The ProFunds Precious Metals UltraSector Fund Down 35.99% In 2014
The ProFunds Precious Metals UltraSector Fund, which trades under the ticker symbols PMPSX and PMPIX, is a non-diversified fund that seeks to match 150% of the daily performance of the Dow Jones Precious Metals Index. In other words, the fund attempts to move one and a half times as much as the index in the same direction. The fund seeks to invest its assets in a basket of equity securities and derivatives.
The fund has consistently had very poor performance. In 2014, the Service-class shares, PMPSX, were down 35.99% for the year, and the 5-year average annual return is negative 25.26%.
Contrary to the fund’s title, it does not have any direct commodity exposure. As of October 31, 2014, the fund, managed by Michael Neches and Charles Lowery, had 34.66% of its assets in cash, 20.26% of its assets invested in Freeport McMoRan Inc (NYSE: FCX), and 10.45% of its assets invested in Goldcorp (NYSE: GG, TSE: G), both of which are precious metal miners, leaving investors with individual company risk.
If your financial advisor or stockbroker recommended that you invest in the ProFunds Precious Metals UltraSector Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the ProFunds Precious Metals UltraSector Fund, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If the ProFunds Precious Metals UltraSector Fund made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.
The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.
