Direxion Funds is preparing to break into the variable annuity and defined contribution savings markets. The Boston-based fund family formerly known as Potomac Funds announced this week the hiring of former MFS managing director Bennett Coleman as its first senior managing director of institutional sales.

According to Direxion CEO Ron Fernandes, the addition of the position is a "big strategic commitment to expansion," and Fernandes sees Coleman as the perfect choice for the job.

"He is one of the best in the world at this business," Fernandes told MFWire.com in an interview. "He built the business up at MFS, from zero to a thirty billion dollar franchise."

Fernandes described current Direxion's business with insurance companies on annuities and DC as an "add-on business," citing a handful of agreements and a dozen fund offerings. With the additon of Coleman in mid-August, all that is about to change. Fernandes also confirmed that Direxion has filed for a revision of its Variable Investment Trust, hoping to add up to 40 funds within the next few months.

"We'll offer very conservative leveraging of 125 percent, and a new institutional share class with lower management fees," Fernandes revealed, "all of which will set us apart from our competitors."

Coleman previously served as managing director of the insurance services group of MFS Investment Management. 

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