Since 1997, ProFunds has provided a diverse lineup of mutual funds that offer trading flexibility to all shareholders.
ProFunds' trading and disclosure practices reflect our commitment of fairness to ProFunds shareholders. We greatly value the trust our shareholders have placed in us and will continue to operate in a manner that justifies that trust. We are following the current regulatory situation closely and reviewing our own procedures to ensure that we are in compliance with any new regulatory standards.
Since its inception, ProFunds' policy has been to permit exchanges among ProFunds with no upper limit on size or frequency and no transaction fees. These flexible exchange policies apply to all shareholders, not to only a select few, and are fully disclosed in the prospectus.
ProFunds' indexed mutual fund portfolios were designed to accommodate frequent trading and large movements of assets in and out of the ProFunds. ProFunds seeks to invest cash flows on a daily basis in order to remain fully invested and minimize the impact of frequent trading.
At ProFunds, before we introduced funds investing in companies based outside the U.S., we anticipated the problem of stale pricing and the potential for arbitrage. ProFunds addressed this issue head on by pricing these funds based on instruments that trade in U.S. markets at the time U.S. markets close.
At ProFunds, we do not permit late trading.