ProFund Advisors Launches Short Oil & Gas, Short Real Estate Sector Funds
Two new ProFunds allow investors to take advantage of a potential downturn in energy, real estate sectors
Bethesda, MD, September 27, 2005 — ProFund Advisors LLC, investment adviser to the ProFunds family of index-based mutual funds, announced the opening of two new funds: Short Oil & Gas ProFund and Short Real Estate ProFund. Unlike traditional sector funds, these new ProFunds are designed to increase in value when their sector benchmarks decline and decrease when their benchmark indexes rise. As with all ProFunds, both funds offer investors the flexibility to adjust their investments without exchange restrictions and redemption fees, although exchanges may have tax consequences.
"For investors who believe a particular economic sector has good prospects, our 18 UltraSector ProFunds offer the greatest selection of indexed sector funds in the nation (1). Our investors have asked us to create additional opportunities for when they believe a sector of the economy will cycle downward," said Michael L. Sapir, Chairman and CEO of ProFund Advisors LLC. "We are responding by launching these new ProFunds, which cover two sectors that recently have been the subject of much attention—real estate and oil and gas."
Short Real Estate ProFund is designed to benefit when the overall market for REITs (real estate investment trusts) goes down—its benchmark index primarily contains REITs that invest in office, retail and apartment properties. Similarly, Short Oil & Gas ProFund should benefit when energy companies—from exploration to production to pipeline operators—see a downturn. Each fund can be used to seek profits from a downturn in its respective benchmark index, or to help mitigate losses from an anticipated decline.
More About the Funds
Short Oil & Gas ProFund seeks daily investment results, before fees and expenses that match the inverse (opposite) of the daily price movement of the Dow Jones Oil & Gas Index. So on a day when the index falls 1%, the fund should increase by approximately 1%, before fees and expenses; and on a day when the index rallies 1%, the fund should decline by about 1%, before fees and expenses.
The Dow Jones Oil & Gas Index measures the performance of the energy sector of the U.S. equity market. It comprises the major and secondary integrated oil companies; energy exploration and production companies (liquid, solid or gaseous fuels); oil drilling and services firms; pipeline operators and coal companies.
Short Real Estate ProFund seeks daily investment results, before fees and expenses, that match the inverse (opposite) of the daily price movement of the Dow Jones Real Estate Index. So on a day when the index falls 1%, the fund should increase by approximately 1%, before fees and expenses; and on a day when the index rallies 1%, the fund should decline by about 1%, before fees and expenses.
The Dow Jones Real Estate Index measures the performance of the real estate sector of the U.S. equity market. It comprises companies that invest directly or indirectly in real estate via development, management or ownership of shopping malls, apartment buildings and housing developments. It also includes real estate investment trusts ("REITs") that invest in apartments, office and retail properties. REITs are passive investment vehicles that invest mainly in income-producing real estate or real estate-related loans or interests.
There is no guarantee that any ProFund will achieve its investment objective. Investment return and principal value will vary and shares may be worth more or less at redemption than at original purchase. See the prospectus for more information. The Short Oil & Gas and Short Real Estate ProFunds invest in a single industry. Their shares do not represent a complete investment program. Because they are non-diversified, single-industry funds, the value of their shares may fluctuate more than those of funds that invest in a broader range of industries and companies. It is not possible to invest directly in an index.
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 fund choices. 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 involves certain risks, including in all or some cases, leverage, liquidity, concentration, non-diversification, 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.
1 Source: Lipper. October 14, 2004. 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).
Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, email@example.com