Apex Emerging Markets Opportunity Fund¶

Fund Ticker: AEMOX | CUSIP: 00412Q-30-5 | ISIN: US00412Q3055
Inception Date: November 8, 2014 | Fiscal Year End: December 31
Benchmark: MSCI Emerging Markets Index
Fund Manager: Rajiv Subramanian, CFA | Co-Manager: Li Wei Zhang, PhD, CFA
Total Net Assets: $1.94 billion (as of September 30, 2025)

Investment Objective¶

The Apex Emerging Markets Opportunity Fund seeks long-term capital appreciation through investment in equity securities of companies domiciled in, or deriving at least 50% of revenues from, emerging and frontier market economies. The Fund targets companies positioned to benefit from secular growth trends including rising middle-class consumption, urbanization, digital transformation, and commodity demand in developing economies.

The Fund targets annualized returns exceeding the MSCI Emerging Markets Index by 200-350 basis points on a net-of-fee basis over rolling 5-year periods.

Investment Strategy¶

The Fund employs a high-conviction, research-intensive approach combining fundamental bottom-up stock selection with thematic top-down country and sector allocation. The investment team conducts approximately 400 company visits annually across 25+ countries to identify investment opportunities not fully reflected in consensus estimates.

Geographic Allocation: The Fund invests across MSCI-classified emerging and frontier markets. Current regional allocation targets: Asia ex-Japan 55-65%, Latin America 12-18%, Europe/Middle East/Africa (EMEA) 15-22%, and Frontier Markets 3-8%. Country concentration is limited to 25% in any single nation, with China/Greater China currently comprising approximately 22% of the portfolio.

Market Capitalization Range: The Fund targets mid-cap ($2B-$15B, 45-55% of portfolio) and large-cap (>$15B, 30-40%), with selective small-cap positions ($500M-$2B, 10-20%). Micro-cap securities (<$500M) are limited to 5% of net assets.

Thematic Overlays: The portfolio is tilted toward five structural themes: (i) digital economy enablers (fintech, e-commerce, cloud infrastructure), (ii) consumer premiumization, (iii) energy transition and green infrastructure, (iv) healthcare modernization, and (v) supply chain reconfiguration benefiting Southeast Asia and India.

The Fund may invest up to 20% of net assets in participatory notes (P-Notes) for market access, and may hold ADRs, GDRs, and local-market listed shares. Exchange-traded currency forwards and non-deliverable forwards (NDFs) may be used to manage currency exposure. The Fund does not systematically hedge foreign currency risk.

Risk Factors¶

Investing in the Apex Emerging Markets Opportunity Fund involves substantially higher risks than investing in developed market equities:

Emerging Markets Risk. Securities markets in emerging and frontier economies are characterized by lower liquidity, higher volatility, less regulatory oversight, and reduced transparency compared to developed markets. The MSCI Emerging Markets Index has exhibited annualized standard deviation of approximately 18-22% over the past decade, compared to 14-16% for the MSCI World Index.

Country and Political Risk. Emerging market investments are subject to risks of expropriation, nationalization, currency controls, political instability, corruption, and abrupt regulatory changes. Recent examples include regulatory overhauls in China's technology sector (2021), currency crises in Turkey and Argentina, and geopolitical tensions affecting Russia-linked assets.

Currency Risk. The Fund's holdings are denominated in multiple emerging market currencies (Chinese yuan, Indian rupee, Brazilian real, South Korean won, Taiwan dollar, Indonesian rupiah, among others). Emerging market currencies can experience extreme volatility; the Fund does not systematically hedge currency exposure, and a strengthening U.S. dollar may significantly reduce returns.

Liquidity Risk. Many emerging market securities trade with materially wider bid-ask spreads and lower daily volumes than developed market equivalents. Small- and mid-cap holdings in frontier markets may require multiple trading sessions to fully liquidate, and market closures or capital controls could restrict the Fund's ability to redeem holdings.

Regulatory and Legal Risk. Shareholder protections, accounting standards, and corporate governance norms vary widely across emerging markets. The Fund may have limited legal recourse in the event of fraud, misrepresentation, or disputes with local entities. IFRS and local GAAP discrepancies can obscure fundamental analysis.

Concentration Risk. The Fund's high-conviction approach results in a portfolio of 40-60 holdings, with the top 10 positions typically representing 38-48% of net assets. Idiosyncratic events affecting a single holding may have outsized impact on portfolio returns.

Frontier Markets Risk. Frontier market investments (currently 3-8% of net assets) involve all the risks of emerging markets in amplified form, including minimal regulatory infrastructure, extremely low liquidity, elevated political risk, and limited market data.

Sanctions and Restricted Markets Risk. The Fund may be unable to trade in, or may be forced to divest from, securities in countries subject to U.S. or international economic sanctions. Such forced sales may occur at a significant loss.

Fee Schedule¶

Expense Example: An investor purchasing $10,000 in Class A shares would pay approximately $550 in front-end load plus $138 in annual expenses in the first year, totaling $688. Over 5 years, assuming 5% annual return, cumulative costs would approximate $1,687. Institutional share class investors pay approximately $113 annually per $10,000 invested.

Historical Performance¶

Performance data as of September 30, 2025. Returns for periods greater than one year are annualized.

Top 10 Holdings¶

As of September 30, 2025. Holdings are subject to change.

Sector Allocation¶

Tax Implications¶

The Fund distributes substantially all net investment income and realized capital gains annually.

Capital Gains Distributions: Due to the Fund's active management style and portfolio turnover rate of 84% for the fiscal year ended December 31, 2024, the Fund may generate significant short-term and long-term capital gains. In the most recent year, the Fund distributed $0.93 per share in long-term gains and $0.51 per share in short-term gains.

Tax Efficiency Rating: Morningstar Tax Cost Ratio of 1.87% (3-year), placing the Fund in the 67th percentile among diversified emerging markets peers. The relatively high turnover and emerging market premium contribute to reduced tax efficiency.

Foreign Tax Credits: The Fund intends to pass through to shareholders any foreign taxes paid on investment income from non-U.S. sources. In the most recent fiscal year, foreign taxes paid were approximately $0.18 per share. Shareholders may be eligible for a foreign tax credit or deduction on their U.S. federal income tax returns. Form 1099-DIV will report the amount of foreign taxes paid.

Qualified Dividend Income: Approximately 41% of the Fund's ordinary income distributions qualified for the reduced QDI tax rate in the most recent fiscal year. QDI qualification is limited for many emerging market securities due to tax treaty requirements.

Minimum Investment¶

Redemption Terms¶

Shares may be redeemed on any business day the NYSE is open. Redemption orders received before 4:00 PM ET are executed at the same day's NAV.

Settlement: Proceeds are remitted within T+2 business days for standard redemptions. Due to time zone differences and local market settlement cycles (up to T+3 in certain markets), large international positions may require extended settlement periods of up to 10 business days.

Early Redemption Fee: A 2.00% redemption fee applies to shares held fewer than 90 days. The fee is designed to offset the substantial transaction costs (including local market stamp duties, turnover taxes, and wider bid-ask spreads) incurred when the Fund must sell emerging market securities to meet short-term redemptions.

Redemption Gates: In extraordinary circumstances involving market closures, capital controls, or other events preventing orderly disposition of Fund assets, the Board of Trustees may temporarily suspend the right of redemption or postpone the payment date as permitted under Section 22(e) of the 1940 Act.

Important Disclosures¶

Past performance does not guarantee future results. The value of investments and the income derived from them may go down as well as up, and investors may not get back the amount originally invested. Emerging markets investing involves substantially higher risks and volatility than investing in developed markets.

Investors should read the prospectus carefully before investing. The prospectus, dated January 28, 2025, contains detailed information about the Fund's objectives, strategies, risks, 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 Advisers Act of 1940. Registration with the SEC does not imply a certain level of skill or training. Shares are distributed by Apex Fund Distributors, LLC, member FINRA/SIPC.

MSCI Emerging Markets Index captures large and mid-cap representation across 24 emerging market countries. The index is unmanaged and does not reflect deductions for fees, expenses, or taxes. It is not possible to invest directly in an index.