DXAFXDXCFXDXIFX Direxion Long/Short Global Currency Fund Mutual Fund

Overview

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.

Fact Sheet Prospectus  

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.

 Index Correlation Comparison (12/31/2003 – 6/30/2014)

  REITs Hedge Funds Commodities Managed Futures Equities Fixed Income
Currencies -0.58 -0.60 -0.87 -0.44 -0.38 -0.07

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.

Fund Symbol DXAFX DXCFX DXIFX
Bloomberg Index Symbol
CUSIP 254939267 254939259 254939242
Gross Expense Ratio 1.24% 1.99% 0.99%
Net Expense Ratio 1.24% 1.99% 0.99%
Inception Date Oct 01, 2013 Oct 01, 2013 Oct 01, 2013

Pricing and Performance

Price Information
NAVs and market price information as of August 21, 2014

Ticker Fund Name NAV NAV Change $ NAV Change % Market Price Closing Market Price Closing Change($) Market Price Closing Change(%) Premium / Discount
DXAFX Direxion Long/Short Global Currency Fund - A Shares 37.47 0.07 0.19
DXCFX Direxion Long/Short Global Currency Fund - C Shares 37.21 0.07 0.19
DXIFX Direxion Long/Short Global Currency Fund - Institutional 37.55 0.07 0.19

Performance
NAVs and market price information as of August 21, 2014

All data as of 7/31/2014
Ticker Fund Name 1 Mo % 3 Mo % YTD 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
DXAFX Direxion Long/Short Global Currency Fund - A Shares -0.56 -1.64 -4.44 -6.85 1.24 / 1.24
DXCFX Direxion Long/Short Global Currency Fund - C Shares -0.62 -1.83 -4.88 -7.45 1.99 / 1.99
DXIFX Direxion Long/Short Global Currency Fund - Institutional -0.53 -1.56 -4.28 -6.65 0.99 / 0.99
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 %)
DXAFX Direxion Long/Short Global Currency Fund - A Shares -0.64 -1.99 -3.90 -6.33 1.24 / 1.24
DXCFX Direxion Long/Short Global Currency Fund - C Shares -0.69 -2.18 -4.29 -6.88 1.99 / 1.99
DXIFX Direxion Long/Short Global Currency Fund - Institutional -0.61 -1.91 -3.77 -6.15 0.99 / 0.99

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.

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 additional information, see the fund(s) prospectus or summary prospectus.

Distributions

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