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



February 6, 2017







*as of 5/31/2023

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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 5/31/2023
As Of 3/31/2023
1 Year
As Of 3/31/2023
3 Years
As Of 3/31/2023
5 Years
As Of 3/31/2023
10 Years
As Of 3/31/2023
Since Inception As Of
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
5.05% 8.14% -4.58% 14.76% 1.21% N/A 3.84% 1.10% 0.94%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-17.26% 15.69% 6.74% 20.77% -18.81% 33.44% 2.75% -1.27% 6.85% 25.20% 27.52%


as of March 31, 2023

Top Ten Holdings

Percentage Of Total Net Assets 25.20%
Weichai Power Company Limited 3.00%
Marubeni Corporation 2.70%
Publicis Groupe 2.70%
Deutsche Telekom AG 2.50%
Methanex Corporation 2.50%
Vinci SA 2.50%
Sony Group Corporation 2.40%
Koninklijke Ahold Delhaize 2.30%
Muenchener Rueckversicherungs-Gesellschaft 2.30%
Linde plc 2.30%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 23.1
Financials 17.9
Materials 16.3
Industrials 12
Communication Services 10.6
Information Technology 6.4
Health Care 4.2
Consumer Staples 3.5
Real Estate 1.8
Cash and Other Assets (Net) 4.2

Top Ten Country Allocations

Percentage Of Total Net Assets 82.30%
United Kingdom 12.50%
South Korea 12.30%
Japan 12.10%
Canada 11.00%
France 8.90%
Germany 7.30%
Norway 6.30%
Ireland 4.80%
Sweden 4.10%
China 3.00%

Portfolio Characteristics

Net Assets $3,175,973,135
Number Of Holdings 58
Percentage in Top 10 Holdings 25.20%
Weighted Average Market Cap (Mil) $
Annual Turnover 19.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 95.80%
Cash and Other Assets (Net) 4.20%

For the Quarter ended March 31, 2023

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 7.99% at net asset value compared to 8.62% for the Index.

Market Conditions and Investment Strategies

The Fund had double-digit gains in the Consumer Discretionary, Industrials, Information Technology, Communication Services and
Consumer Staples sectors. IT stocks proved an unexpected safe haven; holdings in OpenText Corp., Samsung Electronics and
SK Hynix contributed measurably. These results were offset by declines in the hard-hit Financial and Health Care sectors. On the
country level, contraction came from Norway’s banks and single holdings in Puerto Rico, Singapore and Colombia. The portfolio
benefitted from absolute positive performance in Japan, U.K., France and Sweden, as well as select off-benchmark countries.

In Consumer Discretionary, Kia Corp. posted sales up more than 20% for the quarter with its SUV fleet leading the charge.
Sony Corp. introduced PlayStation VR2, which served as a launch platform for other popular games and networking services.
Conversely, Magna International issued a profit warning on higher EV engineering costs, warranty expenses and softer volumes on
chip shortages.

In Industrials, Weichai Power posted impressive full-year results, as infrastructure demand ramped up in a recovering Chinese
economy. Japan’s Marubeni Corp. noted robust growth in its key divisions. SKF AB, the Swedish bearing and seal manufacturer,
reported strong quarterly earnings on organic growth, product mix, and volumes.

In Communication Services, Publicis released full-year 2022 earnings highlighting organic growth backed by its Epsilon and
Sapient divisions. Deutsche Telekom had notable earnings, citing increased revenue, greater free cash flow and healthy 2023
guidance. LG Uplus was the only notable sector laggard as it faced competition in the IPTV and VOD markets as well as
regulatory hurdles on rate plans.

The Health Care sector lived up to its reputation as a defensive play in 2022 on the tail end of the COVID crisis and rising
inflation. Pricey valuations from 2022 are finally being re-evaluated as investors return to fundamentals. As a result, the health
care industry in general has stagnated.

Most Financial sector declines stemmed directly from the SVB/Credit Suisse failures and concerns about a broader banking
crisis, which hasn’t come to pass. Toronto-Dominion Bank reported lumpy quarterly results, with strong U.S. retail and Canadian
personal/commercial banking income offset by decreases in wealth management and insurance. With nearly 40% of its business
in the U.S., TD suffered along with its U.S.-based counterparts. Loan loss provisions at Nordic banks (like DNB Bank and
Sparebank 1 SR) are set to climb in 2023, as rising interest rates weigh on commercial real estate exposure.

Portfolio Changes

We exited Babcock International and Brother Industries during the quarter. Sale proceeds were used to purchase Canadian Tire,
one of the oldest and largest general merchandisers in Canada.


Although inflation is moderating, central banks will maintain restrictive monetary policies, albeit at smaller increments, for the
foreseeable future. A slowdown is likely, the speed and gravity of which is still in question considering the resiliency of markets.
A balancing act between these competing macro trends will induce continued market volatility. This bodes well for our portfolio,
as we identify and purchase fundamentally-strong companies at attractive prices.


Dividend Short-Term Capital Gain Long-Term Capital Gain
2022 $0.3848 $0.0000 $0.0000
2021 $0.3433 $0.0000 $0.0000
2020 $0.4439 $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 (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, 2023.

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 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.