MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, July 7, 2009 Direxion Slows the Tempo for 17 Funds Direxion is changing the tracking timeframe for 17 of its mutual funds. In a filing last week, the leveraged index specialists revealed that all of their non-ETF mutual funds (except Direxion U.S. Government Money Market, Dynamic HY Bond and HY Bear), will seek "calendar month leveraged investment results, before fees and expenses" instead of "daily leveraged investment results," starting in August. And the leverage of each of those 17 funds will all shift to 2x (for both magnified and inverse index funds). A source familiar with the situation confirmed that Direxion's ETFs will continue to target daily leveraged results, at least for now. That industry insider explained the move as a small change to meet the demands of those investors utilizing the funds. "Investors don't internalize that daily means daily," the insider told MFWire, noting that most of the investors in Direxion's leveraged, non-ETF mutual funds aim for "medium-term holding periods" of less than a month. "A monthly reset period may be more interesting to them." "It's a change, but in the broad spectrum of things it's not a major change," the insider added. "They're still not not buy and hold types of investments. They're still tactical investment tools." The move affects the following funds (which have been renamed as well): Printed from: MFWire.com/story.asp?s=21987 Copyright 2009, InvestmentWires, Inc. All Rights Reserved |