Exhibit (h)(4)

Exhibit (h)(4)

May 1, 2011

Forward Management, LLC

000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000

San Francisco, California 94111

Re: Transfer Agent Fee Reimbursement

This letter agreement (the “Agreement”) confirms the fee reimbursement between Forward Funds (the “Trust”), on behalf of each of the series listed on Schedule A (each a “Fund” and collectively, the “Funds”), and Forward Management, LLC (the “Advisor”) with respect to the transfer agent fees paid by the Funds to the transfer agent, ALPS Fund Services, Inc. (“ALPS”).

1. Transfer Agent Fee Reimbursement. The Advisor has agreed to reimburse the Trust for the entire amount of the transfer agent fees payable by the Funds to ALPS under the Amended and Restated Transfer Agency and Services Agreement, dated June 3, 2009 and effective as of June 15, 2009, as amended (the “Transfer Agency Agreement”), between the Trust and ALPS.

2. Term and Termination. This Agreement shall become effective on May 1, 2011 and shall continue in effect until April 30, 2012. This Agreement will terminate automatically in the event of the termination of the Transfer Agency Agreement.

3. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, provided that nothing in this Agreement shall be construed in a manner inconsistent with the Investment Company Act of 1940, as amended, or the Investment Advisers Act of 1940, as amended.

Please indicate your approval of this Agreement by signing and returning a copy of this letter to the Trust.

FORWARD FUNDS						FORWARD MANAGEMENT, LLC
By:		/s/ Xxxx Xxxxxx				By:		/s/ Xxxx Xxxxxxxxx
Name:		Xxxx Xxxxxx				Name:		Xxxx Xxxxxxxxx
Title:		Secretary				Title:		Chief Financial Officer

SCHEDULE A

FUND

Forward Aggressive Growth Allocation Fund

Forward Balanced Allocation Fund

Forward Growth Allocation Fund

Forward Growth & Income Allocation Fund

Forward Income Allocation Fund

Forward Income & Growth Allocation Fund