Pear Tree Essex Environmental Opportunities Fund
The PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND operates at the nexus of environment and finance, investing in companies that enable greater natural resource and energy efficiency.
Investment Process
The Fund invests in companies the management team believes solve environmental and related social challenges, seeking to provide attractive financial and social impact returns. The Fund invests in public equities with full alignment to the U.N. Sustainable Development Goals. Investments are made across nine environmental themes, providing clean technology diversification in companies with revenue and earnings growth greater than the broad equity market, in companies exhibiting effective capital allocation and strong profitability.
Buy and Sell Discipline
The Fund is concentrated, typically owning 35-45 equity holdings, in growth companies which provide solutions to the world's environmental challenges. Stock selection is based on rigorous fundamental company analysis and a valuation process that is informed by the portfolio management team’s thematic industry assessment. The Fund is generally lower turnover, with half from existing positions. Position sizes average 2-3%, and are diversified across themes, geographies and industries. Risk management and assessment is integral to portfolio construction, with position sizes determined by industry maturity, liquidity, individual security volatility and the management of price and profit expectations.
Portfolio Management
The Fund is managed by William Page and Robert Uek of Essex Investment Management, LLC. Essex is an independent, employee-owned firm with over a 40-year history of growth equity investing. Page and Uek have almost 60 years of combined institutional investment experience. The portfolio management team has been managing clean technology portfolios for over 16 years, with the first listed impact strategy in North America.
Fund Overview
YTD RETURN*
16.97%
NAV*
$18.89
INCEPTION**
September 1, 2021
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q724
BENCHMARK
MSCI WORLD
NET EXPENSE RATIO(1)
1.24%
GROSS EXPENSE RATIO(2)
1.55%
*as of 5/1/2026
** 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.
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Sub-Advisor
Essex Investment Management Co., LLC
Essex Investment Management Company, LLC. follows an investment philosophy based on the early identification of growth, wherever growth exists.
Portfolio Managers
Robert Uek, CFA
William Page
Performance
| YTD As Of 5/1/2026 |
Quarterly As Of 3/31/2026 |
1 Year As Of 3/31/2026 |
3 Years As Of 3/31/2026 |
5 Years As Of 3/31/2026 |
10 Years As Of 3/31/2026 |
Since Inception As Of 3/31/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 16.97% | 0.37% | 34.63% | 5.33% | -1.26% | N/A | 6.77% | 1.55% | 1.24% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 23.47% | 1.32% | -1.53% | -27.88% | 10.89% | 62.76% | 25.43% | -15.79% | N/A | N/A | N/A |
Portfolio
as of March 31, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 37.30% |
|---|---|
| Infineon Technologies AG | 5.50% |
| Corteva, Inc. | 4.10% |
| Badger Meter, Inc. | 3.60% |
| Kingspan Group plc | 3.60% |
| Advanced Drainage Systems, Inc. | 3.60% |
| Enphase Energy, Inc. | 3.50% |
| Primoris Services Corporation | 3.40% |
| Keyence Corporation | 3.40% |
| Toray Industries, Inc. | 3.30% |
| Cognex Corporation | 3.30% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Industrials | 49.60% |
| Information Technology | 34.30% |
| Materials | 7.40% |
| Consumer Discretionary | 2.90% |
| Utilities | 2.40% |
| Consumer Staples | 2.10% |
| Cash and Other Assets (Net) | 1.30% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| United States | 69.20% |
| Japan | 11.40% |
| Germany | 7.60% |
| Ireland | 3.60% |
| Switzerland | 2.90% |
| China | 2.70% |
| Netherlands | 1.30% |
| Cash and Other Assets (Net) | 1.30% |
Portfolio Characteristics
| Net Assets | $26,956,298 |
|---|---|
| Number Of Holdings | 38 |
| Percentage in Top 10 Holdings | 37.30% |
| Weighted Average Market Cap (Mil) | $37,962.29 |
| Annual Turnover | 60.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 98.70% |
| Cash and Other Assets (Net) | 1.30% |
Commentary
For the Quarter ended March 31, 2026
Market Conditions and Investment Strategies
We believe the most important catalysts for clean technology which drove clean tech listed equity performance last year, rising
power demand and geoeconomic fragmentation are not only intact but have strengthened during the first quarter of 2026. The
Fund invests in infrastructure and industrial technologies that can power the energy transition and the world’s efficiency upgrade.
The Fund focuses on companies that cut costs, boost reliability and increase throughput across power, water, transport and
industry. Our focus is to invest in companies that enable the transition in real-world systems, and the Iran conflict further places a
premium on these catalysts. We must diversify our energy supplies to lessen economic and social harm while enabling economic
growth with enhanced productivity. The timing could not be better, as pricing for solar and battery storage is at all-time lows,
much cheaper than natural gas, with other competitive advantages such as speed to market. We believe this could not come at
a better time - the proverbial power switch is on. This switch extends beyond clean power, to clean resources and clean mobility
and systems. Building generation capacity alone is not enough. The real opportunity lies in efficiency – technologies that help
economies with production while using less energy.
Attribution
Contribution to first quarter performance was led by Amprius Technologies (AMPX), the battery technology company focused on
silicon anodes, which enable superior charging cycle life with twice the energy of current offerings. Long-term holding and machine
vision systems firm Cognex (CGNX) posted strong contribution on news it increased new customer accounts at three times the rate
of 2024. Crop protection firm Corteva (CTVA) was a strong contributor for the Fund. Corteva produces naturally derived biologicals
that improve crop yields and manage stresses such as severe heat. Nextpower (NXT) was also a top performance contributor,
offering solar and battery storage solutions for utility scale projects. NXT provides systems design and software to optimize power
output, their legacy solar trackers and new offerings such as electrical balance of systems solutions.
The top detractor of Fund performance for the first quarter was the German logistics and factory automation firm Kion Group
(KGX.GY), with share price weakness based on perceived pricing pressure and customer order delays. First Solar (FSLR) was
a performance detractor as its earnings results missed expectations due to weak revenue and profitability. We believe Rivian
Automotive (RIVN), while a detractor to Fund performance for the first quarter, will be a leading domestic electric vehicle
manufacturer as major US automakers scale back vehicle electrification. Rounding out the Fund performance detractors is Trimble
(TRMB), which provides systems for engineering and construction to optimize time and materials.
Outlook
Without power and water economic growth is impossible. The Fund invests across nine themes, that can be categorized as clean
power, clean mobility & systems and clean resources, which enable economic growth while lowering risks and optimizing inputs
such as energy. The global trends and risks that have been catalyzing the benefits of clean technology exploded with the conflict
in Iran, demonstrating the grave consequences when our economy is reliant on oil, a traded commodity with pricing volatility
that always spikes during global geopolitical conflicts. Oil prices spiked in 2008, driven by the rapid global commodity price
spikes as China and India entered the world stage of economic growth. Oil price pressure in 2013 was due to the Arab Spring,
which impacted fears of closure of the Suez Canal and the Sumed Pipeline, both critical choke points for oil trade, which were exacerbated later in the year by sanctions in Iran and the Syrian Civil War. As oil is a globally traded commodity, with marginal
demand and speculation driving pricing, commodity risk directly impacts our economic growth and social welfare. Contrast oil with
global battery prices which follow physics, exhibiting learning curves and subsequent technological adoption – a distributed resource
where electrons can be stored and harvested as needed, locally, limiting global trading risks and our need to deploy military forces
with civil and economic casualties. Physics matters, impacting economics and for this reason clean power is cheaper than fossil
fuels.
Clean tech we believe is now a national competitive advantage which the EU recognized at the start of the Ukrainian War and is
re-embracing as oil and natural gas prices spike. The drivers for clean tech going into 2026 were driven by geo-economics, such
as onshoring or tariff structures placing premiums on productivity and industrial efficiency – doing more with less amidst pricing
pressures. The data center and AI electron hunger brought to light the need for more power now, with greater efficiency. This, even
before the conflict with Iran. We believe that amidst uncertainty, the economies and companies which invest in technologies and
services that enhance efficiency and productivity will outcompete and lead.
Disclosures:
This commentary is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. The opinions and analyses expressed in this commentary are based on Essex Investment Management LLC’s (“Essex”) research and professional experience and are expressed as of the date of its release. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future periods. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $0.0000 | $0.0000 | $0.0000 |
| 2024 | $0.0000 | $0.0000 | $0.0000 |
| 2023 | $00000 | $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.
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, 2026 for all funds.
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 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.