ProFunds Group Names Richard Kendrick Managing Director, Marketing
Bethesda, MD, April 27, 2009 - ProFunds Group, the world's largest manager of short and leveraged funds,1 announced today that Richard Kendrick was recently named Managing Director, Marketing. Mr. Kendrick, most recently with RiverSource Investments, will oversee all marketing operations for ProShares ETFs and ProFunds mutual funds. He reports to ProFunds Group Chairman and CEO Michael L. Sapir, and replaces Steve Cohen, who is assuming new responsibilities as head of ProFunds' new Strategy Group.
"For years Rich has directed innovative campaigns that help financial professionals better understand leveraged and inverse investment products. We've admired his work for a long time and are delighted he's joined us," said Mr. Sapir. "As ProFunds Group has grown to nearly $30 billion in assets, we've been selectively adding some of the best talent in the industry to our team."
Mr. Kendrick joins ProFunds from RiverSource Investments in Minneapolis where he served as Vice President, Asset Management Marketing, and was responsible for overseeing the retail marketing of over 70 funds with combined assets of some $65 billion. Previously, Mr. Kendrick was Director, Product and Program Marketing, with Rydex Investments, where he managed the marketing initiatives for over 100 mutual funds and ETFs. He has also worked with the Corporate Executive Board, Oppenheimer & Co., and Merrill Lynch. Mr. Kendrick received his BS in management and communications from Adelphi University and his MBA from Duke University. He has also completed the Marketing Strategy Program at Harvard Business School.
About ProFunds Group
ProFunds Group includes 76 ProShares short and leveraged ETFs, and 115 ProFunds mutual funds. ProShares, which introduced the first short and leveraged ETFs in 2006, continues to be a leader in launching innovative new products—for two years in a row, ProShares has led the industry in attracting assets to newly launched ETFs2 and now is the fourth largest manager of ETFs in the nation3. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies, with offerings that include funds that seek to magnify daily index performance and funds that seek to increase in value when markets decline. The group also manages the Canada-based Horizons BetaPro ETFs.
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All ProShares ETFs and many ProFunds employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value. Each ProShares ETF and leveraged or inverse ProFund seeks a return that is a multiple (e.g., 200%) of the return of an index or other benchmark (target) for a single day. Due to the compounding of daily returns, ProShares' and leveraged and inverse ProFunds' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.
All investing involves risk, including the possible loss of principal. Short ProShares and ProFunds should lose value when their market indexes rise, and they entail certain risks, including, in some or all cases: aggressive investment techniques, including the use of futures contracts, options, forward contracts, swap agreements and similar instruments; inverse correlation; and market price variance risks, all of which can increase volatility and decrease performance. ProShares and ProFunds are not diversified investments. Narrowly focused investments, including sector funds, typically exhibit higher volatility. There is no guarantee that any fund will achieve its investment objective.
ProFunds Group includes ProFunds mutual funds and ProShares ETFs. ProFunds Distributors, Inc. , is distributor for ProFunds mutual funds. ProShares ETFs registered under the Investment Company Act of 1940 are distributed by SEI Investments Distribution Co., which is not affiliated with ProFunds Group or its affiliates.
1Source: Lipper, based on a worldwide analysis of all of the known providers of publicly traded funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2008).
2 Source: Citigroup ETF Flow Report, based on an analysis of ETPs introduced in 2007 and 2008.
3Source: Bloomberg, based on assets for 1/30/2009.