<PAGE>
FORUM FUNDS SEMI-ANNUAL REPORT
SEPTEMBER 30, 2000
INVESTORS HIGH GRADE
BOND FUND
INVESTORS BOND FUND
TAXSAVER BOND FUND
MAINE TAXSAVER
BOND FUND
NEW HAMPSHIRE TAXSAVER
BOND FUND
INVESTORS GROWTH FUND
PAYSON BALANCED FUND
PAYSON VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
TABLE OF CONTENTS SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
A Message to Our Shareholders............................... 1
Discussion: Forum Investment Advisors, LLC.................. 2
Forum Funds Performance..................................... 4
FINANCIAL STATEMENTS OF THE FORUM FUNDS
Schedules of Investments:
Investors High Grade Bond Fund............................ 6
Investors Bond Fund....................................... 7
TaxSaver Bond Fund........................................ 8
Maine TaxSaver Bond Fund.................................. 10
New Hampshire TaxSaver Bond Fund.......................... 14
Investors Growth Fund..................................... 17
Payson Balanced Fund...................................... 18
Payson Value Fund......................................... 20
Notes to Schedules of Investments........................... 21
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(R)
<PAGE>
(This page has been left blank intentionally.)
FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
A MESSAGE TO OUR SHAREHOLDERS
--------------------------------------------------------------------------------
September 30, 2000
Dear Investor,
Once again, we are pleased to present the Forum Funds Semi-Annual Report,
sharing with you the financial highlights of the period and our perspective on
the financial markets. The Funds have reported excellent returns versus their
benchmarks during the last six months, a challenging investment climate. During
this period, each Fund's returns (bond funds and stock funds alike) exceeded two
broad market indices, the S&P 500 Composite Stock Index, which posted -3.60%
total return, and the NASDAQ Composite Index, which posted -19.61%.
The recent investment environment has become something of a wild ride of
astonishing ups and downs. Many queasy investors get off after a sudden plunge,
only to get on again when the ride appears to be returning to the top. It's
difficult for many investors to maintain focus on their long-term investment
goals with so much media attention on short-term returns-big winners and big
losers. Our investment advisers are committed to maintaining prudent, long-term
portfolio management strategies.
As the markets gyrate in response to short-term bits of information, our
advisers distill the noise into useful data that provide a better understanding
of the underlying economic and financial issues. Our aim has been to
methodically consider the elements that drive the economy, earnings and interest
rates without being caught up in the momentary reactions of other market
participants. We invite you to read the adviser comments on economic and market
conditions on the following pages and to review the remainder of this
semi-annual report for further Fund details.
We remain committed to helping you meet your financial goals and strive to
continue earning your confidence by providing superior investment service. As
always, I thank you for continuing to use our Forum Funds family to meet your
investment needs. Please feel free to discuss any questions or concerns with
your local investment professional or call us at 207-879-0001.
Sincerely,
/s/ John Y. Keffer
------------------
John Y. Keffer
President
FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
DISCUSSION: FORUM INVESTMENT ADVISORS, LLC
--------------------------------------------------------------------------------
ECONOMIC OVERVIEW
ECONOMIC AND FINANCIAL DEVELOPMENTS
During the last year, the financial markets have faced many new and unusual
experiences. The fears of Y2K-related complications were dispelled shortly after
the stroke of midnight 1/1/2000. Financial markets did not collapse and
investment accounts were not suddenly erased, disappearing without a trace.
Nevertheless, preparing for the worst proved to be a useful exercise for
financial institutions and bolstered confidence in their technological systems.
Alan Greenspan had more than Y2K on his mind. As the U.S. economy showed
signs of sustaining its rapid growth and as oil prices soared, the Fed was
concerned with heading-off potential inflation and continued to tighten monetary
policy. The Federal Open Market Committee implemented a series of four Fed funds
rate increases, raising the targeted overnight bank lending rate from 5.25% to
6.50%. Economic indicators have responded as anticipated--growth has
decelerated. Although the Consumer Price Index was up 3.4% year-over-year in
August, it has backed-off from last winter's surge to 3.8%. And while many of
the industrial economies show signs of slowing, the IMF expects the world
economy to grow at its fastest pace since the mid-1980s.
Energy costs are a concern, especially as winter approaches. Oil prices
have increased during the last calendar year from $19.53 per barrel to $30.84 at
the close of September. Continued turmoil in the Middle East may challenge last
summer's peak of more than $35 per barrel. Yet, with workers continuing to
benefit from the tight labor market, consumer confidence has remained strong,
especially in the mid-Atlantic region. Due to robust consumer spending, domestic
inventories are low and imports make up the balance of demand. This increases
the trade deficit. Cheaper imports and greater gains in technological advances
have enabled companies to boost productivity without significantly raising
prices.
The U.S. government began retiring the national debt and phasing out the
issuance of additional Treasury Bonds. In January, we saw the modest beginning
of the Treasury yield curve inversion. The curve has since assumed a myriad of
yoga-like positions. What does all this mean? Investors typically require
greater return for the higher risks associated with longer maturities.
Currently, yields are higher for shorter maturities and lower for longer
maturities--investors are pushing prices upward for 10-year and 30-year bonds.
This creates a downward, rather than upward, sloping curve. By the end of
September, the yield on 30-year bonds slightly edged 10 year bonds, creating
more of a praying-mantis shape. Perhaps the changing U.S. Treasury market will
cause investors to move to the 10-year benchmark like most of the world.
Volatility remains a feature of the bond and equity markets. Although
technology stocks led the charge during the previous two years, utilities
returned 39% in the last year versus technology's 19%. The IPO race has cooled.
Investors have begun to reap the poor rewards of some of yesterday's hot ideas
and are more cautious with newer offerings. Several large IPOs have been
postponed due to current sentiment. Mutual funds are merging and reorganizing
with exchange-traded funds, the current buzz.
2 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
DISCUSSION: FORUM INVESTMENT ADVISORS, LLC (CONTINUED)
--------------------------------------------------------------------------------
This is a challenging financial environment for novice investors as well as
seasoned professionals, and it is especially important to maintain focus on
clear investment objectives and to implement prudent, long-term strategies. Our
investment advisers remain committed to meeting your goals with this judicious,
long-term investment approach.
3 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
FORUM FUNDS PERFORMANCE
--------------------------------------------------------------------------------
FORUM FUNDS PERFORMANCE
As detailed in the following table, the Forum Funds performed extremely
well versus their benchmarks during the six-month period. The Investors Growth
Fund surpassed the Morningstar Growth Funds Average by a margin of 10.91%, while
the Payson Balanced Fund surpassed the Morningstar Balanced Fund Average by
7.17%. The high grade and tax-exempt bond funds also produced total returns that
outperformed their respective Morningstar benchmarks.
SUMMARY PERFORMANCE INDICATORS
SIX MONTH TOTAL RETURN WITHOUT APPLICABLE SALES CHARGE--PERIOD ENDING SEPTEMBER
30, 2000
<TABLE>
<CAPTION>
FORUM VS.
FORUM BENCHMARK BENCHMARK
----- --------- ---------
<S> <C> <C> <C>
Investors High Grade Bond Fund.............................. 4.27% 3.78%(1) 0.49%
Investors Bond Fund......................................... 2.36% 3.63%(2) -1.27%
TaxSaver Bond Fund.......................................... 3.33% 3.09%(3) 0.24%
Maine TaxSaver Bond Fund.................................... 3.28% 3.09%(3) 0.19%
New Hampshire TaxSaver Bond Fund............................ 3.34% 3.09%(3) 0.25%
Investors Growth Fund....................................... 9.64% -1.27%(4) 10.91%
Payson Balanced Fund........................................ 8.13% 0.96%(5) 7.17%
Payson Value Fund........................................... -2.37% 0.13%(6) -2.50%
</TABLE>
<TABLE>
<S> <C>
(1) MORNINGSTAR Corporate Bond-High Quality Funds Average: (4) MORNINGSTAR Growth Funds Average:
273 Funds in Category 1,929 Funds in Category
(2) MORNINGSTAR Corporate Bond-General Funds Average: (5) MORNINGSTAR Balanced Funds Average:
593 Funds in Category 445 Funds in Category
(3) MORNINGSTAR Municipal Bond-National Funds Average: (6) MORNINGSTAR Growth & Income Funds
559 Funds in Category 812 Funds in Category
</TABLE>
4 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
FORUM FUNDS PERFORMANCE (CONTINUED)
--------------------------------------------------------------------------------
SUMMARY PERFORMANCE INDICATORS
AVERAGE ANNUAL TOTAL RETURN WITH APPLICABLE SALES CHARGE--PERIOD ENDING
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SINCE
INCEPTION DATE 1 YEAR 5 YEAR 10 YEAR INCEPTION
-------------- ------ ------ ------- ---------
<S> <C> <C> <C> <C> <C>
Investors High Grade Bond Fund............ 3/16/98 2.53% N/A N/A 2.99%
Investors Bond Fund....................... 10/2/89 0.63% 5.28% 7.37% 7.40%
TaxSaver Bond Fund........................ 10/2/89 0.86% 3.84% 6.07% 6.04%
Maine TaxSaver Bond Fund.................. 12/5/91 2.01% 4.15% N/A 5.54%
New Hampshire TaxSaver Bond Fund.......... 12/31/92 1.87% 4.22% N/A 5.01%
Investors Growth Fund..................... 12/12/97 19.68% N/A N/A 11.38%
Payson Balanced Fund...................... 11/25/91 9.50% 9.23% N/A 10.10%
Payson Value Fund......................... 7/31/92 7.79% 14.30% N/A 13.91%
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------
MAXIMUM SALES CHARGES
-------------------------------------------------------
<S> <C>
Investors High Grade Bond Fund 3.75%
Investors Bond Fund 3.75%
TaxSaver Bond Fund 3.75%
Maine TaxSaver Bond Fund 3.00%
New Hampshire TaxSaver Bond Fund 3.00%
Investors Growth Fund 4.00%
Payson Balanced Fund 4.00%
Payson Value Fund 4.00%
-------------------------------------------------------
</TABLE>
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than original cost. Morningstar return figures do not include the effect
of the maximum sales charge. During the period certain fees and expenses were
waived by the service providers. Without these waivers, total return would have
been lower. Returns less than one year are not annualized.
5 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
INVESTORS HIGH GRADE BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
----------- ------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS & NOTES (20.7%)
$ 500,000 ABN Amro Bank, North America
Finance, Inc., 8.25%,
8/1/09....................... $ 1,027,130
1,500,000 CNA Financial Corp., 6.45%,
1/15/08...................... 1,328,190
1,500,000 Lehman Brothers Holdings, Inc.,
8.50%, 8/1/15................ 1,564,335
1,000,000 Mercantile Bancorporation,
7.30%, 6/15/07............... 986,000
-----------
Total Corporate Bonds & Notes
(cost $5,012,057) 4,905,655
-----------
GOVERNMENT AGENCY NOTES (3.2%)
FNMA (3.2%)
750,000 7.50%, 2/11/02................. 759,968
-----------
Total Government Agency Notes
(cost $772,266) 759,968
-----------
GOVERNMENT MORTGAGE BACKED SECURITIES (7.9%)
GNMA (7.9%)
510,157 Pool 400138, 6.50%, 4/15/28.... 491,985
843,553 Pool 463822, 6.50%, 4/15/28.... 813,506
577,754 Pool 468812, 6.50%, 4/15/28.... 557,174
-----------
Total Government Mortgage Backed Securities
(cost $1,931,464) 1,862,665
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
----------- ------------------------------- -----------
U.S. TREASURY NOTES (66.2%)
$ 500,000 5.88%, 2/15/04................. $ 499,375
2,000,000 7.25%, 5/15/04................. 2,085,620
3,000,000 6.50%, 8/15/05................. 3,076,860
10,000,000 5.88%, 11/15/05................ 10,006,200
-----------
Total U.S. Treasury Notes
(cost $16,088,359) 15,668,055
-----------
<CAPTION>
SHARES
-----------
<S> <C> <C>
SHORT-TERM HOLDINGS (2.0%)
468,623 Bankers Trust Institutional
Cash Management Fund, 6.49%
(cost $468,623).............. 468,623
-----------
Total Investments (100.0%)
(cost $24,272,769) $23,664,966
===========
</TABLE>
6 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
INVESTORS BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- -------------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (4.4%)
$ 34,125 Merrill Lynch Mortgage
Investors, Inc., Series 89 E,
9.40%, 9/15/09................ $ 34,432
277,086 RTC, Series 92 C8 D, 8.84%,
12/25/23+..................... 275,355
-----------
Total Collateralized Mortgage Obligations
(cost $307,177) 309,787
-----------
CORPORATE BONDS & NOTES (62.1%)
1,025,000 ABN Amro Bank, North America
Finance, Inc., 8.25%,
8/1/09........................ 1,052,809
1,027,000 Bank United, 8.00%, 3/15/09..... 999,435
474,000 Bankers Trust New York Co.,
7.25%, 10/15/11............... 453,770
948,000 CBS, Inc., ACA insured, 7.63%,
1/1/02........................ 952,475
2,211,000 Comerica Bank, 8.38%,
7/15/24....................... 2,233,553
948,000 Conseco, Inc., 8.70%,
11/15/26...................... 412,380
474,000 Cummins Engine Co., Inc., 6.45%,
3/1/05........................ 445,124
790,000 Lehman Brothers Holdings, 7.20%,
8/15/09....................... 765,557
316,000 Leucadia Capital Trust I, 8.65%,
1/15/27....................... 223,680
948,000 Paine Webber Group, Inc., 7.39%,
10/16/17...................... 889,982
316,000 Sears Roebuck Acceptance Corp.,
6.70%, 11/15/06............... 303,120
-----------
Total Corporate Bonds & Notes
(cost $9,944,231) 8,731,885
-----------
GOVERNMENT MORTGAGE BACKED SECURITIES (6.5%)
FHLMC (0.1%)
11,634 Pool 502128, 9.00%, 10/1/04..... 11,969
-----------
GNMA (6.4%)
22,979 Pool 406467, 6.50%, 3/15/26..... 22,160
403,377 Pool 463821, 6.50%, 4/15/28..... 875,622
-----------
897,782
-----------
Total Government Mortgage Backed Securities
(cost $942,496) 909,751
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- -------------------------------- -----------
MUNICIPAL BONDS (18.3%)
$1,387,487 Coffee County, GA, Hospital
Authority RV, Taxable
Anticipation Certificates,
Series B, 9.00%, 12/1/12+..... $ 1,359,751
1,138,754 Coffee County, GA, Hospital
Authority RV, Taxable
Anticipation Certificates,
Series B, ACA insured, 9.00%,
12/1/12+...................... 1,205,849
-----------
Total Municipal Bonds
(cost $2,642,963) 2,565,600
-----------
PREFERRED STOCK (8.0%)
1,265,000 Irwin Financial Corp., Capital
Trust I, 9.25%................ 303,600
2,165,000 NCBE Capital Trust, 8.25%....... 522,306
2,526,000 Simmons First National Corp.,
9.12%......................... 303,120
-----------
Total Preferred Stock
(cost $1,199,051) 1,129,026
-----------
<CAPTION>
SHARES
----------
<S> <C> <C>
SHORT-TERM HOLDINGS (0.7%)
90,920 Bankers Trust Investment Money
Market Fund, 6.37%............ 90,920
7,069 Bankers Trust Investment Money
Market Fund, 6.49%............ 7,069
-----------
(cost $97,989) 97,989
-----------
Total Investments (100.0%)
(cost $15,133,907) $13,744,038
===========
</TABLE>
7 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS (95.1%)
ARIZONA (4.0%)
$ 770,000 Phoenix AZ, GO Bonds, 6.25%,
7/1/17....................... $ 853,683
-----------
GUAM (2.3%)
465,000 Guam Government LO Highway RV,
Series A, FSA insured, 6.25%,
5/1/07....................... 485,200
-----------
ILLINOIS (5.5%)
350,000 Illinois Development Finance
Authority RV, Community
Rehabilitation Providers
Facilities Acquisition
Program, Series 92, 8.25%,
8/1/12....................... 364,609
770,000 Illinois State, GO Bonds,
5.70%, 4/1/10................ 792,291
-----------
1,156,900
-----------
INDIANA (0.4%)
80,000 Indiana Health Facilities
Financing Authority Hospital
RV, Community Hospital of
Indiana, Series A & B, MBIA
insured, 6.35%, 7/1/03....... 83,486
-----------
KENTUCKY (7.7%)
1,540,000 Carroll County, KY, PCR Bonds,
Kentucky Utilities Co.
Project, Series A, 7.45%,
9/15/16...................... 1,633,339
-----------
LOUISIANA (4.6%)
770,000 Louisiana Public Facilities
Authority RV, Extended Care
Facilities Authority Comm-
Care Corp., 11.00%, 2/1/14... 969,900
-----------
MISSOURI (5.4%)
770,000 Kansas City, MO, IDA RV,
Owens-Illinois, PJ-Conv,
4.90%, 12/31/08.............. 734,888
385,000 Sikeston, MO, Electric RV,
6.00%, 6/1/16................ 413,632
-----------
1,148,520
-----------
NEVADA (0.3%)
60,000 Big Bend Water District, MBIA
insured, 7.25%, 11/1/05...... 61,348
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
NEW HAMPSHIRE (1.9%)
$ 195,000 New Hampshire, HEFA RV, Kendal
at Hanover Issue, Bank of
Ireland, LOC, 5.80%,
10/1/12...................... $ 195,954
190,000 New Hampshire, State Turnpike
System RV, Series A, FGIC
insured, 7.00%, 11/1/06...... 207,267
-----------
403,221
-----------
NEW JERSEY (3.8%)
770,000 Essex County, NJ, Improvement
Authority RV, Utilities
System East Orange Franchise,
MBIA insured, 6.00%,
7/1/18....................... 808,677
-----------
NEW YORK (3.9%)
770,000 New York, NY, IDA, Civic
Facilities RV, USTA National
Tennis Center Project, FSA
insured, 6.40%, 11/15/08..... 831,284
-----------
NORTH CAROLINA (4.1%)
1,000,000 North Carolina, Eastern
Municipal Power RV, Series A,
4.50%, 1/1/24................ 858,090
-----------
OHIO (21.9%)
155,000 Cleveland, OH, Public Power
System RV, P/R First Mortgage
Series B, P/R 11/15/01 @
102.......................... 162,311
615,000 Cleveland, OH, Public Power
System RV, U/R Balance, First
Mortgage, Series B, 7.00%,
11/15/17..................... 640,707
1,540,000 Hamilton, OH, Electrical System
Mortgage RV, Series A, FGIC
insured, 6.00%, 10/15/23..... 1,566,149
215,000 Montgomery County, OH, GO
Bonds, 5.30%, 12/1/10........ 221,085
615,000 Northwest, OH, GO Bonds, SD
LOC, FGIC insured, 5.50%,
12/1/12...................... 640,178
385,000 Ohio State Air Quality
Development Authority, PCR
Bonds, Cleveland Electric Co.
Project, FGIC insured, 8.00%,
12/1/13...................... 414,607
</TABLE>
8 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
OHIO, CONTINUED
$ 385,000 Ohio State Turnpike Community,
RV, Series A, 5.50%,
2/15/24...................... $ 383,217
345,000 Shelby County, OH, Hospital
Facilities RV, Wilson
Memorial Hospital, ETM USG,
6.40%, 12/1/03............... 352,652
215,000 Washington County, OH, Hospital
RV, Shelby General Hospital,
6.88%, 7/1/03................ 217,172
-----------
4,598,078
-----------
OKLAHOMA (0.9%)
195,000 Claremore, OK, Public Works
Authority Capital Improvement
RV, MBIA insured, 5.00%,
6/1/05....................... 198,030
-----------
PENNSYLVANIA (5.2%)
330,000 Allegheny County, PA, Hospital
Development Authority, Health
Care RV, Allegheny Valley
School Project, 7.25%,
2/1/03....................... 326,651
385,000 Bucks County, PA, IDA RV,
Personal Care, ETM USG,
Series A, 10.00%, 5/15/19.... 580,830
85,000 Pennsylvania HEFA RV, Medical
College of Pennsylvania,
Series 91 B, 7.25%, 3/1/05... 87,680
100,000 Washington County, PA, IDA RV,
Presbyterian Medical Center,
FHA insured, 6.50%,
1/15/02...................... 102,326
-----------
1,097,487
-----------
PUERTO RICO (10.4%)
770,000 Puerto Rico, Electric Power
Authority RV, Series U, MBIA-
IBC-BNY insured, 6.00%,
7/1/04....................... 822,907
400,000 Puerto Rico, GO Bonds, MBIA
insured, 5.75%, 7/1/10....... 435,972
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
PUERTO RICO, CONTINUED
$ 770,000 Puerto Rico, GO Improvements
Bonds, 5.50%, 7/1/13......... $ 803,341
140,000 Puerto Rico, Public Finance
Corp., Commonwealth
Appropriations RV, Series A,
AMBAC insured, 5.38%,
6/1/18....................... 142,005
-----------
2,204,225
-----------
VIRGIN ISLANDS (1.6%)
120,000 Virgin Islands, PFA, Economic
RV, ETM COLL USG, 7.30%,
10/1/18...................... 143,749
180,000 Virgin Islands, PFA RV, Sub
Lien Fund Loan Notes, Series
D, 6.00%, 10/1/05............ 182,441
15,000 Virgin Islands, PFA, Tax RV,
Senior Lien, GTY-IBCC, LOC,
5.50%, 10/1/22............... 14,896
-----------
341,086
-----------
WASHINGTON (6.4%)
750,000 Pierce County, WA, HFA RV,
Pooled, 6.00%, 12/1/28....... 672,510
770,000 Vancouver, WA, HFA RV,
Springbrook Square, Series B,
6.00%, 3/1/31................ 676,992
-----------
1,349,502
-----------
WEST VIRGINIA (4.8%)
1,000,000 Monongalia County, WV,
Pollution RV, Potomac Edison
Co. Fort Martin, Series B,
5.95%, 4/1/13................ 1,018,350
-----------
Total Municipal Bonds
(cost $20,417,064) 20,100,406
-----------
<CAPTION>
SHARES
----------
<S> <C> <C>
SHORT-TERM HOLDINGS (4.9%)
1,039,716 Bankers Trust Investment Tax-
Free Money Market Fund, 4.15%
(cost $1,039,716)............ 1,039,716
-----------
Total Investments (100.0%)
(cost $21,456,780) $21,140,122
===========
</TABLE>
9 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
MAINE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS & NOTES (97.2%)
GENERAL OBLIGATION -- BOND BANK (3.5%)
$ 20,000 Maine Municipal Bond Bank,
Series A, 5.00%, 11/1/04..... $ 20,283
20,000 Maine Municipal Bond Bank,
Series B, 5.40%, 11/1/02..... 20,357
10,000 Maine Municipal Bond Bank,
Series C, 6.45%, 11/1/01..... 10,212
25,000 Maine Municipal Bond Bank,
Series D, 5.90%, 11/1/00..... 25,032
90,000 Maine Municipal Bond Bank,
Series E, 5.70%, 11/1/11..... 93,452
210,000 Maine Municipal Bond Bank,
Series 90B, 7.20%, 11/1/07,
P/R 11/1/00 @ 102............ 214,704
50,000 Maine Municipal Bond Bank,
Series 90B, 7.20%, 11/1/11,
P/R 11/1/00 @ 102............ 51,120
150,000 Maine Municipal Bond Bank,
Series 90B, 7.20%, 11/1/15,
P/R USG, 11/1/00 @ 102....... 153,360
25,000 Maine Municipal Bond Bank,
Series 90D, 7.38%, 11/1/10,
P/R USG, 11/1/00 @ 102....... 25,564
100,000 Maine Municipal Bond Bank,
Series 92B, 6.65%, 11/1/07... 106,094
85,000 Maine Municipal Bond Bank,
Series 92B, 6.75%, 11/1/12... 90,348
150,000 Maine Municipal Bond Bank,
Series 92E, 5.80%, 11/1/04... 156,225
80,000 Maine Municipal Bond Bank,
Sewer & Water Bonds, SRF
Program, Series 91A, 7.20%,
11/1/13, P/R USG, 11/1/01 @
102.......................... 83,906
20,000 Maine Municipal Bond Bank,
Sewer & Water RV, SRF
Program, Series B, 4.75%,
11/1/03...................... 20,116
-----------
1,070,773
-----------
GENERAL OBLIGATION -- LOCAL (17.7%)
100,000 Bangor, ME, GO Bonds, 5.20%,
11/1/00...................... 100,070
60,000 Bangor, ME, GO Bonds, 5.50%,
9/1/24....................... 62,233
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport
Project, 5.75%, 10/1/01...... 101,095
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- LOCAL, CONTINUED
$ 25,000 Bangor, ME, LTGO Bonds, Bangor
International Airport
Project, 5.85%, 10/1/02...... $ 25,523
150,000 Bangor, ME, LTGO Bonds, Bangor
International Airport
Project, 6.00%, 10/1/03...... 155,007
100,000 Bangor, ME, LTGO Bonds, Bangor
International Airport
Project, 6.10%, 10/1/04...... 104,171
250,000 Bangor, ME, LTGO Bonds, Bangor
International Airport
Project, 6.35%, 10/1/07...... 260,690
175,000 Bar Harbor, ME, UTGO Bonds,
6.20%, 6/1/05................ 185,414
75,000 Bar Harbor, ME, UTGO Bonds,
6.45%, 6/1/09................ 82,334
25,000 Bath, ME, GO Bonds, 5.63%,
3/1/09....................... 26,264
30,000 Bath, ME, UTGO Bonds, 7.45%,
12/1/07...................... 34,886
20,000 Bath, ME, UTGO Bonds, 7.50%,
12/1/08...................... 23,636
25,000 Blue Hill, ME, GO Bonds, 7.30%,
7/1/06....................... 27,807
50,000 Brewer, ME, UTGO Bonds, Series
A, 6.10%, 1/1/03............. 51,614
50,000 Brewer, ME, UTGO Bonds, Series
A, 6.10%, 1/1/04............. 52,187
50,000 Brewer, ME, UTGO Bonds, Series
A, 6.10%, 1/1/05............. 52,396
50,000 Brewer, ME, UTGO Bonds, Series
A, 6.20%, 1/1/06............. 52,435
50,000 Brunswick, ME, Tax Increment GO
Bonds, BTI Project, 5.50%,
11/1/08...................... 51,974
25,000 Bucksport, ME, GO Bonds -
Local, School & Public
Improvements, 7.15%,
4/1/07....................... 27,841
250,000 Cape Elizabeth, ME, GO Bonds,
5.75%, 10/15/09.............. 264,707
100,000 Cape Elizabeth, ME, GO Bonds,
5.90%, 10/15/12.............. 106,431
25,000 Cape Elizabeth, ME, GO Bonds,
5.90%, 10/15/14.............. 26,607
100,000 Cumberland County, ME, UTGO
Bonds, 6.50%, 2/1/03, P/R
USG, 2/1/01 @ 102............ 102,678
</TABLE>
10 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
MAINE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- LOCAL, CONTINUED
$ 250,000 Cumberland County, ME, UTGO
Bonds, 5.25%, 2/1/07......... $ 257,738
25,000 Ellsworth, ME, UTGO Bonds,
7.20%, 7/1/08................ 28,451
250,000 Freeport, ME, UTGO Bonds, 7.25,
9/1/04....................... 273,578
20,000 Freeport, ME, UTGO Bonds, 7.25,
9/1/10....................... 23,762
40,000 Old Orchard Beach, ME, UTGO
Bonds, MBIA insured, 6.40%,
9/1/04....................... 42,513
215,000 Old Orchard Beach, ME, UTGO
Bonds, MBIA insured, 6.60%,
9/1/06....................... 229,293
50,000 Old Orchard Beach, ME, UTGO
Bonds, MBIA insured, 6.65%,
9/1/07....................... 53,370
70,000 Old Orchard Beach, ME, UTGO
Bonds, MBIA insured, 6.65%,
9/1/08....................... 74,717
35,000 Old Orchard Beach, ME, UTGO
Bonds, MBIA insured, 6.65%,
9/1/10....................... 37,359
500,000 Portland, ME, GO Bonds, 6.20%,
4/1/05....................... 534,255
50,000 Portland, ME, GO Bonds, 12.60%,
11/1/05...................... 67,555
100,000 Portland, ME, GO Bonds, 7.25%,
12/1/05...................... 111,779
790,000 Portland, ME, GO Bonds, 5.30%,
6/13/13...................... 792,267
25,000 Portland, ME, GO Bonds, 6.50%,
4/1/14....................... 26,996
10,000 Rockland ME, GO Bonds, 6.00%,
10/1/00...................... 10,001
25,000 Rockland ME, GO Bonds, 6.00%,
10/1/01...................... 25,335
150,000 South Portland, ME, GO Bonds,
5.80%, 9/1/08................ 161,330
40,000 South Portland, ME, GO Bonds,
5.80%, 9/1/11................ 43,178
25,000 Westbrook, ME, UTGO Bonds,
6.75%, 11/15/04.............. 27,043
75,000 Windham, ME, UTGO Bonds, 0.05%,
6/15/08...................... 51,324
130,000 Winslow, ME, GO Bonds, Crowe
Rope Industries Project,
Series A, 5.50%, 3/1/07...... 133,780
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- LOCAL, CONTINUED
$ 50,000 Winslow, ME, SD, UTGO Bonds,
AMBAC Insured, 7.00%,
10/1/10...................... $ 52,269
20,000 Winslow, ME, UTGO Bonds, AMBAC
insured, 6.90%, 10/1/08...... 20,888
25,000 Winthrop, ME, UTGO Bonds,
5.10%, 8/1/04................ 25,412
25,000 Winthrop, ME, UTGO Bonds,
5.20%, 8/1/05................ 25,561
25,000 Winthrop, ME, UTGO Bonds,
5.30%, 8/1/06................ 25,738
25,000 Winthrop, ME, UTGO Bonds,
5.40%, 8/1/07................ 25,916
250,000 Yarmouth, ME, GO Bonds, AMBAC
insured, 5.25%, 11/15/09..... 257,013
35,000 York, ME, SD, UTGO Bonds, AMBAC
insured, 6.40%,
3/1/03....................... 35,988
-----------
5,452,409
-----------
GENERAL OBLIGATION -- STATE (1.2%)
50,000 Maine, UTGO Bonds, 8.00%,
5/1/01....................... 51,026
90,000 Maine, UTGO Bonds, 6.40%,
7/1/02....................... 92,921
25,000 Maine, UTGO Bonds, 7.50%,
12/15/02..................... 26,559
100,000 Maine, UTGO Bonds, 6.50%,
7/1/03....................... 105,059
100,000 Maine, UTGO Bonds, Highway
Improvements, 8.00%,
5/1/02....................... 105,272
-----------
380,837
-----------
REVENUE -- GUAM (7.7%)
370,000 Guam Government LO Highway, RV,
Series A, FSA insured, 6.25%,
5/1/07....................... 386,073
1,875,000 Guam Power Authority RV, Series
A, AMBAC insured, 6.30%,
10/1/12 COLL USG, P/R 10/1/02
@ 102........................ 1,981,031
-----------
2,367,104
-----------
</TABLE>
11 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
MAINE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- HEALTH & EDUCATION (10.5%)
$ 25,000 Maine Educational Loan
Authority, Educational Loan
RV, Supplemental Education
Loan Program, Series 92 A-1,
6.80%, 12/1/07............... $ 26,091
55,000 Maine Educational Loan
Authority, Educational Loan
RV, Supplemental Education
Loan Program, Series 92 A-1,
7.00%, 12/1/16............... 57,256
15,000 Maine Educational Loan
Authority, Educational Loan
RV, Supplemental Education
Loan Program, Series 92 A-2,
7.15%, 12/1/16............... 15,629
25,000 Maine Educational Loan
Marketing Corp., Series A,
6.35%, 5/1/05................ 25,676
45,000 Maine Educational Marketing
Corp., Student Loan Refunding
RV, 6.90%, 11/1/03........... 45,751
80,000 Maine HEHFA RV, FSA insured,
6.10%, 7/1/01, U/R Balance... 80,952
20,000 Maine HEHFA RV, FSA insured,
ETM, 6.10%, 7/1/01........... 20,253
195,000 Maine HEHFA RV, Maine Medical
Center, ETM USG, 6.00%,
10/1/13...................... 208,774
100,000 Maine HEHFA RV, Series A,
6.10%, 7/1/03................ 103,901
50,000 Maine HEHFA RV, Series A,
6.10%, 7/1/03, PV, 7/1/02 @
102.......................... 52,272
175,000 Maine HEHFA RV, Series A, FSA
insured, 5.50%, 7/1/07....... 182,932
550,000 Maine HEHFA, RV, Series A, FSA
insured, 5.25%, 7/1/10....... 561,539
25,000 Maine HEHFA RV, Series A,
5.25%, 7/1/11................ 25,375
450,000 Maine HEHFA RV, Series B, FSA
insured, 5.55%, 7/1/08....... 462,150
510,000 Maine HEHFA RV, Series D, FSA
insured, 5.30%, 7/1/07....... 521,240
5,000 Maine HEHFA RV, Southern Maine
Medical Center, AMBAC
insured, 7.20%, 5/1/06....... 5,110
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- HEALTH & EDUCATION, CONTINUED
$ 5,000 Maine HEHFA RV, Southern Maine
Medical Center, AMBAC
insured, 7.30%, 5/1/14....... $ 5,110
840,000 Maine Veterans' Homes RV,
6.80%, 10/1/05............... 839,639
-----------
3,239,650
-----------
REVENUE -- HOUSING (2.9%)
40,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 88 D-5,
7.45%, 11/15/11.............. 41,158
200,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 88 D-6,
7.25%,11/15/19............... 204,392
110,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 90 A-5,
Remarketed 5/13/93, 6.20%,
11/15/16..................... 110,736
185,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 92 C, 6.55%,
11/15/12..................... 192,438
50,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 93 A-1,
5.05%, 11/15/06.............. 50,578
250,000 Maine HSG AUTH RV, Mortgage
Purchase, Series 94 C-1,
6.20%, 11/15/07.............. 251,990
25,000 Maine HSG AUTH RV, Series 91 A,
FSA insured, 7.40%,
11/15/22..................... 25,682
-----------
876,974
-----------
REVENUE -- INDUSTRIAL (10.7%)
15,000 Bath, ME, Sewer Improvements
RV, 7.40%, 12/1/06........... 17,154
25,000 Bucksport, ME, Solid Waste
Disposal RV, Champion
International Corp. Project
Remarketed 5/1/93, 6.25%,
5/1/10....................... 25,407
530,000 East Millinocket, ME, PCR
Bonds, Great Northern Nekoosa
Corp. Project, ETM USG,
6.70%, 6/1/04................ 553,983
165,000 Kennebec, ME, Water District
RV, 7.00%, 12/1/14, P/R USG,
12/1/01 @ 101.50............. 172,362
</TABLE>
12 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
MAINE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- INDUSTRIAL, CONTINUED
$ 40,000 Kennebec, ME, Water District
RV, 7.00%, 12/1/20, P/R USD,
12/1/01 @ 101.50............. $ 41,785
500,000 Kennebec, ME, Water District
RV, FSA insured, 5.125%,
12/1/21...................... 464,110
15,000 Kennebunk, ME, Sewer District
RV, 7.10%, 1/1/06............ 16,492
500,000 Maine Finance Authority RV,
Boise Cascade Corp. Project,
7.90%, 6/1/15................ 510,440
1,450,000 Skowhegan, ME, PCR Bonds, Scott
Paper Co. Project, 5.90%,
11/1/13...................... 1,494,747
-----------
3,296,480
-----------
REVENUE -- PUERTO RICO (19.4%)
700,000 Puerto Rico, GO Bonds, MBIA
insured, 5.75%, 7/1/10....... 762,951
1,200,000 Puerto Rico, Housing Authority
Bank & Finance Agency, SFM,
FHA insured, 8.50%,
12/1/18...................... 1,309,992
60,000 Puerto Rico, Industrial,
Medical & Environmental,
Pollution Control Facilities
Financing Authority, Abbott
Chemicals, Inc. Project,
Chase Manhattan Bank, LOC,
6.50%, 7/1/09................ 60,510
3,820,000 Puerto Rico, Public Finance
Corp., Commonwealth
Appropriations RV, Series A,
AMBAC insured, 5.38%,
6/1/18....................... 3,874,702
-----------
6,008,155
-----------
REVENUE -- TRANSPORTATION (2.4%)
700,000 Maine State Turnpike Authority
RV, MBIA insured, 6.00%,
7/1/14....................... 745,339
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- VIRGIN ISLANDS (21.2%)
$ 60,000 Virgin Islands, HFA, SFM RV,
GNMA Mortgage Backed
Securities, Series A, 6.00%,
3/1/07....................... $ 60,314
960,000 Virgin Islands, PFA, Economic
RV, ETM COLL USG, 7.30%,
10/1/18...................... 1,149,994
1,000,000 Virgin Islands, PFA RV, Senior
Lien, Series C, 5.50%,
10/1/08...................... 1,006,750
725,000 Virgin Islands, PFA RV, Sub
Lien Fund Loan Notes, Series
D, U.S. Trust Company of New
York, 6.00%, 10/1/05......... 734,831
1,165,000 Virgin Islands, PFA, Tax RV,
Senior Lien, LOC, 5.50%,
10/1/22...................... 1,156,915
720,000 Virgin Islands, Water & Power
Authority, Electric System
RV, 5.25% 7/1/06............. 722,246
240,000 Virgin Islands, Water & Power
Authority Electric System RV,
5.25%, 7/1/08................ 238,848
1,500,000 Virgin Islands, Water & Power
Authority, Electric System
RV, ACA- CBI MBIA-IBC
insured, 5.3%, 7/1/21........ 1,465,725
-----------
6,535,623
-----------
Total Municipal Bonds
(cost $29,717,456) 29,973,344
-----------
<CAPTION>
SHARES
----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (2.8%)
847,858 Bankers Trust Investment Tax-
Free Money Market Fund, 4.15%
(cost $847,858).............. 847,858
-----------
Total Investments (100.0%)
(cost $30,565,314) $30,821,202
===========
</TABLE>
13 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
NEW HAMPSHIRE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
MUNICIPAL BONDS (100.0%)
GENERAL OBLIGATION -- BOND BANK (3.9%)
$ 5,000 New Hampshire Muni Bond Bank,
Pinkerton Academy Project,
AMBAC insured, 5.25%,
6/1/07....................... $ 5,093
50,000 New Hampshire Muni Bond Bank,
Series A, 5.15%, 11/1/08..... 50,584
25,000 New Hampshire Muni Bond Bank,
Series K, 6.75%, 1/15/08, P/R
USG 1/15/01 @ 102............ 25,664
25,000 New Hampshire Muni Bond Bank,
Series 91 E, 6.90%,
8/15/06...................... 26,019
50,000 New Hampshire Muni Bond Bank,
Series 92 H, 6.35%,
7/15/06...................... 52,225
175,000 New Hampshire Muni Bond Bank,
Series 92 H, 6.50%,
7/15/08...................... 183,232
85,000 New Hampshire Muni Bond Bank,
Series 94 C, State
Guaranteed, 5.80%, 8/15/08... 88,818
10,000 New Hampshire Muni Bond Bank,
Series 92 D, State
Guaranteed, 6.00%, 1/15/11... 10,491
-----------
442,126
-----------
GENERAL OBLIGATION -- LOCAL (26.3%)
155,000 Bedford, NH, UTGO Bonds, 6.70%,
8/1/12....................... 161,131
225,000 Belknap County, NH, GO Bonds,
MBIA insured, 5.20%,
6/15/13...................... 224,465
50,000 Concord, NH, GO Bonds, FGIC
insured, 6.05%, 10/15/08..... 53,155
100,000 Concord, NH, SD, GO Bonds,
4.70%, 10/15/07.............. 99,885
100,000 Concord, NH, SD, GO Bonds,
5.00%, 10/15/10.............. 100,676
100,000 Concord, NH, UTGO Bonds, MBIA
insured, 5.00%, 1/15/09...... 100,709
50,000 Exeter, NH, UTGO Bonds, 5.10%,
6/15/05...................... 50,929
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- LOCAL, CONTINUED
25,000 Exeter, NH, UTGO Bonds, 5.30%,
6/15/08...................... 25,804
$ 90,000 Farmington, NH, SD, GO Bonds,
AMBAC insured, 5.55%,
2/15/02...................... $ 91,276
50,000 Franklin, NH, GO Bonds, MBIA
insured, 5.20%, 10/1/07...... 51,071
100,000 Goffstown, NH, GO Bonds, SD,
AMBAC insured, 5.25%,
8/15/11...................... 101,000
60,000 Gorham, NH, GO Bonds, FSA
insured, 4.80%, 4/1/13....... 57,065
65,000 Gorham, NH, GO Bonds, FSA
insured, 4.85%, 4/1/14....... 61,454
45,000 Keene, NH, UTGO Bonds, 5.15%,
10/15/11..................... 45,534
25,000 Lisbon, NH, Regional SD UTGO
Bonds, 5.60%, 2/1/10......... 25,543
50,000 Londonderry, NH, UTGO Bonds,
5.40%, 1/15/14............... 50,028
250,000 Manchester, NH, Public
Improvement Bonds, 5.50%,
11/01/12..................... 255,890
225,000 Manchester, NH, UTGO Bonds,
General Improvement RV,
Series B, MBIA insured,
5.00%, 1/2/09................ 223,407
250,000 Manchester, NH, UTGO Bonds,
Public Improvement Bonds,
Series 93 A, 5.30%, 7/1/07... 256,900
15,000 Manchester, NH, UTGO Bonds,
Series 93 A, 5.00%, 7/1/04... 15,263
15,000 Mascenic, NH, Regional SD #1,
Lot C, AMBAC insured, 7.20%,
12/15/07..................... 17,202
20,000 Nashua, NH, UTGO Bonds, 5.70%,
7/15/07...................... 20,695
15,000 Nashua, NH, UTGO Bonds, 6.80%,
7/1/09....................... 15,563
100,000 Nashua, NH, UTGO Bonds, AMBAC
insured, 5.35%, 7/15/06...... 103,232
35,000 Nashua, NH, UTGO Bonds, FGIC
insured, 5.25%, 11/2/09...... 35,844
100,000 Nashua, NH, UTGO Public
Improvement Bonds, 6.80%,
7/1/07....................... 103,754
</TABLE>
14 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
NEW HAMPSHIRE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
GENERAL OBLIGATION -- LOCAL, CONTINUED
$ 50,000 Oyster River, NH, Cooperative
SD State Guaranteed, GO
Bonds, Lot A, 5.75%,
6/15/07...................... $ 52,562
100,000 Oyster River, NH, Cooperative
SD State Guaranteed, GO
Bonds, Lot A, 5.85%,
6/15/08...................... 105,296
30,000 Salem, NH, GO Bonds, MBIA
insured, 6.45%, 3/1/04....... 30,815
400,000 Stratham, NH, GO SD Bonds,
AMBAC insured, 5.10%,
1/15/08...................... 408,892
-----------
2,945,040
-----------
GENERAL OBLIGATION -- PUERTO RICO (0.2%)
25,000 Puerto Rico, GO Bonds, MBIA
insured, 5.75%, 7/1/10....... 27,248
-----------
GENERAL OBLIGATION -- STATE (11.9%)
10,000 New Hampshire State, GO Bonds,
6.00%, 9/1/05................ 10,583
350,000 New Hampshire State, GO Bonds,
Capital Improvement, 5.50%,
12/1/06...................... 365,148
1,000,000 New Hampshire State, GO Bonds,
Capital Improvement, Series
A, 5.13%, 10/1/17............ 954,340
-----------
1,330,071
-----------
REVENUE -- GUAM (0.5%)
30,000 Guam Government LO Highway RV,
Series A, FSA insured, 6.25%,
5/1/07....................... 31,303
20,000 Guam Power Authority RV, Series
A, AMBAC insured, 6.30%,
10/1/02, COLL USG, P/R
10/1/02 @ 102................ 21,131
-----------
52,434
-----------
REVENUE -- HEALTH & EDUCATION (28.3%)
25,000 Hudson, NH, Educational
Facilities RV, SD, Lot B,
7.30%, 12/15/06.............. 28,392
20,000 Hudson, NH, Educational
Facilities RV, SD, Lot B,
7.30%, 12/15/08.............. 23,299
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- HEALTH & EDUCATION, CONTINUED
50,000 New Hampshire, HEFA RV, Concord
Hospital Issue, AMBAC
insured, 5.40%, 10/1/06...... 51,616
$ 750,000 New Hampshire, HEFA RV, Kendal
at Hanover Issue, Bank of
Ireland, LOC, 5.80%,
10/1/12...................... $ 753,668
160,000 New Hampshire, HEHFA RV, 6.00%,
10/1/13...................... 169,080
90,000 New Hampshire, HEHFA RV, 6.00%,
10/1/13...................... 89,159
35,000 New Hampshire, HEHFA RV, Elliot
Hospital of Manchester,
6.50%, 10/1/11............... 36,223
460,000 New Hampshire, HEHFA RV, Elliot
Hospital of Manchester,
6.25%, 10/1/21............... 467,346
100,000 New Hampshire, HEHFA RV, Exeter
Hospital, 5.25%, 10/1/00..... 100,003
50,000 New Hampshire, HEHFA RV, Exeter
Hospital/Healthcare Issue,
5.50%, 10/1/13............... 50,273
200,000 New Hampshire, HEHFA RV, FGIC
insured, 5.45% VR,
7/1/21++..................... 200,000
165,000 New Hampshire, HEHFA RV,
Franklin Pierce College,
Series 94, 5.50%, 10/1/04.... 169,801
90,000 New Hampshire, HEHFA RV,
Franklin Pierce College,
Series 94, 5.50%, 10/1/04.... 89,951
5,000 New Hampshire, HEHFA RV,
Hitchcock Clinic Issue, MBIA
insured, 6.00%, 7/1/15....... 5,123
85,000 New Hampshire, HEHFA RV, Lakes
Region Hospital Association,
5.75%, 1/1/11................ 86,936
15,000 New Hampshire, HEHFA, RV, Mary
Hitchcock Memorial Hospital,
FGIC insured, 4.90%,
8/15/01...................... 15,054
50,000 New Hampshire, HEHFA RV, Nashua
Memorial Hospital, 5.50%,
10/1/02...................... 50,240
</TABLE>
15 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
NEW HAMPSHIRE TAXSAVER BOND FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- HEALTH & EDUCATION, CONTINUED
$ 400,000 New Hampshire, HEHFA RV, River
Woods at Exeter, 9.00%,
3/1/23....................... $ 446,392
125,000 New Hampshire, HEHFA RV, Rivier
College, 6.90%, 1/1/13....... 133,008
30,000 New Hampshire, HEHFA RV,
University System of New
Hampshire, MBIA insured,
Series 92, 6.00%, 7/1/07..... 31,196
175,000 New Hampshire, HEHFA RV,
Wentworth-Douglass Hospital,
5.40%, 1/1/07................ 179,202
-----------
3,175,962
-----------
REVENUE -- HOUSING (9.1%)
10,000 New Hampshire, HSG AUTH, SFM
RV, 6.75%, 7/1/04............ 10,189
75,000 New Hampshire, HSG AUTH, SFM
RV, Series A, 5.25%,
1/1/07....................... 75,489
450,000 New Hampshire, HSG AUTH, SFM
RV, Series B 5.60%, 1/1/06... 455,459
95,000 New Hampshire, HSG AUTH, SFM
RV, Series B, 5.90%,
1/1/07....................... 98,136
80,000 New Hampshire, HSG AUTH, SFM
RV, Series B, 6.00%,
1/1/08....................... 80,411
90,000 New Hampshire, HSG AUTH, SFM
RV, Series B, 6.00%,
7/1/08....................... 90,489
125,000 New Hampshire, SHF Authority,
Series SB, 4.85%, 1/1/05..... 123,874
90,000 New Hampshire, SHF Authority,
Series SB, 4.95%, 1/1/06..... 88,900
-----------
1,022,947
-----------
REVENUE -- INDUSTRIAL (1.4%)
140,000 Exeter, NH, UTGO Bonds, Sewer
Improvements, 6.25%,
1/15/07...................... 145,140
10,000 New Hampshire State, IDA Solid
Waste Disposal RV, Canal
Electric Co. Project, FGIC
insured, 7.38%, 12/1/20...... 10,250
-----------
155,390
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
---------- ------------------------------- -----------
<S> <C> <C>
REVENUE -- PUERTO RICO (0.6%)
$ 40,000 Puerto Rico, Industrial,
Medical & Environmental,
Pollution Control Facilities
Financing Authority, Abbott
Chemicals Inc. Project, Chase
Manhattan Bank, LOC, 6.50%,
7/1/09....................... $ 40,340
25,000 Puerto Rico, Infrastructure
Financing Authority RV, U/R
Balance, Series A, 7.75%,
7/1/08....................... 25,060
-----------
65,400
-----------
REVENUE -- TRANSPORTATION (14.6%)
305,000 New Hampshire State Turnpike
System RV, Series A, FGIC
insured, 7.00%, 11/1/06...... 332,718
1,175,000 New Hampshire State Turnpike
System RV, Series A, FGIC
insured, 6.75%, 11/1/11...... 1,298,187
-----------
1,630,905
-----------
REVENUE -- VIRGIN ISLANDS (3.2%)
10,000 Virgin Islands, HFA, SFM RV,
GNMA Mortgage Backed Series
A, 6.00%, 3/1/07............. 10,052
30,000 Virgin Islands, PFA RV, Series
B, Coll by USG, 7.25%,
10/1/07, P/R 10/1/00 @ 101... 30,307
235,000 Virgin Islands, PFA RV, Sub
Lien Fund Loan Notes, Series
D, 6.00%, 10/1/05............ 238,187
40,000 Virgin Islands, PFA, Tax RV,
Senior Lien, 5.50%,
10/1/22...................... 39,722
30,000 Virgin Islands, Water & Power
Authority, Electric System
RV, 5.25% 7/1/06............. 30,094
10,000 Virgin Islands, Water & Power
Authority Electric System RV,
5.25%, 7/1/08................ 9,952
-----------
358,314
-----------
Total Municipal Bonds
(cost $11,236,755) 11,205,837
-----------
Total Investments (100.0%)
(cost $11,236,755) $11,205,837
===========
</TABLE>
16 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
INVESTORS GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ----------------------------------- ----------
<S> <C> <C>
COMMON STOCK (97.1%)
BASIC MATERIALS (3.5%)
4,267 Air Products and Chemicals, Inc.... $ 153,612
1,090 Du Pont (E.I) de Nemours Co........ 45,166
----------
198,778
----------
CAPITAL GOODS (8.1%)
8,000 General Electric Co. .............. 461,500
----------
COMMUNICATIONS (5.8%)
2,720 SBC Communications, Inc............ 136,000
5,333 Vodafone Group plc ADR............. 197,321
----------
333,321
----------
CONSUMER STAPLES (5.0%)
2,933 PepsiCo, Inc....................... 134,918
4,000 Walt Disney Co..................... 153,000
----------
287,918
----------
ENERGY (9.5%)
2,292 Conoco, Inc. - Class B............. 61,740
3,200 Exxon Mobil Corp. ................. 285,200
2,400 Schlumberger Ltd................... 197,550
----------
544,490
----------
FINANCIAL (30.0%)
4,000 American International Group,
Inc. ............................ 382,750
2,436 Bank of America Corp.*............. 127,586
42 Berkshire Hathaway, Inc. - Class B
*................................ 86,940
2,667 Fannie Mae......................... 190,691
</TABLE>
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ----------------------------------- ----------
<S> <C> <C>
FINANCIAL, CONTINUED
6,000 Fiserv, Inc.*...................... 359,250
5,334 Merrill Lynch & Co., Inc. ......... $ 352,044
4,800 Wells Fargo Co., Inc. ............. 220,500
----------
1,719,761
----------
HEALTH CARE (15.5%)
4,267 Abbott Laboratories................ 202,949
3,733 American Home Products Corp. ...... 211,148
2,133 Johnson & Johnson.................. 200,369
3,680 Merck & Co., Inc................... 273,930
----------
888,396
----------
TECHNOLOGY (19.7%)
2,133 Automatic Data Processing,
Inc. ............................ 142,645
1,600 Computer Sciences Corp.*........... 118,800
2,000 IBM Corp. ......................... 225,000
5,333 Oracle Corp.*...................... 419,974
3,200 United Technologies Corp........... 221,600
----------
1,128,019
----------
Total Common Stock
(cost $1,396,809) 5,562,183
----------
SHORT-TERM HOLDINGS (2.9%)
165,360 Bankers Trust Institutional Cash
Management Fund, 6.49%
(cost $165,360).................. 165,360
----------
Total Investments (100.0%)
(cost $1,562,169) $5,727,543
==========
</TABLE>
17 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ---------------------------------- -----------
<S> <C> <C>
COMMON STOCK (69.4%)
BASIC MATERIALS (5.1%)
16,200 Centex Corp. ..................... $ 520,425
4,660 Southdown, Inc. .................. 332,025
-----------
852,450
-----------
COMMUNICATIONS (6.3%)
13,000 AT&T Corp. ....................... 381,875
7,300 SBC Communications, Inc........... 365,000
5,560 Telefonos de Mexico SA ADR........ 295,723
-----------
1,042,598
-----------
CONSUMER CYCLICAL (3.8%)
20,000 Brunswick Corp. .................. 365,000
20,000 Fleetwood Enterprises, Inc. ...... 271,250
-----------
636,250
-----------
CONSUMER STAPLES (2.3%)
4,000 Philip Morris Cos., Inc. ......... 117,750
5,500 Safeway, Inc.*.................... 256,781
-----------
374,531
-----------
ENERGY (5.5%)
3,900 Chevron Corp...................... 332,475
4,800 Conoco, Inc. - Class B............ 129,300
16,000 USX-Marathon Group, Inc........... 454,000
-----------
915,775
-----------
FINANCIAL (10.8%)
13,000 Associates First Capital Corp..... 494,000
24,000 Banknorth Group, Inc.............. 429,000
6,925 Chase Manhattan Corp. ............ 319,848
14,000 Washington Mutual, Inc. .......... 557,375
-----------
1,800,223
-----------
HEALTH CARE (10.5%)
11,700 Abbott Laboratories............... 556,481
2,500 Merck & Co., Inc. ................ 186,094
8,200 Procter & Gamble Co. ............. 549,400
9,800 Schering-Plough Corp. ............ 455,700
-----------
1,747,675
-----------
TECHNOLOGY (21.1%)
17,060 Compaq Computer Corp. ............ 470,513
3,600 Computer Sciences Corp.*.......... 267,300
6,500 Fairchild Semiconductor Corp.*.... 182,813
3,600 IBM Corp.......................... 405,000
8,300 Intel Corp........................ 345,488
8,500 Litton Industries, Inc.*.......... $ 379,844
</TABLE>
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ---------------------------------- -----------
<S> <C> <C>
TECHNOLOGY, CONTINUED
6,000 Lucent Technologies, Inc.......... 183,375
1,000 Microsoft Corp.*.................. 60,250
4,000 Northrop Grumman Corp............. 363,500
10,000 Teleflex, Inc..................... 343,750
3,000 Tellabs, Inc.*.................... 143,250
5,400 United Technologies Corp.......... 373,950
-----------
3,519,033
-----------
UTILITIES (4.0%)
23,000 Teco Energy, Inc. ................ 661,250
-----------
Total Common Stock
(cost $10,549,154) 11,549,785
-----------
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
CORPORATE BONDS & NOTES (23.4%)
200,000 Associates Corp. of North America,
6.10%, 1/15/05.................. 193,347
100,000 Avco Financial Services, 7.38%,
8/15/01......................... 100,247
150,000 Bear Stearns Cos., Inc., 6.63%,
1/15/04......................... 147,631
200,000 Boeing Co., 6.35%, 6/15/03........ 198,423
200,000 Chase Manhattan Corp., 6.25%,
1/15/06......................... 192,913
150,000 Crown, Cork, & Seal, 6.75%,
12/15/03........................ 136,570
100,000 Crown, Cork, & Seal, 6.75%,
12/15/03........................ 94,672
300,000 Diageo Capital plc, 5.63%,
6/24/04......................... 296,832
250,000 Dow Chemical Co., 5.97%, 1/15/09.. 230,138
300,000 Goldman Sachs Group, Inc., 6.65%,
5/15/09......................... 284,232
200,000 Ingersoll-Rand Co., 6.58%,
12/5/05......................... 195,791
100,000 Lockheed Martin Corp., 6.85%,
5/15/01......................... 99,638
200,000 MCI WorldCom, Inc., 6.13%,
8/15/01......................... 198,782
100,000 Morgan Stanley Dean Witter & Co.,
5.75%, 2/15/01.................. 99,660
200,000 New York Telephone Co., 6.00%,
4/15/08......................... 183,506
177,000 Philip Morris Cos., Inc., 7.63%,
5/15/02......................... 176,202
</TABLE>
18 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
PAYSON BALANCED FUND
SCHEDULE OF INVESTMENTS (continued)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
CORPORATE BONDS & NOTES, CONTINUED
300,000 Potomac Electric Power Co., 5.63%,
10/15/03........................ $ 289,334
200,000 Sears Roebuck Acceptance Corp.,
6.75%, 9/15/05.................. 194,315
300,000 Sony Corp., 6.13%, 3/4/03......... 295,811
200,000 Wal-Mart Stores, Inc., 6.88%,
8/10/09......................... 197,990
100,000 Xerox, 5.50%, 11/15/03............ 92,856
-----------
Total Corporate Bonds & Notes
(cost $4,059,517) 3,898,890
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.7%)
FHLMC (2.4%)
200,000 Series 1491 GB, 6.90%, 11/15/21... 197,170
200,000 Series 1678 C, 6.00%, 8/15/08..... 193,990
-----------
391,160
-----------
FNMA (2.3%)
400,000 Series 1992-184 C, 7.00%,
10/25/21........................ 387,776
-----------
Total Collateralized Mortgage Obligations
(cost $798,125) 778,936
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
--------
<S> <C> <C>
GOVERNMENT AGENCY NOTES (0.6%)
100,000 FNMA, 5.63%, 5/14/04.............. $ 97,192
-----------
Total Government Agency Notes
(cost $96,673) 97,192
-----------
MORTGAGE BACKED SECURITIES (1.9%)
GNMA (1.9%)
71,707 Pool 394795, 7.50%, 10/15/10...... 72,948
254,676 Pool 457827, 6.00%, 10/15/13...... 246,699
-----------
Total Mortgage Backed Securities
(cost $330,872) 319,647
-----------
Total Investments (100.0%)
(cost $15,834,341) $16,644,450
===========
</TABLE>
19 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
PAYSON VALUE FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ---------------------------------- -----------
<S> <C> <C>
COMMON STOCK (98.1%)
BASIC MATERIALS (6.0%)
12,000 Air Products & Chemicals, Inc. ... $ 432,000
15,000 USX-U.S. Steel Group, Inc. ....... 227,813
17,000 Willamette Industries, Inc........ 476,000
-----------
1,135,813
-----------
COMMUNICATIONS (9.9%)
20,700 AT&T Corp......................... 608,062
6,000 Telefonos de Mexico SA ADR........ 319,125
9,760 Verizon Communications............ 472,750
15,000 WorldCom, Inc.*................... 455,625
-----------
1,855,562
-----------
CONSUMER CYCLICAL (5.8%)
5,000 Federated Department Stores,
Inc.*........................... 130,625
15,000 Nike, Inc. - Class B.............. 600,937
16,000 TJX Cos., Inc. ................... 360,000
-----------
1,091,562
-----------
CONSUMER STAPLES (10.3%)
8,000 Bestfoods, Inc.................... 582,000
7,000 CVS Corp. ........................ 324,187
30,000 Ruddick Corp. .................... 416,250
5,000 Safeway, Inc.*.................... 233,438
10,000 Walt Disney Co.................... 382,500
-----------
1,938,375
-----------
ENERGY (6.9%)
4,000 Chevron Corp...................... 341,000
5,000 Exxon Mobil Corp. ................ 445,625
8,000 Phillips Petroleum Co............. 502,000
-----------
1,288,625
-----------
FINANCIAL (20.7%)
20,000 Banknorth Group, Inc.............. 357,500
10,500 Chase Manhattan Corp. ............ 484,969
16,000 Citigroup, Inc.................... 865,000
11,844 FleetBoston Financial Corp........ 461,916
12,000 Merrill Lynch & Co., Inc. ........ 792,000
15,000 North Fork Bancorp., Inc.......... 324,375
13,330 Wells Fargo & Co. ................ 612,347
-----------
3,898,107
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
-------- ---------------------------------- -----------
<S> <C> <C>
HEALTH CARE (14.2%)
10,000 Bristol-Myers Squibb Co. ......... $ 571,250
8,000 Merck & Co., Inc. ................ 595,500
6,000 Procter & Gamble Co. ............. 402,000
12,000 Schering-Plough Corp.............. 558,000
15,000 Tenet Healthcare Corp............. 545,625
-----------
2,672,375
-----------
TECHNOLOGY (24.3%)
25,000 Compaq Computer Corp. ............ 689,500
5,000 Cooper Cameron Corp.*............. 368,438
5,000 Hewlett-Packard Co. .............. 485,000
14,000 Intel Corp........................ 582,750
8,000 Litton Industries, Inc.*.......... 357,500
3,000 Lucent Technologies, Inc.......... 91,687
6,000 Microsoft Corp.*.................. 361,500
7,000 Teleflex, Inc..................... 240,625
12,000 Texas Instruments, Inc............ 566,250
25,000 Timken Co......................... 342,188
7,000 United Technologies Corp.......... 484,750
-----------
4,570,188
-----------
Total Common Stock
(cost $13,582,446) 18,450,607
-----------
SHORT-TERM HOLDINGS (1.9%)
353,605 Bankers Trust Institutional Cash
Management Fund, 6.49% (cost
$353,605)....................... 353,605
-----------
Total Investments (100.0%)
(cost $13,936,051) $18,804,212
===========
</TABLE>
20 FORUM FUNDS(R)
See Notes to Schedules of Investments and Notes to Financial Statements.
<PAGE>
--------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
++ Certain variable rate securities are deemed to have a maturity remaining
until the next readjustment of the interest rate or the longer of the demand
period or readjustment. The interest rates shown reflect the rate in effect
on September 30, 2000.
+ Securities that may be resold to "qualified institutional buyers" under Rule
144A of the Securities Act of 1933, as amended ( the "1933 Act") or
securities offered pursuant to Section 4(2) of the 1933 Act.
* 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
COLL Collateralized
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
Muni Municipal
P/R Prerefunded
PBA Public Building Authority
PCR Pollution Control Revenue
PFA Public Finance Authority
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
</TABLE>
See Notes to Financial Statements. 21 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE
INVESTORS INVESTORS TAXSAVER TAXSAVER
HIGH GRADE BOND BOND BOND
BOND FUND FUND FUND FUND
--------- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS
Investments (Note 2):
Investments, at cost.................................. $24,272,769 $15,133,907 $21,456,780 $30,565,314
Net unrealized appreciation (depreciation)............ (607,803) (1,389,869) (316,658) 255,888
----------- ----------- ----------- -----------
Total investments, at value............................. 23,664,966 13,744,038 21,140,122 30,821,202
Cash.................................................... -- 25,621 -- --
Interest, dividends and other receivables............... 401,412 226,085 360,518 642,543
Receivable for securities sold.......................... -- -- -- --
Receivable for fund shares sold......................... -- 829 -- --
Organization costs, net of amortization (Note 2)........ 2,541 -- -- --
----------- ----------- ----------- -----------
Total Assets................................................ 24,068,919 13,996,573 21,500,640 31,463,745
----------- ----------- ----------- -----------
LIABILITIES
Dividends payable....................................... 114,165 52,035 48,759 44,287
Payable for fund shares redeemed........................ -- 110,001 164,695 --
Payable to custodian for overdraft...................... -- -- -- --
Payable to custodian (Note 3)........................... 541 787 585 604
Payable to administrator (Note 3)....................... 1,986 2,320 1,976 2,595
Payable to adviser (Note 3)............................. 2,116 7,220 3,369 2,940
Accrued expenses and other liabilities.................. 12,441 16,008 17,126 12,985
----------- ----------- ----------- -----------
Total Liabilities........................................... 131,249 188,371 236,510 63,411
----------- ----------- ----------- -----------
NET ASSETS.................................................. $23,937,670 $13,808,202 $21,264,130 $31,400,334
=========== =========== =========== ===========
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $25,122,799 $16,405,666 $21,777,777 $31,232,951
Undistributed (distributions in excess of) net
investment income..................................... (27) -- 8,267 (15)
Unrealized appreciation (depreciation) on investments... (607,803) (1,389,869) (316,658) 255,888
Accumulated net realized gain (loss).................... (577,299) (1,207,595) (205,256) (88,490)
----------- ----------- ----------- -----------
NET ASSETS.................................................. $23,937,670 $13,808,202 $21,264,130 $31,400,334
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST............................... 2,498,185 1,439,176 2,096,732 2,927,883
=========== =========== =========== ===========
NET ASSET VALUE, AND REDEMPTION PRICE PER SHARE............. $ 9.58 $ 9.59 $ 10.14 $ 10.72
=========== =========== =========== ===========
OFFERING PRICE PER SHARE (NAV + (1-MAXIMUM SALES LOAD))..... $ 9.95 $ 9.96 $ 10.54 $ 11.05
=========== =========== =========== ===========
MAXIMUM SALES LOAD.......................................... 3.75% 3.75% 3.75% 3.00%
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements. 22 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW HAMPSHIRE INVESTORS PAYSON PAYSON
TAXSAVER BOND GROWTH BALANCED VALUE
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS
Investments (Note 2):
Investments, at cost.................................. $11,236,755 $1,562,169 $15,834,341 $13,936,051
Net unrealized appreciation (depreciation)............ (30,918) 4,165,374 810,109 4,868,161
----------- ---------- ----------- -----------
Total investments, at value............................. 11,205,837 5,727,543 16,644,450 18,804,212
Cash.................................................... 6,060 -- -- --
Interest, dividends and other receivables............... 217,694 6,962 83,089 23,111
Receivable for securities sold.......................... -- -- 228,137 --
Receivable for fund shares sold......................... -- -- 1,297 2,517
Organization costs, net of amortization (Note 2)........ -- 6,745 -- --
----------- ---------- ----------- -----------
Total Assets................................................ 11,429,591 5,741,250 16,956,973 18,829,840
----------- ---------- ----------- -----------
LIABILITIES
Dividends payable....................................... 11,710 -- 36,099 2,350
Payable for fund shares redeemed........................ -- -- 7,132 --
Payable to custodian for overdraft...................... -- -- 56,580 --
Payable to custodian (Note 3)........................... 433 360 771 517
Payable to administrator (Note 3)....................... -- 930 2,094 2,374
Payable to adviser (Note 3)............................. -- 3,022 7,507 11,763
Accrued expenses and other liabilities.................. 11,447 11,525 19,207 18,240
----------- ---------- ----------- -----------
Total Liabilities........................................... 23,590 15,837 129,390 35,244
----------- ---------- ----------- -----------
NET ASSETS.................................................. $11,406,001 $5,725,413 $16,827,583 $18,794,596
=========== ========== =========== ===========
COMPONENTS OF NET ASSETS
Paid-in capital......................................... $11,521,460 $1,618,192 $15,065,511 $11,387,486
Undistributed (distributions in excess of) net
investment income..................................... 489 (16,943) (29,937) (686)
Unrealized appreciation (depreciation) on investments... (30,918) 4,165,374 810,109 4,868,161
Accumulated net realized gain (loss).................... (85,030) (41,210) 981,900 2,539,635
----------- ---------- ----------- -----------
NET ASSETS.................................................. $11,406,001 $5,725,413 $16,827,583 $18,794,596
=========== ========== =========== ===========
SHARES OF BENEFICIAL INTEREST............................... 1,092,746 523,222 1,266,726 881,278
=========== ========== =========== ===========
NET ASSET VALUE, AND REDEMPTION PRICE PER SHARE............. $ 10.44 $ 10.94 $ 13.28 $ 21.33
=========== ========== =========== ===========
OFFERING PRICE PER SHARE (NAV + (1-MAXIMUM SALES LOAD))..... $ 10.76 $ 11.40 $ 13.83 $ 22.22
=========== ========== =========== ===========
MAXIMUM SALES LOAD.......................................... 3.00% 4.00% 4.00% 4.00%
=========== ========== =========== ===========
</TABLE>
See Notes to Financial Statements. 23 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAINE
INVESTORS INVESTORS TAXSAVER TAXSAVER
HIGH GRADE BOND BOND BOND
BOND FUND FUND FUND FUND
--------- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income......................................... $ 845,852 $1,621,583 $750,061 $ 816,760
Dividend income......................................... -- 208,416 -- --
---------- ---------- -------- ----------
Total Investment Income..................................... 845,852 1,829,999 750,061 816,760
---------- ---------- -------- ----------
EXPENSES
Investment advisory (Note 3)............................ 51,654 85,251 55,548 62,736
Administrator (Note 3).................................. 25,827 42,625 27,774 31,368
Transfer agency (Note 3)................................ 38,584 60,143 41,281 52,289
Custody (Note 3)........................................ 3,312 4,258 3,565 3,190
Accounting (Note 3)..................................... 18,000 18,000 18,000 24,000
Audit................................................... 8,349 10,110 8,506 7,633
Legal................................................... 38 65 41 4,732
Compliance.............................................. 1,395 2,441 2,377 3,318
Trustees................................................ 537 945 582 636
Amortization of organization costs (Note 2)............. 515 -- -- --
Pricing................................................. 1,306 1,686 3,120 10,078
Miscellaneous........................................... 3,930 4,074 4,195 2,949
---------- ---------- -------- ----------
Total Expenses.............................................. 153,447 229,598 164,989 202,929
Fees waived (Note 4).................................... (63,075) (76,381) (78,643) (105,039)
---------- ---------- -------- ----------
Net Expenses................................................ 90,372 153,217 86,346 97,890
---------- ---------- -------- ----------
NET INVESTMENT INCOME....................................... 755,480 1,676,782 663,715 718,870
---------- ---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments................. (276,703) (505,039) 103,775 29,976
Net change in unrealized appreciation (depreciation) on
investments........................................... 567,130 2,211,204 218,652 267,946
---------- ---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 290,427 1,706,165 322,427 297,922
---------- ---------- -------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $1,045,907 $3,382,947 $986,142 $1,016,792
========== ========== ======== ==========
</TABLE>
See Notes to Financial Statements. 24 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW HAMPSHIRE INVESTORS PAYSON PAYSON
TAXSAVER BOND GROWTH BALANCED VALUE
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income......................................... $292,493 $ 13,053 $ 184,123 $ 11,894
Dividend income......................................... -- 90,061 118,198 141,389
-------- ------------ ---------- ----------
Total Investment Income..................................... 292,493 103,114 302,321 153,283
-------- ------------ ---------- ----------
EXPENSES
Investment advisory (Note 3)............................ 23,056 42,837 54,094 77,680
Administrator (Note 3).................................. 11,528 13,181 18,031 19,420
Transfer agency (Note 3)................................ 22,482 22,721 31,497 34,171
Custody (Note 3)........................................ 2,459 2,776 3,021 3,134
Accounting (Note 3)..................................... 18,000 18,000 18,000 18,000
Audit................................................... 431 4,644 1,456 4,850
Legal................................................... 17 16 26 585
Compliance.............................................. 2,618 199 4,588 3,089
Trustees................................................ 234 279 365 394
Amortization of organization costs (Note 2)............. -- 1,518 -- --
Pricing................................................. 6,838 482 1,467 685
Miscellaneous........................................... 1,227 1,756 1,897 7,182
-------- ------------ ---------- ----------
Total Expenses.............................................. 88,890 108,409 134,442 169,190
Fees waived (Note 4).................................... (52,932) (22,045) (26,556) (25,416)
-------- ------------ ---------- ----------
Net Expenses................................................ 35,958 86,364 107,886 143,774
-------- ------------ ---------- ----------
NET INVESTMENT INCOME....................................... 256,535 16,750 194,435 9,509
-------- ------------ ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments................. 14,443 (17,270) 1,119,279 1,163,851
Net change in unrealized appreciation (depreciation) on
investments........................................... 108,515 (10,724,935) 107,074 (1,635,902)
-------- ------------ ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 122,958 (10,742,205) 1,226,353 (472,051)
-------- ------------ ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $379,493 $(10,725,455) $1,420,788 $ (462,542)
======== ============ ========== ==========
</TABLE>
See Notes to Financial Statements. 25 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 2000 AND THE PERIOD ENDED SEPTEMBER 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTORS HIGH INVESTORS BOND
GRADE BOND FUND FUND
---------------------- -------------------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1999.................................. $35,753,709 $ 70,445,537
----------- ------------
OPERATIONS
Net investment income..................................... 1,895,321 4,221,812
Net realized gain on investments.......................... (300,596) (702,555)
Net change in unrealized appreciation (depreciation) on
investments............................................. (1,314,931) (3,147,442)
----------- ------------
Net Increase in Net Assets Resulting from Operations........ 279,794 371,815
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (1,895,321) (4,221,812)
In excess of net investment income........................ (27) --
Net realized gain on investments.......................... (106,552) --
In excess of gain on investments.......................... -- --
----------- ------------
Total Distributions to Shareholders......................... (2,001,900) (4,221,812)
----------- ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 1,907,929 198,970 5,765,203 577,148
Reinvestment of distributions............................. 126,642 13,422 616,156 62,388
Redemption of shares...................................... (7,832,110) (830,502) (22,545,122) (2,334,616)
----------- -------- ------------ ----------
Net Increase (Decrease) in Capital Transactions............. (5,797,539) (618,110) (16,163,763) (1,695,080)
----------- ======== ------------ ==========
Net Increase (Decrease) in Net Assets....................... (7,519,645) (20,013,760)
----------- ------------
NET ASSETS--MARCH 31, 2000
(Including line (a))...................................... 28,234,064 50,431,777
----------- ------------
OPERATIONS
Net investment income..................................... 755,480 1,676,782
Net realized gain (loss) on investments................... (276,703) (505,039)
Net change in unrealized appreciation (depreciation) on
investments............................................. 567,130 2,211,204
----------- ------------
Net Increase (Decrease) in Net Assets Resulting from
Operations................................................ 1,045,907 3,382,947
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (755,480) (1,676,782)
Net realized gain on investments.......................... -- --
----------- ------------
Total Distribution to Shareholders.......................... (755,480) (1,676,782)
----------- ------------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 557,784 59,736 487,268 52,371
Reinvestment of distributions............................. 60,241 6,435 314,990 33,348
Redemption of shares...................................... (5,204,846) (552,821) (39,131,998) (3,826,745)
----------- -------- ------------ ----------
Net Increase (Decrease) in Capital Transactions............. (4,586,821) (486,650) (38,329,740) (3,741,026)
----------- ======== ------------ ==========
Net Increase (Decrease) in Net Assets....................... (4,296,394) (36,623,575)
----------- ------------
NET ASSETS--SEPTEMBER 30, 2000
(Including line (b))...................................... $23,937,670 $ 13,808,202
=========== ============
(a) Accumulated undistributed (distributions in excess of)
net investment income March 31, 2000.................. $ (27) $ --
=========== ============
(b) Accumulated undistributed (distributions in excess of)
net investment income, September 30, 2000............. $ (27) $ --
=========== ============
</TABLE>
See Notes to Financial Statements. 26 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 2000 AND THE PERIOD ENDED SEPTEMBER 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXSAVER MAINE TAXSAVER
BOND FUND BOND FUND
---------------------- ----------------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1999.................................. $37,447,179 $32,659,246
----------- -----------
OPERATIONS
Net investment income..................................... 1,531,170 1,463,102
Net realized gain on investments.......................... (309,031) (117,360)
Net change in unrealized appreciation (depreciation) on
investments............................................. (1,523,558) (1,219,370)
----------- -----------
Net Increase in Net Assets Resulting from Operations........ (301,419) 126,372
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (1,531,170) (1,463,102)
In excess of net investment income........................ -- (15)
Net realized gain on investments.......................... -- (21,390)
In excess of gain on investments.......................... -- (1,121)
----------- -----------
Total Distributions to Shareholders......................... (1,531,170) (1,485,628)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 2,798,493 273,055 6,499,166 589,162
Reinvestment of distributions............................. 448,541 44,049 904,112 84,641
Redemption of shares...................................... (9,681,197) (944,871) (6,765,315) (617,405)
----------- -------- ----------- --------
Net Increase (Decrease) in Capital Transactions............. (6,434,163) (627,767) 637,963 56,398
----------- ======== ----------- ========
Net Increase (Decrease) in Net Assets....................... (8,266,752) (721,293)
----------- -----------
NET ASSETS--MARCH 31, 2000
(Including line (a))...................................... 29,180,427 31,937,953
----------- -----------
OPERATIONS
Net investment income..................................... 663,715 718,870
Net realized gain (loss) on investments................... 103,775 29,976
Net change in unrealized appreciation (depreciation) on
investments............................................. 218,652 267,946
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from
Operations................................................ 986,142 1,016,792
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (663,715) (718,870)
Net realized gain on investments.......................... -- --
----------- -----------
Total Distribution to Shareholders.......................... (663,715) (718,870)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 471,299 46,499 1,025,790 96,312
Reinvestment of distributions............................. 198,765 19,725 445,023 41,815
Redemption of shares...................................... (8,908,788) (871,703) (2,306,354) (217,048)
----------- -------- ----------- --------
Net Increase (Decrease) in Capital Transactions............. (8,238,724) (805,479) (835,541) (78,921)
----------- ======== ----------- ========
Net Increase (Decrease) in Net Assets....................... (7,916,297) (537,619)
----------- -----------
NET ASSETS--SEPTEMBER 30, 2000
(Including line (b))...................................... $21,264,130 $31,400,334
=========== ===========
(a) Accumulated undistributed (distributions in excess of)
net investment income March 31, 2000.................. $ 8,267 $ (15)
=========== ===========
(b) Accumulated undistributed (distributions in excess of)
net investment income, September 30, 2000............. $ 8,267 $ (15)
=========== ===========
</TABLE>
See Notes to Financial Statements. 27 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 2000 AND THE PERIOD ENDED SEPTEMBER 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW HAMPSHIRE
TAXSAVER BOND INVESTORS GROWTH
FUND FUND
---------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1999.................................. $15,227,214 $29,106,593
----------- -----------
OPERATIONS
Net investment income..................................... 650,250 99,540
Net realized gain on investments.......................... (94,841) 3,086,739
Net change in unrealized appreciation (depreciation) on
investments............................................. (607,259) (1,805,745)
----------- -----------
Net Increase in Net Assets Resulting from Operations........ (51,850) 1,380,534
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (650,250) (98,707)
In excess of net investment income........................ -- --
Net realized gain on investments.......................... -- (1,518,841)
In excess of gain on investments.......................... (2,495) --
----------- -----------
Total Distributions to Shareholders......................... (652,745) (1,617,548)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 2,026,085 193,804 92,402 8,052
Reinvestment of distributions............................. 468,920 45,012 1,512,596 138,136
Redemption of shares...................................... (5,373,166) (521,842) (9,651,733) (854,576)
----------- -------- ----------- ----------
Net Increase (Decrease) in Capital Transactions............. (2,878,161) (283,026) (8,046,735) (708,388)
----------- ======== ----------- ==========
Net Increase (Decrease) in Net Assets....................... (3,582,756) (8,283,749)
----------- -----------
NET ASSETS--MARCH 31, 2000
(Including line (a))...................................... 11,644,458 20,822,844
----------- -----------
OPERATIONS
Net investment income..................................... 256,535 16,750
Net realized gain (loss) on investments................... 14,443 (17,270)
Net change in unrealized appreciation (depreciation) on
investments............................................. 108,515 (10,724,935)
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from
Operations................................................ 379,493 (10,725,455)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (256,535) (34,633)
Net realized gain on investments.......................... -- (2,750,762)
----------- -----------
Total Distribution to Shareholders.......................... (256,535) (2,785,395)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 1,223,653 119,163 3,170 272
Reinvestment of distributions............................. 180,328 17,414 2,742,613 270,742
Redemption of shares...................................... (1,765,396) (171,284) (4,332,364) (1,547,821)
----------- -------- ----------- ----------
Net Increase (Decrease) in Capital Transactions............. (361,415) (34,707) (1,586,581) (1,276,807)
----------- ======== ----------- ==========
Net Increase (Decrease) in Net Assets....................... (238,457) (15,097,431)
----------- -----------
NET ASSETS--SEPTEMBER 30, 2000
(Including line (b))...................................... $11,406,001 $ 5,725,413
=========== ===========
(a) Accumulated undistributed (distributions in excess of)
net investment income March 31, 2000.................. $ 489 $ 940
=========== ===========
(b) Accumulated undistributed (distributions in excess of)
net investment income, September 30, 2000............. $ 489 $ (16,943)
=========== ===========
</TABLE>
See Notes to Financial Statements. 28 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 2000 AND THE PERIOD ENDED SEPTEMBER 30, 2000
(unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAYSON BALANCED PAYSON VALUE
FUND FUND
---------------------- ----------------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSETS--MARCH 31, 1999.................................. $23,189,073 $18,253,356
----------- -----------
OPERATIONS
Net investment income..................................... 445,725 42,479
Net realized gain on investments.......................... (32,807) 1,413,947
Net change in unrealized appreciation (depreciation) on
investments............................................. 447,875 1,573,965
----------- -----------
Net Increase in Net Assets Resulting from Operations........ 860,793 3,030,391
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (445,725) (42,479)
In excess of net investment income........................ (31,081) (54)
Net realized gain on investments.......................... (416,450) (611,758)
In excess of gain on investments.......................... (104,993) --
----------- -----------
Total Distributions to Shareholders......................... (998,249) (654,291)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 688,127 54,532 1,916,172 94,055
Reinvestment of distributions............................. 688,608 56,763 402,187 20,141
Redemption of shares...................................... (5,832,128) (471,568) (2,960,363) (145,485)
----------- -------- ----------- --------
Net Increase (Decrease) in Capital Transactions............. (4,455,393) (360,273) (642,004) (31,289)
----------- ======== ----------- ========
Net Increase (Decrease) in Net Assets....................... (4,592,849) 1,734,096
----------- -----------
NET ASSETS--MARCH 31, 2000
(Including line (a))...................................... 18,596,224 19,987,452
----------- -----------
OPERATIONS
Net investment income..................................... 194,435 9,509
Net realized gain (loss) on investments................... 1,119,279 1,163,851
Net change in unrealized appreciation (depreciation) on
investments............................................. 107,074 (1,635,902)
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from
Operations................................................ 1,420,788 (462,542)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income..................................... (192,870) (10,141)
Net realized gain on investments.......................... -- --
----------- -----------
Total Distribution to Shareholders.......................... (192,870) (10,141)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Sale of shares............................................ 100,893 7,920 635,055 29,171
Reinvestment of distributions............................. 119,905 9,322 6,206 138
Redemption of shares...................................... (3,217,357) (247,720) (1,361,434) (62,594)
----------- -------- ----------- --------
Net Increase (Decrease) in Capital Transactions............. (2,996,559) (230,478) (720,173) (33,285)
----------- ======== ----------- ========
Net Increase (Decrease) in Net Assets....................... (1,768,641) (1,192,856)
----------- -----------
NET ASSETS--SEPTEMBER 30, 2000
(Including line (b))...................................... $16,827,583 $18,794,596
=========== ===========
(a) Accumulated undistributed (distributions in excess of)
net investment income March 31, 2000.................. $ (31,502) $ (54)
=========== ===========
(b) Accumulated undistributed (distributions in excess of)
net investment income, September 30, 2000............. $ (29,937) $ (686)
=========== ===========
</TABLE>
See Notes to Financial Statements. 29 FORUM FUNDS(R)
<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, 2000 to September 30, 2000............ $ 9.46 $0.28 $ 0.12 $(0.28) $ -- $ 9.58
April 1, 1999 to March 31, 2000................ 9.92 0.55 (0.43) (0.55) (0.03) 9.46
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, 2000 to September 30, 2000............ 9.74 0.37 (0.15) (0.37) -- 9.59
April 1, 1999 to March 31, 2000................ 10.32 0.68 (0.58) (0.68) -- 9.74
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
TAXSAVER BOND FUND
April 1, 2000 to September 30, 2000............ 10.05 0.24 0.09 (0.24) -- 10.14
April 1, 1999 to March 31, 2000................ 10.61 0.48 (0.56) (0.48) -- 10.05
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
MAINE TAXSAVER BOND FUND
April 1, 2000 to September 30, 2000............ 10.62 0.24 0.10 (0.24) -- 10.72
April 1, 1999 to March 31, 2000................ 11.07 0.48 (0.44) (0.48) (0.01) 10.62
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
</TABLE>
(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).
See Notes to Financial Statements. 30 FORUM FUNDS(R)
<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>
4.27% $23,938 5.85%(c) 0.70%(c) 1.19%(c) 2%
1.35% 28,234 5.74% 0.70% 1.14% 13%
6.12% 35,754 5.68% 0.70% 1.12% 173%
(0.16%) 34,037 5.56%(c) 0.70%(c) 3.00%(c) 0%
2.36% 13,808 7.87%(c) 0.72%(c) 1.08%(c) 11%
1.13% 50,432 6.90% 0.70% 1.05% 34%
4.45% 70,446 6.33% 0.70% 1.02% 98%
10.98% 85,598 6.52% 0.70% 1.22% 117%
7.18% 22,190 6.94% 0.70% 1.45% 79%
9.84% 25,676 7.29% 0.43% 1.36% 43%
3.33% 21,264 4.78%(c) 0.62%(c) 1.19%(c) 19%
(0.74%) 29,180 4.68% 0.60% 1.16% 25%
4.95% 37,447 4.48% 0.60% 1.11% 62%
7.75% 39,203 4.95% 0.60% 1.36% 93%
5.15% 17,757 5.28% 0.60% 1.53% 34%
7.36% 17,915 5.35% 0.60% 1.48% 62%
3.28% 31,400 4.58%(c) 0.62%(c) 1.29%(c) 6%
0.43% 31,938 4.50% 0.60% 1.31% 23%
5.19% 32,659 4.42% 0.60% 1.32% 29%
7.94% 28,196 4.65% 0.60% 1.48% 16%
4.98% 25,827 4.77% 0.60% 1.56% 21%
7.34% 26,044 4.73% 0.60% 1.48% 34%
</TABLE>
See Notes to Financial Statements. 31 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Selected per share data and ratios for a share outstanding throughout each
period.
<TABLE>
<CAPTION>
NET REALIZED ENDING
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS NET
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE LOSS INVESTMENTS INCOME GAINS SHARE
----- ---- ----------- ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
NEW HAMPSHIRE TAXSAVER BOND FUND
April 1, 2000 to September 30, 2000............ $10.33 $0.23 $ 0.11 $(0.23) $ -- $10.44
April 1, 1999 to March 31, 2000................ 10.80 0.47 (0.47) (0.47) --(e) 10.33
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
INVESTORS GROWTH FUND
April 1, 2000 to September 30, 2000............ 11.57 (0.01) 1.00 (0.02) (1.60) 10.94
April 1, 1999 to March 31, 2000................ 11.60 0.04 0.67 (0.04) (0.70) 11.57
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, 2000 to September 30, 2000............ 12.42 0.14 0.86 (0.14) -- 13.28
April 1, 1999 to March 31, 2000................ 12.48 0.27 0.27 (0.27) (0.33) 12.42
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
PAYSON VALUE FUND
April 1, 2000 to September 30, 2000............ 21.86 0.01 (0.53) (0.01) -- 21.33
April 1, 1999 to March 31, 2000................ 19.30 0.06 3.19 (0.06) (0.63) 21.86
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
</TABLE>
(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).
(e) Less than $0.01 per share.
See Notes to Financial Statements. 32 FORUM FUNDS(R)
<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>
3.34% $11,406 4.45%(c) 0.62%(c) 1.54%(c) 16%
0.03% 11,644 4.46% 0.60% 1.59% 19%
5.61% 15,227 4.28% 0.60% 1.53% 42%
8.84% 12,908 4.45% 0.60% 1.81% 23%
4.56% 8,691 4.65% 0.60% 2.22% 53%
7.36% 6,903 4.65% 0.60% 2.26% 34%
9.64% 5,725 0.25%(c) 1.31%(c) 1.64%(c) 0%
6.54% 20,823 0.40% 1.10% 1.49% 0%
6.25% 29,107 0.51% 1.10% 1.44% 27%
13.50% 33,899 0.96%(c) 1.10%(c) 1.56%(c) 0%
8.13% 16,828 2.16%(c) 1.20%(c) 1.49%(c) 17%
4.53% 18,596 2.05% 1.15% 1.52% 54%
(8.20%) 23,189 2.07% 1.15% 1.49% 100%
31.27% 24,440 2.58% 1.15% 1.57% 66%
9.42% 18,163 3.07% 1.15% 1.67% 53%
21.70% 17,455 3.25% 1.15% 1.70% 62%
(2.37%) 18,795 0.10%(c) 1.48%(c) 1.74%(c) 9%
17.20% 19,987 0.22% 1.45% 1.75% 20%
(4.57%) 18,253 0.35% 1.45% 1.75% 41%
45.28% 19,918 0.62% 1.45% 1.87% 39%
13.01% 13,109 1.30% 1.45% 2.07% 24%
27.77% 10,319 1.47% 1.45% 2.16% 53%
</TABLE>
See Notes to Financial Statements. 33 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Forum Funds(R) (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 twenty-one active
investment portfolios. Included in this report are Investors High Grade Bond
Fund, Investors Bond Fund, TaxSaver Bond Fund, Maine TaxSaver Bond Fund, New
Hampshire TaxSaver 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 TaxSaver Bond Fund December 5, 1991
New Hampshire TaxSaver 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 accounting principles
generally accepted in the United States of America, 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 these 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 the
Fund, and for which market quotations are readily available, are valued using
the last reported sales price or, if no sales price is reported, the mean of the
last bid and ask price as provided by independent pricing services. 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(R)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000 (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 Investors Growth
Fund, Payson Balanced Fund and Payson Value Fund, for which dividends are
declared and paid quarterly. 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 TaxSaver Bond Fund, New
Hampshire TaxSaver 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 TaxSaver Bond Fund and New Hampshire TaxSaver 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 annual 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(R)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000 (unaudited)
--------------------------------------------------------------------------------
CUSTODIAN-The custodian is Forum Trust, LLC. Each Fund pays an annual domestic
custody fee based on the average daily assets of the Fund. Each Fund also pays
an annual maintenance fee of $3,600 plus certain other transaction fees. These
fees are paid monthly.
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, 2000, FFS reallowed $20,655, $432, $73 and
$557 in commissions to certain financial institutions regarding purchases of
Maine TaxSaver Bond Fund, New Hampshire TaxSaver Bond Fund, Payson Balanced Fund
and Payson Value Fund, respectively. FFS retained net commissions of $4,299,
$133, $11 and $77 from purchases of Maine TaxSaver Bond Fund, New Hampshire
TaxSaver 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 AND REIMBURSEMENT OF EXPENSES
Certain service providers of each Fund have contractually undertaken to waive a
portion of their fees and reimburse a portion of their expenses so that total
expenses of each Fund would not exceed certain limitations. For the period ended
September 30, 2000, fees waived and expenses reimbursed were as follows:
<TABLE>
<CAPTION>
TOTAL FEES
FEES WAIVED AND EXPENSES REIMBURSED WAIVED
--------------------------------------------------- AND
FORUM EXPENSES EXPENSES
ADVISORS PAYSON FSS FADS REIMBURSED REIMBURSED
-------- ------ --- ---- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investors High Grade
Bond Fund............................... $32,968 $ -- $17,193 $12,914 $ -- $ 63,075
Investors Bond Fund....................... 24,363 -- 30,705 21,313 -- 76,381
TaxSaver Bond Fund........................ 37,190 -- 27,566 13,887 -- 78,643
Maine TaxSaver Bond Fund.................. 52,720 -- 39,026 13,293 -- 105,039
New Hampshire TaxSaver
Bond Fund............................... 23,056 -- 14,361 11,528 3,987 52,932
Investors Growth Fund..................... 15,474 -- 920 5,651 -- 22,045
Payson Balanced Fund...................... -- 12,914 -- 13,642 -- 26,556
Payson Value Fund......................... -- 11,339 -- 14,077 -- 25,416
</TABLE>
36 FORUM FUNDS(R)
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000 (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, 2000, 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........... $ 438,690 $ 5,230,312 $ -- $ 4,713,812
Investors Bond Fund...................... 4,262,326 40,533,562 2,859,381 10,703,659
TaxSaver Bond Fund....................... 4,940,968 13,108,690 -- --
Maine TaxSaver Bond Fund................. 1,692,052 5,228,877 -- --
New Hampshire TaxSaver Bond Fund......... 1,800,774 2,118,204 -- --
Investors Growth Fund.................... -- 3,601,845 -- --
Payson Balanced Fund..................... 3,029,048 5,923,466 -- 434,156
Payson Value Fund........................ 1,613,070 2,206,779 -- --
</TABLE>
NOTE 6. CONCENTRATION OF RISK
The Maine TaxSaver Bond Fund and New Hampshire TaxSaver Bond Fund invest a
significant portion of their assets in debt obligations of issuers located in
the states of Maine and New Hampshire, respectively. The ability of the issuers
of these debt securities to meet their obligations may be affected by Maine and
Hew Hampshire economic or political developments.
NOTE 7. FUTURE EVENTS
On October 2, 2000, the Trust's Board of Trustees approved separate Agreements
and Plans of Reorganization for each of Investors High Grade Bond Fund and
Investors Growth Fund (each a "Plan") whereby each Fund would reorganize into a
separate series of Stratevest Funds ("Stratevest"), another investment company.
As a result of these reorganizations, Investors High Grade Bond Fund and
Investors Growth Fund would terminate as series of the Trust and shareholders of
Investors High Grade Bond Fund and Investors Growth Fund would become
shareholders of a corresponding Stratevest series with similar objectives and
investment policies. The Plans relevant to each of Investors High Grade Bond
Fund and Investors Growth Fund must be approved by that Fund's shareholders. The
reorganization of Investors High Grade Bond Fund and Investors Growth Fund are
not contingent on one another but are contingent on certain other conditions
outlined in their respective Plans.
37 FORUM FUNDS(R)
<PAGE>
(This page has been left blank intentionally.)
FORUM FUNDS(R)
<PAGE>
FOR MORE INFORMATION FORUM FUNDS
INVESTORS HIGH GRADE
BOND FUND
INVESTORS BOND FUND
TAXSAVER BOND FUND
MAINE TAXSAVER
BOND FUND
NEW HAMPSHIRE TAXSAVER
BOND FUND
INVESTORS GROWTH FUND
TRANSFER AGENT PAYSON BALANCED FUND
Forum Shareholder Services, LLC
Two Portland Square PAYSON VALUE FUND
Portland, ME 04101
[LOGO]
DISTRIBUTOR FORUM FUNDS
Forum Fund Services, LLC P.O. BOX 446
Two Portland Square PORTLAND, MAINE 04112
Portland, ME 04101 800-94FORUM (SHAREHOLDER
SERVICES)
800-95FORUM (DEALER SERVICES)
207-879-0001
WWW.FORUMFUNDS.COM
This report is authorized for distribution only to
shareholders and to others who have received a copy
of the Funds' prospectus.
