Commodity Trends Strategy Fund Index Change
Please be advised of the changes implemented as of February 1, 2012 for the Commodity Trends Strategy Fund, and 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 table below shows 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)|
The following 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
(Prior to 2/1/12)
|New C Share
|Commodity Trends Strategy Fund||1.75%||1.30%||2.26%||2.04%|
Share Class Restructuring:
We have restructured some of our share classes so we can provide more options for advisors. We now include 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 was not a taxable event, and existing shareholders were switched to Class A share class holders at NAV on February 1, 2012. For any new investors, the Class A shares 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 are 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%|
|$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%.
If you have any questions, please feel free to contact Direxion Funds at 877-437-9363 or firstname.lastname@example.org.