Company Press Release

BOSTON, Feb. 13, 2012 -- Direxion, a leader in alternative investment solutions, has expanded their lineup of "buy and hold" alternative strategies with the launch of the Direxion Indexed Managed Futures Strategy Fund (ticker:DXMAX). The Fund gives investors a liquid, transparent, and cost-efficient way to invest in managed futures.

The Fund seeks to replicate the Auspice Managed Futures ER Index. This index is a completely quantitative, rules-based managed futures index made up of 21 futures markets (containing both physical commodities and financials), whose methodology is repeatable and verifiable.

The index has a number of attributes that differentiate it from other managed futures index strategies in the retail marketplace including; the ability to adjust positions intra-month, a monthly rebalance process that assesses volatility levels as a means to control risk, and a focus on shorter term trends to be more responsive. It also incorporates a smart contract roll process that takes into account contango[1] and backwardation[2].

Managed futures are an alternative investment that can benefit from price trends regardless of direction in the futures markets. They are one of the longest-standing alternative investment strategies utilized by investment firms. The asset class has a long term performance history that has shown the ability to generate positive returns during equity bear markets. Historically, Managed futures have also provided low correlation to stocks and bonds, as well as to other alternative investments. The managed futures market continues to see inflows of investment capital, having experienced a nearly 20 percent growth in assets in 2011.

"We are pleased to offer investors an innovative alternative investment strategy which further broadens our suite of "buy and hold" alternative products," said Ed Egilinsky, Managing Director, Head of Alternative Investments at Direxion. "There are very few investable managed futures indices currently available to the retail investor. We feel that this is a differentiated, cost efficient way for investors to get exposure to the managed futures asset class without the additional layer of underlying managers and the fees associated with them. This next generation version of managed futures indexing for the retail investor provides our shareholders with another opportunity to manage risk while pursuing returns in the current market."

For more information about Direxion, please contact James Doyle at 973-850-7308 or jdoyle@jcprinc.com.

About Direxion

Direxion Funds, managed by Rafferty Asset Management, LLC, offers alternative-class fund products and leveraged index funds for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $7.8 billion in assets under management as of 12/31/11. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit www.direxionfunds.com .

[1] Contango - When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date.

[2] Backwardation - A theory developed in respect to the price of a futures contract and the contracts time to expire. Backwardation says that as the contract approaches expiration, the futures contract will trade at a higher price compared to when the contract was further away from expiration. This is said to occur due to the convenience yield being higher than the prevailing risk free rate.

An investor should consider the investment objectives, risks, charges, and expenses of the Direxion Funds carefully before investing. The prospectus and summary prospectus contain this and other information about Direxion Funds. To obtain a prospectus or summary prospectus, please contact the Direxion Funds at 800.851.0511. The prospectus or summary prospectus should be read carefully before investing.

Investing in funds that invest in specific industries or geographic regions may be more volatile than investing in broadly diversified funds. The principal risks of investing in the Direxion Indexed Managed Futures Strategy Fund are Active and Frequent Trading Risk, Adverse Market Conditions Risk, Agriculture Investment Risk, Commodity Linked Derivatives Risk, Counterpart Risk, Credit Risk, Currency Exchange Rate Risk, Currency investment Risk, Debt instrument Risk, Derivatives Risk, Emerging Markets Risk, Energy Investment Risk, Foreign Securities Risk, Futures Contracts Risk, Interest Rate Risk, Leverage Risk, Market Risk, Non-Diversification Risk, Other Investment Companies (including Exchange-Traded Funds) Risk, Precious Metals Investment Risk, Regulatory Risk, Sector Risk, Shorting Securities Risk, Subsidiary Investment Risk, Tax Risk, Tracking Error Risk, and Volatility Risk.

Auspice Capital Advisors Ltd. is a registered Portfolio Manager / Investment Fund Manager in Canada and a registered Commodity Trading Advisor (CTA/CPO) and National Futures Association (NFA) member in the US.


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