[LOGO] TRILLIUM
ASSET MANAGEMENT
PROSPECTUS
September 1, 2000
THE FUND SEEKS LONG TERM THE
CAPITAL APPRECIATION. YOU ADVOCACY
MAY PURCHASE FUND SHARES FUND
WITHOUT A SALES CHARGE.
THE INFORMATION IN THIS
PROSPECTUS IS NOT COMPLETE
AND MAY BE CHANGED. WE
MAY NOT SELL THESE
SECURITIES UNTIL THE
REGISTRATION STATEMENT
FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION IS
EFFECTIVE. THIS PROSPECTUS
IS NOT AN OFFER TO SELL THESE
SECURITIES AND IT IS NOT
SOLICITING AN OFFER TO BUY
THESE SECURITIES IN ANY STATE
WHERE THE OFFER OR SALE IS NOT
PERMITTED.
THE SECURITIES AND EXCHANGE
COMMISSION HAS NOT APPROVED OR
DISAPPROVED THE FUND'S SHARES
OR DETERMINED WHETHER THIS
PROSPECTUS IS ACCURATE OR COMPLETE.
ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
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TABLE OF CONTENTS
RISK/RETURN SUMMARY 2
PERFORMANCE INFORMATION 2
FEE TABLES 3
INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES AND PRINCIPAL RISKS 4
MANAGEMENT 7
YOUR ACCOUNT 9
How to Contact the Fund 9
General Information 9
Buying Shares 10
Selling Shares 12
Exchange Privileges 14
Retirement Accounts 14
ADVISER PAST PERFORMANCE 15
OTHER INFORMATION 16
FINANCIAL HIGHLIGHTS 16
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RISK/RETURN SUMMARY
CONCEPTS TO UNDERSTAND THE ADVOCACY FUND
COMMON STOCK INVESTMENT OBJECTIVE The investment goal of The Advocacy Fund
means an equity or (the "Fund"), as managed by its investment adviser, Trillium
ownership interest in Asset Management Corporation (the "Adviser"), is long-term
a company capital appreciation.
LARGE-CAP STOCKS
mean securities of PRINCIPAL INVESTMENT STRATEGY The Fund uses a "growth at a
companies the market reasonable price investing" style by investing under normal
capitalization of which circumstances at least 65 percent of its total assets in the
is in excess of $10 common stock of large-cap domestic companies that the Adviser
billion believes have superior earnings growth prospects relative to
MARKET CAPITALIZATION their industry but which are available at attractive valuations.
of a company means the The Fund seeks to invest in companies that the Adviser believes
value of the company's are making a positive contribution to society and the economy and
common stock in the whose business practices meet the criteria outlined in "Social
stock market Objectives" (see below). In addition, a limited portion of the
GROWTH AT A REASONABLE Fund's portfolio will be used to purchase securities of certain
PRICE INVESTING companies in order to advocate policy changes within the
means to invest in stocks companies.
of companies that, in the
Adviser's opinion, offer PRINCIPAL RISKS OF INVESTING IN THE FUND
faster than average
projected earnings growth You could lose money on your investment in the Fund, or the Fund
relative to their industry could under-perform other investments, if any of the following
peer group but which are occur:
attractively valued
relative to their industry o The stock market does not recognize the earnings potential
of the stocks in the Fund's portfolio
o The Adviser's judgment as to the growth potential of a stock
proves to be wrong
o The stock market goes down
o The Fund's social criteria may eliminate some stocks which
might have higher returns than the stocks from which the
Adviser is able to choose
o Changes in company social policies may cause the sale of
stocks that subsequently perform well
WHO MAY WANT TO INVEST IN THE FUND
The Fund may be appropriate for you if you:
o Want your assets invested to further social equity and
environmental sustainability
o Are looking for a well-diversified equity portfolio
providing potential growth of your investment
o Are willing to tolerate significant changes in the value of
your investment
o Are pursuing a long-term goal
o Are willing to accept the higher short-term risk of a stock
fund
The Fund may NOT be appropriate for you if you:
o Want an investment that pursues market trends or focuses
only on particular sectors or industries
o Need regular income or stability of principal
o Are pursuing a short-term goal or investing emergency
reserves
PERFORMANCE INFORMATION
Performance information is not provided because the Fund had not
commenced operations prior to the date of this Prospectus.
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FEE TABLES
The following tables describe the various fees and expenses that you will bear
if you invest in the Fund.
Shareholder fees are charges you pay when buying, selling or exchanging shares
of the Fund. Operating expenses, which include fees of the Adviser, are paid out
of the Fund's assets and are factored into the Fund's share price rather than
charged directly to shareholder accounts.
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases None
Maximum Sales Charge (Load) Imposed on Reinvested Distributions None
Maximum Deferred Sales Charge (Load) None
Redemption Fee None
Exchange Fee None
ANNUAL FUND OPERATING EXPENSES (1)
(expenses that are deducted from Fund assets)
Advisory Fees 0.65%
Distribution (12b-1) Fees 0.25%
Other Expenses 0.60%
TOTAL ANNUAL FUND OPERATING EXPENSES(2) 1.50%
(1) Based on estimated amounts for the current fiscal year ending June 30, 2001.
(2) The Adviser has voluntarily undertaken to waive a portion of its fees and
assume certain expenses to the extent that total annual fund expenses
exceed 1.50% of the net assets of the Fund.
EXAMPLE
The following is a hypothetical example intended to help you compare the cost of
investing in the Fund to the cost of investing in other mutual funds. This
example assumes that you invest $10,000 in the Fund then redeem all of your
shares at the end of the period. The example also assumes that your investment
has a 5% annual return, that the Fund's operating expenses remain the same and
that distributions are reinvested. Although your actual costs may be higher or
lower, under these assumptions your costs would be:
AFTER ONE YEAR AFTER THREE YEARS
$153 $474
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INVESTMENT OBJECTIVE, PRINCIPAL
INVESTMENT STRATEGIES AND PRINCIPAL RISKS
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CONCEPTS TO INVESTMENT OBJECTIVE
UNDERSTAND
The investment objective of the Fund is long-term capital
FUNDAMENTAL ANALYSIS appreciation. There is no assurance that the Fund will achieve
means the analysis of a this objective.
company's financial
condition that is used PRINCIPAL INVESTMENT STRATEGIES
to help forecast the
future value of its The Fund uses a "growth at a reasonable price investing" style by
stock price. investing under normal circumstances at least 65 percent of its
This analysis includes total assets in the common stock of large-cap domestic companies
a review of a company's that the Adviser believes have superior earnings growth
balance sheet and income prospects, but which are available at attractive valuations.
statement, asset history,
earnings history, product The Adviser uses in-house research and other sources to conduct a
or service development and fundamental analysis of prospective Fund investments. As part of
management productivity this analysis, the Adviser may meet with company managements or
PRICE/EARNINGS RATIO visit prospective companies. The Fund may also invest in
means the price of a companies that the Adviser believes do not have particularly
share of stock divided strong earnings histories but do have other attributes that may
by the company's earnings contribute to accelerated growth in the foreseeable future.
per share
PRICE/CASH FLOW In addition, the Fund seeks to invest in companies that it
means the price of a stock believes are making a positive contribution to society and the
divided by free cash flow economy and whose business practices meet the criteria outlined
per share in "Social Objectives" (see below). A limited portion of the
SECTOR portfolio will be used to purchase securities of companies which
means a commonly used do not have outstanding records in their industry but which pass
grouping of industries minimal social criteria, in order to advocate policy changes
expected to perform within the companies.
similarly under various
economic conditions Common stock often gives the owner the right to vote on measures
affecting the company's organization and operations. The Fund
intends to use its position as an owner to initiate dialogue with
company management concerning their social and business practices
and may initiate shareholder resolutions with companies.
The Fund does not intend to exercise control over the management
of companies in which it invests.
THE ADVISER'S PROCESSES - PURCHASING PORTFOLIO SECURITIES
The Adviser's investment process begins with sector allocations
based on economic outlook and risk/return expectations for each
sector. Within sector allocations, the Adviser seeks large-cap
stocks with earnings growth prospects that the Adviser believes
are superior to their industries but which are available at
price/earnings ("P/E") ratios or price/cash flow ratios
comparable to their industry peer groups.
The stock selection process emphasizes companies that the Adviser
believes make a positive contribution to society and the economy;
however, stocks are added to the Fund portfolio only after
financial analysis indicates investment attractiveness.
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Financial analysis includes multi-factor valuation and risk modeling, in-house
fundamental research, including balance sheet and income statement analysis.
Technical analysis is used by the Adviser to monitor price movements and help
determine entry and exit points for specific stocks. The Adviser believes that
companies with superior earnings growth prospects are businesses that have:
o Significant market opportunities (both in terms of magnitude and duration)
where the companies are leaders or potential leaders in their respective
markets
o Proprietary products and services, new product development and product
cycle leadership that sustains strong brand franchises
o A strong management team that is proactive, consistently executes
effectively and anticipates and adapts to change
o Positive records on the environment, global human rights, employee,
diversity, labor issues, corporate citizenship, weapons issues and animal
rights
The Adviser then focuses on those companies that, over a several year horizon,
have the ability to grow at above average rates for their industries, given the
Adviser's belief that superior investment returns are better achieved by low
portfolio turn-over. Factors considered include:
o Product cycles, pricing flexibility and product or geographic mix
o Cash flow and financial strength to fund growth
o Catalysts for growth such as the development of new products, changes in
business mix, regulation, or management, and industry consolidation
The Adviser then uses a range of valuation techniques including analyses of P/E
ratios relative to the overall equity market, expected growth to P/E ratios
relative to the market and price/cash flow to identify those companies whose
stocks are attractively valued relative to the market, their peer groups and
their own price history. The Adviser selects stocks considering both
diversification by sector and attractiveness of valuation relative to
prospective growth.
THE ADVISER'S PROCESSES - SELLING PORTFOLIO SECURITIES
In making its decision to sell a stock in the Fund's portfolio, the Adviser
monitors the companies in the Fund's portfolio to determine if there have been
any fundamental changes in the companies. The Adviser may sell a stock if:
o It subsequently fails to meet the Adviser's initial investment criteria
o Changes in macroeconomic conditions prompt a change in industry sector
allocation
o A more attractively priced company is found or funds are needed for other
purposes
o It becomes overvalued relative to the long term expectation for the stock
price
o A company's positive social or environmental attributes turn negative and
dialogue and shareholder engagement fail to change the company's policies
SOCIAL OBJECTIVES
In addition to its attempt to provide a positive return on your investment, the
Fund includes an additional goal of creating positive social change and
improving corporate practices through active stock ownership. The Adviser will
seek to promote sustainable environmental, economic and social policies and
practices by communicating with management of portfolio companies on critical
social and environmental issues. On behalf of the Fund, the Adviser may
participate in the shareholder resolution process.
The Fund's stock selections will emphasize "positive investment", i.e., the
search for, and investment in, companies making a positive contribution to
society in both their domestic and international operations. The Fund will seek
to invest in companies that consciously and continuously strive to implement
sustainable practices, are socially progressive, and are responsive to
shareholder activism.
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As part of its analysis, the Adviser will evaluate corporate social and
environmental performance in many areas, including but not limited to:
o Environmental practices and policies
o Global human rights
o Use of sweatshop and/or child labor
o Diversity in the workplace and in senior management positions
o Labor-management relations
o Corporate philanthropy and investment in local communities
o Military contracting with the U.S. or foreign governments
o Product safety
o Ethical management practices
o Animal research and testing
o Stakeholder relations
o Corporate governance practices
o Corporate management incentive and compensation plans
o Corporate lobbying practices and political action committee contributions
PRINCIPAL INVESTMENT RISKS
The value of the Fund's investments will fluctuate as the stock market
fluctuates and therefore the Fund's net asset value and total return will
fluctuate based upon changes in the value of its portfolio securities. Upon
redemption, an investment in the Fund may be worth more or less than its
original value. An investment in the Fund is not by itself a complete or
balanced investment program.
Nevertheless, investing in equity securities with predominantly large
capitalizations may be important for investors seeking a diversified portfolio,
particularly for long-term investors able to tolerate short-term fluctuations in
the value of their investments. This type of market movement may affect the
price of the securities of a single issuer, a segment of the domestic stock
market or the entire market.
All investments made by the Fund have some risk. Among other things, the market
value of any security in which the Fund may invest is based upon the market's
perception of value and not necessarily the book value of an issuer or other
objective measure of the issuer's worth.
Because the Fund invests in common stocks and makes investments based on an
expectation of the companies' rate of profit growth, there is a risk that the
stocks will not continue to grow at expected rates, thus causing the price of
the stock to decline. There is also the risk that the market will not recognize
the earnings potential of a stock.
A decline in investor demand for stocks may also adversely affect the value of
these securities. In addition, the investment style for the Fund could fall out
of favor with the market; that is, if investors lose interest in large
capitalization stocks, then the net asset value of the Fund could also decrease.
There is also the risk that the Fund's social criteria may eliminate some stocks
which might have higher returns than the stocks from which the Adviser is able
to choose. Changes in company social policies might also cause the sale of
stocks that subsequently perform well.
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MANAGEMENT
The Fund is a series of Forum Funds (the "Trust"), an open-end, management
investment company (mutual fund). The business of the Trust and the Fund is
managed under the direction of the Board of Trustees (the "Board"). The Board
formulates the general policies of the Fund and meets periodically to review the
Fund's performance, monitor investment activities and practices and discuss
other matters affecting the Fund. Additional information regarding the Board, as
well as the Trust's executive officers, may be found in the Statement of
Additional Information ("SAI").
THE ADVISER
Trillium Asset Management Corporation (the "Adviser ") is a registered
investment adviser founded in 1982. The Adviser is headquartered in Boston,
Massachusetts.
The Adviser has been owned by its employees since inception. Ownership is
broadly distributed among current employees. Wainwright Bank & Trust Company of
Boston owns a 30% preferred equity position in the Adviser.
The Adviser and its predecessors have provided investment advisory and
management services to clients for more than eighteen years. As of the date of
this Prospectus, the Adviser has more than $675 million in assets under
management. For its services, the Adviser receives an advisory fee at an annual
rate of 0.65% of the average daily net assets of the Fund.
PORTFOLIO MANAGERS
Cheryl Smith, Ph.D., CFA, Samuel Jones Jr., CFA, and F. Farnum Brown Jr., Ph.D.
are responsible for the day-to-day investment management of the Fund. Each
portfolio manager's business experience is as follows:
CHERYL I. SMITH, Ph.D., CFA, Vice President
Ms. Smith is a senior portfolio manager and research analyst covering the
communications sector. Ms. Smith was with the Adviser from 1987 to 1992. From
1992 to 1997, she was a portfolio manager with United States Trust Company in
Boston, Massachusetts. She rejoined the Adviser in 1997. She is a Chartered
Financial Analyst charterholder and holds a B.S.F.S. from Georgetown University
School of Foreign Service. She earned M.A., M.Phil., and Ph.D. degrees in
Economics from Yale University.
SAMUEL B. JONES, JR., CFA, Senior Vice President, Chief Investment Officer
Mr. Jones is a senior portfolio manager and research analyst, covering the
technology, communications equipment, energy services and utility sectors. Mr.
Jones has been with the Adviser since 1992. He is a Chartered Financial Analyst
charterholder and received his B.S. and M. B. A. degrees from the University of
Michigan.
F. FARNUM BROWN, JR., Ph.D., Senior Vice President
Mr. Brown is a senior portfolio manager, research analyst and manager of the
Durham, North Carolina office for the Adviser. Mr. Brown has been with the
Adviser since 1994 and received his bachelor's, master's and doctoral degrees
from the University of North Carolina at Chapel Hill.
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OTHER SERVICE PROVIDERS
The Forum Financial Group of companies ("Forum") provide services to the Fund.
As of March 31, 2000, Forum provided administration and distribution services to
investment companies and collective investment funds with assets of
approximately $67 billion.
Forum Fund Services, LLC, a registered broker-dealer and member of the National
Association of Securities Dealers, Inc., is the distributor (principal
underwriter) of the Fund's shares. The distributor acts as the agent of the
Trust in connection with the offering of the Fund's shares. The distributor may
enter into arrangements with banks, broker-dealers or other financial
institutions through which investors may purchase or redeem shares and may, at
its own expense, compensate persons who provide services in connection with the
sale or expected sale of the Fund's shares.
Forum Shareholder Services, LLC ("Transfer Agent") is the Fund's transfer agent.
DISTRIBUTION EXPENSES
The Fund has a distribution plan adopted under SEC rule 12b-1 that allows the
Fund to pay asset-based sales charges or distribution fees for the distribution
and sale of its shares. The amount of these fees is 0.25% of the Fund's average
daily net assets. Because these fees are paid out of the Fund's assets on an
on-going basis, over time these fees will increase the cost of your investment
and may cost you more than paying other types of sales charges.
FUND EXPENSES
The Fund pays for all of its expenses. The Fund's expenses are comprised of its
own expenses as well as Trust expenses that are allocated among the various
series of the Trust. The Adviser or other service providers may voluntarily
waive all or any portion of their fees, which are accrued daily and paid
monthly. Any waiver would have the effect of increasing the Fund's performance
for the period during which the waiver was in effect and may not be recouped at
a later date.
The Adviser has undertaken to waive its fees and assume certain expenses of the
Fund in order to limit the Fund's expenses (excluding taxes, interest, portfolio
transaction expenses and extraordinary expenses) to 1.50% or less of the average
daily net assets of the Fund.
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YOUR ACCOUNT
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HOW TO CONTACT GENERAL INFORMATION
THE FUND
You pay no sales charge to purchase or sell (redeem) shares of
WRITE TO US AT: the Fund. You may purchase or sell Fund shares at the net asset
The Advocacy Fund value per share (NAV) next calculated after the Transfer Agent
P.O. Box 446 receives your request in proper form. For instance, if the
Portland, Maine 04112 Transfer Agent receives your purchase request in proper form
after 4:00 p.m., your transaction will be priced at the next
day's NAV. The Fund cannot accept orders that request a
OVERNIGHT ADDRESS: particular day or price for the transaction or any other special
The Advocacy Fund conditions.
Two Portland Square
Portland, Maine 04101 The Fund does not issue share certificates.
You will receive statements at least quarterly and a confirmation
TELEPHONE US of each transaction. You should verify the accuracy of all
TOLL-FREE AT: transactions in your account as soon as you receive your
(800) 448-0974 confirmation.
The Fund reserves the right to waive minimum investment amounts
WIRE INVESTMENTS and may temporarily suspend (during unusual market conditions) or
(OR ACH PAYMENTS) discontinue any service or privilege.
TO US AT:
Bankers Trust Company WHEN AND HOW NAV IS DETERMINED The Fund calculates its NAV as of
New York, New York the close of the New York Stock Exchange ("NYSE") (normally 4:00
ABA #021001033 p.m., Eastern time) on each weekday except days when the NYSE is
closed. The time at which NAV is calculated may be changed in
FOR CREDIT TO: case of an emergency or if the NYSE closes early. The Fund's NAV
Forum Shareholder is determined by taking the market value of all securities owned
Services, LLC by the Fund (plus all other assets such as cash), subtracting all
Account # 01-465-547 liabilities and then dividing the result by the number of shares
Re: The Advocacy Fund outstanding. The Fund values securities for which market
(Your Name) quotations are readily available at current market value. If
(Your Account Number) market quotations are not readily available, the Fund values
securities at estimated fair value, as determined by the Board.
TRANSACTIONS THROUGH THIRD PARTIES If you invest through a broker
or other financial institution, the policies and fees charged by
that institution may be different than those of the Fund.
Financial institutions may charge transaction fees and may set
different minimum investments or limitations on buying or selling
shares. These institutions may also provide you with certain
shareholder services such as periodic account statements and
trade confirmations summarizing your investment activity. Consult
a representative of your financial institution for more
information.
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BUYING SHARES
HOW TO MAKE PAYMENTS All investments must be in U.S. dollars and checks must be
drawn on U.S. banks.
CHECKS For individual, sole proprietorship, joint, Uniform Gift to
Minors Act ("UGMA") or Uniform Transfer to Minors Act ("UTMA")
accounts, the check must be made payable to "The Advocacy Fund" or to
one or more owners of the account and endorsed to "The Advocacy Fund."
For all other accounts, the check must be made payable on its face to
"The Advocacy Fund." No other method of check payment is acceptable
(for instance, you may not pay by travelers check).
PURCHASES BY AUTOMATED CLEARING HOUSE ("ACH") This service allows you
to purchase additional shares through an electronic transfer of money
from a checking or savings account. When you make an additional
purchase by telephone, the Transfer Agent will automatically debit your
pre-designated bank account for the desired amount. You may call (800)
448-0974 to request an ACH transaction.
WIRES Instruct your financial institution to make a Federal Funds wire
payment to us. Your financial institution may charge you a fee for this
service.
MINIMUM INVESTMENTS The Fund accepts investments in the following minimum
amounts:
MINIMUM INITIAL MINIMUM ADDITIONAL
INVESTMENT INVESTMENT
Standard Minimum Accounts $2,000 $250
Traditional and Roth IRA Accounts $2,000 $250
Accounts With Automatic Investment Plans $1,000 $100
ACCOUNT REQUIREMENTS
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TYPE OF ACCOUNT REQUIREMENT
INDIVIDUAL, SOLE PROPRIETORSHIP AND JOINT ACCOUNTS o Instructions must be signed by all persons
Individual accounts are owned by one person, as are required to sign exactly as their names appear
sole proprietorship accounts. Joint accounts can on the account
have two or more owners (tenants)
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) o Depending on state laws, you can set up a
These custodial accounts provide a way to give money custodial account under the UGMA or UTMA
to a child and obtain tax benefits o The custodian must sign instructions in a
manner indicating custodial capacity
BUSINESS ENTITIES o Submit a Corporate/Organization Resolution
form or similar document
TRUSTS o The trust must be established before an
account can be opened
o Provide a certified trust document, or the
pages from the trust document that identify
the trustees
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INVESTMENT PROCEDURES
HOW TO OPEN AN ACCOUNT HOW TO ADD TO YOUR ACCOUNT
BY CHECK BY CHECK
o Call or write us for an account application o Fill out an investment slip from a
and/or a Corporate/Organization Resolution form confirmation or write us a letter
o Complete the application o Write your account number on your check
o Mail us your application and a check o Mail us the slip (or your letter) and the
check
BY WIRE BY WIRE
o Call or write us for an account application o Call to notify us of your
incoming wire and/or a Corporate/Organization o Instruct your bank to wire your money to us
Resolution form
o Complete the application
o Call us to fax the completed application and
we will assign you an account number
o Mail us your original application
o Instruct your bank to wire your money to us
BY ACH PAYMENT BY SYSTEMATIC INVESTMENT
o Call or write us for an account application o Call or write us for a "Systematic
and/or a Corporate/Organization Resolution form Investment Plan" form
o Complete the application o Complete the form
o Call us to fax the completed application and o Attach a voided check to your form
we will assign you an account number o Mail us the form
o Mail us your original application
o Make an ACH payment
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SYSTEMATIC INVESTMENTS You may invest a specified amount of money in the Fund
once or twice a month on specified dates. These payments are taken from your
bank account by ACH payment. Automatic investments must be for at least $100.
LIMITATIONS ON PURCHASES The Fund reserves the right to refuse any purchase
(including exchange) request, particularly requests that could adversely affect
the Fund or its operations. This includes those from any individual or group
who, in the Fund's view, is likely to engage in excessive trading (usually
defined as more than four redemptions or exchanges out of the Fund within a
calendar year).
CANCELED OR FAILED PAYMENTS The Fund accepts checks and ACH transfers at full
value subject to collection. If the Fund does not receive your payment for
shares or you pay with a check or ACH transfer that does not clear, your
purchase will be canceled. You will be responsible for any losses or expenses
incurred by the Fund or the Transfer Agent, and the Fund may redeem shares you
own in the account (or another identically registered account in the Fund) as
reimbursement. The Fund and its agents have the right to reject or cancel any
purchase or exchange due to nonpayment.
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SELLING SHARES
Redemption orders are processed promptly. Generally, the Fund will send
redemption proceeds to you within a week. Delays may occur in cases of very
large redemptions, excessive trading or during unusual market conditions. The
Fund may delay sending redemption proceeds until it has collected payment for
the shares you are selling, which may take up to 15 calendar days.
HOW TO SELL SHARES FROM YOUR ACCOUNT
BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account number
o The Fund name
o The dollar amount or number of shares you want to sell
o How and where to send the redemption proceeds
o Obtain a signature guarantee (if required)
o Obtain other documentation (if required)
o Mail us your request and documentation
BY WIRE
o Wire requests are only available if you provided bank account information
on your account application and your request is for $10,000 or more
o Call us with your request (unless you declined telephone redemption
privileges on your account application (See "By Telephone") OR
o Mail us your request (See "By Mail")
BY TELEPHONE
o Call us with your request (unless you declined telephone authorization
privileges on your account application)
o Provide the following information:
o Your account number
o Exact name(s) in which the account is registered
o Additional form of identification
o Your proceeds will be:
o Mailed to you OR
o Wired to you (unless you did not provide bank account information on
your account application (See "By Wire")
SYSTEMATICALLY
o Complete the systematic withdrawal section of the application
o Attach a voided check to your form
o Mail us your completed application
TELEPHONE REDEMPTION PRIVILEGES You may redeem your shares by telephone unless
you declined telephone redemption privileges on your account application. You
may be responsible for any fraudulent telephone order as long as the Transfer
Agent takes reasonable measures to verify the order.
WIRE REDEMPTION PRIVILEGES You may have your redemption proceeds wired to you if
you provided bank account information on your account application or by
completing a separate form. The minimum amount that may be redeemed by wire is
$5,000.
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SYSTEMATIC WITHDRAWALS If you own shares of the Fund with an aggregate value of
at least $10,000, you may request a specified amount of money from your account
once a month on a specified date. These payments are sent from your account to a
designated bank account by ACH payment. Automatic redemptions must be for at
least $250.
SIGNATURE GUARANTEE REQUIREMENTS To protect you and the Fund against fraud,
signatures on certain requests must have a "signature guarantee." A signature
guarantee verifies the authenticity of your signature. You can obtain one from
most banking institutions or securities brokers, but not from a notary public.
For requests made in writing, a signature guarantee is required for any of the
following:
o Sales of over $50,000 worth of shares
o Changes to a shareholder's record name
o Redemptions from an account for which the address or account registration
has changed within the last 30 days
o Sending redemption proceeds to any person, address, brokerage firm or bank
account not on record
o Sending redemption proceeds to an account with a different registration
(name or ownership) from yours
o Changes to automatic investment or redemption, distribution, telephone
redemption or exchange option or any other election in connection with your
account
SMALL ACCOUNTS If the value of your account falls below $1,000 ($500 for IRAs or
accounts with an established automatic investment plan), the Fund may ask you to
increase your balance. If the account value is still below $1,000 (or $500 in
the case of IRAs or accounts with an established automatic investment plan)
after 60 days, the Fund may close your account and send you the proceeds. The
Fund will not close your account if it falls below these amounts solely as a
result of changes in market value.
REDEMPTIONS IN KIND The Fund reserves the right to pay redemption proceeds in
portfolio securities rather than cash. These redemptions in kind usually occur
if the amount to be redeemed is large enough to affect the Fund's operations
(for example, if it represents more than 1% of the Fund's assets).
LOST ACCOUNTS The Transfer Agent will consider your account lost if
correspondence to your address of record is returned as undeliverable, unless
the Transfer Agent determines your new address. When an account is lost, all
distributions on the account will be reinvested in additional Fund shares. In
addition, the amount of any outstanding (unpaid for six months or more) checks
for distributions that have been returned to the Transfer Agent will be
reinvested and the checks will be canceled.
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EXCHANGE PRIVILEGES
You may exchange by telephone or in writing your Fund shares for Investor Shares
of the Trust's money market funds. Because exchanges are treated as a sale and
purchase of shares, they may have tax consequences.
REQUIREMENTS You may make exchanges only between identically registered accounts
(name(s), address and taxpayer ID number). There is currently no limit on
exchanges, but the Fund reserves the right to limit exchanges. You may exchange
your shares by mail or telephone, unless you declined telephone exchange
privileges on your account application. You may be responsible for any
fraudulent telephone order as long as the Transfer Agent takes reasonable
measures to verify the order.
HOW TO EXCHANGE
BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account number
o The names of the funds you are exchanging
o The dollar amount or number of shares you want to sell (and exchange)
o If opening a new account, complete an account application if you are
requesting different shareholder privileges
o Mail us your request and documentation
BY TELEPHONE
o Call us with your request (unless you declined telephone redemption
privileges on your account application)
o Provide the following information:
o Your account number
o Exact name(s) in which account is registered
o Additional form of identification
RETIREMENT ACCOUNTS
The Fund offers both traditional and Roth IRA accounts. Before investing in any
IRA or other retirement plan, you should consult your tax advisers. Whenever
making an investment in an IRA, be sure to indicate the year in which the
contribution is made.
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THE ADVOCACY FUND
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ADVISER PAST PERFORMANCE
The following table sets forth the performance data relating to the historical
performance of those private account clients (i.e., non-investment company
clients) managed by Trillium Asset Management Corporation (the "Adviser") that
have investment objectives and investment policies, strategies and risks
substantially similar to those of the Fund. The Adviser does not manage
registered investment companies with investment objectives and investment
policies, strategies and risks substantially similar to those of the Fund. While
the Adviser is primarily responsible for the Fund's performance, the information
presented does not represent the past performance of any Fund. You should not
consider this performance data as an indication of future performance of the
Fund.
All returns presented were calculated on a total return basis, include the
reinvestment of all dividends and interest and take into account accrued income
and realized and unrealized gains and losses. All returns reflect the deduction
of the actual investment advisory fees or highest investment advisory fees
charged, brokerage commissions and execution costs paid by the adviser's private
accounts, without provision for federal or state income taxes. Custodial fees,
if any, were not included in the calculations.
You should be aware that the use of a methodology different from that used below
to calculate performance could result in different performance data. The Fund's
performance is calculated using the method required by the U.S. Securities and
Exchange Commission ("SEC"), which differs from the method used to calculate the
performance of the private accounts. The private accounts are not subject to the
same types of expenses to which the Fund is subject nor to the diversification
requirements, specific tax restrictions and investment limitations imposed by
the Investment Company Act of 1940 or Subchapter M of the Internal Revenue Code
of 1986, as amended. The performance results for the private accounts would have
been adversely affected (i.e., lower) if the private accounts included in the
composite had been regulated as an investment company under the federal security
laws.
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TRILLIUM ASSET MANAGEMENT
CORPORATION COMPOSITES:
BALANCED COMPOSITE FOR THE LARGE CAPITALIZATION
LARGE CAPITALIZATION CORE CORE STYLE; EQUITY
PERIOD STYLE(1) RETURNS ONLY(2) S&P 500 INDEX(3)
3/31/97-12/31/97 15.35% 28.92% 29.88%
1998 14.57% 30.89% 28.58%
1999 10.99% 29.58% 21.03%
1 Year Ended 3/31/00(4) 12.19% 30.52% 17.94%
2000 to Date(4) 2.61% 4.36% 2.29%
Since Inception (3/31/97)(4) 14.61% 31.65% 27.39%
</TABLE>
(1) The presentation above describes and contains four accounts valued, as of
March 31, 2000, at $4.977 million. These four accounts include all taxable
accounts managed by the Adviser which are managed in the Large
Capitalization Core Style.
(2) Accounts included in the Trillium Asset Management Corporation Balanced
Composite for the Large Capitalization Core Style have equity benchmarks
between 35% and 45% of the total account. Therefore, for comparison
purposes for the Fund, which is an equity fund, the equity segment returns
are shown separately.
(3) The S&P 500(R) Index is the Standard & Poor's 500 Index, a widely
recognized, unmanaged index of common stock. The index figures assume
reinvestment of all dividends paid by stocks included in the index. One
cannot invest directly in the index.
(4) Average annual return through March 31, 2000. Returns for less than a one
year period are not annualized.
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THE ADVOCACY FUND
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OTHER INFORMATION
DISTRIBUTIONS
The Fund distributes its net investment income quarterly and net capital gain at
least annually.
All distributions are reinvested in additional shares, unless you elect to
receive distributions in cash. For Federal income tax purposes, distributions
are treated the same whether they are received in cash or reinvested. Shares
become entitled to receive distributions on the day after the shares are issued.
TAXES
The Fund generally intends to operate in a manner such that it will not be
liable for Federal income or excise tax.
The Fund's distribution of net income (or short-term capital gain) is taxable to
you as ordinary income. The Fund's distribution of long-term capital gain is
taxable to you as long-term capital gain.
If you buy shares just before the Fund makes a distribution, you will pay the
full price for the shares and then receive a portion of the price back as a
taxable distribution. The sale or exchange of Fund shares is a taxable
transaction for income tax purposes.
The Fund will send you information about the income tax status of distributions
paid during the year shortly after December 31 of each year.
For further information about the tax effects of investing in the Fund, please
see the SAI and consult your tax adviser. You should also consult your tax
adviser regarding any state and local taxes that may be applicable to the Fund's
distributions.
FINANCIAL HIGHLIGHTS
Financial highlights are not provided because the Fund had not commenced
operations prior to the date of this Prospectus.
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FOR MORE INFORMATION [LOGO] TRILLIUM
ASSET MANAGEMENT
The following documents will be available free upon request:
ANNUAL/SEMI ANNUAL REPORTS
The Fund will provide annual and semi-annual reports to shareholders that THED
will provide additional information about the Fund's investments. In the ADVOCACY
Fund's annual report, you will find a discussion of the market conditions and FUND
investment strategies that significantly affected the Fund's performance
during its preceding fiscal year.
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
The SAI provides more detailed information about the Fund and is incorporated
by reference into this Prospectus.
CONTACTING THE FUND
You can get free copies of both reports (when
available) and the SAI, request other
information and discuss your questions about the
Fund by contacting the Fund at:
Forum Shareholder Services, LLC
P.O. Box 446
Portland, Maine 04112
(800) 448-0974 (toll free)
SECURITIES AND EXCHANGE COMMISSION INFORMATION The Advocacy Fund
You can also review the Fund's reports and SAI at the Public Reference Room Two Portland Square
of the Securities and Exchange Commission ("SEC"). The scheduled hours of Portland, ME 04101
operation of the Public Reference Room may be obtained by calling the (800) 448-0974
SEC at (202) 942-8090. You can get copies of this information, for a fee,
by e-mail or by writing to:
Public Reference Room
Securities and Exchange Commission
Washington, D.C. 20549-0102 Adviser
E-mail address: public [email protected] Trillium Asset Management Corporation
711 Atlantic Avenue
Free copies of the Fund's reports(when available) and SAI are Boston, MA 02111
available from the SEC's Internet Web Site at http://www.sec.gov. (800) 548-5684
</TABLE>
Investment Company Act File No. 811-3023.
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