EX-99.G.I.B 5 d801457dex99gib.htm EX-99.G.I.B EX-99.G.I.B

Exhibit (g)(i)(B)

Final

DIREXION FUNDS AND DIREXION INSURANCE TRUST

FIRST AMENDMENT TO THE CUSTODY AGREEMENT

THIS FIRST AMENDMENT, dated as of July 10, 2014, to the Custody Agreement dated as of March 17, 2010 (the “Agreement”), is entered into by and among DIREXION FUNDS, a Massachusetts business trust, DIREXION INSURANCE TRUST, a Massachusetts business trust (collectively referred to as the “Trust”) and U.S. BANK, NATIONAL ASSOCIATION, a national banking association (the “Custodian”).

RECITALS

WHEREAS, the parties have entered into the Agreement; and

WHEREAS, the parties desire to amend the fees of the Agreement; and

WHEREAS, Article XV, Section 15.02 of the Agreement allows for its amendment by a written instrument executed by all parties.

NOW, THEREFORE, the parties agree as follows:

Exhibit C is hereby superseded and replaced in its entirety with Amended Exhibit C attached hereto.

Except to the extent amended hereby, the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by a duly authorized officer on one or more counterparts as of the day and year first written above.

 

DIREXION FUNDS     U.S. BANK, NATIONAL ASSOCIATION
By:  

/s/ Patrick Rudnick

     By:  

/s/ Michael R. McVoy

Name: Patrick Rudnick     Name: Michael R. McVoy
Title: Chief Financial Officer     Title: Senior Vice President
DIREXION INSURANCE TRUST      
By:  

/s/ Patrick Rudnick

      
Name: Patrick Rudnick      
Title: Chief Financial Officer      

 

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Amended Exhibit C to the Custody Agreement – Direxion Funds and Direxion Insurance Trust

Fees at July 1, 2014

Annual Custody Fee – All Funds

                    basis points, subject to a $             annual minimum fee for complex*

All transaction charges will be waived

Overdrafts will be charged to the account at prime interest rate plus 2.

Extraordinary services may be provided with agreed-upon costs. Global Custody fees, if any, are extra.

CPI will not apply.

 

* The fees set forth in this contract will be aggregated with other USBFS service line fees, the total of which will be subject to this overall fee governor:

 

If aggregate complex assets are...

   

USBFS will charge no more than this basis

point for assets in the level*

  

$ - $

      bp   

$ - $

      bp   

$ - $

      bp   

Assets over $

      bp   

These fees are cumulative, meaning that anything charged at a certain breakpoint will be added to the fees for the previous breakpoint, if any. Service line minimums are not subject to the fee governor.

Fees are billed monthly.

 

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Amended Exhibit C – Direxion Funds and Direxion Insurance Trust

GLOBAL SUB-CUSTODIAL SERVICES

ANNUAL FEE SCHEDULE at January 1, 2010

 

Country

    Instrument    Safekeeping
(BPS)		    Transaction
Fee

Argentina

    All      

Australia

    All      

Austria

    All      

Bahrain

    All      

Bangladesh

    All      

Belgium

    All      

Benin

    All      

Bermuda

    All      

Botswana

    All      

Brazil

    All      

Bulgaria

    All      

Burkina Faso

    All      

Canada

    All      

Cayman Islands

    All      

Channel Islands

    All      

Chile

    All      

China“A” Shares

    All      

China“B” Shares

    All      

Columbia

    All      

Costa Rica

    All      

Croatia

    All      

Cyprus

    All      

Czech Republic

    All      

Denmark

    All      

Ecuador

    All      

Egypt

    All      

Estonia

    All      

Euromarkets(3)

    All      

Finland

    All      

France

    All      

Germany

    All      

Ghana

    All      

Greece

    All      

Guinea Bissau

    All      

Hong Kong

    All      

Hungary

    All      

Iceland

    All      

India

    All      

Indonesia

    All      

Ireland

    Equities      

Ireland

    Gov’t Bonds      

Israel

    All      

Italy

    All      

Ivory Coast

    All      

Jamaica

    All      

Japan

    All      

Jordan

    All      

Kazakhstan

    All      

Kenya

    All      

Latvia

    Equities      

Latvia

    Bonds      

Lebanon

    All      

Country

    Instrument    Safekeeping
(BPS)		    Transaction
Fee

Lithuania

    All      

Luxembourg

    All      

Malaysia

    All      

Mali

    All      

Malta

    All      

Mauritius

    All      

Mexico

    All      

Morocco

    All      

Namibia

    All      

Netherlands

    All      

New Zealand

    All      

Niger

    All      

Nigeria

    All      

Norway

    All      

Oman

    All      

Pakistan

    All      

Palestinian

    All      

Peru

    All      

Philippines

    All      

Poland

    All      

Portugal

    All      

Qatar

    All      

Romania

    All      

Russia

    Equities/Bonds      

Russia

    MINFIN      

Senegal

    All      

Serbia

    All      

Singapore

    All      

Slovak Republic

    All      

Slovenia

    All      

South Africa

    All      

South Korea

    All      

Spain

    All      

Sri Lanka

    All      

Swaziland

    All      

Sweden

    All      

Switzerland

    All      

Taiwan

    All      

Thailand

    All      

Togo

    All      

Trinidad & Tobago

    All      

Tunisia

    All      

Turkey

    All      

UAE

    All      

United Kingdom

    All      

Ukraine

    All      

Uruguay

    All      

Venezuela

    All      

Vietnam

    All      

Zambia

    All      

Zimbabwe

    All      
        
 

 

Base Fee - A monthly base charge of $    per fund/account that requires global custody for trading in Canada only If global custody is required for another country in addition to Canada, the monthly base charge is $    per fund/account (see detailed transaction and other fees on the following page 31) This fee will be waived on a monthly basis if there is no trading activity or holdings in the global custody account each month.

 

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Amended Exhibit C to the Custody Agreement – Direxion Funds and Direxion Insurance Trust

Notes (the following pertain to Global Fees):

 

  (1) Fee is expressed in basis points per annum where one basis point equals one hundredth of one percent (.01%) and is calculated based upon month-end market value, unless stated otherwise.

 

  (2) A transaction is defined as a receipt or delivery versus payment, a free receive or deliver, maturities, or security transaction related to corporate events.

 

  (3) Euroclear – Eurobonds only. Eurobonds are held in Euroclear at a standard rate, but other types of securities (including but not limited to equities, domestic market debt and mutual funds) will be subject to a surcharge. In addition, certain transactions that are delivered within Euroclear or from a Euroclear account to a third party depository or settlement system, will be subject to a surcharge (surcharge schedule available upon request)

 

  •   Note, for all other markets specified above, surcharges may apply if a security is held outside of the local market.

Straight Through Processing – fees waived

For non-US resident clients investing in the U.S. market:

Fees for US custody are provided on the basis that if assets are held in an omnibus account for multiple underlying clients, the Client will take the necessary action to attain Qualified Intermediary (QI) status for US IRS withholding tax purposes. Should the Client fail to take the necessary action, the fee quoted would be subject to review, and all costs incurred by The Bank of New York in fulfilling its obligations under the US regulations would be passed to the Client. Please refer to the separate Non-Resident Alien (NRA) fee schedule.

Note: for the clients who are the sole beneficial owner of the assets held in their account with The Bank of New York and the client has provided a “W8Ben” form per account stating their ownership of the assets, the above will not apply.

Cash Transactions

 

  •   Currency Trade - $ per transaction

 

  •   3rd Party Foreign Exchange – a Foreign Exchange transaction undertaken through a third party will be charged $50.

Standard Non-U.S. Proxy Services Fees

 

•      Notification

    $     

•      Vote

    $     

•      Relationship Set Up Fee

    $     

Tax Reclamation Services – may be subject to additional charges depending upon the service level agreed. Tax reclaims that have been outstanding for more than 6 (six) months with the client will be charged $     per claim.

Communication Fees

 

  •   INFORM – Access to The Bank of New York proprietary application, INFORM, for standard custody instructions and reporting will be provided at a cost of USD $     per month including installation and training.

 

  •   SWIFT Reporting and Message Fees – the following fees will apply in respect of client requested SWIFT reports and messages:

 

  

•    Cash Reporting –

   
  

•    MT900 – Cash Debit Advice

    $     each
  

•    MT910 – Cash Credit Advice

    $     each
  

•    MT940 – Detail Cash Statement

    $     per message
  

•    MT950 – Cash Statement

    $     per message
  

•    Securities Position Reporting

   
  

•    MT535 – Statement of Holdings

    $     per message
  

One MT535 will be issued per account per month free of charge.

   
  

•    MT536 – Statement of Transactions

    $     per message
  

•    MT537 – Statement of Pendings

    $     per message
  

•    Confirmations

   
  

•    MT544 – Receive Free Confirm

    $     per message
  

•    MT545 – Receive Against Payment Confirm

    $     per message
  

•    MT546 – Deliver Free Confirm

    $     per message
  

•    MT547 – Deliver Against Payment Confirm

    $     per message
  

•    Facsimile Reporting Fees

   
  

•    Corporate Actions Notifications

    $     per notification
  

•    Cash and Securities Reports

    $     per page

Out of Pocket Expenses

 

  •   Charges incurred by The Bank of New York for local taxes, stamp duties or other local duties and assessments, stock exchange fees, postage and insurance for shipping, facsimile reporting, extraordinary telecommunications fees or other expenses which are unique to a country in which the client or its clients is investing will be passed along as incurred.

 

  •   A surcharge may be added to certain out-of-pocket expenses listed herein to cover handling, servicing and other administrative costs associated with the activities giving rise to such expenses. Also, certain expenses are charged at a predetermined flat rate.

 

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