Forward [profile] is continuing its forays into the land of income.
The San Fran shop has launched the Forward Dynamic Income Fund (FDYTX), the
third income-oriented mutual fund it has introduced within the last 10 months.
The firm launched the Forward Select Income Opportunity Fundin August.
Here is the press release:
Company Press Release
FORWARD LAUNCHES INCOME-ORIENTED FUND TAILORED TO CHANGING BOND MARKET REALITIES
***Forward Dynamic Income Fund combines dividend capture and tactical equity strategies used in
Forward’s existing funds
***Forward to host nation-wide event for investment professionals in October focusing on new
income-oriented strategies
San Francisco, September 25th , 2013--Expanding its set of investment strategies that seek durable
income in the current environment of low yields and rising bond market risks, Forward (Forward
Management, LLC, www.forwardinvesting.com) has launched Forward Dynamic Income Fund (FDYTX), the
third income-oriented mutual fund it has introduced within the last 10 months.
The Dynamic Income Fund seeks total return, with dividend and interest income as major components,
with less downside volatility than the S&P 500 Index. Using an investment approach that is rare in
the marketplace, it blends two underlying strategies with which Forward has extensive experience: a
global dividend capture strategy, which is currently used across several global and international
dividend funds, and a tactical allocation strategy currently employed in Forward Tactical Enhanced
Fund.
“Investors have been battered by what some call ‘the return-free risks’ in today’s shifting bond
market,” said Alan Reid, CEO of Forward. “We felt there was a real need for a fund that could
pursue bond-like outcomes while aiming to minimize increasing bond market risk factors.
Fortunately, we already had the tools in place to craft a strategy like that.”
The global dividend capture strategy capitalizes on what some studies have identified as the
tendency for stock prices to drift higher in advance of their dividend payments. The fund will
invest in equity, fixed income securities and hybrid securities, including common and preferred
stocks, convertible bonds, master limited partnerships and real estate investment trusts of
companies across all market capitalization ranges, including those with one-time dividends. The
tactical allocation strategy seeks to hedge against downside volatility by continuously adjusting
long and short equity market exposure based on analysis of market conditions. The tactical strategy
may also employ some degree of leverage to help increase its return potential and will invest in
high dividend-paying ETFs and securities.
Portfolio managers for the new fund are Jim Welsh, who manages Forward Tactical Enhanced Fund, and
David McGanney. The fund’s portfolio will typically allocate up to 75% of assets to the dividend
capture strategy and 25% to the tactical allocation strategy.
Forward is kicking off the launch of the strategy with a multi-city road show featuring the
portfolio managers from the Forward Dynamic Income Fund as well as the recently launched Forward
Select Income Opportunity Fund, managed by portfolio manager Joel Beam. At these events, designed
for financial advisors and other investment professionals, the managers will review how their new
strategies aim for durable yields while minimizing risk. For more information on the road shows,
which will run from October 7 - 24, 2013, visit www.forwardinvesting.com/durable-income.
Forward continues to expand its roster of income-generating strategies, which include a family of
dividend strategies, an emerging market corporate debt fund and a range of real estate and bond
strategies. In late 2012, the firm introduced Forward Income Builder Fund, which invests in a
diverse mix of income-producing asset classes, and in July launched the Forward Select Income
Opportunity Fund, which invests globally for total return and income with a focus on senior
securities.
About Forward
The world has changed, leading investors to seek new strategies that better fit an evolving global
climate. Forward's investment solutions are built around the outcomes we believe investors need to
be pursuing – non-correlated return, investment income, global exposure and diversification. With a
propensity for unbounded thinking, we focus especially on developing innovative alternative
strategies that may help investors build all-weather portfolios. An independent, privately held firm
founded in 1998, Forward (Forward Management, LLC) is the advisor to the Forward Funds. As of June
30, 2013, we manage more than $5.7 billion in a diverse product set offered to individual investors,
financial advisors and institutions. More information on Forward can be found at
www.forwardinvesting.com.
You should consider the investment objectives, risks, charges and expenses of the Forward Funds
carefully before investing. A prospectus with this and other information may be obtained by calling
(800) 999-6809 or by downloading one from www.forwardinvesting.com. It should be read carefully
before investing.
Forward Income Builder Fund seeks high current income and some stability of principal.
Forward Select Income Fund seeks high current income and potential for modest long-term growth of
capital.
Forward Select Income Opportunity Fund seeks total return through current income and long-term
capital appreciation.
Forward Tactical Enhanced Fund’s investment objective is to produce above-average, risk-adjusted
returns, in any market environment, while exhibiting less downside volatility than the S&P 500
Index.
Correlation is a statistical measure of how two securities move in relation to each other.
Leverage is the use of various financial instruments or borrowed capital, such as margin, to
increase the potential return of an investment. Preferred securities are securities that have
characteristics of both equity and debt securities. S&P 500 Index is an unmanaged index of 500
common stocks chosen to reflect the industries in the U.S. economy. One cannot invest directly in an
index. Volatility is a statistical measure of the dispersion of returns for a given security or
market index.
RISKS
There are risks involved with investing, including loss of principal. Past performance does not
guarantee future results, share prices will fluctuate and you may have a gain or loss when you
redeem shares.
Each allocation fund is a fund of funds, which invest in a mix of underlying Forward Funds.
Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An
allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or
protect against risk. (Forward Income Builder Fund)
Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a
fund. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Select Income Fund, Forward
Select Income Opportunity Fund, Forward Tactical Enhanced Fund)
Derivative instruments involve risks different from those associated with investing directly in
securities and may cause, among other things, increased volatility and transaction costs or a fund
to lose more than the amount invested. (Forward Dynamic Income Fund, Forward Income Builder Fund,
Forward Select Income Fund, Forward Select Income Opportunity Fund, Forward Tactical Enhanced Fund)
Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as
those associated with the direct ownership of the securities or other property held by the ETFs.
(Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Tactical Enhanced Fund)
Foreign securities, especially emerging or frontier markets, will involve additional risks including
exchange rate fluctuations, social and political instability, less liquidity, greater volatility and
less regulation. (Forward Dynamic Income Fund, Forward Income Builder Fund, Forward Select Income
Opportunity Fund, Forward Tactical Enhanced Fund)
Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those
associated with investments in higher-rated debt securities, including a high degree of credit risk.
(Forward Income Builder Fund)
Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of
mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among
other things, prepayment and extension risks. (Forward Income Builder Fund)
Investing in a non-diversified fund involves the risk of greater price fluctuation than a more
diversified portfolio. (Forward Dynamic Income Fund, Forward Select Income Fund, Forward Select
Income Opportunity Fund)
Higher portfolio turnover rates will involve greater transaction costs, and may increase the
potential for taxable distributions being paid to shareholders. (Forward Tactical Enhanced Fund)
Investing in the real estate industry or in real estate-related securities involves the risks
associated with direct ownership of real estate which include, among other things, changes in
economic conditions (e.g., interest rates), the macro real estate development market, government
intervention (e.g., property taxes) or environmental disasters. These risks may also affect the
value of equities that service the real estate sector. (Forward Dynamic Income Fund, Forward Income
Builder Fund, Forward Select Income Fund, Forward Select Income Opportunity Fund)
Short selling involves additional investment risks and transaction costs, and creates leverage,
which can increase the risk and volatility of a fund. (Forward Dynamic Income Fund, Forward Income
Builder Fund, Forward Tactical Enhanced Fund)
Investing in smaller companies generally will present greater investment risks, including greater
price volatility, greater sensitivity to changing economic conditions and less liquidity than
investing in larger, more mature companies. (Forward Dynamic Income Fund, Forward Select Income
Opportunity Fund)
Alternative strategies typically are subject to increased risk and loss of principal. Consequently,
investments such as mutual funds which focus on alternative strategies are not suitable for all
investors.
There is no guarantee the companies in our portfolio will continue to pay dividends.
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