https://www.sec.gov/Archives/edgar/data/315774/000143510918000240/asf_497.htmABSOLUTE STRATEGIES FUND (the "Fund")
Supplement dated April 10, 2018 to the Prospectus dated August 1, 2017, as supplemented
Conversion of Class R Shares to Institutional Class Shares
On March 27, 2018, the Board of Trustees of Forum Funds (the "Trust") approved a Plan of Conversion and Termination (the "Plan") pursuant to which the Fund's Class R shares will convert into its Institutional Class shares. The Fund's investment adviser (the "Adviser") recommended the approval of the Plan to the Board. Based on the Adviser's recommendation, the Board concluded that it is in the best interests of the shareholders of the Fund's Class R shares ("Shareholders") to convert the Class R shares to Institutional Class shares.
The Fund anticipates that it will complete the Plan on or around the close of business on August 1, 2018 (the "Conversion Date"). In anticipation of the conversion, the Fund will convert the Class R shares, without any fee, load, or charge to any Shareholder, to shares of the Fund's Institutional Class shares with an aggregate net asset value per share ("NAV") equal to the aggregate NAV of each Shareholder's Class R shares, both determined as of the Conversion Date. The conversion would be tax-free for Shareholders and place Shareholders in a less expensive share class of the Fund. Following the conversion into the Institutional Class shares, the Fund will take all necessary actions to terminate its Class R shares.
Shareholders have the right to redeem their Class R shares prior to the Conversion Date. Furthermore, purchases of and exchanges into Class R shares will immediately cease to be accepted as of the date of this supplement.
Subadviser Change in Control, Approval of New Subadvisory Agreement
In anticipation of a change in control of Tortoise Capital Advisors, L.L.C. ("TCA"), an investment subadviser to the Fund, and to provide for continuity of management, on January 31, 2018, the Board approved the termination of the original subadvisory agreement between Absolute Investment Advisers LLC ("Absolute") and TCA (the "Original Agreement") and approved an interim investment subadvisory agreement between Absolute and TCA ("Interim Agreement"), effective as of the close of the anticipated change in control transaction. The Interim Agreement provided that it would remain in effect for the lesser of 150 days from its effectiveness, or until the Board approves a new, permanent investment subadvisory agreement between Absolute and TCA.
On March 27, 2018, the Board approved a new, permanent subadvisory agreement between Absolute and TCA (the "Subadvisory Agreement"). The terms of the Subadvisory Agreement are materially identical to those of the Original Agreement, including the subadvisory fee to be paid to TCA thereunder. Pursuant to an exemptive order from the U.S. Securities and Exchange Commission, Absolute, subject to Board approval, is permitted, as it did here, to enter into new or modified subadvisory agreements with existing or new Subadvisers for the Fund without obtaining approval of Fund shareholders...
