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*
10.88%

NAV*
$9.17

INCEPTION
January 29, 2019

MINIMUM INVESTMENT
$100,000

CUSIP
70472Q799

BENCHMARK
MSCI EM

NET EXPENSE RATIO(1)
1.00%

GROSS EXPENSE RATIO(2)
1.25%

 

*as of 1/27/2023

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 1/27/2023
Quarterly
As Of 12/31/2022
1 Year
As Of 12/31/2022
3 Years
As Of 12/31/2022
5 Years
As Of 12/31/2022
10 Years
As Of 12/31/2022
Since Inception As Of
12/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
10.88% 5.62% -30.56% -3.35% N/A N/A 1.54% 1.25% 1.00%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-30.56% -1.71% 32.29% 24.38% -16.73% 26.26% 5.88% -16.37% -0.74% -4.59% 21.82%

Portfolio

as of December 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 32.30%
Taiwan Semiconductor Manufacturing Co., Ltd. 6.90%
Samsung Electronics Company Limited 3.70%
Tencent Holdings Limited 3.30%
Alibaba Group Holding Ltd. 3.10%
Baidu, Inc. 3.00%
Ping An Insurance Group H Share 3.00%
JD.com, Inc. 2.40%
Reliance Industries Ltd. 2.40%
Trip.com Group Limited 2.30%
AIA Group Ltd. 2.20%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Financials 24.70%
Information Technology 18.30%
Consumer Discretionary 17.70%
Communication Services 9.00%
Consumer Staples 9.00%
Industrials 6.50%
Health Care 5.60%
Energy 3.90%
Materials 1.30%
Real Estate 1.20%
Utilites 1.00%
Mutual Funds* 1.60%
CASH + other assets (net) 0.20%

Top Ten Country Allocations

Percentage Of Total Net Assets 84.50%
China 29.30%
India 12.30%
Taiwan 11.50%
South Korea 8.50%
Brazil 4.40%
Mexico 4.40%
Saudi Arabia 3.90%
Indonesia 3.60%
United States 3.40%
Thailand 3.20%

Portfolio Characteristics

Net Assets $
Number Of Holdings 120
Percentage in Top 10 Holdings 32.30%
Weighted Average Market Cap (Mil) $119,782.48
Annual Turnover 103.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 99.80%
Cash and Other Assets (Net) 0.20%

For the Quarter ended December 31, 2022

The Pear Tree Axiom Emerging Markets World Equity Fund’s Ordinary Shares underperformed its benchmark, the MSCI EM Index (the “Index”). The Fund achieved a return of 5.47% at net asset value compared to 9.79% for the Index.

Market Conditions and Investment Strategies

Growth stock valuations corrected very sharply over the course of 2022. The Fund’s dynamic growth stocks faced especially
strong headwinds with growth significantly underperforming value globally this year as central banks undertook the most
aggressive tightening cycle since the early 1980’s. For the first time in at least 50 years, both stocks and bonds experienced
broad declines, creating opportunities for longer-term investors. With inflation and inflation expectations past their peak and
market-based forward inflation break-evens now back within central banks’ targeted ranges, monetary authorities appear
close to accomplishing their goal of taming rapid price growth. Given still tight labor markets, central banks have expressed a
commitment to a few last hikes. Nevertheless, the tightening cycle is expected to end in the next few months. If any easing were
to occur in the back half of 2023, as anticipated in the fed funds futures market, it would be especially beneficial for growth
equities.

The best performing sectors on a relative basis during the fourth quarter were Energy and Consumer Discretionary, driven by
Chinese travel companies and restaurant chains. Communication Services, Information Technology, and Consumer Staples were
the largest relative detractors for the quarter. Hong Kong was the top performing country on a relative basis for the quarter,
due to insurance stocks, followed by Qatar, due to underweight exposure, and lastly Denmark, driven by health care stocks. The
largest relative detractor was China, followed by Brazil and the US.

Portfolio Changes

The Fund increased its exposure to several companies in China that we expect will benefit from the easing of Covid-driven
mobility restrictions (this is currently occurring faster than consensus expectations), as well as companies that likely benefit from
China’s growing thrust to support its ailing Real Estate sector. Much of this increase was funded by a reduction in exposure to
electric vehicles due to the potential for a demand slowdown in 2023, particularly in China, following a recent period of outsized
growth. The Fund reduced its allocation to Brazil. The incoming President has been more disruptive to the market and less
fiscally restrained than initial expectations. This has pushed up inflation expectations, pushed out the expected timing of policy
interest rate cuts and has created a headwind to Brazilian assets broadly.

Outlook

Value stocks were lifted by the strong gains in the Energy sector that followed Russia/Ukraine, and significantly outperformed
growth in 2022. In 2023, growth stocks are currently forecast to resume outgrowing value stocks with forecast earnings growth
more than 10% higher. Recent signs of a moderating policy tone from China combined with a quieter election calendar globally
are noteworthy and provide additional opportunities for global investors. After several years of elevated geopolitical risk, any
moderation in macro uncertainty would also represent a tailwind for equity markets generally, and typically supports the
manager’s stock-selection driven alpha.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2022 $0.0000 $0.0000 $0.0000
2021 $0.5260 $0.0000 $1.9041
2020 $0.3363 $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.