Pear Tree Polaris Foreign Value Small Cap Fund
The PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND provides investors with the opportunity to participate in the growth potential of small cap companies located in foreign countries. A small cap company will generally be a company with a market capitalization from $50 million to $5 billion.
Investment Process
The Fund will generally own 50 to 100 stocks of non-U.S. companies located in Europe, Australia and the Far East. In addition, the Fund may also invest in companies located 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 foreign markets, reduces the likelihood that negative 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 over 30,000 companies down to 400 to 600 for further consideration. 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*
23.24%
NAV*
$18.35
INCEPTION
May 1, 2008
MINIMUM INVESTMENT
$1,000,000
CUSIP
70472Q500
BENCHMARK
MSCI ACWI ex. US SMALL CAP
NET EXPENSE RATIO(1)
1.05%
GROSS EXPENSE RATIO(2)
1.27%
*as of 10/30/2025
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.
Sumanta Biswas, CFA
Bin Xiao, CFA
Jason Crawshaw
Performance
| YTD As Of 10/30/2025 |
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) |
|---|---|---|---|---|---|---|---|---|
| 23.24% | 3.00% | 14.93% | 20.24% | 12.14% | 7.94% | 7.09% | 1.27% | 1.05% |
Calendar Year
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.95% | 21.29% | -17.30% | 15.56% | 6.66% | 20.71% | -18.77% | 33.43% | 2.75% | -1.27% | 6.85% |
Portfolio
as of September 30, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 29.70% |
|---|---|
| Equatorial Energia S.A. | 3.70% |
| Computacenter plc | 3.40% |
| EQB Inc. | 3.20% |
| D'Ieteren S.A. | 3.00% |
| Sixt SE | 2.90% |
| TISCO Financial Group | 2.90% |
| Thanachart Capital PCL | 2.90% |
| Glanbia plc | 2.70% |
| goeasy Ltd. | 2.50% |
| Rubis | 2.50% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 28.00% |
| Industrials | 17.60% |
| Consumer Discretionary | 16.20% |
| Information Technology | 11.80% |
| Utilities | 7.40% |
| Materials | 6.70% |
| Consumer Staples | 3.30% |
| Communication Services | 2.30% |
| Health Care | 1.80% |
| Energy | 1.50% |
| CASH + other assets (net) | 3.40% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 71.30% |
|---|---|
| France | 13.10% |
| United Kingdom | 12.40% |
| Japan | 11.90% |
| Thailand | 7.40% |
| Canada | 5.70% |
| Norway | 5.50% |
| Germany | 4.10% |
| South Korea | 3.80% |
| Brazil | 3.70% |
| Hong Kong | 3.70% |
Portfolio Characteristics
| Net Assets | $717,287,963 |
|---|---|
| Number Of Holdings | 54 |
| Percentage in Top 10 Holdings | 29.70% |
| Weighted Average Market Cap (Mil) | $3,995.38 |
| Annual Turnover | 13.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 96.60% |
| Cash and Other Assets (Net) | 3.40% |
Commentary
For the Quarter ended September 30, 2025
The Pear Tree Polaris Foreign Value Small Cap Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI ACWI ex USA Small Cap Index (the “Index”). The Fund had a return of 2.88% at net asset value compared to 6.80% for the Index.
Market Conditions and Investment Strategies
The Fund outperformed in Utilities, Consumer Staples and Energy, further bolstered by notable gains in overweight Information Technology (“IT”) and Financials sectors. Yet returns trailed the benchmark due to losses in Health Care and Communication Services. Top country contributions hailed from Asian economies (Japan, Hong Kong, Thailand and Singapore) while a handful of European holdings (France, Belgium, Netherlands) and Canada detracted.
In IT, VSTECS Holdings saw net profit jump more than 30%, with strong growth in its three main business segments. Kingboard Laminates reported robust growth in the first half of 2025, due to strong electronics demand (AI as a key driver) and supply/ demand imbalances that allowed for price hikes. Similarly, Computacenter reported strong half-year numbers fueled by strong demand from hyperscale/enterprise clients in the U.S. and U.K.; product order backlog was robust. Sector gains were partially offset by Sopra Steria, which posted lackluster financial results. Political instability in France, where Sopra Steria derives a
significant portion of revenue, also weighed on the stock.
Individual standouts worth a mention: Independent energy group Rubis pointed to strong LPG sales in Europe, improved volumes/margins in Africa and continued growth in its renewable electricity arm. In September, Rubis was the subject of takeover rumors, causing the stock to jump. Japanese real estate company, Open House Group Co., benefitted from a rally in the local property sector. Irish nutritional Glanbia increased its full-year EPS guidance, showing sequential improvement in its performance nutrition segment and strong growth in other core business lines (health & nutrition, dairy).
Only a few companies declined more than 10% for the quarter; among them was the aforementioned Sopra Steria. Auto distributor/vehicle glass repair company, D’Ieteren Group, had underwhelming half-year numbers; profit declined due to higher debt costs at subsidiary Belron and weak auto division performance. French market research firm Ipsos replaced its CEO, as Ipsos’ board demanded acceleration of digital transformation, data analytics, and AI capabilities to meet shifting client demands. Canada’s EQB Inc. had a disappointing quarter, with analysts voicing concerns about credit quality and profitability; new management countered, citing delinquency improvements. Aalberts had lackluster results, citing continued destocking in its
semiconductor business and slower demand in its building/industry segments.
Portfolio Changes
The Japanese stock market rally offered a prime opportunity to take profits from Sankyu Inc. and Dowa Holdings Co. Other sales included Tecnoglass, Signify and Pakuwon Jati. Sale proceeds were reallocated to existing holdings and two new purchases: Kitz Corp, the world’s leading manufacturer of precision valves, and Krungthai Card, a Thai based credit card/personal loan banking institution. Both companies have promising long-term demand metrics, yet are undervalued due to recent volatility.
Outlook
Capital concentration in AI has obscured broader market fragility amid slowing growth and softening demand. Governments are acting to control inflation, negotiate tariffs and push stimulus; we expect such efforts will result in a broad-based recovery across country and industry instead of the one-dimensional AI growth engine. We believe we are positioned to capture that shift –continuing to refine the portfolio for a superior risk/return profile.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2024 | $0.4884 | $0.0000 | $0.0000 |
| 2023 | $0.3895 | $0.0000 | $0.0000 |
| 2022 | $0.6311 | $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.