Direxion Modifies Commodity Fund's Strategy With Change to Next Generation Commodity Index

BOSTON, Jan. 30, 2012 /PRNewswire/ -- Direxion, a leader in alternative investment solutions, is making modifications to their lineup of "buy and hold" alternative strategies, effective February 1, 2012, including changing the benchmark index for their commodity fund to the Auspice Broad Commodity Index, as a way to improve the Fund's risk/return profile.

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This long/flat, rules-based commodity index is designed to provide investors with the opportunity to take advantage of rising  prices on certain commodities, while simultaneously assuming a flat position (cash) in other commodities that are experiencing a downward trend.  

The Auspice Broad Commodity Index has a number of attributes that differentiate it from other commodity index strategies including; the ability to adjust positions intra-month, a monthly rebalance process that assesses volatility levels as a means to control risk, and a focus on shorter term trends to be more responsive. It also incorporates a smart contract roll process that takes into account contago and backwardation.     

To reflect the change in its index and strategy, the Fund has been renamed the Direxion Indexed Commodity Strategy Fund. Also effective February 1, 2012, the Fund's annual incurred expenses will decrease.

"We believe that the strategy modifications and fee reductions will make our commodity fund more attractive to shareholders," said Ed Egilinsky, Managing Director, Head of Alternative Investments at Direxion. "By switching to a rules-based, long/flat commodity index, we feel that the fund is positioned to be less prone to whip-sawing markets and to provide more consistent returns with less of the downside volatility typically associated with commodities."

Also effective February 1st, a number of other modifications will be made to Direxion's lineup of alternative "buy and hold" mutual funds, including name changes, fee reductions and share class restructuring. The following table illustrates the name and fee changes:

"Our primary focus is to provide our shareholders the best opportunity to achieve success with our funds and strategies," said Mr. Egilinsky. "We feel reducing our fund expenses across our suite of "buy and hold" alternative products is one of the ways to achieve this."   

For more information about Direxion, please contact James Doyle at 973-850-7308 or [email protected].  

About Direxion
Direxion Funds, managed by Rafferty Asset Management, LLC, offers alternative-class fund products and leveraged index funds for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $7.8 billion in assets under management as of 12/31/2011. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit www.direxionfunds.com.

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.

Investing in index-based funds may be more volatile than investing in broadly diversified funds. The use of leverage by a mutual fund increases the risk to the fund. The more a fund invests in leveraged instruments the more the leverage will magnify gains or losses on those investments.

Risks:

The principal risks of investing in the Funds are Risks of Investing in Commodity-Linked Derivatives, Risks of Investing in Wholly-owned Subsidiary, High Portfolio Turnover, Tax Risk, Risk of Tracking Error, Risks of Aggressive Investment Techniques, Leverage Risk, Derivatives Risks, Counterparty Risks, Risk of Non-Diversification, Risks of Investing in Other Investment Companies and ETFs, Adverse Market Conditions, Risks of Investing in Equity Securities, Credit Risk and Concentration Risk, Risks of currency exchange rates, Risks of shorting instruments, Risks of the adviser's investment strategy, credit risk, valuation time risk, Emerging Markets Risk, Foreign Instrument Risk High Portfolio Turnover, IPO Risk, Options and Futures Contracts Risk, Security Selection Risk Volatile Markets, Risk Counterparty, Risks Interest Rate Changes, Security Selection Risk, Risks of Investing in Small and Mid Capitalization Companies. Any investments made in whole or in part by a party in reliance thereon are made at such party's sole risk. No guarantee of any kind is implied or possible where opinions as to past of future market conditions/events is provided.

SOURCE Direxion