Direxion Investments and Hilton Capital Management Partner To Provide a Multi-Asset Income Strategy

Twelve-year-old Strategy with $600 Million in Assets, Managed by Hilton in a SMA, Now Broadly Available in a Mutual Fund

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Direxion Investments

Dec 18, 2014, 08:30 ET

NEW YORK, Dec. 18, 2014 /PRNewswire/ -- Direxion Investments, an ally for both strategic and tactical investors seeking to solve for better investment outcomes, has expanded its actively managed mutual fund family. The Hilton Yield Plus Fund, managed by Hilton Capital Management, is now the Direxion Hilton Tactical Income Fund (HCYAX/ HCYIX). As the Fund's sub-advisor, Hilton Capital will continue to manage the Fund using the same principal investment strategy it has employed since the Fund's inception.

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Both Rafferty Asset Management LLC, the advisor to the Direxion Funds, and Hilton Capital Management, LLC are subsidiaries of Rafferty Holdings, LLC. Bill Garvey, Co-Founder and Chief Investment Officer of Hilton Capital, leads the portfolio management team. The strategy, which has been available in a separately managed account structure since 2001 and in a mutual fund structure since September 2013, offers clients a portfolio that seeks a consistent level of income and risk-adjusted growth, while aiming to preserve capital.

"This Fund embodies Direxion's mission to focus on helping investors solve for specific investment outcomes, regardless of the type of vehicle or whether it's index-based or actively managed," said Brian Jacobs, President of Direxion Investments. "For over 12 years, Hilton Capital has built a consistent track record by helping investors participate during up markets, while seeking protection on the downside."

The Direxion Hilton Tactical Income Fund offers a disciplined, nimble approach to balancing bonds with income-producing equity-based securities—all striving toward a focused outcome of consistent income generation, risk-adjusted growth and preservation of capital.

"We consider ourselves risk managers, first and foremost," said Bill Garvey. "Of course we want our clients to eat well, but not at the expense of sleeping well. We've earned investors' trust through the consistency of our track record over this 12-year period."

The Fund's strategy focuses on companies that provide services or products which are viewed as "needs-based"—including, but not limited to, energy, financials, consumer staples and healthcare. Needs-based companies typically pay higher equity dividends and dampen the cyclicality of the portfolio, increasing the likelihood of performing well in both rising and falling markets.

"We're excited about the opportunity to bring the time-tested portfolio management skills of Bill Garvey and his team to financial advisors in search of an investment income solution for their clients," said Mr. Jacobs.

About Direxion Investments:

Direxion Investments offers highly liquid, tactical and strategic institutional-quality ETFs and mutual funds for investors seeking to solve for better investment outcomes. Founded in 1997, the company has approximately $8.7 billion in assets under management as of September 30, 2014. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.

There is no guarantee that the funds will achieve their objectives.

For more information on all Direxion Funds, go to direxioninvestments.com, or call us at 866.476.7523.

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.

Mutual fund investing involves risk. Principal loss is possible. The Fund's strategy of investing in dividend-paying stocks involves the risk that such stocks may fall out favor with investors and underperform the market. In addition, there is the possibility that such companies could reduce or eliminate the payment of dividends in the future or the anticipated acceleration of dividends could not occur. The Fund may invest in foreign securities and ADR's which involve political, economic and currency risks, greater volatility and differences in accounting methods. Medium- and small- capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in REIT securities involve risks such as declines in the value of real estate and increased susceptibility to adverse economic regulatory expenses. The fund may invest in MLP's which can be negatively influenced when interest rates rise. These investments also entail many of the general tax risks of investing in a partnership. There is always the risk that an MLP will fail to qualify for favorable tax 2013 treatments. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and nonrated securities presents a greater risk of loss to principal and interest than higher-rated securities. Income from municipal securities may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors. Federal income tax rules will apply to any capital gains distributions. Because the funds invest in ETFs and ETN's, they are subject to additional risks that do not apply to conventional mutual funds. ETF risk includes the risks that the market price of the shares may trade at a discount to its net asset value ("NAV"), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund's ability to sell its shares. ETN risk includes the risks that the value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying securities' markets, changes in the applicable interest rates, changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced index. In addition, ETNs are unsecured debt of the issuer and would lose value if the issuer goes bankrupt.

Contact: James Doyle
JCPR
973-850-7308
[email protected]

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