Forum Funds

11/04/2026 | Press release | Distributed by Public on 11/04/2026 14:46

Annual Report by Investment Company (Form N-CSR)

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
190 Middle Street, Suite 101
Portland, Maine 04101
Zachary Tackett, Principal Executive Officer
190 Middle Street, Suite 101
Portland, Maine 04101
207-347-2000
Date of fiscal year end August 31
Date of reporting period: September 1, 2025 - August 31, 2026

ITEM 1. REPORT TO SHAREHOLDERS.
(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act, as amended ("Act"), is attached hereto.

MAI Managed Volatility Fund

Annual Shareholder Report - August 31, 2026

MAIPX

: Institutional Class

Fund Overview

This annual shareholder report contains important information about the MAI Managed Volatility Fund for the period of September 1, 2025, to August 31, 2026, including certain material changes to the Fund that occurred during the period. You can find additional information about the Fund at https://www.maifunds.com/. You can also request this information by contacting us at (877) 414-7884.

What were the Fund's costs for the last year?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Institutional Class
$138
1.30%

How did the Fund perform in the last year?

Over the year ending August 31, 2026, the Fund's Institutional Class (MAIPX) returned 12.03%. Over the same period, the S&P 500 Index (S&P) returned 20.38%. The Fund captured approximately 60% of the market return with about 40% of the volatility. The Sharpe Ratio, a measure of return per unit of risk, was 1.4 versus 1.2 for the S&P.

The Fund's process is grounded in the view that markets do not typically move in straight lines, and that investor emotion (fear and euphoria) can influence short-term price behavior. In seeking to manage the volatility of returns, the Fund accepts that it may lag sharply moving markets. This past year's macro environment featured interest rate volatility, inflation, and equity concentration risks. The Fund primarily navigated these changes through active management of the options portfolio. Rather than following a fixed or pre-planned options schedule, the investment process sought to adapt to changing market conditions:

  • Net exposure, option tenor, and strike selection were adjusted as conditions changed

  • Positioning was informed by volatility indicators such as the Cboe Volatility Index (VIX), options term structure, and skew

  • Option strikes and expirations were staggered across the book

  • Risk management remained a primary focus of the process, given the difficulty of predicting the timing or depth of market regime changes

While implied volatility indicated by the VIX spiked at times, it was generally below the long-term average. Writing contracts on parts of the curve where implied volatility was slightly higher supported the collection of option premium while still enabling us to manage the directional sensitivity of the Fund's equity portfolio. Net, or delta adjusted exposure, was consistently below gross exposure levels.

Overall, return contributions from uncorrelated sources (option premium, interest and dividends) supported consistency of returns across the changing macro and market conditions.

Total Return Based on a $50,000 Investment

Table Summary
Date
Institutional Class
S&P 500® Index
08/31/16
$50,000
$50,000
11/30/16
$50,124
$50,916
02/28/17
$51,760
$55,007
05/31/17
$52,268
$56,420
08/31/17
$53,099
$58,117
11/30/17
$54,732
$62,562
02/28/18
$54,904
$64,414
05/31/18
$55,643
$64,536
08/31/18
$57,890
$69,544
11/30/18
$57,261
$66,487
02/28/19
$57,190
$67,429
05/31/19
$57,557
$66,977
08/31/19
$59,816
$71,576
11/30/19
$61,783
$77,198
02/29/20
$58,521
$72,953
05/31/20
$58,758
$75,575
08/31/20
$61,264
$87,277
11/30/20
$64,081
$90,674
02/28/21
$65,475
$95,780
05/31/21
$68,742
$106,046
08/31/21
$70,528
$114,477
11/30/21
$71,752
$115,991
02/28/22
$71,293
$111,477
05/31/22
$70,170
$105,728
08/31/22
$69,475
$101,624
11/30/22
$71,533
$105,308
02/28/23
$71,437
$102,903
05/31/23
$73,759
$108,817
08/31/23
$75,230
$117,828
11/30/23
$77,127
$119,883
02/29/24
$79,109
$134,240
05/31/24
$80,307
$139,489
08/31/24
$82,499
$149,801
11/30/24
$84,838
$160,512
02/28/25
$86,329
$158,948
05/31/25
$86,609
$158,352
08/31/25
$90,554
$173,589
11/30/25
$93,321
$184,589
02/28/26
$93,311
$185,956
05/31/26
$99,206
$205,512
08/31/26
$101,447
$208,966

The above chart represents historical performance of a hypothetical $50,000 investment over the past 10 years. Updated performance can be found at https://www.maifunds.com/.

Average Annual Total Returns

Table Summary
One Year
Five Year
Ten Year
Institutional Class
12.03%
7.54%
7.33%
S&P 500® Index
20.38%
12.79%
15.37%

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Fund Statistics

Table Summary
Total Net Assets
$238,578,400
# of Portfolio Holdings
86
Portfolio Turnover Rate
9%
Investment Advisory Fees (Net of fees waived)
$1,434,762

Sector Weightings

(% total investments)

Table Summary
Value
Value
Written Options
(1.4)%
Materials
0.3%
Real Estate
0.5%
Utilities
1.2%
Consumer Staples
2.6%
Energy
3.0%
Industrials
3.5%
Consumer Discretionary
5.1%
Health Care
5.7%
Communication Services
6.9%
Financials
10.3%
Information Technology
24.6%
U.S. Government & Agency Obligations
15.8%
Money Market Fund
21.9%

Top Ten Holdings

(% total net assets)*

Table Summary
Apple, Inc.
5.3%
NVIDIA Corp.
4.6%
Microsoft Corp.
4.2%
Alphabet, Inc., Class A
4.0%
Broadcom, Inc.
2.9%
Amazon.com, Inc.
2.4%
Advanced Micro Devices, Inc.
2.4%
Visa, Inc., Class A
2.3%
JPMorgan Chase & Co.
1.9%
Meta Platforms, Inc., Class A
1.7%

*Excludes cash equivalents, such as money market fund and government securities, including that portion of cash equivalents held as collateral.

Asset Class Weightings

(% total investments)

Table Summary
Common Stock
63.7%
U.S. Government & Agency Obligations
15.8%
Warrants
0.0%
Money Market Fund
21.9%
Written Options
(1.4)%

Material Fund Changes

Effective June 4, 2026, MAI Capital Management, LLC ("Adviser"), the investment adviser to the Fund, and its parent company, were acquired by an affiliate of The Carlyle Group Inc. (the "Transaction"). The Transaction resulted in a change of control of the Adviser and an assignment and termination of the investment advisory agreement between Forum Funds, on behalf of the Fund, and the Adviser.

To provide for the continuity of management, the Board of Trustees approved an interim investment advisory agreement, on behalf of the Fund, that became effective upon the closing of the Transaction and a new investment advisory agreement. Shareholders approved the new investment advisory agreement at a special meeting held on September 14, 2026, which is currently in effect.

Where can I find additional information about the Fund?

If you wish to view additional information about the Fund; including but not limited to its prospectus, holdings, financial information, and proxy voting information, please visit http://www.maifunds.com/.

MAI Managed Volatility Fund

Institutional Class

Annual Shareholder Report - August 31, 2026

244A-MAIPX-26

MAI Managed Volatility Fund

Annual Shareholder Report - August 31, 2026

DIVPX

: Investor Class

Fund Overview

This annual shareholder report contains important information about the MAI Managed Volatility Fund for the period of September 1, 2025, to August 31, 2026, including certain material changes to the Fund that occurred during the period. You can find additional information about the Fund at https://www.maifunds.com/. You can also request this information by contacting us at (877) 414-7884.

What were the Fund's costs for the last year?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Investor Class
$164
1.55%

How did the Fund perform in the last year?

Over the year ending August 31, 2026, the Fund's Investor Class (DIVPX) returned 11.75%. Over the same period, the S&P 500 Index (S&P) returned 20.38%. The Fund captured approximately 58% of the market return with about 43% of the volatility. The Sharpe Ratio, a measure of return per unit of risk, was 1.36 versus 1.24 for the S&P.

The Fund's process is grounded in the view that markets do not typically move in straight lines, and that investor emotion (fear and euphoria) can influence short-term price behavior. In seeking to manage the volatility of returns, the Fund accepts that it may lag sharply moving markets. This past year's macro environment featured interest rate volatility, inflation, and equity concentration risks. The Fund primarily navigated these changes through active management of the options portfolio. Rather than following a fixed or pre-planned options schedule, the investment process sought to adapt to changing market conditions:

  • Net exposure, option tenor, and strike selection were adjusted as conditions changed

  • Positioning was informed by volatility indicators such as the Cboe Volatility Index (VIX), options term structure, and skew Option strikes and expirations were staggered across the book

  • Risk management remained a primary focus of the process, given the difficulty of predicting the timing or depth of market regime changes

While implied volatility indicated by the VIX spiked at times, it was generally below the long-term average. Writing contracts on parts of the curve where implied volatility was slightly higher supported the collection of option premium while still enabling us to manage the directional sensitivity of the Fund's equity portfolio. Net, or delta adjusted exposure, was consistently below gross exposure levels.

Overall, return contributions from uncorrelated sources (option premium, interest and dividends) supported consistency of returns across the changing macro and market conditions.

Total Return Based on a $10,000 Investment

Table Summary
Date
Investor Class
S&P 500® Index
08/31/16
$10,000
$10,000
11/30/16
$10,019
$10,183
02/28/17
$10,336
$11,001
05/31/17
$10,439
$11,284
08/31/17
$10,589
$11,623
11/30/17
$10,917
$12,512
02/28/18
$10,942
$12,883
05/31/18
$11,075
$12,907
08/31/18
$11,513
$13,909
11/30/18
$11,389
$13,297
02/28/19
$11,361
$13,486
05/31/19
$11,423
$13,395
08/31/19
$11,866
$14,315
11/30/19
$12,251
$15,440
02/29/20
$11,593
$14,591
05/31/20
$11,642
$15,115
08/31/20
$12,129
$17,455
11/30/20
$12,675
$18,135
02/28/21
$12,939
$19,156
05/31/21
$13,582
$21,209
08/31/21
$13,923
$22,895
11/30/21
$14,157
$23,198
02/28/22
$14,060
$22,295
05/31/22
$13,826
$21,146
08/31/22
$13,680
$20,325
11/30/22
$14,079
$21,062
02/28/23
$14,056
$20,581
05/31/23
$14,496
$21,763
08/31/23
$14,778
$23,566
11/30/23
$15,134
$23,977
02/29/24
$15,523
$26,848
05/31/24
$15,745
$27,898
08/31/24
$16,167
$29,960
11/30/24
$16,611
$32,102
02/28/25
$16,900
$31,790
05/31/25
$16,944
$31,670
08/31/25
$17,702
$34,718
11/30/25
$18,231
$36,918
02/28/26
$18,211
$37,191
05/31/26
$19,353
$41,102
08/31/26
$19,781
$41,793

The above chart represents historical performance of a hypothetical $10,000 investment over the past 10 years. Updated performance can be found at https://www.maifunds.com/.

Average Annual Total Returns

Table Summary
One Year
Five Year
Ten Year
Investor Class
11.75%
7.28%
7.06%
S&P 500® Index
20.38%
12.79%
15.37%

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Fund Statistics

Table Summary
Total Net Assets
$238,578,400
# of Portfolio Holdings
86
Portfolio Turnover Rate
9%
Investment Advisory Fees (Net of fees waived)
$1,434,762

Sector Weightings

(% total investments)

Table Summary
Value
Value
Written Options
(1.4)%
Materials
0.3%
Real Estate
0.5%
Utilities
1.2%
Consumer Staples
2.6%
Energy
3.0%
Industrials
3.5%
Consumer Discretionary
5.1%
Health Care
5.7%
Communication Services
6.9%
Financials
10.3%
Information Technology
24.6%
U.S. Government & Agency Obligations
15.8%
Money Market Fund
21.9%

Top Ten Holdings

(% total net assets)*

Table Summary
Apple, Inc.
5.3%
NVIDIA Corp.
4.6%
Microsoft Corp.
4.2%
Alphabet, Inc., Class A
4.0%
Broadcom, Inc.
2.9%
Amazon.com, Inc.
2.4%
Advanced Micro Devices, Inc.
2.4%
Visa, Inc., Class A
2.3%
JPMorgan Chase & Co.
1.9%
Meta Platforms, Inc., Class A
1.7%

*Excludes cash equivalents, such as money market fund and government securities, including that portion of cash equivalents held as collateral.

Asset Class Weightings

(% total investments)

Table Summary
Common Stock
63.7%
U.S. Government & Agency Obligations
15.8%
Warrants
0.0%
Money Market Fund
21.9%
Written Options
(1.4)%

Material Fund Changes

Effective June 4, 2026, MAI Capital Management, LLC ("Adviser"), the investment adviser to the Fund, and its parent company, were acquired by an affiliate of The Carlyle Group Inc. (the "Transaction"). The Transaction resulted in a change of control of the Adviser and an assignment and termination of the investment advisory agreement between Forum Funds, on behalf of the Fund, and the Adviser.

To provide for the continuity of management, the Board of Trustees approved an interim investment advisory agreement, on behalf of the Fund, that became effective upon the closing of the Transaction and a new investment advisory agreement. Shareholders approved the new investment advisory agreement at a special meeting held on September 14, 2026, which is currently in effect.

Where can I find additional information about the Fund?

If you wish to view additional information about the Fund; including but not limited to its prospectus, holdings, financial information, and proxy voting information, please visit http://www.maifunds.com/.

MAI Managed Volatility Fund

Investor Class

Annual Shareholder Report - August 31, 2026

244A-DIVPX-26

(b) Not applicable.
ITEM 2. CODE OF ETHICS.
(a) As of the end of the period covered by this report, Forum Funds (the "Registrant") has adopted a code of ethics, which applies to its Principal Executive Officer and Principal Financial Officer (the "Code of Ethics").
(c) There have been no amendments to the Registrant's Code of Ethics during the period covered by this report.
(d) There have been no waivers to the Registrant's Code of Ethics during the period covered by this report.
(e) Not applicable.
(f)(1) A copy of the Code of Ethics is being filed under Item 19(a)(1) hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Board of Trustees has determined that the Registrant has an audit committee financial expert, as defined in Item 3 of Form N-CSR, serving on its audit committee.
(a)(2) The audit committee financial expert, Mr. Mark Moyer, is a non-"interested" Trustee (as defined in Item 3(a)(2) of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant for the audit of the Registrant's annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $16,900 in 2025 and $17,300 in 2026.
(b) Audit-Related Fees - The aggregate fees billed in the Reporting Periods for assurance and related services rendered by the principal accountant that were reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2025 and $0 in 2026.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $3,200 in 2025 and $3,300 in 2026. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
(d) All Other Fees - The aggregate fees billed in the Reporting Periods for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2025 and $0 in 2026.
(e)(1) The Audit Committee reviews and approves in advance all audit and "permissible non-audit services" (as that term is defined by the rules and regulations of the U.S. Securities and Exchange Commission) to be rendered to a series of the Registrant (each, a "Series"). In addition, the Audit Committee reviews and approves in advance all "permissible non-audit services" to be provided to an investment adviser (not including any sub-adviser) of a Series, or an affiliate of such investment adviser, that is controlling, controlled by or under common control with the investment adviser and provides on-going services to the Registrant ("Affiliate"), by the Series' principal accountant if the engagement relates directly to the operations and financial reporting of the Series. The Audit Committee considers whether fees paid by a Series' investment adviser or an Affiliate to the Series' principal accountant for audit and permissible non-audit services are consistent with the principal accountant's independence.
(e)(2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant for the Reporting Periods were $0 in 2025 and $0 in 2026. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant's investment adviser or any Affiliate.
(h) During the Reporting Period, the Registrant's principal accountant provided no non-audit services to the investment advisers or any entity controlling, controlled by or under common control with the investment advisers to the series of the Registrant to which this report relates.
(i) Not applicable. The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the "PCAOB") has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
(j) Not applicable. The Registrant is not a "foreign issuer," as defined in 17 CFR 240.3b-4.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Included as part of financial statements filed under Item 7(a).
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
(a)
Annual
Financials
and
Other
Information
August
31,
2026
MAI
Managed
Volatility
Fund
Managed
By
MAI
Capital
Management,
LLC
TABLE
OF
CONTENTS
Schedule
of
Investments
1
Schedule
of
Call
and
Put
Options
Written
4
Notes
to
Schedules
of
Investments
and
Call
and
Put
Options
Written
5
Statement
of
Assets
and
Liabilities
7
Statement
of
Operations
8
Statements
of
Changes
in
Net
Assets
9
Financial
Highlights
10
Notes
to
Financial
Statements
12
Report
of
Independent
Registered
Public
Accounting
Firm
19
Important
Tax
Information
(Unaudited)
20
Other
Information
(Unaudited)
21
MAI
Managed
Volatility
Fund
SCHEDULE
OF
INVESTMENTS
August
31,
2026
1
See
Notes
to
Financial
Statements.
Shares
Security
Description
Value
Common
Stock
-
63.3%
Communication
Services
-
6.8%
27,960‌
Alphabet,
Inc.,
Class A
(a)
$
9,488,226‌
25,593‌
AT&T,
Inc.
662,603‌
29,802‌
Comcast
Corp.,
Class A
793,329‌
6,989‌
Meta
Platforms,
Inc.,
Class A
4,000,084‌
10,041‌
The
Walt
Disney
Co.
1,079,910‌
8,296‌
Warner
Bros
Discovery,
Inc.
(b)
236,685‌
16,260,837‌
Consumer
Discretionary
-
5.1%
22,360‌
Amazon.com,
Inc.
(a)(b)
5,808,457‌
2,814‌
McDonald's
Corp.
741,601‌
10,544‌
NIKE,
Inc.,
Class B
411,849‌
5,000‌
Tesla,
Inc.
(a)(b)
1,839,750‌
10,011‌
The
Home
Depot,
Inc.
(a)
3,281,906‌
12,083,563‌
Consumer
Staples
-
2.6%
5,127‌
Altria
Group,
Inc.
351,097‌
5,660‌
Anheuser-Busch
InBev
SA/NV,
ADR
447,706‌
1,270‌
Costco
Wholesale
Corp.
1,198,740‌
5,376‌
Diageo
PLC,
ADR
493,786‌
11,646‌
Mondelez
International,
Inc.,
Class A
722,867‌
2,968‌
PepsiCo.,
Inc.
(a)
416,529‌
4,882‌
The
Procter
&
Gamble
Co.
708,476‌
17,265‌
Walmart,
Inc.
1,810,581‌
6,149,782‌
Energy
-
3.0%
4,159‌
Chevron
Corp.
857,336‌
4,761‌
EOG
Resources,
Inc.
690,155‌
7,329‌
ExxonMobil
Holdings
Corp.
1,179,603‌
48,133‌
Kinder
Morgan,
Inc.
1,551,808‌
5,807‌
Marathon
Petroleum
Corp.
2,167,869‌
3,323‌
Occidental
Petroleum
Corp.
199,978‌
8,894‌
SLB,
Ltd.
534,529‌
7,181,278‌
Financials
-
10.2%
50,272‌
Bank
of
America
Corp.
(a)
3,113,848‌
3,984‌
Berkshire
Hathaway,
Inc.,
Class B
(b)
2,008,056‌
7,060‌
Chubb,
Ltd.
2,390,516‌
11,965‌
Citigroup,
Inc.
1,574,834‌
12,857‌
JPMorgan
Chase
&
Co.
4,577,349‌
14,790‌
MetLife,
Inc.
1,407,564‌
12,732‌
The
Charles
Schwab
Corp.
1,398,228‌
13,795‌
U.S.
Bancorp
849,496‌
14,260‌
Visa,
Inc.,
Class A
(a)
5,409,816‌
19,495‌
Wells
Fargo
&
Co.
1,684,173‌
24,413,880‌
Health
Care
-
5.7%
15,837‌
Abbott
Laboratories
(a)
1,747,771‌
9,442‌
AbbVie,
Inc.
2,421,118‌
5,564‌
Amgen,
Inc.
2,391,852‌
11,136‌
Bristol-Myers
Squibb
Co.
743,996‌
9,531‌
CVS
Health
Corp.
895,056‌
4,565‌
Johnson
&
Johnson
(a)
1,213,605‌
10,745‌
Medtronic
PLC
974,034‌
6,765‌
Merck
&
Co.,
Inc.
999,597‌
676‌
Organon
&
Co.
9,302‌
20,839‌
Pfizer,
Inc.
593,078‌
3,911‌
UnitedHealth
Group,
Inc.
(a)
1,522,983‌
MAI
Managed
Volatility
Fund
SCHEDULE
OF
INVESTMENTS
August
31,
2026
2
See
Notes
to
Financial
Statements.
Shares
Security
Description
Value
Health
Care
-
5.7%
(continued)
2,585‌
Viatris,
Inc.
$
42,678‌
13,555,070‌
Industrials
-
3.4%
5,392‌
Carrier
Global
Corp.
313,922‌
4,503‌
Honeywell
Aerospace,
Inc.
(b)
711,969‌
4,504‌
Honeywell
International,
Inc.
961,632‌
2,696‌
Otis
Worldwide
Corp.
191,767‌
14,637‌
RTX
Corp.
3,040,544‌
3,529‌
The
Boeing
Co.
(b)
733,256‌
4,919‌
Union
Pacific
Corp.
1,478,996‌
7,679‌
United
Parcel
Service,
Inc.,
Class B
800,382‌
8,232,468‌
Information
Technology
-
24.5%
11,966‌
Advanced
Micro
Devices,
Inc.
(b)
5,632,636‌
39,660‌
Apple,
Inc.
(a)
12,566,271‌
18,470‌
Broadcom,
Inc.
6,840,180‌
27,517‌
Cisco
Systems,
Inc.
3,040,353‌
4,805‌
Fortinet,
Inc.
(b)
821,319‌
15,389‌
Intel
Corp.
(b)
1,377,469‌
2,669‌
Intuit,
Inc.
958,972‌
19,736‌
Microsoft
Corp.
(a)
10,011,875‌
49,240‌
NVIDIA
Corp.
(a)
10,871,207‌
14,581‌
Oracle
Corp.
2,174,319‌
556‌
Palantir
Technologies,
Inc.,
Class A
(b)
103,627‌
12,656‌
QUALCOMM,
Inc.
2,157,595‌
12,220‌
ServiceNow,
Inc.
(b)
1,808,438‌
2,890‌
Super
Micro
Computer,
Inc.
(b)
107,739‌
58,472,000‌
Materials
-
0.3%
2,318‌
Air
Products
and
Chemicals,
Inc.
717,328‌
Real
Estate
-
0.5%
3,465‌
American
Tower
Corp.
REIT
608,801‌
25,155‌
Weyerhaeuser
Co.
REIT
587,872‌
1,196,673‌
Utilities
-
1.2%
33,945‌
NextEra
Energy,
Inc.
(a)
2,795,031‌
Total
Common
Stock
(Cost
$54,108,308)
151,057,910‌
Principal
Security
Description
Rate
Maturity
Value
U.S.
Government
&
Agency
Obligations
-
15.7%
U.S.
Treasury
Securities
-
15.7%
$
5,290,950‌
U.S.
Treasury
Inflation
Indexed
Bonds
(a)
2.13‌%
01/15/35
5,204,277‌
2,000,000‌
U.S.
Treasury
Note/Bond
(a)
4.25‌
08/15/35
1,932,812‌
7,500,000‌
U.S.
Treasury
Note/Bond
(a)
4.13‌
10/31/26
7,502,476‌
5,000,000‌
U.S.
Treasury
Note/Bond
(a)
4.25‌
11/30/26
5,004,566‌
5,000,000‌
U.S.
Treasury
Note/Bond
(a)
4.00‌
12/15/27
4,982,422‌
2,000,000‌
U.S.
Treasury
Note/Bond
3.38‌
02/29/28
1,973,438‌
4,000,000‌
U.S.
Treasury
Note/Bond
3.88‌
03/31/28
3,973,281‌
4,000,000‌
U.S.
Treasury
Note/Bond
3.75‌
04/30/28
3,963,594‌
1,000,000‌
U.S.
Treasury
Note/Bond
4.00‌
05/31/28
994,492‌
2,000,000‌
U.S.
Treasury
Note/Bond
4.13‌
06/30/28
1,992,695‌
37,524,053‌
Total
U.S.
Government
&
Agency
Obligations
(Cost
$37,806,577)
37,524,053‌
MAI
Managed
Volatility
Fund
SCHEDULE
OF
INVESTMENTS
August
31,
2026
3
See
Notes
to
Financial
Statements.
Shares
Security
Description
Exercise
Price
Exp.
Date
Value
Warrants
-
0.0%
415‌
Occidental
Petroleum
Corp.
(b)
(Cost
$0)
$
22.00‌
08/03/27
$
15,811‌
Shares
Security
Description
Value
Money
Market
Fund
-
21.9%
52,078,705‌
First
American
Government
Obligations
Fund,
Class X,
3.58%
(c)
(Cost
$52,078,705)
52,078,705‌
Investments,
at
value
-
100.9%
(Cost
$143,993,590)
$
240,676,479‌
Total
Written
Options
-
(1.4)%
(Premiums
Received
$(3,966,583))
(3,430,511‌)
Other
Assets
&
Liabilities,
Net
-
0.5%
1,332,432‌
Net
Assets
-
100.0%
$
238,578,400‌
MAI
Managed
Volatility
Fund
SCHEDULE
OF
CALL
AND
PUT
OPTIONS
WRITTEN
August
31,
2026
4
See
Notes
to
Financial
Statements.
Contracts
Security
Description
Strike
Price
Exp.
Date
Notional
Contract
Value
Value
Written
Options
(b)(d)
-
(1.4)%
Call
Options
Written
-
(1.4)%
(10‌)
CBOE
S&P
500
INDEX
$
7,750.00‌
09/26
$
7,686,140‌
$
(12,600‌)
(12‌)
CBOE
S&P
500
INDEX
7,500.00‌
09/26
9,223,368‌
(235,752‌)
(5‌)
CBOE
S&P
500
INDEX
7,475.00‌
09/26
3,843,070‌
(110,975‌)
(10‌)
CBOE
S&P
500
INDEX
7,475.00‌
09/26
7,686,140‌
(232,950‌)
(10‌)
CBOE
S&P
500
INDEX
7,450.00‌
09/26
7,686,140‌
(256,950‌)
(15‌)
CBOE
S&P
500
INDEX
7,500.00‌
09/26
11,529,210‌
(342,900‌)
(10‌)
CBOE
S&P
500
INDEX
7,525.00‌
09/26
7,686,140‌
(207,650‌)
(4‌)
CBOE
S&P
500
INDEX
7,625.00‌
09/26
3,074,456‌
(58,780‌)
(8‌)
CBOE
S&P
500
INDEX
7,525.00‌
09/26
6,148,912‌
(179,280‌)
(3‌)
CBOE
S&P
500
INDEX
7,650.00‌
10/26
2,305,842‌
(41,970‌)
(15‌)
CBOE
S&P
500
INDEX
7,600.00‌
10/26
11,529,210‌
(263,775‌)
(10‌)
CBOE
S&P
500
INDEX
7,550.00‌
10/26
7,686,140‌
(213,750‌)
(6‌)
CBOE
S&P
500
INDEX
7,750.00‌
10/26
4,611,684‌
(52,680‌)
(10‌)
CBOE
S&P
500
INDEX
7,625.00‌
10/26
7,686,140‌
(165,700‌)
(2‌)
CBOE
S&P
500
INDEX
7,800.00‌
10/26
1,537,228‌
(13,520‌)
(4‌)
CBOE
S&P
500
INDEX
7,625.00‌
10/26
3,074,456‌
(67,840‌)
(10‌)
CBOE
S&P
500
INDEX
7,625.00‌
10/26
7,686,140‌
(181,700‌)
(5‌)
CBOE
S&P
500
INDEX
7,775.00‌
10/26
3,843,070‌
(53,000‌)
(8‌)
CBOE
S&P
500
INDEX
7,700.00‌
10/26
6,148,912‌
(118,760‌)
(10‌)
CBOE
S&P
500
INDEX
7,650.00‌
10/26
7,686,140‌
(180,200‌)
(5‌)
CBOE
S&P
500
INDEX
7,850.00‌
11/26
3,843,070‌
(50,400‌)
(10‌)
CBOE
S&P
500
INDEX
7,650.00‌
11/26
7,686,140‌
(213,150‌)
Total
Call
Options
Written
(Premiums
Received
$3,659,774)
(3,254,282‌)
Put
Options
Written
-
(0.0)%
(5‌)
CBOE
S&P
500
INDEX
7,000.00‌
09/26
3,500,000‌
(2,500‌)
(8‌)
CBOE
S&P
500
INDEX
7,150.00‌
09/26
5,720,000‌
(9,640‌)
(10‌)
CBOE
S&P
500
INDEX
7,150.00‌
10/26
7,150,000‌
(15,800‌)
(8‌)
CBOE
S&P
500
INDEX
7,050.00‌
10/26
5,640,000‌
(9,920‌)
(8‌)
CBOE
S&P
500
INDEX
6,975.00‌
10/26
5,580,000‌
(8,400‌)
(10‌)
CBOE
S&P
500
INDEX
7,150.00‌
10/26
7,150,000‌
(17,850‌)
(3‌)
CBOE
S&P
500
INDEX
7,125.00‌
10/26
2,137,500‌
(5,034‌)
(3‌)
CBOE
S&P
500
INDEX
7,200.00‌
10/26
2,160,000‌
(6,555‌)
(5‌)
CBOE
S&P
500
INDEX
7,150.00‌
10/26
3,575,000‌
(9,650‌)
(5‌)
CBOE
S&P
500
INDEX
7,275.00‌
10/26
3,637,500‌
(15,900‌)
(3‌)
CBOE
S&P
500
INDEX
7,175.00‌
10/26
2,152,500‌
(7,500‌)
(12‌)
CBOE
S&P
500
INDEX
7,175.00‌
10/26
8,610,000‌
(37,680‌)
(10‌)
CBOE
S&P
500
INDEX
7,150.00‌
10/26
7,150,000‌
(29,800‌)
Total
Put
Options
Written
(Premiums
Received
$306,809)
(176,229‌)
Total
Written
Options
-
(1.4)%
(Premiums
Received
$3,966,583)
$
(3,430,511‌)
MAI
Managed
Volatility
Fund
NOTES
TO
SCHEDULES
OF
INVESTMENTS
AND
CALL
AND
PUT
OPTIONS
WRITTEN
August
31,
2026
5
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
and
other
financial
instruments
and
liabilities
as
of
August
31,
2026.
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.
ADR
American
Depositary
Receipt
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
(a)
All
or
a
portion
of
this
security
is
held
as
collateral
for
written
options.
(b)
Non-income
producing
security.
(c)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
August
31,
2026.
(d)
Exchange
traded
security.
Level
1
Level
2
Level
3
Total
Assets
Investments
at
Value
Common
Stock
Communication
Services
$
16,260,837‌
$
-‌
$
-‌
$
16,260,837‌
Consumer
Discretionary
12,083,563‌
-‌
-‌
12,083,563‌
Consumer
Staples
6,149,782‌
-‌
-‌
6,149,782‌
Energy
7,181,278‌
-‌
-‌
7,181,278‌
Financials
24,413,880‌
-‌
-‌
24,413,880‌
Health
Care
13,555,070‌
-‌
-‌
13,555,070‌
Industrials
8,232,468‌
-‌
-‌
8,232,468‌
Information
Technology
58,472,000‌
-‌
-‌
58,472,000‌
Materials
717,328‌
-‌
-‌
717,328‌
Real
Estate
1,196,673‌
-‌
-‌
1,196,673‌
Utilities
2,795,031‌
-‌
-‌
2,795,031‌
U.S.
Government
&
Agency
Obligations
-‌
37,524,053‌
-‌
37,524,053‌
Warrants
15,811‌
-‌
-‌
15,811‌
Money
Market
Fund
52,078,705‌
-‌
-‌
52,078,705‌
Investments
at
Value
$
203,152,426‌
$
37,524,053‌
$
-‌
$
240,676,479‌
Total
Assets
$
203,152,426‌
$
37,524,053‌
$
-‌
$
240,676,479‌
Liabilities
Other
Financial
Instruments*
Written
Options
(811,936‌)
(2,618,575‌)
-‌
(3,430,511‌)
Total
Liabilities
$
(811,936‌)
$
(2,618,575‌)
$
-‌
$
(3,430,511‌)
*
Other
Financial
Instruments
are
derivative
instruments
reflected
in
separate
schedules
such
as
written
options,
which
appear
in
the
Schedule
of
Call
and
Put
Options
Written
and
are
valued
through
use
of
fair
valuation
methodologies
at
year
end.
MAI
Managed
Volatility
Fund
NOTES
TO
SCHEDULES
OF
INVESTMENTS
AND
CALL
AND
PUT
OPTIONS
WRITTEN
August
31,
2026
6
See
Notes
to
Financial
Statements.
PORTFOLIO
HOLDINGS
(Unaudited)
%
of
Net
Assets
Common
Stock
63.3%‌
U.S.
Government
&
Agency
Obligations
15.7%‌
Warrants
0.0%‌
Money
Market
Fund
21.9%‌
Written
Options
(1.4)%‌
Other
Assets
less
Liabilities
0.5%‌
100.0%
PORTFOLIO
HOLDINGS
(Unaudited)
%
of
Common
Stock
Communication
Services
10.8%
Consumer
Discretionary
8.0%
Consumer
Staples
4.1%
Energy
4.7%
Financials
16.2%
Health
Care
9.0%
Industrials
5.4%
Information
Technology
38.7%
Materials
0.5%
Real
Estate
0.8%
Utilities
1.8%
100.0%
MAI
Managed
Volatility
Fund
STATEMENT
OF
ASSETS
AND
LIABILITIES
August
31,
2026
7
See
Notes
to
Financial
Statements.
*$703,970
was
held
at
Interactive
Brokers
LLC.
ASSETS
Investments,
at
value
(Cost
$143,993,590)
$
240,676,479‌
Cash
114,366‌
Deposits
with
broker
for
options
written*
703,970‌
Receivables:
Fund
shares
sold
187,444‌
Dividends
and
interest
673,490‌
Reclaims
2,405‌
Prepaid
expenses
30,869‌
Total
Assets
242,389,023‌
LIABILITIES
Call
options
written,
at
value
(Premiums
received
$3,659,774)
3,254,282‌
Put
options
written,
at
value
(Premiums
received
$306,809)
176,229‌
Payables:
Fund
shares
redeemed
168,356‌
Accrued
Liabilities:
Investment
adviser
fees
127,759‌
Fund
services
fees
26,316‌
Other
expenses
57,681‌
Total
Liabilities
3,810,623‌
NET
ASSETS
$
238,578,400‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
143,981,751‌
Distributable
Earnings
94,596,649‌
NET
ASSETS
$
238,578,400‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
Institutional
Shares
13,334,323‌
Investor
Shares
55,434‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
Institutional
Shares
(based
on
net
assets
of
$237,522,739)
$
17.81‌
Investor
Shares
(based
on
net
assets
of
$1,055,661)
$
19.04‌
MAI
Managed
Volatility
Fund
STATEMENT
OF
OPERATIONS
YEAR
ENDED
AUGUST
31,
2026
8
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
(Net
of
foreign
withholding
taxes
of
$1,169)
$
3,726,639‌
Interest
income
1,579,978‌
Total
Investment
Income
5,306,617‌
EXPENSES
Investment
adviser
fees
1,670,282‌
Fund
services
fees
50,200‌
Administration
fees
234,527‌
Transfer
agent
fees:
Institutional
Shares
11,060‌
Investor
Shares
4,071‌
Non
12b-1
shareholder
servicing
fees:
Institutional
Shares
203,924‌
Investor
Shares
1,239‌
Distribution
fees:
Investor
Shares
2,814‌
Custodian
fees
21,957‌
Registration
fees:
Institutional
Shares
21,209‌
Investor
Shares
19,279‌
Professional
fees
85,752‌
Trustees'
fees
and
expenses
20,354‌
Margin
interest
690,918‌
Other
expenses
96,442‌
Total
Expenses
3,134,028‌
Fees
waived
(235,520‌)
Net
Expenses
2,898,508‌
NET
INVESTMENT
INCOME
2,408,109‌
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on:
Investments
5,188,770‌
Written
options
322,053‌
Net
realized
gain
5,510,823‌
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
16,661,628‌
Written
options
972,462‌
Net
change
in
unrealized
appreciation
(depreciation)
17,634,090‌
NET
REALIZED
AND
UNREALIZED
GAIN
23,144,913‌
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
25,553,022‌
MAI
Managed
Volatility
Fund
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
9
See
Notes
to
Financial
Statements.
For
the
Years
Ended
August
31,
2026
2025
OPERATIONS
Net
investment
income
$
2,408,109‌
$
3,684,998‌
Net
realized
gain
5,510,823‌
429,676‌
Net
change
in
unrealized
appreciation
(depreciation)
17,634,090‌
16,680,317‌
Increase
in
Net
Assets
Resulting
from
Operations
25,553,022‌
20,794,991‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Institutional
Shares
(2,501,599‌)
(4,141,155‌)
Investor
Shares
(119‌)
(6,901‌)
Total
Distributions
Paid
(2,501,718‌)
(4,148,056‌)
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
28,371,751‌
16,874,211‌
Investor
Shares
911,643‌
1,277,991‌
Reinvestment
of
distributions:
Institutional
Shares
2,456,198‌
3,986,442‌
Investor
Shares
119‌
6,901‌
Redemption
of
shares:
Institutional
Shares
(33,177,383‌)
(64,649,292‌)
Investor
Shares
(1,039,748‌)
(1,101,464‌)
Decrease
in
Net
Assets
from
Capital
Share
Transactions
(2,477,420‌)
(43,605,211‌)
Increase
(Decrease)
in
Net
Assets
20,573,884‌
(26,958,276‌)
NET
ASSETS
Beginning
of
Year
218,004,516‌
244,962,792‌
End
of
Year
$
238,578,400‌
$
218,004,516‌
SHARE
TRANSACTIONS
Sale
of
shares:
Institutional
Shares
1,685,704‌
1,103,159‌
Investor
Shares
50,580‌
79,573‌
Reinvestment
of
distributions:
Institutional
Shares
148,553‌
261,826‌
Investor
Shares
6‌
429‌
Redemption
of
shares:
Institutional
Shares
(1,993,660‌)
(4,237,450‌)
Investor
Shares
(56,851‌)
(68,199‌)
Decrease
in
Shares
(165,668‌)
(2,860,662‌)
MAI
Managed
Volatility
Fund
FINANCIAL
HIGHLIGHTS
10
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
year
.
For
the
Years
Ended
August
31,
2026
2025
2024
2023
2022
INSTITUTIONAL
CLASS
NET
ASSET
VALUE,
Beginning
of
Year
$
16.08‌
$
14.92‌
$
14.27‌
$
13.61‌
$
13.82‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.18‌
0.25‌
0.35‌
0.27‌
0.03‌
Net
realized
and
unrealized
gain
(loss)
1.74‌
1.19‌
0.99‌
0.84‌
(0.24‌)
Total
from
Investment
Operations
1.92‌
1.44‌
1.34‌
1.11‌
(0.21‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.19‌)
(0.28‌)
(0.36‌)
(0.21‌)
(0.00‌)
(b)
Net
realized
gain
-‌
-‌
(0.33‌)
(0.24‌)
-‌
Total
Distributions
to
Shareholders
(0.19‌)
(0.28‌)
(0.69‌)
(0.45‌)
(0.00‌)
NET
ASSET
VALUE,
End
of
Year
$
17.81‌
$
16.08‌
$
14.92‌
$
14.27‌
$
13.61‌
TOTAL
RETURN
12.03‌%
9.76‌%
9.66‌%
8.29‌%
(1.49‌)%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Year
(000s
omitted)
$
237,523‌
$
216,953‌
$
244,181‌
$
247,291‌
$
200,883‌
Ratios
to
Average
Net
Assets:
Net
investment
income
1.08‌%
1.66‌%
2.44‌%
1.97‌%
0.23‌%
Net
expenses
1.30‌%
1.20‌%
0.99‌%
0.99‌%
1.00‌%
Dividend
and
interest
expenses
0.31‌%
0.21‌%
-‌%
-‌%
0.01‌%
Net
expenses
without
dividend
and
interest
expenses
0.99‌%
0.99‌%
0.99‌%
0.99‌%
0.99‌%
Gross
expenses
(c)
1.39‌%
1.28‌%
1.05‌%
1.04‌%
1.06‌%
PORTFOLIO
TURNOVER
RATE
9‌%
16‌%
6‌%
0‌%
9‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.01
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Expense
waivers
and/or
reimbursements
would
decrease
the
total
return
had
such
reductions
not
occurred.
MAI
Managed
Volatility
Fund
FINANCIAL
HIGHLIGHTS
11
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
year
.
For
the
Years
Ended
August
31,
2026
2025
2024
2023
2022
INVESTOR
CLASS
NET
ASSET
VALUE,
Beginning
of
Year
$
17.04‌
$
15.67‌
$
14.83‌
$
14.03‌
$
14.28‌
INVESTMENT
OPERATIONS
Net
investment
income
(a)
0.09‌
0.22‌
0.33‌
0.25‌
0.00‌
(b)
Net
realized
and
unrealized
gain
(loss)
1.91‌
1.26‌
1.03‌
0.87‌
(0.25‌)
Total
from
Investment
Operations
2.00‌
1.48‌
1.36‌
1.12‌
(0.25‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.00‌)
(b)
(0.11‌)
(0.19‌)
(0.08‌)
-‌
Net
realized
gain
-‌
-‌
(0.33‌)
(0.24‌)
-‌
Total
Distributions
to
Shareholders
(0.00‌)
(0.11‌)
(0.52‌)
(0.32‌)
-‌
NET
ASSET
VALUE,
End
of
Year
$
19.04‌
$
17.04‌
$
15.67‌
$
14.83‌
$
14.03‌
TOTAL
RETURN
11.75‌%
9.49‌%
9.40‌%
8.03‌%
(1.75‌)%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Year
(000s
omitted)
$
1,056‌
$
1,051‌
$
782‌
$
577‌
$
440‌
Ratios
to
Average
Net
Assets:
Net
investment
income
(loss)
0.53‌%
1.39‌%
2.20‌%
1.72‌%
(0.01‌)%
Net
expenses
1.55‌%
1.45‌%
1.24‌%
1.24‌%
1.25‌%
Dividend
and
interest
expenses
0.31‌%
0.21‌%
-‌%
-‌%
0.01‌%
Net
expenses
without
dividend
and
interest
expenses
1.24‌%
1.24‌%
1.24‌%
1.24‌%
1.24‌%
Gross
expenses
(c)
4.10‌%
4.25‌%
4.82‌%
6.22‌%
7.57‌%
PORTFOLIO
TURNOVER
RATE
9‌%
16‌%
6‌%
0‌%
9‌%
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.01
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Expense
waivers
and/or
reimbursements
would
decrease
the
total
return
had
such
reductions
not
occurred.
12
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
Note
1.
Organization
The
MAI
Managed
Volatility
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
currently
offers
two
classes
of
shares:
Institutional
Class
and
Investor
Class.
Institutional
Class
and
Investor
Class
commenced
operations
on
September
23,
2010,
and
December
2,
2010,
respectively.
The
Fund's
investment
objective
is
income
and
long-term
capital
appreciation.
The
Fund
included
herein
is
deemed
to
be
an
individual
reporting
segment
and
is
not
part
of
a
consolidated
reporting
entity.
The
objective
and
strategy
of
the
Fund
is
used
by
the
Adviser,
as
defined
in
Note
4,
to
make
investment
decisions,
and
the
results
of
the
operations,
as
shown
on
the
Statement
of
Operations
and
the
financial
highlights
for
the
Fund
is
the
information
utilized
for
the
day-to-day
management
of
the
Fund.
The
Fund
is
party
to
the
expense
agreements
as
disclosed
in
the
Notes
to
the
Financial
Statements
and
there
are
no
resources
allocated
to
the
Fund
based
on
performance
measurements.
Due
to
the
significance
of
oversight
and
their
role,
the
management
committee
of
MAI
Capital
Management,
LLC,
the
Fund's
Adviser,
is
deemed
to
be
the
Chief
Operating
Decision
Maker.
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
year.
Actual
amounts
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Fund:
Security
Valuation
-
Securities
are
recorded
at
fair
value
using
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.
Debt
securities
may
be
valued
at
prices
supplied
by
a
fund's
pricing
agent
based
on
broker
or
dealer
supplied
valuations
or
matrix
pricing,
a
method
of
valuing
securities
by
reference
to
the
value
of
other
securities
with
similar
characteristics
such
as
rating,
interest
rate
and
maturity.
Exchange-traded
options
for
which
the
last
quoted
sale
price
is
outside
the
closing
bid
and
ask
price
will
be
valued
at
the
mean
of
the
closing
bid
and
ask
price.
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
recorded
at
amortized
cost,
which
approximates
fair
value.
Pursuant
to
Rule
2a-5
under
the
Investment
Company
Act,
the
Trust's
Board
of
Trustees
(the
"Board")
has
designated
the
Adviser
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.
13
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
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
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
level
of
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
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
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
August
31,
2026,
for
the
Fund's
investments
is
included
in
the
Fund's
Notes
to
Schedules
of
Investments
and
Call
and
Put
Options
Written.
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
and
included
in
interest
income.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Written
Options
-
When
a
fund
writes
an
option,
an
amount
equal
to
the
premium
received
by
the
fund
is
recorded
as
a
liability
and
is
subsequently
adjusted
to
the
current
value
of
the
option
written.
Premiums
received
from
writing
options
that
expire
unexercised
are
treated
by
the
Fund
on
the
expiration
date
as
realized
gain
from
written
options.
The
difference
between
the
premium
and
the
amount
paid
on
effecting
a
closing
purchase
transaction,
including
brokerage
commissions,
is
also
treated
as
a
realized
gain,
or
if
the
premium
is
less
than
the
amount
paid
for
the
closing
purchase
transaction,
as
a
realized
loss.
If
a
call
option
is
exercised,
the
premium
is
added
to
the
proceeds
from
the
sale
of
the
underlying
security
in
determining
whether
the
Fund
has
realized
a
gain
or
loss.
If
a
14
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
put
option
is
exercised,
the
premium
reduces
the
cost
basis
of
the
securities
purchased
by
the
Fund.
The
Fund,
as
writer
of
an
option,
bears
the
market
risk
of
an
unfavorable
change
in
the
price
of
the
security
underlying
the
written
option.
Written
options
are
non-income
producing
securities.
The
values
of
each
individual
written
option
outstanding
as
of
August
31,
2026,
are
disclosed
in
the
Fund's
Schedule
of
Call
and
Put
Options
Written.
Distributions
to
Shareholders
-
Distributions
to
shareholders
of
net
investment
income,
if
any,
are
declared
and
paid
at
least
quarterly.
Distributions
to
shareholders
of
net
capital
gains,
if
any,
are
declared
and
paid
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
year,
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
August
31,
2026,
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.
The
Fund's
class-specific
expenses
are
charged
to
the
operations
of
that
class
of
shares.
Income
and
expenses
(other
than
expenses
attributable
to
a
specific
class)
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
the
class'
respective
net
assets
to
the
total
net
assets
of
the
Fund.
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
Statement
of
Assets
and
Liabilities.
Note
3.
Cash
-
Concentration
in
Uninsured
Account
Cash
held
at
broker-dealers
may
be
protected
under
Securities
Investor
Protection
Corporation
(SIPC)
coverage
up
to
applicable
limits,
including
a
cash
sublimit.
Amounts
in
excess
of
SIPC
coverage
may
be
exposed
to
loss
in
the
event
of
broker
insolvency.
15
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
Note
4.
Fees
and
Expenses
Investment
Adviser
-
MAI
Capital
Management,
LLC
(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
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.
The
Trust
has
adopted
a
Rule
12b-1
plan
under
which
the
Fund
pays
the
Distributor
a
fee
up
to
0.25%
of
the
average
daily
net
assets
of
the
Investor
Class
for
distribution
services
and/or
the
servicing
of
shareholder
accounts,
which
are
reflected
as
distribution
fees
in
the
Statement
of
Operations.
Because
the
Investor
Class
pays
distribution
fees
on
an
ongoing
basis,
over
time
these
fees
will
increase
the
cost
of
your
investment
and
may
cost
you
more
than
paying
other
types
of
sales
charges.
The
Distributor
may
pay
any
fee
received
under
the
Rule
12b-
1
plan
to
the
Adviser
or
other
financial
intermediaries
that
provide
distribution
and
shareholder
services
with
respect
to
Investor
Class
shares.
In
addition
to
paying
fees
under
the
Rule
12b-1
plan,
the
Fund
may
pay
service
fees
to
financial
intermediaries
for
administration,
recordkeeping
and
other
shareholder
services
associated
with
shareholders
whose
shares
are
held
of
record
in
omnibus
accounts,
other
group
accounts
or
accounts
traded
through
registered
securities
clearing
agents.
If
the
Fund
pays
shareholder
service
fees
on
an
ongoing
basis,
over
time
these
fees
will
increase
the
cost
of
your
investment.
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
and
administration
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
$60,000
($70,000
for
the
Chairman).
The
Audit
Committee
Chairman
receives
an
additional
$5,000
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
5.
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,
acquired
fund
fees
and
expenses,
dividends
on
short
sales,
brokerage
costs,
and
extraordinary
expenses
)
to
0.99%
and
1.24%,
of
the
Institutional
Class
and
Investor
Class,
respectively
,
through
at
least
September
30,
2028.
The
contractual
waivers
may
be
changed
or
eliminated
at
any
time
with
consent
of
the
Board.
During
the
year
ended
August
31,
2026,
fees
waived
were
$235,520.
The
Adviser
may
be
reimbursed
by
the
Fund
for
fees
waived
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/
16
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
or
Expense
Reimbursement
of
a
class
(after
the
recoupment
has
been
taken
into
account)
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
and
(ii)
the
expense
cap
in
place
at
the
time
the
fees/
expenses
were
waived/reimbursed.
As
of
August
31,
2026,
fees
waived
and/or
expenses
reimbursed
that
are
subject
to
recapture
by
the
Adviser
were
as
follows:
Note
6.
Security
Transactions
Investment
transactions
for
the
year
ended
August
31,
2026,
excluding
U.S.
Government
and
Agency
securities
and
short-term
investments,
were
as
follows:
Investment
transactions
in
U.S.
Government
and
Agency
securities
for
the
year
ended
August
31,
2026,
were
as
follows:
Note
7.
Summary
of
Derivative
Activity
The
Fund
may
invest
in
certain
derivatives,
as
detailed
below,
to
meet
its
investment
objective.
The
Fund's
use
of
derivative
instruments
involves
risks
different
from,
or
possibly
greater
than,
the
risks
associated
with
investing
directly
in
securities
and
other
traditional
investments.
Derivatives
are
subject
to
a
number
of
risks,
such
as
liquidity
risk,
interest
rate
risk,
market
risk,
credit
risk
and
management
risk.
They
also
involve
the
risk
of
mispricing
or
improper
valuation
and
the
risk
that
changes
in
the
value
of
the
derivative
may
not
correlate
perfectly
with
the
underlying
asset,
rate
or
index.
In
some
cases,
the
Fund
could
lose
more
than
the
principal
amount
invested
by
investing
in
a
derivative
instrument.
Also,
suitable
derivative
transactions
may
not
be
available
in
all
circumstances
and
there
can
be
no
assurance
that
the
Fund
will
engage
in
these
transactions
to
reduce
exposure
to
other
risks
when
doing
so
would
be
beneficial.
The
Fund
may
also
utilize
certain
derivative
instruments
and
investment
techniques
for
risk
management
or
hedging
purposes.
There
is
no
assurance
that
such
risk
management
and
hedging
strategies
will
be
successful,
as
such
success
will
depend
on,
among
other
factors,
the
Adviser's
ability
to
predict
the
future
correlation,
if
any,
between
the
performance
of
the
instruments
utilized
for
hedging
purposes
and
the
performance
of
the
investments
being
hedged.
The
following
provides
more
information
on
specific
types
of
derivatives
and
activity
in
the
Fund:
The
use
of
derivative
instruments
by
the
Fund
for
the
year
ended
August
31,
2026
related
to
the
use
of
written
call
and
put
options.
The
options
in
which
the
Fund
transacts
are
designed
to
generate
gains
and
provide
downside
protection
in
falling
markets.
When
dividends
and
interest
income
from
the
Fund's
portfolio
are
coupled
with
the
premium
generated
from
the
option
writing
activity,
the
Fees
Waived
and/or
Expenses
Reimbursed
Subject
to
Recoupment
During
the
Fiscal
Year
Ending
August
31,
Total
Fees
Waived
and/or
Expenses
Reimbursed
Subject
to
Recoupment
2027
2028
2029
$
174,847‌
$
212,052‌
$
235,520‌
$
622,419‌
Non-U.S.
Government
Obligations
Purchases
Sales
$
-‌
$
5,960,503‌
U.S.
Government
Obligations
Purchases
Sales
$
14,990,351‌
$
13,000,000‌
17
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
Adviser
believes
the
Fund
can
pursue
its
objective
with
less
downside
deviation
than
traditional
equity
investment
strategies
by,
in
effect,
managing
volatility.
The
volume
of
open
derivative
positions
may
vary
on
a
daily
basis
as
the
Fund
transacts
derivative
contracts
in
order
to
achieve
the
exposure
desired
by
the
Adviser.
Premiums
paid
on
purchased
options
and
premiums
received
on
written
options
for
the
year
ended
August
31,
2026,
for
any
derivative
type
that
was
held
during
the
year
is
as
follows:
Following
is
a
summary
of
the
effect
of
derivatives
on
the
Statement
of
Assets
and
Liabilities
as
of
August
31,
2026
:
Realized
and
unrealized
gains
and
losses
on
derivatives
contracts
during
the
year
ended
August
31,
2026
,
by
the
Fund
are
recorded
in
the
following
locations
on
the
Statement
of
Operations:
Note
8.
Federal
Income
Tax
As
of
August
31,
2026,
the
cost
of
investments,
including
options
written,
for
federal
income
tax
purposes
is
$141,862,814 and
the
components
of
net
unrealized appreciation were
as
follows:
Distributions
paid
during
the
fiscal
years
ended
as
noted
were
characterized
for
tax
purposes
as
follows:
As
of
August
31,
2026,
distributable
earnings
(accumulated
loss)
on
a
tax
basis
were
as
follows:
Written
Options
$
(38,628,142‌)
Location:
Equity
Risk
Liability
derivatives:
Call
options
written
$
(3,254,282‌)
Put
options
written
(176,229‌)
Total
liability
derivatives
$
(3,430,511‌)
Location:
Equity
Contracts
Net
realized
gain
(loss)
on:
Written
options
$
322,053‌
Total
net
realized
gain
(loss)
$
322,053‌
Net
change
in
unrealized
appreciation
(depreciation)
on:
Written
options
$
972,462‌
Total
net
change
in
unrealized
appreciation
(depreciation)
$
972,462‌
Gross
Unrealized
Appreciation
$
97,453,225‌
Gross
Unrealized
Depreciation
(2,070,071‌)
Net
Unrealized
Appreciation
$
95,383,154‌
2026
2025
Ordinary
Income
$
2,501,718‌
$
4,148,056‌
18
MAI
Managed
Volatility
Fund
NOTES
TO
FINANCIAL
STATEMENTS
August
31,
2026
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
temporary
book/tax
differences
related
to
investments
in
real
estate
investment
trusts,
wash
sales,
straddles,
index
options
and
equity
return
of
capital.
As
of
August
31,
2026,
the
Fund
had
$1,188,153
in
short-term
capital
loss
carryforwards
to
reduce
the
Fund's
taxable
income
arising
from
future
net
realized
gains
on
investments.
The
capital
loss
carryforwards
have
no
expiration
date.
Note
9.
Sector
Concentration
Risk
Sector
concentration
risk
is
the
possibility
that
securities
within
the
same
sector
will
decline
in
price
due
to
sector-specific
market
or
economic
developments.
If
the
Fund
invests
more
heavily
in
a
particular
sector,
the
value
of
its
shares
may
be
especially
sensitive
to
factors
and
economic
risks
that
specifically
affect
that
sector.
As
a
result,
the
Fund's
share
price
may
fluctuate
more
widely
than
the
value
of
shares
of
a
mutual
fund
that
invests
in
a
broader
range
of
sectors.
Additionally,
some
sectors
could
be
subject
to
greater
government
regulation
than
other
sectors.
Therefore,
changes
in
regulatory
policies
for
those
sectors
may
have
a
material
effect
on
the
value
of
securities
issued
by
companies
in
those
sectors.
Note
10.
Subsequent
Events
Effective
June
4,
2026,
the
Adviser
and
its
parent
company,
were
acquired
by
an
affiliate
of
The
Carlyle
Group
Inc.
(the
"Transaction").
The
Transaction
resulted
in
a
change
of
control
of
the
Adviser
and
an
assignment
and
termination
of
the
investment
advisory
agreement
between
the
Trust,
on
behalf
of
the
Fund,
and
the
Adviser.
To
provide
for
the
continuity
of
management,
the
Board
approved
an
interim
investment
advisory
agreement,
on
behalf
of
the
Fund,
that
became
effective
upon
the
closing
of
the
Transaction
and
a
new
investment
advisory
agreement.
Shareholders
approved
the
new
investment
advisory
agreement
at
a
special
meeting
held
on
September
14,
2026,
which
is
currently
in
effect.
Undistributed
Ordinary
Income
$
401,648‌
Capital
and
Other
Losses
(1,188,153‌)
Net
Unrealized
Appreciation
95,383,154‌
Total
$
94,596,649‌
19
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
To
the
Shareholders
of
MAI
Managed
Volatility
Fund
and
Board
of
Trustees
of
Forum
Funds
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments
and
schedule
of
call
and
put
options
written,
of
MAI
Managed
Volatility
Fund
(the
"Fund"),
a
series
of
Forum
Funds,
as
of
August
31,
2026,
the
related
statement
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
the
financial
highlights
for
each
of
the
four
years
in
the
period
then
ended,
and
the
related
notes
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
August
31,
2026,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
and
the
financial
highlights
for
each
of
the
four
years
in
the
period
then
ended,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
The
Fund's
financial
highlights
for
the
year
ended
August
31,
2022
were
audited
by
other
auditors
whose
report
dated
October
25,
2022,
expressed
an
unqualified
opinion
on
those
financial
highlights.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
("PCAOB")
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
August
31,
2026,
by
correspondence
with
the
custodian
and
broker.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
Fund's
auditor
since
2023.
Cohen
&
Company,
LTD.
Philadelphia,
Pennsylvania
October
23
,
2026
20
MAI
Managed
Volatility
Fund
IMPORTANT
TAX
INFORMATION
(Unaudited)
August
31,
2026
Federal
Tax
Status
of
Dividends
Declared
during
the
Fiscal
Year
For
federal
income
tax
purposes,
dividends
from
short-term
capital
gains
are
classified
as
ordinary
income.
The
Fund
designates
68.17%
of
its
income
dividend
distributed
as
qualifying
for
the
corporate
dividends-received
deduction
(DRD)
and
71.70%
for
the
qualified
dividend
rate
(QDI)
as
defined
in
Section
1(h)(11)
of
the
Code.
The
Fund
also
designates
33.60%
as
qualified
interest
income
exempt
from
U.S.
tax
for
foreign
shareholders
(QII).
21
MAI
Managed
Volatility
Fund
OTHER
INFORMATION
(Unaudited)
August
31,
2026
Changes
in
and
Disagreements
with
Accountants
(Item
8
of
Form
N-CSR)
N/A
Proxy
Disclosure
(Item
9
of
Form
N-CSR)
At
a
special
meeting
of
shareholders,
held
on
September
14,
2026,
shares
were
voted
as
follows
on
the
proposals
presented
to
shareholders:
Remuneration
Paid
to
Directors,
Officers,
and
Others
(Item
10
of
Form
N-CSR)
Please
see
financial
statements
in
Item
7.
Statement
Regarding
the
Basis
for
the
Board's
Approval
of
Investment
Advisory
Contract
(Item
11
of
Form
N-CSR)
Investment
Advisory
Agreement
Approval
At
a
meeting
held
on
June
26,
2026,
the
Board
of
Trustees
(the
"Board")
of
Forum
Funds
(the
"Trust),
including
the
trustees
who
are
not
parties
to
the
agreement
or
interested
persons
of
any
such
party
(other
than
as
trustees
of
the
Trust)
(the
"Independent
Trustees"),
considered
the
approval
of
a
new
investment
advisory
agreement
(the
"New
Agreement")
between
MAI
Capital
Management,
LLC
(the
"Adviser")
and
the
Trust,
on
behalf
of
MAI
Managed
Volatility
Fund
(the
"Fund").
The
New
Agreement
was
being
considered
in
connection
with
the
termination
of
the
investment
advisory
agreement
between
the
Adviser
and
the
Trust,
on
behalf
of
the
Fund,
dated
December
3,
2021
(the
"Original
Agreement"),
due
to
a
transfer
of
a
controlling
interest
in
the
voting
securities
of
the
Adviser
resulting
from
a
business
transaction
(the
"Transaction").
In
preparation
for
its
deliberations
in
considering
the
New
Agreement,
the
Board
requested
and
reviewed
a
memorandum
from
the
Adviser
dated
May
6,
2026,
with
respect
to
the
Transaction
(the
"June
2026
Memorandum").
In
addition,
the
Board
considered
information
provided
by
the
Adviser
at
regularly
scheduled
meetings
during
the
past
year,
including
information
included
in
the
materials
for
the
June
2026
meeting.
The
Board
noted
that
the
Original
Agreement
was
most
recently
renewed
for
another
annual
term
at
a
meeting
of
the
Board
held
on
September
23,
2025
(the
"September
meeting"),
and
that
the
Adviser
had
represented
to
the
Board
in
the
June
2026
Memorandum
that,
through
the
date
thereof,
there
had
been
no
material
changes
to
the
Section
15(c)
information
provided
in
support
of
the
renewal
of
the
Original
Agreement.
The
Board
discussed
the
materials
with
Fund
counsel
and
with
the
Trust's
administrator,
Apex
Fund
Services
("Apex").
The
Board
also
reviewed
memoranda
from
Fund
counsel
discussing
the
legal
standards
applicable
to
its
consideration
of
the
New
Agreement.
During
its
deliberations,
the
Independent
Trustees
were
assisted
by
the
advice
of
independent
Trustee
counsel.
At
the
meeting,
the
Board
discussed,
among
other
things,
the
terms
of
the
Transaction
and
the
New
Agreement,
and
considered
their
possible
effects
on
the
Fund
and
its
shareholders.
In
connection
with
the
Board's
approval
of
the
New
Agreement,
the
Board
considered,
among
other
things,
the
following
factors,
but
did
not
identify
any
single
factor
as
being
of
paramount
importance:
Matter
For
Against
Abstain
To
approve
a
new
investment
advisory
agreement
for
the
Fund
between
the
Trust
and
the
Adviser
6,789,003
(99.42%)
363
(0.01%)
38,992
(0.57%)
22
MAI
Managed
Volatility
Fund
OTHER
INFORMATION
(Unaudited)
August
31,
2026
(i)
Assurances
from
the
Adviser
that
the
way
that
the
Fund
is
managed
will
not
change;
that
the
personnel
who
currently
manage
the
Fund
will
continue
to
do
so
after
the
Transaction;
and
that
there
is
not
expected
to
be
any
change
in
the
nature,
quality,
and
extent
of
services
provided
to
the
Fund;
(ii)
The
advisory
fee
rate
under
the
New
Agreement
will
be
identical
to
the
advisory
fee
rate
under
the
Original
Agreement,
and
that
the
Adviser
had
contractually
agreed
and
would
continue
to
contractually
agree
to
waive
its
fees
or
to
reimburse
Fund
expenses
to
the
extent
necessary
to
keep
the
total
expenses
of
the
Fund
at
or
below
their
current
level
for
at
least
two
years
following
the
Transaction;
(iii)
That
the
shareholders
of
the
Fund
will
not
bear
any
costs
relating
to
the
Transaction;
(iv)
Information
and
representations
provided
by
Adviser
regarding
the
Transaction;
and
(v)
Other
factors
described
in
greater
detail
below.
At
the
meeting,
the
Board
reviewed,
among
other
matters:
(i)
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
the
Adviser,
including
information
on
the
investment
performance
of
the
Fund;
(ii)
the
costs
of
the
services
provided
and
profitability
to
the
Adviser
of
its
relationship
with
the
Fund;
(iii)
the
advisory
fee
and
total
expense
ratio
of
the
Fund
compared
to
those
of
a
relevant
peer
group
of
funds;
(iv)
the
extent
to
which
economies
of
scale
may
be
realized
as
the
Fund
grows
and
whether
the
advisory
fee
enables
the
Fund's
investors
to
share
in
the
benefits
of
economies
of
scale;
and
(v)
other
benefits
received
by
the
Adviser
from
its
relationship
with
the
Fund.
The
Board
recognized
that
the
evaluation
process
with
respect
to
the
Adviser
was
an
ongoing
one
and,
in
this
regard,
the
Board
considered
information
provided
by
the
Adviser
at
regularly
scheduled
meetings
during
the
past
year.
Nature,
Extent
and
Quality
of
Services
The
Board
considered
that
the
Original
Agreement
was
most
recently
renewed
for
another
one-
year
term
at
the
September
meeting,
at
which
time
the
Board
evaluated
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
The
Board
considered
information
regarding
the
experience,
qualifications
and
professional
background
of
the
portfolio
managers
and
other
personnel
at
the
Adviser
who,
under
the
Original
Agreement
had,
and
under
the
New
Agreement
would
continue
to
have,
principal
responsibility
for
the
Fund's
investments.
The
Board
also
considered
the
investment
philosophy
and
decision-making
process
of
those
individuals
and
the
capability
and
integrity
of
the
Adviser's
senior
management
and
staff.
The
Board
also
considered
the
adequacy
of
the
Adviser's
resources.
The
Board
noted
the
Adviser's
representations
that
the
Transaction
is
expected
to
have
no
adverse
impact
on
the
Adviser's
stable
financial
condition.
The
Board
also
acknowledged
the
Adviser's
representation
that
it
has
the
operational
capability
and
the
necessary
staffing
and
experience
to
continue
providing
high-quality
investment
advisory
services
to
the
Fund.
In
this
regard,
among
other
considerations,
the
Board
also
noted
the
Adviser's
representations
that
the
individuals
responsible
for
the
overall
direction
and
day-to-day
management
of
the
firm,
will
remain
employees
of
the
Adviser,
and
that
the
Fund
will
be
managed
in
exactly
the
same
manner
following
the
Transaction.
Based
on
the
presentation
and
the
materials
provided
by
the
Adviser
in
connection
with
the
Board's
consideration
of
the
approval
of
the
New
Agreement,
the
Board
concluded
that,
overall,
it
was
satisfied
with
the
nature,
extent
and
quality
of
services
to
be
provided
to
the
Fund
under
the
New
Agreement.
Performance
The
Board
referenced
the
information
provided
by
the
Adviser
regarding
the
Fund's
performance,
including
information
as
presented
by
the
Adviser
at
the
September
meeting,
and
noted
the
Adviser's
23
MAI
Managed
Volatility
Fund
OTHER
INFORMATION
(Unaudited)
August
31,
2026
representation
that
the
same
portfolio
managers
that
managed
the
Fund
prior
to
the
Transaction
would
continue
to
manage
the
Fund
after
the
Transaction.
The
Board
reviewed
the
performance
of
the
Fund
over
the
one-,
three-,
five-,
and
10-year
periods
ended
March
31,
2026,
and
for
the
period
since
the
Fund's
inception
through
March
31,
2026,
compared
to
its
benchmark
index,
the
S&P
500
Index.
The
Board
also
considered
the
Fund's
performance
over
the
one-,
three-,
and
five-year
periods
ended
June
30,
2025,
relative
to
that
of
an
independent
peer
group
of
funds
identified
by
ISS
Corporate
Solutions,
Inc.
("ISS")
as
having
characteristics
similar
to
the
Fund.
Based
on
the
foregoing,
including
the
Adviser's
representations
to
the
Board
in
the
June
2026
Memorandum,
the
Board
determined
that
the
Fund
and
its
shareholders
could
benefit
from
the
Adviser's
continued
management
of
the
Fund
under
the
New
Agreement.
Compensation
The
Board
reviewed
the
Adviser's
proposed
compensation
under
the
New
Agreement
for
providing
advisory
services
to
the
Fund
and
considered
the
comparative
information
presented
at
the
September
meeting,
which
compared
the
net
advisory
fee
rate
and
actual
total
expense
ratio
of
the
Fund
compared
to
those
of
its
ISS
peer
group.
The
Board
observed
that
the
advisory
fee
rate
under
the
New
Agreement
would
be
identical
to
the
advisory
fee
rate
under
the
Original
Agreement,
and
that
the
Adviser
had
contractually
agreed
to
waive
its
fees
or
to
reimburse
Fund
expenses
to
the
extent
necessary
to
keep
the
total
expenses
of
the
Fund
at
or
below
their
current
level
for
at
least
two
years
following
the
Transaction.
Based
on
the
foregoing
and
other
applicable
considerations,
the
Board
concluded
that
the
Adviser's
advisory
fee
rate
to
be
charged
to
the
Fund
under
the
New
Agreement
would
be
reasonable.
Cost
of
Services
and
Profitability
The
Board
considered
information
regarding
the
costs
of
services
and
the
Adviser's
anticipated
profitability
with
respect
to
the
Fund,
including,
in
particular,
the
information
presented
by
the
Adviser
at
the
September
meeting.
In
this
regard,
the
Board
considered
the
Adviser's
representation
that
the
resources
devoted
to
the
Fund,
as
well
as
the
costs
and
profitability
of
the
Fund
remain
the
same
as
presented
in
connection
with
the
September
2025
renewal.
Based
on
applicable
considerations,
the
Board
concluded
that
the
Adviser's
costs
of
services
and
anticipated
profits
attributable
to
management
of
the
Fund
under
the
New
Agreement
would
be
reasonable.
Economies
of
Scale
The
Board
evaluated
whether
the
Fund
would
benefit
from
any
economies
of
scale
under
the
New
Agreement.
In
this
regard,
the
Board
considered
the
Fund's
fee
structure,
asset
size,
and
net
expense
ratio.
The
Board
noted
the
Adviser's
representation
that
the
Fund
could
potentially
benefit
from
economies
of
scale
if
its
assets
were
to
increase,
but
that
the
Fund
has
a
relatively
low
asset
level
and
that
the
Adviser
will
continue
to
waive
a
portion
of
its
contractual
advisory
fee
in
order
to
keep
the
Fund's
expenses
at
or
below
the
agreed-upon
expense
cap.
Based
on
the
foregoing
and
other
applicable
considerations,
the
Board
concluded
that
any
existing
economies
of
scale
were
addressed
in
the
Fund's
expense
cap
structure
and
that
the
information
presented
was
consistent
with
the
approval
of
the
New
Agreement
at
current
fee
levels.
Other
Benefits
The
Board
noted
the
Adviser's
representation
that,
aside
from
its
contractual
advisory
fees,
it
does
not
benefit
in
a
material
way
from
its
relationship
with
the
Fund.
Based
on
the
foregoing
representation,
the
Board
concluded
that
other
benefits
received
by
the
Adviser
and
its
affiliates
from
the
Adviser's
relationship
with
the
Fund
were
not
a
material
factor
to
consider
in
approving
the
New
Agreement.
24
MAI
Managed
Volatility
Fund
OTHER
INFORMATION
(Unaudited)
August
31,
2026
Conclusion
The
Board
did
not
identify
any
single
factor
as
being
of
paramount
importance,
and
different
Trustees
may
have
given
different
weight
to
different
factors.
The
Board
reviewed
memoranda
from
Fund
counsel
discussing
the
legal
standards
applicable
to
its
consideration
of
the
New
Agreement.
Based
on
its
review,
including
consideration
of
each
of
the
factors
referenced
above,
the
Board
determined,
in
the
exercise
of
its
reasonable
business
judgment,
that
the
advisory
arrangement,
as
outlined
in
the
New
Agreement,
was
fair
and
reasonable
in
light
of
the
services
to
be
performed,
expenses
to
be
incurred
and
such
other
matters
as
the
Board
considered
relevant.
MAI
Managed
Volatility
Fund
Investor
Class
(DIVPX)
Institutional
Class
(MAIPX)
INVESTMENT
ADVISER
MAI
Capital
Management,
LLC
6050
Oak
Tree
Blvd,
Suite
500
Cleveland,
OH
44131
TRANSFER
AGENT
Apex
Fund
Services
P.O.
Box
588
Portland,
ME
04112
www.apexgroup.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.
244-ANR-0826
(b) Included as part of financial statements filed under Item 7(a).
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Included as part of other information filed under Item 7(a).
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Included as part of financial statements filed under Item 7(a).
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Included as part of other information filed under Item 7(a).
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Registrant does not accept nominees to the Board of Trustees from shareholders.
ITEM 16. 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 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 Reporting Period that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Code of Ethics (filed herewith).
(a)(2) Not applicable.
(a)(3) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
(a)(4) Not applicable.
(a)(5) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

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:
November 4, 2026
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:
November 4, 2026
By:
/s/ Karen Shaw
Karen Shaw, Principal Financial Officer
Date:
November 3, 2026
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