Direxion Indexed CVT Strategy Fund

  • FUND SYMBOL

    DXCBX

  • BLOOMBERG INDEX

    QSCI

  • CUSIP

    254939234

  • EXPENSE RATIO (GROSS/NET %)

    1.62 / 1.62*

  • INCEPTION DATE

    Feb 05, 2014

Overview

The Direxion Indexed CVT Strategy Fund seeks investment results, before fees and expenses, that track the performance of the Aspen Quantitative Synthetic Convertible Index.

Strategy & Benefits

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.

Target Index

The Aspen Quantitative Synthetic Convertible Index (QSCI):

  • 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.

Investment Strategy

Principal Investment Strategy

The fund seeks to track the Aspen Quantitative 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.


Tax Reporting

Supplemental Tax Documents

Pricing and Performance

NAV information as of June 20, 2018. Line chart shows pricing trend over the last 30 days.

fund symbol

DXCBX

  • Net asset value (NAV)

    • 48.22
    • 0.12
    • 0.25

* The Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 1.35%. The Fund’s adviser, Rafferty Asset Management, LLC ("Rafferty") has entered into an Operating Expense Limitation Agreement with the Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to waive all or a portion of its management fee and/or reimburse the Fund for Other Expenses through September 1, 2019, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 1.35% of the Fund’s average daily net assets (excluding, as applicable, among other expenses, taxes, swap financing and related costs, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions and extraordinary expenses). If these expenses were included, the expense ratio would be higher.

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 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.

Distributions

  • DXCBX
  • Direxion Indexed CVT Strategy Fund
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
12/30/2016 01/03/2017 01/03/2017 0.16643
10/28/2016 10/31/2016 10/31/2016 4.31255