< Back to Press Releases

ProFunds Launches Six Unleveraged Funds; Four Funds Focus On Value or Growth Sides of Small- and Mid-cap Equity Market; Two are Broad-Based Small and Mid Cap Offerings

BETHESDA, Md.--Sept. 4, 2001--ProFunds today launched six unleveraged index-based mutual funds.

The new offerings are among nine ProFunds that seek to match the performance of their benchmark indexes. They complement the ProFunds line-up of leveraged broad market and sector index funds. The new funds and their respective benchmarks are:

ProFund Benchmark
Mid-Cap ProFund S&P MidCap 400 Index
Mid-Cap Value ProFund S&P MidCap 400/BARRA Value Index
Mid-Cap Growth ProFund S&P MidCap 400/BARRA Growth Index
Small-Cap ProFund Russell 2000®Index
Small-Cap Value ProFund S&P SmallCap 600/BARRA Value Index
Small-Cap Growth ProFund S&P SmallCap 600/BARRA Growth Index

These ProFunds are designed for active investors who want to take advantage of the historic divergence of value and growth segments of the market by overweighting their portfolios on either side of the small- or mid-cap equity market, or the broader small- or mid-cap equity market, said Michael L. Sapir, Chairman and CEO of ProFund Advisors LLC, investment advisor to the Bethesda-based mutual fund family.

As with all ProFunds, we will not restrict investors' ability to move into and out of these new funds. In contrast, most fund families discourage frequent transactions, especially in their small-and mid-cap portfolios.

We believe that S&P/BARRA indexes are more transparent, liquid and widely followed than comparable indexes, said Mr. Sapir. "Since 1992, Standard & Poor's and BARRA have collaborated to formulate numerous growth and value equity indexes."

Companies in each S&P/BARRA index are split into two groups based on price-to-book ratio to create growth and value indices. The Value index contains companies with lower price-to-book ratios, while the Growth index contains those with higher ratios. The indexes are rebalanced twice per year.

With the addition of the new small- and mid-cap ProFunds, our 39-fund family offers the largest number of index-based funds of any U.S. mutual fund company, including leveraged and unleveraged broad market funds and bearish funds, and leveraged sector funds, Mr. Sapir said, "further establishing our leadership as an innovator in providing indexed investment products."

ProFunds offers innovative indexed-based funds that are designed to overcome limitations of conventional index mutual funds. ProFunds does not restrict investors' abilities to react to financial or economic changes and exchange their investments from one ProFund to another, and imposes no transaction, entry or exit fees.

More information on ProFunds is available at http://www.profunds.com/. Interested investors may call 888/PRO-FNDS and financial professionals should call 888/PRO-5717.

Small-Cap ProFunds carry additional risks since smaller companies generally have a higher risk of failure. 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.

For more information, including management fees, expenses and other ongoing charges, call for a prospectus or download a prospectus from this site. Read the prospectus carefully before investing or sending money. ProFunds are distributed by Concord Financial Group, Inc.

The S&P MidCap 400 Index, S&P MidCap 400/BARRA Value Index, S&P MidCap 400/BARRA Growth Index, S&P SmallCap 600 Index, S&P SmallCap 600/BARRA Value Index, and S&P SmallCap 600/BARRA Growth Index are trademarks of The McGraw Hill Companies, Inc. and have been licensed for use by ProFunds. The Russell 2000® Index is a trademark of the Frank Russell Company.

ProFunds are not sponsored, endorsed, sold or promoted by these organizations, and the organizations make no representation regarding the advisability of investing in ProFunds. You cannot invest directly in an index.