Pear Tree PanAgora Dynamic Emerging Markets Fund (QFFOX / QEMAX)

Portfolio Management
The Fund is subadvised by PanAgora Asset Management, Inc., a Boston-based firm that manages assets for pension plans, endowments, foundations, unions and financial service providers around the globe.  The firm also manages partnerships in Europe and Asia. PanAgora was founded in 1989.

Investment Philosophy
PanAgora’s Dynamic Equity strategies employ a proprietary Contextual Alpha Modeling process that is based on fundamental investment principles. The premise of Contextual Alpha Modeling is that no two stocks are alike and their behavior changes through time requiring a dynamic and distinct analytical model. The Dynamic Equity approach combines firm-specific, sector-specific and region-specific information in a quantitative framework to derive custom-tailored alpha models for a broad universe of global securities.

Portfolio Construction
The portfolio is constructed to maximize expected excess return (Alpha) for a given level of risk. The fund invests in approximately 100-250 securities while having no bias toward or against any country or sector in the indices. To manage exposure to the performance volatility experienced by the individual emerging markets, the Fund invests, at most times, in eight or more countries.  At least two, and generally three, broad geographic regions, such as Latin America, Asia and Europe, will be represented in the Fund’s portfolio.

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.