[Logo]
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PROSPECTUS
JUNE 15, 1999
(AS AMENDED MARCH 1, 2000)
BIA SMALL-CAP GROWTH FUND
BIA GROWTH EQUITY FUND
EACH FUND SEEKS CAPITAL APPRECIATION BY INVESTING PRIMARILY IN COMMON
STOCK. YOU MAY PURCHASE FUND SHARES WITHOUT A SALES CHARGE AND
THE FUNDS DO NOT INCUR RULE 12B-1 (DISTRIBUTION) FEES.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED EITHER FUND'S SHARES OR DETERMINED WHETHER THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
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[Logo] TABLE OF CONTENTS
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RISK/RETURN SUMMARY 2
FEE TABLES 5
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS 7
MANAGEMENT 12
YOUR ACCOUNT 15
HOW TO CONTACT THE FUNDS 15
GENERAL INFORMATION 15
BUYING SHARES 16
SELLING SHARES 19
EXCHANGE PRIVILEGES 22
RETIREMENT ACCOUNTS 23
OTHER INFORMATION 24
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RISK/RETURN SUMMARY [Logo]
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BIA SMALL-CAP GROWTH FUND
INVESTMENT OBJECTIVE Capital appreciation
PRINCIPAL INVESTMENT STRATEGY The Fund invests primarily in the common stock of
small domestic growth companies. Growth companies are companies that have
exhibited an above average increase in earnings over the past few years and that
have strong, sustainable earnings prospects and attractive stock prices. The
Fund primarily invests in small companies whose market capitalization is between
$25 million and $1 billion at the time of investment.
BIA GROWTH EQUITY FUND
INVESTMENT OBJECTIVE Capital appreciation
PRINCIPAL INVESTMENT STRATEGY The Fund invests primarily in the common stock of
large domestic companies that have exhibited an above average increase in
earnings over the past few years and that have strong, sustainable earnings
prospects and attractive stock prices. The Fund may also invest in companies
that do not have particularly strong earnings histories but do have other
attributes that may contribute to accelerated growth in the forseeable future.
The Fund primarily invests in large companies whose market capitalization is
$2.5 billion or greater at the time of investment.
[Margin Callout]
Concepts to Understand
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COMMON STOCK
means an equity or ownership interest in a company
MARKET CAPITALIZATION
of a company means the value of the company's common
stock in the stock market
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PRINCIPAL RISKS OF INVESTING IN THE FUNDS
GENERAL RISKS You could lose money on your investment in a Fund, or the Fund
could under perform other investments, if any of the following occur:
o The stock market does not recognize the growth potential of the stocks
in the Fund's portfolio
o Brown Investment Advisory & Trust Company's (the "Adviser") judgment
as to the growth potential of a stock proves to be wrong
o The stock market goes down
RISKS OF SMALL COMPANIES Because investing in small companies can have more risk
than investing in larger, more established companies, an investment in BIA
Small-Cap Growth Fund may have the following additional risks:
o Analysts and other investors typically follow these companies less
actively and therefore information about these companies is not always
readily available
o Securities of many small companies are traded in the over-the-counter
markets or on a regional securities exchange potentially making them
thinly traded, less liquid and their prices more volatile than the
prices of the securities of larger companies
o Changes in the value of small company stocks may not mirror the
fluctuation of the general market
o More limited product lines, markets and financial resources make these
companies more susceptible to economic or market setbacks
For these and other reasons, the prices of small capitalization securities can
fluctuate more significantly than the securities of larger companies. The
smaller the company, the greater effect these risks may have on that company's
operations and performance. As a result, an investment in BIA Small-Cap Growth
Fund may exhibit a higher degree of volatility than the general domestic
securities market.
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WHO MAY WANT TO INVEST IN THE FUNDS
A Fund may be appropriate for you if you:
o Are willing to tolerate significant changes in the value of your
investment
o Are pursuing a long-term goal
o Are willing to accept higher short-term risk
A Fund may NOT be appropriate for you if you:
o Want an investment that pursues market trends or focuses only on
particular sectors or industries
o Need regular income or stability of principal
o Are pursuing a short-term goal or investing emergency reserves
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[Logo] FEE TABLES
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The following tables describe the various fees and expenses that you will bear
if you invest in a Fund.
Shareholder fees are charges you pay when buying, selling or exchanging shares
of a Fund. Operating expenses, which include fees of the Adviser, are paid out
of a Fund's assets and are factored into the Fund's share price rather than
charged directly to shareholder accounts.
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SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
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Maximum Sales Charge (Load) Imposed on Purchases None
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Maximum Sales Charge (Load) Imposed on Reinvested Distributions None
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Maximum Deferred Sales Charge (Load) None
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Redemption Fee None
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Exchange Fee None
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ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
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BIA SMALL-CAP GROWTH FUND
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Management Fees 1.00%
Distribution (12b-1) Fees None
Other Expenses (1) 0.65%
TOTAL ANNUAL FUND OPERATING EXPENSES (2) 1.65%
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BIA GROWTH EQUITY FUND
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Management Fees 0.75%
Distribution (12b-1) Fees None
Other Expenses (1) 0.85%
TOTAL ANNUAL FUND OPERATING EXPENSES (2) 1.60%
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(1) Based on estimated amounts for the current fiscal year ending May 31, 2000.
(2) The Adviser has voluntarily undertaken to waive a portion of its fees and
assume certain expenses to the extent that total annual fund expenses
exceed 1.25% of the net assets of BIA Small-Cap Growth Fund and 1.00% of
the net assets of BIA Growth Equity Fund.
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EXAMPLE
The following is a hypothetical example intended to help you compare the cost of
investing in each Fund to the cost of investing in other mutual funds. This
example assumes that you invest $10,000 in a Fund and then redeem all of your
shares at the end of the period. The example also assumes that your investment
has a 5% annual return, that a Fund's operating expenses remain the same as
stated in the table aboveand that distributions are reinvested. Although your
actual costs may be higher or lower, under these assumptions your costs would
be:
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BIA SMALL-CAP BIA GROWTH
GROWTH FUND EQUITY FUND
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After 1 year $168 $163
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After 3 years $520 $505
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INVESTMENT OBJECTIVES,
[Logo] STRATEGIES AND RISKS
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INVESTMENT OBJECTIVES
BIA SMALL-CAP GROWTH FUND seeks to achieve capital appreciation by primarily
investing in equity securities.
BIA GROWTH EQUITY FUND seeks to achieve capital appreciation by primarily
investing in equity securities.
INVESTMENT STRATEGIES
The Adviser relies on selecting individual stocks and does not try to predict
when the stock market might rise or fall. The Adviser uses in-house research and
other sources to conduct analyses of prospective Fund investments. As part of
this analysis, the Adviser may visit prospective companies, their suppliers and
customers.
THE ADVISER'S PROCESSES -- PURCHASING PORTFOLIO SECURITIES
BIA SMALL-CAP GROWTH FUND The Adviser starts by identifying a universe of small
companies. From these companies, the Adviser selects those with a minimum annual
growth rate of 20% and a market capitalization of $25 million to $1 billion. The
Adviser then performs a fundamental analysis of these companies. The Adviser
uses these data to identify companies that have:
o Significant business opportunities relative to their operating history
and size
o Proprietary products, services or distribution systems
o Management plans that are easy to understand and to monitor
o Attractively priced stocks compared to their growth potential
The Adviser plans to invest in these companies early in their life cycle and to
hold the investments for the long-term if they continue to satisfy the Fund's
investment criteria.
[Margin Callout]
Concept to Understand
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FUNDAMENTAL ANALYSIS
means the analysis of a company's financial
condition to help forecast the
future value of its stock price. This analysis
includes a review of a company's
balance sheet and income statement, asset
history, earnings history, product or
service development and management productivity
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[Margin Callout]
Concepts to Understand
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PRICE/EARNINGS RATIO
means the price of a stock divided
by the company's earnings per share
PRICE/SALES RATIO
means the amount an investor
is willing to pay for a dollar of
revenue
PRICE/CASH FLOW
means the price of a
stock divided by free cash flow per share
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BIA GROWTH EQUITY FUND The Adviser starts by using in-house research and other
sources to identify a universe of superior companies across a range of
industries. Superior companies are businesses that have:
o Significant market opportunities (both in terms of magnitude and
duration) where the companies are leaders or potential leaders in
their respective markets
o Proprietary products and services, new product development and product
cycle leadership that sustains a strong brand franchise
o A strong management team that is proactive, consistently executes
effectively and anticipates and adapts to change
The Adviser then focuses on those companies that have the ability to grow at
above average rates over several years, given the Adviser's belief that superior
investment returns are better achieved by low portfolio turnover. Factors
considered include:
o Product cycles, pricing flexibility and product or geographic mix
o Cash flow and financial strength to fund growth
o Catalysts for growth such as changes in regulation, management,
business cycle, business mix and industry consolidation
The Adviser then uses a range of valuation techniques including analyses of
price/earnings ratios, price/sales ratios and price/cash flow to identify those
companies whose stocks are attractively valued relative to the market, their
peer groups and their own price history. Valuation techniques also permit the
Adviser to mitigate the potential downside risk of an investment candidate by
demonstrating the difference in the estimated value of a company's stock
compared to its market price.
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THE ADVISER'S PROCESSES -- SELLING PORTFOLIO SECURITIES
The Adviser monitors the companies in a Fund's portfolio to determine if there
have been any fundamental changes in the companies. The Adviser may sell a stock
if:
o It subsequently fails to meet the Adviser's initial investment
criteria
o A more attractively priced company is found or if funds are needed for
other purposes
o It becomes overvalued relative to the long-term expectation for the
stock price
INVESTMENT POLICIES
Under normal conditions, BIA Small-Cap Growth Fund will primarily invest all (at
least 65%) of its total assets in common stock of small domestic companies and
BIA Growth Equity Fund will primarily invest all (at least 65%) of its total
assets in common stock of larger domestic companies. Although common stock often
gives the owner the right to vote on measures affecting the company's
organization and operations, neither Fund intends to exercise control over the
management of companies in which it invests. Common stocks have a history of
long-term growth in value, but their prices tend to fluctuate over the shorter
term.
TEMPORARY DEFENSIVE POSITION In order to respond to adverse market, economic,
political or other conditions, a Fund may assume a temporary defensive position
and invest in prime commercial paper and other money market instruments. The
result of this action may be that a Fund will be unable to achieve its
investment objective.
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INVESTMENT RISKS
GENERALLY The value of a Fund's investments will fluctuate as the stock market
fluctuates. An investment in a Fund is not by itself a complete or balanced
investment program and there is no guarantee the Fund will achieve its
investment objective. Nevertheless, investing in equity securities with
different capitalizations may be important for investors seeking a diversified
portfolio, particularly for long-term investors able to tolerate short-term
fluctuations in the value of their investments.
Because each Fund invests in growth stocks, there is a risk that the stocks will
not continue to grow at expected rates, thus causing the price of the stock to
decline. There is also the risk that the market will not recognize the growth
potential of a stock. The Adviser's judgment as to the growth potential of a
stock may also prove to be wrong. A decline in investor demand for growth stocks
may also adversely affect the value of these securities.
SPECIFIC RISKS OF SMALL COMPANIES Because investing in small companies can have
more risk than investing in larger, more established companies, an investment in
BIA Small-Cap Growth Fund may have the following additional risks:
o Analysts and other investors typically follow these companies less
actively and information about these companies is not always readily
available
o Securities of many small companies are traded in the over-the-counter
markets or on a regional securities exchange potentially making them
thinly traded, less liquid and their prices more volatile than the
prices of the securities of larger companies
o Changes in the value of small company stocks may not mirror the
fluctuations of the general market
o More limited product lines, markets and financial resources make these
companies more susceptible to economic or market setbacks
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For these and other reasons, the prices of small capitalization securities can
fluctuate more significantly than the securities of larger companies. The
smaller the company, the greater effect these risks may have on that company's
operations and performance. As a result, an investment in BIA Small-Cap Growth
Fund may exhibit a higher degree of volatility than the general domestic
securities market.
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MANAGEMENT [Logo]
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Each Fund is a series of Forum Funds (the "Trust"), an open-end, management
investment company (mutual fund). The business of the Trust and each Fund is
managed under the direction of the Board of Trustees (the "Board"). The Board
formulates the general policies of each Fund and meets periodically to review
the Fund's performance, monitor investment activities and practices and discuss
other matters affecting the Fund. Additional information regarding the Board, as
well as the Trust's executive officers, may be found in the Statement of
Additional Information ("SAI").
THE ADVISER
Brown Investment Advisory & Trust Company, Furness House, 19 South Street,
Baltimore, Maryland 21202, serves as investment adviser to each Fund. The
Adviser is currently a privately-owned company. Prior to June 1998, the Adviser
operated as a subsidiary of Bankers Trust Company under the name of Alex. Brown
Capital Advisory & Trust Company.
The Adviser and its predecessors have provided investment advisory and
management services to clients for over six years. As of the date of this
Prospectus, the Adviser has over $4.8 billion of assets under management.
Subject to the general control of the Board, the Adviser makes investment
decisions for each Fund. For its services, the Adviser receives an advisory fee
at an annual rate of 1.00% of the average daily net assets of BIA Small-Cap
Growth Fund and 0.75% of the average daily net assets of BIA Growth Equity Fund.
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PORTFOLIO MANAGERS
Frederick L. Meserve, Jr. is responsible for the day-to-day management of BIA
Small-Cap Growth Fund while Geoffrey R.B. Carey, CFA, and Jane W. Korhonen, CFA,
are responsible for the day-to-day management of BIA Growth Equity Fund. Each
portfolio manager's business experience is as follows:
FREDERICK L. MESERVE, JR. Senior Portfolio Manager and head of the Emerging
Growth Group of the Adviser since 1994. Mr. Meserve has published a number of
investment strategy reports on growth stocks. He received a B.S. & E. degree
from Princeton University in 1960 and an M.B.A. degree from Columbia Business
School in 1962.
GEOFFREY R.B. CAREY, CFA Senior Portfolio Manager of the Adviser since 1996. Mr.
Carey coordinates portfolio management activities for institutional and high net
worth clients. Prior thereto, Mr. Carey was a Portfolio Manager for J.P. Morgan
Investment Management in Geneva, Switzerland. He received a B.A. degree from
Washington and Lee University in 1984 and an M.B.A. degree from the University
of North Carolina in 1989.
JANE W. KORHONEN, CFA Senior Research Analyst of the Adviser since 1994. Ms.
Korhonen covers U.S. large-cap technology and health care sectors. Prior
thereto, Ms. Korhonen was an Equity Group Manager for Howard Hughes Medical
Institute. She received a B.A. degree from Denison University in 1979 and an
M.B.A. degree from Northwestern University's J.L. Kellogg Graduate School of
Management in 1984.
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OTHER SERVICE PROVIDERS
The Forum Financial Group ("Forum") of companies provide services to each Fund.
As of December 31, 1999, Forum provided administration and distribution services
to investment companies and collective investment funds with assets of
approximately $54 billion.
Forum Fund Services, LLC, a registered broker-dealer and member of the National
Association of Securities Dealers, Inc., is the distributor (principal
underwriter) of each Fund's shares. The distributor acts as the agent of the
Trust in connection with the offering of each Fund's shares. The distributor may
enter into arrangements with banks, broker-dealers or other financial
institutions through which investors may purchase or redeem shares and may, at
its own expense, compensate persons who provide services in connection with the
sale or expected sale of each Fund's shares.
Forum Shareholder Services, LLC ("Transfer Agent") is each Fund's transfer
agent.
FUND EXPENSES
Each Fund pays for all of its expenses. Each Fund's expenses are comprised of
its own expenses as well as Trust expenses that are allocated among the various
series of the Trust. The Adviser or other service providers may voluntarily
waive all or any portion of their fees, which are accrued daily and paid
monthly. Any waiver would have the effect of increasing a Fund's performance for
the period during which the waiver was in effect and may not be recouped at a
later date.
The Adviser has undertaken to waive its fees and assume certain expenses of each
Fund in order to limit the Funds' expenses (excluding taxes, interest, portfolio
transaction expenses and extraordinary expenses) to 1.25% or less of the average
daily net assets of BIA Small-Cap Growth Fund and 1.00% or less of the average
daily net assets of BIA Growth Equity Fund.
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[Logo] YOUR ACCOUNT
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GENERAL INFORMATION
You pay no sales charge to purchase or sell (redeem) shares of a Fund. You may
purchase or sell Fund shares at the net asset value per share (NAV) next
calculated after the Transfer Agent receives your request in proper form. For
instance, if the Transfer Agent receives your purchase request in proper form
after 4 p.m., your transaction will be priced at the next day's NAV. A Fund
cannot accept orders that request a particular day or price for the transaction
or any other special conditions.
Neither Fund issues share certificates.
You will receive statements at least quarterly and a confirmation of each
transaction. You should verify the accuracy of all transactions in your account
as soon as you receive your confirmations.
Each Fund reserves the right to waive minimum investment amounts and may
temporarily suspend (during unusual market conditions) or discontinue any
service or privilege.
WHEN AND HOW NAV IS DETERMINED Each Fund calculates its NAV as of the close of
the New York Stock Exchange (normally 4:00 p.m., eastern time) on each weekday
except days when the New York Stock Exchange is closed. The time at which NAV is
calculated may be changed in case of an emergency. A Fund's NAV is determined by
taking the market value of all securities owned by the Fund (plus all other
assets such as cash), subtracting all liabilities and then dividing the result
by the number of shares outstanding. A Fund values securities for which market
quotations are readily available at current market value. If market quotations
are not readily available, then a Fund values securities at estimated fair
value.
[Margin Callout]
HOW TO CONTACT THE FUNDS
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WRITE TO US AT:
Forum Shareholder Services, LLC
P.O. Box 446
Portland, ME 04112
TELEPHONE US AT:
(800) 540-6807 (toll free) or
(207) 879-0001
WIRE INVESTMENTS (OR ACH PAYMENTS) TO US AT:
Bankers Trust Company
New York, New York
ABA #021001033
FOR CREDIT TO:
Forum Shareholder Services, LLC
Account # 01-465-547
Re: (Name of Your Fund)
(Your Name)
(Your Account Number)
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TRANSACTIONS THROUGH THIRD PARTIES If you invest through a broker or other
financial institution, the policies and fees charged by that institution may be
different than those of the Funds. Financial institutions may charge transaction
fees and may set different minimum investments or limitations on buying or
selling shares. These institutions may also provide you with certain shareholder
services such as periodic account statements and trade confirmations summarizing
your investment activity. Consult a representative of your financial institution
for more information.
BUYING SHARES
HOW TO MAKE PAYMENTS All investments must be in U.S. dollars and checks must be
drawn on U.S. banks.
CHECKS For individual or Uniform Gift to Minors Act ("UGMA") or
Uniform Transfer to Minors Act ("UTMA") accounts, the checks must be made
payable to the Fund name (e.g., "BIA Growth Equity Fund") or to one or more
owners of the account and endorsed to the Fund name (e.g."BIA Growth Equity
Fund"). For all other accounts, the check must be made payable on its face
to the Fund name (e.g. "BIA Growth Equity Fund"). No other method of check
payment is acceptable (for instance, you may not pay by travelers check).
ACH PAYMENT Instruct your financial institution to make an ACH (automated
clearinghouse) payment to us. These payments typically take two days. Your
financial institution may charge you a fee for this service.
WIRES Instruct your financial institution to make a Federal Funds wire
payment to us. Your financial institution may charge you a fee for this
service.
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MINIMUM INVESTMENTS Each Fund accepts investments in the following minimum
amounts:
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MINIMUM INITIAL MINIMUM ADDITIONAL
INVESTMENT INVESTMENT
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Standard Accounts $5,000 $100
Traditional and Roth IRA Accounts $2,000 $100
Accounts with Automatic
Investment Plans $2,000 $100
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ACCOUNT REQUIREMENTS
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TYPE OF ACCOUNT REQUIREMENT
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INDIVIDUAL, SOLE PROPRIETORSHIP AND JOINT ACCOUNTS: Individual o Instructions must be signed by all persons required to
accounts are owned by one person, as are sole proprietorship sign exactly as their names appear on the account
accounts. Joint accounts can have two or more owners (tenants)
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GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA): These custodial o Depending on state laws, you can set up a custodial
accounts provide a way to give money to a child account under the UGMA or UTMA
and obtain tax benefits. An individual can give up to
$10,000 a year per child without paying Federal gift tax o The custodian must sign instructions in a
manner indicating custodial capacity
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BUSINESS ENTITIES o Submit a Corporate/Organization Resolution form
or similar document
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TRUSTS o The trust must be established before an account can be
opened
o Submit a Corporate/Organization Resolution form
or similar document
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INVESTMENT PROCEDURES
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TO OPEN AN ACCOUNT TO ADD TO YOUR ACCOUNT
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BY CHECK BY CHECK
o Call or write us for an account application and/or o Fill out an investment slip from a confirmation or write
a Corporate/Organization Resolution form o Write your account number on your check
o Complete the application us a letter o Mail us the slip (or your letter) and the check
o Mail us your application and a check
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BY WIRE BY WIRE
o Call or write us for an account application and/or o Call to notify us of your incoming wire
a Corporate/Organization Resolution form o Instruct your bank to wire your money
o Complete the application
o Call us and you will be assigned an account number to us
o Mail us your application
o Instruct your bank to wire your money to us
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BY ACH PAYMENT BY AUTOMATIC INVESTMENT
o Call or write us for an account application and/or o Call or write us for an "Automatic Investment Plan" form
a Corporate/Organization Resolution form o Complete the form
o Complete the application o Attach a voided check to your form
o Call us and you will be assigned an account number o Mail us the form
o Mail us your application
o Make an ACH payment
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</TABLE>
AUTOMATIC INVESTMENTS You may invest a specified amount of money in a Fund once
or twice a month on specified dates. These payments are taken from your bank
account by ACH payment. Automatic investments must be for at least $100.
LIMITATIONS ON PURCHASES Each Fund reserves the right to refuse any purchase
(including exchange) request, particularly requests that could adversely affect
the Fund or its operations. This includes those from any individual or group
who, in a Fund's view, is likely to engage in excessive trading (usually defined
as more than four redemptions or exchanges out of the Fund within a calendar
year).
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CANCELED OR FAILED PAYMENTS Each Fund accepts checks and ACH transfers at full
value subject to collection. If a Fund does not receive your payment for shares
or you pay with a check or ACH transfer that does not clear, your purchase will
be canceled. You will be responsible for any losses or expenses incurred by a
Fund or the Transfer Agent, and the Fund may redeem shares you own in the
account (or another identically registered account in any Fund) as
reimbursement. Each Fund and its agents have the right to reject or cancel any
purchase or exchange due to nonpayment.
SELLING SHARES
Redemption orders are processed promptly. Generally, a Fund will send redemption
proceeds to you within a week. Delays may occur in cases of very large
redemptions, excessive trading or during unusual market conditions. Each Fund
may delay sending redemption proceeds until it has collected payment for the
shares you are selling, which may take up to 15 calendar days.
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TO SELL SHARES FROM YOUR ACCOUNT
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BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account number
o The Fund name
o The dollar amount or number of shares you want to sell
o How and where to send the redemption proceeds
o Obtain a signature guarantee (if required)
o Obtain other documentation (if required)
o Mail us your request and documentation
BY WIRE
o Wire redemptions are only available if your redemption is for $5,000 or more
and you did not decline wire redemption privileges on your account
application
o Call us with your request (unless you declined telephone redemption
privileges -- See "By Telephone") OR
o Mail us your request (See "By Mail")
BY TELEPHONE
o Call us with your request (unless you declined telephone redemption
privileges on your account application)
o Provide the following information:
o Your account number
o Exact name(s) in which account is registered
o Additional form of identification
o Redemption proceeds will be:
o Mailed to you OR
o Wired to you (unless you declined wire redemption privileges -- See "By
Wire")
AUTOMATICALLY
o Call or write us for an "Automatic Redemption" form
o Attach a voided check to your form
o Mail us your form
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TELEPHONE REDEMPTION PRIVILEGES You may redeem your shares by telephone unless
you declined telephone redemption privileges on your account application. You
may be responsible for any fraudulent telephone order as long as the Transfer
Agent takes reasonable measures to verify the order.
WIRE REDEMPTION PRIVILEGES You may redeem your shares by wire unless you
declined wire redemption privileges on your account application. The minimum
amount that may be redeemed by wire is $5,000.
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AUTOMATIC REDEMPTIONS You may redeem a specified amount of money from your
account once a month on a specified date. These payments are sent from your
account to a designated bank account by ACH payment. Automatic redemptions must
be for at least $250.
SIGNATURE GUARANTEE REQUIREMENTS To protect you and each Fund against fraud,
signatures on certain requests must have a "signature guarantee." A signature
guarantee verifies the authenticity of your signature. You can obtain one from
most banking institutions or securities brokers, but not from a notary public.
For requests made in writing, a signature guarantee is required for any of the
following:
o Sales of over $50,000 worth of shares
o Changes to a shareholder's record name
o Redemptions from an account for which the address or account registration
has changed within the last 30 day
o Sending redemption proceeds to any person, address, brokerage firm or
bank account not on record
o Sending redemption proceeds to an account with a different registration
(name or ownership) from yours
o Changes to automatic investment or redemption, distribution, telephone
redemption or exchange option or any other election in connection with
your account
SMALL ACCOUNTS If the value of your account falls below $1,000 ($500 for IRAs or
accounts with an established automatic investment plan), a Fund may ask you to
increase your balance. If the account value is still below $1,000 (or $500 in
the case of IRAs or accounts with an established automatic investment plan)
after 60 days, a Fund may close your account and send you the proceeds. A Fund
will not close your account if it falls below these amounts solely as a result
of changes in market value.
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REDEMPTIONS IN KIND Each Fund reserves the right to pay redemption proceeds in
portfolio securities rather than cash. These redemptions "in kind" usually occur
if the amount to be redeemed is large enough to affect a Fund's operations (for
example, if it represents more than 1% of the Fund's assets).
LOST ACCOUNTS The Transfer Agent will consider your account lost if
correspondence to your address of record is returned as undeliverable, unless
the Transfer Agent determines your new address. When an account is lost, all
distributions on the account will be reinvested in additional Fund shares. In
addition, the amount of any outstanding (unpaid for six months or more) checks
for distributions that have been returned to the Transfer Agent will be
reinvested and the checks will be canceled.
EXCHANGE PRIVILEGES
You may exchange your Fund shares for shares of the other Fund by telephone or
in writing. You may also exchange Fund shares for Investor Shares of the Trust's
money market funds. Because exchanges are treated as a sale and purchase of
shares, they may have tax consequences.
REQUIREMENTS You may make exchanges only between identically registered accounts
(name(s), address and taxpayer ID number). There is currently no limit on
exchanges, but each Fund reserves the right to limit exchanges. You may exchange
your shares by mail or telephone, unless you declined telephone redemption
privileges on your account application. You may be responsible for any
fraudulent telephone order as long as the Transfer Agent takes reasonable
measures to verify the order.
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HOW TO EXCHANGE
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BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account number
o The name of the funds from which you are exchanging and into which you are
exchanging
o The dollar amount or number of shares you want to sell (and exchange)
o Open a new account and complete an account application if you are requesting
different shareholder privileges
o Obtain a signature guarantee if required
o Mail us your request and documentation
BY TELEPHONE
o Call us with your request (unless you declined telephone redemption
privileges on your account application)
o Provide the following information:
o Your account number
o Exact name(s) in which account is registered
o Additional form of identification
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RETIREMENT ACCOUNTS
Each Fund offers both traditional and Roth IRAs accounts. Before investing in
any IRA or other retirement plan, you should consult your tax adviser. Whenever
making an investment in an IRA, be sure to indicate the year in which the
contribution is made.
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OTHER INFORMATION [Logo]
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DISTRIBUTIONS
Each Fund distributes its net investment income quarterly and net capital gain
at least annually.
All distributions are reinvested in additional shares, unless you elect to
receive distributions in cash. For Federal income tax purposes, distributions
are treated the same whether they are received in cash or reinvested. Shares
become entitled to receive distributions on the day after the shares are issued.
TAXES
Each Fund generally intends to operate in a manner such that it will not be
liable for Federal income or excise tax.
A Fund's distribution of net income (or short-term capital gain) is taxable to
you as ordinary income. A Fund's distribution of long-term capital gain is
taxable to you as long-term capital gain.
If you buy shares just before your Fund makes a distribution, you will pay the
full price for the shares and then receive a portion of the price back as a
taxable distribution. The sale or exchange of Fund shares is a taxable
transaction for income tax purposes.
Your Fund will send you information about the income tax status of distributions
paid during the year shortly after December 31 of each year.
For further information about the tax effects of investing in a Fund, including
state and local tax matters, please see the SAI and consult your tax adviser.
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ORGANIZATION
The Trust is a Delaware business trust. Neither Fund expects to hold
shareholders' meetings unless required by Federal or Delaware law. Shareholders
of each series are entitled to vote at shareholders' meetings unless a matter
relates only to specific series (such as approval of an advisory agreement for a
Fund). From time to time, large shareholders may control a Fund or the Trust.
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BIA SMALL-CAP GROWTH FUND
BIA GROWTH EQUITY FUND
FOR MORE INFORMATION
The following documents are available free upon request:
ANNUAL/SEMI-ANNUAL REPORTS
Additional information about each Fund's investments will be contained
in the Fund's annual and semi-annual reports to shareholders. In a Fund's annual
report, you will find a discussion of the market conditions
and investment strategies that significantly affected the Fund's
performance during its last year.
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
The SAI provides more detailed information about the Funds and is incorporated
by reference into this Prospectus.
CONTACTING THE FUNDS
You can get a free copy of the SAI and each Fund's reports,
request other information and discuss your questions about the Funds by
contacting the Funds at:
Forum Shareholder Services, LLC
P.O. Box 446
Portland, Maine 04112
800-540-6807 (toll free)
207-879-0001
SECURITIES AND EXCHANGE COMMISSION
You can also review the Funds' reports and the Funds'
SAI at the Public Reference Room of the Securities and Exchange Commission.
You can get text-only copies, for a fee, by writing to:
Public Reference Room
Securities and Exchange Commission
Washington, D.C. 20549-0102
e-mail address: [email protected]
The scheduled hours of operation of the Public Reference Room may
be obtained by calling the SEC at 202-942-8090. Free copies of
reports and SAIs are available from the SEC's Internet website
at http://www.sec.gov
Investment Company Act File No. 811-3023.
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