The Mutual Fund Advisory Program through Nikoh Securities Corporation

     Nikoh Securities Corporation in conjunction with the investment advisory services of Hokin Investment Advisors Inc. has created an individual mutual fund advisory program.

     A participant in this program will have an account with Nikoh Securities and the mutual fund company ProFunds. This Bethesda, MD. based company with over eight billion dollars under management, has the country’s largest lineup of indexed mutual funds¹ The financial advisory company of Hokin Investment Advisors has been retained to provide the investment model utilized in this program.

     Participants grant a limited power of attorney authorizing Nikoh to make fund exchanges within the ProFunds family. Accounts are tactically managed by Nikoh Securities to achieve a target asset allocation. Since market conditions can change rapidly, Nikoh seeks to provide a fluid investment allocation which may involve frequent reallocation of assets. Your assets are invested in various funds within the ProFunds family of funds

     All of the funds utilized in this program, other than the money market, are unmanaged index funds. The index funds utilized in this program seek to match or are enhanced to magnify the daily performance of their benchmark. For example, the daily return of the ProFunds Precious Metals fund seeks to match 150 % of the daily performance of the Dow Jones Precious Metals Index; the UltraBull fund daily seeks to match 200% of the daily performance of the S&P 500 index: the Ultrabear, a short fund, seeks daily investment results that correspond to the inverse (opposite) of daily performance of the S&P 500 fund return: Rising Rates Opportunity seeks to correspond to 125% of the inverse of the daily price movement of the most recently issued 30-year U.S. Treasury Bond. Your assets may be invested in long or short funds. The target allocations are chosen by Nikoh based upon its analysis of market conditions. The fund allocations are not limited to the funds mentioned here but may include any of the funds within the ProFunds family. 

     Please contact this office with any questions regarding investing in this mutual fund advisory program. The models utilized are dynamic and because of the enhanced nature of the funds, have a higher degree of volatility than pure non enhanced index funds.  A discussion regarding your personal financial objectives including your risk tolerance and time horizon is necessary to assess if any of the investment models are appropriate for you.   

¹ Lipper. October 14, 2004. Lipper defines “indexed fund” as an open-ended (not an Exchange Traded Fund, or ETF) fund that falls into one of the following subcategories: pure index, enhanced Index or index based. The majority of ProFunds are categorized by Lipper as enhanced index funds.

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