Update your Portfolio

You're still using a remote control. You're still using Modern Portfolio Theory. But just as you've updated your remote control, you should also update your investment strategy. It's those updates that can take a classic and help it evolve into something more. The Direxion/Wilshire Dynamic fund is exactly that. It's a classic asset allocation fund updated as often as monthly, using a tactical overlay to take advantage of short-term market opportunities. Times have changed. Now, your investment strategy can evolve to change with them.

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about tactical investing in today's markets:

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Principal Investment Strategy

Wilshire Funds Management, the global investment management unit of Wilshire Associates ("Wilshire^®") assesses the current investment environment and 'tactically tilts' their proprietary moderate asset allocation model to various asset classes globally on a monthly basis. Wilshire's tactical model determines the overall exposure and investment levels for both the equity and fixed income portions of the fund.

How Tactical Overlays Work

The Dynamic Fund is based on Wilshire's moderate asset allocation model, the center graph in the image below, and defines the broad long-term guidelines for the Dynamic Fund's portfolio. Wilshire's tactical asset allocation process is designed to seek enhanced returns and manage risk by dynamically taking advantage of market pricing anomalies, strongly performing asset classes, and more. The hypothetical examples below reflect how the fund might allocate to different asset classes during (either "Bull" or "Bear") market conditions.

Fund Details

* Estimated Current Exposure Level data updated as often as once per minute, but this web page must be refreshed to obtain updated data.

	A Share Symbol: DXDWX CUSIP: 254939416 Inception Date: 03/02/2009 C Share Symbol: DXWCX CUSIP: 254939325 Inception Date: 03/01/2010
	The Direxion/Wilshire Dynamic Fund ("Dynamic Fund") seeks capital appreciation. To achieve its investment objective, the Dynamic Fund combines a strategic asset allocation with a "tactical overlay" to position the Dynamic Fund defensively or aggressively, depending upon the outlook of the Subadviser.
	Under normal circumstances, the Dynamic Fund is managed by the Adviser pursuant to the Subadviser's traditional asset allocation model which allocates approximately 60% of the Dynamic Fund's total assets to equity securities and 40% to fixed income securities, with a tactical overlay to increase or decrease the Dynamic Fund’s risk exposure based on the Subadviser's outlook for the market. The Subadviser's tactical model evaluates asset class allocations on a monthly basis. In response to market conditions, the Subadviser may recommend that the Adviser rebalance the Dynamic Fund's portfolio, use short positions and/or employ leverage in its tactical allocations.
	Fund Sector Changes Asset Class the Fund Previous Month the Fund Current Month Strategic Asset Allocation Tactical Weighting (+/- SAA) Cash 0.0% 0.0% 0.0% 0.0% TIPS 5.0% 5.0% 5.0% 0.0% US Treasury 0.0% 0.0% 0.0% 0.0% US Bonds 32.0% 32.0% 30.0% 2.0% High Yield Bonds 3.0% 3.0% 3.0% 0.0% US Fixed Income 40.0% 40.0% 38.0% 2.0%   Non US Fixed Income 2.0% 2.0% 2.0% 0.0% Large Growth 16.5% 16.5% 16.5% 0.0% Large Value 16.0% 16.5% 16.5% 0.0% Small Growth 2.5% 2.5% 2.5% 0.0% Small Value 1.5% 2.0% 2.0% 0.0% REITS 1.0% 1.0% 1.0% 0.0% US Equities 37.5% 38.5% 38.5% 0.0% Europe ex-UK 6.0% 7.0% 7.0% 0.0% United Kingdom 5.0% 5.0% 5.0% 0.0% European Equities 11.0% 12.0% 12.0% 0.0% Pacific ex-Japan 2.0% 2.0% 2.0% 0.0% Japan 3.5% 4.0% 4.0% 0.0% Pacific Equities 5.5% 6.0% 6.0% 0.0%   Emerging Markets 2.0% 2.0% 2.0% 0.0%   Commodities 2.0% 2.0% 1.5% 0.5% Total 100.0% 102.5% 100.0% 2.5% Total Fund Exposure Fund Statistics   Correlation • S&P 500 0.88 • Barclays Capital Aggregate Bond Index 0.14   Beta to S&P 500 0.58 Beta to Strategic Asset Allocation 0.93     Data as of 02/29/2012 is subject to change at any time and are not recommendations to buy or sell any security.
	February 29, 2012 Allocation Summary: This March the Direxion/Wilshire Dynamic Fund upheld its neutral weight position in the high yield and non-U.S. fixed income asset classes, as well as the overweight position in U.S. investment grade fixed income. The position in U.S. and non-U.S. equities was increased to neutral weight as volatility remains stable and global macro concerns have abated to some extent. The Fund maintained the overweight position in commodities as correlations across asset classes remain favorable to enhance risk diversification through alternative asset classes. The Fund's beta modestly increased to 1.01, making it neutrally positioned relative to the Strategic Asset Allocation (SAA). The U.S. equity market rallied in February, with the Wilshire 5000 Total Market IndexSM delivering a 4.23 percent return. Continuing from January, all size and style segments were positive this month, with the large-cap growth segment of the market performing the best. After delivering the relative top performance in January, the micro-cap style reversed its trend in February, returning the lowest relative performance of 2.65 percent. Nine out of ten GICS sectors delivered positive performance this month, with the Energy and Information Technology sectors delivering the strongest performance, returning 6.07 and 6.99 percent, respectively. The more defensive Materials and Utilities sectors turned in more muted performance, returning -0.18 and 0.65 percent, respectively. Following the trend from January, developed international equity markets gained more than their domestic peers this month, with the MSCI EAFE Index returning 5.74 percent. Emerging Markets performed slightly better, returning 5.99 percent. On a regional basis the Pacific region lagged, with the MSCI Pacific Index returning 4.81 percent. Europe was the top performer, with the MSCI Europe Index returning 6.33 percent. Global real estate markets also made gains, appreciating by 2.35 percent. As equities rallied this month, bonds were left nearly unchanged, with the Barclays U.S. Aggregate Bond Index losing -0.02 percent. As investors remained in a risk-on mode, Long-Term Treasuries suffered the widest loss among fixed-income securities, falling by -2.07 percent, while TIPS also struggled, returning -0.33 percent. On the other hand, credit and high yield outperformed this month, returning 0.75 and 2.37 percent, respectively.
	Regulatory Documents (including Prospectus, SAI, Semi-Annual Report and Annual Report)

Monthly Commentary as of February 29, 2012
Provided by: Wilshire Funds Management

Portfolio Allocation Commentary

This March the Direxion/Wilshire Dynamic Fund upheld its neutral weight position in the high yield and non-U.S. fixed income asset classes, as well as the overweight position in U.S. investment grade fixed income. The position in U.S. and non-U.S. equities was increased to neutral weight as volatility remains stable and global macro concerns have abated to some extent. The Fund maintained the overweight position in commodities as correlations across asset classes remain favorable to enhance risk diversification through alternative asset classes. The Fund's beta modestly increased to 1.01, making it neutrally positioned relative to the Strategic Asset Allocation (SAA).

The U.S. equity market rallied in February, with the Wilshire 5000 Total Market IndexSM delivering a 4.23 percent return. Continuing from January, all size and style segments were positive this month, with the large-cap growth segment of the market performing the best. After delivering the relative top performance in January, the micro-cap style reversed its trend in February, returning the lowest relative performance of 2.65 percent. Nine out of ten GICS sectors delivered positive performance this month, with the Energy and Information Technology sectors delivering the strongest performance, returning 6.07 and 6.99 percent, respectively. The more defensive Materials and Utilities sectors turned in more muted performance, returning -0.18 and 0.65 percent, respectively. Following the trend from January, developed international equity markets gained more than their domestic peers this month, with the MSCI EAFE Index returning 5.74 percent. Emerging Markets performed slightly better, returning 5.99 percent. On a regional basis the Pacific region lagged, with the MSCI Pacific Index returning 4.81 percent. Europe was the top performer, with the MSCI Europe Index returning 6.33 percent. Global real estate markets also made gains, appreciating by 2.35 percent.

As equities rallied this month, bonds were left nearly unchanged, with the Barclays U.S. Aggregate Bond Index losing -0.02 percent. As investors remained in a risk-on mode, Long-Term Treasuries suffered the widest loss among fixed-income securities, falling by -2.07 percent, while TIPS also struggled, returning -0.33 percent. On the other hand, credit and high yield outperformed this month, returning 0.75 and 2.37 percent, respectively.

Why invest in the Fund?

The Direxion/Wilshire Dynamic Fund:

• Uses built-in tactical strategies to capitalize on short-term market inefficiencies, and is designed for investors seeking to add further flexibility to traditional strategic (long-term only) asset allocation approaches.
• Enhances a moderate asset allocation portfolio with an ability to position assets either aggressively or defensively as often as monthly based on closely monitored, ever changing market conditions by adjusting the exposure levels to the sixteen different assets classes.
• Offers the potential for improved risk adjusted returns over time.

About the Manager

Wilshire Funds Management ("WFM") provides customized multi-discipline, multi-manager and hedge fund investment solutions to financial intermediaries serving retail and institutional investors. WFM offers both risk based and target maturity portfolios, multi-manager U.S., non-U.S. and global equity and fixed income portfolios, as well as global tactical asset allocation overlay portfolios. WFM advises on over $66B (as of 12/31/10) in assets, all in multi-manager and multi-asset class strategies.

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