DXCBX Direxion Indexed CVT Strategy Fund Mutual Fund

Overview

The Direxion Indexed CVT Strategy Bear Fund (DXCVX) was liquidated on September 22, 2014. For more information, please read the prospectus supplement.

The Direxion Indexed CVT Strategy Fund (DXCBX) seeks investment results, before fees and expenses, that track the performance of the QES Synthetic Convertible Index (QSCI).

Fact Sheet  Prospectus

Principal Investment Strategy

Principal Investment Strategy

The fund seeks to track the QES Synthetic Convertible Index, which seeks to replicate the total return of the US convertible bond markets, while also providing:

  • Potential added liquidity and transparency,
  • Freedom from capacity constraints that may impact convertible bond strategies, 
  • Synthetic exposure to the underlying convertible bond market, and
  • Exposure through broad-equity and fixed income indices to generate return stream of the convertible universe

These funds use investment techniques that may be considered aggressive and may entail significantly higher than normal risk. Further, the funds employ leverage which can accelerate the velocity of potential losses.

Why Convertible Bonds?

Why Convertible Bonds?

  • Pay coupon interest like corporate bonds, yet can also be converted into stock
  • Provide an opportunity to receive current income, yet avoid the inherently limited upside of regular bonds
  • Offer potentially less sensitivity to rising rates and inflation compared to traditional debt due to the embedded option to convert to stock

The key benefits of the strategy

  • Offer the potential for increased diversification1 and hedging to a portfolio
  • Potentially less sensitive to rising rates and inflationary environments 
  • Demonstrate possibly lower correlation to most other Fixed Income strategies

1 Diversification does not prevent a loss or ensure a gain.

About the Index

Index Description

The QES Synthetic Convertible Index:

  • Is designed to capture high correlation and similar overall returns to the convertible bond universe by investing in liquid market instruments with comparable characteristics to convertible bonds.
  • Analyzes aggregate data in the convertible bond universe to determine sensitivity to factors like equity price changes, interest rate changes, and changes in credit spreads.
  • Builds a portfolio of equity, fixed income, and credit instruments to capture those exposures synthetically with greater liquidity than a portfolio of convertible bonds.

Fund Symbol DXCBX
Bloomberg Index Symbol QSCI
CUSIP 254939234
Gross Expense Ratio 1.51%
Net Expense Ratio 1.35%*
Inception Date Feb 05, 2014

Pricing and Performance

Price Information
NAVs and market price information as of October 30, 2014

Ticker Fund Name NAV NAV Change $ NAV Change % Market Price Closing Market Price Closing Change($) Market Price Closing Change(%) Premium / Discount
DXCBX Direxion Indexed CVT Strategy Fund 44.18 0.23 0.52

Performance
NAVs and market price information as of October 30, 2014

All data as of 9/30/2014
Ticker Fund Name 1 Mo % 3 Mo % YTD % 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
DXCBX Direxion Indexed CVT Strategy Fund -4.38 -4.37 7.54 1.51 / 1.35*
All data as of 9/30/2014
Ticker Fund Name 1 Mo % 3 Mo % YTD % 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
DXCBX Direxion Indexed CVT Strategy Fund -4.38 -4.37 7.54 1.51 / 1.35*

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 under one year are cumulative, not annualized. For the most recent month-end performance please visit the funds website at www.direxioninvestments.com.

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. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. For additional information, see the fund’s prospectus or summary prospectus.

* The Net Expense Ratio of the Fund includes management fees, distribution and/or service (12b-1) fees, and other expenses, but does not include other indirect expenses such as Acquired Fund Fees and Expenses, leverage interest, and brokerage commissions. The Fund’s Advisor, Rafferty Asset Management, LLC has entered into an Operating Services Agreement with the Fund, under which Rafferty has contractually agreed to pay all expenses of the Fund through September 1, 2015 other than the management fees, 12b-1 fees and other indirect expenses mentioned above, effectively limit the expenses of the Fund to 1.35%.

Distributions

Ticker Fund Name Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain