Pear Tree Essex Environmental Opportunities Fund

For the Quarter ended March 31, 2023

The Pear Tree Essex Environmental Opportunities Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI World Index (the “Index”). The Fund achieved a return of 4.90% at net asset value compared to 7.00% for the Index.¹

Market Conditions and Investment Strategies

There was a lot going on in the second quarter of 2023 across our capital markets. Early in the quarter, the markets were
absorbing continued banking stresses amidst the din from the media and strategists alike regarding their anticipation of a global
recession. Such headlines catalyzed a risk-off environment that continued to drive extreme valuations and returns for the largest
of the large cap technology stocks – especially if AI was referenced. As the quarter progressed, there was some mild broadening
of the market yet the flight to large growth equities versus smaller company shares is at decade high extremes currently. We
believe smaller companies are ignored currently because of the continued “indexation” of US stock investing coupled with an
aversion to what is deemed risky, which might stem from the credit or capital markets needs of faster growing businesses.
While these are valid concerns (and addressed in recent reviews), the valuations relative to growth rates for the equity shares
of our holdings are very attractive currently, based on our 14-year track record for the Essex Global Environmental Opportunities
Strategy (GEOS, Strategy) composite as of June 30, 2023. On an asset allocation basis, we see significant opportunity for our
undervalued and inefficient segment of the market. Polluted air from Canadian wildfires? The need for back-up power generation
in Houston? Drought in the UK affecting hydro power and crop yields? Reshoring manufacturing in the US? PFAS pollution in our
drinking water? Battery fires in electric vehicles (EVs)? Extreme heat in Europe and the Southwest US stressing power grids? We
could go on. The companies represented by the portfolio holdings in the Fund solve each of these dire economic, environmental,
and social problems, among many others. And AI? Machine learning and artificial intelligence are applications driving future
growth opportunities for many of our holdings, from factory automation to fleet tracking and sensors for electric vehicles. AI is a
technology exhibited across several GEOS themes that can continue to further our definition of clean technology, doing more with
less.

For second quarter 2023 transactions, we added a new position in the Fund’s clean tech & efficiency theme, Symbotic (SYM).
Symbotic is an automation company that provides efficiency technologies to distribution centers that reduces costs, waste,
breakage and worker injuries. Symbotic’s machine learning-based robotics technology provides warehouses with advanced
automation platforms to address the increased need for labor, efficiency, speed and flexibility. Currently, supply chains are hindered
by limited labor availability, increasing operating costs, out of stocks, SKU proliferation and mismanagement of inventories versus
demand. Symbotic solutions can handle wide ranges of form factors and weights, allowing more products to be managed. As
is often the case during selloffs with improving fundamentals, we increased our position in Enovix on stock price weakness. We
believe Enovix will revolutionize the battery, using patented technology that improves the performance and safety of batteries, from
stationary storage to electric vehicles. Enovix technology employs silicon anodes and a structure that ensures high performance
and safety, delivering a step-change increase in battery capacity. Enovix batteries have thermal advantages that enable faster
battery charging and longer life. Additionally, these batteries can take an 80% charge in 5 minutes, with a 10 times improvement
in lower battery temperature. This technology is patented and achieved by fully replacing graphite with higher performing silicon, delivered in an industry breakthrough package – so called 3D architecture. The result is a battery that has greater life, charges faster and operates at lower temperatures, increasing safety. Enovix is well passed the testing phase with many customers, and is being designed into products currently, from consumer devices to EVs.

In May, we initiated a new position in the Fund’s power technology theme, Primoris Services (PRIM), a provider of specialty
contracting and critical infrastructure services in North America. Primoris operates in two market segments, utilities and energy,
providing construction and maintenance of electrical transmission and distribution assets as well as maintenance services for
natural gas pipelines. Primoris will benefit we believe from the increased investment in our electrical grid so it is more reliable
and efficient. The source of funds for this new position was the sale of Lindsay (LNN), the irrigation technology company due to
ongoing concerns about forward growth amidst compressing margins. We also purchased the shares of a power management
semiconductor company, Navitas Semiconductor (NVTS), which will reside in the power technology theme. Navitas designs wide
bandgap gallium nitride and silicon carbide power devices that can deliver greater efficiencies and reduce cooling requirements
for applications such as industrial motors, EVs, smart grid applications, data centers and solar inverters. We trimmed Infineon
Technologies (IFX GY) to fund the purchase of NVTS – Infineon operates in a related market and has been a strong stock the past
several months, with greater automotive exposure which we view as a potential risk currently. Late in the quarter, we reduced our
position size in long-standing water technology company Energy Recovery (ERII) following very strong recent stock performance.

Attribution (Second Quarter 2023)

Top contributors:

Symbotic (SYM: (+53.5%) is a new GEOS position for the clean tech & efficiency theme. Symbotic is a technology company
offering a revolutionary new warehouse automation platform to address the increased need for labor, efficiency, speed and
flexibility. Today, supply chains are hindered by limited labor availability, increased operating costs, out-of-stocks, SKU proliferation
and mismanagement of inventory versus demand, all of which can be rectified with Symbotic AI-powered robotics with machine
learning capabilities.

Kornit Digital (KRNT: (+51.7%) rests in the GEOS clean tech & efficiency theme, providing digital screen-printing systems for
garment production which require no water and emit no harmful chemicals. We added to our Kornit position during the first quarter
on price weakness and improving fundamentals.

Navitas Semiconductor (NVTS): (+38.4%) was purchased in May and resides in the power technology theme. Navitas designs wide
bandgap gallium nitride and silicon carbide power devices that can deliver greater efficiencies and reduce cooling requirements for
applications such as industrial motors, EVs, smart grid applications, data centers and solar inverters.

Generac Holdings (GNRC): (+38.1%) is also in the GEOS power technology theme, providing backup power generation to the
residential and commercial segments. Generac has acquired several clean tech companies in the past few years, from smart meter
management to solar power inverter technology and storage. Generac is favorably positioned we believe as they roll these new
offerings out to their extensive dealer network.

Hubbell (HUBB): (+36.8%) is in the GEOS power technology theme, providing electrical, lighting, power components and industrial
control systems to electric utilities, data centers and the renewable energy sector. Last year, 63% of sales were generated by
products with impact – defined as products associated with grid modernization and hardening, resource efficiency, renewable
energy, and electrification.

Underperformers:

Lindsay (LNN): (-21.4%) rests in the GEOS agricultural productivity theme, providing irrigation solutions for farming and other
industrial applications. While the long-term fundamentals for advanced irrigation are well intact, there is some concern that the
farm equipment cycle may be peaking in North America. Lindsay was sold during the quarter.

TPI Composites (TPIC): (-20.5%) is in the GEOS renewable energy theme, building wind turbine blades for the global wind market.
TPI is expanding their business to constructing offshore wind blades, where we anticipate greater growth and profitability in this
expanding market.

Enphase Energy (ENPH): (-20.4%) is in the GEOS power technology theme, designing and manufacturing microinverters and
related power technologies for the solar and power storage markets. Enphase is amidst a new product launch and is gaining
growth momentum in Europe.

MP Materials (MP): (-18.8%) is the only US producer of scale for rare earth materials, critical to produce magnets which are
needed for electric motors, wind turbines and many other clean technologies. MP has an efficient production process which uses
recycling technology to reduce water use by 95%.

Bloom Energy (BE): (-18.0%) is in the GEOS power technology theme, making fuel cells and solid oxide electrolyzers for hydrogen
production. Solid oxide electrolyzers are more efficient than other electrolyzer technologies given greater efficiencies and the lack
of precious materials in manufacturing.

Social Impact Management Update

While many investors have interest in companies setting net-zero targets and reducing operational emissions, GEOS invests in
companies enabling a net-zero society. We identify and invest in companies offering differentiated products and services that help
accelerate the transition to a net-zero economy. Many of the “net-zero enablers” we invest in also have decarbonization or net-zero
commitments for their own operations, as 14 current GEOS holdings have a net-zero or carbon neutral commitment that covers
scope 1 and 2 emissions, as well as scope 3 emissions in select cases. Although we do not invest in companies simply for having a
net-zero commitment, we view positively the steps that companies take to address their value chain emissions footprint.

Not only do decarbonization commitments strengthen brand value and minimize company risk from carbon pricing schemes and
other regulatory action, but in high carbon industries like metals and mining, steel, or cement, companies are expected to have a
decarbonization strategy. Due to the high emissions footprint of these industries, companies without decarbonization commitments
are at a competitive disadvantage, while climate leaders have an advantage, since their customers demand green or low carbon
products. For example, auto companies are trying to decarbonize the lifecycle emissions of electric vehicles, including upstream
emissions from purchased goods and services. Lithium, a key input into batteries, can be emissions intensive during production
and OEMs are pushing suppliers to decarbonize the production process. Livent, a leading producer of lithium, has committed to
becoming carbon neutral across scope 1, 2, and 3 emissions by 2040, including using 30% renewable energy by 2030. Livent’s
decarbonization strategy will enable them to produce low-carbon lithium to secure customer business and help auto OEMs meet
net-zero targets.

Albemarle, another leading producer of lithium for electric vehicles (EVs) and energy storage systems, recently released their 2022
Sustainability Report. Based on Albemarle’s historic sales of lithium into EV applications, approximately 31 million metric tons of
CO2e are avoided annually by EVs displacing ICE vehicles. Additionally, Albemarle is acting responsibly in their operations as they
aim to grow their energy storage business in a carbon neutral manner through 2030 based on scope 1 and 2 emissions. Albemarle
is also taking steps to identify and manage physical climate risks that may materially impact their operations. The company
identified water availability in Chile and Jordan, thunderstorms in the U.S., and heat extremes in China as material risks and they
plan to conduct scenario analyses in 2023 to estimate the financial impact under different scenarios.

Outlook

Our highest conviction GEOS theme currently is power technology, which extends from electricity delivery to technologies that
store electricity where it is needed, at the “edge of the network.” Distribution – which means to spread evenly translates to power
deployment where it is needed. This trend can be compared to the computing transformation of the last 30 years, where data
management was transformed from mainframe computer to laptop. We believe the electric grid transformation will be bigger
than the computing transformation regarding the data and capital requirements. Our electricity grid is currently experiencing the
greatest transformation since the Rural Electrification Act of 1936, which enabled coal-fired electricity delivery to rural customers –
a more linear technology. Coal plants were constructed to deliver power, so lights could be turned on across the US using the most
greenhouse gas intensive source of energy.
Our electric grid is now changing in all facets. Grid reliability is needed, as well as safety given increasingly severe weather, whether
storms or extreme heat. Residential and commercial customers are investing in technologies to limit risks, from financial to
environmental. Electricity customers want reliable power and limitations from price inflation, whether natural gas prices in the EU,
or electricity pricing in the US which is increasing an average of 10% per year. While wind and solar energy are now cheaper than
legacy fossil fuels, their attributes require a smarter grid, to manage the intermittency of solar, and the variability of wind power.
While utilities have been slow in most regions to recognize the disruption occurring on their networks, this is rapidly changing now.
The grid edge installation of technologies that can generate, store and use electrons when needed are rapidly increasing, requiring utilities to observe and manage these now “digitized electrons”. Data management is now required for this smart grid. Lights can now be turned on with electricity delivered from the grid, or locally from the point source of demand, using an EV, battery, or solar array. The move to electrify everything, from home stoves to EV charging and heat pumps will drive this trend much further. As we home shore more industrial manufacturing, commercial facilities will continue to adopt more grid-edge solutions, from fuel cell
power to solar arrays coupled with storage and inverter technologies. In several regions now, new data centers are not allowed to
plug into the grid, given already peak power capacities amidst the huge electricity requirements for cooling. Data centers are now
the most rapid adopters of fuel cell power.

We believe we are early in the first inning of this power technology revolution, and our current GEOS investments include:

• battery storage
• advanced battery technologies, such as improved cathodes for enhanced performance and safety
• battery materials, from lithium to safety gels
• utility labor services for construction and maintenance
• utility data services and grid development
• virtual power plants, aggregating grid edge solutions to sell power back to grid
• advanced substation solutions
• hydrogen fuel cells for powering off grid datacenters and manufacturing facilities
• improved semiconductor technologies for EVs, vehicle to grid (V2G), storage and VPPs using silicon carbide to drive cycle life and
improve performance and safety
• smart EV charging solutions
• solar inverter technologies for DC-AC power conversion
• and more…

At this writing, GEOS has passed its 14-year track record – we believe to it be the longest thematic and environmental solutions
track record with a consistent investment team and investment process. We spent many years describing thematic equity investing
to the marketplace, and now thematic investing is increasingly recognized as differentiated amidst large cap ESG approaches. We
are very proud of the GEOS track record built on a consistent investment philosophy and process managed from a firm founded on
dynamic equity investing over 47 years ago. The case for environmental solutions grows stronger by the day, as well as our GEOS
team experience.

¹The 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. 

²The priority of the Wilder-Hill Index is to define and track the Clean Energy sector: specifically, businesses that stand to benefit substantially from a societal transition toward use of cleaner energy, zero-CO2 renewables, and conservation. Stocks and sector weightings within the Wilder-Hill Index are based on their significance for clean energy, technological influence and relevance to preventing pollution in the first place. The Wilder-Hill Index emphasizes new solutions that make both ecological and economic sense and aim to stay the leaders in this field.

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.