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 35 years of investment experience to the Fund.

Fund Overview

YTD RETURN*
-13.41%

NAV*
$20.72

INCEPTION
December 18, 1998

MINIMUM INVESTMENT
$1,000,000

CUSIP
70472Q807

BENCHMARK
MSCI EAFE

NET EXPENSE RATIO(1)
1.03%

GROSS EXPENSE RATIO(2)
1.25%

 

*as of 5/13/2022

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.
Sumanta Biswas, CFA
Bin Xiao, CFA
Jason Crawshaw

Performance

YTD
As Of 5/13/2022
Quarterly
As Of 3/31/2022
1 Year
As Of 3/31/2022
3 Years
As Of 3/31/2022
5 Years
As Of 3/31/2022
10 Years
As Of 3/31/2022
Since Inception As Of
3/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-13.41% -5.60% -5.51% 4.68% 4.96% 6.66% 7.26% 1.25% 1.03%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
8.75% 3.10% 18.30% -12.93% 25.69% 4.78% -0.37% -5.00% 27.92% 27.24% -15.35%

Portfolio

as of March 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 22.20%
Methanex Corporation 2.50%
Popular, Inc. 2.50%
Lundin Mining Corporation 2.30%
SpareBank 1 SR-Bank ASA 2.20%
Publicis Groupe 2.20%
Toronto-Dominion Bank 2.20%
Marubeni Corporation 2.20%
DNB Bank ASA  2.10%
Jazz Pharmaceuticals plc (a) 2.00%
Infosys Limited - SP (b) 2.00%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Financials 21.1
Consumer Discretionary 19.4
Materials 18.7
Industrials 10.6
Communication Services 9.1
Information Technology 8.1
Health Care 4.6
Consumer Staples 2.2
Real Estate 1.5
Cash and Other Assets (Net) 4.7

Top Ten Country Allocations

Percentage Of Total Net Assets 80.00%
United Kingdom 13.50%
Japan 13.20%
South Korea 11.40%
Germany 10.00%
Canada 8.80%
Norway 6.70%
France 6.60%
Sweden 4.40%
Ireland 2.90%
Puerto Rico 2.50%

Portfolio Characteristics

Net Assets $4,324,666,551
Number Of Holdings 66
Percentage in Top 10 Holdings 22.20%
Weighted Average Market Cap (Mil) $36,823.76
Annual Turnover 23.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 95.30%
Cash and Other Assets (Net) 4.70%

FOR THE QUARTER ENDED MARCH 31, 2022

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 (5.66%) at net asset value compared to (5.79%) for the Index.

Market Conditions and Investment Strategies

The Fund’s outperformance was broad-based, beating the benchmark in six of nine sectors, including most cyclicals like
Financials, Communication Services, Industrials and Information Technology. The Consumer Discretionary sector was the largest
detractor, where the portfolio was overweight and underperformed. Geographically, the Fund’s holdings in the United Kingdom
declined most, impacted by homebuilders and consumer retailers. The Fund had notable gains in Ireland, Switzerland, Singapore
and Japan, as well as out-of-benchmark holdings in Canada, Colombia, Chile and Greece.

At the individual stock level, four of the top 10 contributors during the quarter were commodity related including Methanex Corp.,
Lundin Mining, Antofagasta and Marubeni Corp. Over the last few quarters, commodities have been strong due to demand and
supply imbalances. Now with ‘higher inflation for longer’ rhetoric, commodities have another leg up as they typically serve as a
hedge against inflation. While inflation and ensuing, higher prices boosted commodity stocks, the same prices squeezed margins
at chemical/packaging companies processing those raw materials. As a result, BASF SE, Solvay SA and a few other stocks
suffered double-digit declines as these companies have yet to raise downstream prices enough to offset higher raw material
prices.  Bancolombia SA was the single best performer in the Financial sector, up more than 35% for the quarter after announcing
robust earnings and increased digital banking users. Colombian billionaire Jamie Gilinski’s tender offers to gain control of the
group also positively impacted the company. Jazz Pharmaceuticals singlehandedly boosted the Health Care sector, as the stock
was up more than 20% for the quarter. The Irish biopharmaceutical company recouped prior quarter losses after posting strong
earnings. In Communications Services, KDDI posted solid results, pointing to the strategic six-month turnaround in its mobile
telecommunications group, which was boosted by sales and promotions.

Holdings in the Consumer Discretionary sector detracted. Despite reporting positive operations and outlook, homebuilders
Bellway PLC and Taylor Wimpey PLC have been hit hard on cost burdens and uncertainties around cladding and remediating fire
safety defects in U.K. buildings. The Fund’s sole holding in Russia, diamond miner Alrosa PJSC, was marked down to effectively
zero as the Moscow Stock Exchange restricted non-Russian investors from selling and sanctions prohibited exchanging rubles for
dollars.

Portfolio Changes

Sumitomo Mitsui Trust Holding and Andritz AG were sold to make room for new investments with better upside potential.
Following the reporting period, several new stocks were added to the portfolio, which may provide downside protection in the
event of more economic volatility due to the Russia-Ukraine conflict and potential for higher interest rates.

Outlook

We are actively seeking attractively-priced stocks with good upside potential and lesser downside risk. We are considering the
risks of a big slowdown in Europe, continuing to diversify the portfolio geographically, while doing the same at the sector level.
We believe that our fundamental bottom-up research, based on conservative investment assumptions and risk awareness, will
continue to produce a well-rounded Fund that has the potential to perform admirably no matter what economic turmoil we
encounter.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.3351 $0.0000 $0.0000
2020 $0.4374 $0.0000 $0.0000
2019 $0.3371 $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.

Polaris Capital began subadvising the Pear Tree Small Cap Fund on January 1, 2015.

Axiom International Investors began subadvising the Pear Tree Axiom Emerging Markets World Equity Fund December 8, 2018.

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.

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, 2022 for all funds and share classes except Pear Tree Essex Environmental Opportunities Fund. Fee waivers and/or expense reimbursement for Pear Tree Essex Environmental Opportunities Fund and its share classes are in effect through August 31, 2022.

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 Axiom Emerging Markets World Equity
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.