N-CSRS 1 primary-document.htm
As filed with the Securities and Exchange Commission on January 4, 2024
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
 
Investment Company Act file number 811-03023
 
FORUM FUNDS
Three Canal Plaza, Suite 600
Portland, Maine 04101
 
 
Zachary Tackett, Principal Executive Officer
Three Canal Plaza, Suite 600
Portland, Maine 04101
207-347-2000
 
 
Date of fiscal year end: April 30
 
Date of reporting period: May 1, 2023 – October 31, 2023
 
 

ITEM 1. REPORT TO STOCKHOLDERS.
 
MONONGAHELA
ALL
CAP
VALUE
FUND
Semi-Annual
Report
October
31,
2023
(Unaudited)
MONONGAHELA
ALL
CAP
VALUE
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
October
31,
2023
1
Dear
Shareholder,
We
offer
this
semi-annual
report
for
the
Monongahela
All
Cap
Value
Fund
(the
“Fund”)
for
the
period
from
May
1,
2023,
to
October
31,
2023
(the
“period”).
During
the
period,
the
Fund
was
down
4.17%,
the
S&P
500
Index
(the
“S&P
500,”
an
index
of
the
500
largest
publicly
traded
companies
in
the
US
weighted
by
market
capitalization)
was
up
1.39%
and
the
Russell
2000
Value
Index
(the
“Russell
2000
Value,”
an
index
that
tracks
the
performance
of
small
capitalization
value
companies)
was
down
3.44%.
Calendar
year
to
date
(January
1st
to
October
31st)
the
Fund
is
down
2.45%,
the
S&P
500
is
up
10.69%
and
the
Russell
2000
Value
is
down
6.46%.
The
wide
dispersion
of
equity
market
performance
is
highlighted
by
the
yawning
gap
between
the
S&P
500
and
the
Russell
2000
Value
Index.
The
S&P
500
has
been
led
by
the
mega-cap
weighting
of
the
“Magnificent
Seven”,
which
refers
to
Apple,
Amazon,
Alphabet,
Meta,
Microsoft,
Telsa,
and
Nvidia.
Our
value
style
dictates
certain
disciplines
and
the
Magnificent
Seven
does
not
meet
our
intrinsic
value
requirements.
Although
investors
are
pouring
money
into
the
Magnificent
Seven,
we
are
reminded
of
the
late
Charlie
Munger’s
quote:
“Mimicking
the
herd
invites
regression
to
the
mean.”
The
performance
data
quoted
represents
past
performance
and
is
no
guarantee
of
future
results.
Investment
return
and
principal
value
of
an
investment
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
For
the
most
recent
month-end
performance,
please
call
1-855-
392-9331
or
visit
the
Fund’s
website
at
http://moncapfund.com
.
Center
of
Gravity
On
August
10th,
1628,
the
world’s
most
technologically
advanced
warship,
the
Vasa,
set
sail
on
its
maiden
voyage.
Leaving
Stockholm
harbor,
the
ship
encountered
a
light
wind
less
than
1,300
meters
from
the
dock
and
within
twenty
minutes,
the
Vasa
tragically
sank
with
significant
loss
of
lives.
The
ship
lay
in
the
shallow
waters
of
the
harbor
until
1961,
when
the
extraordinarily
well-preserved
Vasa
was
raised
and
now
rests
in
the
Vasa
Museum
in
Stockholm,
Sweden.
The
design
failure
of
the
Vasa
has
been
intensely
studied
since
the
fatal
mishap,
but
at
the
core,
the
design
and
construction
contributed
to
the
extreme
instability
of
the
vessel.
King
Gustav
II
Adolph
of
Sweden
was
very
involved
with
the
commission,
design,
and
construction
of
the
vessel.
While
Gustav
was
well
educated
and
considered
a
brilliant
military
tactician,
he
had
little
expertise
in
ship
design,
particularly
naval
engineering.
Under
pressure
from
a
war
with
Poland,
Gustav
pressed
the
upper
limits
of
arming
the
Vasa
and
violated
numerous
“laws
of
physics.”
The
King
added
a
second
cache
of
twenty-four
cannons
on
the
second
deck,
rendering
the
warship
extremely
top
heavy
and
unstable.
It
was
estimated
that
the
Vasa
was
carrying
120
tons
of
ballast;
woefully
short
of
the
amount
needed
to
maintain
the
proper
center
of
gravity.
In
a
stability
test
performed
right
before
launch
in
the
presence
of
the
ship’s
Captain
Hannson
and
Navy
Admiral
Fleming,
thirty
men
ran
from
side
to
side
to
test
stability.
After
only
three
traverses,
the
ship
was
rocking
so
violently
the
test
was
halted
for
fear
of
heeling
over.
Not
wanting
to
disappoint
the
King
and
miss
a
deadline,
the
results
were
never
conveyed
(or
so
the
story
is
told)
to
the
King.
With
a
series
of
top-down
change
orders
and
a
breakdown
of
communication
between
the
original
designer,
the
shipbuilders,
and
the
King,
the
ship
was
delivered
unseaworthy;
failure
was
inevitable.
During
the
unprecedented
era
of
ultralow/negative
interest
rates
from
2008
to
2021,
there
was
a
great
deal
of
unstable
construction
occurring
on
government
and
corporate
balance
sheets.
With
the
temptation
of
low
interest
rates
and
the
siren
song
of
investment
bankers,
many
companies
piled
on
debt
through
acquisition
binges
and
unbridled
expansion
plans.
Unfortunately,
a
great
deal
of
the
debt
was
variable
as
opposed
to
fixed
at
low
rates.
Like
the
Vasa,
when
interest
rates
set
sail
at
the
end
of
2021,
the
top-heavy
debt-laden
balance
sheets
began
to
expose
the
folly
of
growth-at-any-cost
syndrome.
When
we
initially
analyze
an
equity
position,
strength
of
balance
sheet
is
the
first
hurdle
and
of
course
the
liability
side
of
the
balance
sheet
is
where
we
begin
our
analysis.
While
some
debt
is
often
warranted,
it
needs
to
be
proportional
to
cash
flow
and
stay
within
the
boundaries
of
healthy
debt
ratios.
An
important
tenant
of
our
fundamental
analysis
is
that
the
ability
to
service
debt
without
disrupting
current
operations
and
future
growth
plans
is
critical
for
long
term
success.
While
we
have
always
tried
to
gauge
management’s
risk
appetite,
it
becomes
even
more
relevant
in
the
environment
of
higher
interest
rates.
Our
belief
is
that
the
higher
rates
we
are
experiencing
are
historically
normal
and
management
needs
heightened
respect
for
the
risk
associated
with
debt.
As
we
continue
to
monitor
and
reduce
risk
in
our
portfolio,
here
are
four
companies
we
have
added.
These
are
very
well
managed
companies
with
minimum
net
debt,
strong
organic
growth,
and
respect
for
the
strength
of
their
balance
sheet.
MONONGAHELA
ALL
CAP
VALUE
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
October
31,
2023
2
Notable
New
Positions
and
Significant
Additions
Kulicke
and
Soffa
Industries
Inc
(“KLIC”)
Information
Technology
Sector
KLIC
designs,
manufactures
and
distributes
capital
equipment
and
tools
for
assembling
semiconductor
devices.
Niche
products
like
ball
bonders,
wafer-level
bonders,
and
wedge
bonders
drive
the
bulk
of
their
capital
equipment
business.
While
the
industry
is
cyclical,
secular
trends
are
positive,
and
management
has
focused
on
research
and
development
to
drive
future
growth.
Executives
have
reduced
the
outstanding
share
count
in
the
last
6
years
from
70
million
to
56
million,
all
from
cash
flow.
The
company
remains
net
debt
free,
and
we
have
begun
accumulating
at
opportune
prices.
Lindsay
Corporation
(“LNN”)
Industrial
Sector
LNN,
based
in
Omaha,
Nebraska,
provides
proprietary
water
management
systems
and
road
infrastructure
products
and
services.
Irrigation
systems
represent
approximately
85%
of
sales
and
innovative
technology
solutions
are
helping
drive
more
efficient
water
usage,
conserve
natural
resources,
and
increase
crop
yields.
The
long-term
secular
trends
are
positive
for
the
two
divisions
mentioned
above.
The
industry
is
cyclical,
and
the
stock
is
trading
towards
the
low
end
of
its
52-
week
range.
LNN
is
a
small
capitalization
stock
with
a
market
cap
of
approximately
$1.3
billion
dollars.
A
strong
balance
sheet
and
discounted
price
make
LNN
an
addition
to
appropriate
portfolios
for
exposure
to
the
industrial
and
agricultural
sectors.
NetScout
Systems
Inc
(“NTCT”)
Information
Technology
Sector
NTCT
is
a
provider
of
cybersecurity
and
service
assurance
for
corporations
and
government
networks.
Their
products
and
services
help
customers
monitor
and
identify
performance
issues
and
defend
against
denial-of-service
attacks
and
network
threats.
Like
the
companies
mentioned
above,
NTCT
has
reduced
share
count
from
cash
flow
(the
net
cash
and
cash
equivalents
transferred
in
and
out
of
a
company)
and
maintained
a
net
debt
free
balance
sheet.
The
shares
are
currently
on
the
low
end
of
their
52-week
range
of
$20
-
$37,
and
at
current
prices
appear
attractive
for
the
Fund.
Williams-Sonoma
Inc
(“WSM”)
Consumer
Discretionary
Sector
WSM
is
a
specialty
retailer
of
high-quality
home
products.
Brands
owned
by
WSM
include
Pottery
Barn,
West
Elm,
Williams
Sonoma,
Rejuvenation,
and
Mark
and
Graham.
Laura
Alber,
President
and
CEO
since
2010,
has
provided
excellent
leadership
with
a
focus
on
growth
and
innovation
while
maintaining
a
pristine
balance
sheet.
Without
incurring
debt,
WSM
has
reduced
share
count
from
87
million
shares
in
fiscal
2018
to
66
million
shares
in
fiscal
2023.
The
private
equity
firm
Leonard
Green
&
Partners
recently
disclosed
a
5%
position
in
WSM.
After
years
of
accumulating
this
position,
the
stock
has
performed
well,
and
we
were
able
add
to
this
core
position
in
the
first
half
of
our
fiscal
year.
Deletions
and
Reductions
Coherent
Corp.,
a
leader
in
optical
materials
and
semiconductors,
added
significant
debt
recently
and
the
debt
levels
exceeded
our
valuation
and
risk
limits.
While
the
company’s
technology
has
attractive
potential,
the
drain
of
interest
expense
and
the
risk
that
accompanies
debt
exceeded
our
comfort
level.
Tapestry,
an
apparel
retailer,
recently
announced
the
acquisition
of
Capri
Holdings
Limited,
also
an
apparel
retailer,
with
expectations
of
significantly
increasing
their
debt.
Like
Coherent,
we
worry
about
the
risk
that
leverage
brings
and
have
reduced
our
position.
Two
positions
were
removed
once
they
exceeded
our
intrinsic
targets
by
a
notable
margin.
These
included
Badger
Meter,
a
flow
management
company,
and
Science
Applications
International
Corporation,
a
provider
of
enterprise
information
technology
for
large,
complex
projects.
Both
are
well
managed
companies
but
our
discipline
of
monitoring
price
compared
to
value
suggested
we
take
profits.
Walgreen
Boots
Alliance,
Inc.
(“Walgreen”)
was
sold
after
years
of
underperforming.
A
lack
of
leadership
in
the
executive
suite,
declining
profit
margins,
and
a
weakened
balance
sheet
led
to
our
sale
of
the
remaining
Walgreen
position.
MONONGAHELA
ALL
CAP
VALUE
FUND
A
MESSAGE
TO
OUR
SHAREHOLDERS
October
31,
2023
3
Much
like
shipbuilders,
we
have
numerous
variables
to
consider
when
constructing
a
safe
portfolio.
We
are
comfortable
with
the
design
of
the
Fund
and
remain
committed
to
our
style
and
discipline
of
value
investing.
As
discussed
above,
one
critical
variable
in
a
higher
interest
rate
environment
is
the
debt
load
on
and
off
the
balance
sheet.
This
will
continue
to
draw
scrutiny
as
we
move
forward
managing
the
fund
in
the
second
half
of
our
fiscal
year.
Thank
you
for
your
investment.
IMPORTANT
RISKS
AND
DISCLOSURES:
Mutual
fund
investing
involves
risk,
including
possible
loss
of
principal.
Turbulence
in
the
financial
markets
and
reduced
liquidity
in
equity,
credit
and
fixed-income
markets
may
negatively
affect
issuers
worldwide,
which
could
have
an
adverse
effect
on
mutual
fund
investments.
A
value
investing
strategy
involves
the
risk
that
undervalued
securities
may
not
appreciate
as
anticipated
or
will
remain
undervalued
for
long
periods
of
time.
Securities
of
micro-,
small-
and
mid-
capitalization
companies
may
be
more
volatile
and
less
liquid
than
those
of
large-cap
companies
due
to
limited
resources
or
product
lines
and
greater
sensitivity
to
adverse
economic
conditions.
The
views
in
this
report
were
those
of
the
Fund
managers
as
of
October
31,
2023,
and
may
not
reflect
their
views
on
the
date
this
report
is
first
published
or
any
time
thereafter.
These
views
are
intended
to
assist
shareholders
in
understanding
their
investment
in
the
Fund
and
do
not
constitute
investment
advice.
This
letter
may
contain
discussions
about
certain
investments
both
held
and
not
held
in
the
portfolio.
All
current
and
future
holdings
are
subject
to
risk
and
to
change.
Cash
flow
is
the
net
cash
and
cash
equivalents
transferred
in
and
out
of
a
company.
Fund
Holdings
are
subject
to
change.
Please
see
the
schedule
of
investments
for
a
complete
list
of
holdings.
Mark
Rodgers
Michael
C.
Rodgers
Co-Manager
Co-Manager
MONONGAHELA
ALL
CAP
VALUE
FUND
PERFORMANCE
CHART
AND
ANALYSIS
October
31,
2023
4
The
following
chart
reflects
the
change
in
the
value
of
a
hypothetical
$10,000
investment,
including
reinvested
dividends
and
distributions,
in
the
Monongahela
All
Cap
Value
Fund
(the
“Fund”)
compared
with
the
performance
of
the
benchmarks,
the
S&P
500
®
Index
(the
“S&P
500”)
and
the
Russell
2000
®
Value
Index
(the
“Russell
2000
Value”),
over
the
past
ten
fiscal
years.
The
S&P
500
is
a
broad-based
measurement
of
the
U.S.
stock
market
based
on
the
performance
of
500
widely
held
large
capitalization
common
stocks.
The
Russell
2000
Value
measures
the
2,000
smallest
of
the
3,000
largest
U.S.
companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
The
total
return
of
the
indices
includes
the
reinvestment
of
dividends
and
income.
The
total
return
of
the
Fund
includes
operating
expenses
that
reduce
returns,
while
the
total
return
of
the
indices
do
not
include
expenses.
The
Fund
is
professionally
managed,
while
the
indices
are
unmanaged
and
are
not
available
for
investment.
Comparison
of
Change
in
Value
of
a
$10,000
Investment
Monongahela
All
Cap
Value
Fund
vs.
S&P
500®
Index
vs.
Russell
2000®
Value
Index
Performance
data
quoted
represents
past
performance
and
is
no
guarantee
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Investment
return
and
principal
value
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
original
cost.
For
the
most
recent
month-end
performance,
please
call
(855)
392-9331.
As
stated
in
the
Fund’s
prospectus,
the
annual
operating
expense
ratio
(gross)
is
1.90%.
However,
the
Fund’s
Adviser has
contractually
agreed
to
waive
its
fee
and/or
reimburse
Fund
expenses
to
limit
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
dividend
and
interest
expenses
on
short
sales,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
to
0.85%,
through
September
1,
2024
(the
“Expense
Cap”).
The
Expense
Cap
may
be
raised
or
eliminated
only
with
the
consent
of
the
Board
of
Trustees.
The
Adviser
may
be
reimbursed
by
the
Fund
for
fees
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
dividend
and
interest
expenses
on
short
sales,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
and
expenses
reimbursed
by
the
Adviser
pursuant
to
the
Expense
Cap
if
such
payment
is
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement,
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/
or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
or
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
will
increase
if
exclusions
from
the
Expense
Cap
apply.
During
the
period,
certain
fees
were
waived
and/or
expenses
reimbursed;
otherwise,
returns
would
have
been
lower.
In
addition,
other
Fund
service
providers
may
waive
all
or
any
portion
of
their
fees
and
may
reimburse
certain
expenses
of
the
Fund.
Shares
redeemed
or
exchanged
within
60
days
of
purchase
will
be
charged
a
1.00%
redemption
fee.
The
performance
table
and
graph
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Returns
greater
than
one
year
are
annualized.
Average
Annual
Total
Returns
Periods
Ended
October
31,
2023
Six
Month
One
Year
Five
Year
Ten
Year
Monongahela
All
Cap
Value
Fund
-4.17%
0.06%
8.46%
8.39%
S&P
500®
Index
1.39%
10.14%
11.01%
11.18%
Russell
2000®
Value
Index
-3.44%
-9.93%
3.26%
5.20%
MONONGAHELA
ALL
CAP
VALUE
FUND
SCHEDULE
OF
INVESTMENTS
October
31,
2023
5
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
October
31,
2023. 
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
is
Common
Stock
and
a
Money
Market
Fund.
The
Level
2
value
displayed
in
this
table
is
U.S.
Treasury
Securities.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Common
Stock
-
89.3%
Communication
Services
-
1.7%
5,500‌
The
Walt
Disney
Co. 
(a)
$
448,745‌
Consumer
Discretionary
-
13.0%
52,500‌
El
Pollo
Loco
Holdings,
Inc. 
(a)
438,375‌
22,000‌
H&R
Block,
Inc.
903,100‌
11,250‌
Hasbro,
Inc.
507,938‌
10,000‌
Tapestry,
Inc.
275,600‌
9,000‌
Williams-Sonoma,
Inc.
1,352,160‌
3,477,173‌
Consumer
Staples
-
10.7%
10,350‌
Alico,
Inc.
252,954‌
5,000‌
Brown-Forman
Corp.,
Class A
287,100‌
10,000‌
General
Mills,
Inc.
652,400‌
18,500‌
Kenvue,
Inc.
344,100‌
4,000‌
Kimberly-Clark
Corp.
478,560‌
1,500‌
McCormick
&
Co.,
Inc.,
Non-
Voting
Shares
95,850‌
3,000‌
Target
Corp.
332,370‌
2,750‌
The
Procter
&
Gamble
Co.
412,582‌
2,855,916‌
Energy
-
4.1%
10,500‌
ONEOK,
Inc.
684,600‌
3,500‌
Phillips
66
399,245‌
1,083,845‌
Financials
-
8.4%
12,000‌
Equitable
Holdings,
Inc.
318,840‌
14,500‌
MetLife,
Inc.
870,145‌
17,500‌
Old
Republic
International
Corp.
479,150‌
5,000‌
The
PNC
Financial
Services
Group,
Inc.
572,350‌
2,240,485‌
Health
Care
-
14.9%
2,500‌
Abbott
Laboratories
236,375‌
4,500‌
AbbVie,
Inc.
635,310‌
16,500‌
Baxter
International,
Inc.
535,095‌
13,000‌
Hologic,
Inc. 
(a)
860,210‌
6,000‌
Merck
&
Co.,
Inc.
616,200‌
6,000‌
Revvity,
Inc.
497,100‌
4,000‌
Zimmer
Biomet
Holdings,
Inc.
417,640‌
25,000‌
Zimvie,
Inc. 
(a)
176,500‌
3,974,430‌
Industrials
-
24.8%
5,000‌
Curtiss-Wright
Corp.
994,050‌
8,000‌
Emerson
Electric
Co.
711,760‌
9,000‌
Fortune
Brands
Innovations,
Inc.
502,200‌
3,250‌
Hubbell,
Inc.
877,825‌
9,000‌
Lindsay
Corp.
1,124,280‌
10,500‌
Masterbrand,
Inc. 
(a)
116,655‌
10,053‌
MillerKnoll,
Inc.
236,245‌
3,250‌
Rockwell
Automation,
Inc.
854,133‌
12,500‌
The
Gorman-Rupp
Co.
369,375‌
6,000‌
Westinghouse
Air
Brake
Technologies
Corp.
636,120‌
1,500‌
Woodward,
Inc.
187,050‌
6,609,693‌
Information
Technology
-
8.0%
12,500‌
Corning,
Inc.
334,500‌
3,500‌
F5,
Inc. 
(a)
530,565‌
10,000‌
Intel
Corp.
365,000‌
5,000‌
Kulicke
&
Soffa
Industries,
Inc.
208,050‌
12,500‌
NetScout
Systems,
Inc. 
(a)
272,875‌
Shares
Security
Description
Value
Information
Technology
-
8.0%
(continued)
3,000‌
Texas
Instruments,
Inc.
$
426,030‌
2,137,020‌
Materials
-
0.9%
2,000‌
PPG
Industries,
Inc.
245,540‌
Utilities
-
2.8%
10,000‌
National
Fuel
Gas
Co.
509,500‌
3,000‌
WEC
Energy
Group,
Inc.
244,170‌
753,670‌
Total
Common
Stock
(Cost
$21,033,021)
23,826,517‌
Principal
Security
Description
Rate
Maturity
Value
U.S.
Government
&
Agency
Obligations
-
0.9%
U.S.
Treasury
Securities
-
0.9%
$
100,000‌
U.S.
Treasury
Bill 
(b)
5.12%
05/16/24
97,129‌
150,000‌
U.S.
Treasury
Bill 
(b)
5.28 
08/08/24
143,925‌
241,054‌
Total
U.S.
Government
&
Agency
Obligations
(Cost
$241,451)
241,054‌
Shares
Security
Description
Value
Money
Market
Fund
-
9.7%
2,593,953‌
First
American
Treasury
Obligations
Fund,
Class X,
5.28% 
(c)
(Cost
$2,593,953)
2,593,953‌
Investments,
at
value
-
99.9%
(Cost
$23,868,425)
$
26,661,524‌
Other
Assets
&
Liabilities,
Net
-
0.1%
33,088‌
Net
Assets
-
100.0%
$
26,694,612‌
(a)
Non-income
producing
security.
(b)
Zero
coupon
bond.
Interest
rate
presented
is
yield
to
maturity.
(c)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
October
31,
2023.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
26,420,470‌
Level
2
-
Other
Significant
Observable
Inputs
241,054‌
Level
3
-
Significant
Unobservable
Inputs
–‌
Total
$
26,661,524‌
MONONGAHELA
ALL
CAP
VALUE
FUND
SCHEDULE
OF
INVESTMENTS
October
31,
2023
6
See
Notes
to
Financial
Statements.
PORTFOLIO
HOLDINGS
%
of
Total
Investments
Communication
Services
1.7‌%
Consumer
Discretionary
13.1‌%
Consumer
Staples
10.7‌%
Energy
4.1‌%
Financials
8.4‌%
Health
Care
14.9‌%
Industrials
24.8‌%
Information
Technology
8.0‌%
Materials
0.9‌%
Utilities
2.8‌%
U.S.
Government
&
Agency
Obligations
0.9‌%
Money
Market
Fund
9.7‌%
100.0‌%
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENT
OF
ASSETS
AND
LIABILITIES
October
31,
2023
7
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$23,868,425)
$
26,661,524‌
Receivables:
Dividends
64,821‌
Trustees'
fees
and
expenses
443‌
Prepaid
expenses
8,477‌
Total
Assets
26,735,265‌
LIABILITIES
Payables:
Fund
shares
redeemed
4,713‌
Accrued
Liabilities:
Investment
Adviser
fees
3,201‌
Fund
services
fees
8,910‌
Other
expenses
23,829‌
Total
Liabilities
40,653‌
NET
ASSETS
$
26,694,612‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
23,040,602‌
Distributable
Earnings
3,654,010‌
NET
ASSETS
$
26,694,612‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
1,634,943‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE*
$
16.33‌
*
Shares
redeemed
or
exchanged
within
60
days
of
purchase
are
charged
a
1.00%
redemption
fee.
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENT
OF
OPERATIONS
SIX
MONTHS
ENDED
October
31,
2023
8
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
$
347,195‌
Interest
income
5,351‌
Total
Investment
Income
352,546‌
EXPENSES
Investment
adviser
fees
104,161‌
Fund
services
fees
91,447‌
Custodian
fees
2,567‌
Registration
fees
7,372‌
Professional
fees
21,701‌
Trustees'
fees
and
expenses
2,817‌
Other
expenses
21,609‌
Total
Expenses
251,674‌
Fees
waived
(133,625‌)
Net
Expenses
118,049‌
NET
INVESTMENT
INCOME
234,497‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
211,190‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(1,608,019‌)
NET
REALIZED
AND
UNREALIZED
LOSS
(1,396,829‌)
DECREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
(1,162,332‌)
MONONGAHELA
ALL
CAP
VALUE
FUND
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
9
See
Notes
to
Financial
Statements.
For
the
Six
Months
Ended
October
31,
2023
For
the
Year
Ended
April
30,
2023
OPERATIONS
Net
investment
income
$
234,497‌
$
505,137‌
Net
realized
gain
211,190‌
309,487‌
Net
change
in
unrealized
appreciation
(depreciation)
(1,608,019‌)
(785,783‌)
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(1,162,332‌)
28,841‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
–‌
(1,171,706‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
5,282,441‌
3,121,192‌
Reinvestment
of
distributions
–‌
1,151,107‌
Redemption
of
shares
(3,585,852‌)
(2,212,515‌)
Redemption
fees
21‌
623‌
Increase
in
Net
Assets
from
Capital
Share
Transactions
1,696,610‌
2,060,407‌
Increase
in
Net
Assets
534,278‌
917,542‌
NET
ASSETS
Beginning
of
Period
26,160,334‌
25,242,792‌
End
of
Period
$
26,694,612‌
$
26,160,334‌
SHARE
TRANSACTIONS
Sale
of
shares
302,737‌
182,494‌
Reinvestment
of
distributions
–‌
67,000‌
Redemption
of
shares
(203,449‌)
(129,518‌)
Increase
in
Shares
99,288‌
119,976‌
MONONGAHELA
ALL
CAP
VALUE
FUND
FINANCIAL
HIGHLIGHTS
10
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period
.
For
the
Six
Months
Ended
October
31,
2023
For
the
Years
Ended
April
30,
2023
2022
2021
2020
2019
NET
ASSET
VALUE,
Beginning
of
Period
$
17.04‌
$
17.83‌
$
19.56‌
$
12.62‌
$
14.03‌
$
13.65‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.15‌
0.34‌
0.28‌
0.23‌
0.28‌
0.28‌
Net
realized
and
unrealized
gain
(loss)
(0.86‌)
(0.33‌)
(0.56‌)
6.92‌
(1.22‌)
0.93‌
Total
from
Investment
Operations
(0.71‌)
0.01‌
(0.28‌)
7.15‌
(0.94‌)
1.21‌
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
–‌
(0.30‌)
(0.25‌)
(0.20‌)
(0.27‌)
(0.26‌)
Net
realized
gain
–‌
(0.50‌)
(1.20‌)
(0.01‌)
(0.20‌)
(0.57‌)
Total
Distributions
to
Shareholders
–‌
(0.80‌)
(1.45‌)
(0.21‌)
(0.47‌)
(0.83‌)
REDEMPTION
FEES(a)
0.00‌(b)
0.00‌(b)
0.00‌(b)
0.00‌(b)
0.00‌(b)
0.00‌(b)
NET
ASSET
VALUE,
End
of
Period
$
16.33‌
$
17.04‌
$
17.83‌
$
19.56‌
$
12.62‌
$
14.03‌
TOTAL
RETURN
(4.17‌)%(c)
0.08‌%
(1.73‌)%
56.94‌%
(7.26‌)%
9.72‌%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Period
(000s
omitted)
$
26,695‌
$
26,160‌
$
25,243‌
$
24,426‌
$
12,755‌
$
12,805‌
Ratios
to
Average
Net
Assets:
Net
investment
income
1.69‌%(d)
2.00‌%
1.47‌%
1.41‌%
2.01‌%
1.98‌%
Net
expenses
0.85‌%(d)
0.85‌%
0.85‌%
0.85‌%
0.85‌%
0.85‌%
Gross
expenses
(e)
1.81‌%(d)
1.90‌%
1.83‌%
2.21‌%
2.57‌%
2.86‌%
PORTFOLIO
TURNOVER
RATE
14‌%(c)
27‌%
30‌%
32‌%
47‌%
37‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
period.
(b)
Less
than
$0.01
per
share.
(c)
Not
annualized.
(d)
Annualized.
(e)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
October
31,
2023
11
Note
1. Organization
The
Monongahela
All
Cap
Value
Fund
(the
“Fund”)
is
a
diversified
portfolio
of
Forum
Funds
(the
“Trust”).
The
Trust
is
a
Delaware
statutory
trust
that
is
registered
as
an
open-end,
management
investment
company
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Act”).
Under
its
Trust
Instrument,
the
Trust
is
authorized
to
issue
an
unlimited
number
of
the
Fund’s
shares
of
beneficial
interest
without
par
value.
The
Fund
commenced
operations
on
July
1,
2013.
The
Fund
seeks
total
return
through
long-term
capital
appreciation
and
income.
Note
2. Summary
of
Significant
Accounting
Policies
The
Fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946,
“Financial
Services
–
Investment
Companies.”
These
financial
statements
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”),
which
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities,
the
disclosure
of
contingent
liabilities
at
the
date
of
the
financial
statements,
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
fiscal
period.
Actual
amounts
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Fund:
Security
Valuation
–
Securities
are
valued
at
market
prices
using
the
last
quoted
trade
or
official
closing
price
from
the
principal
exchange
where
the
security
is
traded,
as
provided
by
independent
pricing
services
on
each
Fund
business
day.
In
the
absence
of
a
last
trade,
securities
are
valued
at
the
mean
of
the
last
bid
and
ask
price
provided
by
the
pricing
service.
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
valued
at
amortized
cost.
Pursuant
to
Rule
2a-5
under
the
Investment
Company
Act,
the
Trust’s
Board
of
Trustees
(the
“Board”)
has
designated
the
Adviser,
as
defined
in
Note
3,
as
the
Fund’s
valuation
designee
to
perform
any
fair
value
determinations
for
securities
and
other
assets
held
by
the
Fund.
The
Adviser
is
subject
to
the
oversight
of
the
Board
and
certain
reporting
and
other
requirements
intended
to
provide
the
Board
the
information
needed
to
oversee
the
Adviser’s
fair
value
determinations.
The
Adviser
is
responsible
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
in
accordance
with
policies
and
procedures
that
have
been
approved
by
the
Board.
Under
these
procedures,
the
Adviser
convenes
on
a
regular
and
ad
hoc
basis
to
review
such
investments
and
considers
a
number
of
factors,
including
valuation
methodologies
and
significant
unobservable
inputs,
when
arriving
at
fair
value.
The
Board
has
approved
the
Adviser’s
fair
valuation
procedures
as
a
part
of
the
Fund’s
compliance
program
and
will
review
any
changes
made
to
the
procedures.
The
Adviser
provides
fair
valuation
inputs.
In
determining
fair
valuations,
inputs
may
include
market-based
analytics
that
may
consider
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values
and
other
relevant
investment
information.
Adviser
inputs
may
include
an
income-based
approach
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
in
determining
fair
value.
Discounts
may
also
be
applied
based
on
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
The
Adviser
performs
regular
reviews
of
valuation
methodologies,
key
inputs
and
assumptions,
disposition
analysis
and
market
activity.
Fair
valuation
is
based
on
subjective
factors
and,
as
a
result,
the
fair
value
price
of
an
investment
may
differ
from
the
security’s
market
price
and
may
not
be
the
price
at
which
the
asset
may
be
sold.
Fair
valuation
could
result
in
a
different
Net
Asset
Value
(“NAV”)
than
a
NAV
determined
by
using
market
quotes.
GAAP
has
a
three-tier
fair
value
hierarchy.
The
basis
of
the
tiers
is
dependent
upon
the
various
“inputs”
used
to
determine
the
value
of
the
Fund’s
investments.
These
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
-
Quoted
prices
in
active
markets
for
identical
assets
and
liabilities.
Level
2
-
Prices
determined
using
significant
other
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Short-term
securities
with
maturities
of
sixty
days
or
less
are
valued
at
amortized
cost,
which
approximates
market
value,
and
are
categorized
as
Level
2
in
the
hierarchy.
Municipal
securities,
long-term
U.S.
government
obligations
and
corporate
debt
securities
are
valued
in
accordance
with
the
evaluated
price
supplied
by
a
pricing
service
and
generally
categorized
as
Level
2
in
the
hierarchy.
Other
securities
that
are
categorized
as
Level
2
in
the
hierarchy
include,
but
are
not
limited
to,
warrants
that
do
not
trade
on
an
exchange,
securities
valued
at
the
mean
between
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
October
31,
2023
12
the
last
reported
bid
and
ask
quotation
and
international
equity
securities
valued
by
an
independent
third
party
with
adjustments
for
changes
in
value
between
the
time
of
the
securities’
respective
local
market
closes
and
the
close
of
the
U.S.
market.
Level
3
-
Significant
unobservable
inputs
(including
the
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments).
The
aggregate
value
by
input
level,
as
of
October
31,
2023,
for
the
Fund’s
investments
is
included
in
the
Fund’s
Schedule
of
Investments.
Security
Transactions,
Investment
Income
and
Realized
Gain
and
Loss
–
Investment
transactions
are
accounted
for
on
the
trade
date.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Foreign
dividend
income
is
recorded
on
the
ex-
dividend
date
or
as
soon
as
possible
after
determining
the
existence
of
a
dividend
declaration
after
exercising
reasonable
due
diligence.
Income
and
capital
gains
on
some
foreign
securities
may
be
subject
to
foreign
withholding
taxes,
which
are
accrued
as
applicable.
Interest
income
is
recorded
on
an
accrual
basis.
Premium
is
amortized
to
the
next
call
date
above
par,
and
discount
is
accreted
to
maturity
using
the
effective
interest
method.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Distributions
to
Shareholders
–
The
Fund
declares
any
dividends
from
net
investment
income
and
pays
them
annually.
Any
net
capital
gains
and
net
foreign
currency
gains
realized
by
the
Fund
are
distributed
at
least
annually.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributions
are
based
on
amounts
calculated
in
accordance
with
applicable
federal
income
tax
regulations,
which
may
differ
from
GAAP.
These
differences
are
due
primarily
to
differing
treatments
of
income
and
gain
on
various
investment
securities
held
by
the
Fund,
timing
differences
and
differing
characterizations
of
distributions
made
by
the
Fund.
Federal
Taxes
–
The
Fund
intends
to
continue
to
qualify
each
year
as
a
regulated
investment
company
under
Subchapter
M
of
Chapter
1,
Subtitle
A,
of
the
Internal
Revenue
Code
of
1986,
as
amended
(“Code”),
and
to
distribute
all
of
its
taxable
income
to
shareholders.
In
addition,
by
distributing
in
each
calendar
year
substantially
all
of
its
net
investment
income
and
capital
gains,
if
any,
the
Fund
will
not
be
subject
to
a
federal
excise
tax.
Therefore,
no
federal
income
or
excise
tax
provision
is
required.
The
Fund
recognizes
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statement
of
Operations.
During
the
period,
the
Fund
did
not
incur
any
interest
or
penalties.
The
Fund
files
a
U.S.
federal
income
and
excise
tax
return
as
required.
The
Fund’s
federal
income
tax
returns
are
subject
to
examination
by
the
Internal
Revenue
Service
for
a
period
of
three
fiscal
years
after
they
are
filed.
As
of
October
31,
2023,
there
are
no
uncertain
tax
positions
that
would
require
financial
statement
recognition,
de-recognition
or
disclosure.
Income
and
Expense
Allocation
–
The
Trust
accounts
separately
for
the
assets,
liabilities
and
operations
of
each
of
its
investment
portfolios.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
investment
portfolios
in
an
equitable
manner.
Redemption
Fees
–
A
shareholder
who
redeems
or
exchanges
shares
within
60
days
of
purchase
will
incur
a
redemption
fee
of
1.00%
of
the
current
NAV
of
shares
redeemed
or
exchanged,
subject
to
certain
limitations.
The
fee
is
charged
for
the
benefit
of
the
remaining
shareholders
and
will
be
paid
to
the
Fund
to
help
offset
transaction
costs.
The
fee
is
accounted
for
as
an
addition
to
paid-in
capital.
The
Fund
reserves
the
right
to
modify
the
terms
of
or
terminate
the
fee
at
any
time.
There
are
limited
exceptions
to
the
imposition
of
the
redemption
fee.
Redemption
fees
incurred
for
the
Fund,
if
any,
are
reflected
on
the
Statements
of
Changes
in
Net
Assets.
Commitments
and
Contingencies
–
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
provide
general
indemnifications
by
the
Fund
to
the
counterparty
to
the
contract.
The
Fund’s
maximum
exposure
under
these
arrangements
is
dependent
on
future
claims
that
may
be
made
against
the
Fund
and,
therefore,
cannot
be
estimated;
however,
based
on
experience,
the
risk
of
loss
from
such
claims
is
considered
remote.
The
Fund
has
determined
that
none
of
these
arrangements
requires
disclosure
on
the
Fund’s
balance
sheet.
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
October
31,
2023
13
Note
3. Fees
and
Expenses
Investment
Adviser
–
Monongahela
Capital
Management
(the
“Adviser”)
is
the
investment
Adviser
to
the
Fund.
Pursuant
to
an
investment
advisory
agreement,
the
Adviser
receives
an
advisory
fee,
payable
monthly,
from
the
Fund
at
an
annual
rate
of
0.75%
of
the
Fund’s
average
daily
net
assets.
Distribution
–
Foreside
Fund
Services,
LLC,
a
wholly
owned
subsidiary
of
Foreside
Financial
Group,
LLC
(d/b/a
ACA
Group)
(the
“Distributor”),
acts
as
the
agent
of
the
Trust
in
connection
with
the
continuous
offering
of
shares
of
the
Fund.
The
Fund
does
not
have
a
distribution
(12b-1)
plan;
accordingly,
the
Distributor
does
not
receive
compensation
from
the
Fund
for
its
distribution
services.
The
Adviser
compensates
the
Distributor
directly
for
its
services.
The
Distributor
is
not
affiliated
with
the
Adviser
or
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings
LLC
(d/b/a
Apex
Fund
Services)
(“Apex”)
or
their
affiliates.
Other
Service
Providers
–
Apex
provides
fund
accounting,
fund
administration,
compliance
and
transfer
agency
services
to
the
Fund.
The
fees
related
to
these
services
are
included
in
Fund
services
fees
within
the
Statement
of
Operations.
Apex
also
provides
certain
shareholder
report
production
and
EDGAR
conversion
and
filing
services.
Pursuant
to
an
Apex
Services
Agreement,
the
Fund
pays
Apex
customary
fees
for
its
services.
Apex
provides
a
Principal
Executive
Officer,
a
Principal
Financial
Officer,
a
Chief
Compliance
Officer
and
an
Anti-Money
Laundering
Officer
to
the
Fund,
as
well
as
certain
additional
compliance
support
functions.
Trustees
and
Officers
–
Each
Independent
Trustee’s
annual
retainer
is
$45,000
($55,000
for
the
Chairman).
The
Audit
Committee
Chairman
receives
an
additional
$2,000
annually.
The
Trustees
and
the
Chairman
may
receive
additional
fees
for
special
Board
meetings.
Each
Trustee
is
also
reimbursed
for
all
reasonable
out-of-pocket
expenses
incurred
in
connection
with
his
or
her
duties
as
a
Trustee,
including
travel
and
related
expenses
incurred
in
attending
Board
meetings.
The
amount
of
Trustees’
fees
attributable
to
the
Fund
is
disclosed
in
the
Statement
of
Operations.
Certain
officers
of
the
Trust
are
also
officers
or
employees
of
the
above
named
service
providers,
and
during
their
terms
of
office
received
no
compensation
from
the
Fund.
Note
4. Expense
Reimbursements
and
Fees
Waived
The
Adviser
 has
contractually
agreed
to
waive
its
fee
and/or
reimburse
Fund
expenses
to
limit
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
dividend
and
interest
expenses
on
short
sales,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses
)
to
0.85%
,
through
at
least
September
1,
2024
(“Expense
Cap”).
Other
Fund
service
providers
have
voluntarily
agreed
to
waive
a
portion
of
their
fees.
The
voluntary
waivers
may
be
changed
or
eliminated
at
any
time.
The
Expense
Cap
may
only
be
raised
or
eliminated
with
the
consent
of
the
Board
of
Trustees.
For
the
period
ended
October
31,
2023
,
fees
waived
and
expenses
reimbursed
were
as
follows:
The
Adviser
may
be
reimbursed
by
the
Fund
for
fees
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
dividend
and
interest
expenses
on
short
sales,
acquired
fund
fees
and
expenses,
proxy
expenses
and
extraordinary
expenses)
and
expenses
reimbursed
by
the
Adviser
pursuant
to
the
Expense
Cap
if
such
payment
is
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement,
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
or
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
As
of
October
31,
2023,
$505,170
is
subject
to
recapture
by
the
Adviser
.
Other
waivers
are
not
eligible
for
recoupment.
In
addition,
other
Fund
service
providers
may
waive
all
or
any
portion
of
their
fees
and
may
reimburse
certain
expenses
of
the
Fund.
Note
5. Security
Transactions
The
cost
of
purchases
and
proceeds
from
sales
of
investment
securities
(including
maturities),
other
than
short-term
investments,
during
the
period
ended
October
31,
2023
were
$3,770,283
and
$3,493,885,
respectively.
Investment
Adviser
Fees
Waived
Other
Waivers
Total
Fees
Waived
and
Expenses
Reimbursed
$
89,968‌
$
43,657‌
$
133,625‌
MONONGAHELA
ALL
CAP
VALUE
FUND
NOTES
TO
FINANCIAL
STATEMENTS
October
31,
2023
14
Note
6. Federal
Income
Tax
As
of
October
31,
2023,
cost
of
investments
for
federal
income
tax
purposes
is
substantially
the
same
for
financial
statement
purposes
and
net
unrealized
appreciation
consists
of:
As
of
April
30,
2023,
distributable
earnings
on
a
tax
basis
were
as
follows:
The
difference
between
components
of
distributable
earnings
on
a
tax
basis
and
the
amounts
reflected
in
the
Statement
of
Assets
and
Liabilities
are
primarily
due
to
wash
sales
and
equity
return
of
capital.
Note
7. Subsequent
Events
Subsequent
events
occurring
after
the
date
of
this
report
through
the
date
these
financial
statements
were
issued
have
been
evaluated
for
potential
impact,
and
the
Fund
has
had
no
such
events.
Gross
Unrealized
Appreciation
$
4,352,589‌
Gross
Unrealized
Depreciation
(1,559,490‌)
Net
Unrealized
Appreciation
$
2,793,099‌
Undistributed
Ordinary
Income
$
148,656‌
Undistributed
Long-Term
Gain
301,069‌
Unrealized
Appreciation
4,366,617‌
Total
$
4,816,342‌
MONONGAHELA
ALL
CAP
VALUE
FUND
ADDITIONAL
INFORMATION
October
31,
2023
15
Liquidity
Risk
Management
Program
The
Fund
has
adopted
and
implemented
a
written
liquidity
risk
management
program,
as
required
by
Rule
22e-4
(the
“Liquidity
Rule”)
under
the
Investment
Company
Act
of
1940,
as
amended.
The
liquidity
risk
management
program
is
reasonably
designed
to
assess
and
manage
the
Fund’s
liquidity
risk,
taking
into
consideration,
among
other
factors,
the
Fund’s
investment
strategy
and
the
liquidity
of
the
portfolio
investments
during
normal
and
reasonably
foreseeable
stressed
conditions,
its
short
and
long-term
cash
flow
projections
and
its
cash
holdings
and
access
to
other
funding
sources.
The
Board
approved
the
designation
of
a
Liquidity
Committee
as
the
administrator
of
the
liquidity
risk
management
program
(the
“Program
Administrator”).
The
Program
Administrator
is
responsible
for
the
administration
and
oversight
of
the
program
and
for
reporting
to
the
Board
on
at
least
an
annual
basis
regarding,
among
other
things,
the
program’s
operation,
adequacy,
and
effectiveness.
The
Program
Administrator
assessed
the
Fund’s
liquidity
risk
profile
based
on
information
gathered
for
the
period
July
1,
2022
through
June
30,
2023
in
order
to
prepare
a
written
report
to
the
Board
for
review
at
its
meeting
held
on
September
14,
2023.
The
Program
Administrator’s
written
report
stated
that:
(i)
the
Fund
is
able
to
meet
redemptions
in
normal
and
reasonably
foreseeable
stressed
conditions
and
without
significant
dilution
of
remaining
shareholders’
interests
in
the
Fund;
(ii)
the
Fund’s
strategy
is
appropriate
for
an
open-end
mutual
fund;
(iii)
the
liquidity
classification
determinations
regarding
the
Fund’s
portfolio
investments,
which
take
into
account
a
variety
of
factors
and
may
incorporate
analysis
from
one
or
more
third-party
data
vendors,
remained
appropriate;
(iv)
the
Fund
did
not
approach
the
internal
triggers
set
forth
in
the
liquidity
risk
management
program
or
the
regulatory
percentage
limitation
(15%)
on
holdings
in
illiquid
investments;
(v)
it
continues
to
be
appropriate
to
not
set
a
“highly
liquid
investment
minimum”
for
the
Fund
because
the
Fund
primarily
holds
“highly
liquid
investments”;
and
(vi)
the
liquidity
risk
management
program
remains
reasonably
designed
and
adequately
implemented
to
prevent
violations
of
the
Liquidity
Rule.
No
significant
liquidity
events
impacting
the
Fund
or
proposed
changes
to
the
Program
were
noted
in
the
report.
Proxy
Voting
Information
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
securities
held
in
the
Fund’s
portfolio
is
available,
without
charge
and
upon
request,
by
calling
(855)
392-9331
and
on
the
U.S.
Securities
and
Exchange
Commission’s
(the
“SEC”)
website
at
www.sec.gov.
The
Fund’s
proxy
voting
record
for
the
most
recent
twelve-month
period
ended
June
30
is
available,
without
charge
and
upon
request,
by
calling
(855)
392-9331
and
on
the
SEC’s
website
at
www.sec.gov.
Availability
of
Quarterly
Portfolio
Schedules
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
on
Form
N-PORT.
Forms
N-PORT
are
available
free
of
charge
on
the
SEC’s
website
at
www.sec.gov.
Shareholder
Expense
Example
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
including
redemption
fees,
and
(2)
ongoing
costs,
including
management
fees
and
other
Fund
expenses.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund,
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
from
May
1,
2023
through
October
31,
2023.
Actual
Expenses
–
The
first
line
of
the
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
line,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
line
under
the
heading
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
the
period.
MONONGAHELA
ALL
CAP
VALUE
FUND
ADDITIONAL
INFORMATION
October
31,
2023
16
Hypothetical
Example
for
Comparison
Purposes
–
The
second
line
of
the
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
redemption
fees.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactoinal
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
May
1,
2023
Ending
Account
Value
October
31,
2023
Expenses
Paid
During
Period*
Annualized
Expense
Ratio*
Actual
$
1,000.00
$
958.33
$
4.18
0.85%
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,020.86
$
4.32
0.85%
*
Expenses
are
equal
to
the
Fund’s
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184,
the
number
of
days
in
the
most
recent
fiscal
half-year,
divided
by
366
to
reflect
the
half-year
period.
MONONGAHELA
ALL
CAP
VALUE
FUND
FOR
MORE
INFORMATION:
P.O.
Box
588
Portland,
ME
04112
(855)
392-9331
(toll
free)
monongahela.ta@apexfs.com
www.Moncapfund.com
INVESTMENT
ADVISER
Monongahela
Capital
Management
223
Mercer
Street
Harmony,
PA
16037
TRANSFER
AGENT
Apex
Fund
Services
P.O.
Box
588
Portland,
ME
04112
www.apexgroup.com
DISTRIBUTOR
Foreside
Fund
Services,
LLC
Three
Canal
Plaza,
Suite
100
Portland,
Maine
04101
www.foreside.com
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund’s
risks,
objectives,
fees
and
expenses,
experience
of
its
management,
and
other
information.
211-SAR-1023
ITEM 2. CODE OF ETHICS.
Not applicable.
 
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
 
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
 
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
 
ITEM 6. INVESTMENTS.
(a)
    
Included as part of report to shareholders under Item 1.
(b)
   
Not applicable.
 
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
 
ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
 
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
 
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Registrant does not accept nominees to the board of trustees from shareholders.
 
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
 
ITEM 13. EXHIBITS.
 
(a)(1)  Not applicable.
 
(a)(3)  Not applicable.
 

 

SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Registrant              Forum Funds
 
By:
/s/ Zachary Tackett
 
 
Zachary Tackett, Principal Executive Officer
 
 
 
 
Date:
January 4, 2024
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 
 
By:
/s/ Zachary Tackett
 
 
Zachary Tackett, Principal Executive Officer
 
 
 
 
Date:
January 4, 2024
 
 
 
By:
/s/ Karen Shaw
 
 
Karen Shaw, Principal Financial Officer
 
 
 
 
Date:
January 4, 2024