Pear Tree Axiom Emerging Markets World Equity Fund

(QFFOX / QEMAX / QFFRX)

Portfolio Management

The Pear Tree Axiom Emerging Markets World Equity Fund is subadvised by Axiom Investors. The Fund is modeled after Axiom’s Emerging Markets World Equity Strategy which is managed by Lead Portfolio Manager and Axiom’s Chief Investment Officer, Andrew Jacobson, CFA, and Co-Portfolio Managers, Christopher Lively, CFA, Donald Elefson, CFA, Bradley Amoils, and José Gerardo Morales, CFA. The investment team collaborates in one location in Greenwich, CT which allows for extensive communication enabling the consistent application of the investment process across strategies, geographies, sectors, and market caps.

Investment Philosophy

The fund utilizes Axiom's fundamental, bottom-up, dynamic growth investment philosophy and process, developed by its founder and Lead Portfolio Manager on the Strategy, Andrew Jacobson over 20 years ago. The philosophy focuses on positive change and sustainability of growth in the context of valuation and invests in companies that are dynamically growing and changing for the better more rapidly than generally expected and where the positive changes are not yet reflected in expectations or valuation. The implementation of the philosophy is through a consistent, empirical, forward-looking four-step process that starts with idea generation and continues through company analysis, portfolio construction, and finally, the ongoing monitoring and adjustments of existing holdings.

Portfolio Construction

Axiom utilizes a risk/return rating system to fundamentally construct portfolios with the largest weights being allocated to companies we expect to have the highest return and the lowest risk.  The Fund invests in traditional emerging market companies, smaller capitalization emerging market stocks, emerging market stocks with more near-term catalysts, frontier stocks and emerging market revenue stocks. The risk/return ratings compile both fundamental and statistical data to weight an investment against existing and future portfolio holdings. Axiom’s process ensures the dynamic growth factors of a company are constantly monitored and active positions are conviction-weighted based on the mid-term growth potential and risk profile of the opportunity.

 

Disclosure
- 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.