Alternative Strategy Funds

Direxion Long/Short Global Currency Fund

The Direxion Long/Short Global Currency Fund is a cost-efficient and transparent way to get exposure to the asset class with exposure to 19 eligible currencies (Developed and Emerging Markets) that can be long or short against the U.S. Dollar.
  • Tickers:

     DXAFX
  • CUSIP:

     254939267
  • Objective:

     The Direxion Long/Short Global Currency Fund seeks capital appreciation. The Fund is a rules-based approach to currency investing that seeks to adhere to the rules of the Morgan Stanley Multi FX Enhanced V10 USD Index.
Symbol Fund Index/Benchmark Daily/Monthly Target Bloomberg Index Symbol
Long Term Investment
ETFs
Mutual Funds
DXAFX Direxion Long/Short Global Currency Fund - A Shares Morgan Stanley Multi Strategy Currency Index -
Short Term TradingAre Direxion Shares ETFs for you?
ETFs
Mutual Funds
Monthly
Quarterly (standardized)

    All Data as of 3/31/2014

    All Data as of 3/31/2014

Symbol Fund 1 Month
(%)
3 Month
(%)
YTD
(%)
1 Year
(%)
3 Year
(%)
5 Year
(%)
10 Year
(%)
Since
Inception
Inception
Date
Expense Ratio *
(Gross/Net %)
Long Term Investment
ETFs
Mutual Funds
DXAFX Direxion Long/Short Global Currency Fund - A Shares NAV -0.29 -1.95 -1.95 - - - - -4.43 10/1/2013 1.24 / 1.24
Short Term Trading
ETFs
Mutual Funds
Symbol Fund 1 Month
(%)
3 Month
(%)
YTD
(%)
1 Year
(%)
3 Year
(%)
5 Year
(%)
10 Year
(%)
Since
Inception
Inception
Date
Expense Ratio *
(Gross/Net %)
Long Term Investment
ETFs
Mutual Funds
DXAFX Direxion Long/Short Global Currency Fund - A Shares NAV -0.29 -1.95 -1.95 - - - - -4.43 10/1/2013 1.24 / 1.24
Short Term Trading
ETFs
Mutual Funds

* For ETFs, the advisor, Rafferty Asset Management, LLC has contractually agreed to waive all or a portion of its management fee and/or reimburse the fund for other expenses through September 1, 2015.

** The expenses are estimated based on projected assets. Please see prospectus for details (from the prospectus dated 3/21/14).

The performance data quoted represents past performance net of annual expenses but gross of any sales charge. The performance shown does not reflect the sales charge, therefore, the effect of the sales charge would reduce the performance shown. Past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance less than one year are cumulative, not annualized. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. For the most recent performance, see the “Performance” tab above or call (877) 437-9363.

Shares of DirexionShares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods shown. Absent these waivers, results would have been less favorable.


Symbol Fund NAV
(4/23/2014)
NAV
Change
($)
NAV
Change
(%)
Market Price Closing
(4/23/2014)
Market Price Closing Change
($)
Market Price Closing Change
(%)
Premium/
Discount
Long Term Investment
ETFs
Mutual Funds
DXAFX Direxion Long/Short Global Currency Fund - A Shares 37.58 $-0.05 -0.13% -- -- 0.00
Short Term Trading
ETFs
Mutual Funds

The performance data quoted represents past performance net of annual expenses but gross of any sales charge. The performance shown does not reflect the sales charge, therefore, the effect of the sales charge would reduce the performance shown. Past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance less than one year are cumulative, not annualized. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. For the most recent performance, see the “Performance” tab above or call (877) 437-9363.

Shares of DirexionShares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods shown. Absent these waivers, results would have been less favorable.

Symbol Fund Record Date Ex-Date Pay Date Income Dividend Short Term Capital Gain Long Term Capital Gain
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
Symbol Fund Index/Benchmark Monthly Target Estimated Current
Exposure Level *
Domestic
DXSLX Monthly S&P 500® Bull 2x Fund S&P 500® 200% 200%
DXSSX Monthly S&P 500® Bear 2x Fund S&P 500® -200% 200%
DXQLX Monthly NASDAQ 100® Bull 2x Fund NASDAQ 100® 200% 200%
DXRLX Monthly Small Cap Bull 2x Fund Russell 2000® 200% 200%
DXRSX Monthly Small Cap Bear 2x Fund Russell 2000® -200% 200%
International
DXZLX Monthly Latin America Bull 2x Fund S&P® Latin America 40 200% 200%
DXHLX Monthly China Bull 2x Fund FTSE/Xinhua China 25 Index 200% 200%
DXELX Monthly Emerging Markets Bull 2x Fund MSCI Emerging Markets Index SM 200% 200%
Fixed Income
DXKLX Monthly 7-10 Year Treasury Bull 2x Fund NYSE 7-10 Year Treasury Bond Index 200% 200%
DXKSX Monthly 7-10 Year Treasury Bear 2x Fund NYSE 7-10 Year Treasury Bond Index -200% 200%
DXCBX Indexed Synthetic Convertible Strategy Fund QES Synthetic Convertible Index -
DXCVX Indexed Synthetic Convertible Strategy Bear Fund QES Synthetic Convertible Index -
Commodity
DXCLX Monthly Commodity Bull 2x Fund Morgan Stanley® Commodity Related Index 200% 200%
Currency
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Overview

Why invest in Currencies?

  • Historically, volatility levels of currencies have been more closely related to the lower levels seen in Fixed Income.
  • They typically offer low correlation to traditional investments such as stocks and bonds, as well as to other alternatives.
  • They are a liquid asset class, as seen by the relative trading volume compared to stocks or bonds.
  • They may help to offset depreciation that can occur in foreign investments priced in foreign currencies if the US Dollar appreciates.

Strategy & Benefits

Principal Investment Strategy

The investment strategy of the Fund includes:

  • Cost-efficient and transparent way to get exposure to asset class
  • Ability to profit from currency movement regardless of direction
  • Rules-based strategy that utilizes a multi-factor model (interest rates, stock index performance, open interest and inflation)
  • Seeks to benchmark performance to the Morgan Stanley Multi FX Enhanced V10 USD Index (a rules-based index approach to currency investing)
  • Individual currency exposure capped at 25% of total assets for developed market and 20% of total assets for emerging market
  • 19 eligible currencies (Developed and Emerging Market) that can be long or short against the U.S. Dollar
  • Rebalances at minimum on monthly basis and targets risk level of 10%

Daily Market Turnover

The foreign exchange market, where currencies are traded, is the most liquid market in the world, trading more in one day than what the NYSE trades in one month.

Year to date 2013, more than $5.3 Trillion Dollars traded daily in the currency markets, and although the majority of that trading was done by large institutions, hedge funds and endowments; the individual investor has now gained access, in the form of mutual funds.

Of the currencies traded, the U.S. Dollar and Euro have the highest volumes, but both emerging market currencies and the commodity based currencies are increasing in popularity.

 

Currencies – A True Diversifier

Historically, currencies have shown independent risk/return characteristics with a low correlation to both traditional and alternative asset classes.This fund offers exposure to both Developed Market Currencies (9) and Emerging Market Currencies (10).

 

currency-turnover-1
Source: NYSE Euronext Statistics Archive 2013, Securities Industry and Financial Markets Association (SIFMA) 2012, Bank of International Settlements (BIS) Triennial Central Bank Survey 2013.

 Correlation Matrix 8/31/03-8/31/13 Index comparison

  REITs Hedge Funds Commodities Managed Futures Equities Fixed Income
Currencies 0.07 0.20 0.02 0.58 0.15 0.02

Source: Bloomberg. Index returns and correlations are historical and are not representative of any Fund performance. Total returns of the Index include reinvested dividends. One cannot invest directly in an index. Index descriptions: REITS are represented by the FTSE NAREIT All Equity REITs Index which is a free float adjusted market capitalization weighted index. Commodities are represented by the DJ-UBS Commodity Index, which is composed of futures contracts on physical commodities. The Hedge Funds above are represented by the HFRI Weighted Composite Index which is an equal weighted index of more than 1,600 hedge funds. The U.S. Dollar Index is a measure of the general international value of the U.S. Dollar relative to the British Pound, Euro, Japanese Yen, Swiss Franc, Canadian Dollar, and the Swedish Krone. S&P 500 is U.S. Equities and Barclays U.S. Agg is used as a benchmark for other bond funds. The Barclay Currency Traders Index is an equal weighted composite of managed programs that trade currency futures and/or cash forwards in the inter bank market. In 2013 there are 105 currency programs included in the index.

Component Sectors

Component Sectors

Direxion Long/Short Global Currency Fund (as of 3/31/2014)

Developed Market Currencies (9)

Australian Dollar

SHORT

 British Pound

SHORT

 Canadian Dollar

LONG

 Euro

LONG

Japanese Yen

SHORT

 New Zealand Dollar

LONG

 Norwegian Krone

SHORT

 Swedish Krona

LONG

 Swiss Franc

LONG

Emerging Market1 Currencies (10)

Brazilian Real

SHORT

 Hungarian Forint

SHORT

 Indian Rupee

LONG

 Indonesian Rupiah

LONG

 Mexican Peso

SHORT

 Philippine Peso

LONG

 Russian Ruble

SHORT

 South African Rand

LONG

 South Korean Won

SHORT

 Turkish Lire

LONG

1 Emerging markets are listed in the table above. The Indian Rupee, Indonesian Rupiah, Philippine Peso and Russian Ruble are capped at 5% of total assets.

Fund Literature

Fund Literature

Download fund literature and regulatory documents

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