Apex Balanced Retirement 2045 Fund¶
Fund Ticker: ABR45X | CUSIP: 00412Q-60-1 | ISIN: US00412Q6018
Inception Date: April 3, 2013 | Fiscal Year End: December 31
Benchmark: S&P Target Date 2045 Index
Fund Manager: Christine Dahlgren, CFA, CFP | Co-Manager: Michael Tran, CFA, CAIA
Total Net Assets: $2.18 billion (as of September 30, 2025)
Investment Objective¶
The Apex Balanced Retirement 2045 Fund is designed for investors expecting to retire in or around the year 2045. The Fund seeks to provide long-term capital growth during the accumulation phase, transitioning to capital preservation and income generation as the target retirement date approaches and beyond. The Fund achieves this through a dynamic glide path that systematically adjusts the allocation between equity and fixed income asset classes over time.
The Fund aims to maximize the probability that an investor's retirement portfolio will sustain inflation-adjusted withdrawals of 4% per annum for 30 years post-retirement, based on Monte Carlo simulations using historical asset class return distributions.
Investment Strategy¶
The Fund operates as a fund-of-funds, investing in a combination of Apex proprietary mutual funds and third-party index funds to achieve its target asset allocation. The investment team manages the glide path, tactical asset allocation overlays, and underlying fund selection.
Current Asset Allocation (as of September 30, 2025 — approximately 20 years to target date):
| Asset Class | Current Allocation | Range |
|---|---|---|
| U.S. Large Cap Equity | 32.0% | 28-36% |
| U.S. Small/Mid Cap Equity | 10.0% | 7-13% |
| International Developed Equity | 18.0% | 14-22% |
| Emerging Markets Equity | 8.0% | 5-11% |
| Total Equity | 68.0% | 60-76% |
| U.S. Investment Grade Bonds | 14.0% | 10-18% |
| U.S. Treasury Inflation Protected (TIPS) | 5.0% | 3-7% |
| International Bonds (Hedged) | 4.0% | 2-6% |
| High Yield Bonds | 3.0% | 1-5% |
| Total Fixed Income | 26.0% | 20-32% |
| Real Assets (REITs, Commodities) | 4.0% | 2-6% |
| Cash & Short-Term | 2.0% | 0-5% |
| Total Alternatives/Cash | 6.0% | 4-8% |
Glide Path Progression: The Fund's equity allocation decreases approximately 2 percentage points per year, starting from approximately 90% equity at 30+ years before the target date, reaching 68% at 20 years, 45% at the target date (2045), and stabilizing at 30% equity at 10 years post-retirement (the "landing point"). The glide path is "through" retirement, meaning it continues to adjust after the target date.
| Years to Target Date | Equity % | Fixed Income % | Alternatives/Cash % |
|---|---|---|---|
| 30+ years (2015) | ~90% | ~8% | ~2% |
| 20 years (2025) | 68% | 26% | 6% |
| 10 years (2035) | 52% | 40% | 8% |
| At Target (2045) | 45% | 45% | 10% |
| 5 years post (2050) | 38% | 50% | 12% |
| 10+ years post (2055+) | 30% | 55% | 15% |
Tactical Overlay: The investment team may deviate from the strategic glide path by up to +/-5% in total equity exposure based on market conditions, valuations, and risk indicators. Tactical adjustments are governed by a proprietary risk model incorporating economic leading indicators, credit spreads, and equity market momentum signals.
Underlying Fund Selection: The Fund allocates to approximately 8-12 underlying funds, emphasizing low-cost index-tracking vehicles for efficient beta exposure (approximately 70% of assets) and actively managed Apex funds for alpha generation in less efficient asset classes (approximately 30% of assets).
Risk Factors¶
Asset Allocation Risk. The Fund's glide path is designed for investors retiring around 2045 and may not be suitable for investors with different time horizons, risk tolerances, or retirement income needs. The target-date approach is based on generalized assumptions and does not account for individual circumstances.
Equity Market Risk. With approximately 68% currently allocated to equities, the Fund is subject to significant equity market volatility. During the 2008 Financial Crisis, target-date 2045 funds experienced average declines of 38-44%, which may be unacceptable for investors approaching or in retirement.
Interest Rate Risk. The Fund's fixed income allocation (currently 26%) will increase over time, amplifying interest rate sensitivity as the target date approaches. Rising rates reduce the value of existing bond holdings, potentially impairing returns during the accumulation phase.
Inflation Risk. While the Fund includes TIPS and real asset allocations as inflation hedges, these may be insufficient to fully protect purchasing power during periods of elevated and persistent inflation. The 4% withdrawal rule assumes moderate long-term inflation; higher inflation could deplete retirement assets prematurely.
Underlying Fund Risk. The Fund invests in underlying mutual funds and ETFs, each subject to their own specific risks. Performance depends on the investment results of the underlying funds, and the Fund bears its proportionate share of underlying fund expenses (acquired fund fees and expenses).
International and Emerging Markets Risk. The Fund's 26% allocation to international equities exposes investors to currency fluctuations, political instability, and less liquid markets. Emerging markets (8% allocation) involve elevated risk as described in the Apex Emerging Markets Opportunity Fund prospectus.
Glide Path Risk. The glide path's predetermined equity reduction schedule may not align with actual market conditions. Reducing equity exposure during a prolonged bull market sacrifices upside, while maintaining equity exposure entering a bear market near the target date amplifies sequence-of-returns risk.
Longevity Risk. The Fund's post-retirement glide path assumes a 30-year retirement horizon. Investors who live significantly longer may require more aggressive asset allocation than the Fund's post-retirement landing point provides.
Manager Selection Risk. The Fund's performance depends partly on the investment team's ability to select appropriate underlying funds and manage tactical allocation overlays. Poor manager selection or untimely tactical decisions could result in underperformance.
Fee Schedule¶
| Fee Component | Rate |
|---|---|
| Management Fee | 0.15% of average daily net assets (fund-of-funds level) |
| 12b-1 Distribution Fee | 0.25% (Class A shares) |
| Other Expenses | 0.06% |
| Acquired Fund Fees & Expenses | 0.42% |
| Total Annual Expense Ratio | 0.88% (Class A) / 0.63% (Institutional) |
| Front-End Sales Load (Class A) | 4.50% on purchases under $50,000 |
| Contingent Deferred Sales Charge | None (Class A); 1.00% within 12 months (Class C) |
| Redemption Fee | None |
Expense Example: An investor purchasing $10,000 in Class A shares would pay approximately $450 in front-end load plus $88 in total annual expenses (including acquired fund fees) in the first year, totaling $538. Over 5 years, assuming 5% annual return, cumulative costs would approximate $1,174. Institutional class investors pay approximately $63 annually per $10,000 invested.
Note on Acquired Fund Fees: The 0.42% acquired fund fees and expenses (AFFE) represent the Fund's proportionate share of the expenses charged by the underlying funds. These fees are not paid directly by the Fund but are reflected in the NAV of the underlying fund holdings.
Historical Performance¶
Performance data as of September 30, 2025. Returns for periods greater than one year are annualized.
| Period | Fund (Class A, NAV) | Fund (Class A, w/ Load) | S&P Target Date 2045 Index | Morningstar Target Date 2045 Avg |
|---|---|---|---|---|
| 1 Year | 15.83% | 10.62% | 14.92% | 14.27% |
| 3 Year | 8.47% | 6.82% | 7.68% | 7.14% |
| 5 Year | 9.76% | 8.74% | 9.03% | 8.42% |
| 10 Year | 9.18% | 8.69% | 8.52% | 7.91% |
| Since Inception (4/3/2013) | 9.54% | 9.13% | 8.87% | 8.24% |
| Risk Metric (5-Year) | Fund | S&P Target Date 2045 Index |
|---|---|---|
| Standard Deviation | 13.62% | 13.89% |
| Sharpe Ratio | 0.59 | 0.53 |
| Beta | 0.96 | 1.00 |
| Max Drawdown | -23.41% | -24.87% |
| Upside Capture Ratio | 98.7% | 100.0% |
| Downside Capture Ratio | 93.1% | 100.0% |
Top 10 Holdings (Underlying Funds)¶
As of September 30, 2025. Holdings are subject to change.
| Underlying Fund | Asset Class | Expense Ratio | % of Net Assets |
|---|---|---|---|
| Apex US Large Cap Value Fund (AULVX) | U.S. Large Cap Equity | 0.66% | 16.2% |
| Vanguard Total Stock Mkt Index Inst (VITSX) | U.S. Broad Equity | 0.03% | 15.8% |
| Apex Global Equity Growth Fund (AGEGX) | Global Equity | 0.83% | 12.4% |
| iShares Core MSCI EAFE ETF (IEFA) | Int'l Developed Equity | 0.07% | 10.6% |
| Apex Emerging Markets Oppty Fund (AEMOX) | Emerging Markets Equity | 1.13% | 8.0% |
| Vanguard Total Bond Mkt Index Inst (VBTIX) | U.S. Inv Grade Bonds | 0.04% | 10.8% |
| iShares TIPS Bond ETF (TIP) | TIPS | 0.19% | 5.0% |
| Vanguard Total Intl Bond Idx Inst (VTIBX) | Int'l Bonds (Hedged) | 0.07% | 4.0% |
| Apex Real Estate Income Trust (AREIX) | REITs | 0.77% | 3.2% |
| iShares iBoxx High Yield Corp Bd (HYG) | High Yield Bonds | 0.49% | 3.0% |
| Top 10 Total | Wtd Avg: 0.39% | 89.0% |
Sector Allocation¶
The Fund's sector allocation is determined by the aggregate exposures of its underlying fund holdings.
| Asset Class / Sector | Effective Allocation |
|---|---|
| U.S. Large Cap Equity | 32.0% |
| U.S. Small/Mid Cap Equity | 10.0% |
| International Developed Equity | 18.0% |
| Emerging Markets Equity | 8.0% |
| U.S. Investment Grade Bonds | 14.0% |
| TIPS | 5.0% |
| International Bonds | 4.0% |
| High Yield Bonds | 3.0% |
| REITs / Real Assets | 4.0% |
| Cash & Equivalents | 2.0% |
Tax Implications¶
As a fund-of-funds, the Apex Balanced Retirement 2045 Fund generates taxable events both at the fund level (through tactical rebalancing and glide path adjustments) and at the underlying fund level.
Capital Gains Distributions: The Fund's annual glide path rebalancing and tactical adjustments generate capital gains distributions. In the fiscal year ended December 31, 2024, the Fund distributed $0.52 per share in long-term capital gains and $0.18 per share in short-term capital gains. Portfolio turnover at the fund-of-funds level was 22%, though underlying fund turnover varies.
Tax Efficiency Rating: Morningstar Tax Cost Ratio of 1.14% (3-year), placing the Fund in the 42nd percentile among target-date 2045 peers. The Fund's use of low-turnover index funds for approximately 70% of assets contributes to moderate tax efficiency.
Qualified Dividend Income: Approximately 58% of the Fund's ordinary income distributions qualified for the reduced QDI tax rate in the most recent fiscal year. The QDI percentage reflects the blended equity/bond exposure and the mix of domestic and international holdings.
Retirement Account Suitability: The Fund is primarily designed for tax-advantaged retirement accounts (401(k), 403(b), IRA). Investors holding the Fund in taxable accounts should be aware that annual rebalancing and glide path adjustments generate taxable events that may reduce after-tax returns. The Fund's relatively frequent distributions make it less suitable for taxable account placement.
Minimum Investment¶
| Share Class | Initial Investment | Additional Investment |
|---|---|---|
| Class A | $10,000 | $2,500 |
| Class C | $10,000 | $2,500 |
| Institutional | $250,000 | $10,000 |
| Retirement (401k/403b/IRA) | $1,000 | $100 |
The lower minimums for this Fund reflect its design as a core retirement holding suitable for systematic investing through payroll deductions and automatic investment plans.
Redemption Terms¶
Shares may be redeemed on any NYSE business day at the next-calculated NAV.
Settlement: Proceeds are available within T+1 business day for electronic transfers. The Fund does not impose an early redemption fee, recognizing that retirement investors may need to make periodic withdrawals.
Systematic Withdrawal Plans: Available with monthly, quarterly, or annual frequency. Minimum withdrawal of $250 per transaction. Shareholders may elect a fixed dollar amount or a percentage-based withdrawal.
Required Minimum Distributions (RMDs): The Fund facilitates automatic RMD calculations and distributions for shareholders holding the Fund in traditional IRAs or inherited retirement accounts, beginning at age 73 (as specified under the SECURE 2.0 Act of 2022).
Large Redemptions: The Fund reserves the right to take up to 7 calendar days to pay redemption proceeds exceeding $250,000 or 1% of Fund net assets, as permitted by Section 22(e) of the Investment Company Act of 1940.
Important Disclosures¶
Past performance does not guarantee future results. The Fund's investment return and principal value will fluctuate; shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than quoted. For current data, visit www.apexfinancialpartners.com/performance.
The Fund is not guaranteed. Target-date funds do not guarantee a specific level of income in retirement. The target date is the approximate year when an investor plans to begin withdrawing assets. The Fund's asset allocation becomes more conservative as the target date approaches, but the Fund does not guarantee against loss of principal at any time, including at or after the target date.
Investors should read the prospectus carefully before investing. The prospectus, dated January 28, 2025, contains important information about the Fund's objectives, risks, fees, and expenses. Copies are available at www.apexfinancialpartners.com/prospectus or by calling 1-800-APEX-FND.
The Fund is registered under the Investment Company Act of 1940. Apex Financial Partners is the investment adviser, registered with the SEC under the Investment Advisers Act of 1940. Shares are distributed by Apex Fund Distributors, LLC, member FINRA/SIPC.
S&P Target Date 2045 Index is designed to measure the performance of a hypothetical target-date strategy for investors expected to retire in 2045. The index is unmanaged and does not include fees, expenses, or sales charges. It is not possible to invest directly in an index.
The Fund's glide path and asset allocation strategy are reviewed annually by the Apex Investment Committee and may be modified based on evolving capital market assumptions, demographic trends, and regulatory requirements. Any material changes will be communicated to shareholders in advance.
Related Resources
Apex Global Equity Growth Fund — Prospectus & Fact Sheet
A diversified global equity fund targeting long-term capital appreciation through investments in large- and mid-cap growth companies across developed and emerging markets.
Apex Municipal Bond Yield Fund — Prospectus & Fact Sheet
A tax-exempt fixed income fund seeking high current income through investment-grade and select high-yield municipal bonds across U.S. states and territories.