"It's no secret that commodities have been fighting a headwind over the last couple of years," said Ed Egilinsky, Head of Alternatives for Direxion. "That fact makes us even more pleased to have received the 5-Star rating. "
The Indexed Commodity Strategy Fund tracks the performance of the Auspice Broad Commodity Index (ABCERI), a quantitative long/flat index that can be exposed to up to 12 major commodities in the energy, metal, and agricultural sectors.
"Most traditional commodity funds provide static long-only exposure to commodities. This limits their potential to contribute to a portfolio's long-term performance because there's no way to get defensive," said Mr. Egilinsky. "The long/flat approach makes the fund potentially more adaptive to volatile commodity markets."
The strategic index-based strategy of the fund includes a quantitative approach to commodity investing, with exposure to 12 commodities that can individually be long or flat. It has the ability to make position changes intra-month based on trends. There's a monthly rebalance based on risk reduction where the allocation of individual components is reduced if volatility exceeds certain predetermined risk levels, and a "smart" contract roll approach. A smart contract roll approach is an approach designed to select cost effective futures contracts to roll into upon expiration of current contract.
Direxion builds bold products for investors who want more than the status quo. Our funds deliver directional options, magnified exposure, and long-term, rules-based strategies. Founded in 1997, the company has approximately $11 billion in assets under management as of September 30, 2016. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.
There is no guarantee that the Fund will achieve its investment objective.
† ©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. The Direxion Indexed Commodity Strategy Fund has been rated against the U.S. domiciled Commodity Broad Basket funds category with 121 funds over the last three years and 79 funds over the last five years. The fund received an Overall Morningstar Rating of 5 stars for Institutional and load-waived A shares, and 4 stars for C Shares and the A shares with the max sales charge. The fund received 4 stars for the A shares with the max sales charge and 5 stars for all other share classes over the three-year period. Over a five-year period, the fund received 5 stars for Institutional and load-waived A shares and 4 stars for the C shares and A shares with the max sales charge. The star rating shown above is for the load-waived A shares. Such no-load ratings should only be considered by investors who are not subject to the sales charge for A shares. Different Star Ratings for the various share classes are partially a result of different inception dates. Past performance is no guarantee of future results.
For more information on all Direxion Funds, go to direxioninvestments.com, or call us at 866-476-7523.
An investor should consider the investment objectives, risks, charges, and expenses of the Direxion Funds carefully before investing. The prospectus and summary prospectus contain this and other information about Direxion Funds. To obtain a prospectus or summary prospectus, please contact the Direxion Funds at 800.851.0511. The prospectus or summary prospectus should be read carefully before investing.
Auspice Capital Advisors Ltd. is a registered Portfolio Manager/Investment Fund Manager in Canada and a registered Commodity Trading Advisor (CTA) and National Futures Association (NFA) member in the US.
Investing in funds that invest in specific industries or geographic regions may be more volatile than investing in broadly diversified funds. An investment in the Fund involves risk, including the possible loss of principal. The Fund is nondiversified and include risks associated with concentration risk which results from the Fund's investments in a particular industry or sector and can increase volatility over time. Active and frequent trading associated with a regular rebalance of the fund can cause the price to fluctuate, therefore impacting its performance compared to other investment vehicles. Commodities are subject to significant volatility and entail a high degree of risk. Leverage by the Fund can accelerate the velocity of potential losses. For other risks including correlation, compounding, and specific risks regarding each sector, please read the prospectus.
Distributor: Rafferty Capital Markets, LLC.
CONTACT: James Doyle
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