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*
-31.75%

NAV*
$18.49

INCEPTION
September 30, 1994

MINIMUM INVESTMENT
$2,500

CUSIP
70472Q880

BENCHMARK
MSCI EM

NET EXPENSE RATIO(1)
1.43%

GROSS EXPENSE RATIO(2)
1.65%

 

*as of 11/25/2022

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 11/25/2022
Quarterly
As Of 9/30/2022
1 Year
As Of 9/30/2022
3 Years
As Of 9/30/2022
5 Years
As Of 9/30/2022
10 Years
As Of 9/30/2022
Since Inception As Of
9/30/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-31.75% -12.35% -34.33% -1.93% -1.39% -0.20% 3.95% 1.65% 1.43%

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 September 30, 2022

Top Ten Holdings

Percentage Of Total Net Assets 27.80
Taiwan Semiconductor Manufacturing Co., Ltd. 5.50%
Baidu, Inc. (a) 3.40%
Samsung Electronics Company Limited 2.80%
Reliance Industries Ltd. 2.80%
Alibaba Group Holding Ltd. (a) 2.60%
iShares Core MSCI Emerging Markets ETF 2.60%
Bharti Airtel Ltd. 2.20%
JD.com, Inc. 2.10%
Samsung SDI Co., Ltd. 1.90%
Hindustan Unilever Ltd. 1.90%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Financials 19.10%
Information Technology 16.90%
Consumer Discretionary 14.10%
Consumer Staples 11.50%
Industrials 9.70%
Communication Services 9.60%
Health Care 5.00%
Energy 4.10%
Materials 2.40%
Utilites 2.20%
Real Estate 0.60%
Mutual Funds* 2.60%
CASH + other assets (net) 2.20%

Top Ten Country Allocations

Percentage Of Total Net Assets 80.20%
China 26.00%
India 10.90%
Taiwan 10.40%
Brazil 8.80%
South Korea 6.60%
Indonesia 4.50%
United States 3.80%
Mexico 3.40%
Thailand 3.00%
United Kingdom 2.80%

Portfolio Characteristics

Net Assets $69,841,721
Number Of Holdings 125
Percentage in Top 10 Holdings 27.8
Weighted Average Market Cap (Mil) $107,782.69
Annual Turnover 103.00%

Portfolio Allocation

Percentage of Portfolio
Equity Securities 97.80%
Cash and Other Assets (Net) 2.20%

For the Quarter ended September 30, 2022

The Pear Tree Axiom Emerging Markets World Fund’s Ordinary Shares underperformed its benchmark, the MSCI EM Index (the “Index”). The Fund achieved a return of (12.35%) at net asset value compared to (11.42%) for the Index.

Market Conditions and Investment Strategies

The outlook for emerging markets has been improving after several challenging quarters. During the third quarter, the MSCI
Emerging Markets Index (“MXEF”) fell over 11%, challenged by global recession concerns, continued dollar strength, and
disappointing progress on China reopening. Continued market declines have pushed the MXEF Index to a historically attractive
valuation level of 10x one-year forward earnings vs. ten-year average forward multiple of 11x and a recent high at the end
of 2020 around 15x. Major EM country indices like the Hong Kong Hang Seng Index (HSI), Taiwan Taiex Index (TWSE), and
Brazil Ibovespa Index (IBOV) are trading two standard deviations below historic median valuation. Significant EM benchmark
constituents in the memory and semiconductor industries are trading at valuation multiples consistent with previous cyclical
troughs. Emerging markets are trading at a 26% discount to developed markets, in-line with history, even though EM growth may
be poised to accelerate relative to developed markets. The gap between emerging and developed growth, which compressed
to under one percentage point in 2021 and 2022, is expected to reaccelerate to greater than three percentage points in 2023,
which historically has been a catalyst for EM outperformance.

The best performing sector on a relative basis during the third quarter was Health Care, led by a Thai hospital stock on the
recovery of medical tourism. This was followed by Telecommunication Services, led by an Indian telecom services company,
driven by a more rational competitive landscape, continued price hikes, and the launch of its 5G service, and information
technology. Materials, Utilities, and Energy were the largest relative detractors for the quarter. Brazil was the top performing
country on a relative basis for the quarter, due to strong performance from Consumer Discretionary and Energy stocks. This was
followed by Indonesia, led by Financials, and Mexico. The largest relative detractors were China and India.

Portfolio Changes

Brazil was the largest country exposure increase during the quarter, with this position change supported by the potential peaking
of inflation and the partial removal of a presidential election overhang. Note that as of this writing, this election will go to a runoff
vote slated for the end of October after neither candidate secured a majority of votes in the recent first round of voting. This
pragmatic setup has been beneficial for risk assets. Inflation data in Brazil has improved after a prolonged period at elevated
levels; this peaking has also been associated with a currency (Brazilian Real) that has been resilient versus many other emerging
market economies. The Fund also increased its exposure to the Information Technology sector during the period largely due to
company specific drivers for portfolio holdings with exposures to electric vehicle (EV) batteries and Latin American payments. The
largest sector reduction was in Financials. Much of this change in positioning came within China amid ongoing concerns related
to contagion fears spreading from the Chinese Real Estate sector to Financials.

Outlook

Investors seem to be shifting attention from inflation toward the pace of a potential economic slowdown. The Fund’s portfolio of
well-capitalized, profitable, resilient, market leading businesses typically fare well during such economic slowdowns. The manager
has reduced or eliminated exposure to higher multiple stocks, companies facing cyclical or margin headwinds, and companies
with weaker funding. While this year has been challenging for growth investors, the manager has over a 25-year history of
consistently navigating policy-driven market volatility by adhering to its stock selection and portfolio construction processes.

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, 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.