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ProFunds Launches Four Innovative International Funds

New funds provide magnified long and short exposure to established international market and emerging market indexes

Bethesda, MD, April 19, 2006 — ProFund Advisors LLC, investment adviser to the ProFunds family of index-based mutual funds, announced the opening of four new international equity funds. Two of the funds offer exposure to developed markets and two offer exposure to emerging markets. The funds are designed to provide magnified exposure—both long and short—to these markets:

  • UltraInternational ProFund seeks daily investment results, before fees and expenses, that correspond to double (200%) the daily price performance of the MSCI EAFE® Index. UltraShort International ProFund seeks the opposite—double the inverse of the daily performance of that index, before fees and expenses. Each fund's success will be measured by comparing its daily return to the daily performance of MSCI EAFE® futures contracts traded in the United States.
  • UltraEmerging Markets ProFund seeks daily investment results, before fees and expenses, that double the daily price performance of The Bank of New York (BNY) Emerging Markets 50 ADR Index. UltraShort Emerging Markets ProFund seeks double the inverse of the daily performance of that index, before fees and expenses.

"Mutual fund investors have come to realize the benefits of adding an international component to a portfolio. Our new funds are designed to make it easier to manage exposure to foreign markets," said Michael L. Sapir, Chairman and CEO of ProFund Advisors, LLC. "The new funds make implementing more sophisticated strategies like gaining magnified exposure or shorting foreign markets as simple as buying a mutual fund. And at ProFunds we don't place restrictions on how often investors can trade our funds, so they can adjust that exposure as they see fit."

With these four new ProFunds, the firm now offers seven international equity funds that let investors seek different levels of long and short exposure in different world markets. As with all ProFunds, investors are not restricted from reacting to financial or economic changes by shifting investments from one ProFund to another, although exchanges may have tax consequences.

About the MSCI EAFE® Index

The MSCI EAFE® Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. As of May 2005 the MSCI EAFE® Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

About BNY Emerging Markets 50 ADR Index

The BNY Emerging Markets 50 ADR Index is a free-float adjusted capitalization-weighted index. The Index is designed to track the performance of a basket of companies who have their primary equity listing on a stock exchange of an emerging market country and who also have Depositary Receipts that trade on a U.S. exchange or on the NASDAQ. Securities eligible for inclusion in the Index are evaluated to ensure their overall consistency with the character, design and purpose of the index which is to further its use as an effective benchmark. Decision regarding additions to and removals from the Index are guided by certain pre-existing objective criteria. The Index is maintained by The Bank of New York. The Index currently consists of the following emerging market countries: Brazil, Korea, Mexico, Taiwan, China, South Africa, India, Israel, Russia, Indonesia and Argentina.

More About UltraInternational ProFund

UltraInternational ProFund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the MSCI EAFE® Index. UltraInternational ProFund determines its success in meeting this investment objective by comparing its daily return on a given day with the daily performance of MSCI EAFE® futures contracts traded in the United States. If UltraInternational ProFund is successful in meeting its objective, its net asset value should gain approximately twice as much, on a percentage basis, as any increase in the daily performance of the related futures contracts. Conversely, its net asset value should lose approximately twice as much, on a percentage basis, as any decrease in the daily performance of the related futures contracts when they decline on a given day.

More about UltraShort International ProFund

UltraShort International ProFund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the MSCI EAFE® Index. UltraShort International ProFund determines its success in meeting this investment objective by comparing its daily return on a given day with the daily performance of MSCI EAFE® futures contracts traded in the United States. If UltraShort International ProFund is successful in meeting its objective, its net asset value should gain approximately twice as much, on a percentage basis, as any decrease in the daily performance of the related futures contracts. Conversely, its net asset value should lose approximately twice as much, on a percentage basis, as any increase in the daily performance of the related futures contracts when they rise on a given day.

More about UltraEmerging Markets ProFund

UltraEmerging Markets ProFund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the BNY Emerging Markets 50 ADR Index. If UltraEmerging Markets ProFund is successful in meeting its objective, its net asset value should gain approximately twice as much, on a percentage basis, as the BNY Emerging Markets 50 ADR Index when the Index rises on a given day. Conversely, its net asset value should lose approximately twice as much, on a percentage basis, as the Index when the Index declines on a given day.

More about UltraShort Emerging Markets ProFund

UltraShort Emerging Markets ProFund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the BNY Emerging Markets 50 ADR Index. If UltraShort Emerging Markets ProFund is successful in meeting its objective, its net asset value should gain approximately twice as much, on a percentage basis, as any decrease in the BNY Emerging Markets 50 ADR Index when the Index declines on a given day. Conversely, its net asset value should lose approximately twice as much, on a percentage basis, as any increase in the Index when the Index rises on a given day.

About ProFund Advisors LLC

ProFund Advisors LLC, located in Bethesda, MD, is investment advisor to ProFunds, the nation's largest lineup of indexed mutual funds1, with more than 50 mutual fund choices.

Investing in ProFunds involves certain risks, including in all or some cases, leverage, liquidity, concentration, non-diversification, foreign investment, foreign currency ,high yield, interest rate, credit, market, correlation, aggressive investment technique and repurchase agreement risks. These risks can increase volatility and decrease performance. Please see the prospectuses for a more complete description of these risks. All ProFunds permit active investment strategies which can decrease performance and increase expenses.

An investor should consider the investment objectives, risks and charges and expenses of ProFunds carefully before investing or sending money. The prospectus contains this and other information about ProFunds. To obtain a prospectus, please call 888-776-3637 or visit www.profunds.com. Financial Professionals should call 888-776-5717. The prospectus should be read carefully before investing. ProFunds Distributors, Inc., distributor.

Notes:
1 Source: Lipper. October 12, 2005. Lipper defines "Indexed Fund" as an open-end mutual fund which is pure index, enhanced index or index-based but is not an Exchange Traded Fund (ETF).

Media contact

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com