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 35 years of investment experience to the Fund.

Fund Overview

YTD RETURN*
-28.41%

NAV*
$12.02

INCEPTION
May 1, 2008

MINIMUM INVESTMENT
$1,000,000

CUSIP
70472Q500

BENCHMARK
MSCI ACWI ex. US SMALL CAP

NET EXPENSE RATIO(1)
1.04%

GROSS EXPENSE RATIO(2)
1.26%

 

*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)
-28.41% -14.14% -19.88% 3.14% 1.87% 7.58% 5.49% 1.26% 1.04%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
15.56% 6.66% 20.71% -18.77% 33.43% 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 24.18%
BizLink Holding, Inc. 2.70%
QinetiQ 2.70%
Nomad Foods Limited 2.50%
Future plc 2.50%
Equatorial Energia S.A. 2.40%
D'Ieteren S.A. 2.30%
Open House Group Co., Ltd. 2.30%
Sanwa Holdings Corporation 2.30%
Vistry Group plc 2.20%
AEM Holdings Limited 2.10%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Industrials 25.1
Financials 18.2
Consumer Discretionary 17
Information Technology 12.9
Consumer Staples 11
Materials 6.8
Utilities 4.4
Communication Services 2.4
Real Estate 1.5
CASH + other assets (net) 70.00%

Top Ten Country Allocations

Percentage Of Total Net Assets
United Kingdom 18.6
Japan 15.6
Taiwan 10.9
Ireland 5.4
Sweden 4.8
Canada 4.8
Norway 4.2
Singapore 4
Thailand 4
Denmark 3.2

Portfolio Characteristics

Net Assets $997,757,838
Number Of Holdings 69
Percentage in Top 10 Holdings 24.18%
Weighted Average Market Cap (Mil) $2,047.58
Annual Turnover 29.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 99.30%
Cash and Other Assets (Net) 70.00%%

FOR THE QUARTER ENDED JUNE 30, 2022

The Pear Tree Polaris Foreign Value Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the MSCI ACWI ex USA Small Cap Index (the “Index”). The Fund had a return of (14.21%) at net asset value compared to (17.38%) for the Index.

Market Conditions and Investment Strategies

Defensive sectors (Communication Services, Utilities, Consumer Staples) rotated back into favor after the last few quarters
of cyclical sector gains. Financials, Industrials and Consumer Discretionary detracted most. At the country level, the portfolio
outperformed in the majority of regions, many in Asia; notable decliners included Denmark, Ireland and Norway, where the Fund
was overweight and underperformed. Weakness in most foreign currencies relative to the U.S. dollar impacted Fund results.

QinetiQ Group was the top contributor to performance, as the British defense technology company posted strong operational
results, earnings and orders, with further organic growth expected in response to the Ukraine-Russia conflict. Primax Electronics,
the computer equipment manufacturer, was up 18% following a standout quarter with year-on-year revenue, net income and EPS
gains. Another Information Technology company, VTech Holdings gained ground as it increased prices for in-demand electronic
learning products and cordless landline phones. While supply chain disruption remains a concern, VTech noted that freight costs
declined during the quarter. Two Consumer Discretionary stocks, Samson Holding and Xinhua Winshare Publishing, rounded out
the top contributors. With excess cash flow, Samson initiated a share buyback and also announced plans to establish another
factory in Vietnam.

Weakening demand for electronic devices and a COVID-induced plant shutdown in Shanghai hurt Elite Material Co. Italian
home appliance brand, De’Longhi SpA, dropped more than 30% as inflation and higher prices impacted purchasing power; end
consumers forsook discretionary buys in favor of staples. Japanese nonferrous metals manufacturer, Dowa Holdings, was down
due to general metals commodity weakness.

Portfolio Changes

Given the potential for a recession, we continued to strategically reposition the Fund, adding more defensive companies and
reducing weightings in economically-sensitive sectors and geographies. The Fund exited LIC Housing Finance, Hitron Technology,
Huaku Development and Cineworld Group. Although Cineworld recovered from pandemic lows, concerns about leverage on the
balance sheet precipitated the sale. Hitron Technology and Huaku Development neared target valuation limits; this proved a
prime time to sell, reducing the Fund’s overweight position in Taiwan. Among new defensive purchases were Consumer Staples
company, Nomad Foods, a British frozen foods supplier; and Communication Services company, Future PLC, a U.K. publishing
company with a diversified business model and notable growth strategy. Open House Group, a Japanese affordable single-family
home developer, was also added to the portfolio.

Outlook

Inflation may remain stubbornly high so long as COVID-19 lockdowns in China and the Russia-Ukraine conflict impede the supply
chain. The Federal Reserve and other central banks worldwide raised interest rates in an attempt to cool inflation; there is a fine
balance yet to be reached between taming inflation and avoiding a recession. Global markets have been understandably volatile;
we see opportunity in such markets, purchasing fundamentally strong stocks at undervalued prices. We are satisfied with the
composition of the Fund, but may add a few more defensive positions to further de-risk the portfolio. We expect that our patient
bottom-up research efforts, on a backdrop of macro-economics, will allow us to continue to outperform in this trying climate.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.2081 $0.0000 $0.1995
2020 $0.5790 $0.0000 $0.0000
2019 $0.4301 $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.