FAQs
About Splits and Reverse Splits for ProFunds
- What is a split? A reverse split?
- With splits, how many shares of each fund will be received? Will a split affect the value of my investment?
- With reverse splits, how many shares of each fund will be received? Will a reverse split affect the value of my investment?
- Will ProFunds shareholders participating in splits or reverse splits incur any additional fees?
- What will happen to shares of affected funds bought or sold on or after the effective date?
- Will the ticker symbols or CUSIP numbers change?
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What is a split? A reverse split?
A split decreases the fund's price per share and proportionately increases the number of shares outstanding. Splits occur in ratios; for example, after a two-for-one split, a shareholder would own double the number of shares previously held. The total value of shareholders' investments will not change after the split, however, because the post-split shares will be priced at half of the net asset value (NAV) of pre-split shares.
A reverse split increases the price per share and proportionately reduces the number of shares outstanding for a fund. As with a split, a reverse split does not change the total value of investors' investments. For example, in a one-for-four reverse split, every four pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced four times higher than the NAV of pre-split shares.
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With splits, how many shares of each fund will be received? Will a split affect the value of my investment?
Hypothetical Fund ABC is undergoing a two-for-one split. This means that for every one share of Fund ABC, an investor will receive two shares.
Example of a hypothetical two-for-one split:
# of Shares Owned on Record Date Hypothetical NAV Value of Shares Pre-Split 100 shares $100.00 $10,000.00 Post-Split 200 shares $50.00 $10,000.00 Post-split, shareholders will own more shares but the price per share will be proportionately lower. As a result, the total value of an investment will not change.
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With reverse splits, how many shares of each fund will be received? Will a reverse split affect the value of my investment?
Hypothetical Fund ABC is undergoing a one-for-four reverse split. This means that for every four shares of Fund ABC, an investor will receive one share.
Example of a hypothetical one-for-four reverse split:
# of Shares Owned on Record Date Hypothetical NAV Value of Shares Pre-Split 1,000 shares $10.00 $10,000.00 Post-Split 250 shares $40.00 $10,000.00 Post-reverse split, shareholders will own fewer shares but the price per share will be proportionately higher. As a result, the total value of an investment will not change.
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Will ProFunds shareholders participating in splits or reverse splits incur any additional fees?
Accounts held directly at ProFunds will not incur a fee for a split or reverse split. ProFunds shareholders holding shares through a brokerage platform could incur a corporate action processing fee. Shareholders should check with their brokerage firms to determine whether their accounts will be charged.
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What will happen to shares of affected funds bought or sold on or after the effective date?
All transactions occurring on or after the effective date will be at post-split prices and share quantities.
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Will the ticker symbols or CUSIP numbers change?
No. Neither the ticker symbols nor the CUSIP numbers of the funds undergoing splits or reverse splits will change.
Investing involves risk, including the possible loss of principal. ProFunds are non-diversified and entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProFunds should lose money when their benchmarks or indexes rise. See the prospectuses for a more complete description of risks. There is no guarantee any ProFund will achieve its investment objective.