The funds, according to a press release, “utilize the expertise in asset allocation and portfolio construction of Wilshire Funds Management, the international investment management unit of Wilshire Associates Incorporated, a global investment services and consulting firm.
The Direxion/Wilshire Dynamic Portfolios combine both strategic and tactical asset allocation modeling. “The model portfolios enable financial advisers to achieve the desired beta exposure more efficiently, redeploy the resulting freed up capital to alternative asset classes and to adjust to changing market conditions,” according to the announcement.
Four traditional Wilshire asset allocation models are used as a basis for the Direxion /Wilshire Dynamic Portfolios, ranging from a conservative 40/60 model to an all equity model. Advisers who subscribe to the Direxion/Wilshire models are sent a monthly report that provides them with specific rebalancing recommendations based on the market environment, along with rationale for making potential allocation shifts.
Direxion’s funds provide daily exposure from 100% to 250% to the underlying asset classes represented by numerous market indices and were created to complement, not replace core holdings. According to the announcement, “in the Dynamic Portfolios, the additional exposure generated from the leveraged index funds is used to replicate beta, freeing up capital for further diversification to strategies that seek alpha and / or to investments with low correlations.’
Direxion Funds (formerly Potomac Funds), managed by Rafferty Asset Management, LLC, is a provider of leveraged index and alternative-class mutual fund products for investment advisers and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $1.5 billion in assets under management.
More information is available at http://www.direxionfunds.com.