Update your Portfolio

You're still using a remote control. You're still using Modern Portfolio Theory. But just as you've updated your remote control, you should also update your investment strategy. It's those updates that can take a classic and help it evolve into something more. The Direxion/Wilshire Dynamic fund is exactly that. It's a classic asset allocation fund updated as often as monthly, using a tactical overlay to take advantage of short-term market opportunities. Times have changed. Now, your investment strategy can evolve to change with them.

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about tactical investing in today's markets:

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Maneuvering Through Gridlock on the Way to the Efficient Frontier

Principal Investment Strategy

Wilshire Funds Management, the global investment management unit of Wilshire Associates ("Wilshire^®") assesses the current investment environment and 'tactically tilts' their proprietary moderate asset allocation model to various asset classes globally on a monthly basis. Wilshire's tactical model determines the overall exposure and investment levels for both the equity and fixed income portions of the fund.

How Tactical Overlays Work

The Dynamic Fund is based on Wilshire's moderate asset allocation model, the center graph in the image below, and defines the broad long-term guidelines for the Dynamic Fund's portfolio. Wilshire's tactical asset allocation process is designed to seek enhanced returns and manage risk by dynamically taking advantage of market pricing anomalies, strongly performing asset classes, and more. The hypothetical examples below reflect how the fund might allocate to different asset classes during (either "Bull" or "Bear") market conditions.

Fund Details

* Estimated Current Exposure Level data updated as often as once per minute, but this web page must be refreshed to obtain updated data.

	A Share Symbol: DXDWX CUSIP: 254939416 Inception Date: 03/02/2009 C Share Symbol: DXWCX CUSIP: 254939325 Inception Date: 03/01/2010
	The Direxion/Wilshire Dynamic Fund ("Dynamic Fund") seeks capital appreciation. To achieve its investment objective, the Dynamic Fund combines a strategic asset allocation with a "tactical overlay" to position the Dynamic Fund defensively or aggressively, depending upon the outlook of the Subadviser.
	Under normal circumstances, the Dynamic Fund is managed by the Adviser pursuant to the Subadviser's traditional asset allocation model which allocates approximately 60% of the Dynamic Fund's total assets to equity securities and 40% to fixed income securities, with a tactical overlay to increase or decrease the Dynamic Fund’s risk exposure based on the Subadviser's outlook for the market. The Subadviser's tactical model evaluates asset class allocations on a monthly basis. In response to market conditions, the Subadviser may recommend that the Adviser rebalance the Dynamic Fund's portfolio, use short positions and/or employ leverage in its tactical allocations.
	Fund Sector Changes Asset Class the Fund Previous Month the Fund Current Month Strategic Asset Allocation Tactical Weighting (+/- SAA) Cash 0.0% 0.0% 0.0% 0.0% TIPS 5.0% 3.0% 3.0% -2.0% US Treasury 0.0% 0.0% 0.0% 0.0% US Bonds 30.0% 37.0% 36.0% 6.0% High Yield Bonds 3.0% 3.0% 3.0% 0.0% US Fixed Income 38.0% 43.0% 42.0% 4.0%   Non US Fixed Income 2.0% 2.0% 2.0% 0.0% Large Growth 16.5% 16.0% 16.0% -0.5% Large Value 16.5% 15.5% 16.0% -0.5% Small Growth 2.5% 2.0% 2.0% -0.5% Small Value 2.0% 1.5% 1.5% -0.5% REITS 1.0% 1.0% 1.0% 0.0% US Equities 38.5% 36.0% 36.5% -2.0% Europe ex-UK 7.0% 5.5% 5.5% -1.5% United Kingdom 5.0% 4.5% 4.5% -0.5% European Equities 12.0% 10.0% 10.0% -2.0% Pacific ex-Japan 2.0% 1.5% 1.5% -0.5% Japan 4.0% 3.5% 3.5% -0.5% Pacific Equities 6.0% 5.0% 5.0% -1.0%   Emerging Markets 2.0% 2.0% 2.0% 0.0%   Commodities 1.5% 2.0% 2.5% 1.0% Total 100.0% 100.0% 100.0% 0.0% Total Fund Exposure Fund Statistics   Correlation • S&P 500 0.88 • Barclays Capital Aggregate Bond Index 0.14   Beta to S&P 500 0.58 Beta to Strategic Asset Allocation 0.93     Data as of 12/30/2011 is subject to change at any time and are not recommendations to buy or sell any security.
	January 2012 Allocation Summary: This January the Direxion/Wilshire Dynamic Fund maintained its neutral weight positions in the high yield and non-U.S. fixed income asset classes. Additionally, the Fund's overweight position in U.S. investment grade fixed income was modestly reduced. The Fund maintained its underweight positions in both U.S. and non-U.S. equity as volatility remains elevated as the European debt crisis continues to unfold, however the underweight position in U.S. equities was modestly reduced. The Fund increased its overweight position in commodities this month. The Fund's beta increased to 0.93 relative to the Strategic Asset Allocation's (SAA) neutral position of 1.0. It was a modestly positive December for domestic equity markets, with the Wilshire 5000 Total Market IndexSM returning 0.91 percent. Developed and emerging international equity markets fell more sharply than their domestic peers, with the MSCI EAFE Index returning -0.95 percent and the MSCI Emerging Markets Index returning -1.21 percent. On a style basis, value significantly outpaced growth, with the large and small cap value styles returning 3.0 and 1.25 percent, respectively. The growth style struggled more, with large and small cap growth returning -1.1 and -0.78 percent, respectively. Real Estate was a top performer this month, with the Wilshire U.S. REIT IndexSM returning 4.74 percent. On a sector basis the Telecomm, Utilities and Health Care sectors were top performers, while the Energy, Materials and Information Technology sectors all delivered negative performance. Developed international equity markets struggled much more than their domestic peers this December, with the MSCI EAFE Index returning -0.95 percent. Within developed international markets the Europe ex-U.K. region struggled most, falling -2.44 percent. The Pacific ex-Japan region also underperformed, falling by -0.93 percent. Emerging Markets declined even more than their developed market counterparts, falling -1.21 percent. Bonds delivered solid positive performance this month, with the Barclays U.S. Aggregate Bond Index returning 1.10 percent. As investors switched into a more risk-on mode, high yield and non-U.S. bonds were among the top performing fixed income asset classes, returning 2.48 and 0.84 percent, respectively.
	Regulatory Documents (including Prospectus, SAI, Semi-Annual Report and Annual Report)

Monthly Commentary January 2012
Provided by: Wilshire Funds Management

Portfolio Allocation Commentary

This January the Direxion/Wilshire Dynamic Fund maintained its neutral weight positions in the high yield and non-U.S. fixed income asset classes. Additionally, the Fund's overweight position in U.S. investment grade fixed income was modestly reduced. The Fund maintained its underweight positions in both U.S. and non-U.S. equity as volatility remains elevated as the European debt crisis continues to unfold, however the underweight position in U.S. equities was modestly reduced. The Fund increased its overweight position in commodities this month. The Fund's beta increased to 0.93 relative to the Strategic Asset Allocation's (SAA) neutral position of 1.0.

It was a modestly positive December for domestic equity markets, with the Wilshire 5000 Total Market IndexSM returning 0.91 percent. Developed and emerging international equity markets fell more sharply than their domestic peers, with the MSCI EAFE Index returning -0.95 percent and the MSCI Emerging Markets Index returning -1.21 percent. On a style basis, value significantly outpaced growth, with the large and small cap value styles returning 3.0 and 1.25 percent, respectively. The growth style struggled more, with large and small cap growth returning -1.1 and -0.78 percent, respectively. Real Estate was a top performer this month, with the Wilshire U.S. REIT IndexSM returning 4.74 percent. On a sector basis the Telecomm, Utilities and Health Care sectors were top performers, while the Energy, Materials and Information Technology sectors all delivered negative performance. Developed international equity markets struggled much more than their domestic peers this December, with the MSCI EAFE Index returning -0.95 percent. Within developed international markets the Europe ex-U.K. region struggled most, falling -2.44 percent. The Pacific ex-Japan region also underperformed, falling by -0.93 percent. Emerging Markets declined even more than their developed market counterparts, falling -1.21 percent.

Bonds delivered solid positive performance this month, with the Barclays U.S. Aggregate Bond Index returning 1.10 percent. As investors switched into a more risk-on mode, high yield and non-U.S. bonds were among the top performing fixed income asset classes, returning 2.48 and 0.84 percent, respectively.

Why invest in the Fund?

The Direxion/Wilshire Dynamic Fund:

• Uses built-in tactical strategies to capitalize on short-term market inefficiencies, and is designed for investors seeking to add further flexibility to traditional strategic (long-term only) asset allocation approaches.
• Enhances a moderate asset allocation portfolio with an ability to position assets either aggressively or defensively as often as monthly based on closely monitored, ever changing market conditions by adjusting the exposure levels to the sixteen different assets classes.
• Offers the potential for improved risk adjusted returns over time.

About the Manager

Wilshire Funds Management ("WFM") provides customized multi-discipline, multi-manager and hedge fund investment solutions to financial intermediaries serving retail and institutional investors. WFM offers both risk based and target maturity portfolios, multi-manager U.S., non-U.S. and global equity and fixed income portfolios, as well as global tactical asset allocation overlay portfolios. WFM advises on over $66B (as of 12/31/10) in assets, all in multi-manager and multi-asset class strategies.

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