ProFund Advisors Launches Bear High Yield Fund
Firm Now Offers Opportunities When High Yield Bonds Rise and When They Fall
Bethesda, MD, April 27, 2005 — ProFund Advisors LLC today announced the launch of the Access Flex Bear High Yield Fund, a mutual fund designed to increase in value when the high yield bond market falls. The fund complements the firm's recently introduced Access Flex High Yield Fund, which is designed to increase in value when the high yield market moves up. Both funds provide investors the flexibility to make changes to their investments without the exchange restrictions and redemption fees commonly imposed by many other high yield funds. (Exchanges may have tax consequences.)
"Last December we launched the Access Flex High Yield Fund to give mutual fund investors a way to get high yield bond market exposure without sacrificing the freedom to move in and out of that market as they see fit. Then investors began to ask us for a fund that allowed them to try to take advantage of the high yield market during those times when they expect it to decline in value," said Michael L. Sapir, Chairman and CEO of ProFund Advisors LLC. "We created Access Flex Bear High Yield to respond to that need."
"Rather than sit on the sidelines when they think a market decline is imminent, the new fund offers high yield mutual fund investors the opportunity to seek profit," Sapir continued. "Or they could attempt to seek to offset losses by hedging high yield bond investments they don't want to sell."
The funds are part of the Access One group, managed by ProFund Advisors. The Access One funds give investors access to specialty products that may not share all the features of funds in the ProFunds family. Like the ProFunds, there are no restrictions on the frequency of purchases or redemptions in either high yield fund—and fund shares are fully exchangeable with the entire family of more than 40 ProFunds. However, unlike the ProFunds, these funds are not benchmarked to a specific market index or security.
More about the Funds
- Access Flex Bear High Yield Fund seeks to provide inverse (opposite) exposure to the overall high yield market. That means that unlike traditional high yield mutual funds, Access Flex Bear High Yield Fund should increase in value when the high yield market falls. Conversely, the fund should decrease in value when the high yield market rallies.
- Access Flex High Yield Fund offers an opportunity to seek profit when the overall high yield market rises. Access Flex High Yield Fund should increase in value when the high yield market rises and decrease in value when the high yield market turns down.
There is no guarantee that either fund will meet its objective. The funds may invest in high yield debt instruments and/or related derivatives, which generally are considered speculative because they present a greater risk of loss than higher-quality debt securities. These securities also may be subject to greater price volatility. Investing in these funds involves other risks, including credit default swap, counterparty, interest rate, repurchase agreement, liquidity, aggressive investment technique, issuer, management, market, non-diversification, turnover, foreign investment and valuation risks, and for the bear fund, inverse correlation risk. These risks can increase volatility and decrease performance. Foreign securities may be subject to greater risks than U.S. investments, including different accounting rules, currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information and changes in tax or currency laws or monetary policy. Please see the prospectus for a more complete description of these risks.
About ProFund Advisors LLC
ProFund Advisors LLC, located in Bethesda, MD, is investment advisor to the Access One Trust. ProFund Advisors also manages ProFunds, the nation's largest lineup of indexed mutual funds1, with more than 40 fund choices, including eight inverse equity funds and two other inverse bond funds. ProFunds do not restrict investors' abilities to react to financial or economic changes and shift their investments from one ProFund to another, although exchanges may have tax consequences.
Investing in ProFunds and Access One Funds involves certain risks, including in all or some cases, leverage, liquidity, concentration, non-diversification, high yield, interest rate, credit and repurchase agreement risks. These risks can increase volatility and decrease performance. Please see the ProFunds prospectus and Access One Funds prospectus for a more complete description of these risks. All ProFunds and Access One Funds permit active investment strategies which can decrease performance and increase expenses.
An investor should consider the investment objectives, risks, and charges and expenses of Access Flex High Yield and Access Flex Bear High Yield Fund carefully before investing or sending money. The prospectus contains this and other information. To obtain a prospectus, please call 888-PRO-FNDS or visit www.accesshighyield.com. Financial Professionals should call 888-PRO-5717. The prospectus should be read carefully before investing.
1Lipper. October 14, 2004. Lipper defines "indexed fund" as an open-end mutual fund (not an Exchange Traded Fund, or ETF) that falls into one of the following subcategories: pure index, enhanced index or index-based. The majority of ProFunds are categorized by Lipper as enhanced index funds.
Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, firstname.lastname@example.org