<PAGE>
June 30, 2000
Semi-Annual Report
[PICTURE APPEARS HERE]
UltraSector ProFunds
[PROFUNDS LOGO]
ProFunds(SM)
<PAGE>
Table of Contents
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter to the Shareholders......................................... 1
Schedules of Portfolio Investments and Financial Statements
Biotechnology UltraSector ProFund................................. 3
Energy UltraSector ProFund........................................ 7
Financial UltraSector ProFund..................................... 11
Healthcare UltraSector ProFund.................................... 16
Internet UltraSector ProFund...................................... 21
Pharmaceuticals UltraSector ProFund............................... 25
Real Estate UltraSector ProFund................................... 29
Semiconductor UltraSector ProFund................................. 33
Technology UltraSector ProFund.................................... 37
Telecommunications UltraSector ProFund............................ 42
Wireless Communications UltraSector ProFund....................... 46
Notes to Financial Statements...................................... 50
</TABLE>
<PAGE>
PROFUNDS
Shareholders' Letter
Dear ProFunds Shareholder,
I am pleased to present the Semi-Annual Report to Shareholders of
UltraSector ProFunds for the six-month period ended June 30, 2000.
We want you to know how deeply we appreciate your confidence in, and support
for, these new products.
We introduced the UltraSector ProFunds, benchmarked to the Dow Jones U.S.
sector indexes, in late June. In just six weeks they attracted $100 million in
assets.
In the pages that follow you'll find a detailed discussion of the
UltraSector ProFunds during their early days of operation. Please read it
carefully.
Sincerely,
/s/ Michael Sapir
-----------------
Michael Sapir
Chairman
1
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Biotechnology UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (18.7%)
Market
Shares Value
------ ----------
<S> <C> <C>
Abgenix, Inc.*............................................... 220 $ 26,369
Advanced Tissue Sciences, Inc.*.............................. 440 3,534
Affymetrix, Inc.*............................................ 165 27,246
Alkermes, Inc.*.............................................. 352 16,588
Alliance Pharmaceutical Corp.*............................... 407 4,579
Amgen, Inc.*................................................. 2,508 176,186
Aurora Biosciences Corp.*.................................... 121 8,251
Bio-Technology General Corp.*................................ 550 7,253
Biogen, Inc.*................................................ 1,045 67,402
Biomatrix, Inc.*............................................. 396 8,960
Cell Genesys, Inc.*.......................................... 253 7,084
Chiron Corp.*................................................ 1,221 57,997
COR Therapeutics, Inc.*...................................... 176 15,015
Cytogen Corp.*............................................... 495 5,012
Delta & Pineland Co.......................................... 616 15,439
EntreMed, Inc.*.............................................. 121 3,622
Enzo Biochem, Inc.*.......................................... 187 12,903
Enzon, Inc.*................................................. 275 11,688
Gene Logic, Inc.*............................................ 143 5,103
Genome Therapeutics Corp.*................................... 132 4,018
Genzyme Corp.-General Division*.............................. 726 43,152
Geron Corp.*................................................. 176 5,632
Gilead Sciences, Inc.*....................................... 341 24,254
Guilford Pharmaceuticals, Inc.*.............................. 363 5,468
Human Genome Sciences, Inc.*................................. 341 45,481
Hyseq, Inc.*................................................. 88 3,999
ICOS Corp.*.................................................. 407 17,908
IDEC Pharmaceuticals Corp.*.................................. 264 30,971
IDEXX Laboratories, Inc.*.................................... 473 10,820
ImClone Systems, Inc.*....................................... 209 15,975
Immune Response Corp.*....................................... 330 3,589
Immunex Corp.*............................................... 2,794 138,127
Incyte Genomics, Inc.*....................................... 187 15,369
Ligand Pharmaceuticals, Inc.--Class B*....................... 528 6,963
Medarex, Inc.*............................................... 198 16,731
MedImmune, Inc.*............................................. 1,177 87,098
Millennium Pharmaceuticals, Inc.*............................ 539 60,300
Miravant Medical Technologies*............................... 176 3,927
Myriad Genetics, Inc.*....................................... 77 11,402
Nabi*........................................................ 737 5,389
Northfield Laboratories, Inc.*............................... 374 6,101
Organogenesis, Inc.*......................................... 418 4,781
PathoGenesis Corp.*.......................................... 231 6,006
PE Corp.-PE Biosystems Group................................. 1,221 80,433
Pharmacyclics, Inc.*......................................... 154 9,394
Protein Design Labs, Inc.*................................... 121 19,959
Regeneron Pharmaceuticals, Inc.*............................. 264 7,871
Scios, Inc.*................................................. 748 4,208
SICOR, Inc.*................................................. 836 6,688
Theragenics Corp.*........................................... 649 5,557
Vertex Pharmaceuticals, Inc.*................................ 209 22,023
ViroPharma, Inc.*............................................ 176 2,750
Xoma Ltd.*................................................... 594 2,543
----------
TOTAL COMMON STOCKS (Cost $1,266,886)........................ 1,215,118
----------
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Notes (29.6%)
Principal Market
Amount Value
---------- ----------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00........................................ $1,924,000 $1,916,485
----------
TOTAL U.S. TREASURY NOTES (Cost $1,916,566)............. 1,916,485
----------
TOTAL INVESTMENTS (Cost $3,183,452)(a) (48.3%).......... 3,131,603
Other assets in excess of liabilities (51.7%)........... 3,350,939
----------
TOTAL NET ASSETS (100.0%)............................... $6,482,542
==========
</TABLE>
-----
Percentages indicated are based on net assets of $6,482,542.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation..... $ 7,811
Unrealized depreciation..... (59,660)
--------
Net unrealized
depreciation............... $(51,849)
========
See accompanying notes to the financial statements.
3
<PAGE>
ULTRASECTOR PROFUNDS
Biotechnology UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $3,183,452)........................... $3,131,603
Cash.............................................................. 276
Dividends and interest receivable................................. 21,763
Receivable for investments sold................................... 3,645,447
----------
Total Assets..................................................... 6,799,089
Liabilities:
Unrealized depreciation on swap contracts......................... 313,124
Advisory fees payable............................................. 1,223
Management servicing fees payable................................. 245
Shareholder servicing fees payable--Service Class................. 1,221
Other accrued expenses............................................ 734
----------
Total Liabilities................................................ 316,547
----------
Net Assets......................................................... $6,482,542
==========
Net Assets consist of:
Capital........................................................... $7,100,079
Accumulated net investment loss................................... (437)
Accumulated net realized losses on investments.................... (252,127)
Net unrealized depreciation on investments and swap contracts..... (364,973)
----------
Total Net Assets................................................... $6,482,542
==========
Investor Shares:
Net Assets........................................................ $1,536,186
Shares of Beneficial Interest Outstanding......................... 79,875
Net Asset Value (offering and redemption price per share)......... $ 19.23
==========
Service Shares:
Net Assets........................................................ $4,946,356
Shares of Beneficial Interest Outstanding......................... 257,304
Net Asset Value (offering and redemption price per share)......... $ 19.22
==========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest........................................................... $ 2,986
Expenses:
Advisory fees...................................................... 1,223
Management servicing fees.......................................... 245
Shareholder servicing fees--Service Class.......................... 1,221
Other fees......................................................... 734
---------
Total expenses.................................................... 3,423
---------
Net Investment Loss................................................. (437)
---------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments................................. (252,127)
Net change in unrealized depreciation on investments and swap
contracts......................................................... (364,973)
---------
Net realized and unrealized losses on investments and swap
contracts........................................................ (617,100)
---------
Decrease In Net Assets Resulting from Operations.................... $(617,537)
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
4
<PAGE>
ULTRASECTOR PROFUNDS
Biotechnology UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment loss.................................. $ (437)
Net realized losses on investments................... (252,127)
Net change in unrealized depreciation on investments
and swap contracts.................................. (364,973)
-----------
Net decrease in net assets resulting from
operations.......................................... (617,537)
Capital Share Transactions:
Proceeds from shares issued.......................... 9,296,499
Cost of shares redeemed.............................. (2,196,420)
-----------
Net increase in net assets resulting from capital
share transactions.................................. 7,100,079
-----------
Total increase in net assets......................... 6,482,542
Net Assets:
Beginning of period.................................. --
-----------
End of period........................................ $ 6,482,542
===========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
5
<PAGE>
ULTRASECTOR PROFUNDS
Biotechnology UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
---------- ----------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (0.77) (0.78)
---------- ----------
Total loss from investment
operations....................... (0.77) (0.78)
---------- ----------
Net Asset Value, End of Period..... $ 19.23 $ 19.22
========== ==========
Total Return....................... (3.85)%(b) (3.90)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $1,536,186 $4,946,356
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.49%(c) (0.52)%(c)
Portfolio turnover(d).............. 661% 661%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
6
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Energy UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (80.4%)
Market
Shares Value
------ --------
<S> <C> <C>
Amerada Hess Corp. ............................................. 51 $ 3,149
Anadarko Petroleum Corp. ....................................... 72 3,551
Apache Corp. ................................................... 66 3,882
Ashland, Inc. .................................................. 21 736
Baker Hughes, Inc. ............................................. 189 6,048
Barrett Resources Corp.*........................................ 15 457
BJ Services Co.*................................................ 30 1,875
BP Amoco PLC--ADR............................................... 108 6,109
Burlington Resources, Inc. ..................................... 147 5,623
Chevron Corp. .................................................. 354 30,023
Coastal Corp. .................................................. 105 6,392
Conoco, Inc.--Class B........................................... 348 8,548
CONSOL Energy, Inc. ............................................ 66 998
Cooper Cameron Corp. ........................................... 18 1,188
Devon Energy Corp. ............................................. 45 2,528
Diamond Offshore Drilling, Inc. ................................ 69 2,424
El Paso Energy Corp. ........................................... 120 6,113
Ensco International, Inc. ...................................... 60 2,149
EOG Resources, Inc. ............................................ 66 2,211
Evergreen Resources, Inc.*...................................... 3 89
Exxon Mobil Corp. .............................................. 555 43,567
Forest Oil Corp.*............................................... 15 239
Global Industries, Ltd.*........................................ 18 340
Global Marine, Inc.*............................................ 72 2,030
Grant Prideco, Inc.*............................................ 60 1,500
Halliburton Co. ................................................ 240 11,324
Helmerich & Payne, Inc. ........................................ 39 1,458
Kerr-McGee Corp. ............................................... 60 3,536
Kinder Morgan, Inc. ............................................ 51 1,763
Lone Star Technologies, Inc.*................................... 3 139
Louis Dreyfus Natural Gas Corp.*................................ 18 564
Marine Drilling Co., Inc.*...................................... 12 336
Murphy Oil Corp. ............................................... 54 3,210
Nabors Industries, Inc.*........................................ 66 2,743
Newfield Exploration Co.*....................................... 27 1,056
Noble Drilling Corp.*........................................... 57 2,348
Occidental Petroleum Corp. ..................................... 240 5,055
Ocean Energy, Inc.*............................................. 78 1,107
Phillips Petroleum Co. ......................................... 183 9,275
Pride International, Inc.*...................................... 6 149
R&B Falcon Corp.*............................................... 63 1,484
Rowan Cos., Inc.*............................................... 30 911
Royal Dutch Petroleum Co.--ADR.................................. 168 10,342
Santa Fe International.......................................... 39 1,363
Santa Fe Snyder Corp.*.......................................... 84 956
Schlumberger Ltd. .............................................. 249 18,581
Shell Transport & Trading Co.--ADR.............................. 90 4,494
Smith International, Inc.*...................................... 21 1,529
Stone Energy Corp.*............................................. 12 717
Sunoco, Inc. ................................................... 18 530
Texaco, Inc. ................................................... 318 16,933
Tidewater, Inc. ................................................ 27 972
Tom Brown, Inc.*................................................ 6 138
Tosco Corp. .................................................... 84 2,378
Total Fina SA--ADR.............................................. 72 5,531
Transocean Sedco Forex, Inc. ................................... 96 5,130
Union Pacific Resources Group................................... 117 2,574
Unocal Corp. ................................................... 147 4,869
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
--------- --------
<S> <C> <C>
USX-Marathon Group, Inc. .................................. 144 $ 3,609
Varco International, Inc.*................................. 33 767
Vastar Resources, Inc. .................................... 75 6,159
Vintage Petroleum, Inc.*................................... 24 542
Weatherford International, Inc.*........................... 39 1,553
Williams Cos., Inc. ....................................... 225 9,379
--------
TOTAL COMMON STOCKS
(Cost $297,614)........................................... 287,273
<CAPTION>
U.S. Treasury Notes (22.6%)
Principal
Amount
---------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00........................................... $81,000 80,684
--------
TOTAL U.S. TREASURY NOTES
(Cost $80,687)............................................ 80,684
--------
TOTAL INVESTMENTS
(Cost $378,301)(a) (103.0%)............................... 367,957
Liabilities in excess of other assets (-3.0%).............. (10,763)
--------
TOTAL NET ASSETS (100.0%).................................. $357,194
========
</TABLE>
-----
Percentages indicated are based on net assets of $357,194.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation..... $ 629
Unrealized depreciation..... (10,973)
--------
Net unrealized
depreciation............... $(10,344)
========
ADR--American Depositary Receipt
See accompanying notes to the financial statements.
7
<PAGE>
ULTRASECTOR PROFUNDS
Energy UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $378,301)............................... $367,957
Cash................................................................ 665
Dividends and interest receivable................................... 930
--------
Total Assets....................................................... 369,552
Liabilities:
Unrealized depreciation on swap contracts........................... 12,232
Advisory fees payable............................................... 70
Management servicing fees payable................................... 14
Other accrued expenses.............................................. 42
--------
Total Liabilities.................................................. 12,358
--------
Net Assets........................................................... $357,194
========
Net Assets consist of:
Capital............................................................. $381,105
Accumulated undistributed net investment income..................... 7
Accumulated net realized losses on investments...................... (1,342)
Net unrealized depreciation on investments and swap contracts....... (22,576)
--------
Total Net Assets..................................................... $357,194
========
Investor Shares:
Net Assets.......................................................... $356,350
Shares of Beneficial Interest Outstanding........................... 19,062
Net Asset Value (offering and redemption price per share)........... $ 18.69
========
Service Shares:
Net Assets.......................................................... $ 844
Shares of Beneficial Interest Outstanding........................... 45
Net Asset Value (offering and redemption price per share)........... $ 18.72
========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest............................................................ $ 119
Dividends........................................................... 14
--------
Total Income....................................................... 133
Expenses:
Advisory fees....................................................... 70
Management servicing fees........................................... 14
Other fees.......................................................... 42
--------
Total expenses..................................................... 126
--------
Net Investment Income................................................ 7
--------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments.................................. (1,342)
Net change in unrealized depreciation on investments and swap
contracts.......................................................... (22,576)
--------
Net realized and unrealized losses on investments and swap
contracts......................................................... (23,918)
--------
Decrease In Net Assets Resulting from Operations..................... $(23,911)
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
8
<PAGE>
ULTRASECTOR PROFUNDS
Energy UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 7
Net realized losses on investments................... (1,342)
Net change in unrealized depreciation on investments
and swap contracts.................................. (22,576)
---------
Net decrease in net assets resulting from
operations.......................................... (23,911)
Capital Share Transactions:
Proceeds from shares issued.......................... 486,295
Cost of shares redeemed.............................. (105,190)
---------
Net increase in net assets resulting from capital
share transactions.................................. 381,105
---------
Total increase in net assets......................... 357,194
Net Assets:
Beginning of period.................................. --
---------
End of period........................................ $ 357,194
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
9
<PAGE>
ULTRASECTOR PROFUNDS
Energy UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $20.00
-------- ------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (1.31) (1.28)
-------- ------
Total loss from investment
operations....................... (1.31) (1.28)
-------- ------
Net Asset Value, End of Period..... $ 18.69 $18.72
======== ======
Total Return....................... (6.55)%(b) (6.40)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $356,350 $ 844
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.08%(c) (0.75)%(c)
Portfolio turnover(d).............. 40% 40%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
10
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Financial UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (73.7%)
Market
Shares Value
------- ----------
<S> <C> <C>
AFLAC, Inc. ............................................... 120 $ 5,513
Allstate Corp. ............................................ 360 8,009
AMBAC Financial Group, Inc. ............................... 48 2,631
American Express Co. ...................................... 552 28,772
American General Corp. .................................... 112 6,831
American International Group, Inc. ........................ 624 73,319
AmSouth Bancorporation..................................... 224 3,528
AON Corp. ................................................. 120 3,728
Arden Realty Group, Inc. .................................. 112 2,632
Associates First Capital Corp. ............................ 320 7,140
AvalonBay Communities, Inc. ............................... 72 3,006
AXA Financial, Inc. ....................................... 200 6,800
Bank of America Corp. ..................................... 680 29,239
Bank of New York Co., Inc. ................................ 312 14,507
Bank One Corp. ............................................ 488 12,963
BB&T Corp. ................................................ 184 4,393
Bear Stearns Cos., Inc. ................................... 72 2,997
Boston Properties, Inc. ................................... 72 2,781
BSB Bancorp, Inc. ......................................... 128 2,568
Capital One Financial Corp. ............................... 96 4,284
Charter One Financial, Inc. ............................... 128 2,944
Chase Manhattan Corp. ..................................... 496 22,846
Chubb Corp. ............................................... 80 4,920
Cincinnati Financial Corp. ................................ 88 2,767
Citigroup, Inc. ........................................... 1,368 82,421
CNA Financial Corp. ....................................... 104 3,536
Comerica, Inc. ............................................ 88 3,949
Commerce Bancshares, Inc. ................................. 80 2,380
Donaldson, Lufkin & Jenrette, Inc. ........................ 72 3,056
Duke-Weeks Realty Corp. ................................... 120 2,685
E*TRADE Group, Inc.*....................................... 144 2,376
Edwards (A.G.) Inc. ....................................... 64 2,496
Equity Office Properties Trust............................. 136 3,748
Equity Residential Properties Trust........................ 64 2,944
Fannie Mae................................................. 408 21,293
Fifth Third Bancorp........................................ 136 8,602
First Union Corp. ......................................... 400 9,925
Firstar Corp. ............................................. 432 9,099
Fleet Boston Financial Corp. .............................. 384 13,056
Franklin Resources, Inc. .................................. 128 3,888
Freddie Mac................................................ 288 11,664
Glenborough Realty Trust, Inc. ............................ 160 2,790
Golden West Financial Corp. ............................... 112 4,571
Hartford Financial Services Group, Inc. ................... 104 5,818
Highwoods Properties, Inc. ................................ 104 2,496
Home Properties of New York, Inc. ......................... 96 2,880
Household International, Inc. ............................. 208 8,645
Huntington Bancshares, Inc. ............................... 152 2,404
IRT Property Co. .......................................... 320 2,720
J.P. Morgan & Co. ......................................... 72 7,929
Jefferson-Pilot Corp. ..................................... 64 3,612
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
------- ----------
<S> <C> <C>
KeyCorp.................................................... 240 $ 4,230
Legg Mason, Inc. .......................................... 48 2,400
Lehman Brothers Holdings, Inc. ............................ 56 5,296
Leucadia National Corp. ................................... 104 2,373
Lincoln National Corp. .................................... 104 3,757
Loews Corp. ............................................... 64 3,840
Mack-Cali Realty Corp. .................................... 96 2,466
Marsh & McLennan Cos., Inc. ............................... 120 2,532
Marshall & Ilsley Corp. ................................... 64 2,656
MBIA, Inc. ................................................ 56 2,699
MBNA Corp. ................................................ 360 9,765
Mellon Financial Corp. .................................... 232 8,454
Merrill Lynch & Co., Inc. ................................. 152 17,480
MGIC Investment Corp. ..................................... 56 2,548
Morgan Stanley, Dean Witter & Co. ......................... 472 39,293
National City Corp. ....................................... 304 5,187
Northern Trust Corp. ...................................... 104 6,767
Old Kent Financial Corp. .................................. 95 2,536
Paine Webber Group, Inc. .................................. 80 3,640
People's Bank.............................................. 136 2,499
PNC Bank Corp. ............................................ 136 6,375
Prentiss Properties Trust.................................. 104 2,496
Price (T. Rowe) Associates, Inc. .......................... 72 3,060
Progressive Corp. ......................................... 40 2,960
Prologis Trust............................................. 128 2,728
Providian Financial Corp. ................................. 64 5,760
Public Storage, Inc. ...................................... 120 2,813
Reckson Associates Realty Corp. ........................... 120 2,850
Regions Financial Corp. ................................... 168 3,339
ReliaStar Financial Corp. ................................. 56 2,937
Schwab (Charles) Corp. .................................... 576 19,368
SLM Holding Corp. ......................................... 88 3,295
SouthTrust Corp. .......................................... 120 2,715
Spieker Properties, Inc. .................................. 56 2,646
St. Paul Companies, Inc. .................................. 112 3,822
State Street Corp. ........................................ 72 7,637
Summit Bancorp............................................. 128 3,152
SunTrust Banks, Inc. ...................................... 136 6,214
Synovus Financial Corp. ................................... 184 3,243
Transatlantic Holdings, Inc. .............................. 32 2,680
U.S. Bancorp............................................... 352 6,776
Union Planters Corp. ...................................... 120 3,353
UnionBanCal Corp. ......................................... 136 2,525
UnumProvident Corp. ....................................... 128 2,568
Vornado Realty Trust....................................... 80 2,780
Wachovia Corp. ............................................ 96 5,208
Washington Mutual, Inc. ................................... 280 8,085
Wells Fargo & Co. ......................................... 672 26,039
Zions Bancorporation....................................... 56 2,570
----------
Total Common Stocks
(Cost $811,620)........................................... 780,513
----------
</TABLE>
See accompanying notes to the financial statements.
11
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Financial UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
U.S. Treasury Notes (28.6%)
Principal Market
Amount Value
--------- ----------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00......................................... $304,000 $ 302,813
----------
TOTAL U.S. TREASURY NOTES
(Cost $302,825)......................................... 302,813
----------
TOTAL INVESTMENTS
(Cost $1,114,445)(a) (102.3%)........................... 1,083,326
Liabilities in excess of other assets (-2.3%)............ (24,112)
----------
TOTAL NET ASSETS (100.0%)................................ $1,059,214
==========
</TABLE>
-----
Percentages indicated are based on net assets of $1,059,214.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation........................................ $ 1,287
Unrealized depreciation........................................ (32,406)
--------
Net unrealized depreciation.................................... $(31,119)
========
See accompanying notes to the financial statements.
12
<PAGE>
ULTRASECTOR PROFUNDS
Financial UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $1,114,445)........................... $1,083,326
Cash.............................................................. 867
Dividends and interest receivable................................. 5,062
----------
Total Assets..................................................... 1,089,255
Liabilities:
Unrealized depreciation on swap contracts......................... 29,375
Advisory fees payable............................................. 251
Management servicing fees payable................................. 50
Shareholder servicing fees payable--Service Class................. 214
Other accrued expenses............................................ 151
----------
Total Liabilities................................................ 30,041
----------
Net Assets......................................................... $1,059,214
==========
Net Assets consist of:
Capital........................................................... $1,116,425
Accumulated undistributed net investment income................... 1,539
Accumulated undistributed net realized gains on investments....... 1,744
Net unrealized depreciation on investments and swap contracts..... (60,494)
----------
Total Net Assets................................................... $1,059,214
==========
Investor Shares:
Net Assets........................................................ $ 534,741
Shares of Beneficial Interest Outstanding......................... 28,549
Net Asset Value (offering and redemption price per share)......... $ 18.73
==========
Service Shares:
Net Assets........................................................ $ 524,473
Shares of Beneficial Interest Outstanding......................... 28,008
Net Asset Value (offering and redemption price per share)......... $ 18.73
==========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Dividends.......................................................... $ 1,623
Interest........................................................... 582
--------
Total Income...................................................... 2,205
Expenses:
Advisory fees...................................................... 251
Management servicing fees.......................................... 50
Shareholder servicing fees--Service Class.......................... 214
Other fees......................................................... 151
--------
Total expenses.................................................... 666
--------
Net Investment Income............................................... 1,539
--------
Realized and Unrealized Gains/(Losses) on Investments and Swap
Contracts:
Net realized gains on investments.................................. 1,744
Net change in unrealized depreciation on investments and swap
contracts......................................................... (60,494)
--------
Net realized and unrealized losses on investments and swap
contracts........................................................ (58,750)
--------
Decrease In Net Assets Resulting from Operations.................... $(57,211)
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
13
<PAGE>
ULTRASECTOR PROFUNDS
Financial UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 1,539
Net realized gains on investments.................... 1,744
Net change in unrealized depreciation on investments
and swap contracts.................................. (60,494)
-----------
Net decrease in net assets resulting from
operations.......................................... (57,211)
Capital Share Transactions:
Proceeds from shares issued.......................... 3,259,058
Cost of shares redeemed.............................. (2,142,633)
-----------
Net increase in net assets resulting from capital
share transactions.................................. 1,116,425
-----------
Total increase in net assets......................... 1,059,214
Net Assets:
Beginning of period.................................. --
-----------
End of period........................................ $ 1,059,214
===========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
14
<PAGE>
ULTRASECTOR PROFUNDS
Financial UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income............. 0.03(b) 0.02(b)
Net realized and unrealized loss
on investments and swap
contracts........................ (1.30) (1.29)
-------- --------
Total loss from investment
operations....................... (1.27) (1.27)
-------- --------
Net Asset Value, End of Period..... $ 18.73 $ 18.73
======== ========
Total Return....................... (6.35)%(c) (6.35)%(c)
Ratios/Supplemental Data:
Net assets, end of period.......... $534,741 $524,473
Ratio of expenses to average net
assets............................ 1.35%(d) 2.35%(d)
Ratio of net investment income to
average net assets................ 5.26%(d) 4.25%(d)
Portfolio turnover(e).............. 309% 309%
</TABLE>
-----
(a)Commencement of operations.
(b)Per share net investment income has been calculated using the daily average
shares method.
(c)Not annualized.
(d)Annualized.
(e)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
15
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Healthcare UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (72.7%)
Market
Shares Value
------- ----------
<S> <C> <C>
Abbott Laboratories......................................... 1,133 $ 50,489
Abgenix, Inc.*.............................................. 33 3,955
Aetna, Inc.................................................. 99 6,355
Affymetrix, Inc.*........................................... 22 3,633
Alkermes, Inc.*............................................. 44 2,074
Allergan, Inc............................................... 110 8,195
Alpharma, Inc............................................... 33 2,054
Alza Corp.--Class A*........................................ 77 4,553
American Home Products Corp................................. 946 55,578
Amgen, Inc.*................................................ 737 51,773
Andrx Corp.*................................................ 55 3,516
Aurora Biosciences Corp.*................................... 11 750
Bard (C.R.) Inc............................................. 44 2,118
Bausch & Lomb, Inc.......................................... 44 3,405
Baxter International, Inc................................... 231 16,241
Beckman Coulter, Inc........................................ 33 1,926
Becton, Dickinson & Co...................................... 198 5,680
Bio-Technology General Corp.*............................... 55 725
Biogen, Inc.*............................................... 110 7,095
Biomet, Inc................................................. 88 3,383
Boston Scientific Corp.*.................................... 297 6,515
Bristol-Myers Squibb Co..................................... 1,441 83,938
Cell Genesys, Inc.*......................................... 33 924
Cephalon, Inc.*............................................. 22 1,317
Chiron Corp.*............................................... 143 6,793
CIGNA Corp.................................................. 121 11,313
Coherent, Inc.*............................................. 22 1,845
COR Therapeutics, Inc.*..................................... 22 1,877
Cytyc Corp.*................................................ 22 1,174
Dentsply International, Inc................................. 55 1,695
Edwards Lifesciences Corp.*................................. 44 842
Eli Lilly & Co.............................................. 803 80,200
Emisphere Technologies, Inc.*............................... 22 937
Enzo Biochem, Inc.*......................................... 22 1,518
Enzon, Inc.*................................................ 33 1,403
Forest Laboratories, Inc.--Class A*......................... 66 6,666
Gene Logic, Inc.*........................................... 22 785
Genome Therapeutics Corp.*.................................. 22 670
Genzyme Corp.--General Division*............................ 66 3,923
Geron Corp.*................................................ 22 704
Gilead Sciences, Inc.*...................................... 33 2,347
Guidant Corp.*.............................................. 220 10,889
HCA-The Healthcare Co....................................... 396 12,028
Health Management Associates, Inc.--Class A*................ 176 2,299
Healthsouth Corp.*.......................................... 275 1,977
Hillenbrand Industries, Inc................................. 66 2,067
Human Genome Sciences, Inc.*................................ 44 5,869
ICN Pharmaceuticals, Inc.................................... 66 1,836
ICOS Corp.*................................................. 44 1,936
IDEC Pharmaceuticals Corp.*................................. 33 3,871
IDEXX Laboratories, Inc.*................................... 44 1,007
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
------- ----------
<S> <C> <C>
ImClone Systems, Inc.*...................................... 22 $ 1,682
Immunex Corp.*.............................................. 352 17,402
Incyte Genomics, Inc.*...................................... 22 1,808
Inhale Therapeutic Systems, Inc.*........................... 22 2,232
IVAX Corp.*................................................. 132 5,478
Johnson & Johnson........................................... 1,012 103,097
Jones Pharma, Inc........................................... 55 2,197
King Pharmaceuticals, Inc.*................................. 66 2,896
Ligand Pharmaceuticals, Inc.--Class B*...................... 55 725
Lincare Holdings, Inc.*..................................... 44 1,084
Mallinckrodt, Inc........................................... 66 2,867
Medarex, Inc.*.............................................. 22 1,859
Medical Manager Corp.*...................................... 33 1,124
Medicis Pharmaceutical Corp.*............................... 33 1,881
MedImmune, Inc.*............................................ 143 10,582
Medtronic, Inc.............................................. 858 42,738
Merck & Co., Inc............................................ 1,694 129,803
Millennium Pharmaceuticals, Inc.*........................... 66 7,384
MiniMed, Inc.*.............................................. 22 2,596
Mylan Laboratories, Inc..................................... 121 2,208
Myriad Genetics, Inc.*...................................... 11 1,629
Omnicare, Inc............................................... 66 598
Oxford Health Plans, Inc.*.................................. 66 1,572
PacifiCare Health Systems, Inc.*............................ 22 1,324
Patterson Dental Co.*....................................... 33 1,683
PE Corp.--PE Biosystems Group............................... 143 9,420
Pfizer, Inc................................................. 3,597 172,656
Pharmacia Corp.............................................. 902 46,622
Pharmacyclics, Inc.*........................................ 11 671
Protein Design Labs, Inc.*.................................. 11 1,814
Regeneron Pharmaceuticals, Inc.*............................ 33 984
Schering-Plough Corp........................................ 1,078 54,439
Sepracor, Inc.*............................................. 55 6,634
SICOR, Inc.*................................................ 88 704
St. Jude Medical, Inc.*..................................... 66 3,028
Stryker Corp................................................ 143 6,256
Summit Technology, Inc.*.................................... 33 623
SuperGen, Inc.*............................................. 33 1,196
Sybron International Corp.*................................. 88 1,744
Syncor International Corp.*................................. 22 1,584
Techne Corp.*............................................... 22 2,860
Tenet Healthcare Corp.*..................................... 231 6,237
Trigon Healthcare, Inc.*.................................... 33 1,702
UnitedHealth Group, Inc..................................... 121 10,376
Universal Health Services, Inc.--Class B*................... 22 1,452
Vertex Pharmaceuticals, Inc.*............................... 22 2,318
VISX, Inc.*................................................. 44 1,235
Watson Pharmaceuticals, Inc.*............................... 88 4,730
Wellpoint Health Networks, Inc.*............................ 55 3,984
----------
TOTAL COMMON STOCKS (Cost $1,155,305)....................... 1,186,381
----------
</TABLE>
See accompanying notes to the financial statements.
16
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Healthcare UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
U.S. Treasury Notes (26.1%)
Principal Market
Amount Value
--------- ----------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00.......................................... $428,000 $ 426,328
----------
TOTAL U.S. TREASURY NOTES (Cost $426,346)................. 426,328
----------
TOTAL INVESTMENTS (Cost $1,581,651)(a) (98.8%)............ 1,612,709
Other assets in excess of liabilities (1.2%).............. 20,178
----------
TOTAL NET ASSETS (100.0%)................................. $1,632,887
==========
</TABLE>
-----
Percentages indicated are based on net assets of $1,632,887.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized appreciation........ $ 51,136
Unrealized depreciation........ (20,078)
--------
Net unrealized appreciation.... $ 31,058
========
See accompanying notes to the financial statements.
17
<PAGE>
ULTRASECTOR PROFUNDS
Healthcare UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $1,581,651)........................... $1,612,709
Unrealized appreciation on swap contracts......................... 15,526
Cash.............................................................. 373
Dividends and interest receivable................................. 4,961
----------
Total Assets..................................................... 1,633,569
Liabilities:
Advisory fees payable............................................. 369
Management servicing fees payable................................. 74
Shareholder servicing fees payable--Service Class................. 17
Other accrued expenses............................................ 222
----------
Total Liabilities................................................ 682
----------
Net Assets......................................................... $1,632,887
==========
Net Assets consist of:
Capital........................................................... $1,599,170
Accumulated undistributed net investment income................... 273
Accumulated net realized losses on investments.................... (13,140)
Net unrealized appreciation on investments and swap contracts..... 46,584
----------
Total Net Assets................................................... $1,632,887
==========
Investor Shares:
Net Assets........................................................ $1,572,137
Shares of Beneficial Interest Outstanding......................... 75,091
Net Asset Value (offering and redemption price per share)......... $ 20.94
==========
Service Shares:
Net Assets........................................................ $ 60,750
Shares of Beneficial Interest Outstanding......................... 2,902
Net Asset Value (offering and redemption price per share)......... $ 20.93
==========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest........................................................... $ 836
Dividends.......................................................... 119
--------
Total Income...................................................... 955
Expenses:
Advisory fees...................................................... 369
Management servicing fees.......................................... 74
Shareholder servicing fees--Service Class.......................... 17
Other fees......................................................... 222
--------
Total expenses.................................................... 682
--------
Net Investment Income............................................... 273
--------
Realized and Unrealized Gains/(Losses) on Investments and Swap
Contracts:
Net realized losses on investments................................. (13,140)
Net change in unrealized appreciation on investments and swap
contracts......................................................... 46,584
--------
Net realized and unrealized gains on investments and swap
contracts........................................................ 33,444
--------
Increase In Net Assets Resulting from Operations.................... $ 33,717
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
18
<PAGE>
ULTRASECTOR PROFUNDS
Healthcare UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 273
Net realized losses on investments................... (13,140)
Net change in unrealized appreciation on investments
and swap contracts.................................. 46,584
----------
Net increase in net assets resulting from
operations.......................................... 33,717
Capital Share Transactions:
Proceeds from shares issued.......................... 2,552,804
Cost of shares redeemed.............................. (953,634)
----------
Net increase in net assets resulting from capital
share transactions.................................. 1,599,170
----------
Total increase in net assets......................... 1,632,887
Net Assets:
Beginning of period.................................. --
----------
End of period........................................ $1,632,887
==========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
19
<PAGE>
ULTRASECTOR PROFUNDS
Healthcare UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
---------- -------
Net investment income/(loss)...... -- --
Net realized and unrealized gain
on investments and swap
contracts........................ 0.94 0.93
---------- -------
Total income from investment
operations....................... 0.94 0.93
---------- -------
Net Asset Value, End of Period..... $ 20.94 $ 20.93
========== =======
Total Return....................... 4.70%(b) 4.65%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $1,572,137 $60,750
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.59%(c) (0.40)%(c)
Portfolio turnover(d).............. 103% 103%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
20
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Internet UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (68.3%)
Market
Shares Value
------ --------
<S> <C> <C>
Akamai Technologies, Inc.*..................................... 160 $ 18,998
Amazon.com, Inc.*.............................................. 145 5,265
America Online, Inc.*.......................................... 790 41,672
Ameritrade Holding Corp.--Class A*............................. 270 3,139
Ariba, Inc.*................................................... 295 28,924
At Home Corp.--Class A*........................................ 535 11,101
BEA Systems, Inc.*............................................. 575 28,427
BroadVision, Inc.*............................................. 365 18,547
Check Point Software Technologies Ltd.*........................ 115 24,351
CheckFree Holdings Corp.*...................................... 90 4,641
CMGI, Inc.*.................................................... 400 18,325
CNET Networks, Inc.*........................................... 130 3,193
Commerce One, Inc.*............................................ 225 10,213
Covad Communications Group, Inc.*.............................. 225 3,628
Digital Island, Inc.*.......................................... 95 4,619
DoubleClick, Inc.*............................................. 180 6,863
E*TRADE Group, Inc.*........................................... 380 6,270
EarthLink, Inc.*............................................... 180 2,779
eBay, Inc.*.................................................... 110 5,975
eToys, Inc.*................................................... 185 1,174
Exodus Communications, Inc.*................................... 640 29,479
Go2Net, Inc.*.................................................. 45 2,264
Healtheon/WebMD Corp.*......................................... 335 4,962
I2 Technologies, Inc.*......................................... 285 29,716
InfoSpace, Inc.*............................................... 355 19,613
Inktomi Corp.*................................................. 170 20,103
Internet Capital Group, Inc.*.................................. 390 14,436
Lycos, Inc.*................................................... 105 5,670
MP3.com, Inc.*................................................. 105 1,424
priceline.com, Inc.*........................................... 155 5,888
PSInet, Inc.*.................................................. 290 7,286
RealNetworks, Inc.*............................................ 235 11,882
Tibco Software, Inc.*.......................................... 290 31,098
Ticketmaster Online-CitySearch, Inc.*.......................... 135 2,152
Verio, Inc.*................................................... 120 6,658
VeriSign, Inc.*................................................ 265 46,772
VerticalNet, Inc.*............................................. 110 4,063
Vignette Corp.*................................................ 280 14,564
Webvan Group, Inc.*............................................ 485 3,531
Yahoo!, Inc.*.................................................. 50 6,194
--------
TOTAL COMMON STOCKS
(Cost $537,310)............................................... 515,859
--------
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Notes (35.2%)
Principal Market
Amount Value
--------- --------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00............................................ $267,000 $265,957
--------
TOTAL U.S. TREASURY NOTES
(Cost $265,968)............................................ 265,957
--------
TOTAL INVESTMENTS
(Cost $803,278)(a) (103.5%)................................ 781,816
Liabilities in excess of other assets (-3.5%)............... (26,523)
--------
TOTAL NET ASSETS (100.0%)................................... $755,293
========
</TABLE>
-----
Percentages indicated are based on net assets of $755,293.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation........ $ 15,604
Unrealized depreciation........ (37,066)
--------
Net unrealized depreciation.... $(21,462)
========
See accompanying notes to the financial statements.
21
<PAGE>
ULTRASECTOR PROFUNDS
Internet UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $803,278)............................... $781,816
Cash................................................................ 194
Dividends and interest receivable................................... 3,020
--------
Total Assets....................................................... 785,030
Liabilities:
Unrealized depreciation on swap contracts........................... 29,306
Advisory fees payable............................................... 167
Management servicing fees payable................................... 33
Shareholder servicing fees payable--Service Class................... 131
Other accrued expenses.............................................. 100
--------
Total Liabilities.................................................. 29,737
--------
Net Assets........................................................... $755,293
========
Net Assets consist of:
Capital............................................................. $812,635
Accumulated net investment loss..................................... (52)
Accumulated net realized losses on investments...................... (6,522)
Net unrealized depreciation on investments and swap contracts....... (50,768)
--------
Total Net Assets..................................................... $755,293
========
Investor Shares:
Net Assets.......................................................... $214,931
Shares of Beneficial Interest Outstanding........................... 10,932
Net Asset Value (offering and redemption price per share)........... $ 19.66
========
Service Shares:
Net Assets.......................................................... $540,362
Shares of Beneficial Interest Outstanding........................... 27,488
Net Asset Value (offering and redemption price per share)........... $ 19.66
========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest............................................................ $ 379
Expenses:
Advisory fees....................................................... 167
Management servicing fees........................................... 33
Shareholder servicing fees--Service Class........................... 131
Other fees.......................................................... 100
--------
Total expenses..................................................... 431
--------
Net Investment Loss.................................................. (52)
--------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments.................................. (6,522)
Net change in unrealized depreciation on investments and swap
contracts.......................................................... (50,768)
--------
Net realized and unrealized losses on investments and swap
contracts......................................................... (57,290)
--------
Decrease In Net Assets Resulting from Operations..................... $(57,342)
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
22
<PAGE>
ULTRASECTOR PROFUNDS
Internet UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment loss.................................. $ (52)
Net realized losses on investments................... (6,522)
Net change in unrealized depreciation on investments
and swap contracts.................................. (50,768)
----------
Net decrease in net assets resulting from
operations.......................................... (57,342)
Capital Share Transactions:
Proceeds from shares issued.......................... 1,010,912
Cost of shares redeemed.............................. (198,277)
----------
Net increase in net assets resulting from capital
share transactions.................................. 812,635
----------
Total increase in net assets......................... 755,293
Net Assets:
Beginning of period.................................. --
----------
End of period........................................ $ 755,293
==========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
23
<PAGE>
ULTRASECTOR PROFUNDS
Internet UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (0.34) (0.34)
-------- --------
Total loss from investment
operations....................... (0.34) (0.34)
-------- --------
Net Asset Value, End of Period..... $ 19.66 $ 19.66
======== ========
Total Return....................... (1.70)%(b) (1.70)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $214,931 $540,362
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.36%(c) (0.66)%(c)
Portfolio turnover(d).............. 55% 55%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
24
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Pharmaceuticals UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (75.2%)
Market
Shares Value
------ --------
<S> <C> <C>
Allergan, Inc. ................................................ 30 $ 2,235
Alpharma, Inc. ................................................ 10 623
Alza Corp.--Class A*........................................... 22 1,301
American Home Products Corp. .................................. 260 15,275
Andrx Corp.*................................................... 14 895
Anesta Corp.*.................................................. 4 100
Bristol-Myers Squibb Co. ...................................... 394 22,950
Catalytica, Inc.*.............................................. 10 110
Cephalon, Inc.*................................................ 6 359
Chattem, Inc.*................................................. 6 82
Columbia Laboratories, Inc.*................................... 10 58
Coulter Pharmaceutical, Inc.*.................................. 4 82
Dura Pharmaceuticals, Inc.*.................................... 12 173
Eli Lilly & Co. ............................................... 218 21,772
Emisphere Technologies, Inc.*.................................. 4 170
Forest Laboratories, Inc.--Class A*............................ 18 1,818
ICN Pharmaceuticals, Inc. ..................................... 18 501
Inhale Therapeutic Systems, Inc.*.............................. 4 406
IVAX Corp.*.................................................... 34 1,411
Johnson & Johnson.............................................. 278 28,321
Jones Pharma, Inc. ............................................ 14 559
King Pharmaceuticals, Inc.*.................................... 18 790
KOS Pharmaceuticals, Inc.*..................................... 6 96
MacroChem Corp.*............................................... 8 39
Medicis Pharmaceutical Corp.*.................................. 6 342
Merck & Co., Inc. ............................................. 408 31,262
Mylan Laboratories, Inc. ...................................... 32 584
Noven Pharmaceuticals, Inc.*................................... 6 180
Pfizer, Inc. .................................................. 1,122 53,855
Pharmacia Corp. ............................................... 246 12,715
SangStat Medical Corp.*........................................ 4 116
Schering-Plough Corp. ......................................... 294 14,847
Sepracor, Inc.*................................................ 14 1,689
SuperGen, Inc.*................................................ 6 218
Watson Pharmaceuticals, Inc.*.................................. 22 1,183
Zila, Inc.*.................................................... 12 46
--------
TOTAL COMMON STOCKS
(Cost $208,470)............................................... 217,163
--------
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Notes (16.9%)
Principal Market
Amount Value
--------- --------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00............................................ $49,000 $ 48,809
--------
TOTAL U.S. TREASURY NOTES
(Cost $48,811)............................................. 48,809
--------
TOTAL INVESTMENTS
(Cost $257,281)(a) (92.1%)................................. 265,972
Other assets in excess of liabilities (7.9%)................ 22,760
--------
TOTAL NET ASSETS (100.0%)................................... $288,732
========
</TABLE>
-----
Percentages indicated are based on net assets of $288,732.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized appreciation........ $9,031
Unrealized depreciation........ (340)
------
Net unrealized appreciation.... $8,691
======
See accompanying notes to the financial statements.
25
<PAGE>
ULTRASECTOR PROFUNDS
Pharmaceuticals UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $257,281)................................ $265,972
Unrealized appreciation on swap contracts............................ 21,722
Cash................................................................. 524
Dividends and interest receivable.................................... 584
--------
Total Assets........................................................ 288,802
Liabilities:
Advisory fees payable................................................ 25
Management servicing fees payable.................................... 5
Shareholder servicing fees payable--Service Class.................... 25
Other accrued expenses............................................... 15
--------
Total Liabilities................................................... 70
--------
Net Assets............................................................ $288,732
========
Net Assets consist of:
Capital.............................................................. $245,147
Accumulated undistributed net investment income...................... 2
Accumulated undistributed net realized gains on investments.......... 13,170
Net unrealized appreciation on investments and swap contracts........ 30,413
--------
Total Net Assets...................................................... $288,732
========
Investor Shares:
Net Assets........................................................... $288,711
Shares of Beneficial Interest Outstanding............................ 13,554
Net Asset Value (offering and redemption price per share)............ $ 21.30
========
Service Shares:
Net Assets........................................................... $ 21
Shares of Beneficial Interest Outstanding............................ 1
Net Asset Value (offering and redemption price per share)............ $ 21.30
========
</TABLE>
Statement of Operations
For the period June 29, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest.............................................................. $ 43
Dividends............................................................. 29
-------
Total Income......................................................... 72
Expenses:
Advisory fees......................................................... 25
Management servicing fees............................................. 5
Shareholder servicing fees--Service Class............................. 25
Other fees............................................................ 15
-------
Total expenses....................................................... 70
-------
Net Investment Income.................................................. 2
-------
Realized and Unrealized Gains on Investments and Swap Contracts:
Net realized gains on investments..................................... 13,170
Net change in unrealized appreciation on investments and swap
contracts............................................................ 30,413
-------
Net realized and unrealized gains on investments and swap
contracts........................................................... 43,583
-------
Increase In Net Assets Resulting from Operations....................... $43,585
=======
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
26
<PAGE>
ULTRASECTOR PROFUNDS
Pharmaceuticals UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 29, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 2
Net realized gains on investments.................... 13,170
Net change in unrealized appreciation on investments
and swap contracts.................................. 30,413
----------
Net increase in net assets resulting from
operations.......................................... 43,585
Capital Share Transactions:
Proceeds from shares issued.......................... 1,205,227
Cost of shares redeemed.............................. (960,080)
----------
Net increase in net assets resulting from capital
share transactions.................................. 245,147
----------
Total increase in net assets......................... 288,732
Net Assets:
Beginning of period.................................. --
----------
End of period........................................ $ 288,732
==========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
27
<PAGE>
ULTRASECTOR PROFUNDS
Pharmaceuticals UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 29, 2000(a) June 29, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $20.00
-------- ------
Net investment income/(loss)...... -- (b) -- (b)
Net realized and unrealized gain
on investments and swap
contracts........................ 1.30 1.30
-------- ------
Total income from investment
operations....................... 1.30 1.30
-------- ------
Net Asset Value, End of Period..... $ 21.30 $21.30
======== ======
Total Return....................... 6.50%(c) 6.50%(c)
Ratios/Supplemental Data:
Net assets, end of period.......... $288,711 $ 21
Ratio of expenses to average net
assets............................ 1.35%(d) 2.35%(d)
Ratio of net investment
income/(loss) to average net
assets............................ 0.79%(d) (0.16)%(d)
Portfolio turnover(e).............. 248% 248%
</TABLE>
-----
(a)Commencement of operations.
(b)Per share net investment income has been calculated using the daily average
shares method.
(c)Not annualized.
(d)Annualized.
(e)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
28
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Real Estate UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (73.7%)
Market
Shares Value
--------- -----------
<S> <C> <C>
AMB Property Corp. ..................................... 9,877 $ 225,319
Apartment Investment & Management....................... 7,616 329,392
Archstone Communities Trust............................. 15,827 333,356
Arden Realty Group, Inc. ............................... 7,140 167,790
Associated Estates Realty Corp. ........................ 2,499 17,493
AvalonBay Communities, Inc. ............................ 7,497 313,000
Boston Properties, Inc. ................................ 7,735 298,764
Brandywine Realty Trust................................. 4,284 81,932
BRE Properties, Inc.--Class A........................... 5,117 147,753
Burnham Pacific Properties, Inc. ....................... 3,689 25,362
Camden Property Trust................................... 4,522 132,834
Capital Automotive Real Estate Investment Trust......... 2,499 35,298
CBL & Associates Properties, Inc. ...................... 2,856 71,222
Chelsea GCA Realty, Inc. ............................... 1,785 61,694
Colonial Properties Trust............................... 2,618 71,668
Cousins Properties, Inc. ............................... 3,689 142,027
Crescent Real Estate Equities Co. ...................... 13,685 280,543
Crown American Realty Trust............................. 2,975 15,991
Developers Diversified Realty Corp. .................... 6,783 101,321
Duke-Weeks Realty Corp. ................................ 14,280 319,515
Equity Inns, Inc. ...................................... 4,284 26,240
Equity Office Properties Trust.......................... 28,130 775,332
Equity Residential Properties Trust..................... 14,399 662,353
Fairfield Communities, Inc.*............................ 4,998 39,359
Federal Realty Investment Trust......................... 4,641 92,820
FelCor Lodging Trust, Inc. ............................. 6,307 116,680
First Industrial Realty Trust, Inc. .................... 4,284 126,378
First Union Real Estate Equity & Mortgage Investments... 4,879 14,332
General Growth Properties............................... 5,831 185,134
Glenborough Realty Trust, Inc. ......................... 3,570 62,252
Health Care Property Investors, Inc. ................... 5,831 158,895
Health Care REIT, Inc. ................................. 3,213 52,211
Healthcare Realty Trust, Inc. .......................... 4,522 77,157
Highwoods Properties, Inc. ............................. 7,021 168,504
Home Properties of New York, Inc. ...................... 2,142 64,260
homestore.com, Inc.*.................................... 8,449 246,605
Hospitality Properties Trust............................ 6,426 144,987
Host Marriott Corp. .................................... 26,061 244,322
HRPT Properties Trust................................... 14,994 91,838
IndyMac Mortgage Holdings, Inc. ........................ 9,163 124,273
IRT Property Co. ....................................... 3,808 32,368
iStar Financial, Inc. .................................. 9,639 201,817
JDN Realty Corp. ....................................... 3,808 38,794
Kilroy Realty Corp. .................................... 3,213 83,337
Kimco Realty Corp. ..................................... 6,902 282,982
Koger Equity, Inc. ..................................... 3,094 52,211
Liberty Property Trust.................................. 7,616 197,540
LNR Property Corp. ..................................... 2,856 55,692
Macerich Co. ........................................... 3,927 86,639
Mack-Cali Realty Corp. ................................. 6,664 171,182
Manufactured Home Communities, Inc. .................... 2,737 65,517
Meditrust Corp.*........................................ 16,184 60,690
Meristar Hospitality Corp. ............................. 5,474 114,954
Mills Corp. ............................................ 2,737 51,490
Nationwide Health Properties, Inc. ..................... 5,236 72,977
New Plan Excel Realty Trust............................. 10,115 131,495
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
---------- -----------
<S> <C> <C>
Post Properties, Inc. ................................. 4,403 $ 193,732
Prentiss Properties Trust.............................. 4,284 102,816
Prologis Trust......................................... 18,326 390,572
Public Storage, Inc. .................................. 14,756 345,843
Reckson Associates Realty Corp. ....................... 4,641 110,224
RFS Hotel Investors, Inc. ............................. 2,856 33,558
Rouse Co. ............................................. 8,211 203,222
Security Capital Group, Inc.*.......................... 6,307 107,219
Shurgard Storage Centers, Inc.--Class A................ 3,332 74,970
Simon Property Group, Inc. ............................ 20,111 446,212
SL Green Realty Corp. ................................. 2,737 73,215
Spieker Properties, Inc. .............................. 7,378 339,387
St. Joe Co. ........................................... 9,877 296,311
Storage USA, Inc. ..................................... 3,213 94,784
Thornburg Mortgage Asset Corp. ........................ 2,499 17,962
Town & Country Trust................................... 1,785 30,680
Urban Shopping Centers, Inc. .......................... 2,023 68,150
Ventas, Inc. .......................................... 7,735 24,655
Vornado Realty Trust................................... 9,758 339,090
Weingarten Realty Investors............................ 2,975 120,116
-----------
TOTAL COMMON STOCKS
(Cost $12,144,210).................................... 11,758,609
-----------
<CAPTION>
U.S. Treasury Notes (26.5%)
Principal
Amount
----------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00....................................... $4,240,000 4,223,438
-----------
TOTAL U.S. TREASURY NOTES
(Cost $4,223,618)..................................... 4,223,438
-----------
TOTAL INVESTMENTS
(Cost $16,367,828)(a) (100.2%)........................ 15,982,047
Liabilities in excess of
other assets (-0.2%).................................. (38,233)
-----------
TOTAL NET ASSETS (100.0%).............................. $15,943,814
===========
</TABLE>
-----
Percentages indicated are based on net assets of $15,943,814.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation....................................... $ 68,684
Unrealized depreciation....................................... (454,465)
---------
Net unrealized depreciation................................... $(385,781)
=========
See accompanying notes to the financial statements.
29
<PAGE>
ULTRASECTOR PROFUNDS
Real Estate UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $16,367,828)......................... $15,982,047
Cash............................................................. 552
Dividends and interest receivable................................ 119,130
Receivable for investments sold.................................. 201,054
-----------
Total Assets.................................................... 16,302,783
Liabilities:
Unrealized depreciation on swap contracts........................ 348,834
Advisory fees payable............................................ 3,344
Management servicing fees payable................................ 669
Shareholder servicing fees payable--Service Class................ 4,365
Other accrued expenses........................................... 1,757
-----------
Total Liabilities............................................... 358,969
-----------
Net Assets........................................................ $15,943,814
===========
Net Assets consist of:
Capital.......................................................... $16,622,694
Accumulated undistributed net investment income.................. 68,307
Accumulated net realized losses on investments................... (12,572)
Net unrealized depreciation on investments and swap contracts.... (734,615)
-----------
Total Net Assets.................................................. $15,943,814
===========
Investor Shares:
Net Assets....................................................... $ 88,523
Shares of Beneficial Interest Outstanding........................ 4,545
Net Asset Value (offering and redemption price per share)........ $ 19.48
===========
Service Shares:
Net Assets....................................................... $15,855,291
Shares of Beneficial Interest Outstanding........................ 814,476
Net Asset Value (offering and redemption price per share)........ $ 19.47
===========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Dividends.......................................................... $ 71,185
Interest........................................................... 7,506
---------
Total Income...................................................... 78,691
Expenses:
Advisory fees...................................................... 3,344
Management servicing fees.......................................... 669
Shareholder servicing fees--Service Class.......................... 4,365
Other fees......................................................... 2,006
---------
Total expenses.................................................... 10,384
---------
Net Investment Income............................................... 68,307
---------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments................................. (12,572)
Net change in unrealized depreciation on investments and swap
contracts......................................................... (734,615)
---------
Net realized and unrealized losses on investments and swap
contracts........................................................ (747,187)
---------
Decrease In Net Assets Resulting from Operations.................... $(678,880)
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
30
<PAGE>
ULTRASECTOR PROFUNDS
Real Estate UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 68,307
Net realized losses on investments................... (12,572)
Net change in unrealized depreciation on investments
and swap contracts.................................. (734,615)
-----------
Net decrease in net assets resulting from
operations.......................................... (678,880)
Capital Share Transactions:
Proceeds from shares issued.......................... 17,453,041
Cost of shares redeemed.............................. (830,347)
-----------
Net increase in net assets resulting from capital
share transactions.................................. 16,622,694
-----------
Total increase in net assets......................... 15,943,814
Net Assets:
Beginning of period.................................. --
-----------
End of period........................................ $15,943,814
===========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
31
<PAGE>
ULTRASECTOR PROFUNDS
Real Estate UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
------- -----------
Net investment income............. 0.10(b) 0.09(b)
Net realized and unrealized loss
on investments and swap
contracts........................ (0.62) (0.62)
------- -----------
Total loss from investment
operations....................... (0.52) (0.53)
------- -----------
Net Asset Value, End of Period..... $ 19.48 $ 19.47
======= ===========
Total Return....................... (2.60)%(c) (2.65)%(c)
Ratios/Supplemental Data:
Net assets, end of period.......... $88,523 $15,855,291
Ratio of expenses to average net
assets............................ 1.35%(d) 2.35%(d)
Ratio of net investment income to
average net assets................ 16.37%(d) 15.36%(d)
Portfolio turnover(e).............. 10% 10%
</TABLE>
-----
(a)Commencement of operations.
(b)Per share net investment income has been calculated using the daily average
shares method.
(c)Not annualized.
(d)Annualized.
(e)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
32
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Semiconductor UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (72.4%)
Market
Shares Value
------- ----------
<S> <C> <C>
3Dfx Interactive, Inc.*..................................... 36 $ 280
Actel Corp.*................................................ 72 3,285
Advanced Micro Devices, Inc.*............................... 153 11,819
Alliance Semiconductor Corp.*............................... 72 1,769
Alpha Industries, Inc.*..................................... 45 1,983
Altera Corp.*............................................... 216 22,019
Amkor Technology, Inc.*..................................... 135 4,767
Anadigics, Inc.*............................................ 27 920
Analog Devices*............................................. 351 26,675
Applied Materials, Inc.*.................................... 756 68,513
Applied Micro Circuits Corp.*............................... 99 9,776
Asyst Technologies, Inc.*................................... 27 925
Atmel Corp.*................................................ 216 7,965
Broadcom Corp.*............................................. 162 35,468
Brooks Automation, Inc.*.................................... 18 1,151
Burr-Brown Corp.*........................................... 126 10,923
C-Cube Microsystems, Inc.*.................................. 117 2,296
Cohu, Inc. ................................................. 99 2,670
Conexant Systems, Inc.*..................................... 180 8,753
Credence Systems Corp.*..................................... 54 2,980
Cree Research, Inc.*........................................ 36 4,806
Cypress Semiconductor Corp.*................................ 162 6,845
Dallas Semiconductor Corp. ................................. 270 11,003
DSP Group, Inc.*............................................ 27 1,512
Electroglas, Inc.*.......................................... 54 1,161
Emcore Corp.*............................................... 18 2,160
ESS Technology, Inc.*....................................... 81 1,175
Exar Corp.*................................................. 27 2,354
Fairchild Semiconductor International, Inc.*................ 135 5,468
FSI International, Inc.*.................................... 45 976
GlobeSpan, Inc.*............................................ 54 6,592
hi/fn, inc.*................................................ 45 1,997
Innovex, Inc.*.............................................. 162 1,580
Integrated Device Technology, Inc.*......................... 126 7,544
Intel Corp. ................................................ 1,026 137,162
Jabil Circuit, Inc.*........................................ 189 9,379
KEMET Corp.*................................................ 162 4,060
KLA-Tencor Corp.*........................................... 180 10,541
Kopin Corp.*................................................ 45 3,116
Kulicke & Soffa Industries, Inc.*........................... 36 2,137
Lam Research Corp.*......................................... 108 4,050
Lattice Semiconductor Corp.*................................ 99 6,843
Linear Technology Corp. .................................... 423 27,045
LSI Logic Corp.*............................................ 315 17,049
LTX Corp.*.................................................. 36 1,258
Maxim Integrated Products, Inc.*............................ 360 24,458
Micrel, Inc.*............................................... 144 6,255
Microchip Technology, Inc.*................................. 153 8,915
Micron Technology, Inc.*.................................... 468 41,213
MMC Networks, Inc.*......................................... 36 1,923
National Semiconductor Corp.*............................... 216 12,258
NeoMagic Corp.*............................................. 207 627
Novellus Systems, Inc.*..................................... 126 7,127
NVIDIA Corp.*............................................... 54 3,432
Oak Technology, Inc.*....................................... 90 1,941
Photronics, Inc.*........................................... 72 2,043
PMC-Sierra, Inc.*........................................... 117 20,789
PRI Automation, Inc.*....................................... 27 1,766
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
--------- ----------
<S> <C> <C>
QLogic Corp.*............................................ 63 $ 4,162
Rambus, Inc.*............................................ 81 8,343
RF Micro Devices, Inc.*.................................. 72 6,309
S3, Inc.*................................................ 126 1,859
Sanmina Corp.*........................................... 200 17,066
Semtech Corp.*........................................... 63 4,819
Silicon Storage Technology, Inc.*........................ 27 2,384
Silicon Valley Group, Inc.*.............................. 171 4,425
SpeedFam-IPEC, Inc.*..................................... 81 1,473
Standard Microsystems Corp.*............................. 378 5,812
Teradyne, Inc.*.......................................... 162 11,907
Texas Instruments, Inc................................... 1,548 106,328
Transwitch Corp.*........................................ 36 2,779
Triquint Semiconductor, Inc.*............................ 45 4,306
Ultratech Stepper, Inc.*................................. 117 1,740
Vitesse Semiconductor Corp.*............................. 162 11,917
Xilinx, Inc.*............................................ 333 27,493
----------
TOTAL COMMON STOCKS
(Cost $920,079)......................................... 858,619
----------
U.S. Treasury Notes (32.5%)
<CAPTION>
Principal
Amount
---------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00......................................... $386,000 384,492
----------
TOTAL U.S. TREASURY NOTES
(Cost $384,508)......................................... 384,492
----------
TOTAL INVESTMENTS
(Cost $1,304,587)(a) (104.9%)........................... 1,243,111
Liabilities in excess of other assets (-4.9)%............ (58,589)
----------
TOTAL NET ASSETS 100.0%.................................. $1,184,522
==========
</TABLE>
-----
Percentages indicated are based on net assets of $1,184,522.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation..... $ 14,953
Unrealized depreciation..... (76,429)
--------
Net unrealized
depreciation............... $(61,476)
========
See accompanying notes to the financial statements.
33
<PAGE>
ULTRASECTOR PROFUNDS
Semiconductor UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $1,304,587)........................... $1,243,111
Cash.............................................................. 347
Dividends and interest receivable................................. 4,368
----------
Total Assets..................................................... 1,247,826
Liabilities:
Unrealized depreciation on swap contracts......................... 62,806
Advisory fees payable............................................. 199
Management servicing fees payable................................. 40
Shareholder servicing fees payable--Service Class................. 140
Other accrued expenses............................................ 119
----------
Total Liabilities................................................ 63,304
----------
Net Assets......................................................... $1,184,522
==========
Net Assets consist of:
Capital........................................................... $1,308,819
Accumulated net investment loss................................... (15)
Net unrealized depreciation on investments and swap contracts..... (124,282)
----------
Total Net Assets................................................... $1,184,522
==========
Investor Shares:
Net Assets........................................................ $ 507,048
Shares of Beneficial Interest Outstanding......................... 28,161
Net Asset Value (offering and redemption price per share)......... $ 18.01
==========
Service Shares:
Net Assets........................................................ $ 677,474
Shares of Beneficial Interest Outstanding......................... 37,651
Net Asset Value (offering and redemption price per share)......... $ 17.99
==========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest........................................................... $ 482
Dividends.......................................................... 1
---------
Total Income...................................................... 483
Expenses:
Advisory fees...................................................... 199
Management servicing fees.......................................... 40
Shareholder servicing fees-- Service Class......................... 140
Other fees......................................................... 119
---------
Total expenses.................................................... 498
---------
Net Investment Loss................................................. (15)
---------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net change in unrealized depreciation on investments and swap
contracts......................................................... (124,282)
---------
Decrease In Net Assets Resulting from Operations.................... $(124,297)
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
34
<PAGE>
ULTRASECTOR PROFUNDS
Semiconductor UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment loss.................................. $ (15)
Net change in unrealized depreciation on investments
and swap contracts.................................. (124,282)
----------
Net decrease in net assets resulting from
operations.......................................... (124,297)
Capital Share Transactions:
Proceeds from shares issued.......................... 1,728,181
Cost of shares redeemed.............................. (419,362)
----------
Net increase in net assets resulting from capital
share transactions.................................. 1,308,819
----------
Total increase in net assets......................... 1,184,522
Net Assets:
Beginning of period.................................. --
----------
End of period........................................ $1,184,522
==========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
35
<PAGE>
ULTRASECTOR PROFUNDS
Semiconductor UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (1.99) (2.01)
-------- --------
Total loss from investment
operations....................... (1.99) (2.01)
-------- --------
Net Asset Value, End of Period..... $ 18.01 $ 17.99
======== ========
Total Return....................... (9.95)%(b) (10.05)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $507,048 $677,474
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.48%(c) (0.54)%(c)
Portfolio turnover(d).............. 0% 0%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
36
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Technology UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (77.0%)
Market
Shares Value
------- --------
<S> <C> <C>
3COM Corp.*.................................................. 54 $ 3,112
ADC Telecommunications, Inc.*................................ 45 3,774
Adobe Systems, Inc........................................... 18 2,340
Advanced Fibre Communications, Inc.*......................... 18 816
Advanced Micro Devices, Inc.*................................ 24 1,854
Akamai Technologies, Inc.*................................... 18 2,137
Altera Corp.*................................................ 30 3,058
Amdocs Ltd.*................................................. 36 2,763
American Tower Corp.*........................................ 30 1,251
Amkor Technology, Inc.*...................................... 24 848
Analog Devices*.............................................. 54 4,103
Apple Computer, Inc.*........................................ 60 3,143
Applied Materials, Inc.*..................................... 120 10,874
Applied Micro Circuits Corp.*................................ 18 1,778
Ariba, Inc.*................................................. 30 2,941
Art Technology Group, Inc.*.................................. 12 1,211
Atmel Corp.*................................................. 42 1,549
BEA Systems, Inc.*........................................... 60 2,966
BMC Software, Inc.*.......................................... 48 1,751
Broadcom Corp.*.............................................. 30 6,568
BroadVision, Inc.*........................................... 36 1,829
Brocade Communications Systems, Inc.*........................ 18 3,303
Cabletron Systems*........................................... 42 1,061
Cadence Design Systems, Inc.*................................ 66 1,345
Check Point Software Technologies Ltd.*...................... 12 2,541
Ciena Corp.*................................................. 24 4,001
Cisco Systems, Inc.*......................................... 966 61,400
Commerce One, Inc.*.......................................... 24 1,089
Compaq Computer Corp......................................... 264 6,749
Computer Associates International, Inc....................... 96 4,914
Compuware Corp.*............................................. 90 934
Comverse Technology, Inc.*................................... 30 2,790
Conexant Systems, Inc.*...................................... 36 1,751
Cree Research, Inc.*......................................... 6 801
Crown Castle International Corp.*............................ 30 1,095
Dell Computer Corp.*......................................... 366 18,048
E-Tek Dynamics, Inc.*........................................ 12 3,166
EMC Corp.*................................................... 294 22,619
Extreme Networks, Inc.*...................................... 12 1,266
Gateway, Inc.*............................................... 54 3,065
GlobeSpan, Inc.*............................................. 12 1,465
Hewlett-Packard Co........................................... 144 17,982
I2 Technologies, Inc.*....................................... 30 3,128
Inktomi Corp.*............................................... 18 2,129
Intel Corp. ................................................. 468 62,565
International Business Machines Corp. ....................... 258 28,266
Intuit, Inc.*................................................ 42 1,738
Jabil Circuit, Inc.*......................................... 36 1,787
Juniper Networks, Inc.*...................................... 48 6,987
KLA-Tencor Corp.*............................................ 36 2,108
Lam Research Corp.*.......................................... 30 1,125
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
------- --------
<S> <C> <C>
Level 3 Communications, Inc.*................................ 54 $ 4,752
Lexmark International Group, Inc.*........................... 24 1,614
Linear Technology Corp. ..................................... 54 3,452
LSI Logic Corp.*............................................. 48 2,598
Lucent Technologies, Inc. ................................... 456 27,017
Macromedia, Inc.*............................................ 12 1,160
Maxim Integrated Products, Inc.*............................. 48 3,261
Mercury Interactive Corp.*................................... 18 1,742
Micromuse, Inc.*............................................. 6 993
Micron Technology, Inc.*..................................... 78 6,869
Microsoft Corp.*............................................. 738 59,040
MicroStrategy, Inc.*......................................... 18 540
Motorola, Inc................................................ 312 9,067
National Semiconductor Corp.*................................ 36 2,043
Network Appliance, Inc.*..................................... 48 3,864
Novellus Systems, Inc.*...................................... 24 1,358
NVIDIA Corp.*................................................ 12 763
Oracle Corp.*................................................ 402 33,793
PanAmSat Corp.*.............................................. 36 1,573
Peregrine Systems, Inc.*..................................... 36 1,249
Phone.com, Inc.*............................................. 12 782
Pitney Bowes, Inc............................................ 66 2,640
PMC-Sierra, Inc.*............................................ 24 4,265
Portal Software, Inc.*....................................... 30 1,916
Qualcomm, Inc.*.............................................. 102 6,120
Rambus, Inc.*................................................ 18 1,854
Rational Software Corp.*..................................... 18 1,673
RealNetworks, Inc.*.......................................... 24 1,214
Redback Networks, Inc.*...................................... 24 4,272
RF Micro Devices, Inc.*...................................... 12 1,052
Sandisk Corp.*............................................... 12 734
Sanmina Corp.*............................................... 21 1,796
Sapient Corp.*............................................... 12 1,283
Scientific-Atlanta, Inc. .................................... 30 2,235
Seagate Technology, Inc.*.................................... 36 1,980
Siebel Systems, Inc.*........................................ 30 4,907
Sun Microsystems, Inc.*...................................... 228 20,734
Tellabs, Inc.*............................................... 66 4,517
Teradyne, Inc.*.............................................. 30 2,205
Texas Instruments, Inc. ..................................... 234 16,072
Tibco Software, Inc.*........................................ 30 3,217
Unisys Corp.*................................................ 72 1,049
VeriSign, Inc.*.............................................. 24 4,236
Veritas Software Corp.*...................................... 60 6,781
Vignette Corp.*.............................................. 30 1,560
Vitesse Semiconductor Corp.*................................. 30 2,207
Vitria Technology, Inc.*..................................... 24 1,467
Xerox Corp. ................................................. 138 2,864
Xilinx, Inc.*................................................ 48 3,963
--------
TOTAL COMMON STOCKS
(Cost $632,750)............................................. 608,227
--------
</TABLE>
See accompanying notes to the financial statements.
37
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Technology UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
U.S. Treasury Notes (27.9%)
Principal Market
Amount Value
--------- --------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00........................................... $221,000 $220,137
--------
TOTAL U.S. TREASURY NOTES
(Cost $220,146)........................................... 220,137
--------
TOTAL INVESTMENTS
(Cost $852,896)(a) (104.9%)............................... 828,364
Liabilities in excess of other assets (-4.9%).............. (38,325)
--------
TOTAL NET ASSETS (100.0%).................................. $790,039
========
</TABLE>
-----
Percentages indicated are based on net assets of $790,039.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation........................................ $ 10,253
Unrealized depreciation........................................ (34,785)
--------
Net unrealized depreciation.................................... $(24,532)
========
See accompanying notes to the financial statements.
38
<PAGE>
ULTRASECTOR PROFUNDS
Technology UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $852,896)............................... $828,364
Cash................................................................ 636
Dividends and interest receivable................................... 2,517
--------
Total Assets....................................................... 831,517
Liabilities:
Unrealized depreciation on swap contracts........................... 40,987
Advisory fees payable............................................... 212
Management servicing fees payable................................... 43
Shareholder servicing fees payable--Service Class................... 109
Other accrued expenses.............................................. 127
--------
Total Liabilities.................................................. 41,478
--------
Net Assets........................................................... $790,039
========
Net Assets consist of:
Capital............................................................. $870,509
Accumulated undistributed net investment income..................... 1
Accumulated net realized losses on investments...................... (14,952)
Net unrealized depreciation on investments and swap contracts....... (65,519)
--------
Total Net Assets..................................................... $790,039
========
Investor Shares:
Net Assets.......................................................... $344,759
Shares of Beneficial Interest Outstanding........................... 18,118
Net Asset Value (offering and redemption price per share)........... $ 19.03
========
Service Shares:
Net Assets.......................................................... $445,280
Shares of Beneficial Interest Outstanding........................... 23,410
Net Asset Value (offering and redemption price per share)........... $ 19.02
========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest............................................................ $ 474
Dividends........................................................... 18
--------
Total Income....................................................... 492
Expenses:
Advisory fees....................................................... 212
Management servicing fees........................................... 43
Shareholder servicing fees--Service Class........................... 109
Other fees.......................................................... 127
--------
Total expenses..................................................... 491
--------
Net Investment Income................................................ 1
--------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments.................................. (14,952)
Net change in unrealized depreciation on investments and swap
contracts.......................................................... (65,519)
--------
Net realized and unrealized losses on investments and swap
contracts......................................................... (80,471)
--------
Decrease In Net Assets Resulting from Operations..................... $(80,470)
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
39
<PAGE>
ULTRASECTOR PROFUNDS
Technology UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 1
Net realized losses on investments................... (14,952)
Net change in unrealized depreciation on investments
and swap contracts.................................. (65,519)
---------
Net decrease in net assets resulting from
operations.......................................... (80,470)
Capital Share Transactions:
Proceeds from shares issued.......................... 1,373,348
Cost of shares redeemed.............................. (502,839)
---------
Net increase in net assets resulting from capital
share transactions.................................. 870,509
---------
Total increase in net assets......................... 790,039
Net Assets:
Beginning of period.................................. --
---------
End of period........................................ $ 790,039
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
40
<PAGE>
ULTRASECTOR PROFUNDS
Technology UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (0.97) (0.98)
-------- --------
Total loss from investment
operations....................... (0.97) (0.98)
-------- --------
Net Asset Value, End of Period..... $ 19.03 $ 19.02
======== ========
Total Return....................... (4.85)%(b) (4.90)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $344,759 $445,280
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.39%(c) (0.62)%(c)
Portfolio turnover(d).............. 73% 73%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
41
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Telecommunications UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (82.0%)
Market
Shares Value
------- --------
<S> <C> <C>
Adelphia Business Solutions, Inc.*............................ 42 $ 974
Advanced Radio Telecom Corp.*................................. 18 263
Allegiance Telecom, Inc.*..................................... 60 3,840
Alltel Corp. ................................................. 180 11,149
Arch Communications Group, Inc.*.............................. 30 195
AT&T Corp. ................................................... 2,172 68,689
Bell Atlantic Corp. .......................................... 888 45,121
BellSouth Corp. .............................................. 1,080 46,034
Broadwing, Inc.*.............................................. 126 3,268
Caprock Communications Corp.*................................. 18 351
Centennial Communications Corp.*.............................. 54 743
CenturyTel, Inc. ............................................. 84 2,415
Citizens Communications Co.*.................................. 150 2,588
Covad Communications Group, Inc.*............................. 84 1,355
e.spire Communications, Inc.*................................. 30 203
Focal Communications*......................................... 36 1,287
Global TeleSystems, Inc.*..................................... 102 1,230
GTE Corp. .................................................... 558 34,735
ICG Communications, Inc.*..................................... 30 662
IDT Corp.*.................................................... 18 611
Interdigital Communications Corp.*............................ 30 497
Intermedia Communications, Inc.*.............................. 30 893
ITC Deltacom, Inc.*........................................... 36 803
Leap Wireless International, Inc.*............................ 12 564
McLeodUSA, Inc.--Class A*..................................... 318 6,579
Metricom, Inc.*............................................... 18 502
Metromedia Fiber Network, Inc.*............................... 312 12,383
MGC Communications, Inc.*..................................... 18 1,079
Motient Corp.*................................................ 30 471
Network Plus Corp.*........................................... 30 426
Nextel Communications, Inc.--Class A*......................... 396 24,230
NEXTLINK Communications, Inc.--Class A*....................... 168 6,374
NTL, Inc.*.................................................... 156 9,341
Pacific Gateway Exchange, Inc.*............................... 12 41
Powertel, Inc.*............................................... 18 1,277
Primus Telecommunications Group, Inc.*........................ 24 597
PTEK Holdings, Inc.*.......................................... 30 98
Qwest Communications International, Inc....................... 426 21,167
RCN Corp.*.................................................... 42 1,066
Rural Cellular Corp.*......................................... 6 459
SBC Communications, Inc. ..................................... 1,902 82,261
Sprint Corp. (FON Group)...................................... 450 22,950
</TABLE>
<TABLE>
<CAPTION>
Common Stocks, continued
Market
Shares Value
--------- --------
<S> <C> <C>
Sprint Corp. (PCS Group)*................................... 492 $ 29,273
STAR Telecommunications, Inc.*.............................. 36 91
Startec Global Communications Corp.*........................ 6 64
Talk.com, Inc.*............................................. 36 209
Telephone & Data Systems, Inc. ............................. 30 3,008
Teligent, Inc.--Class A*.................................... 24 567
Ursus Telecom Corp.*........................................ 6 39
US Cellular Corp.*.......................................... 30 1,890
US LEC Corp.--Class A....................................... 18 306
US West, Inc. .............................................. 288 24,695
Viatel, Inc.*............................................... 30 857
Voicestream Wireless Corp.*................................. 120 13,956
Weblink Wireless, Inc.*..................................... 24 318
Western Wireless Corp.--Class A*............................ 42 2,289
Winstar Communications, Inc.*............................... 48 1,626
WorldCom, Inc.*............................................. 1,620 74,317
--------
TOTAL COMMON STOCKS
(Cost $606,998)............................................ 573,276
--------
U.S. Treasury Notes (23.1%)
<CAPTION>
Principal
Amount
---------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00............................................ $162,000 161,367
--------
TOTAL U.S. TREASURY NOTES
(Cost $161,374)............................................ 161,367
--------
TOTAL INVESTMENTS
(Cost $768,372)(a) (105.1%)................................ 734,643
Liabilities in excess of other assets (-5.1%)............... (35,421)
--------
TOTAL NET ASSETS (100.0%)................................... $699,222
========
</TABLE>
-----
Percentages indicated are based on net assets of $699,222.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation........ $ 10,234
Unrealized depreciation........ (43,963)
--------
Net unrealized depreciation.... $(33,729)
========
See accompanying notes to the financial statements.
42
<PAGE>
ULTRASECTOR PROFUNDS
Telecommunications UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $768,372)............................... $734,643
Cash................................................................ 614
Dividends and interest receivable................................... 2,464
--------
Total Assets....................................................... 737,721
Liabilities:
Unrealized depreciation on swap contracts........................... 38,074
Advisory fees payable............................................... 153
Management servicing fees payable................................... 30
Shareholder servicing fees payable--Service Class................... 150
Other accrued expenses.............................................. 92
--------
Total Liabilities.................................................. 38,499
--------
Net Assets........................................................... $699,222
========
Net Assets consist of:
Capital............................................................. $774,408
Accumulated undistributed net investment income..................... 522
Accumulated net realized losses on investments...................... (3,905)
Net unrealized depreciation on investments and swap contracts....... (71,803)
--------
Total Net Assets..................................................... $699,222
========
Investor Shares:
Net Assets.......................................................... $122,301
Shares of Beneficial Interest Outstanding........................... 6,797
Net Asset Value (offering and redemption price per share)........... $ 17.99
========
Service Shares:
Net Assets.......................................................... $576,921
Shares of Beneficial Interest Outstanding........................... 32,074
Net Asset Value (offering and redemption price per share)........... $ 17.99
========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Dividends........................................................... $ 632
Interest............................................................ 315
--------
Total Income....................................................... 947
Expenses:
Advisory fees....................................................... 153
Management servicing fees........................................... 30
Shareholder servicing fees--Service Class........................... 150
Other fees.......................................................... 92
--------
Total expenses..................................................... 425
--------
Net Investment Income................................................ 522
--------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments.................................. (3,905)
Net change in unrealized depreciation on investments and swap
contracts.......................................................... (71,803)
--------
Net realized and unrealized losses on investments and swap
contracts......................................................... (75,708)
--------
Decrease In Net Assets Resulting from Operations..................... $(75,186)
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
43
<PAGE>
ULTRASECTOR PROFUNDS
Telecommunications UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 522
Net realized losses on investments................... (3,905)
Net change in unrealized depreciation on investments
and swap contracts.................................. (71,803)
--------
Net decrease in net assets resulting from
operations.......................................... (75,186)
Capital Share Transactions:
Proceeds from shares issued.......................... 971,398
Cost of shares redeemed.............................. (196,990)
--------
Net increase in net assets resulting from capital
share transactions.................................. 774,408
--------
Total increase in net assets......................... 699,222
Net Assets:
Beginning of period.................................. --
--------
End of period........................................ $699,222
========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
44
<PAGE>
ULTRASECTOR PROFUNDS
Telecommunications UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income............. 0.03 0.01
Net realized and unrealized loss
on investments and swap
contracts........................ (2.04) (2.02)
-------- --------
Total loss from investment
operations....................... (2.01) (2.01)
-------- --------
Net Asset Value, End of Period..... $ 17.99 $ 17.99
======== ========
Total Return....................... (10.05)%(b) (10.05)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $122,301 $576,921
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment income to
average net assets................ 3.33%(c) 2.32%(c)
Portfolio turnover(d).............. 34% 34%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
45
<PAGE>
ULTRASECTOR PROFUNDS Schedule of Portfolio Investments
Wireless Communications UltraSector ProFund June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Common Stocks (79.8%)
Market
Shares Value
------ --------
<S> <C> <C>
Advanced Radio Telecom Corp.*.................................. 343 $ 5,016
Arch Communications Group, Inc.*............................... 735 4,778
AT&T Wireless Group*........................................... 742 20,683
Centennial Communications Corp.*............................... 1,008 13,860
Ericsson (LM) Telephone--ADR................................... 644 12,880
Interdigital Communications Corp.*............................. 343 5,681
Intermedia Communications, Inc.*............................... 336 9,996
Leap Wireless International, Inc.*............................. 259 12,173
Metricom, Inc.*................................................ 252 7,025
Motient Corp.*................................................. 427 6,699
Nextel Communications, Inc.--Class A*.......................... 1,687 103,222
Nokia OYJ--ADR................................................. 280 13,983
Powertel, Inc.*................................................ 322 22,842
Rural Cellular Corp.*.......................................... 203 15,542
Sprint Corp. (PCS Group)*...................................... 1,729 102,875
Telephone & Data Systems, Inc. ................................ 574 57,544
Teligent, Inc.--Class A*....................................... 301 7,111
US Cellular Corp.*............................................. 658 41,454
Vodafone AirTouch PLC--ADR..................................... 1,162 48,150
Voicestream Wireless Corp.*.................................... 833 96,875
Weblink Wireless, Inc.*........................................ 679 8,997
Western Wireless Corp.--Class A*............................... 623 33,954
--------
TOTAL COMMON STOCKS
(Cost $664,396)............................................... 651,340
--------
</TABLE>
<TABLE>
<CAPTION>
U.S. Treasury Notes (26.7%)
Principal Market
Amount Value
--------- --------
<S> <C> <C>
U.S. Treasury Note,
4.50%, 09/30/00............................................ $219,000 $218,145
--------
TOTAL U.S. TREASURY NOTES
(Cost $218,154)............................................ 218,145
--------
TOTAL INVESTMENTS
(Cost $882,550)(a) (106.5%)................................ 869,485
Liabilities in excess of other assets (-6.5%)............... (52,932)
--------
TOTAL NET ASSETS (100.0%)................................... $816,553
========
</TABLE>
-----
Percentages indicated are based on net assets of $816,553.
* Non-income producing
(a)Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation....... $ 12,362
Unrealized depreciation....... (25,427)
--------
Net unrealized depreciation... $(13,065)
========
ADR--American Depositary Receipt
See accompanying notes to the financial statements.
46
<PAGE>
ULTRASECTOR PROFUNDS
Wireless Communications UltraSector ProFund
(Unaudited)
Statement of Assets and Liabilities
June 30, 2000
<TABLE>
<S> <C>
Assets:
Investments, at value (cost $882,550)............................... $869,485
Cash................................................................ 707
Dividends and interest receivable................................... 2,477
--------
Total Assets....................................................... 872,669
Liabilities:
Unrealized depreciation on swap contracts........................... 55,640
Advisory fees payable............................................... 191
Management servicing fees payable................................... 38
Shareholder servicing fees payable--Service Class................... 132
Other accrued expenses.............................................. 115
--------
Total Liabilities.................................................. 56,116
--------
Net Assets........................................................... $816,553
========
Net Assets consist of:
Capital............................................................. $926,418
Accumulated undistributed net investment income..................... 16
Accumulated net realized losses on investments...................... (41,176)
Net unrealized depreciation on investments and swap contracts....... (68,705)
--------
Total Net Assets..................................................... $816,553
========
Investor Shares:
Net Assets.......................................................... $289,513
Shares of Beneficial Interest Outstanding........................... 17,105
Net Asset Value (offering and redemption price per share)........... $ 16.93
========
Service Shares:
Net Assets.......................................................... $527,040
Shares of Beneficial Interest Outstanding........................... 31,147
Net Asset Value (offering and redemption price per share)........... $ 16.92
========
</TABLE>
Statement of Operations
For the period June 20, 2000(a) through June 30, 2000
<TABLE>
<S> <C>
Investment Income:
Interest........................................................... $ 492
Expenses:
Advisory fees...................................................... 191
Management servicing fees.......................................... 38
Shareholder servicing fees--Service Class.......................... 132
Other fees......................................................... 115
---------
Total expenses.................................................... 476
---------
Net Investment Income............................................... 16
---------
Realized and Unrealized Losses on Investments and Swap Contracts:
Net realized losses on investments................................. (41,176)
Net change in unrealized depreciation on investments and swap
contracts......................................................... (68,705)
---------
Net realized and unrealized losses on investments and swap
contracts........................................................ (109,881)
---------
Decrease In Net Assets Resulting from Operations.................... $(109,865)
=========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
47
<PAGE>
ULTRASECTOR PROFUNDS
Wireless Communications UltraSector ProFund
(Unaudited)
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period
June 20, 2000(a) through
June 30, 2000
------------------------
<S> <C>
Change in Net Assets:
Operations:
Net investment income................................ $ 16
Net realized losses on investments................... (41,176)
Net change in unrealized depreciation on investments
and swap contracts.................................. (68,705)
----------
Net decrease in net assets resulting from
operations.......................................... (109,865)
Capital Share Transactions:
Proceeds from shares issued.......................... 1,948,296
Cost of shares redeemed.............................. (1,021,878)
----------
Net increase in net assets resulting from capital
share transactions.................................. 926,418
----------
Total increase in net assets......................... 816,553
Net Assets:
Beginning of period.................................. --
----------
End of period........................................ $ 816,553
==========
</TABLE>
-----
(a)Commencement of operations.
See accompanying notes to the financial statements.
48
<PAGE>
ULTRASECTOR PROFUNDS
Wireless Communications UltraSector ProFund
(Unaudited)
Financial Highlights
For a share of beneficial interest outstanding
<TABLE>
<CAPTION>
Investor Class Service Class
--------------------- ---------------------
For the period from For the period from
June 20, 2000(a) June 20, 2000(a)
through June 30, 2000 through June 30, 2000
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 20.00 $ 20.00
-------- --------
Net investment income/(loss)...... -- --
Net realized and unrealized loss
on investments and swap
contracts........................ (3.07) (3.08)
-------- --------
Total loss from investment
operations....................... (3.07) (3.08)
-------- --------
Net Asset Value, End of Period..... $ 16.93 $ 16.92
======== ========
Total Return....................... (15.35)%(b) (15.40)%(b)
Ratios/Supplemental Data:
Net assets, end of period.......... $289,513 $527,040
Ratio of expenses to average net
assets............................ 1.35%(c) 2.35%(c)
Ratio of net investment
income/(loss) to average net
assets............................ 0.59%(c) (0.43)%(c)
Portfolio turnover(d).............. 154% 154%
</TABLE>
-----
(a)Commencement of operations.
(b)Not annualized.
(c)Annualized.
(d)Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
49
<PAGE>
ULTRASECTOR PROFUNDS
Notes to Financial Statements
June 30, 2000
(Unaudited)
1. Organization
ProFunds (the "Trust") is a registered open-end investment company under the
Investment Company Act of 1940 (the "1940 Act"). 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 except the Money
Market ProFund. BISYS Fund Services Limited Partnership ("BISYS"), a wholly
owned subsidiary of The BISYS Group, Inc., acts as the Trust's
administrator. Currently, the Trust consists of thirty-nine separately
managed series, twenty-five of which are operational as of June 30, 2000.
These accompanying financial statements relate to the following ProFunds:
Biotechnology UltraSector ProFund, Energy UltraSector ProFund, Financial
UltraSector ProFund, Healthcare UltraSector ProFund, Internet UltraSector
ProFund, Pharmaceuticals UltraSector ProFund, Real Estate UltraSector
ProFund, Semiconductor UltraSector ProFund, Technology UltraSector ProFund,
Telecommunications UltraSector ProFund and Wireless Communications
UltraSector ProFund (collectively, the "UltraSector ProFunds" and
individually, an "UltraSector ProFund"). All portfolios in the Trust are
referred to collectively as the "ProFunds". Each ProFund (other than the
Money Market ProFund) is a "non-diversified" series of the Trust pursuant to
the 1940 Act. Each UltraSector ProFund offers two classes of shares: the
Service Shares and the Investor Shares. The UltraSector ProFunds noted above
commenced operations on June 20, 2000 except for the Pharmaceuticals
UltraSector ProFund which commenced operations on June 29, 2000.
Each UltraSector ProFund seeks to provide daily investment results, before
fees and expenses, that correspond to 150% of the performance of its'
specified sector or industry index.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by each ProFund 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.
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. Bonds are valued using a third-party pricing system.
Short-term debt securities are valued at amortized cost, which approximates
market value.
Repurchase Agreements
Under a repurchase agreement, a ProFund 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 agreement will always be
less than one year. A ProFund 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.
The ProFunds require that the securities purchased in a repurchase agreement
transaction be transferred to the custodian in a manner sufficient to enable
the ProFund 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.
Swap Agreements
The ProFunds may enter into equity index or interest rate swap agreements
for purposes of gaining exposure to stocks making up an index of securities
in a market without actually purchasing those stocks, or to hedge a
position. Swap agreements are
Continued
50
<PAGE>
ULTRASECTOR PROFUNDS
Notes to Financial Statements, (continued)
June 30, 2000
(Unaudited)
two-party contracts entered primarily by institutional investors for periods
ranging from one day to more than one year. In a standard "swap"
transaction, two parties agree to exchange the returns (or differentials in
rates of return) earned or realized on particular predetermined investments
or instruments. The gross returns to be exchanged or "swapped" between the
parties are calculated with respect to a "notional amount," (i.e., the
return on or increase in value of a particular dollar amount invested in a
"basket" of securities representing a particular index). Most swap
agreements entered into by the ProFunds calculate the obligations of the
parties to the agreement on a "net basis". Consequently, a ProFund's current
obligations (or rights) under a swap agreement will generally be equal only
to the net amount to be paid or received under the agreement based on the
relative values of the positions held by each party to the agreement (the
"net amount"). A ProFund's current obligations under a swap agreement will
be accrued daily (offset against any amounts owed to the ProFund) and any
accrued but unpaid net amounts owed to a swap counterparty will be covered
by segregating assets determined to be liquid. A ProFund will not enter into
any swap agreement unless the Advisor believes that the other party to the
transaction is creditworthy.
The counterparty will generally agree to pay the ProFund the amount, if any,
by which the notional amount of the swap agreement would have increased in
value had it been invested in the particular stocks, plus the dividends that
would have been received on those stocks. The ProFund will agree to pay to
the counterparty a floating rate of interest on the notional amount of the
swap agreement plus the amount, if any, by which the notional amount would
have decreased in value had it been invested in such stocks. Therefore, the
return to the ProFund on any swap agreement should be the gain or loss on
the notional amount plus dividends on the stocks less the interest paid by
the ProFund on the notional amount. Swap agreements typically are settled on
a net basis, which means that the two payment streams are netted out, with
the ProFund receiving or paying, as the case may be, only the net amount of
the two payments. Payments may be made at the conclusion of a swap agreement
or periodically during its term. Swap agreements do not involve the delivery
of securities or other underlying assets. The net amount of the excess, if
any, of a ProFund's obligations over its entitlements with respect to each
equity swap will be accrued on a daily basis and an amount of cash or liquid
assets, having an aggregate net asset value at least equal to such accrued
excess will be maintained in a segregated account by a ProFund's custodian.
Until a swap agreement is settled in cash the gain or loss on the notional
amount plus dividends on the stocks less the interest paid by the ProFund on
the notional amount will be recorded as "unrealized gains or losses on swap
agreements" and when cash is exchanged the gain or loss realized will be
recorded as "realized gains or losses on swap agreements".
Swap agreements 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 notional amounts reflect the extent of the total
exposure each UltraSector ProFund 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. Risk may also arise if there is an illiquid secondary market for
the instruments, or due to the inability of counterparties to perform. A
ProFund bears the risk of loss of the amount expected to be received under a
swap agreement in the event of the default or bankruptcy of a swap agreement
counterparty.
At June 30, 2000, the following swap contracts were outstanding and were
collateralized by all of the assets of each particular UltraSector ProFund:
<TABLE>
<CAPTION>
Unrealized
Notional Termination Return Appreciation/
Amount Date Benchmark (Depreciation)
---------- ----------- ----------------------------------- --------------
<S> <C> <C> <C> <C>
Biotechnology $1,266,886 07/25/00 DJ US Biotechnology Index $(313,124)
Energy 297,614 07/25/00 DJ US Energy Index (12,232)
Financial 811,620 07/25/00 DJ US Financial Index (29,375)
Healthcare 1,155,305 07/25/00 DJ US Healthcare Index 15,526
Internet 537,310 07/25/00 DJ US Internet Index (29,306)
Pharmaceuticals 208,470 07/25/00 DJ US Pharmaceuticals Index 21,722
Real Estate 12,144,210 07/25/00 DJ US Real Estate Index (348,834)
Semiconductor 920,079 07/25/00 DJ US Semiconductor Index (62,806)
Technology 632,750 07/25/00 DJ US Technology Index (40,987)
Telecommunications 606,998 07/25/00 DJ US Telecommunications Index (38,074)
Wireless Communications 664,396 07/25/00 DJ US Wireless Communications Index (55,640)
</TABLE>
Continued
51
<PAGE>
ULTRASECTOR PROFUNDS
Notes to Financial Statements, (continued)
June 30, 2000
(Unaudited)
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.
Expenses
Expenses directly attributable to a ProFund are charged to the ProFund,
while expenses which are attributable to more than one ProFund are allocated
among the respective ProFunds based upon relative net assets or another
appropriate basis. In addition, investors in Investor Shares will pay the
expenses directly attributable to the Investor Shares as a class, and
investors in Service Shares will pay the expenses directly attributable to
the Service Shares as a class.
The investment income and expenses of a ProFund (other than class specific
expenses) and realized and unrealized gains and losses on investments of a
ProFund, are allocated to each class of shares based upon relative net
assets on the date income is earned or expenses are realized and unrealized
gains and losses are incurred.
Distributions to Shareholders
The UltraSector ProFunds 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
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 UltraSector ProFunds 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.
Federal Income Tax
Each of the ProFunds 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
intend to make timely distributions in order to avoid tax liability.
Continued
52
<PAGE>
ULTRASECTOR PROFUNDS
Notes to Financial Statements, (continued)
June 30, 2000
(Unaudited)
3. Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows for the period
ended June 30, 2000.
<TABLE>
<CAPTION>
Biotechnology Energy Financial Healthcare
UltraSector UltraSector UltraSector UltraSector
ProFund ProFund ProFund ProFund
-------------------- ------------------ -------------------- -------------------
June 20, 2000 June 20, 2000 June 20, 2000 June 20, 2000
through through through through
June 30, 2000 June 30, 2000 June 30, 2000 June 30, 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------------- ------------------ -------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ---------- ------- --------- ------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investor Shares Sold.... 191,194 $3,849,754 24,450 $ 485,402 37,533 $ 742,835 123,318 $2,480,940
Investor Shares
Redeemed............... (111,319) (2,176,269) (5,388) (105,190) (8,984) (177,085) (48,227) (938,858)
-------- ---------- ------- --------- ------- ----------- ------- ----------
Net Increase........... 79,875 $1,673,485 19,062 $ 380,212 28,549 $ 565,750 75,091 $1,542,082
======== ========== ======= ========= ======= =========== ======= ==========
Service Shares Sold..... 258,340 $5,446,745 45 $ 893 127,630 $ 2,516,223 3,647 $ 71,864
Service Shares
Redeemed............... (1,036) (20,151) -- -- (99,622) (1,965,548) (745) (14,776)
-------- ---------- ------- --------- ------- ----------- ------- ----------
Net Increase........... 257,304 $5,426,594 45 $ 893 28,008 $ 550,675 2,902 $ 57,088
======== ========== ======= ========= ======= =========== ======= ==========
<CAPTION>
Internet Pharmaceuticals Real Estate Semiconductor
UltraSector UltraSector UltraSector UltraSector
ProFund ProFund ProFund ProFund
-------------------- ------------------ -------------------- -------------------
June 20, 2000 June 29, 2000 June 20, 2000 June 20, 2000
through through through through
June 30, 2000 June 30, 2000 June 30, 2000 June 30, 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------------- ------------------ -------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-------- ---------- ------- --------- ------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investor Shares Sold.... 20,598 $ 412,101 13,554 $ 281,964 38,485 $ 777,091 48,624 $ 958,889
Investor Shares
Redeemed............... (9,666) (185,761) -- -- (33,940) (679,455) (20,463) (402,928)
-------- ---------- ------- --------- ------- ----------- ------- ----------
Net Increase........... 10,932 $ 226,340 13,554 $ 281,964 4,545 $ 97,636 28,161 $ 555,961
======== ========== ======= ========= ======= =========== ======= ==========
Service Shares Sold..... 28,143 $ 598,811 46,155 $ 923,177 822,008 $16,675,950 38,584 $ 769,292
Service Shares
Redeemed............... (655) (12,516) (46,154) (959,994) (7,532) (150,892) (933) (16,434)
-------- ---------- ------- --------- ------- ----------- ------- ----------
Net
Increase/(Decrease)... 27,488 $ 586,295 1 $ (36,817) 814,476 $16,525,058 37,651 $ 752,858
======== ========== ======= ========= ======= =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
Wireless
Technology Telecommunications Communications
UltraSector UltraSector UltraSector
ProFund ProFund ProFund
-------------------- -------------------- --------------------
June 20, 2000 June 20, 2000 June 20, 2000
through through through
June 30, 2000 June 30, 2000 June 30, 2000
(Unaudited) (Unaudited) (Unaudited)
-------------------- -------------------- --------------------
Shares Amount Shares Amount Shares Amount
-------- ---------- --------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investor Shares Sold.... 45,272 $ 895,656 17,157 $ 337,946 75,660 $ 1,355,484
Investor Shares
Redeemed............... (27,154) (502,839) (10,360) (196,990) (58,555) (1,009,555)
-------- ---------- -------- ---------- ------- -----------
Net Increase........... 18,118 $ 392,817 6,797 $ 140,956 17,105 $ 345,929
======== ========== ======== ========== ======= ===========
Service Shares Sold..... 23,410 $ 477,692 32,074 $ 633,452 31,891 $ 592,812
Service Shares
Redeemed............... -- -- -- -- (744) (12,323)
-------- ---------- -------- ---------- ------- -----------
Net Increase........... 23,410 $ 477,692 32,074 $ 633,452 31,147 $ 580,489
======== ========== ======== ========== ======= ===========
</TABLE>
4. Investment Advisory Fees, Administration Fees and Other Related Party
Transactions
The UltraSector ProFunds have entered into an Investment Advisory Agreement
with the Advisor. Under this agreement, the UltraSector ProFunds each pay
the Advisor a fee at an annualized rate, based on the average daily net
assets of each respective UltraSector ProFund, of 0.75%.
Continued
53
<PAGE>
ULTRASECTOR PROFUNDS
Notes to Financial Statements, (concluded)
June 30, 2000
(Unaudited)
For its services as Administrator, each ProFund pays BISYS an annual fee
ranging from 0.15% of average daily net assets of $0 to $300 million to
0.05% of average daily net assets of $1 billion and over. Concord Financial
Group, Inc., an affiliate of BISYS, serves as the Trust's distributor and
principal underwriter and receives no compensation from the ProFunds for
such services. BISYS Fund Services, Inc. ("BFSI"), also an affiliate of
BISYS, acts as transfer agent and fund accounting agent for the ProFunds,
for which it receives additional fees. Additionally, ProFunds, 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.
ProFund Advisors LLC, pursuant to a separate Management Services Agreement,
performs certain client support services and other administrative services
on behalf of the ProFunds. For these services, each UltraSector ProFund will
pay to ProFund Advisors LLC a fee at the annual rate of 0.15% of its average
daily net assets.
Each ProFund has adopted a Shareholder Services Plan (the "Plan") and
related agreement ("Shareholder Services Agreement"). The Plan provides that
each ProFund will make payments to Authorized Firms in amount up to 1.00%
(on an annual basis) of the average net assets of such ProFund's Service
class of shares attributable to or held in the name of an Authorized Firm
for its clients. The Plan provides that the fee will be paid to registered
investment advisors, banks, trust companies and other financial
organizations for providing account administration and other services to
their clients who are beneficial owners of such shares.
Certain Trustees of the Trust are Officers of ProFund Advisors LLC and are
compensated for such services.
5. Securities Transactions
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities) during the period ended June 30, 2000 were
as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- ----------
<S> <C> <C>
Biotechnology UltraSector ProFund.................... $ 6,282,358 $4,763,345
Energy UltraSector ProFund........................... $ 397,063 $ 98,106
Financial UltraSector ProFund........................ $ 2,327,139 $1,517,263
Healthcare UltraSector ProFund....................... $ 1,887,803 $ 719,358
Internet UltraSector ProFund......................... $ 744,701 $ 200,869
Pharmaceuticals UltraSector ProFund.................. $ 729,646 $ 534,345
Real Estate UltraSector ProFund...................... $13,284,928 $1,128,145
Semiconductor UltraSector ProFund.................... $ 920,079 $ 0
Technology UltraSector ProFund....................... $ 945,912 $ 298,210
Telecommunications UltraSector ProFund............... $ 709,212 $ 193,824
Wireless Communications UltraSector ProFund.......... $ 1,363,296 $ 657,725
</TABLE>
6. Concentration of Credit Risk
Each UltraSector ProFund invests in the securities of a limited number of
issuers conducting business in a specific market sector, it is subject to
the risk that those issuers (or that market sector) will perform poorly, and
the UltraSector ProFund will be negatively impacted by that poor
performance. This would make the performance of an UltraSector ProFund more
susceptible to a single economic, political or regulatory event than a more
diversified mutual fund might be.
54
<PAGE>
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<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
ProFunds(SM)
Post Office Mailing Address for Investments
P.O. Box 182800
Columbus, OH 43218-2800
Phone Numbers
For Financial Professionals: (888) PRO-5717 [(888) 776-5717]
For All Others: (888) PRO-FNDS [(888) 776-3637]
Or: (614) 470-8122
Fax Number: (800) 782-4797
Website Address
www.profunds.com
This report is submitted for the general information of the shareholders of the
ProFunds. It is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective prospectus.
[PROFUNDS LOGO]
ProFunds(SM)
8/00
