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



December 18, 1998







*as of 12/8/2023

Investment Professionals

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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


As Of 12/8/2023
As Of 9/30/2023
1 Year
As Of 9/30/2023
3 Years
As Of 9/30/2023
5 Years
As Of 9/30/2023
10 Years
As Of 9/30/2023
Since Inception As Of
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
13.66% -2.18% 26.75% 7.44% 0.53% 3.61% 6.58% 1.27% 1.05%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-16.81% 8.75% 3.10% 18.30% -12.93% 25.69% 4.78% -0.37% -5.00% 27.92% 27.24%


as of September 30, 2023

Top Ten Holdings

Percentage Of Total Net Assets 23.80%
Publicis Groupe 2.50%
Honda Motor Company, Ltd. 2.50%
Muenchener Rueckversicherungs-Gesellschaft 2.40%
Hannover Rueck SE 2.40%
Next plc 2.40%
SK Hynix, Inc. 2.40%
Novartis AG 2.30%
TotalEnergies SE 2.30%
Methanex Corporation 2.30%
Vinci SA 2.30%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 23
Financials 18.2
Industrials 15.4
Materials 15
Communication Services 9
Information Technology 6.6
Health Care 4.1
Consumer Staples 3
Energy 2.3
Real Estate 2.1
Cash and Other Assets (Net) 1.3

Top Ten Country Allocations

Percentage Of Total Net Assets 87.50%
Japan 13.60%
United Kingdom 12.90%
France 12.30%
Canada 12.10%
South Korea 11.30%
Germany 8.90%
Norway 6.30%
Ireland 4.30%
Sweden 3.50%
Switzerland 2.30%

Portfolio Characteristics

Net Assets $2,956,996,715
Number Of Holdings 61
Percentage in Top 10 Holdings 23.80%
Weighted Average Market Cap (Mil) $43,141.91
Annual Turnover 15.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 98.70%
Cash and Other Assets (Net) 1.30%

For the Quarter ended September 30, 2023

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 (2.27%) at net asset value compared to (4.05%) for the Index.

Market Conditions and Investment Strategies

Outperformance was driven by absolute gains in the Financials, Energy, Materials, Health Care and Real Estate sectors. Inflationsensitive consumer sectors, Communication Services and Information Technology (IT) lagged, as did Industrials. The U.K. market was the strongest performer regionally, thanks to consumer confidence on peaking interest rates. Other notable contributors included oil exporter, Norway, as well as Ireland, Singapore, Greece, Switzerland, and Puerto Rico. Off-benchmark holdings in Canada and South Korea detracted most.

Financials provided ballast in a down market. German reinsurers benefitted from a “hard” market. The high price discipline,
coupled with rising reinvestment yields, supported earnings for both Munich Re and Hannover Re. DNB Bank reported better-than expectedquarterly earnings, helped by a robust oil-based Norwegian economy and higher interest rates. The recent decision by OPEC members to cut production only added to the oil supply/demand imbalance; higher oil prices were the result, benefitting TotalEnergies SE. Higher oil prices act as a key indicator for methanol blending demand, boosting Canada’s Methanex Corp.

Continued inflation, and the ensuing interest rates hikes, are having a detrimental effect on the mainstream consumer.
Discretionary spending has abated in favor of consumer staples; even in this vertical, consumers trended to lower-cost foods and
proteins. Canadian Tire and LG Electronics both declined during the quarter. Bucking the “consumer weakness” trend was Honda
Motors, which reported higher production following sluggish volume delivery the previous year. A number of U.K. companies
including homebuilders and clothing retailers like Next PLC also saw a rebound as U.K. inflation seems to have peaked and is now
trending down.

Concerns over sluggish semiconductor capital spending dragged down the IT sector. SK Hynix advanced in the first half of the year
due to its dominance in high bandwidth memory, a critical component in AI servers. However, the stock declined this quarter as
news surfaced that its DRAM and NAND chips were found in the new Huawei Mate 60 Pro phone. SK Hynix had no direct sales to
Huawei, which is on the U.S. export control list. It is widely speculated that Hynix chips were sourced through a third-party agency.
Both Ipsos and Teleperformance dropped in line with its advertising/marketing brethren, as client spending lessened.

Portfolio Changes

During the quarter, Jumbo SA, a Greek specialty retailer with a footprint in airports, was sold on valuation. Jumbo benefitted
from the continued increase in travel; stock exit was based on the strength of the recovery. New buys included Japanese trading
company, Itochu Corp., and Daimler Truck AG, the global manufacturer for medium- and heavy-duty trucks and buses.


Central banks’ firm monetary stance will likely result in a “higher-for-longer” interest rate environment; investors need to come to
terms with a normal period of positive real interest rates. It will take an adjustment after 10+ years of virtually zero or negative
real interest rates, which led to considerable market excesses and over-inflated asset values…none of which were healthy for longterm
capital market stability. We anticipate that higher real rates for longer will slowly favor the traditional value stocks we hold.


Dividend Short-Term Capital Gain Long-Term Capital Gain
2022 $0.3763 $0.0000 $0.0000
2021 $0.3351 $0.0000 $0.0000
2020 $0.4374 $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.

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 (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, 2024.

2. 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.

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.