Pear Tree Axiom Emerging Markets World Equity Fund

The PEAR TREE AXIOM EMERGING MARKETS WORLD EQUITY FUND provides investors with the opportunity to participate in the growth potential of emerging market countries. Over 20 countries located in Europe, Latin America, Africa, the Middle East and Asia are classified as emerging markets.

Investment Process

The Fund, managed by Axiom Investors, uses a fundamental investment philosophy to select companies benefiting from a sustained period of dynamic earnings growth. The Fund concentrates its investments in companies domiciled in emerging market countries but also invests in select developed market companies achieving significant growth in emerging markets. The investment universe consists of a broad emerging market related opportunity set from which the Portfolio Managers select 100+ dynamic growth stocks by implementing Axiom's disciplined, repeatable investment process.

Buy and Sell Discipline

The Fund employs a fundamental, dynamic growth investment discipline to identify companies offering a combination of (1) under recognized improvements in the business's key operational drivers (2) sustainable underlying earnings growth providing durable investment performance tailwinds, and (3) an attractive valuation both enhancing the upside potential and moderating the investment risks. Companies are consistently evaluated using a database of fundamental information and a proprietary ratings framework to assess their risk/return profile. The Fund incorporates real time data daily to monitor the development of portfolio holdings, re-confirm security risk-return ratings and adjust portfolio positions proactively.

Portfolio Management

The Fund is managed by Lead Portfolio Manager and Axiom's Chief Investment Officer, Andrew Jacobson, CFA, and Co-Portfolio Managers, José Gerardo Morales, CFA, and Andrew Yoon, CFA. The portfolio management team has broad emerging markets expertise with an average industry experience of 25 years.

Fund Overview

YTD RETURN*
-34.27%

NAV*
$18.09

INCEPTION
April 2, 1996

MINIMUM INVESTMENT
$1,000,000

CUSIP
70472Q872

BENCHMARK
MSCI EM

NET EXPENSE RATIO(1)
1.06%

GROSS EXPENSE RATIO(2)
1.40%

 

*as of 9/28/2022

Investment Professionals

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Sub-Advisor

Axiom Investors

Axiom Investors manages international, global, small cap, and emerging market equities on behalf of its global institutional clients.

Portfolio Managers

Andrew Jacobson, CFA
Jose Gerardo Morales, CFA
Andrew Yoon, CFA

Performance

YTD
As Of 9/28/2022
Quarterly
As Of 6/30/2022
1 Year
As Of 6/30/2022
3 Years
As Of 6/30/2022
5 Years
As Of 6/30/2022
10 Years
As Of 6/30/2022
Since Inception As Of
6/30/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-34.27% -14.35% -29.95% 2.21% 2.48% 2.26% 5.66% 1.40% 1.06%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
-1.74% 32.21% 24.27% -16.43% 26.68% 6.22% -16.19% -0.45% -4.38% 22.15% -17.83%

Portfolio

as of June 30, 2022

Top Ten Holdings

Percentage Of Total Net Assets 28.70
Taiwan Semiconductor Manufacturing Co., Ltd. 5.70%
Baidu, Inc. (a) 3.80%
Reliance Industries Ltd. 3.30%
Samsung Electronics Company Limited 3.10%
BYD Company Ltd. 2.50%
JD.com, Inc. 2.10%
Ping An Insurance Group H Share 2.10%
China Longyuan Power Group H 2.10%
Tencent Holdings Limited 2.00%
iShares Core MSCI Emerging Markets ETF 2.00%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Financials 24.20%
Information Technology 13.40%
Consumer Discretionary 11.50%
Communication Services 11.20%
Industrials 9.10%
Consumer Staples 8.90%
Energy 6.80%
Health Care 4.30%
Materials 3.60%
Utilites 3.00%
Real Estate 0.60%
Mutual Funds* 2.00%
CASH + other assets (net) 1.40%

Top Ten Country Allocations

Percentage Of Total Net Assets 80.20%
China 34.60%
Taiwan 9.70%
India 7.90%
South Korea 7.00%
Brazil 4.80%
Indonesia 3.80%
Mexico 3.80%
United Kingdom 3.00%
South Africa 2.90%
Thailand 2.70%

Portfolio Characteristics

Net Assets $79,097,870
Number Of Holdings 129
Percentage in Top 10 Holdings 28.7
Weighted Average Market Cap (Mil) $126,503.42
Annual Turnover 103.00%

Portfolio Allocation

Percentage of Portfolio
Equity Securities 98.60%
Cash and Other Assets (Net) 1.40%

FOR THE QUARTER ENDED JUNE 30, 2022

The Pear Tree Axiom Emerging Markets World Equity Fund’s Ordinary Shares underperformed its benchmark, MSCI EM Index (the “Index”). The Fund achieved a return of (14.42%) at net asset value compared to (11.34%) for the Index.

Market Conditions and Investment Strategies

The outlook for growth stocks appears to be improving after several very challenging quarters. During the second quarter, the
MSCI EM Growth Index fell just under 12%, underperforming value by minus one percentage point, bringing the year-to-date
growth decline to just under 21%. The policy driven inflation and cyclical tailwinds that hurt growth stocks and fueled the recent
value stock rally are showing signs of peaking as the Fed has moved more aggressively to tighten monetary policy, joining many
other central banks around the world. Several important contributors to inflation are in the early stages of potentially peaking,
contrary to a now pessimistic consensus. Recent signs of softening Russia sanctions may further ease commodity markets.
Moreover, supply chain disruptions which meaningfully contributed to recent inflation, are also showing strong signs of reversing.
Employment and housing conditions remain very tight but there have been recent hints of topping out. If inflation inputs start to
cool, it will likely still take time to become visible in reported consumer prices. Additional geopolitical supply shocks are always
a risk, and central banks will need to stick to the now anticipated strong tightening schedule to bring headline inflation back
under control. The market is increasingly seeing hopeful signs that this now widely expected policy tightening will be effective,
improving the outlook for longer-term growth investors.

The largest relative sector detractors for the quarter were Consumer Discretionary, due to the underweight to Chinese Internet
companies, Industrials, and Health Care. The best performing sector on a relative basis during the second quarter was
Communication Services, followed by Materials. From a country perspective, China, India and Brazil were the top detracting
countries during the quarter on a relative basis.

Portfolio Changes

The Fund increased our exposure to large Chinese internet platforms due to a combination of fading regulatory headwinds
and the potential for positive margin driven by meaningful cost reductions. We increased our exposure to sectors with more
defensive characteristics amid the increasingly uncertain economic backdrop. We added to Telecommunication positions due
to their defensive earnings profiles, as well as growing evidence of improving competitive backdrops in select geographies. We
reduced positions in sectors with higher cyclicality, particularly in the Information Technology sector. We reduced our exposure to
IT service companies due a combination of wage-related input cost pressure, and as the growing economic uncertainty creates
risk to future revenue growth. We also reduced our exposure to semiconductors, as falling demand for many consumer electronic
products is causing a corresponding fall in demand for chips that go into these devices.

Outlook

Regarding the attractiveness of emerging markets, not only are EM valuations especially low, currently trading 35% below
developed market prices, but emerging market growth we believe is poised to accelerate relative to developed markets. Key
emerging markets, notably including China, might be easing and/or in the earlier stages of post-COVID reopening even as many
developed markets face continued policy tightening and other headwinds. We anticipate that the gap between developed and
emerging market growth, to reaccelerate to two and a half percentage points in the coming year, which historically has been a
catalyst for EM outperformance. Any moderation in the very elevated US dollar when US rates peak could be a further catalyst.
Axiom’s dynamic growth stocks tend to be less economically sensitive and benefit from generally high profitability, low leverage,
and strong organic growth drivers helping them to outperform during economic growth slowdowns. After the sharp recent
rotations, prospective growth stock valuations have returned to historically supportive levels

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.5145 $0.0000 $1.9041
2020 $0.3267 $0.0000 $0.0000
2019 $0.4263 $0.0000 $0.0000

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost.

Before investing, carefully consider the Fund's investment objectives, risks, charges and expenses. For this and other information obtain the Fund's prospectus or, if available, the Fund's summary prospectus by calling (800) 326-2151 or by clicking the Literature and Forms section of this website to view or download a prospectus or, if available, a summary prospectus. Please read the prospectus carefully before you invest or send money.

1, 3, 5, and 10Yr performance numbers quoted are average annual total returns. Performance numbers quoted under one year are cumulative.

Polaris Capital began subadvising the Pear Tree Small Cap Fund on January 1, 2015.

Axiom International Investors began subadvising the Pear Tree Axiom Emerging Markets World Equity Fund December 8, 2018.

The Pear Tree Essex Environment Opportunities Fund (the “Fund”) is the successor to the investment performance of the Essex Environmental Opportunities Fund (“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund into the Environmental Opportunities Fund on September 1, 2021. Performance information shown prior to the close of business on August 31, 2021 is that of the Predecessor Fund’s for the Fund’s Ordinary Shares and Institutional Shares.

Expense Ratios Disclosure

1. Expense Ratio (Gross)
The gross expense ratio is the total operating expense from the class of shares of the fund stated as a percent of the fund's total net assets as disclosed in the fund’s most recent prospectus before waivers or reimbursements.

2. Expense Ratio (Net)
Net Expense Ratio is the total annual operating expense from the class of shares of the funds stated as a percent of the fund's total net assets as disclosed in the fund’s most recent prospectus after any fee waiver and/or expense reimbursements that will reduce any fund operating expenses until July 31, 2023.

Risk Disclosure

Pear Tree Polaris Foreign Value
Pear Tree Polaris Foreign Value Small Cap
Pear Tree Polaris International Opportunities
Pear Tree Polaris Small Cap
Pear Tree Axiom Emerging Markets World Equity
Pear Tree Essex Environmental Opportunities

Foreign and Emerging Market Risk. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile.

Small Cap Investing. The value of securities of smaller, less well-known issuers can perform differently from the market as a whole and other types of stocks and can be more volatile than that of larger issuers.