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*
18.13%
NAV*
$26.59
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 7/30/2025
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 7/30/2025 |
Quarterly As Of 6/30/2025 |
1 Year As Of 6/30/2025 |
3 Years As Of 6/30/2025 |
5 Years As Of 6/30/2025 |
10 Years As Of 6/30/2025 |
Since Inception As Of 6/30/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 18.13% | 12.48% | 13.77% | 13.44% | 10.65% | 4.91% | 6.14% | 1.51% | 1.41% |
Calendar Year
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.69% | 19.89% | -17.10% | 8.35% | 2.65% | 17.93% | -13.27% | 25.24% | 4.54% | -0.67% | -5.23% |
Portfolio
as of June 30, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 22.00%% |
|---|---|
| SK Hynix, Inc. | 2.60% |
| Shinhan Financial Group Co., Limited | 2.30% |
| Canadian Tire Corporation | 2.30% |
| Marubeni Corporation | 2.20% |
| Popular, Inc. | 2.10% |
| Daimler Truck Holding AG | 2.10% |
| Koninklijke Ahold Delhaize N.V. | 2.10% |
| Vinci SA | 2.10% |
| Capgemini SE | 2.10% |
| Sony Group Corporation | 2.10% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 20.70% |
| Industrials | 17.00% |
| Consumer Discretionary | 16.80% |
| Materials | 10.90% |
| Health Care | 7.10% |
| Information Technology | 7.00% |
| Consumer Staples | 6.70% |
| Communication Services | 6.40% |
| Energy | 3.70% |
| Utilities | 1.90% |
| Cash and Other Assets (Net) | 1.80% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 79.40% |
|---|---|
| Japan | 15.00% |
| France | 13.50% |
| South Korea | 9.30% |
| United Kingdom | 9.10% |
| Germany | 7.50% |
| Canada | 6.90% |
| Norway | 6.00% |
| Ireland | 4.50% |
| Sweden | 3.90% |
| Switzerland | 3.70% |
Portfolio Characteristics
| Net Assets | $1,798,867,737 |
|---|---|
| Number Of Holdings | 62 |
| Percentage in Top 10 Holdings | 22.00%% |
| Weighted Average Market Cap (Mil) | $52,748.22 |
| Annual Turnover | 18.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 98.20% |
| Cash and Other Assets (Net) | 1.80% |
Commentary
For the Quarter ended June 30, 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 12.48% at net asset value compared to 12.07% for the Index.
Market Conditions and Investment Strategies
Outperformance in Industrials, Financials, Consumer Discretionary, Information Technology (“IT”) and Materials was tempered by modest losses in Health Care. At the country level, the portfolio outperformed in the United Kingdom, Norway, Netherlands and Belgium along with double-digit gains in a number of off-benchmark locales.
International Consolidated Airlines Group was the top contributor in Industrials, up more than 40% after a posting strong first quarter 2025 revenues and operating profits, cost efficiencies and lower fuel prices. Similarly, LATAM Airlines reported record first-quarter profits, driven by strong demand, disciplined cost management and robust cargo performance. Airport concessioner Vinci rose on a faster-than-expected recovery in European airport traffic and a record $84 billion construction order book.
The top-weighted Financial sector benefitted from a geographically-diverse set of holdings. South Korea’s Shinhan Financial was up more than 40% following strong quarterly results, with rising net income and better-than-expected earnings per share. Puerto Rico based Popular Inc. and Taiwan’s Chailease Holding Co. added to gains.
In Consumer Discretionary, Canadian Tire was up more than 30% after reporting strong first-quarter results and business developments. U.K.-based NEXT PLC cited strong online sales both domestically and internationally, highlighting demand for warm-weather apparel.
SK Hynix Inc. was the top overall portfolio contributor, capitalizing on its leadership in high-bandwidth memory chips and disciplined DRAM supply. The South Korean semiconductor supplier had record-breaking first-quarter results, highlighted by a 323% year-over-year surge in net profit and an operating margin of 42%.
Consumer Staples were middle of the pack, as Greencore Group was among the top 10 contributors, offset by Nomad Foods and Barry Callebaut, which languished in the bottom 10. U.K.-based Greencore advanced as ingredient and packaging inflation eased, lifting operating margins. With cocoa prices reaching record levels, chocolatier Barry Callebaut struggled to rein in rising costs coupled with overall volume declines. Nomad Foods declined following a downward revision of full-year guidance.
In Health Care, Jazz Pharmaceuticals reported a first quarter 2025 earnings and revenue miss. Sanofi disappointed as news hit on May 30th that its COPD pipeline drug succeeded in one Phase 3 trial, but failed in a second, throwing FDA approval timeline into doubt.
Portfolio Changes
During the quarter,we liquidated our positions in flatexDEGIRO, Tisco Financial, OpenText Corp and LG Electronics. We bought coffee conglomerate JDE Peets NV; Bankinter SA, a top European bank; Spanish utilities company Endesa SA; Japan’s Mitsubishi UFJ Financial; and French IT company Capgemini.
Outlook
Tariff concerns, rising U.S. debt levels, and slower growth projections are pushing investors toward attractive options in Europe and emerging markets. We expect this trend to continue if the Mag 7 lose their luster. The attraction is simple: European markets look relatively stable, with government stimulus spurring on domestic spending. EU GDP growth is unremarkable (in line with last year’s numbers); however, this compares favorably to the downward trajectory expected of U.S. GDP per International Monetary Fund forecasts. We continue to carefully research companies in both developed and emerging markets, as valuations remain very compelling.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2024 | $0.4387 | $0.0000 | $0.0000 |
| 2023 | $0.4349 | $0.0000 | $0.0000 |
| 2022 | $0.2965 | $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, 2025 for all funds except, Polaris International Opportunities Institutional and R6, Polaris Small Cap Institutional and R6 and Quality R6. For these fund classes the fee waiver and/or expense reimbursements that will reduce any fund operating expenses will be in effect until October 31, 2025.
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.