DXCTXDXSCXDXCIX Direxion Indexed Commodity Strategy Fund Mutual Fund

Overview

The Direxion Indexed Commodity Strategy Fund seeks investment results, before fees and expenses, that track the performance of the Auspice Broad Commodity ER Index, (ABCERI), a long/flat index, that can be exposed to up to 12 commodities (long) or cash (flat).

Fact Sheet  Brochure  Prospectus

Key Features

Why Invest in the Fund?

  • The long/flat approach provides exposure to commodities that can individually be positioned long or flat (in cash) based upon price trends
  • Seeks to mitigate the downside risk and maximum declines relative to notable long-only commodity indices
  • Has the flexibility to make individual commodity position changes intra-month
  • Risk management controls designed to adjust exposure levels if volatility gets too high
  • Low- or non-correlation to stocks and bonds
  • Disciplined, quantitative, rules-based approach to commodity investing

 

Not just commodities – Long/Flat commodities.

Most traditional commodity funds provide long only exposure to commodities. This limits their potential to contribute to a portfolio’s long-term performance because they only benefit if commodity prices rise.

The Direxion Indexed Commodity Strategy Fund seeks to match the performance of the Auspice Broad Commodity ER Index (ABCERI), which provides exposure to 12 commodities that can individually be positioned long or flat (in cash) based upon price trends.

This long/flat index is potentially more adaptive to volatile commodity markets because it seeksto take advantage of individual commodities by going long when prices rise, and mitigate risk by going flat (to cash) when prices fall.

Strategy & Benefits

Principal Investment Strategy

The investment strategy of the Direxion Indexed Commodity Strategy Fund includes:

  • A quantitative, strategic index-based approach to commodity investing
  • Exposure to 12 commodities that can individually be long or flat (if a short signal is triggered the position is moved to cash)
  • The ability to make position changes intra-month based on trends
  • Monthly rebalance based on risk reduction where the allocation of individual components is reduced if volatility exceeds certain predetermined risk levels
  • A “smart” contract roll approach1

1 Smart Contract Roll Approach – A futures contract roll approach designed to select cost effective futures contracts to roll into upon expiration of current contract.

 

Why consider long/flat commodities?

Most traditional commodity funds can only benefit if commodity prices rise. However, these long-only commodity strategies have shown to be inconsistent over time because:

  • Commodity returns are typically cyclical and sporadic
  • Individual commodity sub-sectors tend to perform dissimilarly in different market environments
  • Significant draw-downs can be damaging to the long-term performance of a portfolio

Within the inherently volatile commodity markets, a long/flat approach is potentially more adaptive to whip-sawing market conditions.

Component Sectors

Component Sectors and Current Positioning (as of 6/30/2014)

Energy Position (Long/Flat)
Crude Oil LONG
Heating Oil LONG
Gasoline LONG
Natural Gas LONG

 

Metals Position (Long/Flat)
Copper FLAT (Cash)
Gold LONG
Silver FLAT (Cash)

 

Agriculture Position (Long/Flat)
Corn LONG
Soybeans LONG
Wheat LONG
Cotton FLAT (Cash)
Sugar FLAT (Cash)

When the positions within the various components are flat, they will be invested in cash and U.S. Treasury Bills. Individual components may vary based on risk levels.

Fund Symbol DXCTX DXSCX DXCIX
Bloomberg Index Symbol ABCERI ABCERI ABCERI
CUSIP 254939457 254939341 254939382
Gross Expense Ratio 1.26% 2.01% 1.01%
Net Expense Ratio 1.26% 2.01% 1.01%
Inception Date Jun 10, 2008 Mar 04, 2010 May 01, 2009

Pricing and Performance

Price Information
NAVs and market price information as of September 22, 2014

Ticker Fund Name NAV NAV Change $ NAV Change % Market Price Closing Market Price Closing Change($) Market Price Closing Change(%) Premium / Discount
DXCTX Direxion Indexed Commodity Strategy Fund - A Shares 17.33 -0.07 -0.40
DXSCX Direxion Indexed Commodity Strategy Fund - C Shares 16.81 -0.07 -0.41
DXCIX Direxion Indexed Commodity Strategy Fund - Institutional 17.51 -0.07 -0.40

Performance
NAVs and market price information as of September 22, 2014

All data as of 8/31/2014
Ticker Fund Name 1 Mo % 3 Mo % YTD 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
DXCTX Direxion Indexed Commodity Strategy Fund - A Shares -1.01 -3.82 -7.70 -10.73 -11.04 -9.09 -7.74 1.26 / 1.26
DXSCX Direxion Indexed Commodity Strategy Fund - C Shares -1.04 -4.04 -8.16 -11.39 -11.69 -8.47 2.01 / 2.01
DXCIX Direxion Indexed Commodity Strategy Fund - Institutional -0.95 -3.78 -7.53 -10.50 -10.82 -8.87 -8.18 1.01 / 1.01
All data as of 6/30/2014
Ticker Fund Name 1 Mo % 3 Mo % YTD 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
DXCTX Direxion Indexed Commodity Strategy Fund - A Shares 0.87 -1.86 -3.19 -5.81 -12.24 -8.29 -7.23 1.26 / 1.26
DXSCX Direxion Indexed Commodity Strategy Fund - C Shares 0.79 -2.07 -3.54 -6.50 -12.87 -7.74 2.01 / 2.01
DXCIX Direxion Indexed Commodity Strategy Fund - Institutional 0.86 -1.84 -3.06 -5.56 -12.05 -8.05 -7.60 1.01 / 1.01

The performance data quoted represents past performance; 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 for one year and under are cumulative, not annualized. Returns for performance for less than one year are cumulative, not annualized.

Distributions

Ticker Fund Name Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
DXCTX Direxion Indexed Commodity Strategy Fund - A Shares 0.76887
DXCIX Direxion Indexed Commodity Strategy Fund - Institutional 0.87346