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*
-2.72%
NAV*
$15.71
INCEPTION**
September 1, 2021
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q724
BENCHMARK
MSCI WORLD
NET EXPENSE RATIO(1)
1.24%
GROSS EXPENSE RATIO(2)
1.64%
*as of 11/6/2026
** 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 11/6/2026 |
Quarterly As Of 9/30/2026 |
1 Year As Of 9/30/2026 |
3 Years As Of 9/30/2026 |
5 Years As Of 9/30/2026 |
10 Years As Of 9/30/2026 |
Since Inception As Of 9/30/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| -2.72% | -14.83% | 6.67% | 12.77% | -0.73% | N/A | 7.02% | 1.64% | 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 September 30, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 37.20% |
|---|---|
| Keyence Corporation | 4.90% |
| Kingspan Group Plc | 4.90% |
| Badger Meter, Inc. | 3.70% |
| Toray Industries, Inc. | 3.70% |
| SMA Solar Technology AG | 3.70% |
| Veralto Corporation | 3.50% |
| Infineon Technologies AG | 3.40% |
| GE Vernova Inc. | 3.30% |
| Advanced Drainage Systems, Inc. | 3.20% |
| Kurita Water Industries Ltd. | 2.90% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Industrials | 53.50% |
| Information Technology | 25.70% |
| Materials | 7.80% |
| Consumer Discretionary | 2.10% |
| Utilities | 1.90% |
| Consumer Staples | 1.70% |
| Financials | 1.60% |
| Energy | 1.20% |
| Cash and Other Assets (Net) | 4.50% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| United States | 59.60% |
| Japan | 13.60% |
| Germany | 7.10% |
| Ireland | 4.90% |
| Netherlands | 2.90% |
| Canada | 2.40% |
| Israel | 1.90% |
| United Kingdom | 1.60% |
| China | 1.50% |
| Cash and Other Assets (Net) | 4.50% |
Portfolio Characteristics
| Net Assets | $27,926,073 |
|---|---|
| Number Of Holdings | 42 |
| Percentage in Top 10 Holdings | 37.20% |
| Weighted Average Market Cap (Mil) | $35,695.60 |
| Annual Turnover | 56.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 95.50% |
| Cash and Other Assets (Net) | 4.50% |
Commentary
For the Quarter ended September 30, 2026 the Pear Tree Essex Environmental Opportunities Fund’s
Ordinary Shares (the “Fund”)¹ returned (14.83%) at net asset value for the third quarter of 2026.
Market Conditions and Investment Strategies
Clean technology equities were off to the races this year until late July, when the market sold off given significant and sudden
interest rate pressures driven by spiking ten-year treasury yields. Higher interest rates have a greater impact on some clean tech
segments, as the higher cost of debt lowers returns for project finance – the dominant funding structure for wind, solar and battery
storage, as rising rates increase interest burdens on construction loans. We believe the market was overly aggressive in selling
down clean tech more severely than other equity sectors, creating very favorable opportunities. Clean tech is positioned as the
economy’s structural deflationary force, at the intersection of artificial intelligence (AI), energy security and discounted valuations.
We believe over the past several years, clean tech has graduated from a policy-dependent, rate-sensitive growth trade into a
structural infrastructure and productivity improvement theme. We believe for profitable, cash-generative clean tech companies,
the investment case now rests on demand that is AI-driven, geopolitically reinforced, economically deflationary, and priced at a
significant discount to historical valuation metrics.
We believe the correction which began in late July was concentrated amidst companies the market assumed were tied to data
centers and AI, and Fund volatility was also concentrated in a few higher beta holdings. While data center exposure does factor as
a growth catalyst for some holdings, it is not the primary factor – the general demand for power and increased electrification of the
overall economy is the prevalent driver. That said, we de-risked the Fund by cutting some weight in the Power Technology theme
and beta by trimming American Superconductor, ON Semiconductor, Aeva Technologies, Ambiq Micro, and Infineon Technologies.
We are confident in our investment rationale for these companies and will continue to reevaluate Fund weights as market
conditions warrant. Holding share positions where weights were reduced is an active decision, and one which we believe illustrates
our portfolio risk management enhancements of the past several years. Each of these positions were contributors to return over
past quarters, and our confidence for the Power Technology theme is well intact.
The Clean Water theme has generally been a performance detractor for the past several quarters, but performance for water
companies exposed to the industrial segment has begun to improve. We have owned Veralto since early 2025 and added to
the position as margins and revenue improved driven by industrial water treatment. Solar Edge was added last June, and we
increased the weight during the quarter given strong sales improvement, particularly in Germany. The EU is a net energy importer
and is under extreme duress from the limited fossil fuel imports given Hormuz and is taking strong action to strive for energy
independence via renewables and energy efficiency. We increased the Fund’s weight in Solv Energy, the solar and storage developer,
given the compelling valuation amidst strong fundamentals regarding domestic power demand.
Attribution
During the third quarter, performance was led by the Fund’s Clean Tech & Efficiency theme, with Kingspan Group the top performer
as the energy efficient building materials firm communicated very strong data center demand. Samsara exhibited strong revenue
growth and profitability for its fleet management services. Toray Industries, the Japanese water treatment materials company
demonstrated solid performance in its membrane segment for water desalination plants. Trimble is a leader in location-based
solutions, such as optical and GPS and raised revenue guidance for the year after a solid earnings report. Rounding out the top
performers, global sustainability asset manager Impax Asset Management reported improving asset inflows and performance.
Infineon Technologies was the top detractor to Fund performance as power semiconductor stocks underperformed for the quarter.
Aeva Technologies provides LiDAR applications for autonomous driving and industrial automation and lagged as high growth
companies underperformed the broader market. Nextpower provides utility scale solar power enhancement and battery storage and
is extending power management offerings for utilities and data centers. The stock was caught in the underperforming renewables
arena over the quarter despite what we believe to be strong positioning for electrifying our economy. Carrier Global, the global HVAC
and energy solutions provider underperformed for the third quarter despite good revenue growth as margins were pressured by their
data center ramp. American Superconductor rounds out the top detractors to Fund performance, despite record orders for their
electrical grid business.
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, 2027 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.