Three New ProFunds Seek to Double Small-Cap, Mid-Cap and Nikkei Indexes
Bethesda, MD, February 3, 2000 &mdash ProFund Advisors LLC announced today that it will launch three new ProFunds on February 7, 2000: UltraSmall-Cap ProFund, UltraMid-Cap ProFund and UltraJapan ProFund.
The three new ProFunds are part of ProFunds' family of enhanced index mutual funds. Each is designed to double the daily performance of the index it tracks.
The new ProFunds and the index they seek to double are:
- UltraJapan ProFund and the Nikkei 225 Stock Average1
- UltraSmall-Cap ProFund and the Russell 2000® Index
- UltraMid-Cap ProFund and the S&P MidCap 400 Index
"When an index tracked by one of these new Ultra ProFunds increases by 1% on a particular day, the ProFund's value should increase by approximately 2%," says Michael L. Sapir, chairman and chief executive officer of ProFund Advisors LLC, the investment advisor to ProFunds. "If one of the indexes falls 1% on a given day, the value of the Ultra ProFund tracking it should decrease by approximately 2%."
"These three new funds complement our popular UltraOTC ProFund, UltraBull ProFund and UltraEurope ProFund, offering our shareholders exposure to three important, additional market segments. We anticipate that many investors will pursue a 'buy and hold' or asset allocation strategy with these ProFunds, although others may seek to profit from short-term movements in the indexes," Sapir says.
ProFunds imposes no loads, no transaction fees and no limits on exchanges among ProFunds. ProFunds offers investors opportunities not historically available through mutual funds, including opportunities to double the daily performance of stock indexes or to realize gains or hedge a portfolio when certain indexes decline in value.
"These three new ProFunds provide investors with additional opportunities to profit from market movements," Sapir says, "and to either more carefully target or more widely diversify their portfolios."
"While we believe ProFunds provide investors with unique opportunities," Sapir cautions, "all potential shareholders should be aware these ProFunds present certain risks that are not usually associated with mutual funds."
Certain ProFunds employ leveraged investment techniques that should magnify gains and losses and result in greater volatility in value. Moreover, exchanges among ProFunds may result in tax consequences.
These and other risks presented by the ProFunds are discussed in the ProFunds' prospectus. Investors should not invest in ProFunds without reading the prospectus carefully and understanding the risks associated with each ProFund.
ProFunds has approximately $2.3 billion under management. Minimum investment is $15,000 for an individual investor and $5,000 for investments made by clients of financial professionals. Interested investors may call 888-PRO-FNDS or visit www.profunds.com for more information. Financial professionals should call 888-PRO-5717.
"S&P MidCap 400" is a trademark of the McGraw-Hill Companies, Inc., and is licensed for use by ProFunds. "Russell 2000® Index" and "Nikkei 225 Stock Average" are trademarks, respectively, of the Frank Russell Company and Nihon Keizai Shimbun, Inc. ProFunds are not sponsored, endorsed, sold or promoted by S&P, the Frank Russell Company or Nihon Keizai Shumbun, Inc., and these companies make no representations regarding the advisability of investing in ProFunds. You cannot invest directly in an index.
The Russell 2000® Index is an unmanaged index consisting of 2,000 small company common stocks. The Index comprises 2,000 of the smallest U.S. domiciled publicly traded common stocks that are included in the Russell 3000® Index, and represents 8 percent of the total market capitalization of that index, which in turn represents approximately 98 percent of the public traded U.S. equity market. The S&P MidCap 400 Index is an unmanaged, widely used measure of medium capitalized U.S. company stock performance. It consists of the common stocks of 400 major corporations selected for their size and the frequency and ease with which their stocks trade. The Nikkei 225 Stock Average is an unmanaged, price-weighted index of 225 large, actively traded Japanese stocks traded on the Tokyo Stock Exchange.
Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure.
1International investing involves increased risk and volatility.
For more information, including management fees, expenses and other ongoing charges, call for a prospectus. Read it carefully before investing or sending money. ProFunds is distributed by Concord Financial Group, Inc.