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*
26.12%

NAV*
$28.39

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 10/22/2025

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 10/22/2025
Quarterly
As Of 9/30/2025
1 Year
As Of 9/30/2025
3 Years
As Of 9/30/2025
5 Years
As Of 9/30/2025
10 Years
As Of 9/30/2025
Since Inception As Of
9/30/2025
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
26.12% 4.65% 12.65% 20.18% 11.01% 6.64% 6.26% 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%

For the Quarter ended September 30, 2025

The Pear Tree Polaris Foreign Value Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI EAFE Index (the “Index”). The Fund had a return of 4.65% at net asset value compared to 4.83% for the Index.

Market Conditions and Investment Strategies

Global equity markets saw broad positive returns in the third quarter of 2025, with emerging markets leading the charge. Looking further afield, Spain, Netherlands, Italy, Belgium and Canada outperformed a rallying U.S. market, which gained more than 8% (S&P 500 Index). France and Germany languished on geopolitical concerns. Fund performance generally followed this geographic trend. At
the sector level, Financials contributed most, followed by other cyclicals. Underperformance in a heated Communication Services sector
hampered results.

Japanese trading company Marubeni Corp. closed in on its guidance targets, engaging in new investments, improving shareholder returns, and increasing the overall profit mix from non-resource businesses. Elsewhere in Industrials, Daimler Truck Holding cut its key profit forecast for 2025 due to continuous North America market weakness. Teleperformance’s specialized services segment disappointed due to the loss of a large contract and a broader slowdown in its translation division.

In Materials, Lundin Mining Corp. had solid results with copper/gold production tracking to full year targets. Conversely, Mondi PLC’s first half 2025 results fell below expectations due to soft volume in flexible packaging. The stock was subsequently sold.

In Consumer Discretionary, Chinese online retailer Vipshop Holdings Ltd. guided for revenue growth, suggesting an inflection point. Magna International Inc. traded higher as investors reassessed its earnings trajectory. D’Ieteren Group posted underwhelming half-year numbers; profit declined due to higher debt costs at subsidiary Belron and weak performance in the auto division.

In Information Technology, Samsung Electronics outperformed as it made solid progress in HBM4 with improving yield, while its HBM3 cleared Nvidia’s performance benchmarks. Samsung’s foundry business secured a $16.5 billion deal with Tesla to manufacture next generation AI chips. Capgemini SE dipped after announcing the $3.3 billion acquisition of WNS, as investors questioned demand for business outsourcing.

Fund holdings in Communication Services failed to keep pace with sector benchmark gains. Publicis Groupe faced selling pressure on pricing and demand. Ipsos underwent a CEO leadership change. Both French companies also suffered as political turmoil roils the country.

Portfolio Changes

During the quarter, the Fund exited Canadian Tire and Tecnoglass, as good performance stretched valuations. Coffee company JDE Peet’s was sold at a healthy profit when the company accepted an all-cash takeover offer at a 20% premium from Keurig Dr Pepper. Mondi was sold, as referenced above. The Fund invested in HD Hyundai Electric as utility grid demand for electrical transformers is driving a multi-year backlog. Global logistics provider DHL Group was added for its international division, DHL Express.

Outlook

The current “two-speed” economy is characterized by a narrow AI-driven boom versus subdued growth across most other industries. AI enthusiasm has overshadowed underlying global economic weakness. Global economies must control inflation without stalling growth, restore fiscal discipline, invest in infrastructure/innovation, and strengthen real wages. Signs of recovery are already appearing in Asia, Spain and the Nordic region, and we see the next leg of growth coming from multiple engines, not just one. As economies execute on these fronts, the stage is set for sustainable, broad-based global growth.

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, 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.