The document discusses infrastructure investments and the Forward Global Infrastructure Fund. It provides details on what constitutes infrastructure, the large amount of projected global infrastructure spending in the coming decades, and the benefits of infrastructure investments such as inelastic demand, low competition, and inflation-linked cash flows. The Forward Global Infrastructure Fund seeks total return through infrastructure-related securities globally from both developed and emerging markets.

1. MARKET MATTERS NOVEMBER 2009
Why Infrastructure?
Through an investment universe of global companies delivering essential services, infrastructure securities
can offer investors equity participation in the acceleration of worldwide infrastructure spending.
What Is Infrastructure?
The infrastructure asset class comprises the basic building blocks required for communities to function, providing essential services such as
transportation, communication, water and energy. A critical component of a society’s vitality, infrastructure directly impacts economic growth,
competitiveness, productivity and overall quality of life.
The chart below details the Forward Global Infrastructure Fund’s extensive and diverse investable universe of global infrastructure companies
as of September 30, 2009.
The Forward Global Infrastructure Fund Investable Universe
Transportation Communication Energy Utilities Related Industries
$427 billion $426 billion $1.5 trillion $1.5 trillion $2.5 trillion
market cap market cap market cap market cap market cap
81 companies 14 companies 160 companies 128 companies 241 companies
» Toll Roads » Wireless Networks » Oil & Gas Storage » Electricity » Building Materials
» Airports » Cable » Fuel Transportation » Gas » Construction & Engineering
» Ports » Satellite Systems » Oil & Gas Drilling » Water » Metals & Mining
» Railroads » Power Generation » Agriculture
Source: Forward Management, LLC. Data as of 9/30/09. Portfolio holdings are subject to change.
Infrastructure Demand Drivers Future Population Growth and Rising Urbanization
Powerful secular forces such as globalization and 10
Total Population 8.8 9.0 9.2
urbanization are driving the increasing need for new and 8.3 8.6
7.7 8.0
Urban Population
8 7.3
6.5 6.9
POPULATION (billions)
improved infrastructure around the world. It is estimated
5.7 6.1
that $25 to $30 trillion will be allocated toward global 6 5.3
4.5 4.9
infrastructure over the coming two decades—$650 billion of 3.7 4.1
3.0 3.3
4
which will be spent over the next two years.1 2.5 2.8
2
RISING POPULATION GROWTH AND URBANIZATION 0
As illustrated in the adjacent chart, half of the world’s nearly 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
7 billion people now live in cities. This rising urbanization Source: United Nations, 2009
is putting increased demands on energy distribution and
water systems, roads, hospitals and schools in cities
around the world. Projected Annual Global Infrastructure Investment ($B)
GLOBAL DEMAND FOR NEW INFRASTRUCTURE
The global economy could see up to $30 trillion of Russia / FSU
infrastructure investments in the next twenty years, with Europe $56
North America $305
nearly 40% supporting transportation upgrades.2 While $180 China
emerging markets have the widest investment gaps to fill, Middle East $200
the chart to the right shows that inferior infrastructure is a Africa $56
$10 Non-China Asia
growing problem for many developed nations as well. $200
40%
AGING OR INADEQUATE INFRASTRUCTURE
35%
Latin America 30%
$45
Existing U.S. infrastructure, much of which was constructed 25%
20%
over 50 years ago, has been given an overall “poor” rating 15%
10%
by the American Society of Civil Engineers. Their 2009 5%
10% 30% 38% 23%
0%
report concluded that $2.2 trillion is needed over a 5-year Water Power Transport Telecom
Source: CIBC World Markets, 2009
period to bring conditions to acceptable levels.3

2. MARKET MATTERS NOVEMBER 2009
Infrastructure Portfolio Benefits
Infrastructure investments may become an increasingly essential element of asset allocation. Infrastructure’s distinct characteristics have
historically generated equity-like returns with moderate volatility. It also can provide low correlations to other asset classes, which can enhance
the risk-adjusted performance of a diversifed portfolio. Other important characteristics fundamental to infrastructure include:
INELASTIC DEMAND
Infrastructure provides an economic lifeline, delivering Global Air Traffic Growth
essential, irreplaceable services that make the asset class
100
GLOBAL REVENUE PASSENGER TON-MILES
relatively resistant to wide swings in demand, despite
September 11
shifts in economic growth or other external events. For Attacks
80
2001
example, as seen in the chart to the right, air traffic growth Recession
has proven to be highly resistant to global events, and and Gulf War
(in millions)
60 1990-1992
continues to climb steadily.
Recession
40 1980-1982
Oil Shocks
1974-1976
FREE OF COMPETITION 20
Due to capital and commodity constraints, infrastructure
assets tend to operate with little to no competition. 0
1960 1970 1980 1990 2000
Government oversight and regulation may also benefit
companies that own or manage basic public resources by Source: Bureau of Transportation Statistics, 2009.
creating an additional barrier to entry and further limiting
competition.
Life of Infrastructure Assets before Major Maintenance Is Required
Tunnels 60
LONG-LIFE ASSETS WITH LOW MAINTENANCE
An infrastructure asset’s life can span hundreds of years. Electricity Gridlines 60
The chart to the right shows that periodic maintenance is Bridges, Trestles & Overpasses 45
required only every 10-60 years. Sewage Treatment & Disposal 30
Highways, Roads & Streets 30
INFLATION-LINKED CASH FLOWS Waste Disposal Facilities 20
Cash flows generated by infrastructure companies are 10
Telecommunication Cables
typically linked to measures of economic growth, such
0 10 20 30 40 50 60
as inflation. For instance, toll road and bridge contracts NUMBER OF YEARS
often include provisions linking toll increases to the rate of Source: Macquarie Research, May 2007.
inflation.
Forward Global Infrastructure Fund
The Forward Global Infrastructure Fund takes a comprehensive approach to infrastructure investing, offering access to:
• companies that operate existing infrastructure assets, which typically benefit from more stable cash flow and offer a lower risk-return profile; and
• companies that stand to benefit from the development of new infrastructure networks and services around the globe, which may include more
growth-oriented investments.
The primary drivers of infrastructure investing—globalization, demographic shifts and technological advances—are fueling a potential $30 trillion
spending spree in the next 20+ years. Combined with global stimulus efforts, we believe the infrastructure market may experience tremendous
growth over the next several years.
By offering investors broad exposure to infrastructure investments, the Forward Global Infrastructure Fund offers a compelling vehicle through
which to access global infrastructure.
For more information, visit us at www.forwardfunds.com or call (888) 312-4100.
1
CiBC World Markets, 2009. 2 Ibid., 2009. 3 ASCE, 2009.
The Forward Global Infrastructure Fund seeks total return through capital appreciation and current income. The Fund invests primarily in global infrastruc-
ture-related securities. Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest
expense to pretax income.The S&P Global Infrastructure Index is designed to provide liquid exposure to the leading publicly listed companies in the global
infrastructure industry, from both developed markets and emerging markets. You cannot invest directly in an index.
Because the fund concentrates its investments in infrastructure-related entities, the fund has greater exposure to the potential adverse eco-
nomic, regulatory, political and other changes affecting such entities. The fund is non-diversified, meaning it may concentrate its assets in fewer
individual holdings than a diversified fund. Therefore, the fund is more exposed to individual stock volatility than a diversified fund. The fund also
invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods.
You should consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other
information about the funds may be obtained by calling (800) 999-6809 or by downloading one from www.forwardfunds.com. It should be
read carefully before investing.
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