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*
-25.18%

NAV*
$20.27

INCEPTION
September 30, 1994

MINIMUM INVESTMENT
$2,500

CUSIP
70472Q880

BENCHMARK
MSCI EM

NET EXPENSE RATIO(1)
1.47%

GROSS EXPENSE RATIO(2)
1.69%

 

*as of 5/13/2022

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 5/13/2022
Quarterly
As Of 3/31/2022
1 Year
As Of 3/31/2022
3 Years
As Of 3/31/2022
5 Years
As Of 3/31/2022
10 Years
As Of 3/31/2022
Since Inception As Of
3/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-25.18% -12.70% -13.75% 8.01% 5.96% 2.63% 5.11% 1.69% 1.47%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
-2.13% 31.69% 23.78% -16.73% 26.26% 5.88% -16.37% -0.74% -4.59% 21.82% -18.00%

Portfolio

as of March 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 30.90
Taiwan Semiconductor Manufacturing Co., Ltd. 8.60%
Samsung Electronics Company Limited 5.10%
Infosys Limited - SP 3.30%
Wal-Mart de Mexico, S.A.B. de C.V. 2.20%
SK Hynix, Inc. 2.10%
AL Rajhi Bank 2.00%
Reliance Industries Ltd. 2.00%
China Merchants Bank Co., Ltd. - H Shares 1.90%
China Longyuan Power Group H 1.90%
iShares Core MSCI Emerging Markets ETF 1.80%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Information Technology 27.70%
Financials 23.80%
Industrials 11.10%
Communication Services 6.90%
Consumer Staples 5.70%
Consumer Discretionary 5.40%
Materials 5.00%
Health Care 4.60%
Energy 3.90%
Utilites 1.90%
Real Estate 0.30%
Mutual Funds* 1.80%
CASH + other assets (net) 1.90%

Top Ten Country Allocations

Percentage Of Total Net Assets 81.40%
China 19.20%
India 12.50%
South Korea 12.30%
Taiwan 12.00%
Mexico 7.00%
United States 5.70%
Brazil 3.40%
South Africa 3.30%
Indonesia 3.00%
Saudi Arabia 3.00%

Portfolio Characteristics

Net Assets $94,831,354
Number Of Holdings 125
Percentage in Top 10 Holdings 30.9
Weighted Average Market Cap (Mil) $165,394.74
Annual Turnover 128.00%

Portfolio Allocation

Percentage of Portfolio
Equity Securities 98.10%
Cash and Other Assets (Net) 1.90%

FOR THE QUARTER ENDED MARCH 31, 2022

The Pear Tree Axiom Emerging Markets World Equity Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, MSCI EM Index (the “Index”). The Fund achieved a return of (12.70%) at net asset value compared to (6.92%) for the Index.

Market Conditions and Investment Strategies

Heightened geopolitical and Chinese regulatory risks dominated within emerging markets while surging commodity prices,
rising global rates and increased talk of global recession further weighed on the emerging market asset class. Emerging
market value outperformed growth by 680 basis points during the first quarter and it was the sixth consecutive quarter of
value outperformance in emerging markets. Earnings remained resilient on average across the Fund’s holdings, most stocks
continuing to see forecast upgrades. As a result, the price correction left holdings at historically attractive levels for longerterm
performance. Sector rotations underlying the Index performance also presented a challenge.

Financials and Materials were the best performing sectors as Financials benefitted from rising interest rates while elevated global inflation lifted the Materials sector, which was then ‘supercharged’ by the supply shock which resulted from the Russian invasion of the Ukraine. The worst performing sectors included many of the ‘growthier’ parts of the global economy such as Consumer Discretionary, Communication Services, and Information Technology. Many of the Fund’s worst performing stocks this quarter were longer term contributors that suffered a price correction despite continued earnings growth.

Detracting countries for the quarter also included Brazil due to Financials, and China due to Consumer Discretionary and
Financials. Inversely, Russia was the highest contributing country on a relative basis, due to underweight exposure before selling
out to zero. Mexico was also a top contributing country, led by Consumer Staples and Financials, as well as Singapore, driven by
performance from Financials.

Portfolio Changes

The Fund increased its exposure to Financials during the period due to a combination of positive earnings surprise, as well
as continued sector-wide profitability tailwinds to be seen from rising interest rates across much of the world. The Fund also
moved closer to neutral Chinese financials (from underweight), as China adopts a more stimulative stance to support domestic
economic growth. We made reductions in automotive positions, as the industry is facing significant near-term challenges
from supply chain bottlenecks as well as rising raw material costs. The Fund added to Brazil during the period due to company
specific developments, as well as the view that the steep interest rate hiking cycle in the country (Brazil started hiking earlier
than many other countries) is likely to begin moderating soon. We also added to South Africa. In addition to increasing the
weight in South African Financials, we also initiated other positions including one in a leading food retailer in the country that is
benefitting from increased formalization of the industry and the rationalization of its less-profitable stores in countries outside of
its home market.

Outlook

While current growth remains healthy with especially strong labor and housing markets as well as tailwinds from re-opening
and residual stimulus, investors are increasingly factoring in the risk of a recession. The widely followed 2-10 year interest rate
spreads recently briefly inverted anticipating a possible recession in 1-2 years. Again, as with the Fed tightening, these concerns
might be creating public market opportunities for longer-term investors. Following every yield curve inversion since 1975,
markets rose over 70% of the time gaining 8% on average from the first day of inversion to the end of the subsequent recession,
again using the S&P 500 as a reference given the long-term data availability. Regarding the relative performance of growth
versus value styles during Fed tightening cycles, there is not enough long-term data to have strong views. However, based on the
limited data from the three most recent cycles for which style returns are available, growth moderately outperformed.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.3977 $0.0000 $1.9041
2020 $0.2402 $0.0000 $0.0000
2019 $0.3376 $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, 2022 for all funds and share classes except Pear Tree Essex Environmental Opportunities Fund. Fee waivers and/or expense reimbursement for Pear Tree Essex Environmental Opportunities Fund and its share classes are in effect through August 31, 2022.

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.