Forward Emerging Markets Fund

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					October 2009
Forward Emerging Markets Fund
Sub-Advised by Pictet Asset Management Ltd.


 Performance as of                                                                                               Since         Gross/Net
                                                                                                                                          †
                                   3Q09         YTD         1 Year       3 Year      5 Year       10 Year
 September 30, 2009                                                                                            Inception*      Expenses

 Forward Emerging Markets
                                  23.49%       62.82%       20.17%       6.36%       15.84%       12.00%         7.45%        1.74%/1.39%
 Fund—Institutional

 MSCI Emerging Markets
                                  21.04%       64.88%       19.44%       8.27%       17.68%       12.26%         8.12%
 Index
Returns for periods greater than one year are annualized.
*10/04/95
†
 The Fund’s investment advisor has contractually agreed to waive a portion of its fees and reimburse other expenses until April 30, 2010, in
amounts necessary to limit the Fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and
expenses, and extraordinary expenses) for the Institutional Class shares to an annual rate (as a percentage of the Fund’s average daily net assets)
of 1.39%.

Prior to May 1, 2008, the Fund was named the Forward Global Emerging Markets Fund. The Institutional Class of the Pictet Global Emerging
Markets Fund was reorganized into the Institutional Class of the Forward Global Emerging Markets Fund on September 15, 2004. Performance
figures shown for periods prior to September 15, 2004, represent performance of the Institutional Class of Pictet Global Emerging Markets Fund.

The performance quoted represents past performance and does not guarantee future results. Current performance may
be lower or higher than the performance quoted. The investment return and principal value of an investment will fluctuate
so that shares, when redeemed, may be worth more or less than their original cost. Performance current to the most
recent month-end may be obtained at www.forwardfunds.com or by calling (800) 999-6809. The returns assume
reinvestment of dividends and distributions, if any.


MARKET REVIEW
Emerging stock markets continued to fall in October, with the MSCI Emerging Markets Index registering a decline of 7.5% in
USD. Concerns over the scale and duration of the global economic downturn have kept investors cautious on perceived “riskier”
assets such as developing equities. In addition, a further decline in the price of oil and other commodities has impacted stock
performance in many of the resource-rich countries. Russia [-18.4%] was the worst-performing country, reflecting concerns over
financing the fiscal budget at current oil prices. Korea [-17%] was another poor performer due to the (relatively) highly leveraged
banking sector and weakening domestic demand impacting sentiment. Other markets to record declines over the month of more
than 10% included India, Poland, Taiwan and Indonesia. China [+4.6%] was a strong relative performer over the month as the
scale of the monetary and fiscal stimulus packages buoyed the performance of many domestic demand related companies. A
strong performance from the gold companies aided the relative performance of South Africa [-0.2%], whilst the high exposure to
defensive sectors aided relative performance in Mexico [-3.6%].

PERFORMANCE ANALYSIS
The Fund outperformed the benchmark index over the month. In terms of stock selection the largest contribution came from good
performance from our stock holdings in Taiwan and the overweight position in China. Our stock picks in South Africa and Brazil
also made a positive contribution to relative returns. At a sector level, the Fund received a positive impact from the overweight
strategy in Telecom and Utility companies.

PORTFOLIO ACTIVITY—OVERWEIGHTINGS AND UNDERWEIGHTINGS
The Portfolio continued to add to positions in Asia during the month of October with a preference to stay away from deeply
cyclical sectors. Additions have included utilities, Tenaga and Datang Power. In addition, the Fund continues to overweight the
Chinese Internet sector with an increased position in Tencent, the largest social networking site in China.

MARKET OUTLOOK
We retain our relatively cautious outlook for emerging markets over the short term. We anticipate the publication of very weak
economic and earnings data over the coming weeks and whilst much of this may be reflected in cheap equity valuations, markets
are likely to remain volatile as the numbers are released. On a more positive note, aggregate stock valuations, either on P/BV
[1.15x], trailing P/E [8.4x] or dividend yield [4.2%] look unequivocally cheap and signal a good long-term buying opportunity.
PORTFOLIO STRATEGY
Given the cheap levels that markets have reached, the Fund is looking to take advantage of a plethora of bottom-up opportunities,
particularly in companies that are on historic trough valuations with supportive cash flow yields and some earnings visibility into
next year. We are cautious on the sustainability of a rally given the rapid global macroeconomic deterioration we are likely to see
throughout 2009. On a sector basis, the Fund remains underweight Energy and Materials with overweight positions in the
defensive sectors of Telecoms and Utilities. At a country level, we are overweight China, Brazil, Russia, Taiwan and the
Philippines while being underweight India, Korea, and the smaller markets in Eastern Europe. As a reminder, current or future
portfolio holdings are subject to risk.




The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market
performance in the global emerging markets. The index figures do not reflect any deduction for fees, expenses or taxes. It is not
possible to invest directly in an index.

Price-to-book value (P/BV) is the ratio of market price of a company's shares over its book value of equity. The book value of equity
is the value of a company's assets expressed on the balance sheet.

Price-to-earnings (P/E) ratio of a stock is a measure of the price paid for a share relative to the annual income or profit earned by
the firm per share. A higher P/E ratio means that investors are paying more for each unit of income.

The Treasury Yield (or yield curve) is the relation between the interest rate (or cost of borrowing) and the time to maturity of the
debt for a given borrower in a given currency.

Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.


Investing in foreign securities, especially emerging markets, will involve certain additional risks, including exchange rate
fluctuation, less liquidity, greater volatility, and less regulation.

You should consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and
other information about the Fund may be obtained by calling (800) 999-6809 or by downloading one from www.forwardfunds.com.
It should be read carefully before investing.

Forward Funds are distributed by ALPS Distributors, Inc.

Not FDIC Insured | No Bank Guarantee | May Lose Value

FWD002256 113010




As of October 31, 2009, the Fund held the following positions in the portfolio (These holdings may not reflect the current or future
positions in the portfolio. Current or future portfolio holdings are subject to risk. Portfolio holdings are subject to change.):
Forward Emerging Markets Fund
As of          10/31/2009
                                                                                                     # of Shares or                                           % of Total     Currency
Security ID            Ticker     Security Name                                                      Principal Amount       Market Price       Market Value   Net Assets      Code
71654V101              PBR/A      Petroleo Brasileiro SA, ADR                                                347,067    $         40.12    $    13,924,328           4.75%         USD
6771720                005930KS   Samsung Electronics Co., Ltd.                                               15,566             601.73          9,366,577           3.19%         KRW
921937827              BSV        Vanguard Short-Term Bond ETF                                               115,100              80.06          9,214,906           3.14%         USD
2257127                VALE5 BZ   Companhia Vale do Rio Doce                                                 403,823              22.51          9,089,227           3.10%          BRL
02364W105              AMX        America Movil SA de CV, ADR, Series L                                      133,482              44.13          5,890,561           2.01%         USD
6882172                TEVA IT    Teva Pharmaceutical Industries, Ltd.                                       106,273              50.55          5,372,401           1.83%           ILS
465562106              ITUB       Itau Unibanco Holding SA, ADR                                              275,950              19.14          5,281,683           1.80%         USD
368287207              OGZD LI    OAO Gazprom, Sponsored ADR                                                 212,874              23.98          5,105,144           1.74%         USD
B00G0S5                883 HK     CNOOC, Ltd.                                                              3,161,000               1.50          4,733,995           1.61%         HKD
6718976                2628 HK    China Life Insurance Co.                                                   979,436               4.60          4,503,280           1.54%         HKD
6438564                2317 TT    Hon Hai Precision Industry Co., Ltd.                                     1,138,000               3.92          4,457,350           1.52%         TWD
B1G1QD8                1398 HK    Industrial & Commercial Bank of China, Ltd.                              5,509,410               0.80          4,383,316           1.49%         HKD
4560588                LKOH RU    OAO LUKOIL                                                                  71,573              58.70          4,201,020           1.43%         USD
2328595                BBAS3 BZ   Banco do Brasil SA                                                         251,507              16.01          4,027,596           1.37%          BRL
6291819                386 HK     China Petroleum & Chemical Corp.                                         4,572,000               0.85          3,877,369           1.32%         HKD
6693233                005490KS   POSCO                                                                        9,202             414.43          3,813,564           1.30%         KRW
67812M207              ROSN LI    OAO Rosneft Oil Co., GDR                                                   461,000               7.60          3,505,352           1.20%         USD
6810010                363 HK     Shanghai Industrial Holdings, Ltd.                                         742,000               4.70          3,485,721           1.19%         HKD
6563206                MTN SJ     MTN Group, Ltd.                                                            227,962              14.89          3,394,179           1.16%          ZAR
45104G104              IBN        ICICI Bank, Ltd., Sponsored ADR                                            107,223              31.45          3,372,163           1.15%         USD
6719764                PGAS IJ    PT Perusahaan Gas Negara Tbk                                             8,871,000               0.37          3,300,756           1.13%          IDR
6651048                BMRI IJ    PT Bank Mandiri Tbk                                                      6,787,500               0.48          3,257,014           1.11%          IDR
2421041                GFNORTEO   Grupo Financiero Banorte SAB de CV                                         967,668               3.20          3,092,727           1.05%         MXN
B1W0JF2                998 HK     China CITIC Bank                                                         4,115,000               0.75          3,080,224           1.05%         HKD
B0LMTQ3                939 HK     China Construction Bank Corp.                                            3,491,000               0.86          3,009,660           1.03%         HKD
6073556                941 HK     China Mobile, Ltd.                                                         320,750               9.37          3,006,844           1.03%         HKD
456788108              INFY       Infosys Technologies, Ltd., Sponsored ADR                                   65,299              46.00          3,003,754           1.02%         USD
                       PNINFRA
                                  Infrastructure Development Finance Co., Ltd. (Loan Participation
                                                                                                             948,658               3.14          2,978,380           1.02%          USD
                                  Notes issued by UBS AG - London), expiring 07/13/10
035128206              AU         AngloGold Ashanti, Ltd., Sponsored ADR                                      75,504              37.54          2,834,420           0.97%         USD
6075745                CIMB MK    CIMB Group Holdings Bhd                                                    771,200               3.63          2,797,857           0.95%         MYR
6372480                2454 TT    MediaTek, Inc.                                                             194,224              14.00          2,718,357           0.93%         TWD
6451055                005380KS   Hyundai Motor Co.                                                           29,916              90.70          2,713,515           0.93%         KRW
6005850                2353 TT    Acer, Inc.                                                               1,136,840               2.36          2,679,685           0.91%         TWD
68370R109              VIP        OAO Vimpel-Communications, Sponsored ADR                                   147,875              17.93          2,651,399           0.90%         USD
6495042                004940KS   Korea Exchange Bank                                                        230,550              11.36          2,619,986           0.89%         KRW
B1FFT76                IMP SJ     Impala Platinum Holdings, Ltd.                                             113,445              22.00          2,496,187           0.85%          ZAR
B03MYP5                GARAN TI   Turkiye Garanti Bankasi AS                                                 675,024               3.63          2,451,371           0.84%          TRL
5473113                PEO PW     Bank Pekao SA                                                               45,547              53.67          2,444,698           0.83%          PLN
Forward Emerging Markets Fund
As of          10/31/2009
                                                                                                    # of Shares or                                   % of Total     Currency
Security ID            Ticker     Security Name                                                     Principal Amount   Market Price   Market Value   Net Assets      Code
B01CT30                700 HK     Tencent Holdings, Ltd.                                                    136,600          17.41      2,378,557           0.81%         HKD
7320154                OTP HB     OTP Bank Nyrt.                                                             83,930          28.12      2,360,069           0.80%          HUF
B014K55                NATU3 BZ   Natura Cosmeticos SA                                                      130,494          17.97      2,345,277           0.80%          BRL
3327706                VED LN     Vedanta Resources Plc                                                      67,995          34.22      2,326,543           0.79%         GBP
92855S200              VIV        Vivo Participacoes SA, ADR                                                 94,755          24.25      2,297,809           0.78%         USD
6520739                066570KS   LG Electronics, Inc.                                                       24,692          92.96      2,295,380           0.78%         KRW
B4JSTL6                1128 HK    Wynn Macau, Ltd.                                                        1,781,200           1.29      2,291,368           0.78%         HKD
B16YNS1                813 HK     Shimao Property Holdings, Ltd.                                          1,231,169           1.86      2,286,992           0.78%         HKD
204448104              BVN        Compania de Minas Buenaventura SA, ADR                                     67,355          33.57      2,261,107           0.77%         USD
6283979                INDF IJ    PT Indofood Sukses Makmur Tbk                                           7,107,500           0.32      2,246,246           0.77%          IDR
B39Z8W4                691 HK     China Shanshui Cement Group, Ltd.                                       3,134,309           0.71      2,238,082           0.76%         HKD
6249584                000210KS   Daelim Industrial Co., Ltd.                                                35,199          63.46      2,233,790           0.76%         KRW
B19RPM5                OGXP3 BZ   OGX Petroleo e Gas Participacoes SA                                         2,768         806.09      2,231,244           0.76%          BRL
6621580                1303 TT    Nan Ya Plastics Corp.                                                   1,381,560           1.59      2,197,756           0.75%          NTS
71372U104              PWRD       Perfect World Co., Ltd., Sponsored ADR                                     49,641          44.01      2,184,700           0.74%         USD
6224871                017670KS   SK Telecom Co., Ltd.                                                       14,272         152.30      2,173,604           0.74%         KRW
856552203              SBID LI    State Bank of India, GDR                                                   23,662          91.33      2,161,159           0.74%         USD
B02ZK79                TLKM IJ    PT Telekomunikasi Indonesia Tbk                                         2,441,500           0.86      2,102,410           0.72%          IDR
6411673                2881 TT    Fubon Financial Holding Co., Ltd.                                       1,893,000           1.11      2,100,530           0.72%         TWD
6527666                2891 TT    Chinatrust Financial Holding Co., Ltd.                                  3,448,280           0.60      2,071,279           0.71%         TWD
B154564                3988 HK    Bank of China, Ltd.                                                     3,492,000           0.58      2,025,668           0.69%         HKD
B614LY3                VNET3 BZ   Companhia Brasileira de Meios de Pagamento                                216,881           9.20      1,995,709           0.68%          BRL
B16CYP9                RIGD LI    Reliance Industries, Ltd.                                                  24,018          82.93      1,991,801           0.68%         USD
6889106                2330 TT    Taiwan Semiconductor Manufacturing Co., Ltd.                            1,087,959           1.81      1,973,554           0.67%         TWD
6368360                BBL-R TB   Bangkok Bank Pcl, Non-Voting Depository Receipt                           578,100           3.31      1,911,398           0.65%          THB
B16NHT7                272 HK     Shui On Land, Ltd.                                                      3,148,600           0.61      1,908,449           0.65%         HKD
B51BL70                1361 HK    361 Degrees International, Ltd.                                         3,496,231           0.53      1,840,549           0.63%         HKD
40429CAA0              40429CAA   HSBC Finance Corp., Sr. Unsec Notes , 6.750%, 05/15/11                  1,700,000         106.41      1,808,919           0.62%         USD
2380539                GMODELOC   Grupo Modelo SAB de CV Series C, C                                        394,202           4.54      1,789,229           0.61%         MXN
6805049                004170KS   Shinsegae Co., Ltd.                                                         4,063         431.74      1,754,154           0.60%         KRW
                       PNTASTE    Tata Iron & Steel Co., Ltd. (Loan Participation Notes issued by
                                                                                                            173,476          10.04      1,741,778           0.60%          USD
                                  UBS AG - London), expiring 01/11/10
30050A202              EVR LI     Evraz Group SA, GDR                                                        71,565          24.23      1,733,956           0.59%         USD
6536112                2388 HK    BOC Hong Kong Holdings, Ltd.                                              737,500           2.30      1,697,634           0.58%         HKD
6288190                2409 TT    AU Optronics Corp.                                                      1,910,484           0.89      1,694,123           0.58%         TWD
949748AF4              949748AF   Wells Fargo Bank NA , 6.450%, 02/01/11                                  1,600,000         105.49      1,687,810           0.58%         USD
B01VZN9                034220KS   LG Display Co., Ltd.                                                       69,960          23.93      1,674,107           0.57%         KRW
6155250                000810KS   Samsung Fire & Marine Insurance Co., Ltd.                                   9,041         182.07      1,646,132           0.56%         KRW
6218089                992 HK     Lenovo Group, Ltd.                                                      2,938,000           0.56      1,635,836           0.56%         HKD
Forward Emerging Markets Fund
As of          10/31/2009
                                                                                              # of Shares or                                   % of Total     Currency
Security ID            Ticker     Security Name                                               Principal Amount   Market Price   Market Value   Net Assets      Code
6537030                003550KS   LG Corp.                                                             27,960          56.65      1,584,024           0.54%         KRW
B1FY4S9                BISA3 BZ   Brookfield Incorporacoes SA                                         416,848           3.79      1,580,691           0.54%          BRL
06423AAG8              06423AAG   Bank One Corp. , 7.875%, 08/01/10                                 1,500,000         105.00      1,575,065           0.54%         USD
6869937                1101 TT    Taiwan Cement Corp.                                               1,507,570           1.03      1,546,683           0.53%         TWD
818150302              SVST LI    Cherepovets MK Severstal, GDR                                       212,750           7.21      1,534,630           0.52%         USD
B1YCHL8                SBSP3 BZ   Companhia de Saneamento Basico do Estado de Sao Paulo                79,338          19.30      1,531,274           0.52%          BRL
B4W9262                246 HK     Real Gold Mining, Ltd.                                            1,216,700           1.26      1,527,869           0.52%         HKD
81941U105              GAME       Shanda Games, Ltd.                                                  151,304           9.96      1,506,988           0.51%         USD
912828LQ1              912828LQ   United States Treasury Note , 2.375%, 09/30/14                    1,500,000         100.40      1,505,975           0.51%         USD
6672481                3231 TT    Wistron Corp.                                                       868,000           1.67      1,453,091           0.50%         TWD
91688E206              URKA LI    Uralkali, GDR                                                        62,473          22.51      1,406,174           0.48%         USD
6424110                2885 TT    Yuanta Financial Holding Co., Ltd.                                2,116,000           0.66      1,396,405           0.48%         TWD
6263830                762 HK     China Unicom, Ltd.                                                1,086,000           1.27      1,380,838           0.47%         HKD
6889924                SCB/F TB   The Siam Commercial Bank Public Co., Ltd.                           603,300           2.28      1,375,991           0.47%          THB
26852W103              EJ         E-House China Holdings, Ltd., ADS                                    79,472          17.11      1,359,766           0.46%         USD
6697428                2854 TT    Polaris Securities Co., Ltd.                                      2,644,000           0.51      1,356,705           0.46%         TWD
48122U204              SSA LI     Sistema JSFC, Sponsored GDR                                          82,450          16.23      1,337,900           0.46%         USD
6264189                036570KS   NCSoft Corp.                                                         12,481         106.95      1,334,786           0.46%         KRW
36962GX82              36962GX8   General Electric Capital Corp., GMTN, 5.720%, 08/22/11            1,247,000         100.85      1,257,575           0.43%         USD
6461850                004020KS   Hyundai Steel Co.                                                    19,494          63.53      1,238,378           0.42%         KRW
313397QF1              313397QF   Federal Home Loan Mortgage Corp., Discount Note, 12/08/09         1,200,000          99.98      1,199,754           0.41%         USD
6600879                323 HK     Maanshan Iron & Steel Co., Ltd.                                   1,928,000           0.60      1,160,626           0.40%         HKD
B0Y91C1                3323 HK    China National Building Material Co., Ltd.                          533,675           2.15      1,145,822           0.39%         HKD
B3DF0Y6                105560KS   KB Financial Group, Inc.                                             22,820          48.10      1,097,640           0.37%         KRW
86800C104              STP        Suntech Power Holdings Co., Ltd., ADR                                85,976          12.67      1,089,316           0.37%         USD
6211679                042670KS   Doosan Infracore Co., Ltd.                                           69,030          14.23        982,263           0.33%         KRW
2643674                GMEXICOB   Grupo Mexico SAB de CV Series B, B                                  468,500           2.01        940,282           0.32%         MXN
6450988                000720KS   Hyundai Engineering & Construction Co., Ltd.                         16,561          55.21        914,314           0.31%         KRW
151290889              CX         Cemex SAB de CV                                                      87,238          10.38        905,530           0.31%         USD
6568610                069960KS   Hyundai Department Store Co., Ltd.                                    9,122          95.59        871,928           0.30%         KRW
B0CGYD6                LREN3 BZ   Lojas Renner SA                                                      48,624          17.71        861,188           0.29%          BRL
922042858              VWO        Vanguard Emerging Markets ETF                                        12,300          37.60        462,480           0.16%         USD
B23JKK7                VIETRES    Vietnam Resource Investments Holdings, Ltd.                          26,000           5.50        143,000           0.05%         USD
B01H2V4                VIETNGF    Vietnam Growth Fund, Ltd.                                             9,858          11.63        114,599           0.04%         USD
05961W105              BMA        Banco Macro SA, ADR                                                     138          29.23          4,034           0.00%         USD
6718255                2333 HK    Great Wall Motor Co., Ltd.                                              400           1.12            449           0.00%         HKD
B24FZ32                3998 HK    Bosideng International Holdings, Ltd.                                   443           0.18             79           0.00%         HKD
17133M303              CGHD LX    Chunghwa Picture Tubes, Ltd., GDR                                        23           2.62          60.29           0.00%         USD
                       VIETWRT    Vietnam Resource Investments Holdings, Ltd. - Warrants                2,600           0.00              0           0.00%         USD
Forward Emerging Markets Fund
As of          10/31/2009
                                                                                                          % of Total     Currency
Security ID            Ticker   Security Name                               Market Price   Market Value   Net Assets      Code
Futures - Long
000LLLZ9               LLLZ9    E-Mini MSCI Emerging Markets Index Future                   (1,078,235)         -0.37%          USD
                                Net Cash & Cash Equivalents                                 14,263,684           4.86%

				
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Description: Forward Emerging Markets Fund