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*
8.04%
NAV*
$30.77
INCEPTION
May 15, 1998
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q708
BENCHMARK
MSCI EAFE
NET EXPENSE RATIO(1)
1.41%
GROSS EXPENSE RATIO(2)
1.51%
*as of 1/29/2026
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 1/29/2026 |
Quarterly As Of 12/31/2025 |
1 Year As Of 12/31/2025 |
3 Years As Of 12/31/2025 |
5 Years As Of 12/31/2025 |
10 Years As Of 12/31/2025 |
Since Inception As Of 12/31/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 8.04% | 7.95% | 33.85% | 16.80% | 7.44% | 7.00% | 6.50% | 1.51% | 1.41% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 33.85% | -0.69% | 19.89% | -17.10% | 8.35% | 2.65% | 17.93% | -13.27% | 25.24% | 4.54% | -0.67% |
Portfolio
as of December 31, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 25.00%% |
|---|---|
| SK Hynix, Inc. | 4.00% |
| Samsung Electronics Company Limited | 3.20% |
| Marubeni Corporation | 2.50% |
| Ping An Insurance Group H Share | 2.30% |
| Shinhan Financial Group Co., Limited | 2.30% |
| Publicis Groupe | 2.20% |
| Barry Callebaut AG | 2.20% |
| ORIX Corporation | 2.20% |
| Mitsubishi UFJ Financial Group, Inc. | 2.10% |
| HD Hyundai Electric | 2.10% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 24.20% |
| Industrials | 20.90% |
| Consumer Discretionary | 12.50% |
| Information Technology | 9.40% |
| Materials | 8.10% |
| Communication Services | 6.50% |
| Consumer Staples | 6.50% |
| Health Care | 4.70% |
| Energy | 3.00% |
| Utilities | 1.90% |
| Cash and Other Assets (Net) | 2.30% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 80.20% |
|---|---|
| Japan | 14.80% |
| South Korea | 13.90% |
| France | 13.10% |
| Germany | 9.20% |
| United Kingdom | 7.80% |
| Norway | 5.30% |
| Ireland | 4.70% |
| Sweden | 4.30% |
| China | 3.90% |
| Canada | 3.20% |
Portfolio Characteristics
| Net Assets | $1,451,037,714 |
|---|---|
| Number Of Holdings | 60 |
| Percentage in Top 10 Holdings | 25.00%% |
| Weighted Average Market Cap (Mil) | $81,544.51 |
| Annual Turnover | 18.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 97.70% |
| Cash and Other Assets (Net) | 2.30% |
Commentary
For the Quarter ended December 31, 2025
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 7.95% at net asset value compared to 4.91% for the Index.
Market Conditions and Investment Strategies
International equity markets posted steady gains in the fourth quarter of 2025, capping a year marked by substantial outperformance
over the broad U.S. averages. The Fund outperformed the benchmark after posting double-digit gains in Switzerland, Canada, Spain,
Italy, Hong Kong and select emerging markets. Holdings in Belgium, Puerto Rico, China and Taiwan declined. At a sector level, the
Fund dramatically outperformed in Information Technology (IT), followed by Industrials, Communication Services and Consumer Staples.
Consumer Discretionary was the sole sector in absolute negative territory.
SK Hynix and Samsung Electronics, the two largest global memory manufacturers in Korea, were the top two contributors for the
quarter, topping IT sector results. Supply-demand constraints benefit memory chip suppliers; the market expects memory price
increases in 2026. In Industrials, HD Hyundai Electric was up nearly 30% for the quarter, capitalizing on increased demand to expand/
upgrade power infrastructure. DHL Group reported quarterly results that beat profit expectations (despite a slight revenue dip), driven
by cost efficiencies and e-commerce growth. In Health Care, Ireland-based Jazz Pharmaceuticals announced record quarterly revenues
(driven by Epidiolex and Xywav), FDA approvals of two drugs, and positive Phase 3 trial results for its potential blockbuster HER2+
cancer treatment Ziihera. Lundin Mining Corp. announced record third-quarter revenues, profiting from higher realized copper prices in
an advantageous supply-demand environment. The Canadian miner struck a deal to sell Eagle Mine and Humboldt Mill to Talon Metals
in exchange for a 20% stake in the U.S. pure-play nickel company. Chocolatier Barry Callebaut successfully navigated unprecedented
cocoa price volatility while strengthening its balance sheet. The company partnered with Planet A Foods to scale cocoa-free chocolate
alternatives; these efforts were lauded by investors.
Decliners were few and far between. In Materials, Smurfit Westrock missed quarterly earnings estimates and management trimmed
full-year guidance due to challenging demand for paper packaging. Linde AG issued a cautious outlook due to weakness in European
business and fallout from U.S. tariffs. In Consumer Discretionary, Sony Group beat expectations and raised guidance for the third
quarter; yet the stock underperformed amid concerns surrounding its gaming and pictures businesses. French tire manufacturer
Michelin lowered guidance as sales in North America fell more sharply than expected due to slower demand for trucks and heavy-duty
vehicles used in agriculture.
Portfolio Changes
During the quarter, the Fund sold out of three companies as each reached target valuation limits, while Sony Financial Group Inc. (spinoff from Sony Group) was also exited. Proceeds were deployed to Alibaba Group Holding, the largest Chinese e-commerce and cloud company; Asian insurance company AIA Group Limited; and China’s Ping An Insurance.
Outlook
As we enter 2026, international equities remain compelling. Attractive valuations, increasingly shareholder-friendly corporate behavior,
and a weakening U.S. dollar make a strong case for diversification beyond U.S. assets. While we’re mindful of headwinds like increased
government intervention, fiscal pressures, and tariff constraints, we’re finding excellent opportunities in targeted developed and
emerging markets. Our quarter end and annual results demonstrated how our value discipline paid off, and we will continue in this vein
in 2026.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $1.1721 | $0.0000 | $0.4391 |
| 2024 | $0.4387 | $0.0000 | $0.0000 |
| 2023 | $0.4349 | $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 (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, 2026 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.