<PAGE>
[Graphic]
FORUM
FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1999
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>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
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................................. 9
New Hampshire Bond Fund................................... 13
Investors Growth Fund..................................... 16
Payson Balanced Fund...................................... 17
Payson Value Fund......................................... 19
Notes to Schedules of Investments........................... 20
Statements of Assets and Liabilities........................ 22
Statements of Operations.................................... 24
Statements of Changes in Net Assets......................... 26
Financial Highlights........................................ 30
Notes to Financial Statements............................... 34
</TABLE>
FORUM FUNDS-Registered Trademark-
<PAGE>
(This page intentionally left blank)
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
September 30, 1999
Dear Investor,
Forum Funds is pleased to send you this semi-annual report for the period
ended September 30, 1999. We will share with you the financial highlights of the
period and our perspective on the financial markets. We would also like to take
this opportunity to thank you for the continued confidence you have placed in
the funds. Total net assets for the eight Forum Funds in this semi-annual report
stand at over $240 million.
In the equity markets, the first half of the funds' fiscal year has been one
of marginal returns in general. The markets' nerves are being tested by a number
of factors, including a tightening of monetary policy, potential impact of Y2K
related issues, and disappointing earnings results by a number of highly visible
companies. As measured by the Standard & Poor's 500 Index, the market was
essentially flat over the last six months, recording a positive total return of
0.36%, and down 0.28% on simple price appreciation. Growth funds have done
somewhat better than the overall market in this period, with the Morningstar
Growth Fund Average recording a total return of 2.80%. The Payson Value Fund
turned in a relatively strong performance over the period with a total return of
1.91% versus the benchmark 0.10%.
It has been a similar story in the fixed income markets. Price depreciation
due to rising interest rates has offset the income earned, resulting in small
negative total returns for fixed income funds, including those within the Forum
Fund family. Additionally, municipal bonds have underperformed taxable fixed
income securities over the period. Of note, however, the three Forum Funds
tax-exempt funds have outperformed their Morningstar benchmarks over the
six-month period. For instance, the Maine Municipal Bond Fund and the New
Hampshire Bond Fund had total returns of -1.37% and -1.57%, respectively, not
including the impact of sales charges, versus the Morningstar Municipal-Single
State Bond Funds Average of -3.14%.
The balance of the funds' fiscal year will likely be characterized by
investor caution, as the Federal Reserve has announced its "tightening bias",
and as investors watch Y2K developments. Interest rates have an upward bias in
this environment, which will serve to limit total return in stocks and bonds.
However, presuming that the Federal Reserve has acted quickly enough to control
inflation, the early months of 2000 have the potential to be very good to
investors. We counsel investors to stay with their long-term investing plan.
Thank you again for your trust in Forum Funds. We invite you to read the
adviser comments on market conditions on the following pages and to review the
remainder of this semi-annual report for further details about the 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,
/S/ JOHN Y. KEFFER
JOHN Y. KEFFER
PRESIDENT
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
DISCUSSION: FORUM INVESTMENT ADVISORS, LLC
- --------------------------------------------------------------------------------
ECONOMIC OVERVIEW
ECONOMIC AND FINANCIAL DEVELOPMENTS
The juxtaposition of this reporting period versus that of one year ago could
not be more dramatic. One year ago, investors' nerves were rattled by currency
crises in Russia and Brazil, by the bailout of a highly leveraged U.S. hedge
fund, and by continuing evidence that the miracle of Asian growth rates was less
than promised. Global weakness threatened to engulf the long, robust U.S.
expansion, as unemployment ticked up, consumer confidence swooned, retail sales
sunk, and banks got nervous about lending. This led the Federal Reserve to cut
the Fed Funds rate target three times from August through November, from 5.50%
to 4.75%. Fixed income markets performed very well, though the Treasury market
performed best, as investors fled to quality. The monetary easing and good
worldwide management of the currency crises enabled the U.S. economy to shrug
off the concerns of that period, and march forward in this 8th year of
expansion.
Despite the confidence and growth that has returned to the U.S. economy,
there is increasing evidence that this expansion is getting "long in the tooth".
The U.S. economy has grown at a remarkably consistent 3.5% to 4.0% annual rate
for the last three years. However, it has recently begun to show signs of
expanding beyond its non-inflationary rate. Consequently, the Federal Reserve
has begun tightening monetary policy, with the Fed Funds rate target now back up
to 5.25%. The strengthening economy is evidenced by a number of measures. The
unemployment rate continues its descent, measuring 4.2% in September, down from
its peak in this cycle of almost 8% in mid-1992. Retail sales continue to show
large year-over-year increases, with huge 10% plus year-over-year increases in
August and September, albeit over a weak period in 1998, when the Russian and
Brazilian fiscal crises unfolded. Manufacturing managers and consumers are both
very positive about the near term economic outlook, as measured by the
Purchasing Managers Index and consumer confidence surveys. Finally, prices, as
measured by the Consumer Price Index ("CPI"), have begun to climb. The CPI was
up 2.5% year-over-year in September, from its trough of 1.5% in the spring of
1998.
As stated in the Message to Our Shareholders, the effect of this economic
roller coaster has been cautious securities markets, particularly as monetary
policy retains its tightening bias, and fiscal policy was not made expansionary
through tax cuts. Strong performance in the equity markets continues to be
concentrated in a few sectors, and the fixed income market remains volatile.
Again, as stated, it is a good time for investors to stick to their long-term
investing plan, rebalancing as necessary in order to execute that plan.
FORUM FUNDS PERFORMANCE
The performance for most of the Forum Funds was essentially in line with
their benchmarks over the period, with the best results going to the tax-exempt
bond funds and the Payson Value Fund. Taking advantage of lower prices for
certain bonds in last year's flight to quality contributed to the fixed income
funds' success over the period.
2 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
FORUM FUNDS PERFORMANCE
- --------------------------------------------------------------------------------
SUMMARY PERFORMANCE INDICATORS
SIX MONTH TOTAL RETURN -- PERIOD ENDING SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
FORUM FUNDS VS.
FORUM FUNDS BENCHMARK BENCHMARK
----------- --------- ---------------
<S> <C> <C> <C>
Investors High Grade Bond Fund.......................... -0.79% 0.07%(1) -0.86%
Investors Bond Fund..................................... -0.99% -0.51%(2) -0.48%
TaxSaver Bond Fund...................................... -2.11% -2.71%(3) 0.60%
Maine Municipal Bond Fund............................... -1.37% -2.71%(3) 1.34%
New Hampshire Bond Fund................................. -1.57% -2.71%(3) 1.14%
Investors Growth Fund................................... -6.30% 2.80%(4) -9.10%
Payson Balanced Fund.................................... -0.91% -0.02%(5) -0.89%
Payson Value Fund....................................... 1.91% 0.10%(6) 1.81%
(1) MORNINGSTAR Corporate Bond-High Quality Funds
Average:
273 Funds in Category
(2) MORNINGSTAR Corporate Bond-General Funds
Average:
593 Funds in Category
(3) MORNINGSTAR Municipal Bond-National Funds
Average:
559 Funds in Category
(4) MORNINGSTAR Growth Funds Average:
1,929 Funds in Category
(5) MORNINGSTAR Balanced Funds Average:
445 Funds in Category
(6) MORNINGSTAR Growth & Income Funds Average:
812 Funds in Category
</TABLE>
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. FORUM FUNDS AND MORNINGSTAR
RETURN FIGURES DO NOT INCLUDE THE EFFECT OF THE MAXIMUM SALES CHARGE, SEE TABLE
BELOW. DURING THE PERIOD CERTAIN FEES AND EXPENSES WERE WAIVED BY THE SERVICE
PROVIDERS. IF THE MAXIMUM SALES CHARGE WAS REFLECTED AND IF THERE HAD BEEN NO
FEE WAIVERS, THE QUOTED PERFORMANCE WOULD BE LOWER.
<TABLE>
<CAPTION>
<S> <C>
MAXIMUM SALES CHARGES
Investors High Grade Bond Fund 3.75%
Investors Bond Fund 3.75%
TaxSaver Bond Fund 3.75%
Maine Municipal Bond Fund 3.00%
New Hampshire Bond Fund 3.00%
Investors Growth Fund 4.00%
Payson Balanced Fund 4.00%
Payson Value Fund 4.00%
</TABLE>
3 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS HIGH GRADE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
CORPORATE BONDS & NOTES (19.3%)
$ 1,500,000 ABN Amro Bank, North
America Finance, Inc.,
8.25%, 8/1/09.......... $ 1,525,920
500,000 BankAmerica Corp., 8.13%,
2/1/02................. 517,725
500,000 Dean Witter Discover,
6.25%, 3/15/00......... 500,930
2,000,000 Lehman Brothers Holdings,
Inc., 8.50%, 8/1/15.... 2,092,160
2,000,000 Mercantile Banc Corp.,
7.30%, 6/15/07......... 2,018,400
-----------
Total Corporate Bonds & Notes
(cost $6,710,446) 6,655,135
-----------
GOVERNMENT AGENCY NOTES (3.1%)
FHLMC (0.9%)
300,000 6.60%, 11/12/99.......... 300,390
FNMA (2.2%)
750,000 7.50%, 2/11/02........... 772,020
-----------
Total Government Agency Notes
(cost $1,072,078) 1,072,410
-----------
GOVERNMENT MORTGAGE BACKED SECURITIES (13.1%)
GNMA (13.1%)
767,777 Pool 382828, 6.50%,
4/15/28................ 734,425
540,694 Pool 400138, 6.50%,
4/15/28................ 517,206
106,419 Pool 430637, 6.50%,
4/15/28................ 101,796
225,942 Pool 462566, 6.50%,
3/15/28................ 216,127
43,191 Pool 463682, 6.50%,
3/15/28................ 39,402
812,442 Pool 463821, 6.50%,
4/15/28................ 777,150
1,025,060 Pool 463822, 6.50%,
4/15/28................ 980,532
</TABLE>
<TABLE>
GOVERNMENT MORTGAGE BACKED SECURITIES, CONTINUED
$ 638,927 Pool 468812, 6.50%,
4/15/28................ $ 611,172
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
68,745 Pool 473533, 6.50%,
4/15/28................ 65,759
206,676 Pool 473541, 6.50%,
4/15/28................ 197,698
284,505 Pool 474630, 6.50%,
4/15/28................ 272,146
-----------
Total Government Mortgage Backed
Securities
(cost $4,718,379)
4,513,413
-----------
U.S. TREASURY OBLIGATIONS (58.2%)
U.S. TREASURY BONDS (10.0%)
4,000,000 5.25%, 11/15/28.......... 3,466,320
-----------
U.S. TREASURY NOTES (48.2%)
1,000,000 5.88%, 2/15/04........... 1,004,690
2,000,000 7.25%, 5/15/04........... 2,110,140
3,000,000 6.50%, 8/15/05........... 3,073,050
10,000,000 5.88%, 11/15/05.......... 9,945,998
500,000 6.25%, 2/15/07........... 504,651
-----------
Total U.S. Treasury Notes 16,638,529
-----------
Total U.S. Treasury Obligations
(cost $20,992,578) 20,104,849
-----------
SHORT-TERM HOLDINGS (6.3%)
1,500,000 Ameritech CP, 5.30%,
10/4/99................ 1,499,338
704,292 Bankers Trust Investment
Money Market Fund...... 704,292
-----------
Total Short-Term Holdings
(cost $2,203,630) 2,203,630
-----------
Total Investments (100.0%)
(cost $35,697,111) $34,549,437
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
4
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (1.8%)
FHLMC (0.1%)
$ 91,805 Series 90 135-A, 8.75%,
5/15/00................ $ 91,840
-----------
OTHER (1.7%)
140,700 Merrill Lynch Mortgage
Investors, Inc., Series
89 E, 9.40%, 9/15/09... 145,253
920,363 RTC, Series 92 C8 D,
8.84%, 12/25/23 +...... 914,611
-----------
Total Other 1,059,864
-----------
Total Collateralized Mortgage
Obligations
(cost $1,134,757)
1,151,704
-----------
CORPORATE BONDS & NOTES (76.1%)
2,595,000 ABN Amro Bank, North
America Finance, Inc.,
8.25%, 8/1/09.......... 2,639,842
500,000 Bank One Corp., 8.10%,
3/1/02................. 515,375
4,250,000 Bank United, 8.00%,
3/15/09................ 4,079,064
1,500,000 Bankers Trust New York
Co., 7.25%, 10/15/11... 1,474,050
3,000,000 CBS, Inc., ACA insured,
7.63%, 1/1/02.......... 3,042,690
4,250,000 Chase Capital, 5.60% V/R,
8/1/28................. 4,047,110
500,000 Chase Manhattan Bank,
N.A., 9.75%, 11/1/01... 530,985
7,000,000 Comerica Bank, 8.38%,
7/15/24................ 7,157,570
1,000,000 Commercial Credit Co.,
7.88%, 7/15/04......... 1,040,190
1,000,000 Commercial Credit Co.,
7.38%, 4/15/05......... 1,015,090
1,500,000 Conseco, Inc., 6.40%,
6/15/01................ 1,470,270
3,000,000 Conseco, Inc., 8.70%,
11/15/26............... 2,605,020
1,500,000 Cummins Engine Co., Inc.,
6.45%, 3/1/05.......... 1,430,280
1,000,000 Dow Chemical Co., 8.63%,
4/1/06................. 1,054,340
500,000 Dupont Corp., 8.13%,
3/15/04................ 528,535
500,000 First Chicago NBD Corp.,
6.13%, 2/15/06......... 472,895
1,000,000 Ford Motor Credit Co.,
7.50%, 6/15/04......... 1,026,780
400,000 International Lease
Finance Corp., 8.38%,
12/15/04............... 424,076
2,500,000 Lehman Brothers Holdings,
7.20%, 8/15/09......... 2,424,425
1,000,000 Leucadia Capital Trust I,
8.65%, 1/15/27......... 849,727
750,000 Merchants National Corp.
(a National City Corp.
subsidiary), 9.88%,
10/1/99................ 750,000
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
CORPORATE BONDS & NOTES, CONTINUED
$ 500,000 Merrill Lynch & Co.,
Inc., 7.00%, 3/15/06... $ 503,310
500,000 Merrill Lynch & Co.,
Inc., 7.00%, 1/15/07... 497,680
500,000 Morgan Stanley Group,
Inc., 6.75%, 3/4/03.... 499,510
1,000,000 NTC Capital, 5.55% V/R,
1/15/27................ 977,510
500,000 Paine Webber, Inc.,
9.25%, 12/15/01........ 523,565
3,000,000 Paine Webber, Inc.,
7.39%, 10/16/17........ 2,778,420
700,000 Republic New York Corp.,
8.38%, 2/15/07......... 745,031
1,000,000 Sears Roebuck Acceptance
Corp., 6.70%,
11/15/06............... 973,530
1,270,000 St. Paul Bancorp, Inc.,
7.13%, 2/15/04......... 1,270,076
-----------
Total Corporate Bonds & Notes
(cost $49,861,263) 47,346,946
-----------
GOVERNMENT MORTGAGE BACKED SECURITIES (7.4%)
FHLMC (0.1%)
55,409 Pool 502128, 9.00%,
10/1/04................ 57,383
-----------
GNMA (7.3%)
82,491 Pool 406467, 6.50%,
3/15/26................ 78,907
150,533 Pool 452743, 6.50%,
12/15/27............... 143,994
1,580,672 Pool 462480, 6.50%,
1/15/28................ 1,512,007
467,480 Pool 462903, 6.50%,
2/15/28................ 447,172
2,455,758 Pool 463821, 6.50%,
4/15/28................ 2,349,080
-----------
Total GNMA 4,531,160
-----------
Total Government Backed Securities
(cost $4,794,089) 4,588,543
-----------
MUNICIPAL BONDS (4.0%)
236,953 Coffee County, GA,
Hospital Authority RV,
Taxable Anticipation
Certificates,
Series B, ACA insured,
9.00%, 12/1/12 +....... 256,103
937,810 Coffee County, GA,
Hospital Authority RV,
Taxable Anticipation
Certificates,
Series B, ACA insured,
9.00%, 12/1/12 +....... 1,013,603
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
5
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
$ 1,268,727 Coffee County, GA,
Hospital Authority RV,
Taxable Anticipation
Certificates,
Series B, ACA insured,
9.00%, 12/1/12 +....... $ 1,207,714
-----------
Total Municipal Bonds
(cost $2,582,933) 2,477,420
-----------
U.S. TREASURY NOTES (4.2%)
3,000,000 5.25%, 11/15/28
(cost $2,902,500)...... 2,601,564
-----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------ ------------------------- -----------
<C> <S> <C>
PREFERRED STOCK (6.0%)
4,000,000 Irwin Financial Corp.,
Capital Trust I........ $ 1,012,501
6,850,000 NCBE Capital Trust....... 1,729,625
8,000,000 Simmons First National
Corp. ................. 1,022,504
-----------
Total Preferred Stock
(cost $3,738,300) 3,764,630
-----------
SHORT-TERM HOLDINGS (0.5%)
309,297 Bankers Trust Investment
Money Market Fund
(cost $309,297)...... 309,297
-----------
Total Investments (100.0%)
(cost $65,323,139) $62,240,104
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
6
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS (96.6%)
COLORADO (3.9%)
$ 1,000,000 Douglas County, CO, SD #1, GO Bonds,
Series A, 8.00%, 12/15/09............. $ 1,237,010
-----------
GUAM (0.6%)
190,000 Guam Government LO Highway, RV, Series
A, FSA insured, 6.25%, 5/1/02......... 201,651
-----------
ILLINOIS (4.4%)
350,000 Illinois Development Finance Authority
RV, Community Rehabilitation Providers
Facilities Acquisition Program, Series
92, 8.25%, 8/1/12..................... 379,607
1,000,000 Illinois State, GO Bonds RV, 5.70%,
4/1/10................................ 1,031,860
-----------
1,411,467
-----------
INDIANA (1.0%)
100,000 Indiana Health Facilities Financing
Authority Hospital RV, Community
Hospital of Indiana, Series A & B,
MBIA insured, 6.35%, 7/1/03........... 106,020
100,000 Indiana Transportation Financial
Authority Airport Facilities Lease RV,
Series A, 6.00%, 11/1/01.............. 103,101
100,000 Monroe County, IN, School Building Corp.
RV, First Mortgage, 5.80%, 1/15/00.... 100,595
-----------
309,716
-----------
KENTUCKY (3.5%)
1,000,000 Kenton County, KY, Water District RV,
6.00%, 2/1/17......................... 1,037,390
100,000 Kentucky Housing Corp., Housing RV,
Series B, 5.05%, 7/1/06............... 99,919
-----------
1,137,309
-----------
LOUISIANA (4.1%)
1,000,000 Louisiana Public Facilities Authority
RV, Extended Care Facilities Authority
Comm-Care Corp., 11.00%, 2/1/14....... 1,325,090
-----------
MARYLAND (1.8%)
625,000 Maryland State EDA Health Care
Facilities RV, Crescent Cities
Project, Series A, 5.30%, 12/20/18.... 586,606
-----------
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MICHIGAN (8.0%)
$ 250,000 Comstock Park, MI, Public Schools GO
Bonds, 6.00%, 5/1/06.................. $ 267,703
1,000,000 Grand Rapids, MI, Water Supply RV, FGIC
insured, 6.50%, 1/1/15................ 1,043,740
200,000 Michigan, Muni Bond Authority RV, Series
G, AMBAC insured, 6.20%, 11/1/04...... 215,002
1,000,000 Michigan State, Strategic Fund LO,
6.50%, 2/15/02........................ 1,052,410
-----------
2,578,855
-----------
MISSOURI (4.6%)
1,000,000 Kansas City, MO, IDA RV, Owens-
Illinois, PJ-Conv, 4.90%, 12/31/08.... 954,080
500,000 Sikeston, MO, Electric RV, 6.00%,
6/1/16................................ 528,975
-----------
1,483,055
-----------
MONTANA (3.1%)
1,000,000 Forsyth, MT, PCR RV Refunding, Montana
Power Co., Series A, AMBAC insured,
6.13%, 5/01/23........................ 1,011,220
-----------
NEBRASKA (3.3%)
1,000,000 Douglas County, NE, SD #17, GO Bonds,
Millard, MBIA insured, 6.25%,
10/1/17............................... 1,073,160
-----------
NEW JERSEY (3.2%)
1,000,000 Essex County, NJ, Improvement Authority
RV, Utilities System East Orange
Franchise, MBIA insured, 6.00%,
7/1/18................................ 1,032,300
-----------
NEW YORK (1.1%)
350,000 New York State Thruway Authority,
Service Contract RV, Local Highway and
Bridge Project, 5.75%, 4/1/06......... 365,901
-----------
OHIO (26.0%)
1,000,000 Cleveland, OH Public Power, 7.00%,
11/15/01.............................. 1,064,490
2,000,000 Hamilton, OH, Electrical System Mortgage
RV, Series A, FGIC insured, 6.00%,
10/15/23.............................. 2,022,860
700,000 Lakota, OH, SD UTGO Bonds, AMBAC
insured, 6.25%, 12/1/14............... 761,180
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
7
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
OHIO, CONTINUED
$ 750,000 Montgomery County, OH, GO Bonds, 5.30%,
12/1/10............................... $ 762,195
795,000 Northwest, OH, SD LOC, GO Bonds, FGIC
insured, 5.50%, 12/1/12............... 814,803
500,000 Ohio State Air Quality Development
Authority, PCR, Cleveland Electric Co.
Project, FGIC insured, 8.00%,
12/1/13............................... 553,005
1,500,000 Ohio State Turnpike Community RV, Series
A, 5.50%, 2/15/24..................... 1,471,290
555,000 Shelby County, OH, Hospital Facilities
RV, Wilson Memorial Hospital, ETM USG,
6.40%, 12/1/03........................ 573,565
435,000 Washington County, OH, Hospital
Refunding RV, Shelby General Hospital,
6.88%, 7/1/03......................... 364,691
-----------
8,388,079
-----------
OKLAHOMA (0.8%)
250,000 Claremore, OK, Public Works Authority
Capital Improvement RV, MBIA insured,
5.00%, 6/1/05......................... 254,363
-----------
PENNSYLVANIA (8.8%)
550,000 Allegheny County, PA, Hospital
Development Authority, Health Care RV,
Allegheny Valley School Project,
7.25%, 2/1/03......................... 559,625
1,000,000 Allegheny County, PA, Hospital
Development Authority, Health Center
RV, Series 90, West Penn Hospital
Foundation, 8.00%, 1/1/05............. 1,033,250
500,000 Bucks County, PA, IDA RV, Personal Care,
ETM USG, Series A, 10.00%, 5/15/19.... 751,550
350,000 Erie-Western Pennsylvania Port
Authority, Pennsylvania Refunding RV,
8.25%, 6/15/00........................ 247,366
110,000 Pennsylvania HEFA RV, Medical College of
Pennsylvania, Series 91 B, 7.25%,
3/1/05................................ 116,747
125,000 Washington County, PA, IDA RV,
Presbyterian Medical Center, FHA
insured, 6.50%, 1/15/02............... 130,464
-----------
2,839,002
-----------
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
PUERTO RICO (7.6%)
$ 1,000,000 Puerto Rico Commonwealth, GO Bonds,
Improvements Bonds, 5.50%, 7/1/13..... $ 1,011,950
750,000 Puerto Rico Commonwealth, GO Bonds, MBIA
insured, 5.75%, 7/1/10................ 797,250
35,000 Puerto Rico Public Finance Corp.,
Commonwealth Appropriations RV, Series
A, 5.38%, 6/1/18...................... 34,255
550,000 University of Puerto Rico RV, Series N,
MBIA insured, 6.25%, 6/1/04........... 595,259
-----------
2,438,714
-----------
VIRGIN ISLANDS (0.3%)
50,000 Virgin Islands, Water & Power Authority,
Electric System RV, ACA-CBI & MBIA-IBC
insured, 5.30%, 7/1/21................ 47,790
40,000 Virgin Islands, Water & Power Authority,
Electric System RV, 5.25%, 7/1/06..... 40,392
-----------
88,182
-----------
WASHINGTON (6.4%)
1,180,000 Pierce County, WA, HFA RV, Pooled,
6.00%, 12/1/28........................ 1,125,342
1,000,000 Vancouver, WA, HFA RV, Housing-
Sub-Springbrook Square B, 6.00%,
3/1/31................................ 933,320
-----------
2,058,662
-----------
WEST VIRGINIA (4.1%)
1,300,000 Monongalia County, WV, Pollution RV,
Potomac Edison Co. Fort Martin, Series
B, 5.95%, 4/1/13...................... 1,336,192
-----------
Total Municipal Bonds (cost $31,534,162) 31,156,534
-----------
<CAPTION>
SHARES
- --------------------
<C> <S> <C>
SHORT-TERM HOLDINGS (3.4%)
1,098,443 Bankers Trust Investment Tax-Free Money
Market Fund (cost $1,098,443)......... 1,098,443
-----------
Total Investments (100.0%)
(cost $32,632,605) $32,254,977
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
8
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS (97.5%)
GENERAL OBLIGATION--BOND BANK (3.8%)
$ 10,000 Maine Muni Bond Bank, Series C, 6.45%,
11/1/01............................... $ 10,448
25,000 Maine Muni Bond Bank, Series D, 5.90%,
11/1/00............................... 25,552
90,000 Maine Muni Bond Bank, Series E, 5.70%,
11/1/11............................... 92,905
50,000 Maine Muni Bond Bank, Series 89B, 7.40%,
11/1/14, P/R 11/1/99 @ 102............ 51,153
210,000 Maine Muni Bond Bank, Series 90B, 7.20%,
11/1/07, P/R 11/1/00 @ 102............ 221,494
50,000 Maine Muni Bond Bank, Series 90B, 7.20%,
11/1/11, P/R 11/1/00 @ 102............ 52,737
150,000 Maine Muni Bond Bank, Series 90B, 7.20%,
11/1/15, P/R USG, 11/1/00 @ 102....... 158,211
25,000 Maine Muni Bond Bank, Series 90D, 7.38%,
11/1/10, P/R USG, 11/1/00 @ 102....... 26,414
100,000 Maine Muni Bond Bank, Series 92B, 6.65%,
11/1/07............................... 108,619
85,000 Maine Muni Bond Bank, Series 92B, 6.75%,
11/1/12............................... 92,415
100,000 Maine Muni Bond Bank, Series 92C, 5.80%,
11/1/99............................... 100,177
150,000 Maine Muni Bond Bank, Series 92E, 5.80%,
11/1/04............................... 158,013
20,000 Maine Muni Bond Bank, Series 93A, 5.00%,
6/1/03................................ 20,417
80,000 Maine Muni Bond Bank, Series 91A, Sewer
& Water Bonds, SRF Program, 7.20%,
11/1/13, P/R USG, 11/1/01 @ 102....... 86,267
-----------
1,204,822
-----------
GENERAL OBLIGATION--LOCAL (17.4%)
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 5.75%,
10/1/01............................... 102,571
25,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 5.85%,
10/1/02............................... 25,913
150,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.00%,
10/1/03............................... 157,124
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.10%,
10/1/04............................... 105,287
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 250,000 Bangor, ME, LTGO Bonds, Bangor
International Airport Project, 6.35%,
10/1/07............................... $ 262,575
100,000 Bangor, ME, UTGO Bonds, 5.20%,
11/1/00............................... 101,505
60,000 Bangor, ME, UTGO Bonds, 5.50%, 9/1/24... 62,929
175,000 Bar Harbor, ME, UTGO Bonds, 6.20%,
6/1/05................................ 187,604
75,000 Bar Harbor, ME, UTGO Bonds, 6.45%,
6/1/09................................ 82,256
30,000 Bath, ME, UTGO Bonds, 7.45%, 12/1/07.... 35,154
20,000 Bath, ME, UTGO Bonds, 7.50%, 12/1/08.... 23,696
25,000 Bath, ME, UTGO Bonds, 5.63%, 3/1/09..... 26,182
25,000 Blue Hill, ME, UTGO Bonds, 7.30%,
7/1/06................................ 28,257
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/03................................ 52,495
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/04................................ 52,976
50,000 Brewer, ME, UTGO Bonds, Series A, 6.10%,
1/1/05................................ 52,965
50,000 Brewer, ME, UTGO Bonds, Series A, 6.20%,
1/1/06................................ 52,939
50,000 Brunswick, ME, Tax Increment GO Bonds,
BTI Project, 5.50%, 11/1/08........... 51,964
25,000 Bucksport, ME, GO Bonds, 7.15%,
4/1/07................................ 28,165
250,000 Cape Elizabeth, ME, GO Bonds, 5.75%,
10/15/09.............................. 267,348
100,000 Cape Elizabeth, ME, GO Bonds, 5.90%,
10/15/12.............................. 107,608
25,000 Cape Elizabeth, ME, GO Bonds, 5.90%,
10/15/14.............................. 26,902
100,000 Cumberland County, ME, UTGO Bonds,
6.50%, 2/1/03, P/R USG, 2/1/01 @
102................................... 104,984
250,000 Cumberland County, ME, UTGO Bonds,
5.25%, 2/1/07......................... 257,573
25,000 Ellsworth, ME, UTGO Bonds, 7.20%,
7/1/08................................ 28,612
250,000 Freeport, ME, UTGO Bonds, 7.25%,
9/1/04................................ 279,324
20,000 Freeport, ME, UTGO Bonds, 7.25%,
9/1/10................................ 23,497
40,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.40%, 9/1/04................ 43,365
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
9
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 215,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.60%, 9/1/06................ $ 234,255
50,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/07................ 54,546
70,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/08................ 76,364
35,000 Old Orchard Beach, ME, UTGO Bonds, MBIA
insured, 6.65%, 9/1/10................ 38,182
50,000 Portland, ME, GO Bonds, 10.50%,
11/1/99............................... 50,285
500,000 Portland, ME, GO Bonds, 6.20%, 4/1/05... 541,630
50,000 Portland, ME, GO Bonds, 12.60%,
11/1/05............................... 70,385
100,000 Portland, ME, GO Bonds, 7.25%,
12/1/05............................... 113,780
790,000 Portland, ME, GO Bonds, 5.30%,
6/13/13............................... 786,216
25,000 Portland, ME, GO Bonds, 6.50%, 4/1/14... 27,470
10,000 Rockland ME, GO bonds, 6.00%, 10/1/00... 10,184
25,000 Rockland ME, GO bonds, 6.00%, 10/1/01... 25,757
150,000 South Portland, ME, GO Bonds, 5.80%,
9/1/08................................ 160,830
40,000 South Portland, ME, GO Bonds, 5.80%,
9/1/11................................ 42,586
25,000 Westbrook, ME, UTGO Bonds, 6.75%,
11/15/04.............................. 27,553
75,000 Windham, ME, UTGO Bonds, 0.05%,
6/15/08............................... 48,490
130,000 Winslow, ME, GO Bonds, Crowe Rope
Industries Project, Series A, 5.50%,
3/1/07................................ 133,052
20,000 Winslow, ME, UTGO Bonds, AMBAC insured,
6.90%, 10/1/08........................ 21,439
50,000 Winslow, ME, UTGO Bonds, SD, AMBAC
insured, 7.00%, 10/1/10............... 53,693
25,000 Winthrop, ME, UTGO Bonds, 5.10%,
8/1/04................................ 25,595
25,000 Winthrop, ME, UTGO Bonds, 5.20%,
8/1/05................................ 25,675
25,000 Winthrop, ME, UTGO Bonds, 5.30%,
8/1/06................................ 25,756
25,000 Winthrop, ME, UTGO Bonds, 5.40%,
8/1/07................................ 25,841
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 250,000 Yarmouth, ME, GO Bonds, AMBAC insured,
5.25%, 11/15/09....................... $ 254,405
35,000 York, ME, SD, UTGO Bonds, AMBAC insured,
6.40%, 3/1/03......................... 36,776
-----------
5,542,515
-----------
GENERAL OBLIGATION--STATE (1.9%)
100,000 Maine, UTGO Bonds, 8.50%, 3/1/00........ 101,961
100,000 Maine, UTGO Bonds, 7.50%, 12/15/00...... 104,228
50,000 Maine, UTGO Bonds, 8.00%, 5/1/01........ 52,917
90,000 Maine, UTGO Bonds, 6.40%, 7/1/02........ 95,000
25,000 Maine, UTGO Bonds, 7.50%, 12/15/02...... 27,379
100,000 Maine, UTGO Bonds, 6.50%, 7/1/03........ 107,308
100,000 Maine, UTGO Bonds, Highway Improvements,
8.00%, 5/1/02......................... 108,946
-----------
597,739
-----------
GENERAL OBLIGATION--TERRITORIAL (7.3%)
1,150,000 Puerto Rico, GO Bonds, MBIA insured,
6.50%, 7/1/04......................... 1,256,329
525,000 Puerto Rico, GO Bonds, Series 93,
MBIA-IBC insured, 5.50%, 7/1/08....... 552,699
495,000 Puerto Rico Commonwealth, GO, MBIA
insured, 5.75%, 7/1/10................ 526,185
-----------
2,335,213
-----------
REVENUE--GUAM (9.2%)
800,000 Guam Government LO Highway RV,
Series A, FSA insured, 6.25%,
5/1/07................................ 849,056
25,000 Guam Government LO Highway RV,
Series 92 A, FSA insured, 5.60%,
5/1/00................................ 25,276
1,895,000 Guam Power Authority RV, Series A, AMBAC
insured, 6.30%, 10/1/12............... 2,052,512
-----------
2,926,844
-----------
REVENUE--HEALTH & EDUCATION (14.6%)
25,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-1,
6.80%, 12/1/07........................ 26,311
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
10
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 60,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-1,
7.00%, 12/1/16........................ $ 62,388
20,000 Maine Educational Loan Authority,
Educational Loan RV, Supplemental
Education Loan Program, Series 92 A-2,
7.15%, 12/1/16........................ 20,770
25,000 Maine Educational Loan Authority,
Series A, Student Loan Refunding RV,
6.35%, 5/1/05......................... 25,919
45,000 Maine Educational Loan Authority,
Student Loan Refunding RV, 6.90%,
11/1/03............................... 46,579
20,000 Maine HEHFA RV, AMBAC insured, 7.20%,
5/1/06, P/R 5/1/00 @ 102.............. 20,789
10,000 Maine HEHFA RV, AMBAC insured, 7.30%,
5/1/14, P/R 5/1/00 @ 102.............. 10,400
140,000 Maine HEHFA RV, Cedars Nursing Home, FHA
insured, 7.90%, 8/1/32, P/R 2/1/00 @
102................................... 144,722
250,000 Maine HEHFA RV, Coves Edge Nursing Home,
10.00%, 8/1/20, P/R 8/1/00 @ 103...... 269,920
20,000 Maine HEHFA RV, FSA insured, 6.10%,
7/1/01, P/R 5/1/00 @ 102.............. 20,653
80,000 Maine HEHFA RV, FSA insured, 6.10%,
7/1/01, U/R Balance................... 82,574
10,000 Maine HEHFA RV, Kennebec Valley Medical
Center, FGIC insured, 7.00%, 7/1/05... 10,438
55,000 Maine HEHFA RV, Kennebec Valley Medical
Center, FGIC insured, 7.00%, 7/1/15... 57,407
195,000 Maine HEHFA RV, Maine Medical Center,
ETM USG, 6.00%, 10/1/13............... 206,225
50,000 Maine HEHFA RV, P/R Series A, 6.10%,
7/1/03................................ 53,192
175,000 Maine HEHFA RV, P/R Series A, FSA
insured, 5.50%, 7/1/07................ 181,234
25,000 Maine HEHFA RV, Series A, 5.25%,
7/1/11................................ 25,121
550,000 Maine HEHFA RV, Series A, FSA insured,
5.25%, 7/1/10......................... 552,871
100,000 Maine HEHFA RV, Series B, FSA insured,
5.88%, 7/1/06......................... 104,188
450,000 Maine HEHFA RV, Series B, FSA insured,
5.55%, 7/1/08......................... 462,317
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 335,000 Maine HEHFA RV, Series B, MBIA insured,
5.00%, 7/1/10......................... $ 327,754
510,000 Maine HEHFA RV, Series D, FSA insured,
5.30%, 7/1/07......................... 519,369
5,000 Maine HEHFA RV, Southern Maine Medical
Center, AMBAC insured, 7.20%,
5/1/06................................ 5,190
5,000 Maine HEHFA RV, Southern Maine Medical
Center, AMBAC insured, 7.30%,
5/1/14................................ 5,185
100,000 Maine HEHFA RV, U/R Balance Series A,
6.10%, 7/1/03......................... 105,803
325,000 Maine HEHFA RV, U/R Balance Series A,
FSA insured, 5.50%, 7/1/07............ 336,339
950,000 Maine Veterans' Homes RV, 6.80%,
10/1/05............................... 979,403
-----------
4,663,061
-----------
REVENUE--HOUSING (3.9%)
40,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 88 D-5, 7.45%, 11/15/11........ 41,791
200,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 88 D-6, 7.25%, 11/15/19........ 206,642
30,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 89 A-2, 7.30%, 11/15/16........ 30,631
110,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 90 A-5, Remarketed 5/13/93,
6.20%, 11/15/16....................... 111,604
185,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 92 C, 6.55%, 11/15/12.......... 188,891
50,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 93 A-1, 5.05%, 11/15/06........ 49,782
300,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 94 A-2, 5.20%, 11/15/08........ 298,110
250,000 Maine HSG AUTH RV, Mortgage Purchase,
Series 94 C-1, 6.20%, 11/15/07........ 254,253
25,000 Maine HSG AUTH RV, Series 91 A, FSA
insured, 7.40%, 11/15/22.............. 25,927
50,000 Maine HSG AUTH RV, SFM Refunding RV,
Series 91-1, 6.90%, 11/1/07........... 46,510
-----------
1,254,141
-----------
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
11
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
MAINE MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--INDUSTRIAL (8.3%)
$ 15,000 Bath, ME, Sewer Improvements RV, 7.40%,
12/1/06............................... $ 17,367
25,000 Bucksport, ME, Solid Waste Disposal RV,
Champion International Corp. Project,
remarketed 5/1/93, 6.25%, 5/1/10...... 25,934
530,000 East Millinocket, ME, PCR Bonds, Great
Northern Nekoosa Corp. Project, ETM
USG, 6.70%, 6/1/04.................... 561,567
165,000 Kennebec, ME, Water District RV, 7.00%,
12/1/14, P/R USG, 12/1/01 @ 101.50.... 177,090
40,000 Kennebec, ME, Water District RV, 7.00%,
12/1/20, P/R USG, 12/1/01 @ 101.50.... 42,931
15,000 Kennebunk, ME, Sewer District RV Bonds,
7.10%, 1/1/06......................... 16,675
500,000 Maine Finance Authority RV, Boise
Cascade Corp. Project, 7.90%,
6/1/15................................ 516,915
1,250,000 Skowhegan ME, PCR Bonds, Scott Paper Co.
Project, 5.90%, 11/1/13............... 1,282,963
25,000 Wells Sanitation District, ME, Sewer RV,
6.75%, 3/1/00......................... 25,306
-----------
2,666,748
-----------
REVENUE--OTHER (0.0%)
10,000 Maine Court Facilities Authority Lease
Rental RV, 7.15%, 8/1/07, P/R USG,
8/1/00 @ 102.......................... 10,474
-----------
REVENUE--PUERTO RICO (18.2%)
20,000 Puerto Rico, Industrial, Medical &
Environmental RV, Abbott Chemicals,
Inc. Project, 6.50%, 7/1/09........... 20,604
500,000 Puerto Rico, Industrial, Tourist,
Education, Medical & Environmental RV,
Series A, MBIA insured, 5.00%,
10/1/11............................... 494,890
30,000 Puerto Rico, Infrastructure Financing
Authority, U/R Balance RV, Series A,
7.60%, 7/1/00......................... 30,382
540,000 Puerto Rico, PBA, Guaranteed Public
Education and Health Facilities RV,
Series M, FSA insured, 5.70%,
7/1/09................................ 575,246
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
REVENUE--PUERTO RICO, CONTINUED
$ 3,655,000 Puerto Rico, Public Finance Corp.,
Commonwealth Appropriations RV,
Series A, 5.38%, 6/1/18............... $ 3,577,185
1,015,000 University of Puerto Rico RV, Series N,
MBIA insured, 6.25%, 6/1/04........... 1,098,523
-----------
5,796,830
-----------
REVENUE--TRANSPORTATION (3.0%)
180,000 Maine State Turnpike Authority RV, MBIA
insured, 6.00%, 7/1/11................ 194,377
700,000 Maine State Turnpike Authority RV, MBIA
insured, 6.00%, 7/1/14................ 755,909
-----------
950,286
-----------
REVENUE--VIRGIN ISLANDS (9.9%)
20,000 Virgin Islands, HSG AUTH RV, SFM, GNMA
Mortgage-Backed, 6.00%, 3/1/07........ 20,195
785,000 Virgin Islands, PFA RV, Series 89 A,
7.30%, 10/1/18, P/R USG 10/1/00 @
101................................... 935,234
40,000 Virgin Islands, PFA RV, Sub Lien Fund
Loan Notes, Series D, 6.00%,
10/1/05............................... 40,980
680,000 Virgin Islands, Water & Power Authority,
Electric System RV, 5.25%, 7/1/06..... 686,677
225,000 Virgin Islands, Water & Power Authority,
Electric System RV, 5.25%, 7/1/08..... 224,436
1,320,000 Virgin Islands, Water & Power Authority,
Electric System RV, ACA-CBI & MBIA-IBC
insured, 5.30%, 7/1/21................ 1,261,643
-----------
3,169,165
-----------
Total Municipal Bonds
(cost $31,101,237) 31,117,838
-----------
<CAPTION>
SHARES
- --------------------
<C> <S> <C>
SHORT-TERM HOLDINGS (2.5%)
799,409 Bankers Trust Tax Free Money Market Fund
(cost $799,409)....................... 799,409
-----------
Total Investments (100.0%)
(cost $31,900,646) $31,917,247
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
12
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS (100.0%)
GENERAL OBLIGATION--BOND BANK (3.3%)
$ 5,000 New Hampshire Muni Bond Bank, Pinkerton
Academy Project, 5.25%, 6/1/07........ $ 5,094
25,000 New Hampshire Muni Bond Bank, Series 90
A, 6.90%, 1/15/05..................... 25,725
20,000 New Hampshire Muni Bond Bank, Series 90
D, 6.90%, 7/15/03..................... 20,879
25,000 New Hampshire Muni Bond Bank, Series 91
E, 6.90%, 8/15/06..................... 26,693
25,000 New Hampshire Muni Bond Bank, Series 91
K, 6.75%, 1/15/08, P/R USG 1/15/01 @
102................................... 26,295
10,000 New Hampshire Muni Bond Bank, Series 92
D, State Guaranteed, 6.00%, 1/15/11... 10,655
50,000 New Hampshire Muni Bond Bank, Series 92
H, 6.35%, 7/15/06..................... 53,077
175,000 New Hampshire Muni Bond Bank, Series 92
H, 6.50%, 7/15/08..................... 186,448
50,000 New Hampshire Muni Bond Bank, Series 94
A, 5.15%, 11/1/08..................... 50,248
85,000 New Hampshire Muni Bond Bank, Series 94
C, State Guaranteed, 5.80%, 8/15/08... 88,850
------------
493,964
------------
GENERAL OBLIGATION--LOCAL (19.7%)
155,000 Bedford, NH, UTGO Bonds, 6.70%,
8/1/12................................ 165,089
225,000 Belknap County, NH, GO Bonds, MBIA
insured, 5.20%, 6/15/13............... 221,237
50,000 Concord, NH, GO Bonds, FGIC insured,
6.05%, 10/15/08....................... 53,705
100,000 Concord, NH, GO Bonds, SD, 4.70%,
10/15/07.............................. 99,239
100,000 Concord, NH, GO Bonds, SD, 5.00%,
10/15/10.............................. 99,037
100,000 Concord, NH, UTGO Bonds, MBIA insured,
5.00%, 1/15/09........................ 100,073
50,000 Exeter, NH, UTGO Bonds, 5.10%,
6/15/05............................... 51,076
25,000 Exeter, NH, UTGO Bonds, 5.30%,
6/15/08............................... 25,567
90,000 Farmington, NH, GO Bonds, SD, AMBAC
insured, 5.55%, 2/15/02............... 92,551
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 50,000 Franklin, NH, GO Bonds, MBIA insured,
5.20%, 10/1/07........................ $ 50,993
100,000 Goffstown, NH, GO Bonds, SD, AMBAC
insured, 5.25%, 8/15/11............... 99,862
60,000 Gorham, NH, GO Bonds, FSA insured,
4.80%, 4/1/13......................... 56,192
65,000 Gorham, NH, GO Bonds, FSA insured,
4.85%, 4/1/14......................... 60,526
45,000 Keene, NH, UTGO Bonds, 5.15%,
10/15/11.............................. 44,780
25,000 Lisbon, NH, UTGO Bonds, SD, 5.60%,
2/1/10................................ 25,466
50,000 Londonderry, NH, UTGO Bonds, 5.40%,
1/15/14............................... 49,471
225,000 Manchester, NH, UTGO Bonds, General
Improvement R/V Series B, MBIA
insured, 5.00%, 1/2/09................ 221,144
250,000 Manchester, NH, UTGO Bonds, Public
Improvement, 5.50%, 11/1/12........... 253,719
15,000 Manchester, NH, UTGO Bonds, Series 93 A,
5.00%, 7/1/04......................... 15,352
250,000 Manchester, NH, UTGO Bonds, Series 93 A,
5.30%, 7/1/07......................... 256,515
20,000 Nashua, NH, UTGO Bonds, 5.70%,
7/15/07............................... 20,795
15,000 Nashua, NH, UTGO Bonds, 6.80%, 7/1/09... 15,960
100,000 Nashua, NH, UTGO Bonds, AMBAC insured,
5.35%, 7/15/06........................ 103,353
35,000 Nashua, NH, UTGO Bonds, FGIC insured,
5.25%, 11/2/09........................ 35,491
100,000 Nashua, NH, UTGO Bonds, Public
Improvement, 6.80%, 7/1/07............ 106,402
10,000 Nashua, NH, UTGO Bonds, Public
Improvement, 6.70%, 11/1/07........... 10,225
50,000 Oyster River, NH, GO Bonds, Cooperative
SD State Guaranteed, Lot A, 5.75%,
6/15/07............................... 52,620
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
13
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
GENERAL OBLIGATION--LOCAL, CONTINUED
$ 100,000 Oyster River, NH, GO Bonds, Cooperative
SD State Guaranteed, Lot A, 5.85%,
6/15/08............................... $ 105,280
30,000 Salem, NH, GO Bonds, MBIA insured,
6.45%, 3/1/04......................... 31,334
400,000 Stratham, NH, GO Bonds, SD, AMBAC
insured, 5.10%, 1/15/08............... 405,776
------------
2,928,830
------------
GENERAL OBLIGATION--STATE (8.9%)
10,000 New Hampshire, GO Bonds, 6.00%,
9/1/05................................ 10,718
350,000 New Hampshire, GO Bonds, State Capital
Improvement, 5.50%, 12/1/06........... 366,047
1,000,000 New Hampshire, GO Bonds, State Capital
Improvement, 5.13%, 10/1/17........... 937,508
------------
1,314,273
------------
REVENUE--GUAM (1.5%)
10,000 Guam Government LO Highway RV, Series 92
A, FSA insured, 6.25%, 5/1/07......... 10,613
200,000 Guam Power Authority RV, Series A, AMBAC
insured, 6.30%, 10/1/12............... 216,624
------------
227,237
------------
REVENUE--HEALTH & EDUCATION (23.3%)
20,000 Hudson, NH, Educational Facilities RV,
SD, Lot B, 7.30%, 12/15/07............ 23,326
25,000 Hudson, NH, Educational Facilities RV,
SD, Lot B, 7.30%, 12/15/08............ 28,717
15,000 Mascenic, NH, Regional SD #1, Lot C,
AMBAC insured, 7.20%, 12/15/07........ 17,341
200,000 New Hampshire, HEHFA RV, Demand Notes,
FGIC insured, 3.80% V/R, 7/1/21....... 200,000
50,000 New Hampshire, HEHFA RV, Concord
Hospital Issue, AMBAC insured, 5.40%,
10/1/06............................... 51,722
<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......... $ 36,867
460,000 New Hampshire, HEHFA RV, Elliot Hospital
of Manchester, FGIC insured, 6.25%,
10/1/21............................... 474,154
100,000 New Hampshire, HEHFA RV, Exeter
Hospital, 5.25%, 10/1/00.............. 101,187
50,000 New Hampshire, HEHFA RV, Exeter
Hospital/Healthcare Issue, 5.50%,
10/1/13............................... 50,678
165,000 New Hampshire, HEHFA RV, Franklin Pierce
College, Series 94, 5.50%, 10/1/04.... 171,568
90,000 New Hampshire, HEHFA RV, Franklin Pierce
College, Series 94, 5.50%, 10/1/04.... 90,370
90,000 New Hampshire, HEHFA RV, Franklin Pierce
College, 6.00%, 10/1/13............... 88,455
160,000 New Hampshire, HEHFA RV, Franklin Pierce
College, 6.00%, 10/1/13............... 171,286
5,000 New Hampshire, HEHFA RV, Hitchcock
Clinic Issue, MBIA insured, 6.00%,
7/1/15................................ 5,076
1,000,000 New Hampshire, HEHFA RV, Kendal at
Hanover Issue, LOC, 5.80%, 10/1/14.... 1,002,290
85,000 New Hampshire, HEHFA RV, Lakes Region
Hospital Association, 5.75%, 1/1/11... 87,747
15,000 New Hampshire, HEHFA RV, Mary Hitchcock
Memorial Hospital, 4.90%, 8/15/01..... 15,167
50,000 New Hampshire, HEHFA RV, Nashua Memorial
Hospital, 5.50%, 10/1/02.............. 50,655
125,000 New Hampshire, HEHFA RV, Rivier College,
6.90%, 1/1/13......................... 136,037
400,000 New Hampshire, HEHFA RV, River Woods at
Exeter, 9.00%, 3/1/23................. 460,720
30,000 New Hampshire, HEHFA RV, University
System of New Hampshire, MBIA insured,
Series 92, 6.00%, 7/1/07.............. 31,665
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
14
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NEW HAMPSHIRE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
REVENUE--HEALTH & EDUCATION, CONTINUED
$ 175,000 New Hampshire, HEHFA RV,
Wentworth-Douglass Hospital, 5.40%,
1/1/07................................ $ 178,752
------------
3,473,780
------------
REVENUE--HOUSING (7.0%)
450,000 New Hampshire, HSG AUTH RV, MFHR,
FHA/VA/RECD MTGS LOC, 5.60%, 7/1/03... 457,892
10,000 New Hampshire, HSG AUTH RV, SFM, 6.75%,
7/1/04................................ 10,239
80,000 New Hampshire, HSG AUTH RV, SFM, Series
A, 5.25%, 1/1/07...................... 79,564
95,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 5.90%, 1/1/07...................... 97,432
85,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 6.00%, 1/1/08...................... 85,622
95,000 New Hampshire, HSG AUTH RV, SFM, Series
B, 6.00%, 7/1/08...................... 90,690
125,000 New Hampshire, HSG AUTH RV, SFM, Series
SB, 4.85%, 1/1/05..................... 124,014
90,000 New Hampshire, HSG AUTH RV, SFM, Series
SB, 4.95%, 1/1/06..................... 88,937
------------
1,034,390
------------
REVENUE--INDUSTRIAL (1.1%)
140,000 Exeter, NH, UTGO Bonds, Sewer
Improvements, 6.25%, 1/15/07.......... 147,378
10,000 New Hampshire, IDA Solid Waste Disposal
RV, Canal Electric Co. Project, FGIC
insured, 7.38%, 12/1/20............... 10,504
------------
157,882
------------
REVENUE--PUERTO RICO (9.9%)
80,000 Puerto Rico, Industrial, Medical &
Enviromental RV, Abbott Chemicals,
Inc. Project, 6.50%, 7/1/09........... 82,416
270,000 Puerto Rico, Infrastructure Financing
Authority RV, U/R Balance, Series A,
7.60%, 7/1/00......................... 273,440
25,000 Puerto Rico, Infrastructure Financing
Authority RV, U/R Balance, Series A,
7.75%, 7/1/08......................... 25,321
<CAPTION>
SECURITY
FACE AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ ------------
<C> <S> <C>
REVENUE--PUERTO RICO, CONTINUED
$ 735,000 Puerto Rico, PBA, Guaranteed Public
Education & Health Facilities RV,
Series 93 M, FSA insured, 5.70%,
7/1/09................................ $ 782,973
310,000 Puerto Rico, PFA, Commonwealth
Appropriations RV, Series A, AMBAC
insured, 5.38%, 6/1/18................ 303,400
------------
1,467,550
------------
REVENUE--TRANSPORTATION (12.9%)
1,175,000 New Hampshire State Turnpike System RV,
Series A, 6.75%, 11/1/11.............. 1,299,174
550,000 New Hampshire State Turnpike System RV,
Series A, FGIC insured, 7.00%,
11/1/06............................... 610,808
------------
1,909,982
------------
REVENUE--VIRGIN ISLANDS (12.4%)
50,000 Virgin Islands HFA, SFM RV, GNMA
Mortgage -Backed, 6.00%, 3/1/07....... 50,488
325,000 Virgin Islands, PFA RV, Series 89 A,
7.30%, 10/1/18,
P/R USG 10/1/00 @ 101................. 387,199
30,000 Virgin Islands, PFA RV, Series B, 7.25%,
10/1/07............................... 31,394
1,170,000 Virgin Islands, PFA RV, Sub Lien Fund
Loan Notes, Series D, 6.00%,
10/1/05............................... 1,198,665
30,000 Virgin Islands, Water & Power Authority
Electric System RV, 5.25%, 7/1/06..... 30,295
25,000 Virgin Islands, Water & Power Authority
Electric System RV, 5.25%, 7/1/08..... 24,937
130,000 Virgin Islands, Water & Power Authority
Electric System RV, ACA-CBI & MBIA-IBC
insured, 5.25%, 7/1/07................ 124,253
------------
1,847,231
------------
Total Investments (100.0%)
(cost $14,953,233) $14,855,119
============
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
15
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
INVESTORS GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (98.4%)
BASIC MATERIALS (2.9%)
16,000 Air Products & Chemicals................ $ 465,000
4,086 Du Pont (E.I.) de Nemours............... 248,735
-----------
713,735
-----------
CAPITAL GOODS (6.4%)
13,000 General Electric Co. ................... 1,541,312
-----------
COMMUNICATION SERVICES (10.7%)
15,000 AT&T Corp. ............................. 652,500
10,200 SBC Communications, Inc. ............... 520,837
6,000 Vodafone Airtouch plc ADR............... 1,426,500
-----------
2,599,837
-----------
CONSUMER CYCLICALS (8.1%)
20,000 Barnes & Noble, Inc.*................... 520,000
9,352 Daimler Chrysler AG..................... 649,380
14,000 Nike, Inc., Class B..................... 796,250
-----------
1,965,630
-----------
CONSUMER STAPLES (8.3%)
11,000 PepsiCo, Inc. .......................... 332,750
20,000 Tricon Global Restaurants, Inc.*........ 818,750
7,142 Unilever N.V. .......................... 486,549
15,000 Walt Disney Co.*........................ 388,125
-----------
2,026,174
-----------
ENERGY (8.9%)
8,596 Conoco, Inc.-B shares................... 235,316
10,000 Exxon Corp. ............................ 759,375
6,000 Mobil Corp. ............................ 604,500
9,000 Schlumberger, Ltd. ..................... 560,813
-----------
2,160,004
-----------
FINANCIALS (19.1%)
12,656 American International Group, Inc. ..... 1,100,281
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
FINANCIALS, CONTINUED
9,136 BankAmerica Corp. ...................... $ 508,761
157 Berkshire Hathaway Class B*............. 291,392
10,000 Fannie Mae.............................. 626,875
22,500 Fiserv, Inc.*........................... 731,250
10,000 Merrill Lynch & Co., Inc. .............. 671,875
18,000 Wells Fargo Co. ........................ 713,250
-----------
4,643,684
-----------
HEALTH CARE (11.5%)
16,000 Abbott Laboratories..................... 588,000
14,000 American Home Products.................. 581,000
8,000 Johnson & Johnson....................... 735,000
13,800 Merck & Company, Inc. .................. 894,412
-----------
2,798,412
-----------
TECHNOLOGY (21.1%)
8,000 Automatic Data Processing, Inc. ........ 357,000
6,000 Computer Sciences Corp.*................ 421,875
10,000 IBM Corp. .............................. 1,213,750
30,000 Oracle Corp.*........................... 1,365,000
40,000 Quantum Corp.*.......................... 562,500
12,000 United Technologies Corp. .............. 711,750
12,000 Xerox Corp. ............................ 503,250
-----------
5,135,125
-----------
UTILITIES (1.4%)
13,000 SIGCORP, Inc. .......................... 331,500
-----------
Total Common Stock
(cost $9,084,734) 23,915,413
-----------
SHORT-TERM HOLDINGS (1.6%)
383,554 Bankers Trust Investment Money Market
Fund (cost $383,554).................. 383,554
-----------
Total Investments (100.0%)
(cost $9,468,288) $24,298,967
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
16
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (69.1%)
BASIC MATERIALS (2.6%)
1,000 Air Products and Chemicals, Inc. ....... $ 29,063
6,200 Southdown, Inc. ........................ 331,700
7,500 USX-US Steel Group...................... 193,125
-----------
553,888
-----------
CAPITAL GOODS (3.9%)
9,000 Teleflex, Inc. ......................... 355,500
29,560 Timken Co. ............................. 476,655
-----------
832,155
-----------
COMMUNICATION SERVICES (4.8%)
10,800 AT&T Corp. ............................. 469,800
7,980 Telefonos De Mexico SA ADR.............. 568,575
-----------
1,038,375
-----------
CONSUMER CYCLICALS (11.5%)
21,000 Banta Corp. ............................ 468,563
29,200 Brunswick Corp. ........................ 726,350
10,725 Dana Corp. ............................. 398,166
24,900 Fleetwood Enterprises, Inc. ............ 502,669
11,500 Sears, Roebuck & Co. ................... 360,813
-----------
2,456,561
-----------
CONSUMER STAPLES (5.0%)
11,000 Bestfoods, Inc. ........................ 533,500
15,900 Philip Morris Cos., Inc. ............... 543,581
-----------
1,077,081
-----------
ENERGY (9.4%)
5,000 Chevron Corp. .......................... 443,750
35,975 ENSCO International, Inc. .............. 649,798
6,000 Schlumberger Ltd. ...................... 373,875
18,200 USX-Marathon Group, Inc. ............... 532,350
-----------
1,999,773
-----------
FINANCIALS (13.0%)
12,800 Allstate Corp. ......................... 319,200
6,450 Chase Manhattan Corp. .................. 486,169
9,000 Citigroup, Inc. ........................ 396,000
22,700 Conseco, Inc. .......................... 438,394
3,400 Fannie Mae.............................. 213,138
6,450 Merrill Lynch & Co., Inc. .............. 433,359
29,500 Peoples Heritage Financial Group........ 490,437
-----------
2,776,697
-----------
HEALTHCARE SERVICES (4.9%)
13,700 Abbott Laboratories..................... 503,475
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
HEALTHCARE SERVICES, CONTINUED
10,371 McKesson HBOC, Inc. .................... $ 300,759
13,350 Tenet Healthcare Corp.*................. 234,459
-----------
1,038,693
-----------
TECHNOLOGY (9.3%)
13,800 Compaq Computer Corp. .................. 316,538
8,490 Harris Corp. ........................... 234,536
4,000 Intel Corp. ............................ 297,250
7,700 Litton Industries, Inc.*................ 421,575
7,000 Northrop Grumman Corp. ................. 444,937
19,200 Quantum Corp.*.......................... 270,000
-----------
1,984,836
-----------
TRANSPORTATION EQUIPMENT (1.7%)
17,500 Ryder System, Inc. ..................... 356,563
-----------
UTILITIES (3.0%)
30,300 Teco Energy, Inc. ...................... 640,088
-----------
Total Common Stock
(cost $15,593,286) 14,754,710
-----------
<CAPTION>
FACE
AMOUNT
- --------------------
<C> <S> <C>
CORPORATE BONDS & NOTES (21.2%)
$ 200,000 Associates Corp. of North America,
6.10%, 1/15/05........................ 192,014
100,000 Avco Financial Services, 7.38%,
8/15/01............................... 101,806
150,000 Bear Stearns Cos., 6.63%, 1/15/04....... 147,255
200,000 Boeing Co., 6.35%, 6/15/03.............. 197,849
200,000 Chase Manhattan Corp., 6.25%, 1/15/06... 191,653
100,000 Crown Cork & Seal Co., 6.75%,
12/15/03.............................. 147,238
150,000 Crown Cork & Seal Co., 6.75%,
12/15/03.............................. 98,159
300,000 Diageo Capital plc, 5.63%, 6/24/04...... 299,421
250,000 Dow Chemical Co., 5.97%, 1/15/09........ 232,290
190,000 General Motors Acceptance Corp., 5.90%,
1/17/00............................... 190,202
300,000 Goldman Sachs Group, 6.65%, 5/15/09..... 285,764
200,000 Ingersoll-Rand Co., 6.58%, 5/15/01...... 193,989
200,000 Lockheed Martin Corp., 6.85%, 5/15/01... 199,819
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
17
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS & NOTES, CONTINUED
$ 200,000 MCI WorldCom, Inc., 6.13%, 8/15/01...... $ 198,720
200,000 Morgan Stanley Dean Witter & Co., 5.75%,
2/15/01............................... 198,736
200,000 New York Telephone Co., 6.00%,
4/15/08............................... 187,665
177,000 Philip Morris Cos., Inc., 7.63%,
5/15/02............................... 180,151
300,000 Potomac Electric Power Co., 5.63%,
10/15/03.............................. 289,764
200,000 Sears Roebuck Acceptance Corp., 6.75%,
9/15/05............................... 193,766
300,000 Sony Corp., 6.13%, 3/4/03............... 296,811
100,000 Wachovia Corp., 7.00%, 12/15/99......... 100,234
200,000 Wal-Mart Stores, Inc., 6.88%, 8/10/09... 200,614
100,000 WMX Technologies, Inc., 8.25%,
11/15/99.............................. 100,057
100,000 WMX Technologies, Inc., 6.70%, 5/1/01... 97,581
-----------
Total Corporate Bonds & Notes
(cost $4,658,090) 4,521,558
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (3.7%)
FHLMC (1.8%)
200,000 Series 1491 GC, 6.90%, 11/15/21......... 197,970
200,000 Series 1678 C, 6.00%, 8/15/08........... 195,390
-----------
Total FHLMC 393,360
-----------
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS, CONTINUED
FNMA (1.9%)
$ 400,000 Series 1992-184 C, 7.00%, 10/25/21...... $ 396,144
-----------
Total Collateralized Mortgage Obligations
(cost $798,125) 789,504
-----------
GOVERNMENT AGENCY NOTES (2.3%)
88,773 FNMA, 5.63%, 5/14/04.................... 291,318
200,000 Federal Farm Credit, 6.25%, 10/30/02.... 199,820
-----------
Total Government Agency Notes
(cost $500,519) 491,138
-----------
MORTGAGE BACKED SECURITIES (1.7%)
GNMA
88,773 Pool 394795, 7.50%, 10/15/10............ 91,005
284,513 Pool 457827, 6.00%, 10/15/13............ 273,526
-----------
Total Mortgage Backed Securities
(cost $378,533) 364,531
-----------
U.S. TREASURY NOTES (1.1%)
250,000 4.25%, 11/15/03
(cost $244,844)....................... 235,938
-----------
SHORT-TERM HOLDINGS (0.9%)
197,759 Bankers Trust Investment Money Market
Fund
(cost $197,759)....................... 197,759
-----------
Total Investments (100.0%)
(cost $22,371,156) $21,355,138
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
18
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
PAYSON VALUE FUND
SCHEDULES OF INVESTMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCK (98.6%)
BASIC MATERIALS (6.0%)
15,000 USX-U.S. Steel Group, Inc. ............. $ 386,250
17,000 Willamette Industries, Inc. ............ 733,125
-----------
1,119,375
-----------
CAPITAL GOODS (2.0%)
10,000 Cooper Cameron Corp.*................... 377,500
-----------
CHEMICALS (1.9%)
12,000 Air Products and Chemicals, Inc. ....... 348,750
-----------
COMMUNICATIONS (8.7%)
15,000 AT&T Corp. ............................. 652,500
8,000 GTE Corp. .............................. 615,000
5,000 Telefonos de Mexico SA ADR.............. 356,250
-----------
1,623,750
-----------
CONSUMER CYCLICAL (9.9%)
3,741 DaimlerChrysler AG...................... 259,766
12,000 Dana Corp. ............................. 445,500
12,000 Nike, Inc. - Class B.................... 682,500
16,000 TJX Cos., Inc. ......................... 449,000
-----------
1,836,766
-----------
CONSUMER STAPLES (12.2%)
9,000 Bestfoods, Inc. ........................ 436,500
10,000 MediaOne Group, Inc.*................... 683,125
12,000 Philip Morris Cos., Inc. ............... 410,250
30,000 Ruddick Corp. .......................... 476,250
10,000 Walt Disney Co.*........................ 258,750
-----------
2,264,875
-----------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (10.1%)
12,000 Intel Corp. ............................ 891,750
12,000 Texas Instruments, Inc. ................ 987,000
-----------
1,878,750
-----------
ENERGY (11.9%)
4,000 Chevron Corp. .......................... 355,000
30,000 ENSCO International, Inc. .............. 541,875
6,000 Mobil Corp. ............................ 604,500
<CAPTION>
SHARE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------ -----------
<C> <S> <C>
ENERGY, CONTINUED
5,000 New Century Energies, Inc. ............. $ 167,188
11,000 Phillips Petroleum Co. ................. 536,250
-----------
2,204,813
-----------
FINANCIAL (17.0%)
10,000 BankBoston Corp. ....................... 433,750
5,000 Chase Manhattan Corp. .................. 376,874
16,498 Citigroup, Inc. ........................ 725,912
5,000 JSB Financial, Inc. .................... 286,250
7,000 Merrill Lynch & Co., Inc. .............. 470,313
20,000 Peoples Heritage Financial Group,
Inc. ................................. 332,500
13,330 Wells Fargo Co. ........................ 528,201
-----------
3,153,800
-----------
HEALTH CARE (10.4%)
12,000 Bristol-Myers Squibb Co. ............... 810,000
4,000 Merck & Co., Inc. ...................... 259,250
12,000 Schering-Plough Corp. .................. 523,500
20,000 Tenet Healthcare Corp.*................. 351,250
-----------
1,944,000
-----------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER
EQUIPMENT (2.2%)
25,000 Timken Co. ............................. 403,125
-----------
TECHNOLOGY (6.3%)
20,000 Compaq Computer Corp. .................. 458,750
10,000 Harris Corp. ........................... 276,250
8,000 Litton Industries, Inc.*................ 438,000
-----------
1,173,000
-----------
Total Common Stock
(cost $13,438,192) 18,328,504
-----------
SHORT-TERM HOLDINGS (1.4%)
267,382 Bankers Trust Investment Money Market
Fund (cost $267,382).................. 267,382
-----------
Total Investments (100.0%)
(cost $13,705,574) $18,595,886
===========
</TABLE>
See Notes to Schedules of Investments and Notes to Financial Statements.
19
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
+ Securities that may be resold to "qualified institutional buyers" under Rule
144A or securities offered pursuant to Section 4(2) of the Securities Act of
1933, as amended.
* Non-income producing securities.
<TABLE>
<S> <C>
ACA American Capital Assets
ADR American Depositary Receipts
AMBAC American Municipal Bond Assurance Corporation
CBI Certificate of Bond Insurance
CP Commercial Paper
EDA Economic Development Authority
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
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 Rural Economic & Community Development
RV Revenue Bonds
RTC Resolution Trust Company
SD School District
SFM Single Family Mortgage
SRF State Revolving Loan Fund
U/R Unrefunded
USG U.S. Governments
UTGO Unlimited Tax General Obligation
VA Veterans Administration
V/R Variable Rate -- Certain rate securities are deemed to have
a maturity remaining until the next adjustment of the
interest rate or the longer of the demand period or
readjustment. The interest rate shown reflects the rate in
effect on September 30, 1999.
</TABLE>
See Notes to Financial Statements. 20
FORUM FUNDS-Registered Trademark-
<PAGE>
(This page intentionally left blank)
21 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (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 (Note 2):
Investments, at cost.................................. $35,697,111 $65,323,139 $32,632,605 $31,900,646
Net unrealized appreciation (depreciation)............ (1,147,674) (3,083,035) (377,628) 16,601
----------- ----------- ----------- -----------
Total investments, at value............................. 34,549,437 62,240,104 32,254,977 31,917,247
Cash.................................................... -- 10,161 -- --
Interest, dividends and other receivables............... 536,612 990,631 577,170 618,891
Receivable for securities sold.......................... -- -- -- --
Receivable for fund shares sold......................... 69,265 844 -- 300
Organization costs, net of amortization (Note 2)........ 3,572 -- -- --
----------- ----------- ----------- -----------
Total Assets................................................ 35,158,886 63,241,740 32,832,147 32,536,438
----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable....................................... 161,612 351,267 87,053 49,156
Payable for securities purchased........................ -- -- -- --
Payable to adviser (Note 3)............................. 11,470 20,775 10,708 10,659
Payable for fund shares redeemed........................ 434,857 221,108 -- --
Accrued expenses and other liabilities.................. 33,043 53,981 14,409 19,849
----------- ----------- ----------- -----------
Total Liabilities........................................... 640,982 647,131 112,170 79,664
----------- ----------- ----------- -----------
NET ASSETS.................................................. $34,517,904 $62,594,609 $32,719,977 $32,456,774
=========== =========== =========== ===========
COMPONENTS OF NET ASSETS:
Paid-in capital......................................... $35,472,471 $65,530,372 $33,140,040 $32,426,885
Undistributed net investment income..................... -- -- 8,267 --
Unrealized appreciation (depreciation) on investments... (1,147,674) (3,083,035) (377,628) 16,601
Accumulated net realized gain (loss) on investments..... 193,107 147,272 (50,702) 13,288
----------- ----------- ----------- -----------
NET ASSETS.................................................. $34,517,904 $62,594,609 $32,719,977 $32,456,774
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST............................... 3,607,737 6,334,927 3,222,276 3,039,752
=========== =========== =========== ===========
NET ASSET VALUE, AND REDEMPTION PRICE PER SHARE............. $ 9.57 $ 9.88 $ 10.15 $ 10.68
=========== =========== =========== ===========
OFFERING PRICE PER SHARE (NAV DIVIDED BY (1 - MAXIMUM SALES
LOAD))..................................................... $ 9.94 $ 10.26 $ 10.55 $ 11.01
=========== =========== =========== ===========
MAXIMUM SALES LOAD.......................................... 3.75% 3.75% 3.75% 3.00%
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements. 22
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW
HAMPSHIRE INVESTORS PAYSON PAYSON
BOND GROWTH BALANCED VALUE
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments, at cost.................................. $14,953,233 $ 9,468,288 $22,371,156 $13,705,574
Net unrealized appreciation (depreciation)............ (98,114) 14,830,679 (1,016,018) 4,890,312
----------- ----------- ----------- -----------
Total investments, at value............................. 14,855,119 24,298,967 21,355,138 18,595,886
Cash.................................................... 5,762 -- -- --
Interest, dividends and other receivables............... 300,243 26,412 130,669 27,713
Receivable for securities sold.......................... -- -- -- 224,453
Receivable for fund shares sold......................... -- 51,378 1,929 5,200
Organization costs, net of amortization (Note 2)........ -- 9,780 -- --
----------- ----------- ----------- -----------
Total Assets................................................ 15,161,124 24,386,537 21,487,736 18,853,252
----------- ----------- ----------- -----------
LIABILITIES
Dividends payable....................................... 14,495 8,505 39,082 4,341
Payable for securities purchased........................ -- -- -- 146,785
Payable to adviser (Note 3)............................. 4,957 13,613 8,880 10,960
Payable to administrator (Note 3)....................... -- -- 3,152 7,259
Payable for fund shares redeemed........................ -- 39,528 6,028 --
Accrued expenses and other liabilities.................. 12,800 33,432 40,896 34,455
----------- ----------- ----------- -----------
Total Liabilities........................................... 32,252 95,078 98,038 203,800
----------- ----------- ----------- -----------
NET ASSETS.................................................. $15,128,872 $24,291,459 $21,389,698 $18,649,452
=========== =========== =========== ===========
COMPONENTS OF NET ASSETS:
Paid-in capital......................................... $15,230,229 $ 8,141,614 $21,079,495 $12,830,034
Undistributed (distributions in excess of) net
investment income...................................... 489 (71) (124) (33)
Unrealized appreciation (depreciation) on investments... (98,114) 14,830,679 (1,016,018) 4,890,312
Accumulated net realized gain (loss) on investments..... (3,732) 1,319,237 1,326,345 929,139
----------- ----------- ----------- -----------
NET ASSETS.................................................. $15,128,872 $24,291,459 $21,389,698 $18,649,452
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST............................... 1,454,899 2,240,165 1,748,194 949,805
=========== =========== =========== ===========
NET ASSET VALUE, AND REDEMPTION PRICE PER SHARE............. $ 10.40 $ 10.84 $ 12.24 $ 19.64
=========== =========== =========== ===========
OFFERING PRICE PER SHARE (NAV DIVIDED BY (1 - MAXIMUM SALES
LOAD))..................................................... $ 10.72 $ 11.29 $ 12.75 $ 20.46
=========== =========== =========== ===========
MAXIMUM SALES LOAD.......................................... 3.00% 4.00% 4.00% 4.00%
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements. 23
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
PERIOD ENDED SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE
INVESTORS INVESTORS TAXSAVER MUNICIPAL
HIGH GRADE BOND BOND BOND
BOND FUND FUND FUND FUND
--------- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income......................................... $ 1,107,730 $ 2,279,916 $ 896,650 $ 830,442
Dividend income......................................... -- 162,490 -- --
----------- ----------- ----------- -----------
Total Investment Income..................................... 1,107,730 2,442,406 896,650 830,442
----------- ----------- ----------- -----------
EXPENSES
Investment advisory (Note 3)............................ 70,372 131,879 69,154 66,292
Management (Note 3)..................................... 35,186 65,940 34,577 33,146
Transfer agency (Note 3)................................ 50,045 88,954 49,575 54,436
Custody................................................. 3,895 5,939 4,556 5,336
Accounting (Note 3)..................................... 18,000 18,000 18,000 24,000
Audit................................................... 7,821 10,249 9,170 8,900
Legal................................................... 3,653 7,117 3,521 4,922
Trustees................................................ 1,709 3,268 1,730 1,593
Amortization of organization costs (Note 2)............. 515 -- -- --
Miscellaneous........................................... 7,299 13,675 9,705 20,724
----------- ----------- ----------- -----------
Total Expenses.............................................. 198,495 345,021 199,988 219,349
Fees waived (Note 4).................................... (74,964) (113,501) (95,939) (119,614)
----------- ----------- ----------- -----------
Net Expenses................................................ 123,531 231,520 104,049 99,735
----------- ----------- ----------- -----------
NET INVESTMENT INCOME....................................... 984,199 2,210,886 792,601 730,707
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments sold................... (17) (206,875) (140,897) (8,117)
Net change in unrealized depreciation on investments.... (1,287,672) (2,629,404) (1,365,876) (1,190,711)
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS............. (1,287,689) (2,836,279) (1,506,773) (1,198,828)
----------- ----------- ----------- -----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ (303,490) $ (625,393) $ (714,172) $ (468,121)
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements. 24
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
PERIOD ENDED SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW
HAMPSHIRE INVESTORS PAYSON PAYSON
BOND GROWTH BALANCED VALUE
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income......................................... $ 377,220 $ 15,137 $ 217,632 $ 12,525
Dividend income......................................... -- 212,051 151,732 159,108
--------- ----------- ----------- -----------
Total Investment Income..................................... 377,220 227,188 369,364 171,633
--------- ----------- ----------- -----------
EXPENSES
Investment advisory (Note 3)............................ 30,327 90,083 70,854 79,082
Management (Note 3)..................................... 15,163 27,718 23,618 19,771
Transfer agency (Note 3)................................ 26,916 40,713 38,683 34,271
Custody................................................. 2,819 3,779 4,655 3,240
Accounting (Note 3)..................................... 18,000 18,000 18,000 18,000
Audit................................................... 8,361 8,630 7,552 7,552
Legal................................................... 4,163 2,814 2,447 2,046
Trustees................................................ 731 1,402 1,145 944
Amortization of organization costs (Note 2)............. -- 1,518 -- --
Miscellaneous........................................... 12,620 8,419 11,594 9,048
--------- ----------- ----------- -----------
Total Expenses.............................................. 119,100 203,076 178,548 173,954
Fees waived (Note 4).................................... (73,474) (50,267) (42,385) (30,366)
--------- ----------- ----------- -----------
Net Expenses................................................ 45,626 152,809 136,163 143,588
--------- ----------- ----------- -----------
NET INVESTMENT INCOME....................................... 331,594 74,379 233,201 28,045
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments sold............ (1,595) 160,313 909,895 355,544
Net change in unrealized depreciation on investments.... (565,940) (1,865,375) (1,271,178) (39,786)
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (567,535) (1,705,062) (361,283) 315,758
--------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $(235,941) $(1,630,683) $ (128,082) $ 343,803
========= =========== =========== ===========
</TABLE>
See Notes to Financial Statements. 25
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999 AND THE
PERIOD ENDED SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTORS INVESTORS TAXSAVER
HIGH GRADE BOND BOND
BOND FUND FUND FUND
------------------------- -------------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1998.................... $34,036,897 $ 85,598,031 $39,203,307
- ---------------------------------------------- ----------- ------------ -----------
OPERATIONS
Net investment income....................... 1,994,678 5,188,728 1,766,191
Net realized gain on investments sold....... 435,100 432,794 344,151
Net change in unrealized depreciation on
investments................................ (355,589) (1,925,913) (212,501)
----------- ------------ -----------
Net increase in net assets resulting from
operations.................................. 2,074,189 3,695,609 1,897,841
----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income....................... (1,994,678) (5,188,728) (1,766,191)
Net realized gain on investments............ (241,976) (345,772) (670,152)
----------- ------------ -----------
Total distributions to shareholders........... (2,236,654) (5,534,500) (2,436,343)
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares.............................. 4,773,805 474,584 10,233,451 968,455 6,929,842 643,641
Reinvestment of distributions............... 7,098 705 1,009,827 95,802 955,881 88,946
Redemption of shares........................ (2,901,626) (288,074) (24,556,881) (2,334,616) (9,103,349) (847,842)
----------- --------- ------------ ---------- ----------- ---------
Net increase (decrease) in capital share
transactions................................ 1,879,277 187,215 (13,313,603) (1,270,359) (1,217,626) (115,255)
----------- ========= ------------ ========== ----------- =========
Net increase (decrease) in net assets......... 1,716,812 (15,152,494) (1,756,128)
----------- ------------ -----------
NET ASSETS--MARCH 31, 1999
- ----------------------------------------------
(Including line (a))........................ 35,753,709 70,445,537 37,447,179
----------- ------------ -----------
OPERATIONS
Net investment income....................... 984,199 2,210,886 792,601
Net realized loss on investments sold....... (17) (206,875) (140,897)
Net change in unrealized depreciation on
investments................................ (1,287,672) (2,629,404) (1,365,876)
----------- ------------ -----------
Net decrease in net assets resulting from
operations.................................. (303,490) (625,393) (714,172)
----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income....................... (984,199) (2,210,886) (792,601)
----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares.............................. 1,363,889 140,884 4,720,049 483,348 1,880,694 181,650
Reinvestment of distributions............... 10,297 1,067 334,206 33,372 234,730 22,680
Redemption of shares........................ (1,322,302) (137,159) (10,068,904) (1,009,052) (5,335,853) (512,032)
----------- --------- ------------ ---------- ----------- ---------
Net increase (decrease) in capital share
transactions................................ 51,884 4,792 (5,014,649) (492,332) (3,220,429) (307,702)
----------- ========= ------------ ========== ----------- =========
Net decrease in net assets.................... (1,235,805) (7,850,928) (4,727,202)
----------- ------------ -----------
NET ASSETS--SEPTEMBER 30, 1999
- ----------------------------------------------
(Including line (b))........................ $34,517,904 $ 62,594,609 $32,719,977
=========== ============ ===========
(a) Accumulated undistributed net investment
income, March 31, 1999.................. $ -- $ -- $ 8,267
=========== ============ ===========
(b) Accumulated undistributed net investment
income, September 30, 1999.............. $ -- $ -- $ 8,267
=========== ============ ===========
</TABLE>
See Notes to Financial Statements. 26
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 1999 AND THE
PERIOD ENDED SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE NEW
MUNICIPAL HAMPSHIRE INVESTORS
BOND BOND GROWTH
FUND FUND FUND
------------------------ ------------------------ ------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1998....................... $ 28,196,053 $ 12,907,927 $ 33,898,938
- ------------------------------------------------- ------------ ------------ ------------
OPERATIONS
Net investment income.......................... 1,324,765 609,591 162,580
Net realized gain on investments sold.......... 131,277 66,571 2,117,054
Net change in unrealized appreciation
(depreciation) on investments................. 43,413 78,878 (611,134)
------------ ------------ ------------
Net increase in net assets resulting from
operations..................................... 1,499,455 755,040 1,668,500
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income.......................... (1,324,765) (609,591) (250,935)
Net realized gain on investments............... (139,593) (80,795) (958,130)
------------ ------------ ------------
Total distributions to shareholders.............. (1,464,358) (690,386) (1,209,065)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares................................. 8,330,979 749,695 3,245,202 299,466 3,186,657 288,754
Reinvestment of distributions.................. 1,110,210 99,752 655,830 60,443 957,833 90,618
Redemption of shares........................... (5,013,093) (451,679) (1,646,399) (151,894) (9,396,270) (857,993)
------------ -------- ------------ -------- ------------ --------
Net increase (decrease) in capital
transactions................................... 4,428,096 397,768 2,254,633 208,015 (5,251,780) (478,621)
------------ ======== ------------ ======== ------------ ========
Net increase (decrease) in net assets............ 4,463,193 2,319,287 (4,792,345)
------------ ------------ ------------
NET ASSETS--MARCH 31, 1999
- -------------------------------------------------
(Including line (a))........................... 32,659,246 15,227,214 29,106,593
------------ ------------ ------------
OPERATIONS
Net investment income.......................... 730,707 331,594 74,379
Net realized gain (loss) on investments sold... (8,117) (1,595) 160,313
Net change in unrealized depreciation on
investments................................... (1,190,711) (565,940) (1,865,375)
------------ ------------ ------------
Net decrease in net assets resulting from
operations..................................... (468,121) (235,941) (1,630,683)
------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income.......................... (730,707) (331,594) (74,557)
------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares................................. 4,084,864 373,090 1,118,001 105,625 67,408 5,796
Reinvestment of distributions.................. 368,069 33,867 240,415 22,802 61 5
Redemption of shares........................... (3,456,577) (317,619) (889,223) (84,006) (3,177,363) (274,052)
------------ -------- ------------ -------- ------------ --------
Net increase (decrease) in capital share
transactions................................... 996,356 89,338 469,193 44,421 (3,109,894) (268,251)
------------ ======== ------------ ======== ------------ ========
Net decrease in net assets....................... (202,472) (98,342) (4,815,134)
------------ ------------ ------------
NET ASSETS--SEPTEMBER 30, 1999
- -------------------------------------------------
(Including line (b))........................... $ 32,456,774 $ 15,128,872 $ 24,291,459
============ ============ ============
(a) Accumulated undistributed net investment
income, March 31, 1999..................... $ -- $ 489 $ 107
============ ============ ============
(b) Accumulated undistributed (distribution in
excess of) net investment income, September
30, 1999................................... $ -- $ 489 $ (71)
============ ============ ============
</TABLE>
See Notes to Financial Statements. 27
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 1999 AND THE
PERIOD ENDED SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAYSON PAYSON
BALANCED VALUE
FUND FUND
----------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1998 $24,439,835 $19,918,357
- ------------------------------------------------------------ ----------- -----------
OPERATIONS
Net investment income..................................... 483,773 64,364
Net realized gain on investments sold..................... 518,177 781,466
Net change in unrealized depreciation on investments...... (2,942,947) (1,860,529)
----------- -----------
Net decrease in net assets resulting from operations........ (1,940,997) (1,014,699)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (479,543) (48,604)
Net realized gain on investments.......................... (1,489,464) (1,152,328)
----------- -----------
Total distributions to shareholders......................... (1,969,007) (1,200,932)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 4,382,937 336,775 3,053,741 155,011
Reinvestment of distributions............................. 1,354,224 109,002 721,359 40,271
Redemption of shares...................................... (3,077,919) (241,118) (3,224,470) (168,743)
----------- -------- ----------- --------
Net increase in capital share transactions.................. 2,659,242 204,659 550,630 26,539
----------- ======== ----------- ========
Net decrease in net assets.................................. (1,250,762) (1,665,001)
----------- -----------
NET ASSETS--MARCH 31, 1999
- ------------------------------------------------------------
(Including line (a))...................................... 23,189,073 18,253,356
----------- -----------
OPERATIONS
Net investment income..................................... 233,201 28,045
Net realized gain on investments sold..................... 909,895 355,544
Net change in unrealized depreciation on investments...... (1,271,178) (39,786)
----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................ (128,082) 343,803
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (233,325) (28,078)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 393,639 30,212 977,782 47,397
Reinvestment of distributions............................. 155,393 12,188 16,972 815
Redemption of shares...................................... (1,987,000) (151,684) (914,383) (43,992)
----------- -------- ----------- --------
Net increase (decrease) in capital share transactions....... (1,437,968) (109,284) 80,371 4,220
----------- ======== ----------- ========
Net increase (decrease) in net assets....................... (1,799,375) 396,096
----------- -----------
NET ASSETS--SEPTEMBER 30, 1999
- ------------------------------------------------------------
(Including line (b))...................................... $21,389,698 $18,649,452
=========== ===========
(a) Accumulated undistributed (distributions in excess of)
net investment income, March 31, 1999................. $ -- $ --
=========== ===========
(b) Accumulated distributions in excess of net investment
income, September 30, 1999............................ $ (124) $ (33)
=========== ===========
</TABLE>
See Notes to Financial Statements. 28
FORUM FUNDS-Registered Trademark-
<PAGE>
(This page intentionally left blank)
29 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
Selected per share data and ratios for a share outstanding throughout each
period.
<TABLE>
<CAPTION>
NET REALIZED ENDING
BEGINNING AND DIVIDENDS DISTRIBUTIONS NET
NET ASSET NET UNREALIZED FROM NET FROM NET ASSET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
INVESTORS HIGH GRADE BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ $ 9.92 $0.27 $(0.35) $(0.27) $ -- $ 9.57
April 1, 1998 to March 31,
1999............................ 9.96 0.57 0.03 (0.57) (0.07) 9.92
March 16, 1998(a) to March 31,
1998............................ 10.00 0.02 (0.04) (0.02) -- 9.96
INVESTORS BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 10.32 0.34 (0.44) (0.34) -- 9.88
April 1, 1998 to March 31,
1999............................ 10.57 0.67 (0.21) (0.67) (0.04) 10.32
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
TAXSAVER BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 10.61 0.24 (0.46) (0.24) -- 10.15
April 1, 1998 to March 31,
1999............................ 10.75 0.48 0.04 (0.48) (0.18) 10.61
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
MAINE MUNICIPAL BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 11.07 0.24 (0.39) (0.24) -- 10.68
April 1, 1998 to March 31,
1999............................ 11.05 0.49 0.07 (0.49) (0.05) 11.07
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
(a) Commencement of operations.
(b) Total return calculations do not include sales charges.
(c) Annualized.
(d) The ratio of Gross Expenses to Average Net Assets reflects the expense ratio excluding any waivers and/or reimbursements
(Note 4).
</TABLE>
See Notes to Financial Statements. 30
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET ASSETS AT ---------------------------------------------- PORTFOLIO
TOTAL END OF PERIOD NET INVESTMENT NET GROSS TURNOVER
RETURN(B) (000'S OMITTED) INCOME EXPENSES EXPENSES(D) RATE
--------- --------------- ------ -------- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................. (0.79%) $ 34,518 5.58%(c) 0.70%(c) 1.13%(c) 3%
April 1, 1998 to March 31,
1999...................... 6.12% 35,754 5.68% 0.70% 1.12% 173%
March 16, 1998(a) to March
31, 1998.................. (0.16%) 34,037 5.56%(c) 0.70%(c) 3.00%(c) 0%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................. (0.99%) 62,595 6.69%(c) 0.70%(c) 1.04%(c) 23%
April 1, 1998 to March 31,
1999...................... 4.45% 70,446 6.33% 0.70% 1.02% 98%
April 1, 1997 to March 31,
1998...................... 10.98% 85,598 6.52% 0.70% 1.22% 117%
April 1, 1996 to March 31,
1997...................... 7.18% 22,190 6.94% 0.70% 1.45% 79%
April 1, 1995 to March 31,
1996...................... 9.84% 25,676 7.29% 0.43% 1.36% 43%
April 1, 1994 to March 31,
1995...................... 4.55% 25,890 8.19% 0.75% 1.33% 48%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................. (2.11%) 32,720 4.57%(c) 0.60%(c) 1.15%(c) 10%
April 1, 1998 to March 31,
1999...................... 4.95% 37,447 4.48% 0.60% 1.11% 62%
April 1, 1997 to March 31,
1998...................... 7.75% 39,203 4.95% 0.60% 1.36% 93%
April 1, 1996 to March 31,
1997...................... 5.15% 17,757 5.28% 0.60% 1.53% 34%
April 1, 1995 to March 31,
1996...................... 7.36% 17,915 5.35% 0.60% 1.48% 62%
April 1, 1994 to March 31,
1995...................... 6.18% 16,018 5.62% 0.60% 1.45% 64%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................. (1.37%) 32,457 4.40%(c) 0.60%(c) 1.32%(c) 7%
April 1, 1998 to March 31,
1999...................... 5.19% 32,659 4.42% 0.60% 1.32% 29%
April 1, 1997 to March 31,
1998...................... 7.94% 28,196 4.65% 0.60% 1.48% 16%
April 1, 1996 to March 31,
1997...................... 4.98% 25,827 4.77% 0.60% 1.56% 21%
April 1, 1995 to March 31,
1996...................... 7.34% 26,044 4.73% 0.60% 1.48% 34%
April 1, 1994 to March 31,
1995...................... 6.31% 25,525 5.08% 0.50% 1.40% 32%
</TABLE>
See Notes to Financial Statements. 31
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
Selected per share data and ratios for a share outstanding throughout each
period.
<TABLE>
<CAPTION>
NET REALIZED ENDING
BEGINNING AND DIVIDENDS DISTRIBUTIONS NET
NET ASSET NET UNREALIZED FROM NET FROM NET ASSET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE INCOME INVESTMENTS INCOME GAINS SHARE
----- ------ ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
NEW HAMPSHIRE BOND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ $10.80 $0.23 $(0.40) $(0.23) $ -- $10.40
April 1, 1998 to March 31,
1999............................ 10.73 0.46 0.13 (0.46) (0.06) 10.80
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
INVESTORS GROWTH FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 11.60 0.03 (0.76) (0.03) -- 10.84
April 1, 1998 to March 31,
1999............................ 11.35 0.06 0.61 (0.09) (0.33) 11.60
December 12, 1997(a) to March 31,
1998............................ 10.00 0.03 1.32 -- -- 11.35
PAYSON BALANCED FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 12.48 0.13 (0.24) (0.13) -- 12.24
April 1, 1998 to March 31,
1999............................ 14.79 0.28 (1.51) (0.28) (0.80) 12.48
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
PAYSON VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September 30,
1999............................ 19.30 0.03 0.34 (0.03) -- 19.64
April 1, 1998 to March 31,
1999............................ 21.67 0.07 (1.16) (0.07) (1.21) 19.30
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
(a) Commencement of operations.
(b) Total return calculations do not include sales charges.
(c) Annualized.
(d) The ratio of Gross Expenses to Average Net Assets reflects the expense ratio excluding any waivers and/or reimbursements
(Note 4).
</TABLE>
See Notes to Financial Statements. 32
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
NET ASSETS AT ---------------------------------------------- PORTFOLIO
TOTAL END OF PERIOD NET INVESTMENT NET GROSS TURNOVER
RETURN(B) (000'S OMITTED) INCOME EXPENSES EXPENSES(D) RATE
--------- --------------- ------ -------- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................... (1.57%) $ 15,129 4.36%(c) 0.60%(c) 1.57%(c) 15%
April 1, 1998 to March 31,
1999........................ 5.61% 15,227 4.28% 0.60% 1.53% 42%
April 1, 1997 to March 31,
1998........................ 8.84% 12,908 4.45% 0.60% 1.81% 23%
April 1, 1996 to March 31,
1997........................ 4.56% 8,691 4.65% 0.60% 2.22% 53%
April 1, 1995 to March 31,
1996........................ 7.36% 6,903 4.65% 0.60% 2.26% 34%
April 1, 1994 to March 31,
1995........................ 6.32% 5,276 4.95% 0.46% 2.19% 38%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................... (6.30%) 24,291 0.54%(c) 1.10%(c) 1.46%(c) 0%
April 1, 1998 to March 31,
1999........................ 6.25% 29,107 0.51% 1.10% 1.44% 27%
December 12, 1997(a) to
March 31, 1998.............. 13.50% 33,899 0.96%(c) 1.10%(c) 1.56%(c) 0%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................... (0.91%) 21,390 1.97%(c) 1.15%(c) 1.51%(c) 52%
April 1, 1998 to March 31,
1999........................ (8.20%) 23,189 2.07% 1.15% 1.49% 100%
April 1, 1997 to March 31,
1998........................ 31.27% 24,440 2.58% 1.15% 1.57% 66%
April 1, 1996 to March 31,
1997........................ 9.42% 18,163 3.07% 1.15% 1.67% 53%
April 1, 1995 to March 31,
1996........................ 21.70% 17,455 3.25% 1.15% 1.70% 62%
April 1, 1994 to March 31,
1995........................ 6.00% 13,872 3.91% 1.15% 1.72% 50%
- ----------------------------------------------------------------------------------------------------------------------------
April 1, 1999 to September
30, 1999.................... 1.91% 18,649 0.28%(c) 1.45%(c) 1.75%(c) 14%
April 1, 1998 to March 31,
1999........................ (4.57%) 18,253 0.35% 1.45% 1.75% 41%
April 1, 1997 to March 31,
1998........................ 45.28% 19,918 0.62% 1.45% 1.87% 39%
April 1, 1996 to March 31,
1997........................ 13.01% 13,109 1.30% 1.45% 2.07% 24%
April 1, 1995 to March 31,
1996........................ 27.77% 10,319 1.47% 1.45% 2.16% 53%
April 1, 1994 to March 31,
1995........................ 6.52% 7,960 1.59% 1.46% 2.25% 27%
</TABLE>
See Notes to Financial Statements. 33
FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Forum Funds-Registered Trademark- (the "Trust") is a Delaware business trust
that is registered as an open-end, management investment company under the
Investment Company Act of 1940, as amended ( the "Act"). The Trust currently has
nineteen active investment portfolios. Included in this report are 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
and Payson Value Fund (individually, a "Fund" and, collectively, the "Funds").
Each of Investors High Grade Bond Fund, Investors Growth Fund, Payson Balanced
Fund and Payson Value Fund is a diversified series of the trust. All other funds
included in the report are non-diversified. Under its Trust Instrument, the
Trust is authorized to issue an unlimited number of each Fund's shares of
beneficial interest without par value. Each Fund commenced operations on the
dates indicated 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, the
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 amounts could differ from those
estimates. The following summarizes the significant accounting policies of the
Funds:
SECURITY VALUATION-On each Fund business day, the Trust determines the net asset
value per share of the Fund as of the close of regular trading day on the New
York Stock Exchange. Securities, other than short-term securities, held by a
Fund, and for which market quotations are readily available, are valued using
the last reported sales price provided by independent pricing services. If no
sales price is reported, the mean of the last bid and ask price is used. In the
absence of readily available market quotations, securities are valued at fair
value as determined by the Trust's Board of Trustees. Securities that mature in
sixty days or less are valued at amortized cost.
SECURITIES TRANSACTIONS, INTEREST INCOME AND REALIZED GAIN AND LOSS-Investment
transactions are accounted for on trade date. Dividend income is recorded on the
ex-dividend date. Interest income is recorded as earned. Identified cost of
investments sold is used to determine gain and loss for both financial statement
and federal income tax purposes.
34 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
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. In the event of
default, a Fund may have difficulties disposing of such securities.
DISTRIBUTIONS TO SHAREHOLDERS-Distributions to shareholders of net investment
income are declared daily and paid monthly by all Funds except Payson Balanced
Fund and Payson Value Fund, for which dividends are declared and paid quarterly
and Investors Growth Fund, for which dividends are declared and paid annually.
Net capital gains, if any, are declared and paid to shareholders at least
annually. Distributions are based on amounts calculated in accordance with
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. These differences are due primarily to differing
treatments of income and gain on various investment securities held by each
Fund, timing differences and differing characterizations of distributions made
by the Fund.
ORGANIZATION COSTS-Costs incurred by Investors High Grade Bond Fund and
Investors Growth Fund in connection with their organization are amortized using
the straight-line method over a five year period.
FEDERAL TAXES-Each Fund intends to qualify each year as a regulated investment
company and distribute all its taxable income. In addition, by distributing in
each calendar year substantially all its net investment income, capital gains
and certain other amounts, if any, each Fund will not be subject to 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 of its funds. Expenses that are directly attributable to
more than one fund are allocated among the respective funds in proportion to
each fund's average daily net assets.
NOTE 3. ADVISORY FEES, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS-The investment adviser for each of 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 from each of
Investors High Grade Bond Fund, Investors Bond Fund, TaxSaver Bond Fund, Maine
Municipal Bond Fund and New Hampshire Bond Fund at an annual rate of 0.40% of
each Fund's average daily net assets 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 each Fund is Forum Administrative Services,
LLC ("FAdS"). For its services, FAdS receives an administrative fee at an annual
rate of 0.20% of the average daily net assets of each Fund.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT-The transfer agent and dividend
disbursing agent for each Fund is Forum Shareholder Services, LLC ("FSS"). FSS
receives from each fund an annual fee of $12,000, 0.25% of the average daily net
assets of the Fund, plus certain shareholder account fees.
35 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
DISTRIBUTOR-Forum Fund Services, LLC ("FFS"), a registered broker-dealer and a
member of the National Association of Securities Dealers, Inc., is the
distributor of each Fund's shares. FFS receives and may reallow to certain
institutions the sales charge paid on purchases of the Funds' shares. Prior to
August 1, 1999, Forum Financial Services, Inc. provided distribution services to
each Fund for the same compensation as FFS.
For the period ended September 30, 1999, FFS reallowed $8,002, $655 and $9 in
commissions to certain financial institutions regarding purchases of Maine
Municipal Bond Fund, New Hampshire Bond Fund and Payson Balanced Fund,
respectively. FFS retained net commissions of $145, $3,008, $3,512, $1 and $64
from purchases of TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire
Bond Fund, Payson Balanced Fund and Payson Value Fund, respectively.
OTHER SERVICE PROVIDERS-Forum Accounting Services, LLC ("FAcS") provides fund
accounting services to each Fund. For its services FAcS receives an annual fee
of $36,000 per Fund, plus certain amounts based upon the asset level of a Fund,
as well as the number and types of portfolio transactions made by a Fund.
NOTE 4. WAIVER OF FEES
Certain service providers of each Fund have voluntarily undertaken to waive a
portion of their fees so that total expenses of each Fund would not exceed
certain limitations. Fee waivers may be reduced or eliminated at any time. For
the period ended September 30, 1999, fees waived were as follows:
<TABLE>
<CAPTION>
TOTAL FEES
FEES WAIVED WAIVED
---------------------------------------------------- ----------
FORUM
ADVISORS PAYSON FSS FACS FADS
-------- ------ --- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Investors High Grade Bond Fund......... $ -- $ -- $39,778 $ -- $35,186 $ 74,964
Investors Bond Fund.................... -- -- 47,562 -- 65,939 113,501
TaxSaver Bond Fund..................... 18,509 -- 42,853 -- 34,577 95,939
Maine Municipal Bond Fund.............. 9,733 -- 52,735 24,000 33,146 119,614
New Hampshire Bond Fund................ 13,996 -- 26,315 18,000 15,163 73,474
Investors Growth Fund.................. -- -- 22,549 -- 27,718 50,267
Payson Balanced Fund................... -- 21,919 -- -- 20,466 42,385
Payson Value Fund...................... -- 17,854 -- -- 12,512 30,366
</TABLE>
36 FORUM FUNDS-Registered Trademark-
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
NOTE 5. SECURITY TRANSACTIONS
The cost of purchases and proceeds from sales of investment securities
(including maturities), other than short-term investments, for the period ended
September 30, 1999, were as follows:
<TABLE>
<CAPTION>
COST OF GOV'T PROCEEDS OF
COST OF PROCEEDS FROM SALES OBLIGATIONS GOV'T
PURCHASES AND MATURITIES PURCHASES SALES
--------------- ------------------- ------------- -----------
<S> <C> <C> <C> <C>
Investors High Grade Bond
Fund....................... $ 533,455 $ 1,350,000 $ -- $ --
Investors Bond Fund......... 7,862,137 10,091,857 -- 2,902,500
TaxSaver Bond Fund.......... 1,858,799 5,807,569 -- --
Maine Municipal Bond Fund... 2,157,790 1,163,226 -- --
New Hampshire Bond Fund..... 1,443,523 1,187,174 -- --
Investors Growth Fund....... -- 3,061,409 -- --
Payson Balanced Fund........ 6,411,785 6,865,661 290,019 1,007,497
Payson Value Fund........... 1,575,390 1,439,674 -- --
</TABLE>
For federal income tax purposes, the tax basis of investment securities owned as
of September 30, 1999, was 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 was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
-------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Investors High Grade Bond Fund...... $35,697,111 $ 154,398 $1,302,072 $(1,147,674)
Investors Bond Fund................. 65,323,139 355,116 3,438,151 (3,083,035)
TaxSaver Bond Fund.................. 32,632,605 455,503 833,131 (377,628)
Maine Municipal Bond Fund........... 31,900,646 554,903 538,302 16,601
New Hampshire Bond Fund............. 14,953,233 145,151 243,265 (98,114)
Investors Growth Fund............... 9,468,288 15,320,069 489,390 14,830,679
Payson Balanced Fund................ 22,371,156 1,668,843 2,684,861 (1,016,018)
Payson Value Fund................... 13,705,574 6,062,050 1,171,738 4,890,312
</TABLE>
NOTE 6. CONCENTRATION OF RISK
The Maine Municipal Bond Fund and New Hampshire Bond Fund invest substantially
all 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.
37 FORUM FUNDS-Registered Trademark-
<PAGE>
(This page intentionally left blank)
38 FORUM FUNDS-Registered Trademark-
<PAGE>
FOR MORE INFORMATION
TRANSFER AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
DISTRIBUTOR
Forum Fund Services, LLC
Two Portland Square
Portland, ME 04101
This report is authorized for distribution only to
shareholders and to others who have received a copy
of the Funds' prospectus.
FORUM
FUNDS
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
[logo]
Forum Funds
P.O. Box 446
Portland, Maine 04112
800-94FORUM (Shareholder Services)
800-95FORUM (Dealer Services)
207-879-0001
www.forumfunds.com
