ProFund Advisors Launches U.S. Dollar ProFunds; Innovative Mutual Funds Offer Simple Ways to Take Advantage of a Rising or Falling Dollar.BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md. -- ProFunds today announced the launch of the Rising U.S. Dollar ProFund and Falling U.S. Dollar ProFund, a combination of mutual funds specifically designed for investors seeking to benefit from a strengthening or weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. U.S. dollar."Many investors are hearing about the weakening dollar but don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. how to try to take advantage of that trend or to attempt to benefit when the dollar recovers," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. L. Sapir, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ProFund Advisors LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and to ProFunds. "These new ProFunds make seeking specifically to take advantage of changes in the dollar's relative strength as simple as buying and selling mutual funds." "We believe that these new ProFunds add important investment options to those otherwise available to investors," Mr. Sapir added. "Many may not be familiar with or comfortable with other methods of obtaining specific exposure to the relative strength of the dollar, such as entering the currency futures Currency Futures A transferable futures contract that specifies the price at which a specified currency can be bought or sold at a future date. Notes: Currency future contracts allow investors to hedge against foreign exchange risk. markets or buying actual foreign currencies. And, while mutual fund investors can try to take advantage of the dollar's movements through foreign stock or bond funds, those traditional funds are designed to be significantly affected by variables other than the movement of the dollar." "Rising U.S. Dollar ProFund and Falling U.S. Dollar ProFund are both benchmarked to the U.S. Dollar Index(R)(1), so investors will know how they should perform as the dollar strengthens or weakens." Mr. Sapir said. "In addition to appreciation or depreciation from index changes, each fund may also provide income." As with all ProFunds, investors in the Rising U.S. Dollar and Falling U.S. Dollar ProFunds will enjoy the flexibility to shift their investments as they see market conditions changing. There are no limits on the number of exchanges among the more than 40 ProFunds, but exchanges may have tax consequences. About the Rising U.S. Dollar and Falling U.S. Dollar ProFunds Both funds seek daily investment results, before fees and expenses, that correspond to the daily performance of the U.S. Dollar Index (USDX(R)). ProFund Benchmark Index Daily Objective Rising U.S. Dollar U.S. Dollar Index (USDX) Match (100%) Falling U.S. Dollar U.S. Dollar Index (USDX) Inverse (-100%) Of course, there is no guarantee the funds will reach their objectives. About the U.S. Dollar Index Like the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. (TM) provides a general indication of the value of the U.S. stock market, the U.S. Dollar Index provides a general indication of the international value of the U.S. dollar. The index value is calculated continuously and disseminated disseminated /dis·sem·i·nat·ed/ (-sem´i-nat?ed) scattered; distributed over a considerable area. dis·sem·i·nat·ed adj. Spread over a large area of a body, a tissue, or an organ. by the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Board of Trade(R). The USDX is calculated using a trade-weighted geometric average of six foreign currencies, weighted as follows:
Currency Weight
Euro 57.6%
Japanese Yen 13.6%
British Pound 11.9%
Canadian Dollar 9.1%
Swedish Krona 4.2%
Swiss Franc 3.6%
More information on the USDX is available from the New York Board of Trade website at: http://www.nybot.com/usdx/pdf/usdx.pdf. About ProFund Advisors LLC ProFund Advisors LLC, located in Bethesda, MD, is investment advisor to ProFunds, the nation's largest lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. of index-based mutual funds(2), with more than 40 fund choices. ProFunds does not restrict investors' abilities to shift their investments from one ProFund to another as they see fit, although exchanges may have tax consequences. Investing in ProFunds involves certain risks, including in all or some cases, exchange rate, foreign currency, foreign money market instrument, leverage, liquidity, concentration, non-diversification, high yield, interest rate, credit, market, correlation, aggressive investment technique and repurchase agreement Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. 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. To obtain a prospectus, please call 888-PRO-FNDS or visit www.profunds.com. Financial Professionals should call 888-PRO-5717. The prospectus should be read carefully before investing. ProFunds Distributors, Inc. distributor. (1) "New York Board of Trade((R))", "NYBOT(R)", "The U.S. Dollar Index(R)" and "USDX(R)" are trademarks or service marks of the Board of Trade of the City of New York, Inc. and have been licensed for use by ProFunds. (2) Source: Lipper, October 14, 2004. |
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