U.S. Bancorp Fund Services LLC
615 East Michigan Street
Milwaukee, WI 53202
February 15, 2013
VIA EDGAR
United States Securities and Exchange Commission
Division of Investment Management
100 F. Street, N.E.
Washington, D.C. 20549-1004
| Re: | Direxion Funds (the “Trust”) |
| File Nos.: 333-28697 and 811-08243 |
Dear Sir or Madam:
Pursuant to Rule 497(e) of the Securities Act of 1933, as amended (the “1933 Act”) and the regulations thereunder, transmitted herewith on behalf of the Trust is the XBRL risk/return summaries and corresponding XBRL exhibits, noted below, that mirrors the revisions to the risk/return summary described for the Direxion/Wilshire Dynamic Fund and filed pursuant to Rule 497(e) under the 1933 Act on January 25, 2013. This January 25, 2013 Rule 497(e) filing (Accession No. 0000894189-13-000367) is hereby incorporated by reference to today’s Rule 497(e) filing.
The XBRL exhibits attached hereto consist of the following:
EXHIBIT INDEX
| Exhibit |
Exhibit No. | |
| Instance Document |
EX-101.INS | |
| Schema Document |
EX-101.SCH | |
| Calculation Linkbase Document |
EX-101.CAL | |
| Definition Linkbase Document |
EX-101.DEF | |
| Label Linkbase Document |
EX-101.LAB | |
| Presentation Linkbase Document |
EX-101.PRE | |
If you have any questions concerning the foregoing, please contact Adam Henkel of U.S. Bancorp Fund
Services, LLC at
(312) 325-2037.
Sincerely,
| /s/ Adam R. Henkel |
| Adam R. Henkel, Esq. For U.S. Bancorp Fund Services, LLC |
Direxion/Wilshire Dynamic Fund Class A (DXDWX) Class C (DXWCX) Institutional Class (DXDIX) A Series of the Direxion Funds Supplement dated January 25, 2013 to the Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”) dated February 1, 2012, as supplemented May 31, 2012 and August 31, 2012 Effective February 1, 2013, the Board of Trustees of the Direxion Funds (the “Trust”), based upon the recommendation of Rafferty Asset Management, LLC, the adviser for the Direxion/Wilshire Dynamic Fund (the “Fund”), a series of the Trust, has approved revisions to the Fund’s investment strategy. The Fund’s investment strategy will be as follows: Principal Investment Strategy Under normal circumstances, the Fund is managed by the Rafferty Asset Management, LLC (“Rafferty” or the “Adviser”) pursuant to Wilshire Associates Incorporated’s (“Wilshire” or the “Subadviser”) traditional asset allocation model which allocates approximately 60% of the Fund’s total assets to equity securities and 40% to fixed income securities, with a tactical overlay to increase or decrease the Fund’s risk exposure based on the Subadviser’s outlook for the market. By comparing the Subadviser’s own forecasts with those forecasts of a universe of institutional investors, the Subadviser is able to identify asset classes that it believes are over- and under-valued. The differences between the Subadviser’s forecasts and those of the universe of institutional investors represent opportunities that can be exploited through disciplined tactical, or short-term, asset allocation strategies. The Subadviser’s tactical model evaluates asset class allocations on a monthly basis and makes relevant adjustments, which may result in a high portfolio turnover rate for the Fund. The Adviser will implement these strategies for the Fund through the use of financial instruments, including futures contracts; options on securities, indices and futures contracts; equity caps, collars and floors; swap agreements; forward contracts, repurchase agreements and reverse repurchase agreements (collectively, “Financial Instruments”), to maximize the Fund’s risk-adjusted return. The equity portion of the Fund is comprised of the common stocks, preferred stocks, convertible securities and warrants of U.S. and foreign issuers, including small and mid capitalization companies and open- and closed-end investment companies, exchange-traded funds (“ETFs”) and Financial Instruments that provide exposure to U.S. and foreign equity indices. The fixed income portion of the Fund’s portfolio is comprised of high-quality fixed income securities (including investment-grade bonds and debt securities issued by U.S. and foreign government and corporate issuers) and Financial Instruments. The Fund may also invest in ETFs and open- and closed-end investment companies to gain exposure to high-quality fixed income securities. In response to market conditions, the Subadviser may recommend that the Adviser rebalance the Fund’s portfolio, use short positions and/or employ leverage in its tactical allocations. In addition, for temporary defensive purposes, the Fund may invest significantly in cash and/or cash equivalents. The Fund is a “non-diversified” fund, meaning that a relatively high percentage of its assets may be invested in a limited number of issuers of securities. |