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

YTD RETURN*
-29.42%

NAV*
$8.54

INCEPTION
February 6, 2017

MINIMUM INVESTMENT
$100,000

CUSIP
70472Q773

BENCHMARK
MSCI EAFE

NET EXPENSE RATIO(1)
0.94%

GROSS EXPENSE RATIO(2)
1.10%

 

*as of 9/28/2022

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.
Sumanta Biswas, CFA
Bin Xiao, CFA
Jason Crawshaw

Performance

YTD
As Of 9/28/2022
Quarterly
As Of 6/30/2022
1 Year
As Of 6/30/2022
3 Years
As Of 6/30/2022
5 Years
As Of 6/30/2022
10 Years
As Of 6/30/2022
Since Inception As Of
6/30/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-29.42% -14.97% -20.76% -1.36% 0.47% N/A 2.18% 1.10% 0.94%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
15.69% 6.74% 20.77% -18.81% 33.44% 2.75% -1.27% 6.85% 25.20% 27.52% -19.86%

Portfolio

as of June 30, 2022

Top Ten Holdings

Percentage Of Total Net Assets 22.70%
Popular, Inc. 2.90%
Jazz Pharmaceuticals plc (a) 2.50%
Deutsche Telekom AG 2.20%
Publicis Groupe 2.20%
Toronto-Dominion Bank 2.20%
KDDI Corporation 2.20%
Methanex Corporation 2.20%
Amcor plc 2.10%
Marubeni Corporation 2.10%
DNB Bank ASA  2.10%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 20.5
Financials 19.4
Materials 18.7
Industrials 10.8
Communication Services 10.1
Information Technology 8.4
Health Care 5.4
Consumer Staples 3.5
Real Estate 1.5
Cash and Other Assets (Net) 1.7

Top Ten Country Allocations

Percentage Of Total Net Assets 84.10%
United Kingdom 15.90%
Japan 14.00%
South Korea 11.50%
Germany 10.10%
Canada 9.90%
France 6.80%
Norway 6.30%
Sweden 3.40%
Ireland 3.30%
Puerto Rico 2.90%

Portfolio Characteristics

Net Assets $3,538,513,400
Number Of Holdings 65
Percentage in Top 10 Holdings 22.70%
Weighted Average Market Cap (Mil) $30,688.16
Annual Turnover 19.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 98.30%
Cash and Other Assets (Net) 1.70%

FOR THE QUARTER ENDED JUNE 30, 2022

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 (15.08%) at net asset value compared to (14.29%) for the Index.

Market Conditions and Investment Strategies

Defensive sectors rotated back into favor after the last few quarters of cyclical sector gains. Health Care was the top contributor,
followed by Real Estate and Consumer Staples. Financials, Materials and Consumer Discretionary detracted most. At the country
level, the portfolio had barbell results as Taiwan, China, Greece, India and Puerto Rico had relatively strong results, while South
Korea and Canada declined. Weakness in most foreign currencies relative to the U.S. dollar hampered portfolio results.

Deutsche Telekom (DT) was the largest contributor in the portfolio, as the German telecom reported respectable quarterly results
and raised full year guidance on the back of its U.S. T-Mobile business. DT also announced the sale of its 40,000+ cell tower
portfolio across Germany and Austria.

Jazz Pharmaceuticals was up modestly on earnings; the company continues to execute on its strategy and drug pipeline.

Among Information Technology holdings, Catcher Technology was up more than 10% as the Taiwanese company reported new
model and market share gains across major clients and gaming PCs. SK Hynix and Samsung Electronics slid on less favorable
supply-demand metrics.

High gas prices had a deleterious impact on purchasing power as end consumers forsook discretionary buys in favor of staples.
As a result, stocks like LG Electronics and Sony Group Corp. declined in excess of 20% for the quarter.

In the Financial sector, the stock price of flatexDEGIRO AG halved during the quarter on general market volatility. The German
online discount brokerage firm posted higher quarterly revenues and added to its 2.2 million customer base, but numbers failed
to meet analyst expectations. Norwegian based Sparebank 1 SR-Bank highlighted decent loan growth and stable margins in its
most recent earnings release, yet profits deteriorated.

U.K. consumer packaging company Amcor was among the top contributors within the Materials sector. The company delivered
strong numbers after passing raw material costs on to their customers. Copper miners, Antofagasta and Lundin Mining, lost
steam as copper prices dropped 18% on the quarter, further crimped by slower Chinese industrial activity and stress in the local
housing market. Similarly, methanol prices dropped from prior highs; Canada’s Methanex lost nearly 30% although company
fundamentals remain resilient.

Portfolio Changes

During the quarter, Swedish bank Svenska Handelsbanken and Indian IT outsourcer Infosys were sold in favor of more defensive
plays. For example, the Consumer Staples sector has been trading at an extreme discount to its own history; consumers will
purchase food staples regardless of inflation or recession. Therefore, we purchased British frozen foods company, Nomad Foods.
We also bought OpenText Corp., a provider of enterprise information management software and solutions.

Outlook

We continue to strategically reposition the portfolio, adding more defensive companies and reducing weightings in economically sensitive sectors. We are carefully assessing companies with higher debt levels that may be negatively impacted by higher
interest rates, and will update the portfolio as our research dictates. We may purchase opportunistically on further downturns,
seeking new companies that further de-risk and diversify the Fund portfolio. We expect that our patient, fundamental research
efforts, on a backdrop of macro-economics, will allow us to outperform in this trying climate.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.3433 $0.0000 $0.0000
2020 $0.4439 $0.0000 $0.0000
2019 $0.3446 $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 (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, 2023.

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.