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Please be advised the forthcoming changes will be implemented as of February 1, 2012 for the Commodity Trends Strategy Fund, the Currency Trends Strategy Fund, the Direxion Long/Short IPO Global Fund and the Direxion/Wilshire Dynamic Fund.

Investment Strategy Modifications:

The intent of the following enhancements are to better position our funds in order to achieve long-term success within our strategies.

  • The underlying index of the Commodity Trends Strategy Fund will change to the Auspice Broad Commodity Index that follows a rules-based, long/flat methodology that can make position changes intra-month. We believe the dynamic nature of this Index will provide an improved risk/return profile relative to investing in long-only commodity indices. To better align with the change in Index, the fund has been renamed the Direxion Indexed Commodity Strategy Fund (Name Change Pending Regulatory Approval).
  • The Currency Trends Strategy Fund will begin to incorporate leverage on the existing index. The objective will be to provide monthly returns that are 150% of the long/short, FXTI currency index. This enhancement will provide the potential for an improved return profile, while keeping the overall risk characteristics within expectations for the currency asset class. To better align with the modification to the fund, we are renaming it to the Direxion Currency Trends Strategy Plus Fund (Name Change Pending Regulatory Approval).
  • The underlying index of the Direxion Long/Short Global IPO Fund will be replaced with the quantifiable, rules-based FTSE Renaissance Global IPO Index.

    • The table below shows, where applicable, the change in Fund Name to better coincide with the corresponding enhancement in strategy. Also included are the CUSIPS and Ticker Symbols for each share class (no change).

    Old Fund Name

    New Fund Name

    Class A

    Class C

    Institutional

    Commodity Trends Strategy Fund

    Direxion Indexed Commodity Strategy Fund

    254939457 (DXCTX)

    254939341 (DXSCX)

    254939382

    (DXCIX)

    Currency Trends Strategy Fund

    Direxion Currency Trends Strategy Plus Fund

    254939390 (DXFTX)

    254939333 (DXFCX)

    254939374

    (DXFIX)

    Direxion Long/Short Global IPO Fund

    (No Change)

    254939887 (DXIIX)

    254939317 (DXGCX)

    N/A

    Direxion/Wilshire Dynamic Fund

    (No Change)

    254939416 (DXDWX)

    254939325 (DXWCX)

    N/A

     

     

     

     

     

     


    Fee Reductions:

    Our current suite of “buy and hold” mutual funds will have a reduction in their overall fees effective February 1, 2012. Below illustrates the Class A and C share expenses for each of the funds encompassing the impending fee reductions.

    Old Fund Name

    A Share Expense Ratio
    (Prior to 2/1/12)

    New A Share
    Expense Ratio

    C Share
    Expense Ratio
    (Prior to 2/1/12)

    New C Share
    Expense Ratio

    Direxion Wilshire Dynamic Fund

    1.58%

    1.35%

    2.21%

    2.09%

    Direxion Long/Short IPO Global Fund

    2.01%

    1.40%

    2.51%

    2.15%

    Commodity Trends Strategy Fund

    1.75%

    1.30%

    2.26%

    2.04%

    Currency Trends Strategy Fund

    1.77%

    1.40%

    2.28%

    2.15%


    Share Class Restructuring:

    We are restructuring some of our share classes so we can provide more options for advisors. After the restructuring goes into effect, there will be a Class A (with load waived option), a Class C and an Institutional Share Class.

    Class A Share Redesignation: The current Investor Share Class for each of the funds will be redesignated as Class A share (load waived option). From a current shareholder’s viewpoint, this redesignation is not a taxable event, and existing shareholders will switch to Class A shares at NAV on February 1, 2012. For any new investors, the Class A shares will have the same characteristics of the Investor Class shares, except the Class A shares will have a waivable front-end sales charge. Despite the aforementioned changes, there will be no changes to CUSIPs or Ticker Symbols.

    The table below shows the front-end sales charge by dollar value of an investor’s purchases for any commission-based advisor:

    Purchases

    Front-End Sales Charges

    Less than $50,000

    5.50%

    $50,000-$99,999

    4.75%

    $100,000-$249,999

    3.75%

    $250,000-$499,999

    2.75%

    $500,000-$999,999

    2.00%

    $1 million and above

    0.00%

     

     

     

     

     

     

     


    Redemption Penalty Period:

    To accommodate asset allocation models that might be more dynamic in nature, we changed the redemption penalty period from 90 to 30 days effective February 1, 2012. The redemption amount will remain at 1%.

    As always, if you have any questions, please feel free to contact Direxion Funds at 877-437-9363 or info@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 funds that invest in specific industries or geographic regions 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.

    The risks associated with the funds are detailed in the prospectuses which include Adverse Market Conditions Risk, Adviser's Investment Strategy Risk, Aggressive Investment Techniques Risk, Commodities Risk, Concentration Risk, Counterparty Risk, Credit Risk, Currency Exchange Rate Risk, Debt Instrument Risk, Depositary Receipt Risk, Early Close/Trading Halt Risk, Emerging Markets Risk, Equity Securities Risk, Foreign Securities Risk, Gain Limitation Risk, Geographic Concentration Risk, Interest Rate Risk, Intra-Calendar Month Investment Risk, Inverse Correlation Risk, Leverage Risk, Lower-Quality Debt Securities, Market Risk, Market Timing Activity and High Portfolio Turnover, Monthly Correlation Risk, and Negative Implications of Monthly Goals in Volatile Market.

    Distributed by: Rafferty Capital Markets LLC