments............ (15,537) (3,158) --
-------------- -------------- --------------
Total distributions to
shareholders......... (1,264,860) (489,949) --
-------------- -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares.......... 4,686,863 427,434 4,626,698 440,871 4,277,148 410,190
Transactions due to
acquisition (Note 7)... -- -- -- -- 26,936,473 2,693,647
Reinvestment of
distributions.......... 926,235 84,744 450,170 42,708 -- --
Redemption of shares.... (4,007,882) (366,259) (1,266,972) (124,158) (1,218,718) (116,800)
-------------- --------- -------------- --------- -------------- ----------
Net increase
(decrease) in capital
transactions......... 1,605,216 145,919 3,809,896 359,421 29,994,903 2,987,037
-------------- --------- -------------- --------- -------------- ----------
--------- --------- ----------
Net increase (decrease)
in net assets.......... 2,368,558 4,217,247 33,898,938
-------------- -------------- --------------
NET ASSETS--MARCH 31, 1998
- --------------------------
(Including line (A)).... 28,196,053 12,907,927 33,898,938
-------------- -------------- --------------
OPERATIONS:
Net investment income
(loss)................. 647,407 294,156 116,458
Net realized gain (loss)
on investments sold.... 100,897 66,662 585,742
Net change in unrealized
appreciation
(depreciation) on
investments............ 421,564 228,220 (4,239,055)
-------------- -------------- --------------
Net increase
(decrease) in net
assets resulting from
operations........... 1,169,868 589,038 (3,536,855)
-------------- -------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income... (647,407) (294,156) (204,931)
Net realized gain on
investments............ -- -- --
-------------- -------------- --------------
Total distributions to
shareholders......... (647,407) (294,156) (204,931)
-------------- -------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares.......... 3,581,318 323,213 1,769,813 164,533 1,864,353 163,804
Reinvestment of
distributions.......... 499,440 45,024 288,233 26,683 94 9
Redemption of shares.... (2,795,563) (252,826) (924,909) (85,646) (1,999,758) (183,625)
-------------- --------- -------------- --------- -------------- ----------
Net increase
(decrease) in capital
transactions......... 1,285,195 115,411 1,133,137 105,570 (135,311) (19,812)
-------------- --------- -------------- --------- -------------- ----------
--------- --------- ----------
Net increase (decrease)
in net assets.......... 1,807,656 1,428,019 (3,877,097)
-------------- -------------- --------------
NET ASSETS--SEPTEMBER 30,
1998
- --------------------------
(Including line (B)).... $ 30,003,709 $ 14,335,946 $ 30,021,841
-------------- -------------- --------------
-------------- -------------- --------------
(A) Accumulated
undistributed
(distribution in
excess of) net
investment income,
March 31, 1998........ $ -- $ 489 $ 88,462
-------------- -------------- --------------
-------------- -------------- --------------
(B) Accumulated
undistributed
(distribution in
excess of) net
investment income,
September 30, 1998.... $ -- $ 489 $ (11)
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
See Notes to Financial Statements. 29 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1998 AND
THE PERIOD ENDED SEPTEMBER 30, 1998 (unaudited) (concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAYSON BALANCED FUND PAYSON VALUE FUND
--------------------------- ---------------------------
AMOUNT SHARES AMOUNT SHARES
-------------- ---------- -------------- ----------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31,
1997................... $ 18,163,143 $ 13,108,968
- ------------------------- -------------- --------------
OPERATIONS:
Net investment income
(loss)................ 566,112 101,763
Net realized gain
(loss) on investments
sold.................. 3,327,732 1,827,572
Net change in
unrealized
appreciation
(depreciation) on
investments........... 1,901,486 4,127,867
-------------- --------------
Net increase in net
assets resulting
from operations..... 5,795,330 6,057,202
-------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (566,112) (101,763)
Net realized gain on
investments........... (2,798,475) (1,140,141)
-------------- --------------
Total distributions
to shareholders..... (3,364,587) (1,241,904)
-------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares......... 3,548,584 245,496 3,200,541 167,428
Reinvestment of
distributions......... 2,130,618 155,750 737,950 39,454
Redemption of shares... (1,833,253) (124,233) (1,944,400) (101,877)
-------------- ---------- -------------- ----------
Net increase
(decrease) in
capital
transactions....... 3,845,949 277,013 1,994,091 105,005
-------------- ---------- -------------- ----------
---------- ----------
Net increase
(decrease) in net
assets............. 6,276,692 6,809,389
-------------- --------------
NET ASSETS--MARCH 31,
1998
- -------------------------
(Including line (A))... 24,439,835 19,918,357
-------------- --------------
OPERATIONS:
Net investment income
(loss)................ 270,691 36,255
Net realized gain
(loss) on investments
sold.................. (342,064) 354,428
Net change in
unrealized
appreciation
(depreciation) on
investments........... (4,197,174) (4,322,888)
-------------- --------------
Net increase
(decrease) in net
assets resulting
from operations..... (4,268,547) (3,932,205)
-------------- --------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income................ (270,612) (36,222)
Net realized gain on
investments........... -- --
-------------- --------------
Total distributions
to shareholders..... (270,612) (36,222)
-------------- --------------
CAPITAL SHARE
TRANSACTIONS:
Sale of shares......... 1,049,864 76,507 1,662,493 81,597
Reinvestment of
distributions......... 164,401 12,748 21,409 1,209
Redemption of shares... (1,095,973) (84,009) (970,770) (49,244)
-------------- ---------- -------------- ----------
Net increase
(decrease) in
capital
transactions........ 118,292 5,246 713,132 33,562
-------------- ---------- -------------- ----------
---------- ----------
Net increase (decrease)
in net assets......... (4,420,867) (3,255,295)
-------------- --------------
NET ASSETS--SEPTEMBER 30,
1998
- -------------------------
(Including line (B))... $ 20,018,968 $ 16,663,062
-------------- --------------
-------------- --------------
(A) Accumulated
undistributed
(distribution in
excess of) net
investment income,
March 31, 1998....... $ (3,069) $ (15,760)
-------------- --------------
-------------- --------------
(B) Accumulated
undistributed
(distribution in
excess of) net
investment income,
September 30,
1998................. $ (2,990) $ (15,727)
-------------- --------------
-------------- --------------
</TABLE>
See Notes to Financial Statements. 30 FORUM FUNDS-Registered Trademark-
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTORS HIGH GRADE BOND FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... $ 9.96 $ 0.29 $ 0.36 $(0.29) $ - $10.32
March 16, 1998 to March 31, 1998........ 10.00 0.02 (0.04) (0.02) - 9.96
INVESTORS BOND FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 10.57 0.32 0.18 (0.32) - 10.75
April 1, 1997 to March 31, 1998......... 10.19 0.71 0.38 (0.71) - 10.57
April 1, 1996 to March 31, 1997......... 10.21 0.71 - (0.71) (0.02) 10.19
April 1, 1995 to March 31, 1996......... 10.00 0.74 0.21 (0.74) - 10.21
April 1, 1994 to March 31, 1995......... 10.38 0.82 (0.38) (0.82) - 10.00
April 1, 1993 to March 31, 1994......... 10.71 0.81 (0.30) (0.81) (0.03) 10.38
TAXSAVER BOND FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 10.75 0.24 0.20 (0.24) - 10.95
April 1, 1997 to March 31, 1998......... 10.49 0.53 0.27 (0.53) (0.01) 10.75
April 1, 1996 to March 31, 1997......... 10.57 0.56 (0.03) (0.56) (0.05) 10.49
April 1, 1995 to March 31, 1996......... 10.39 0.57 0.18 (0.57) - 10.57
April 1, 1994 to March 31, 1995......... 10.35 0.57 0.04 (0.57) - 10.39
April 1, 1993 to March 31, 1994......... 10.63 0.57 (0.01) (0.57) (0.27) 10.35
MAINE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 11.05 0.25 0.20 (0.25) - 11.25
April 1, 1997 to March 31, 1998......... 10.73 0.51 0.33 (0.51) (0.01) 11.05
April 1, 1996 to March 31, 1997......... 10.72 0.51 0.01 (0.51) - 10.73
April 1, 1995 to March 31, 1996......... 10.47 0.51 0.25 (0.51) - 10.72
April 1, 1994 to March 31, 1995......... 10.37 0.52 0.11 (0.52) (0.01) 10.47
April 1, 1993 to March 31, 1994......... 10.55 0.52 (0.16) (0.52) (0.02) 10.37
(a) See Note 1 to financial statements for commencement of operations.
(b) Total return calculations do not include sales charge.
(c) Annualized.
</TABLE>
See Notes to Financial Statements. 32 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF THE FUNDS
OUTSTANDING THROUGHOUT EACH PERIOD (a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S
INCOME (LOSS) EXPENSES EXPENSES RETURN(b) RATE OMITTED)
--------------- ---------- ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 5.69%(c) 0.70%(c) 1.15%(c) 6.60% 100.95% $ 35,624
March 16, 1998 to March 31, 1998........ 5.56%(c) 0.70%(c) 3.00%(c) (0.16%) - 34,037
- ----------------------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 6.10%(c) 0.70%(c) 1.05%(c) 4.85% 58.11% 84,757
April 1, 1997 to March 31, 1998......... 6.52% 0.70% 1.22% 10.98% 116.65% 85,598
April 1, 1996 to March 31, 1997......... 6.94% 0.70% 1.45% 7.18% 79.42% 22,190
April 1, 1995 to March 31, 1996......... 7.29% 0.43% 1.36% 9.84% 42.89% 25,676
April 1, 1994 to March 31, 1995......... 8.19% 0.75% 1.33% 4.55% 48.17% 25,890
April 1, 1993 to March 31, 1994......... 7.49% 0.75% 1.31% 4.70% 41.41% 26,083
- ----------------------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 4.52%(c) 0.60%(c) 1.15%(c) 4.19% 40.65% 41,054
April 1, 1997 to March 31, 1998......... 4.95% 0.60% 1.36% 7.75% 92.87% 39,203
April 1, 1996 to March 31, 1997......... 5.28% 0.60% 1.53% 5.15% 34.19% 17,757
April 1, 1995 to March 31, 1996......... 5.35% 0.60% 1.48% 7.36% 61.61% 17,915
April 1, 1994 to March 31, 1995......... 5.62% 0.60% 1.45% 6.18% 63.85% 16,018
April 1, 1993 to March 31, 1994......... 5.27% 0.60% 1.50% 5.24% 141.80% 16,518
- ----------------------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 4.48%(c) 0.60%(c) 1.36%(c) 4.12% 22.69% 30,004
April 1, 1997 to March 31, 1998......... 4.65% 0.60% 1.48% 7.94% 16.34% 28,196
April 1, 1996 to March 31, 1997......... 4.77% 0.60% 1.56% 4.98% 21.18% 25,827
April 1, 1995 to March 31, 1996......... 4.73% 0.60% 1.48% 7.34% 34.07% 26,044
April 1, 1994 to March 31, 1995......... 5.08% 0.50% 1.40% 6.31% 31.55% 25,525
April 1, 1993 to March 31, 1994......... 4.81% 0.50% 1.44% 3.42% 13.47% 26,310
</TABLE>
See Notes to Financial Statements. 33 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT REALIZED VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
NEW HAMPSHIRE BOND FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... $10.73 $ 0.23 $ 0.23 $(0.23) $ - $10.96
April 1, 1997 to March 31, 1998......... 10.31 0.47 0.43 (0.48) - 10.73
April 1, 1996 to March 31, 1997......... 10.33 0.48 (0.02) (0.48) - 10.31
April 1, 1995 to March 31, 1996......... 10.08 0.48 0.25 (0.48) - 10.33
April 1, 1994 to March 31, 1995......... 9.96 0.49 0.12 (0.49) - 10.08
April 1, 1993 to March 31, 1994......... 10.01 0.51 (0.03) (0.51) (0.02) 9.96
INVESTORS GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 11.35 0.04 (1.20) (0.07) - 10.12
December 12, 1997 to March 31, 1998..... 10.00 0.03 1.32 - - 11.35
PAYSON BALANCED FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 14.79 0.16 (2.72) (0.16) - 12.07
April 1, 1997 to March 31, 1998......... 13.20 0.37 3.52 (0.37) (1.93) 14.79
April 1, 1996 to March 31, 1997......... 13.70 0.42 0.84 (0.42) (1.34) 13.20
April 1, 1995 to March 31, 1996......... 11.90 0.43 2.12 (0.43) (0.32) 13.70
April 1, 1994 to March 31, 1995......... 11.71 0.44 0.24 (0.44) (0.05) 11.90
April 1, 1993 to March 31, 1994......... 11.40 0.34 0.46 (0.35) (0.14) 11.71
PAYSON VALUE FUND
- --------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 21.67 0.04 (4.18) (0.04) - 17.49
April 1, 1997 to March 31, 1998......... 16.10 0.12 6.93 (0.12) (1.36) 21.67
April 1, 1996 to March 31, 1997......... 15.99 0.21 1.80 (0.20) (1.70) 16.10
April 1, 1995 to March 31, 1996......... 12.71 0.21 3.29 (0.21) (0.01) 15.99
April 1, 1994 to March 31, 1995......... 12.11 0.18 0.60 (0.18) - 12.71
April 1, 1993 to March 31, 1994......... 11.01 0.13 1.12 (0.15) - 12.11
(a) See Note 1 to financial statements for commencement of operations.
(b) Total return calculations do not include sales charge.
(c) Annualized.
(d) Amount represents average commission per share to brokers on repurchase or sale of equity securities.
</TABLE>
See Notes to Financial Statements. 34 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF THE FUNDS
OUTSTANDING THROUGHOUT EACH PERIOD (a)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
------------------------------------------- PORTFOLIO
NET INVESTMENT NET GROSS TOTAL TURNOVER
INCOME (LOSS) EXPENSES EXPENSES RETURN(b) RATE
--------------- ---------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 4.33%(c) 0.60%(c) 1.57%(c) 4.39% 37.88%
April 1, 1997 to March 31, 1998......... 4.45% 0.60% 1.81% 8.84% 22.99%
April 1, 1996 to March 31, 1997......... 4.65% 0.60% 2.22% 4.56% 53.46%
April 1, 1995 to March 31, 1996......... 4.65% 0.60% 2.26% 7.36% 34.31%
April 1, 1994 to March 31, 1995......... 4.95% 0.46% 2.19% 6.32% 37.59%
April 1, 1993 to March 31, 1994......... 4.68% 0.34% 4.33% 4.75% 9.60%
- ----------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 0.70%(c) 1.10%(c) 1.48%(c) (10.28%) 15.05%
December 12, 1997 to March 31, 1998..... 0.96%(c) 1.10%(c) 1.56%(c) 13.50% -
- ----------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 2.37%(c) 1.15%(c) 1.51%(c) (17.35%) 42.88%
April 1, 1997 to March 31, 1998......... 2.58% 1.15% 1.57% 31.27% 66.13%
April 1, 1996 to March 31, 1997......... 3.07% 1.15% 1.67% 9.42% 52.93%
April 1, 1995 to March 31, 1996......... 3.25% 1.15% 1.70% 21.70% 61.77%
April 1, 1994 to March 31, 1995......... 3.91% 1.15% 1.72% 6.00% 50.06%
April 1, 1993 to March 31, 1994......... 4.37% 1.15% 1.95% 6.99% 80.13%
- ----------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 0.38%(c) 1.45%(c) 1.76%(c) (19.12%) 22.98%
April 1, 1997 to March 31, 1998......... 0.62% 1.45% 1.87% 45.28% 38.85%
April 1, 1996 to March 31, 1997......... 1.30% 1.45% 2.07% 13.01% 24.13%
April 1, 1995 to March 31, 1996......... 1.47% 1.45% 2.16% 27.77% 53.06%
April 1, 1994 to March 31, 1995......... 1.59% 1.46% 2.25% 6.52% 27.20%
April 1, 1993 to March 31, 1994......... 1.38% 1.45% 3.04% 11.38% 32.15%
<CAPTION>
NET ASSETS AT
END OF PERIOD AVERAGE
(000'S COMMISSION
OMITTED) RATE(d)
------------- ----------
<S> <C> <C>
- -------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... $ 14,336 N/A
April 1, 1997 to March 31, 1998......... 12,908 N/A
April 1, 1996 to March 31, 1997......... 8,691 N/A
April 1, 1995 to March 31, 1996......... 6,903 N/A
April 1, 1994 to March 31, 1995......... 5,276 N/A
April 1, 1993 to March 31, 1994......... 3,555 N/A
- -------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 30,022 0.0690
December 12, 1997 to March 31, 1998..... 33,899 0.0760
- -------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 20,019 0.0287
April 1, 1997 to March 31, 1998......... 24,440 0.0647
April 1, 1996 to March 31, 1997......... 18,163 0.0806
April 1, 1995 to March 31, 1996......... 17,455 0.0973
April 1, 1994 to March 31, 1995......... 13,872 -
April 1, 1993 to March 31, 1994......... 11,355 -
- -------------------------------------------------------------------------------------------------------------------
April 1, 1998 to September 30, 1998..... 16,663 0.0696
April 1, 1997 to March 31, 1998......... 19,918 0.0807
April 1, 1996 to March 31, 1997......... 13,109 0.0979
April 1, 1995 to March 31, 1996......... 10,319 0.0993
April 1, 1994 to March 31, 1995......... 7,960 -
April 1, 1993 to March 31, 1994......... 5,060 -
</TABLE>
See Notes to Financial Statements. 35 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
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. Investors High Grade Bond Fund, Payson Balanced
Fund, Payson Value Fund and Investors Growth Fund are diversified portfolios.
All other Funds are non-diversified. Included in this report are the eight Funds
listed below (each a "Fund" and collectively the "Funds"). Commencement of
operations for each Fund was as follows:
<TABLE>
<S> <C>
Investors High Grade Bond Fund March 16, 1998
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
Investors Growth Fund December 12, 1997
Payson Balanced Fund November 25, 1991
Payson Value Fund July 31, 1992
</TABLE>
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 Funds:
SECURITY VALUATION-Securities held by the Funds 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 held by the Funds are valued at
amortized cost.
REPURCHASE AGREEMENTS-Each Fund may invest in repurchase agreements. The Funds,
through their custodian, receive delivery of the underlying securities, whose
market value must always equal or exceed the repurchase price. The investment
adviser is responsible for determining the value of the underlying securities at
all times. In the event of default, a Fund may have difficulties disposing of
such securities.
INTEREST AND DIVIDEND INCOME-Interest income is accrued as earned. Dividends on
securities held by the Funds are recorded on the ex-dividend date.
36 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS-Distributions of net investment income to
shareholders are declared daily and paid monthly by all Funds except Investors
Growth Fund, Payson Balanced Fund and Payson Value Fund, for which dividends are
declared and paid quarterly. Net capital gains, if any, are distributed to
shareholders at least annually. Distributions are based on amounts calculated in
accordance with applicable income tax regulations.
ORGANIZATION COSTS-The costs incurred by Investors High Grade Bond Fund and
Investors Growth Fund in connection with their 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 Funds'
operations.
FEDERAL TAXES-Each Fund intends to qualify and continue to qualify each year as
a regulated investment company and distribute all of its taxable income. In
addition, by distributing in each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, each Fund
will not be subject to a federal excise tax. Therefore, no federal income or
excise 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 recorded on trade date.
Realized gain and loss on investments sold are recorded on the basis of
identified cost.
NOTE 3. ADVISORY FEES, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS-The investment adviser for Investors High Grade Bond Fund,
Investors Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New
Hampshire Bond Fund and Investors Growth Fund is Forum Investment Advisors, LLC
("Forum Advisors"). Forum Advisors receives an advisory fee of 0.40% of the
average daily net assets from Investors High Grade Bond Fund, Investors Bond
Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund and New Hampshire Bond Fund
and 0.65% of the average daily net assets from Investors Growth 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.
ADMINISTRATOR-The administrator of the Funds, Forum Administrative Services, LLC
("FAdS") receives a management fee for its services to the Funds at an annual
rate of 0.20% of the average daily net assets of each Fund.
TRANSFER AGENT-Forum Shareholder Services, LLC ("FSS") serves as the Funds'
transfer agent and dividend disbursing agent. For those services, FSS receives
an annual fee of $12,000, plus 0.25% of the average daily net assets of each
Fund, and an annual shareholder account fee of $18.00 per shareholder account.
37 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
DISTRIBUTOR-Forum Financial Services, Inc. ("FFSI"), a registered broker-dealer
and a member of the National Association of Securities Dealers, Inc., acts as
the distributor of the Funds' shares. For its services, FFSI receives, and may
reallocate to certain financial institutions, the sales charge paid by the
purchasers of a Fund's shares.
For the six months ended September 30, 1998, FFSI received sales commissions
with respect to sales of Investors Bond Fund, TaxSaver Bond Fund, Maine
Municipal Bond Fund, New Hampshire Bond Fund and Payson Value Fund. After
deducting amounts allowed to authorized dealers and agents, commissions amounted
to $47.39, $7.97, $222.76, $121.80 and $174.38, respectively. Maine Municipal
Bond Fund and New Hampshire Bond Fund deducted amounts allowed dealers and
agents of $10,730.84 and $370.20, respectively.
OTHER SERVICE PROVIDERS-Forum Accounting Services, LLC ("FAcS") serves as the
Trust's fund accountant. FAcS is compensated for such services at an amount of
$36,000 per year per Fund, plus certain amounts based upon the asset level of a
Fund, as well as the number and types of portfolio transactions of a Fund.
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
FSS, FAdS and Payson have voluntarily undertaken to waive a portion of their
fees and assume certain expenses of the Funds so that total expenses of the
Funds would not exceed a certain limitation. FSS, FAdS and Payson, at their
discretion, may revise or discontinue the voluntary waivers. For the six months
ended September 30, 1998, expenses reimbursed and fees waived were as follows:
<TABLE>
<CAPTION>
EXPENSES
REIMBURSED FEES WAIVED TOTAL
------------ --------------------------------- EXPENSES REIMBURSED
FAdS PAYSON FSS FAdS AND FEES WAIVED
------------ --------- ----------- --------- ----------------------
<S> <C> <C> <C> <C> <C>
Investors High Grade Bond Fund.... $ -- $ -- $ 43,465 $ 34,753 $ 78,218
Investors Bond Fund............... -- -- 105,632 43,908 149,540
TaxSaver Bond Fund................ 20,648 -- 48,614 39,078 108,340
Maine Municipal Bond Fund......... 50,787 -- 30,625 28,917 110,329
New Hampshire Bond Fund........... 38,498 -- 13,651 13,572 65,721
Investors Growth Fund............. -- -- 41,330 21,352 62,682
Payson Balanced Fund.............. -- 15,200 25,977 -- 41,177
Payson Value Fund................. -- 15,200 14,449 -- 29,649
</TABLE>
38 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
NOTE 5. SECURITY TRANSACTIONS
Cost of purchases and proceeds from sales (including maturities) of portfolio
securities (excluding short-term investments) during the six months ended
September 30, 1998 were as follows:
<TABLE>
<CAPTION>
PROCEEDS
FROM SALES COST OF PROCEEDS OF
COST OF AND GOV'T GOV'T
PURCHASES MATURITIES PURCHASES PURCHASES
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Investors High Grade Bond Fund.......... $34,554,799 $33,905,396 $25,895,904 $25,540,315
Investors Bond Fund..................... 61,536,934 45,844,273 40,099,935 31,186,012
TaxSaver Bond Fund...................... 16,255,154 15,506,792 -- --
Maine Municipal Bond Fund............... 7,833,680 6,319,497 -- --
New Hampshire Bond Fund................. 6,240,606 5,048,646 -- --
Investors Growth Fund................... 5,214,464 4,557,065 -- --
Payson Balanced Fund.................... 10,895,167 9,398,547 809,875 1,063,580
Payson Value Fund....................... 5,254,190 4,180,677 -- --
</TABLE>
For federal income tax purposes, the tax basis of investment securities owned as
of September 30, 1998 were the same as for financial reporting purposes. The
aggregate gross unrealized appreciation for all securities in which there was an
excess of market value over tax cost and the aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
market value were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ---------- ------------
<S> <C> <C> <C>
Investors High Grade Bond
Fund....................... $ 1,394,559 $ -- $ 1,394,559
Investors Bond Fund......... 3,335,316 638,006 2,697,310
TaxSaver Bond Fund.......... 1,700,293 -- 1,700,293
Maine Municipal Bond Fund... 1,585,463 -- 1,585,463
New Hampshire Bond Fund..... 617,253 85 617,168
Investors Growth Fund....... 14,373,329 1,305,196 13,068,133
Payson Balanced Fund........ 1,588,170 2,587,235 (999,065)
Payson Value Fund........... 4,063,009 1,595,270 2,467,739
</TABLE>
NOTE 6. CONCENTRATION OF RISK
The Maine Municipal Bond Fund and New Hampshire Bond Fund invest substantially
all of their assets in debt obligations of issuers located in the states of
Maine and New Hampshire, respectively. The issuers' abilities to meet their
obligations may be affected by Maine and Hew Hampshire economic or political
developments.
39 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
SEPTEMBER 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
NOTE 7. ACQUISITION OF FUNDS
As of December 11, 1997, Investors Bond Fund acquired all the net assets of NCBE
Fixed Income Trust Fund for Qualified Pension and Profit Sharing Retirement
Plans and Trusts and NCBE Fixed Income Common Trust Fund. TaxSaver Bond Fund
acquired all the net assets of NCBE Municipal Bond Common Trust Fund. Investors
Growth Fund acquired all the net assets of NCBE Discretionary Common Trust Fund
and NCBE Equity Common Trust Fund for Self-Employed Individuals' Retirement
Plans and Trusts. In addition, as of March 16, 1998, Investors High Grade Bond
Fund acquired all the net assets of the CTF Income Fund and the net assets of
the CTF Balanced Fund's fixed income segment. The net assets, unrealized gain
(loss) and shares associated with each acquired fund immediately prior to
acquisition were as follows:
<TABLE>
<CAPTION>
UNREALIZED SHARES
ACQUIRED FUNDS NET ASSETS GAIN/(LOSS) ACQUIRED
- ---------------------------- ------------ ---------- -----------
<S> <C> <C> <C>
NCBE Fixed Income Trust Fund
for Qualified Pension and
Profit Sharing Retirement
Plans and Trusts........... $ 19,803,770 $ -- 1,877,135
NCBE Fixed Income Common
Trust Fund................. 25,399,670 582,690 2,407,552
NCBE Municipal Bond Common
Trust Fund................. 19,211,589 711,932 1,780,499
NCBE Discretionary Common
Trust Fund................. 22,784,623 13,490,984 2,278,462
NCBE Equity Common Trust
Fund for Self-Employed
Individuals' Retirement
Plans and Trusts........... 4,151,850 -- 415,185
CTF Income Fund............. 15,238,632 299,777 1,523,863
CTF Balanced Fund (fixed
income segment)............ 18,930,184 315,993 1,893,018
</TABLE>
The net assets of Investors Bond Fund, TaxSaver Bond Fund, Investors Growth
Fund, and Investors High Grade Bond Fund immediately after the acquisition were:
$75,178,000; $39,858,760; $26,936,473 and $34,168,816, respectively.
40 FORUM FUNDS-Registered Trademark-
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[GRAPHIC]
ADMINISTRATOR
FORUM ADMINISTRATIVE SERVICES, LLC
TRANSFER AGENT
FORUM SHAREHOLDER SERVICES, LLC
FORUM FUNDS
P.O. BOX 446
PORTLAND, ME 04112
207-879-0001 (IN PORTLAND, ME)
800-94FORUM (ELSEWHERE)
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION TO SHAREHOLDERS AND OTHERS
WHO HAVE RECEIVED A COPY OF THE FORUM FUNDS' PROSPECTUS.
