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*
9.28%

NAV*
$10.60

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 1/27/2023

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 1/27/2023
Quarterly
As Of 12/31/2022
1 Year
As Of 12/31/2022
3 Years
As Of 12/31/2022
5 Years
As Of 12/31/2022
10 Years
As Of 12/31/2022
Since Inception As Of
12/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
9.28% 17.72% -16.72% -2.22% -0.72% N/A 2.63% 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%

Portfolio

as of December 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 24.70%
Publicis Groupe 2.70%
Marubeni Corporation 2.60%
DNB Bank ASA  2.50%
Deutsche Telekom AG 2.50%
Toronto-Dominion Bank 2.40%
Next plc 2.40%
Weichai Power Company Limited 2.40%
Methanex Corporation 2.40%
Linde plc 2.40%
Novartis AG 2.40%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 21.3
Financials 20.4
Materials 18.9
Industrials 11.6
Communication Services 11.1
Information Technology 5.6
Health Care 4.4
Consumer Staples 3.5
Real Estate 1.9
Cash and Other Assets (Net) 1.3

Top Ten Country Allocations

Percentage Of Total Net Assets 83.60%
United Kingdom 15.20%
Japan 12.90%
South Korea 11.00%
Canada 9.90%
France 8.60%
Norway 7.60%
Germany 7.30%
Ireland 4.90%
Sweden 3.80%
China 2.40%

Portfolio Characteristics

Net Assets $3,236,498,704
Number Of Holdings 60
Percentage in Top 10 Holdings 24.70%
Weighted Average Market Cap (Mil) $36,049.70
Annual Turnover 19.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 98.70%
Cash and Other Assets (Net) 1.30%

For the Quarter ended December 31, 2022

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 17.58% at net asset value compared to 17.40% for the Index.

Market Conditions and Investment Strategies

The Fund had double-digit returns in overweight sectors (Consumer Discretionary, Materials, Financials and Communication
Services), as well as Industrials and Health Care. Information Technology, Real Estate and Consumer Staples were in modest
positive territory by comparison. At the country level, Fund holdings in most European countries, including the U.K., France and
Norway, as well as off-benchmark countries like Chile, China, Colombia and Greece, were absolute contributors. Detractors were
mainly single stock holdings in Puerto Rico and Italy.

Next PLC, the U.K. apparel retailer, issued a reassuring trading statement with upbeat full-year earnings, citing a number of macro
tailwinds. Inchcape, the U.K.-based global automotive distributor, reported strong organic growth across distribution and retail
divisions. Chilean copper miner Antofagasta gained on higher copper prices, Chinese market demand, and a better political
environment in Chile. In Industrials, Chinese diesel engine manufacturer Weichai rallied on heavy duty trucks orders, which are
expected to start rolling in as China retracts its strict COVID-19 measures. High commodity prices and a weaker Yen helped
Marubeni, the Japanese international trading house. Two French Communication Services stocks (Publicis Groupe and Ipsos
Group) were standouts during the quarter.

The Financial sector had barbell returns with some of the best and worst portfolio performers. The stock price of German
reinsurers, Hannover Re and Munich Re, gained on a firmer pricing environment. Conversely, Puerto Rican bank, Popular Inc.,
declined on lower net interest income and net interest margins due to the rapid repricing of government deposits. flatexDEGIRO,
a German online discount brokerage firm, cut its fiscal year revenue forecast; the company was also subject to new regulatory
and audit requirements.

Among other detractors was South Korean auto maker, Kia, which had slack quarterly results on the back of higher costs and
extra provisions for engine recalls. Greencore showed progressive annual improvements in revenue; however, management struck
a cautious tone about 2023 cost-of-living conditions in the U.K.

Portfolio Changes

During the quarter, six portfolio companies were sold, most of which were exited on deteriorating fundamentals or less favorable
market trends. One new purchase was Koninklijke Ahold Delhaize, a global leader of supermarket brands.

Outlook

For the foreseeable future, we expect central banks worldwide will raise interest rates to temper inflation – albeit at more
metered increments. Regardless of the pace of hikes, the end result is the same: the cost of capital goes higher and liquidity is
drained out of the system. This scenario has not been fully realized, as markets have been buffeted by abundant stimulus cash
in individuals’ bank accounts and on company balance sheets. However, savings are slowly dwindling, while companies are facing
higher costs and lower volumes as consumer spending slows. As economic growth stagnates, we expect pricey high-growth stocks
to suffer.

At Polaris, we maintain our strict value commitment, steering clear of the richly valued stocks and tech high-flyers prone to steep
declines in this environment. Our research screens continue to find attractively priced, fundamentally sound companies intended
to diversify the portfolio, enhance the valuation profile and minimize downside risk.

Distributions

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 (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.