<PAGE>
[GRAPHIC]
December 31, 1999
annual report
The ProFunds VP
ProFund VP UltraOTC
ProFund VP Europe 30
ProFund VP Small Cap
[LOGO]
ProFunds/SM/
<PAGE>
ProFund VP UltraOTC
Launched on October 19, 1999, the investment objective of the ProFund VP
UltraOTC Fund is to provide investment results that correspond to 200% of the
performance of the NASDAQ 100 Index, on a daily basis. This index includes 100
of the largest non-financial domestic companies listed on the NASDAQ National
Market tier of the NASDAQ Stock Market.
Since its inception, the Fund's performance has tracked its benchmark with a
statistical correlation of over .99. As a result, for the same period, it has
produced a return of 136.43%, versus its benchmark, which produced a return of
56.96%.
[GRAPH APPEARS HERE]
* Past performance is not predictive of future results. The investment return
and NAV will fluctuate so that the investor's shares, when redeemed, may be
worth more or less than the original cost.
The performance of the ProFund VP UltraOTC is measured against the NASDAQ 100
Index, an unmanaged index generally representative of the performance of the
NASDAQ Stock Market as a whole. The index does not reflect reinvestment of
dividends or the deduction of expenses associated with a mutual fund, such as
investment management and accounting fees. The Fund's performance reflects the
deduction of these value-added services.
1
<PAGE>
ProFund VP Europe 30
Launched on October 19, 1999, the investment objective of the ProFund VP
Europe 30 is to provide investment results that correspond to the performance
of the ProFunds Europe 30 Index. The ProFunds Europe 30 Index is an unmanaged
index, which represents the performance of the 30 largest European-based
companies represented by American Depository Receipts, as determined by market
capitalization.
Over the approximately three months of operations since its launch, the
Fund's results tracked the performance of its index with a statistical
correlation of 1.00. Since its inception, the ProFund VP Europe 30 has produced
a return of 22.73%.
[GRAPH]
* Past performance is not predictive of future results. The investment return
and NAV will fluctuate so that the investor's shares, when redeemed, may be
worth more or less than the original cost.
The performance of the ProFund VP Europe 30 is measured against the ProFunds
Europe 30 Index, an unmanaged index consisting of 30 European companies whose
securities are traded on U.S. Exchanges or on the NASDAQ stock market as
American Depository Receipts with the highest market capitalization determined
annually. The index does not reflect reinvestment of dividends or the deduction
of expenses associated with a mutual fund, such as investment management and
accounting fees. The Fund's performance reflects the deduction of these value-
added services.
2
<PAGE>
ProFund VP Small Cap
Launched on October 19, 1999, the investment objective of the ProFund VP
Small Cap is to match the performance of the Russell 2000 Index on a daily
basis. The Russell 2000 Index is an unmanaged index representing the
performance of 2,000 domestically traded common stocks of small companies as
determined by market capitalization.
Since its inception, the Fund's performance has tracked its benchmark with a
statistical correlation of .96. As a result, for the same period, it has
produced a return of 19.97%, versus the Russell 2000 Index, which produced a
return of 22.83%.
[GRAPH APPEARS HERE]
* Past performance is not predictive of future results. The investment return
and NAV will fluctuate so that the investor's shares, when redeemed, may be
worth more or less than the original cost.
The performance of the ProFund VP Small Cap is measured against the Russell
2000 Index, an unmanaged index consisting of 2,000 small company stocks. The
index does not reflect reinvestment of dividends or the deduction of expenses
associated with a mutual fund, such as investment management and accounting
fees. The Fund's performance reflects the deduction of these value-added
services.
3
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP UltraOTC December 31, 1999
<TABLE>
<S> <C> <C>
Common Stocks (88.8%)
<CAPTION>
Market
Shares Value
------ -----------
<S> <C> <C>
3COM Corp.*................................................. 5,420 $ 254,740
Adaptec, Inc.*.............................................. 2,620 130,673
ADC Telecommunications, Inc.*............................... 5,850 424,491
Adelphia Communications Corp.--Class A*..................... 3,800 249,375
Adobe Systems, Inc. ........................................ 3,670 246,808
Altera Corp.*............................................... 8,820 437,141
Amazon.Com, Inc.*........................................... 7,080 538,964
American Power Conversion Corp.*............................ 7,860 207,308
Amgen, Inc.*................................................ 14,970 899,136
Apollo Group, Inc.--Class A*................................ 2,130 42,733
Apple Computer, Inc.*....................................... 7,040 723,800
Applied Materials, Inc.*.................................... 6,160 780,394
Applied Micro Circuits Corp.*............................... 1,930 245,593
At Home Corp.--Class A*..................................... 8,620 369,583
Atmel Corp.*................................................ 4,630 136,874
Bed Bath & Beyond, Inc.*.................................... 5,840 202,940
Biogen, Inc.*............................................... 5,800 490,100
Biomet, Inc. ............................................... 4,640 185,600
BMC Software, Inc.*......................................... 5,760 460,440
BroadVision, Inc.*.......................................... 2,640 448,965
Chiron Corp.*............................................... 8,000 339,000
Ciena Corp.*................................................ 5,110 293,825
Cintas Corp. ............................................... 4,120 218,875
Cisco Systems, Inc.*........................................ 37,130 3,977,550
Citrix Systems, Inc.*....................................... 3,340 410,820
CMGI, Inc.*................................................. 4,080 1,129,649
CNET, Inc.*................................................. 2,580 146,415
Comcast Corp.--Special Class A.............................. 11,010 553,252
Compuware Corp.*............................................ 6,900 257,025
Comverse Technology, Inc.*.................................. 2,290 331,478
Concord EFS, Inc.*.......................................... 7,240 186,430
Conexant Systems, Inc.*..................................... 6,790 450,686
Costco Wholesale Corp.*..................................... 3,640 332,150
Dell Computer Corp.*........................................ 29,570 1,508,070
Dollar Tree Stores, Inc.*................................... 1,760 85,250
eBay, Inc.*................................................. 3,040 380,570
Echostar Communications Corp.--Class A*..................... 3,510 342,225
Electronic Arts, Inc.*...................................... 1,960 164,640
Ericsson (LM) Telephone--ADR................................ 7,750 509,078
Fiserv, Inc.*............................................... 4,690 179,686
Gemstar International Group Ltd.*........................... 6,000 427,500
Genzyme Corp.*.............................................. 3,290 148,050
Global Crossing Ltd.*....................................... 26,340 1,317,000
I2 Technologies, Inc.*...................................... 2,600 507,000
Immunex Corp.*.............................................. 7,070 772,839
Intel Corp.................................................. 36,860 3,034,038
Intuit, Inc.*............................................... 7,800 467,513
JDS Uniphase Corp.*......................................... 8,820 1,422,775
KLA-Tencor Corp.*........................................... 3,420 380,903
Legato Systems, Inc.*....................................... 2,920 200,933
Level 3 Communications, Inc.*............................... 7,460 610,788
Linear Technology Corp. .................................... 6,440 460,863
Lycos, Inc.*................................................ 3,740 297,564
Maxim Integrated Products, Inc.*............................ 12,040 568,138
MCI Worldcom, Inc.*......................................... 32,144 1,705,667
McLeodUSA, Inc.--Class A*................................... 3,910 230,201
Medimmune, Inc.*............................................ 2,130 353,314
</TABLE>
<TABLE>
<S> <C> <C>
Common Stocks, continued
<CAPTION>
Market
Shares Value
--------- -----------
<S> <C> <C>
Metromedia Fiber Network, Inc.*........................... 6,740 $ 323,099
Microchip Technology, Inc.*............................... 1,330 91,022
Microsoft Corp.*.......................................... 55,930 6,529,827
Miller Herman, Inc. ...................................... 1,820 41,860
Molex, Inc. .............................................. 2,380 134,916
Network Appliance, Inc.*.................................. 4,860 403,684
Network Associates, Inc.*................................. 4,380 116,891
Network Solutions, Inc.*.................................. 1,150 250,197
Nextel Communications, Inc.--Class A*..................... 14,110 1,455,093
NEXTLINK Communications, Inc.--Class A*................... 2,600 215,963
Northwest Airlines Corp.--Class A*........................ 1,990 44,278
Novell, Inc.*............................................. 12,510 498,054
NTL, Inc.*................................................ 3,440 429,140
Oracle Corp.*............................................. 18,680 2,093,327
PACCAR, Inc. ............................................. 2,770 122,746
PacifiCare Health Systems, Inc.*.......................... 1,140 60,420
PanAmSat Corp.*........................................... 6,260 371,688
Parametric Technology Corp.*.............................. 11,360 307,430
Paychex, Inc. ............................................ 7,280 291,199
Peoplesoft, Inc.*......................................... 10,710 228,257
PMC-Sierra, Inc.*......................................... 2,360 378,338
QLogic Corp.*............................................. 1,130 180,659
Qualcomm, Inc.*........................................... 25,040 4,413,299
Quintiles Transnational Corp.*............................ 4,990 93,251
RealNetworks, Inc.*....................................... 2,190 265,401
RF Micro Devices, Inc.*................................... 2,770 189,572
Sanmina Corp.*............................................ 1,950 194,756
SDL, Inc.*................................................ 1,130 246,340
Siebel Systems, Inc.*..................................... 6,940 582,960
Sigma-Aldrich Corp. ...................................... 3,290 98,906
Smurfit-Stone Container Corp.*............................ 6,710 164,395
Staples, Inc.*............................................ 9,630 199,823
Starbucks Corp.*.......................................... 7,790 188,908
Sun Microsystems, Inc.*................................... 21,520 1,666,455
Synopsys, Inc.*........................................... 2,590 172,883
Tellabs, Inc.*............................................ 7,220 463,434
USA Networks, Inc.*....................................... 4,830 266,858
Veritas Software Corp.*................................... 8,294 1,187,079
VISX, Inc.*............................................... 2,300 119,025
Vitesse Semiconductor Corp.*.............................. 5,230 274,248
Voicestream Wireless Corp.*............................... 3,190 453,977
Xilinx, Inc.*............................................. 13,320 605,644
Yahoo!, Inc.*............................................. 3,980 1,722,095
-----------
TOTAL COMMON STOCKS
(Cost $53,245,757)....................................... 60,314,815
-----------
Options Purchased (9.9%)
<CAPTION>
Contracts
---------
<S> <C> <C>
NASDAQ Call Option expiring
January 2000 @ 1500...................................... 30 6,726,000
NASDAQ Put Option expiring
January 2000 @ 1500...................................... 110 1,650
-----------
TOTAL OPTIONS PURCHASED
(Cost $5,238,850)........................................ 6,727,650
-----------
</TABLE>
See accompanying notes to the financial statements.
4
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP UltraOTC December 31, 1999
<TABLE>
<S> <C> <C>
U.S. Treasury Bills (10.1%)
<CAPTION>
Principal
Amount Market Value
---------- ---------------
<S> <C> <C>
U.S. Treasury Bill,
3.87%, 01/13/00................................... $3,000,000 $ 2,995,808
U.S. Treasury Bill,
4.91%, 03/09/00................................... 2,200,000 2,179,470
U.S. Treasury Bill,
4.91%, 03/23/00................................... 617,000 610,090
U.S. Treasury Bill,
5.13%, 04/13/00................................... 1,072,000 1,056,331
-----------
TOTAL U.S. TREASURY BILLS
(Cost $6,839,233)................................. 6,841,699
-----------
TOTAL INVESTMENTS
(Cost $65,323,840)(a) (108.8%).................... 73,884,164
Liabilities in excess of other assets (-8.8%)...... (5,986,577)
-----------
TOTAL NET ASSETS (100.0%).......................... $67,897,587
===========
- -----
Percentages indicated are based on net assets of $67,897,587.
Futures Contracts Purchased
<CAPTION>
Contracts Unrealized Gain
---------- ---------------
<S> <C> <C>
NASDAQ Future Contract expiring March 2000
(Underlying face amount at value $75,962,600)..... 203 $ 7,401,820
===========
</TABLE>
- -----
* Non-income producing
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes due to differences in the timing of
recognition of certain gains and losses by $167,346 for wash sales and
$1,488,800 for options. Cost for federal income tax purposes differs from
market value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $7,591,077
Unrealized depreciation.... (686,899)
----------
Net unrealized apprecia-
tion...................... $6,904,178
==========
</TABLE>
ADR--American Depositary Receipt
The ProFund VP UltraOTC's investment concentration based on net assets, by
industry, as of December 31, 1999, was as follows:
<TABLE>
<S> <C>
Airlines.................................................................. 0.1%
Automotive................................................................ 0.2%
Biotechnology............................................................. 3.9%
Business Services......................................................... 1.2%
Chemicals................................................................. 0.1%
Computer Software......................................................... 26.0%
Computers................................................................. 14.8%
Containers & Packaging.................................................... 0.2%
Electrical & Electronic................................................... 13.0%
Health Care............................................................... 0.5%
Home Furnishings.......................................................... 0.6%
Media..................................................................... 1.6%
Office Equipment & Services............................................... 0.1%
Pharmaceuticals........................................................... 0.5%
Retail & Wholesale........................................................ 2.9%
Telecommunications........................................................ 22.8%
Textiles & Apparel........................................................ 0.3%
Other..................................................................... 11.2%
</TABLE>
See accompanying notes to the financial statements.
5
<PAGE>
PROFUNDS VP
ProFund VP UltraOTC
Statement of Assets and Liabilities
December 31, 1999
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $65,323,840).......................... $73,884,164
Variation margin on futures contracts............................. 150,080
Dividends and interest receivable................................. 3,997
Deferred offering costs........................................... 34,044
-----------
Total Assets...................................................... 74,072,285
Liabilities:
Payable to custodian.............................................. 46,179
Payable for investments purchased................................. 6,031,842
Advisory fees payable............................................. 47,944
Administrative servicing fees payable............................. 18,166
Distribution fees payable......................................... 18,166
Other accrued expenses............................................ 12,401
-----------
Total Liabilities................................................. 6,174,698
-----------
Net Assets......................................................... $67,897,587
===========
Net Assets consist of:
Capital........................................................... $38,832,439
Accumulated undistributed net realized gains on investments and
futures contracts................................................ 13,103,004
Net unrealized appreciation on investments and futures contracts.. 15,962,144
-----------
Total Net Assets................................................... $67,897,587
===========
Net Assets........................................................ $67,897,587
Shares of Beneficial Interest Outstanding......................... 957,216
Net Asset Value (offering and redemption price per share)......... $ 70.93
===========
</TABLE>
Statement of Operations
For the period October 19, 1999(a) through December 31, 1999
<TABLE>
<S> <C>
Investment Income:
Interest......................................................... $ 59,568
Dividends........................................................ 4,815
-----------
Total Income..................................................... 64,383
Expenses:
Advisory fees.................................................... 55,095
Management servicing fees........................................ 10,900
Administrative servicing fees.................................... 18,166
Distribution fees................................................ 18,166
Administration fees.............................................. 3,633
Audit fees....................................................... 16,988
Offering costs................................................... 8,657
Fund accounting fees............................................. 2,857
Custody fees..................................................... 688
Other fees....................................................... 9,360
-----------
Total expenses before waivers.................................... 144,510
Less expenses waived............................................. (23,291)
-----------
Net expenses..................................................... 121,219
-----------
Net Investment Loss............................................... (56,836)
-----------
Realized and Unrealized Gains on Investments:
Net realized gains on investments and futures contracts.......... 13,151,189
Net change in unrealized appreciation on investments and futures
contracts....................................................... 15,962,144
-----------
Net realized and unrealized gains on investments and futures
contracts....................................................... 29,113,333
-----------
Increase in Net Assets Resulting from Operations.................. $29,056,497
===========
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
6
<PAGE>
PROFUNDS VP
ProFund VP UltraOTC
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
October 19, 1999(a) through
December 31, 1999
---------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment loss............................... $ (56,836)
Net realized gains on investments and futures
contracts........................................ 13,151,189
Net change in unrealized appreciation on
investments and futures contracts................ 15,962,144
------------
Net increase in net assets resulting from
operations....................................... 29,056,497
Capital Share Transactions:
Proceeds from shares issued....................... 79,824,900
Cost of shares redeemed........................... (40,983,810)
------------
Net increase in net assets resulting from capital
share transactions............................... 38,841,090
------------
Total increase in net assets...................... 67,897,587
Net Assets:
Beginning of period............................... --
------------
End of period..................................... $ 67,897,587
============
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
7
<PAGE>
PROFUNDS VP
ProFund VP UltraOTC
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
For the period from
October 19, 1999 (a) through
December 31, 1999
----------------------------
<S> <C>
Net Asset Value, Beginning of Period.............. $ 30.00
-----------
Net investment loss.............................. (0.06)
Net realized and unrealized gain on investments
and futures contracts........................... 40.99
-----------
Total income from investment operations.......... 40.93
-----------
Net Asset Value, End of Period.................... $ 70.93
===========
Total Return...................................... 136.43 %(b)
Ratios/Supplemental Data:
Net assets, end of year........................... $67,897,587
Ratio of expenses to average net assets........... 1.65 %(c)
Ratio of net investment loss to average net
assets........................................... (0.77)%(c)
Ratio of expenses to average net assets*.......... 1.97 %(c)
Portfolio turnover................................ 101 %
</TABLE>
- -----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reduction had not occurred, the ratio would have been as indicated.
(a) Commencement of operations.
(b) Not annualized.
(c) Annualized.
8
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Europe 30 December 31, 1999
Common Stocks (101.1%)
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
ABN Amro Holding NV--ADR..................................... 1,865 $ 47,208
Aegon NV--ADR................................................ 758 72,389
AstraZeneca PLC--ADR......................................... 2,266 94,606
Axa--ADR..................................................... 891 63,261
Banco Bilbao Vizcaya--ADR.................................... 2,591 36,760
Banco Santander Central Hispano SA--ADR...................... 4,700 54,931
Barclays PLC--ADR............................................ 486 55,951
BP Amoco PLC--ADR............................................ 4,077 241,816
British Telecommunications PLC--ADR.......................... 810 192,780
Deutsche Telekom--ADR........................................ 3,917 278,107
Diageo PLC--ADR.............................................. 1,082 34,624
Elf Aquitaine--ADR........................................... 699 53,561
ENI SpA--ADR................................................. 1,026 56,558
Ericsson (LM) Telephone--ADR................................. 2,268 148,979
France Telecom SA--ADR....................................... 1,271 169,679
Glaxo Wellcome PLC--ADR...................................... 2,295 128,232
HSBC Holdings PLC--ADR....................................... 2,081 148,531
ING Groep NV--ADR............................................ 1,239 75,579
Koninklijke Philips Electronics NV--ADR...................... 405 54,675
LVMH--ADR.................................................... 621 56,511
National Westminster Bank PLC--ADR........................... 351 45,367
Nokia OYJ--ADR............................................... 1,566 297,539
Royal Dutch Petroleum Co.--ADR............................... 2,729 164,934
Shell Transport & Trading Co.--ADR........................... 2,106 103,721
SmithKline Beecham PLC--ADR.................................. 1,403 90,406
Telecom Italia SpA--ADR...................................... 729 102,060
Telefonica SA--ADR*.......................................... 1,355 106,791
Total Fina SA--ADR........................................... 726 50,276
Unilever NV--ADR............................................. 729 39,685
Veba AG--ADR................................................. 648 32,441
Vodafone AirTouch PLC--ADR................................... 4,025 199,238
----------
TOTAL COMMON STOCKS
(Cost $3,085,242)........................................... 3,297,196
----------
</TABLE>
U.S. Treasury Bills (6.0%)
<TABLE>
<CAPTION>
Principal Market
Amount Value
--------- ----------
<S> <C> <C>
U.S. Treasury Bill, 4.91%, 03/23/00....................... $ 41,000 $ 40,541
U.S. Treasury Bill, 4.86%, 03/30/00....................... 157,000 155,050
----------
TOTAL U.S. TREASURY BILLS
(Cost $195,652).......................................... 195,591
----------
TOTAL INVESTMENTS
(Cost $3,280,894)(a) (107.1%)............................ 3,492,787
Liabilities in excess of other assets (-7.1%)............. (230,656)
----------
TOTAL NET ASSETS (100.0%)................................. $3,262,131
==========
</TABLE>
- -----
Percentages indicated are based on net assets of $3,262,131.
Futures Contracts Purchased
<TABLE>
<CAPTION>
Contracts Unrealized Gain
--------- ---------------
<S> <C> <C>
S&P 500 Future Contract expiring March 2000
(Underlying face amount at value $222,810)......... 3 $6,245
======
</TABLE>
- -----
* Non-income producing
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes due to differences in the timing of
recognition of certain gains and losses by $4,331. Cost for federal
income tax purposes differs from market value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................... $215,006
Unrealized depreciation........................................... (7,444)
--------
Net unrealized appreciation....................................... $207,562
========
</TABLE>
ADR--American Depositary Receipt
The ProFund VP Europe 30's investment concentration based on net assets, by
industry, as of December 31, 1999, was as follows:
<TABLE>
<S> <C>
Banking.................................................................. 14.2 %
Electrical & Electronic.................................................. 1.7 %
Energy & Utilities....................................................... 20.6 %
Food & Beverage.......................................................... 4.0 %
Insurance................................................................ 4.2 %
Machinery & Equipment.................................................... 1.0 %
Pharmaceuticals.......................................................... 9.6 %
Telecommunications....................................................... 45.8 %
Other.................................................................... (1.1)%
</TABLE>
See accompanying notes to the financial statements.
9
<PAGE>
PROFUNDS VP
ProFund VP Europe 30
Statement of Assets and Liabilities
December 31, 1999
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $3,280,894)............................ $3,492,787
Cash............................................................... 13,993
Variation margin on futures contracts.............................. 1,035
Receivable for capital shares issued............................... 954
Dividends and interest receivable.................................. 397
Deferred offering costs............................................ 1,046
----------
Total Assets....................................................... 3,510,212
Liabilities:
Payable for investments purchased.................................. 244,656
Advisory fees payable.............................................. 1,128
Administrative servicing fees payable.............................. 774
Distribution fees payable.......................................... 774
Other accrued expenses............................................. 749
----------
Total Liabilities.................................................. 248,081
----------
Net Assets.......................................................... $3,262,131
==========
Net Assets consist of:
Capital............................................................ $2,943,934
Accumulated undistributed net realized gains on investments and
futures contracts................................................. 100,059
Net unrealized appreciation on investments and futures contracts... 218,138
----------
Total Net Assets.................................................... $3,262,131
==========
Net Assets......................................................... $3,262,131
Shares of Beneficial Interest Outstanding.......................... 88,608
Net Asset Value (offering and redemption price per share).......... $ 36.82
==========
</TABLE>
Statement of Operations
For the period October 19, 1999(a) through December 31, 1999
<TABLE>
<S> <C>
Investment Income:
Dividends (net of foreign taxes of $155)............................ $ 1,443
Interest............................................................ 984
--------
Total Income........................................................ 2,427
Expenses:
Advisory fees....................................................... 2,323
Management servicing fees........................................... 465
Administrative servicing fees....................................... 774
Distribution fees................................................... 774
Administration fees................................................. 155
Audit fees.......................................................... 1,957
Fund accounting fees................................................ 328
Offering costs...................................................... 266
Custody fees........................................................ 29
Other fees.......................................................... 366
--------
Total expenses before waivers....................................... 7,437
Less expenses waived................................................ (1,908)
--------
Net expenses........................................................ 5,529
--------
Net Investment Loss.................................................. (3,102)
--------
Realized and Unrealized Gains on Investments:
Net realized gains on investments and futures contracts............. 102,963
Net change in unrealized appreciation on investments and futures
contracts.......................................................... 218,138
--------
Net realized and unrealized gains on investments and futures
contracts.......................................................... 321,101
--------
Increase In Net Assets Resulting from Operations..................... $317,999
========
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
10
<PAGE>
PROFUNDS VP
ProFund VP Europe 30
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
October 19, 1999(a) through
December 31, 1999
---------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment loss............................... $ (3,102)
Net realized gains on investments and futures
contracts........................................ 102,963
Net change in unrealized appreciation on
investments and futures contracts................ 218,138
-----------
Net increase in net assets resulting from
operations....................................... 317,999
Capital Share Transactions:
Proceeds from shares issued....................... 4,413,241
Cost of shares redeemed........................... (1,469,109)
-----------
Net increase in net assets resulting from capital
share transactions............................... 2,944,132
-----------
Total increase in net assets...................... 3,262,131
Net Assets:
Beginning of period............................... --
-----------
End of period..................................... $ 3,262,131
===========
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
11
<PAGE>
PROFUNDS VP
ProFund VP Europe 30
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
For the period from
October 19, 1999(a) through
December 31, 1999
---------------------------
<S> <C>
Net Asset Value, Beginning of Period............... $ 30.00
----------
Net investment loss............................... (0.04)
Net realized and unrealized gain on investments
and futures contracts............................ 6.86
----------
Total income from investment operations........... 6.82
----------
Net Asset Value, End of Period..................... $ 36.82
==========
Total Return....................................... 22.73 %(b)
Ratios/Supplemental Data:
Net assets, end of period.......................... $3,262,131
Ratio of expenses to average net assets............ 1.78 %(c)
Ratio of net investment loss to average net
assets............................................ (1.00)%(c)
Ratio of expenses to average net assets*........... 2.39 %(c)
Portfolio turnover................................. 100 %
</TABLE>
- -----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Commencement of operations.
(b) Not annualized.
(c) Annualized.
12
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks (82.6%)
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
AAR Corp...................................................... 497 $ 8,915
Aaron Rents, Inc.............................................. 511 9,070
ABM Industries, Inc. ......................................... 392 7,987
ACE Ltd....................................................... 341 5,695
ACTV, Inc.*................................................... 497 22,707
Adaptive Broadband Corp.*..................................... 231 17,051
Adtran, Inc.*................................................. 252 12,962
Advanced Digital Information Corp.*........................... 266 12,934
Advanced Fibre Communications, Inc.*.......................... 791 35,348
Advent Software, Inc.*........................................ 175 11,277
Aerial Communications, Inc.*.................................. 224 13,636
Affiliated Managers Group, Inc.*.............................. 455 18,398
Affymetrix, Inc.*............................................. 168 28,508
AGCO Corp. ................................................... 819 11,005
AGL Resources, Inc............................................ 679 11,543
Agribrands International, Inc.*............................... 161 7,406
Air Express International Corp. .............................. 448 14,476
Airborne Freight Corp. ....................................... 574 12,628
Airgas, Inc.*................................................. 903 8,579
Alaska AirGroup, Inc.*........................................ 259 9,097
Alexander & Baldwin, Inc...................................... 399 9,102
Alexandria Real Estate Equities, Inc.......................... 294 9,353
Alfa Corp..................................................... 637 10,391
Alkermes, Inc.*............................................... 294 14,443
Allied Capital Corp........................................... 546 9,999
Alpha Industries, Inc.*....................................... 203 11,634
Alpharma, Inc................................................. 238 7,319
Amcore Financial, Inc. ....................................... 350 8,400
America West Holdings Corp.--Class B*......................... 476 9,877
American Italian Pasta Co.*................................... 378 11,624
American Management Systems, Inc.*............................ 511 16,032
American States Water Co...................................... 301 10,836
AmeriCredit Corp.*............................................ 707 13,080
Amerisource Health Corp.--Class A*............................ 735 11,163
Ames Department Stores, Inc.*................................. 343 9,883
Ametek, Inc................................................... 462 8,807
Amkor Technology, Inc.*....................................... 861 24,323
Amli Residential Properties Trust............................. 420 8,479
Amphenol Corp.--Class A*...................................... 203 13,512
Anchor Bancorp Wisconsin, Inc. ............................... 539 8,152
Ancor Communications, Inc.*................................... 287 19,480
Andrew Corp.*................................................. 1,022 19,354
AnnTaylor Stores Corp.*....................................... 259 8,919
Antec Corp.*.................................................. 280 10,220
Applebee's International, Inc................................. 336 9,912
Applied Power, Inc.--Class A.................................. 427 15,692
Apria Healthcare Group, Inc.*................................. 672 12,054
AptarGroup, Inc............................................... 336 8,442
Area Bancshares Corp. ........................................ 308 7,546
Artesyn Technologies, Inc.*................................... 476 9,996
Arvin Industries, Inc......................................... 413 11,718
Ascent Entertainment Group, Inc.*............................. 546 6,927
Aspect Communications Corp.*.................................. 602 23,553
Aspect Development, Inc.*..................................... 308 21,098
ATMI, Inc.*................................................... 294 9,720
Atmos Energy Corp............................................. 420 8,584
Avant! Corp.*................................................. 574 8,610
Avis Rent A Car, Inc.*........................................ 441 11,273
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Avista Corp................................................... 504 $ 7,781
Aware, Inc.*.................................................. 238 8,657
Baldwin & Lyons, Inc.--Class B................................ 378 8,363
Bally Total Fitness Holding Corp.*............................ 343 9,154
BancorpSouth, Inc. ........................................... 462 7,536
Bank United Corp.............................................. 266 7,249
Banknorth Group, Inc.......................................... 273 7,303
Banta Corp.................................................... 364 8,213
Barnes Group, Inc. ........................................... 378 6,166
Barnesandnoble.com, Inc.*..................................... 476 6,753
Barrett Resources Corp.*...................................... 336 9,891
Battle Mountain Gold Co.*..................................... 2,632 5,429
Bedford Property Investors, Inc. ............................. 490 8,361
Bethlehem Steel Corp.*........................................ 1,869 15,653
Beverly Enterprises, Inc.*.................................... 2,030 8,881
BindView Development Corp.*................................... 238 11,826
Bio-Technology General Corp.*................................. 847 12,917
Black BOX Corp.*.............................................. 238 15,946
Black Hills Corp.............................................. 385 8,542
Block Drug Co.--Class A....................................... 238 7,380
Borders Group, Inc.*.......................................... 994 15,965
Boyds Collection Ltd.*........................................ 658 4,565
Bradley Real Estate, Inc...................................... 539 9,399
Brandywine Realty Trust....................................... 532 8,712
BroadVision, Inc.*............................................ 525 89,282
Brown (Tom) Inc.*............................................. 574 7,677
Brown Shoe Company, Inc. ..................................... 462 6,526
BT Financial Corp............................................. 500 10,996
Buffets, Inc.*................................................ 868 8,680
Burnham Pacific Properties, Inc............................... 945 8,859
Burr-Brown Corp.*............................................. 408 14,739
C-Cube Microsystems, Inc.*.................................... 441 27,451
C.H. Robinson Worldwide, Inc. ................................ 441 17,529
Cabot Industrial Trust........................................ 595 10,933
Cabot Oil & Gas Corp.......................................... 511 8,208
California Water Service Group................................ 357 10,822
Callaway Golf Co. ............................................ 917 16,219
Cambrex Corp.................................................. 336 11,571
Cambridge Technology Partners, Inc.*.......................... 798 20,948
Camden Property Trust......................................... 329 9,006
Capital Automotive Real Estate Investment Trust............... 903 11,005
Capitol Federal Financial..................................... 931 9,077
Caprock Communications Corp.*................................. 378 12,261
Caraustar Industries, Inc..................................... 343 8,232
Caremark Rx, Inc.*............................................ 2,513 12,722
Carolina First Corp........................................... 448 8,176
Carpenter Technology.......................................... 364 9,987
Casey's General Stores, Inc. ................................. 749 7,818
Catalytica, Inc.*............................................. 756 10,252
Cathay Bancorp, Inc. ......................................... 217 8,897
CBRL Group, Inc............................................... 833 8,083
CEC Entertainment, Inc.*...................................... 329 9,335
Celgene Corp.*................................................ 294 20,579
Centerpoint Properties Corp. ................................. 308 11,050
Century Business Services, Inc.*.............................. 826 6,969
Cephalon, Inc.*............................................... 518 17,903
Cerner Corp.*................................................. 574 11,301
</TABLE>
See accompanying notes to the financial statements.
13
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
CFW Communications Co. ....................................... 427 $ 14,838
Charming Shoppes, Inc.*....................................... 1,624 10,759
Chelsea GCA Realty, Inc. ..................................... 259 7,705
Chemed Corp. ................................................. 371 10,620
ChemFirst, Inc. .............................................. 315 6,891
Chemical Financial Corp. ..................................... 280 8,925
Chesapeake Corp. ............................................. 280 8,540
Chicago Title Corp. .......................................... 120 5,550
Choice Hotels International, Inc.*............................ 672 11,508
Choicepoint, Inc.*............................................ 273 11,295
Church & Dwight, Inc. ........................................ 399 10,648
Ciber, Inc.*.................................................. 630 17,325
Cirrus Logic, Inc.*........................................... 917 12,208
Citadel Communications Corp.*................................. 231 14,986
Citizens Banking Corp., Michigan.............................. 504 11,276
City Holding Co. ............................................. 497 6,958
CK Witco Corp. ............................................... 1,204 16,103
Clarcor, Inc. ................................................ 518 9,324
Clarify, Inc.*................................................ 224 28,224
Cleveland-Cliffs, Inc. ....................................... 350 10,894
CMP Group, Inc. .............................................. 322 8,875
Cognex Corp.*................................................. 441 17,199
Coherent, Inc.*............................................... 469 12,546
Colonial Properties Trust..................................... 364 8,440
Commerce Bancorp, Inc., New Jersey............................ 203 8,209
Commercial Metals Co. ........................................ 266 9,027
Commercial NET Lease Realty................................... 952 9,461
Commnet Cellular, Inc.*....................................... 336 10,794
Commonwealth Telephone Enterprises, Inc.*..................... 147 7,773
Commscope, Inc.*.............................................. 448 18,060
Community First Bankshares, Inc. ............................. 546 8,600
CompUSA, Inc.*................................................ 1,582 8,108
Computer Sciences Corp.*...................................... 95 9,006
Concentric Network Corp.*..................................... 490 15,098
Concord Communications, Inc.*................................. 217 9,629
Corn Products International, Inc. ............................ 434 14,213
Cornerstone Realty Income Trust, Inc. ........................ 931 9,077
Corus Bankshares, Inc. ....................................... 301 7,224
Cost Plus, Inc.*.............................................. 273 9,726
Covance, Inc.*................................................ 945 10,218
Crawford & Co.--Class B....................................... 644 8,775
Credence Systems Corp.*....................................... 266 23,009
Cree Research, Inc.*.......................................... 280 23,905
Cross Timbers Oil Co. ........................................ 693 6,280
CT Communications, Inc. ...................................... 175 9,800
CTG Resources, Inc. .......................................... 231 8,027
CTS Corp. .................................................... 280 21,105
Cumulus Media, Inc.*.......................................... 273 13,855
Cuno, Inc.*................................................... 385 7,971
Cybex Computer Products Corp.*................................ 224 9,072
Cymer, Inc.*.................................................. 301 13,846
Cypress Semiconductor Corp.*.................................. 1,036 33,540
Cytec Industries, Inc.*....................................... 462 10,684
Cytyc Corp.*.................................................. 245 14,960
D.R. Horton, Inc. ............................................ 693 9,572
Dain Rauscher Corp. .......................................... 182 8,463
Dal-Tile International, Inc.*................................. 861 8,718
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Dallas Semiconductor Corp. ................................... 245 $ 15,787
Datascope Corp. .............................................. 210 8,400
Delta & Pineland Co. ......................................... 469 8,149
Dendrite International, Inc.*................................. 378 12,805
Developers Diversified Realty Corp. .......................... 693 8,922
Digital Microwave Corp.*...................................... 812 19,031
DII Group, Inc.*.............................................. 357 25,335
Dionex Corp.*................................................. 280 11,533
Dollar Thrifty Automotive Group, Inc.*........................ 469 11,227
Donaldson Co., Inc. .......................................... 406 9,769
Doral Financial Corp. ........................................ 602 7,412
Dress Barn, Inc.*............................................. 420 6,983
DSP Group, Inc.*.............................................. 182 16,926
Duane Reade, Inc.*............................................ 287 7,910
Dura Automotive Systems, Inc.*................................ 427 7,446
Dura Pharmaceuticals, Inc.*................................... 658 9,171
Dycom Industries, Inc.*....................................... 301 13,262
Earthgrains Co. .............................................. 497 8,014
East-West Bancorp, Inc. ...................................... 700 8,006
Eastern Enterprises........................................... 217 12,463
Eastgroup Properties, Inc. ................................... 504 9,324
Eaton Vance Corp. ............................................ 329 12,502
El Paso Electric Co.*......................................... 1,246 12,226
Elcor Corp. .................................................. 336 10,122
Electro Scientific Industries, Inc.*.......................... 168 12,264
Electroglas, Inc.*............................................ 336 8,526
Emmis Communications Corp.*................................... 189 23,557
Empire District Electric Co................................... 434 9,819
Emulex Corp.*................................................. 308 34,649
Energen Corp. ................................................ 560 10,115
Enhance Financial Services Group, Inc. ....................... 455 7,394
Entercom Communications Corp.*................................ 245 16,170
Enzo Biochem, Inc.*........................................... 336 15,141
Enzon, Inc.*.................................................. 420 18,218
Equitable Resources, Inc. .................................... 224 7,476
Etec Systems, Inc.*........................................... 259 11,623
Ethan Allen Interiors, Inc.................................... 413 13,242
Extended Stay America, Inc.*.................................. 1,246 9,501
F&M National Corp. ........................................... 280 7,718
F.Y.I., Inc.*................................................. 266 9,044
FactSet Research Systems, Inc. ............................... 140 11,148
Fair, Isaac & Company, Inc. .................................. 231 12,243
Fairfield Communities, Inc.*.................................. 609 6,547
Federal Realty Investment Trust............................... 504 9,482
Federal Signal Corp. ......................................... 581 9,332
Ferro Corp. .................................................. 399 8,778
Filenet Corp.*................................................ 525 13,388
First American Financial Corp. ............................... 812 10,099
First Bancorp, Puerto Rico.................................... 378 7,844
First Charter Corp. .......................................... 427 6,352
First Financial Bankshares, Inc. ............................. 287 8,825
First Health Group Corp.*..................................... 560 15,050
First Merchants Corp. ........................................ 406 10,658
First Sentinel Bancorp, Inc. ................................. 1,008 7,875
First United Bancshares, Inc. ................................ 532 7,116
FirstFed Financial Corp.*..................................... 567 7,973
Fisher Scientific International, Inc.*........................ 525 18,966
Fleetwood Enterprises, Inc. .................................. 483 9,962
</TABLE>
See accompanying notes to the financial statements.
14
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Fleming Companies, Inc. ...................................... 714 $ 7,319
Florida East Coast Industries, Inc. .......................... 301 12,567
Flowserve Corp. .............................................. 567 9,639
Footstar, Inc.*............................................... 294 8,967
Forest City Enterprises--Class A.............................. 308 8,624
Forest Oil Corp.*............................................. 532 7,016
Foster Wheeler Corp. ......................................... 784 6,958
Franklin Electric Co., Inc. .................................. 119 8,352
Frontier Financial Corp. ..................................... 350 7,000
Furniture Brands International, Inc.*......................... 574 12,628
G & K Services, Inc. ......................................... 294 9,518
Genrad, Inc.*................................................. 518 8,353
Georgia Gulf Corp. ........................................... 399 12,144
Gerber Scientific, Inc. ...................................... 413 9,060
Getty Images, Inc.*........................................... 399 19,501
Gilead Sciences, Inc.*........................................ 434 23,489
Glenborough Realty Trust, Inc. ............................... 679 9,082
Glimcher Realty Trust......................................... 644 8,292
Global Industries Technologies, Inc.*......................... 332 4,275
Go2net, Inc.*................................................. 217 18,879
Great Atlantic & Pacific Tea Co. ............................. 280 7,805
Great Plains Software, Inc.*.................................. 161 12,035
Greater Bay Bancorp........................................... 266 11,404
Greif Brothers Corp.--Class A*................................ 392 11,662
Gtech Holdings Corp.*......................................... 504 11,088
Hadco Corp.*.................................................. 238 12,138
Haemonetics Corp.*............................................ 497 11,835
Hancock Holding Co............................................ 231 8,951
Handleman Co.*................................................ 511 6,835
Hanna (M.A.) Co............................................... 798 8,728
Hanover Compressor Co.*....................................... 357 13,476
Harbinger Corp.*.............................................. 553 17,592
Harland (John H.) Co.......................................... 441 8,076
Harman International Industries, Inc. ........................ 217 12,179
Harmonic, Inc.*............................................... 266 25,253
Harsco Corp. ................................................. 371 11,779
Hayes Lemmerz International, Inc.*............................ 343 5,981
Health Care Property Investors, Inc. ......................... 308 7,354
Health Care REIT, Inc. ....................................... 448 6,776
Healthcare Realty Trust, Inc. ................................ 574 8,969
Helix Technology Corp. ....................................... 273 12,234
Helmerich & Payne, Inc. ...................................... 497 10,841
Henry (Jack) & Associates, Inc. .............................. 245 13,153
HNC Software, Inc.*........................................... 301 31,830
Home Properties of New York, Inc. ............................ 371 10,179
Hooper Holmes, Inc. .......................................... 357 9,193
Horace Mann Educators Corp. .................................. 434 8,517
Hospitality Properties Trust ................................. 434 8,273
HSB Group, Inc. .............................................. 266 8,994
Hudson United Bancorp......................................... 315 8,052
Human Genome Sciences, Inc.*.................................. 245 37,393
Hussmann International, Inc................................... 630 9,489
Hutchinson Technology, Inc.*.................................. 392 8,330
Hyperion Solutions Corp.*..................................... 448 19,488
ICG Communications, Inc.*..................................... 665 12,469
IDEC Pharmaceuticals Corp.*................................... 364 35,763
Idex Corp. ................................................... 357 10,844
IDEXX Laboratories, Inc.*..................................... 658 10,610
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Imation Corp.*................................................ 476 $ 15,976
ImClone Systems, Inc.*........................................ 329 13,037
Imperial Bancorp*............................................. 455 10,977
Imperial Credit Commercial Mortgage Investment Corp. ......... 889 10,112
Independence Community Bank Corp. ............................ 987 12,337
IndyMac Mortgage Holdings, Inc. .............................. 875 11,155
InFocus Systems, Inc.*........................................ 385 8,927
Informatica Corp.*............................................ 112 11,914
Information Resources, Inc.*.................................. 777 7,187
Informix Corp.*............................................... 2,310 26,275
Inhale Therapeutic Systems, Inc.*............................. 287 12,215
InnKeepers USA Trust.......................................... 1,281 10,488
Insight Enterprises, Inc.*.................................... 273 11,091
Instituform Technologies, Inc.--Class A*...................... 336 9,492
Integrated Device Technology, Inc.*........................... 861 24,969
Interim Services, Inc.*....................................... 763 18,883
Intermedia Communications, Inc.*.............................. 567 22,007
International Multifoods Corp................................. 420 5,565
International Rectifier Corp.*................................ 623 16,198
InterWest Bancorp, Inc. ...................................... 434 8,355
Invacare Corp. ............................................... 392 7,865
Investors Financial Services Corp. ........................... 259 11,913
Iomega Corp.*................................................. 3,500 11,813
Ionics, Inc.*................................................. 301 8,466
Iron Mountain, Inc.*.......................................... 371 14,585
ISIS Pharmaceuticals, Inc.*................................... 686 4,288
ISS Group, Inc.*.............................................. 294 20,911
ITC Deltacom, Inc.*........................................... 518 14,310
Jack in the Box, Inc.*........................................ 539 11,150
Jacobs Engineering Group, Inc.*............................... 245 7,963
JDN Realty Corp. ............................................. 518 8,353
JLG Industries, Inc. ......................................... 602 9,557
Jones Lang LaSalle, Inc.*..................................... 574 6,816
Jones Pharma, Inc. ........................................... 448 19,459
Jostens, Inc. ................................................ 462 11,233
Journal Register Co.*......................................... 560 8,645
Kaufman & Broad Home Corp. ................................... 532 12,868
Kaydon Corp. ................................................. 406 10,886
Kellwood Co. ................................................. 448 8,708
Kelly Services, Inc.--Class A................................. 308 7,739
KEMET Corp.*.................................................. 441 19,873
Kennametal, Inc............................................... 357 12,004
Kent Electronics Corp.*....................................... 427 9,714
Key Energy Group*............................................. 1,652 8,570
Kilroy Realty Corp. .......................................... 553 12,165
Kimball International, Inc.--Class B.......................... 532 8,778
Kirby Corp.*.................................................. 420 8,610
Koger Equity, Inc. ........................................... 588 9,923
Korn/Ferry International*..................................... 371 13,495
Kronos, Inc.*................................................. 196 11,760
Kulicke & Soffa Industries, Inc.*............................. 329 14,003
La-Z-Boy, Inc. ............................................... 609 10,239
Laclede Gas Co. .............................................. 497 10,748
Lam Research Corp.*........................................... 371 41,389
Lance, Inc. .................................................. 609 6,090
LandAmerica Financial Group, Inc. ............................ 406 7,460
Lands' End, Inc.*............................................. 147 5,108
</TABLE>
See accompanying notes to the financial statements.
15
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Landstar System, Inc.*........................................ 182 $ 7,792
Lason, Inc.*.................................................. 259 2,849
Lattice Semiconductor Corp.*.................................. 462 21,772
Leap Wireless International, Inc.*............................ 266 20,881
Lee Enterprises, Inc. ........................................ 399 12,743
Lennar Corp. ................................................. 595 9,669
Leucadia National Corp. ...................................... 420 9,713
Liberty Corp. ................................................ 168 7,088
Ligand Pharmaceuticals, Inc.--Class B*........................ 959 12,347
Lilly Industries, Inc.--Class A............................... 560 7,525
Lincoln Electric Holdings, Inc. .............................. 371 7,652
Littelfuse, Inc.*............................................. 406 9,852
LNR Property Corp. ........................................... 469 9,321
Lone Star Technologies, Inc.*................................. 455 12,683
Longview Fibre Co. ........................................... 805 11,471
LTC Properties, Inc. ......................................... 1,022 8,623
LTV Corp. .................................................... 2,709 11,175
LTX Corp.*.................................................... 525 11,747
Macerich Co. ................................................. 406 8,450
Macrovision Corp.*............................................ 175 12,950
Madison Gas & Electric Co. ................................... 693 13,946
MAF Bancorp, Inc. ............................................ 392 8,208
Manitowoc Co. ................................................ 294 9,996
Marcus Corp. ................................................. 637 8,560
Marine Drilling Co., Inc.*.................................... 658 14,763
Mark IV Industries, Inc. ..................................... 518 9,162
Mascotech, Inc. .............................................. 651 8,260
Mastec, Inc.*................................................. 252 11,214
Mastech Corp.*................................................ 567 14,033
McMoRan Exploration Co.*...................................... 371 7,837
MDU Resources Group, Inc. .................................... 315 6,300
Medical Assurance, Inc.*...................................... 357 7,564
Medicis Pharmaceutical Corp.*................................. 357 15,195
MedQuist, Inc.*............................................... 420 10,841
MemberWorks, Inc.*............................................ 217 7,202
Mentor Graphics Corp.*........................................ 1,169 15,416
Mercury Interactive Corp.*.................................... 371 40,044
Meristar Hospitality Corp. ................................... 861 13,775
Metamor Worldwide, Inc.*...................................... 490 14,271
Methode Electronics, Inc.--Class A............................ 518 16,641
Metris Cos., Inc. ............................................ 413 14,739
Mettler Toledo International, Inc.*........................... 406 15,504
Michaels Stores, Inc.*........................................ 308 8,778
Micrel, Inc.*................................................. 294 16,740
Micromuse, Inc.*.............................................. 126 21,420
Micros Systems, Inc.*......................................... 280 20,720
MicroStrategy, Inc.*.......................................... 371 77,909
Mid-America Apartment Communities, Inc. ...................... 441 9,978
Mid-State Bancshares.......................................... 231 7,363
Midas, Inc. .................................................. 371 8,116
Midway Games, Inc.*........................................... 497 11,897
Milacron, Inc. ............................................... 462 7,103
Millennium Pharmaceuticals, Inc.*............................. 357 43,554
Minerals Technologies, Inc. .................................. 189 7,572
Mitchell Energy & Development Corp.--Class A.................. 427 9,421
MMC Networks, Inc.*........................................... 378 12,994
Modine Manufacturing Co. ..................................... 448 11,200
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
MONY Group, Inc. ............................................. 330 $ 9,632
Morgan Keegan, Inc. .......................................... 567 9,533
MRV Communications, Inc.*..................................... 385 24,207
MTI Technology Corp.*......................................... 420 15,488
Mueller Industries, Inc.*..................................... 406 14,718
National City Bancshares, Inc. ............................... 363 9,120
National Computer Systems, Inc. .............................. 364 13,696
National Golf Properties, Inc. ............................... 413 8,157
National Health Investors, Inc. .............................. 644 9,580
National Instruments Corp.*................................... 336 12,852
National Penn Bancshares, Inc. ............................... 357 8,970
National Presto Industries, Inc. ............................. 245 8,698
National-OilWell, Inc.*....................................... 644 10,103
Nationwide Health Properties, Inc. ........................... 400 5,500
Nautica Enterprises, Inc.*.................................... 553 6,256
Navigant Consulting Co.*...................................... 420 4,568
NBTY, Inc.*................................................... 952 11,008
Newfield Exploration Co.*..................................... 441 11,797
Newpark Resources, Inc.*...................................... 1,316 8,061
Newport News Shipbuilding..................................... 301 8,278
Northwest Natural Gas Co. .................................... 357 7,832
Northwestern Corp. ........................................... 350 7,700
NUI Corp...................................................... 406 10,708
O'Reilly Automotive, Inc.*.................................... 420 9,030
Oak Industries, Inc.*......................................... 245 26,000
OfficeMax, Inc.*.............................................. 1,757 9,664
Ogden Corp. .................................................. 854 10,195
Ohio Casualty Corp. .......................................... 665 10,682
Olin Corp. ................................................... 742 14,700
Olsten Corp. ................................................. 854 9,661
OM Group, Inc. ............................................... 238 8,196
Omega Financial Corp. ........................................ 357 10,353
Omega Healthcare Investors, Inc. ............................. 483 6,128
Omnipoint Corp.*.............................................. 322 38,841
On Assignment, Inc.*.......................................... 273 8,156
Oneok, Inc. .................................................. 301 7,563
Open Market, Inc.*............................................ 455 20,532
Optical Coating Laboratory, Inc. ............................. 133 39,368
Orbital Sciences Corp.*....................................... 623 11,564
Orthodontic Centers of America, Inc.*......................... 567 6,769
Otter Tail Power Co. ......................................... 252 9,450
Owens & Minor, Inc. .......................................... 784 7,007
Pacific Capital Bancorp....................................... 238 7,319
Pacific Gulf Properties, Inc. ................................ 434 8,789
Pacific Sunwear of California, Inc.*.......................... 378 12,166
Pairgain Technologies, Inc.*.................................. 847 12,017
Papa John's International, Inc.*.............................. 259 6,750
Park Electrochemical Corp. ................................... 217 5,764
Parkway Properties, Inc. ..................................... 195 5,618
Patterson Dental Co.*......................................... 252 10,742
Patterson Energy, Inc.*....................................... 504 6,552
Paxar Corp.*.................................................. 889 7,501
PE Corp.--Celera Genomics Group*.............................. 322 47,977
Pegasus Communications Corp.*................................. 189 18,475
Pegasus Systems, Inc.*........................................ 224 13,510
Pennzoil-Quaker State Co. .................................... 945 9,627
PEP Boys-Manny, Moe & Jack.................................... 658 6,004
Peregrine Systems, Inc.*...................................... 315 26,519
</TABLE>
See accompanying notes to the financial statements.
16
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Performance Food Group Co.*................................... 287 $ 6,996
Perrigo Co.*.................................................. 1,141 9,128
Petsmart, Inc.*............................................... 1,918 11,029
Pharmacyclics, Inc.*.......................................... 217 8,951
Phoenix Investment Partners Ltd. ............................. 1,092 8,873
Pier 1 Imports, Inc. ......................................... 1,309 8,345
Pinnacle Systems, Inc.*....................................... 294 11,962
Pioneer Group, Inc.*.......................................... 623 9,812
Pioneer Natural Resources Co.*................................ 1,344 12,012
Pittston Brink's Group........................................ 588 12,936
Pittway Corp.--Class A........................................ 406 18,194
Plains Resources, Inc.*....................................... 441 5,513
Plantronics, Inc.*............................................ 210 15,028
Playboy Enterprises, Inc.--Class B*........................... 329 7,999
Plexus Corp.*................................................. 294 12,936
PMA Capital Corp.--Class A.................................... 672 13,356
Pogo Producing Co. ........................................... 539 11,050
Polaris Industries, Inc. ..................................... 308 11,165
Polaroid Corp. ............................................... 553 10,403
Policy Management Systems Corp.*.............................. 560 14,315
Polycom, Inc.*................................................ 266 16,941
Potlatch Corp. ............................................... 196 8,747
Power Integrations, Inc.*..................................... 224 10,738
Powertel, Inc.*............................................... 308 30,916
Powerwave Technologies, Inc.*................................. 168 9,807
Precision Castparts Corp. .................................... 357 9,371
Premier Bancshares, Inc. ..................................... 483 6,581
Prentiss Properties Trust..................................... 406 8,526
Presidential Life Corp. ...................................... 448 8,232
PRI Automation, Inc.*......................................... 245 16,446
Price Communications Corp.*................................... 546 15,186
Pride International, Inc.*.................................... 700 10,238
Primark Corp.*................................................ 392 10,903
Prime Retail, Inc. ........................................... 1,456 8,190
Profit Recovery Group International, Inc.*.................... 350 9,297
Progress Software Corp.*...................................... 273 15,493
Provident Bankshares Corp. ................................... 371 6,423
Proxicom, Inc.*............................................... 126 15,663
PS Business Parks, Inc. ...................................... 483 10,988
PSS World Medical, Inc.*...................................... 1,260 11,891
Public Service Co. of New Mexico.............................. 483 7,849
QRS Corp.*.................................................... 140 14,604
Quanta Services, Inc.*........................................ 322 9,097
Quest Diagnostics, Inc.*...................................... 413 12,622
Quorum Health Group, Inc.*.................................... 1,218 11,343
R.H. Donnelley Corp. ......................................... 455 8,588
Radian Group, Inc. ........................................... 315 15,040
Radio One, Inc.*.............................................. 168 15,456
Ralcorp Holdings, Inc.*....................................... 413 8,234
Raymond James Financial Corp. ................................ 574 10,727
Rayonier, Inc. ............................................... 238 11,498
Rayovac Corp.*................................................ 364 6,871
Reckson Associates Realty Corp. .............................. 462 9,471
Reebok International Ltd.*.................................... 882 7,221
Regis Corp. .................................................. 532 10,042
Reliance Bancorp, Inc. ....................................... 231 7,970
Remedy Corp.*................................................. 280 13,265
Renal Care Group, Inc.*....................................... 595 13,908
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Republic Bancorp, Inc. ....................................... 722 $ 8,764
Republic Security Financial Corp. ............................ 1,092 7,815
RFS Hotel Investors, Inc. .................................... 826 8,621
Richmond County Financial Corp. .............................. 504 9,104
Rogers Corp.*................................................. 224 8,568
Rollins Truck Leasing Corp. .................................. 1,057 12,618
Roper Industries, Inc. ....................................... 371 14,028
RSA Security, Inc.*........................................... 427 33,092
Ruby Tuesday, Inc. ........................................... 504 9,167
Ruddick Corp. ................................................ 476 7,378
Russell Corp. ................................................ 616 10,318
Ryan's Family Steak Houses, Inc.*............................. 819 6,962
Ryland Group, Inc. ........................................... 385 8,879
S & T Bancorp, Inc. .......................................... 315 7,304
S1 Corp.*..................................................... 308 24,063
S3, Inc.*..................................................... 805 9,308
SAGA SYSTEMS, Inc.*........................................... 581 11,584
Sandisk Corp.*................................................ 224 21,560
Sandy Spring Bancorp, Inc. ................................... 364 9,828
Sawtek, Inc.*................................................. 294 19,569
Scholastic Corp.*............................................. 175 10,883
Schulman (A.) Inc. ........................................... 476 7,765
SCM Microsystems, Inc.*....................................... 203 12,979
SCPIE Holdings, Inc. ......................................... 224 7,196
Seacor Smit, Inc.*............................................ 196 10,143
Second Bancorp, Inc. ......................................... 329 7,361
Security Capital Group, Inc.*................................. 553 6,913
Semtech Corp.*................................................ 322 16,784
Sensormatic Electronics Corp.*................................ 889 15,502
Sequa Corp.--Class A*......................................... 130 7,012
Shire Pharmaceuticals Group PLC*.............................. 350 10,204
Shopko Stores, Inc.*.......................................... 371 8,533
Sierra Pacific Resources...................................... 511 8,847
Silicon Valley Bancshares*.................................... 259 12,820
Sky Financial Group, Inc. .................................... 714 14,368
SL Green Realty Corp. ........................................ 532 11,570
Smithfield Foods, Inc.*....................................... 511 12,264
Smucker (J.M.) Co.--Class A................................... 392 7,644
Solectron Corp.*.............................................. 51 4,849
Sonic Corp.*.................................................. 329 9,377
Southern Peru Copper Corp. ................................... 630 9,726
Southern Union Co.*........................................... 485 9,274
Southwest Bancorp of Texas*................................... 518 10,263
Sovran Self Storage, Inc. .................................... 574 10,870
SportsLine.com, Inc.*......................................... 231 11,579
St. Mary Land & Exploration Co. .............................. 308 7,623
Staten Island Bancorp, Inc. .................................. 462 8,316
Station Casinos, Inc.*........................................ 343 7,696
Steel Dynamics, Inc.*......................................... 602 9,594
Steris Corp.*................................................. 882 9,096
Sterling Bancshares, Inc. .................................... 763 8,536
Stewart & Stevenson Services, Inc. ........................... 602 7,130
Stillwater Mining Co.*........................................ 532 16,957
Stone Energy Corp.*........................................... 182 6,484
Storage USA, Inc. ............................................ 350 10,588
Suiza Foods Corp.*............................................ 350 13,869
Summit Technology, Inc.*...................................... 560 6,545
Sun Communities, Inc. ........................................ 280 9,013
</TABLE>
See accompanying notes to the financial statements.
17
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ----------
<S> <C> <C>
Sunbeam Corp.*................................................ 1,568 $ 6,566
Sunglass Hut International, Inc.*............................. 623 7,009
Superior Industries International, Inc. ...................... 343 9,197
Susquehanna Bancshares, Inc. ................................. 455 7,223
Swift Transportation Co., Inc.*............................... 553 9,747
Sybase, Inc.*................................................. 1,036 17,612
Sykes Enterprises, Inc.*...................................... 294 12,899
Talbots, Inc. ................................................ 182 8,122
Talk.com, Inc.*............................................... 511 9,070
Taubman Centers, Inc. ........................................ 728 7,826
Techne Corp.*................................................. 287 15,803
Technology Solutions Co.*..................................... 630 20,633
Tektronix, Inc. .............................................. 497 19,321
Telebanc Financial Corp.*..................................... 406 10,556
Terex Corp.*.................................................. 301 8,353
Tesoro Petroleum Corp.*....................................... 574 6,637
Tetra Tech, Inc.*............................................. 588 9,041
Texas Industries, Inc. ....................................... 238 10,130
Texas Regional Bancshares, Inc.--Class A...................... 350 10,150
The Cheesecake Factory*....................................... 301 10,535
The Men's Wearhouse, Inc.*.................................... 455 13,365
The Scotts Company--Class A*.................................. 224 9,016
Thomas Industries, Inc. ...................................... 490 10,014
THQ, Inc.* ................................................... 280 6,493
Timken Co. ................................................... 553 11,302
Titan Corp.*.................................................. 644 30,349
TJ International, Inc. ....................................... 259 10,878
TNP Enterprises, Inc. ........................................ 266 10,973
Total Renal Care Holdings, Inc.*.............................. 1,197 8,005
Tower Automotive, Inc.*....................................... 616 9,510
Town & Country Trust.......................................... 504 9,041
Transaction Systems Architects, Inc.*......................... 399 11,172
Transkaryotic Therapies, Inc.*................................ 252 9,702
Transwitch Corp.*............................................. 273 19,810
Triangle Bancorp, Inc. ....................................... 448 8,680
Triangle Pharmaceuticals, Inc.*............................... 504 6,458
Trimble Navigation Ltd.*...................................... 546 11,807
Trinity Industries, Inc. ..................................... 350 9,953
Triquint Semiconductor, Inc.*................................. 161 17,911
True North Communications, Inc. .............................. 455 20,333
Trust Company of New Jersey................................... 406 9,287
Tupperware Corp. ............................................. 560 9,485
U.S. Bancorp.................................................. 196 4,675
UCAR International, Inc.*..................................... 539 9,601
UICI*......................................................... 413 4,362
Ultratech Stepper, Inc.*...................................... 546 8,804
Unifi, Inc.*.................................................. 889 10,946
Unisource Energy Corp. ....................................... 861 9,632
United Asset Management Corp. ................................ 658 12,214
United Bankshares, Inc. ...................................... 329 7,855
United Community Financial Corp. ............................. 693 6,887
United Dominion Realty Trust, Inc. ........................... 903 8,917
United National Bancorp....................................... 462 10,251
United Stationers, Inc.*...................................... 399 11,395
Universal Foods Corp. ........................................ 455 9,271
Unova, Inc.*.................................................. 693 9,009
US Oncology, Inc.*............................................ 1,071 5,288
USEC, Inc. ................................................... 1,183 8,281
</TABLE>
Common Stocks, continued
<TABLE>
<CAPTION>
Market
Shares Value
------ ---------
<S> <C> <C>
USFreightways Corp. .......................................... 294 $ 14,075
UST Corp. .................................................... 273 8,668
Vail Resorts, Inc.*........................................... 406 7,283
Valero Energy Corp. .......................................... 672 13,355
Valmont Industries, Inc. ..................................... 455 7,308
ValueVision International, Inc.--Class A*..................... 301 17,251
Varco International, Inc.*.................................... 763 7,773
Varian Medical Systems, Inc. ................................. 448 13,356
Varian Semiconductor Equipment Associates, Inc.*.............. 476 16,184
Varian, Inc.*................................................. 511 11,498
Verity, Inc.*................................................. 350 14,897
Vertex Pharmaceuticals, Inc.*................................. 364 12,740
VerticalNet, Inc.*............................................ 364 59,695
Vicor Corp.*.................................................. 315 12,758
Vintage Petroleum, Inc. ...................................... 777 9,373
Visio Corp.*.................................................. 343 16,293
Visual Networks, Inc.*........................................ 273 21,635
W Holding Co., Inc. .......................................... 742 7,698
W.R. Grace & Co.*............................................. 756 10,490
Wabash National Corp. ........................................ 483 7,245
Walden Residential Properties, Inc. .......................... 476 10,294
Wallace Computer Services, Inc. .............................. 427 7,099
Walter Industries, Inc. ...................................... 651 7,039
Washington Real Estate Investment Trust....................... 595 8,925
Wausau-Mosinee Paper Corp. ................................... 826 9,653
WD-40 Co. .................................................... 392 8,673
Webster Financial Corp. ...................................... 315 7,422
Wellman, Inc. ................................................ 588 10,952
Werner Enterprises, Inc. ..................................... 476 6,694
Wesbanco, Inc. ............................................... 294 7,644
Wesley Jessen VisionCare, Inc.*............................... 336 12,726
West Pharmaceutical Services, Inc. ........................... 273 8,446
Westwood One, Inc.*........................................... 357 27,131
Whitney Holding Corp. ........................................ 224 8,302
Whole Foods Market, Inc.*..................................... 336 15,581
Wind River Systems, Inc.*..................................... 497 18,265
Wisconsin Central Transport*.................................. 658 8,842
Wolverine World Wide, Inc. ................................... 784 8,575
World Access, Inc.*........................................... 693 13,340
Worthington Industries, Inc. ................................. 784 12,985
Wyndham International, Inc.--Class A*......................... 2,590 7,608
Xircom, Inc.*................................................. 259 19,425
Xtra Corp.*................................................... 224 9,548
Yellow Corp.*................................................. 490 8,238
Young Broadcasting, Inc.--Class A*............................ 161 8,211
Zebra Technologies Corp.*..................................... 287 16,790
---------
TOTAL COMMON STOCKS
(Cost $7,749,567)............................................ 8,105,198
=========
</TABLE>
See accompanying notes to the financial statements.
18
<PAGE>
PROFUNDS VP Schedule of Portfolio Investments
ProFund VP Small Cap December 31, 1999
U.S. Treasury Bills (15.9%)
<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ----------
<S> <C> <C>
U.S. Treasury Bill, 4.91%, 03/23/00...................... $1,017,000 $1,005,610
U.S. Treasury Bill, 4.86%, 03/30/00...................... 557,000 550,081
----------
TOTAL U.S. TREASURY BILLS
(Cost $1,555,502)....................................... 1,555,691
----------
TOTAL INVESTMENTS
(Cost $9,305,069)(a) (98.5%)............................ 9,660,889
Other assets in excess of liabilities (1.5%)............. 143,031
----------
TOTAL NET ASSETS (100.0%)................................ $9,803,920
==========
</TABLE>
- -----
Percentages indicated are based on net assets of $9,803,920.
Futures Contracts Purchased
<TABLE>
<CAPTION>
Contracts Unrealized Gain
--------- ---------------
<S> <C> <C>
Russell 2000 Future Contract expiring March 2000
(Underlying face amount at value $1,772,750)....... 7 $27,465
=======
</TABLE>
- -----
* Non-income producing
(a) Represents cost for financial reporting purposes. Cost for federal income
tax purposes differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $414,680
Unrealized depreciation......................................... (58,860)
--------
Net unrealized appreciation..................................... $355,820
========
</TABLE>
PLC--Public Limited Company
The ProFund VP Small Cap's investment concentration based on net assets, by
industry, as of December 31, 1999, was as follows:
<TABLE>
<S> <C>
Aerospace & Defense....................................................... 0.6%
Agriculture............................................................... 0.2%
Airlines.................................................................. 0.2%
Automotive................................................................ 0.5%
Banking................................................................... 5.9%
Biotechnology............................................................. 2.7%
Building & Construction................................................... 1.7%
Business Services......................................................... 3.7%
Chemicals................................................................. 1.5%
Computer Software......................................................... 8.6%
Computers................................................................. 4.8%
Consumer Products......................................................... 0.8%
Containers & Packaging.................................................... 0.2%
Electrical & Electronic................................................... 9.0%
Energy & Utilities........................................................ 5.1%
Environmental Services.................................................... 0.3%
Financial Services........................................................ 1.3%
Food & Beverage........................................................... 1.4%
Health Care............................................................... 2.3%
Home Furnishings.......................................................... 0.8%
Insurance................................................................. 1.7%
Investment Company........................................................ 0.1%
Machinery & Equipment..................................................... 3.8%
Media..................................................................... 2.7%
Metals & Mining........................................................... 1.9%
Office Equipment & Supplies............................................... 0.1%
Paper & Forest Products................................................... 0.4%
Pharmaceuticals........................................................... 2.5%
Real Estate............................................................... 0.3%
Real Estate Investment Trust.............................................. 5.1%
Retail & Wholesale........................................................ 3.6%
Telecommunications........................................................ 5.2%
Textiles & Apparel........................................................ 0.6%
Transportation............................................................ 1.6%
Travel & Entertainment.................................................... 1.4%
Other..................................................................... 17.4%
</TABLE>
See accompanying notes to the financial statements.
19
<PAGE>
PROFUNDS VP
ProFund VP Small Cap
<TABLE>
<S> <C>
Statement of
Assets and
Liabilities
</TABLE>
December 31, 1999
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $9,305,069)............................ $9,660,889
Cash............................................................... 111,545
Variation margin on futures contracts.............................. 24,355
Dividends and interest receivable.................................. 7,383
Receivable for investments sold.................................... 1,894
Deferred offering costs............................................ 5,472
----------
Total Assets....................................................... 9,811,538
Liabilities:
Advisory fees payable.............................................. 1,480
Administrative servicing fees payable.............................. 2,517
Distribution fees payable.......................................... 2,517
Other accrued expenses............................................. 1,104
----------
Total Liabilities.................................................. 7,618
----------
Net Assets.......................................................... $9,803,920
==========
Net Assets consist of:
Capital............................................................ $8,901,065
Accumulated undistributed net investment income.................... 19,015
Accumulated undistributed net realized gains on investments and
futures contracts................................................. 500,555
Net unrealized appreciation on investments and futures contracts... 383,285
----------
Total Net Assets.................................................... $9,803,920
==========
Net Assets......................................................... $9,803,920
Shares of Beneficial Interest Outstanding.......................... 272,398
Net Asset Value (offering and redemption price per share).......... $ 35.99
==========
</TABLE>
<TABLE>
<S> <C>
Statement
of
Operations
</TABLE>
For the period October 19, 1999(a) through December 31, 1999
<TABLE>
<S> <C>
Investment Income:
Interest............................................................ $ 18,399
Dividends........................................................... 16,379
--------
Total Income........................................................ 34,778
Expenses:
Advisory fees....................................................... 7,551
Management servicing fees........................................... 1,510
Administrative servicing fees....................................... 2,517
Distribution fees................................................... 2,517
Administration fees................................................. 503
Fund accounting fees................................................ 5,005
Audit fees.......................................................... 3,348
Offering costs...................................................... 1,392
Custody fees........................................................ 94
Other fees.......................................................... 1,103
--------
Total expenses before waivers....................................... 25,540
Less expenses waived................................................ (8,387)
--------
Net expenses........................................................ 17,153
--------
Net Investment Income................................................ 17,625
--------
Realized and Unrealized Gains on Investments:
Net realized gains on investments and futures contracts............. 500,555
Net change in unrealized appreciation on investments and futures
contracts.......................................................... 383,285
--------
Net realized and unrealized gains on investments and futures
contracts.......................................................... 883,840
--------
Increase in Net Assets Resulting from Operations..................... $901,465
========
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
20
<PAGE>
PROFUNDS VP
ProFund VP Small Cap
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
October 19, 1999(a)
through December
31, 1999
-------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income..................................... $ 17,625
Net realized gains on investments and futures contracts... 500,555
Net change in unrealized appreciation on investments and
futures contracts........................................ 383,285
------------
Net increase in net assets resulting from operations...... 901,465
Capital Share Transactions:
Proceeds from shares issued............................... 49,941,883
Cost of shares redeemed................................... (41,039,428)
------------
Net increase in net assets resulting from capital share
transactions............................................. 8,902,455
------------
Total increase in net assets.............................. 9,803,920
Net Assets:
Beginning of period....................................... --
------------
End of period............................................. $ 9,803,920
============
</TABLE>
- -----
(a) Commencement of operations.
See accompanying notes to the financial statements.
21
<PAGE>
PROFUNDS VP
ProFund VP Small Cap
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
For the period from
October 19, 1999(a) through
December 31, 1999
---------------------------
<S> <C>
Net Asset Value, Beginning of Period............... $ 30.00
----------
Net investment income............................. 0.06
Net realized and unrealized gain on investments
and futures contracts............................ 5.93
----------
Total income from investment operations........... 5.99
----------
Net Asset Value, End of Period..................... $ 35.99
==========
Total Return....................................... 19.97%(b)
Ratios/Supplemental Data:
Net assets, end of year............................ $9,803,920
Ratio of expenses to average net assets............ 1.70%(c)
Ratio of net investment income to average net
assets............................................ 1.75%(c)
Ratio of expenses to average net assets*........... 2.53%(c)
Portfolio turnover................................. 686%
</TABLE>
- -----
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reduction had not occurred, the ratio would have been as indicated.
(a) Commencement of operations.
(b) Not annualized.
(c) Annualized.
22
<PAGE>
PROFUNDS VP
Notes to Financial Statements
December 31, 1999
1. Organization
The ProFunds VP are series of ProFunds (the "Trust"), a registered open-end
investment company. The Trust was organized as a Delaware business trust on
April 17, 1997 and has authorized capital of unlimited shares of beneficial
interest of no par value which may be issued in more than one class or
series. ProFund Advisors LLC (the "Advisor") serves as the investment
advisor for each of the ProFunds VP. BISYS Fund Services Limited Partnership
("BISYS"), a wholly owned subsidiary of The BISYS Group, Inc., acts as the
Trust's administrator. Currently, the ProFunds VP consist of three
separately managed series: ProFund VP UltraOTC, ProFund VP Europe 30 and
ProFund VP Small Cap (collectively, the "ProFunds VP" and individually, a
"ProFund VP").
The investment objectives of the ProFunds VP are as follows:
ProFund VP UltraOTC. The investment objective of the ProFund VP UltraOTC is
to provide investment results that correspond to twice (200%) the
performance of the NASDAQ 100 Index. The NASDAQ 100 Index includes 100 of
the largest and most active non-financial domestic companies listed on the
NASDAQ National Market tier of The NASDAQ Stock Market. If the ProFund VP
UltraOTC is successful in meeting its objective, it should gain
approximately twice as much as the growth oriented NASDAQ 100 Index when the
prices of the securities in that index rise on a given day and should lose
approximately twice as much when such prices decline.
ProFund VP Europe 30. The investment objective of the ProFund VP Europe 30
is to provide investment results that correspond to the performance of the
ProFunds Europe 30 Index. The ProFunds Europe 30 Index, created by ProFund
Advisors, is composed of the 30 European companies whose securities are
traded on U.S. exchanges or on the NASDAQ Stock Market as American
Depository Receipts with the highest market capitalization determined
annually.
ProFund VP Small Cap. The investment objective of the ProFund VP Small Cap
is to provide investment results that correspond to the performance of the
Russell 2000 Index. The Russell 2000 Index is an unmanaged index consisting
of 2,000 small company common stocks.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by
each ProFund VP in preparation of its financial statements. These policies
are in conformity with generally accepted accounting principles. The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of income and expense during the reporting period.
The actual results could differ from those estimates.
a) Investment Valuation
Securities, except as otherwise noted that are listed or traded on a stock
exchange, are valued on the basis of the last sale on that day or, lacking
any sales, at a price that is the mean between the closing bid and asked
prices. Other securities that are traded on the OTC markets are priced using
NASDAQ, which provides information on bid and asked prices quoted by major
dealers in such stocks. Short-term debt securities are valued at amortized
cost, which approximates market value.
For the ProFunds VP, futures contracts and options on indexes and exchanged-
traded securities held are valued at the last traded sale price prior to the
close of the securities or commodities exchange on which they are traded
(generally 4:00 p.m. Eastern time). Options on securities traded in the OTC
market are valued at the average of the last bid price as obtained from two
or more dealers unless there is only one dealer, in which case that dealer's
price is used. Futures contracts are valued with reference to established
futures exchanges as described herein or, when price quotes are not readily
available, the value of a futures contract purchased will be the bid price,
and the value of a futures contract sold will be the asked price. The value
of options on futures contracts is determined based upon the current
settlement price for a like option acquired on the day on which the option
is being valued. When market quotations are not readily available,
securities and other assets held by the ProFunds VP are valued at fair value
as determined in good faith under procedures established by and under
general supervision and responsibility of the ProFund's Board of Trustees.
b) Repurchase Agreements
Under a repurchase agreement, a ProFund VP purchases a debt security and
simultaneously agrees to sell the security back to the seller at a mutually
agreed-upon future price and date, normally one day or a few days later. The
resale price is greater than the purchase price, reflecting an agreed-upon
market interest rate during the purchaser's holding period. While the
maturities of the underlying securities in repurchase transactions may be
more than one year, the term of each repurchase
Continued
23
<PAGE>
PROFUNDS VP
Notes to Financial Statements, (continued)
December 31, 1999
agreement will always be less than one year. A ProFund VP will enter into
repurchase agreements only with member banks of the Federal Reserve System
or primary dealers of U.S. government securities. The Advisor will monitor
the creditworthiness of each of the firms which is a party to a repurchase
agreement with any of the ProFunds VP.
The ProFunds VP require that the securities purchased in a repurchase
agreement transaction be transferred to the custodian in a manner sufficient
to enable the ProFund VP to obtain those securities in the event of a
counterparty default. The seller, under the repurchase agreement, is
required to maintain the value of the securities held at not less than the
repurchase price, including accrued interest. Repurchase agreements are
considered to be loans under the 1940 Act.
c) Short Sales
When a ProFund VP engages in a short sale, the ProFund VP records a
liability for securities sold short and records an asset equal to the
proceeds received. The amount of the liability is subsequently marked to
market to reflect the market value of the short sale. The ProFund VP
maintains a segregated account of securities as collateral for outstanding
short sales, when required. The ProFund VP is exposed to market risk based
on the amount, if any, that the market value of the securities sold short
exceeds the proceeds received.
d) Futures Contracts
The ProFunds VP may purchase or sell stock index futures contracts and
options on such futures contracts. Futures contracts are contracts for
delayed delivery of securities at a specified future delivery date and at a
specific price. Upon entering into a contract, the ProFund VP may be
required to deposit and maintain as collateral such initial margin as
required by the exchange on which the transaction is effected. Pursuant to
the contract, the ProFund VP agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the
ProFund VP as unrealized gains or losses. When the contract is closed or
offset, the ProFund VP records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed.
e) Risks of Futures Contracts
Futures contracts involve, to varying degrees, elements of market risk and
exposure to loss in excess of the amount recognized in the Statements of
Assets and Liabilities. The face or contract amounts reflect the extent of
the total exposure each ProFund VP has in the particular classes of
instruments. Risks may result from an imperfect correlation between
movements in the price of the instruments and the price of the underlying
securities.
f) Securities Transactions and Related Income
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium
or discount. Dividend income is recorded on the ex-dividend date. Gains or
losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
g) Expenses
Expenses directly attributable to a ProFund VP are charged to the ProFund
VP, while expenses which are attributable to more than one ProFund VP are
allocated among the respective ProFunds VP based upon relative net assets or
another appropriate basis.
h) Capital Accounts
The trust follows provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies"
("SOP"). The purpose of this SOP is to report undistributed net investment
income and accumulated net realized gain or loss in such a manner as to
approximate amounts available for future distributions to shareholders, if
any.
i) Distributions to Shareholders
The ProFunds VP will distribute net investment income and net realized
gains, if any, at least once a year. The amount of distributions from net
investment income and net realized gains are determined in accordance with
federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the composition of
net assets based on their federal tax-basis treatment; temporary differences
do not require a
Continued
24
<PAGE>
PROFUNDS VP
Notes to Financial Statements, (continued)
December 31, 1999
reclassification. Distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment income or
net realized gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distribution
of capital. The ProFunds VP utilize equalization accounting for tax purposes
and designate earnings and profits, including net realized gains distributed
to shareholders on redemption of shares, as a part of the dividends paid
deduction for income tax purposes.
As of December 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to paid-
in-capital:
<TABLE>
<CAPTION>
Accumulated
Accumulated Net Realized
Undistributed Net Gain/(Loss) on
Investment Income Investments
----------------- --------------
<S> <C> <C>
ProFund VP UltraOTC......................... $56,836 $(48,185)
ProFund VP Europe 30........................ 3,102 (2,904)
ProFund VP Small Cap........................ 1,390 --
</TABLE>
j) Federal Income Tax
Each of the ProFunds VP intends to qualify each year as a regulated
investment company (a "RIC") under Subchapter M of the Internal Revenue Code
of 1986, as amended. A RIC generally is not subject to federal income tax on
income and gains distributed in a timely manner to its shareholders; the
ProFunds VP intend to make timely distributions in order to avoid tax
liability.
k) Offering Costs
Costs incurred by the ProFunds VP in connection with its initial offering of
shares have been deferred and are being amortized on the straight-line
method over a twelve-month period beginning on the date on which each
ProFund VP commenced its investment activities.
3. Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows for the period
ended December 31, 1999.
<TABLE>
<CAPTION>
ProFund VP UltraOTC ProFund VP Small Cap ProFund VP Europe 30
----------------------- ------------------------ --------------------------
October 19, 1999 October 19, 1999
through December 31, through December 31, October 19, 1999 through
1999 1999 December 31, 1999
----------------------- ------------------------ --------------------------
Shares Amount Shares Amount Shares Amount
--------- ------------ ---------- ------------ --------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares Sold............. 1,790,763 $ 79,824,900 1,534,275 $ 49,941,883 132,408 $ 4,413,241
Shares Redeemed......... (833,547) (40,983,810) (1,261,877) (41,039,428) (43,800) (1,469,109)
--------- ------------ ---------- ------------ ---------- --------------
Net Increase........... 957,216 $ 38,841,090 272,398 $ 8,902,455 88,608 $ 2,944,132
========= ============ ========== ============ ========== ==============
</TABLE>
4. Investment Advisory Fees, Administration Fees and Other Related Party
Transactions
The ProFunds VP have entered into an Investment Advisory Agreement with the
Advisor. Under this agreement, the ProFunds VP each pay the Advisor a fee at
an annualized rate, based on the average daily net assets of each respective
ProFund VP, of 0.75%.
For its services as Administrator, each ProFund VP pays BISYS a fee at the
annual rate of 0.05% of its average daily net assets. BISYS Fund Services,
Inc. ("BFSI"), also an affiliate of BISYS, acts as transfer agent and fund
accounting agent for the ProFunds VP, for which it receives additional fees.
Additionally, ProFunds VP, BISYS and BFSI have entered into an Omnibus Fee
Agreement in which the amount of compensation due and payable to BISYS shall
be the greater of (i) the aggregate fee amount due and payable for services
pursuant to the Administration, Fund Accounting and Transfer Agency
Agreements and (ii) the minimum relationship fee described as specific
dollar amounts payable over a period of ten calendar quarters.
Continued
25
<PAGE>
PROFUNDS VP
Notes to Financial Statements, (concluded)
December 31, 1999
ProFund Advisors LLC, pursuant to a separate Management Services Agreement,
performs certain client support services and other administrative services
on behalf of the ProFunds VP. For these services, each ProFund VP will pay
to ProFund Advisors LLC a fee at the annual rate of 0.15% of its average
daily net assets.
Under a distribution plan adopted by the Board of Trustees, each ProFund VP
may pay financial intermediaries an annual fee of up to 0.25% of its average
daily net assets as reimbursement or compensation for providing or procuring
a variety of services relating to the promotion, sale and servicing of
shares of the ProFund VP.
The Trust, on behalf of the ProFunds VP, has entered into an administrative
services agreement with American Skandia Life Assurance Corporation
("American Skandia") pursuant to which American Skandia will provide
administrative services with respect to the ProFunds VP. For these services,
the Trust pays American Skandia a quarterly fee equal on an annual basis to
0.25% of the average daily net assets of each ProFund VP that were invested
in such Fund through American Skandia's separate account.
Certain Trustees of the Trust are Officers of ProFund Advisors LLC and are
compensated for such services.
Waivers are detailed as follows:
<TABLE>
<CAPTION>
Investment Management Fund
Advisor Administration Servicing Accounting
Waiver Waiver Waiver Waiver
---------- -------------- ---------- ----------
<S> <C> <C> <C> <C>
ProFund VP UltraOTC.......... $6,554 $3,633 $10,900 $2,204
ProFund VP Europe 30......... 1,195 155 465 93
ProFund VP Small Cap......... 6,071 503 1,510 303
</TABLE>
The advisor and/or the administrator have voluntarily agreed to waive the
ProFunds VP for expenses incurred to maintain a competitive expense ratio
for the ProFunds VP.
5. Securities Transactions
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities) during the period ended December 31, 1999
were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
ProFund VP UltraOTC.................................. $79,145,043 $29,431,896
ProFund VP Europe 30................................. 4,956,160 1,450,694
ProFund VP Small Cap................................. 34,101,691 24,647,717
</TABLE>
26
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of
ProFunds
In our opinion, the accompanying statements of assets and liabilities,
including the schedule of portfolio investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the ProFund VP
UltraOTC, ProFund VP Europe 30 and the ProFund VP Small Cap, hereafter
referred to as the "Trust" at December 31, 1999, and the results of each of
their operations, the changes in each of their net assets and the financial
highlights for the period October 19, 1999 (commencement of operations)
through December 31, 1999, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the management of ProFunds; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statements
presentation. We believe that our audits, which included confirmation of
securities at December 31, 1999 by correspondence with the custodian and
brokers, provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
February 10, 2000
27
