Pear Tree Polaris Foreign Value Fund
The PEAR TREE POLARIS FOREIGN VALUE FUND provides investors with the opportunity to participate in the growth potential of companies predominantly located in developed foreign countries.
Investment Process
The Fund will generally own stocks of 50 to 125 non-U.S. companies located in the countries comprising the Morgan Stanley Europe, Australasia and Far East (EAFE) Index. In addition, the Fund may also invest a portion of its assets in emerging markets. The diversification within the Fund, coupled with the fact that the operation of the Fund’s investment model will generally lead the Fund to be invested in 15 or more countries, reduces the likelihood that performance of a single country will significantly impact the Fund’s return.
Buy and Sell Discipline
The investment process for the Fund combines both quantitative and fundamental techniques. The Fund’s approach is primarily “bottom up,” searching for individual stocks with strong, undervalued cash flows, regardless of location or industry. The Fund uses proprietary models to rank countries and industries on the basis of value and to narrow a universe of 40,000 companies down to 300 to 500 for further considerations. The Fund supplements the screening process by performing in-depth financial and fundamental analysis.
Portfolio Management
The Fund is managed by Polaris Capital Management, LLC, a Boston, Massachusetts money manager that specializes in the management of global, international, and domestic equity portfolios. Polaris brings over 40 years of investment experience to the Fund.
Fund Overview
YTD RETURN*
20.47%
NAV*
$34.08
INCEPTION
December 18, 1998
MINIMUM INVESTMENT
$1,000,000
CUSIP
70472Q807
BENCHMARK
MSCI EAFE
NET EXPENSE RATIO(1)
1.08%
GROSS EXPENSE RATIO(2)
1.30%
*as of 8/10/2026
Investment Professionals
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Sub-Advisor
Polaris Capital Management, LLC
Polaris is a leading global value equity manager, serving the investment needs of institutions and individuals since 1995. At Polaris Capital Management, we have a disciplined approach to investing in undervalued companies around the world, regardless of country, industry or market capitalization.
Portfolio Managers
Bernard R. Horn, Jr.
Bin Xiao, CFA
Jason Crawshaw
Performance
| YTD As Of 8/10/2026 |
Quarterly As Of 6/30/2026 |
1 Year As Of 6/30/2026 |
3 Years As Of 6/30/2026 |
5 Years As Of 6/30/2026 |
10 Years As Of 6/30/2026 |
Since Inception As Of 6/30/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 20.47% | 12.10% | 32.29% | 19.59% | 9.12% | 9.93% | 8.08% | 1.30% | 1.08% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 34.33% | -0.35% | 20.34% | -16.81% | 8.75% | 3.10% | 18.30% | -12.93% | 25.69% | 4.78% | -0.37% |
Portfolio
as of June 30, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 29.60% |
|---|---|
| SK Hynix, Inc. | 5.70% |
| Samsung Electronics Company Limited | 5.30% |
| ORIX Corporation | 2.60% |
| Jazz Pharmaceuticals plc | 2.40% |
| Smurfit Westrock plc | 2.40% |
| Endesa, S.A. | 2.30% |
| Mitsubishi UFJ Financial Group, Inc. | 2.30% |
| UniCredit S.p.A. | 2.20% |
| Popular, Inc. | 2.20% |
| International Consolidated Airlines Group S.A. | 2.20% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 26.00% |
| Industrials | 20.20% |
| Information Technology | 13.20% |
| Consumer Discretionary | 10.50% |
| Materials | 6.10% |
| Communication Services | 5.30% |
| Health Care | 5.10% |
| Consumer Staples | 4.90% |
| Energy | 3.50% |
| Utilities | 2.30% |
| Cash and Other Assets (Net) | 2.90% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 79.30% |
|---|---|
| Japan | 15.20% |
| South Korea | 15.00% |
| France | 10.20% |
| Germany | 8.10% |
| Ireland | 7.60% |
| United Kingdom | 7.40% |
| Norway | 5.00% |
| Italy | 4.50% |
| Spain | 3.60% |
| China | 2.70% |
Portfolio Characteristics
| Net Assets | $1,494,065,608 |
|---|---|
| Number Of Holdings | 59 |
| Percentage in Top 10 Holdings | 29.60% |
| Weighted Average Market Cap (Mil) | $190,661.12 |
| Annual Turnover | 29.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 97.10% |
| Cash and Other Assets (Net) | 2.90% |
Commentary
For the Quarter ended June 30, 2026
The Pear Tree Polaris Foreign Value Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the MSCI EAFE Index (the “Index”). The Fund had a return of 12.00% at net asset value compared to 11.08% for the Index.
Market Conditions and Investment Strategies
International equities delivered a very strong second quarter, fueled by an earnings-led, AI-powered rally that lifted the MSCI EAFE Index
to double digit gains. Performance broadened by quarter-end, with leadership extending beyond initial AI beneficiaries and European
markets outperforming in local currency terms.
In Information Technology, SK hynix and Samsung Electronics were standout performers, riding demand for commodity and high
bandwidth memory (HBM) chips. SK hynix sold out its 2026 HBM capacity and joined the $1 trillion market cap club; in June its shares
surged after announcing plans to issue 17.79 million new Nasdaq ADRs, raising about $28–29 billion for expansion. Samsung hit record
highs on 12 layer HBM4E sample distribution. Among Industrials, airlines (LATAM, International Airlines Group, Ryanair) gained on strong demand and fuel hedging, helped by lower oil prices following the U.S.–Iran interim deal. DHL Group surprised positively with resilient express air freight performance and cost savings. In Financials, company specific catalysts drove performance. Orix Corp. continued to deliver under its new CEO, selling Orix Bank to Daiwa Securities for approximately $2.3 billion, funding a buyback and raising guidance. Popular Inc. rose on higher earnings expectations and a more supportive local rate outlook, confident that an eventual easing in U.S./Puerto Rico rates would lower funding costs.
In Consumer Discretionary, Michelin, F&F Co. and Next PLC posted double digit gains, the latter of which rallied on a first quarter
trading beat and a profit upgrade. Kia Corp. fell on South Korean market volatility and profit taking, overshadowing record global sales,
while Alibaba Group Holding faced multiple headwinds. In Consumer Staples, Barry Callebaut saw relief as cocoa prices cooled, but
volumes remained weak. Irish convenience foods producer Greencore Group completed its acquisition of Bakkavor, reporting a loss due
to integration costs. Koninklijke Ahold Delhaize declined on the CEO’s retirement and margin pressure in U.S. supermarkets. Despite a
more supportive oil backdrop this quarter, Energy stocks ENI SpA and TotalEnergies finished the quarter lower.
Portfolio Changes
We exited SKF AB after the Swedish ball bearing manufacturer reached multi year highs following news on its pending industrial/
automotive spin off. Daicel Corp. was sold after failing to deliver on growth capex. HD Hyundai Electric was sold at a rich valuation,
rotating into Astor Transformator Enerji, a Turkey based transformer producer with a large backlog. Among other new purchases were
1) Fujifilm Holdings Corp., a Japanese conglomerate with strong, underappreciated contract drug manufacturing and semiconductor
materials businesses and 2) UniCredit SpA, a leading Italian financial franchise with pan European prospects.
Outlook
This mix of macro risk, rate policy, and concentrated market leadership argues for a constructive but selective outlook, with periods of
heightened volatility likely if the U.S.-Iran truce frays or inflation stays sticky. The case for value and international equities is increasingly
compelling, as we see more situations where prices diverge meaningfully from underlying fundamentals. We believe we are still in the
early innings of what could be a multi year opportunity to own under appreciated, cash generative businesses that are well positioned
through a tougher macro backdrop.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $1.2680 | $0.0000 | $0.4391 |
| 2024 | $0.5503 | $0.0000 | $0.0000 |
| 2023 | $0.5217 | $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.