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*
10.01%
NAV*
$20.22
INCEPTION
May 1, 2008
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q609
BENCHMARK
MSCI ACWI ex. US SMALL CAP
NET EXPENSE RATIO(1)
1.44%
GROSS EXPENSE RATIO(2)
1.54%
*as of 8/6/2026
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 8/6/2026 |
Quarterly As Of 6/30/2026 |
1 Year As Of 6/30/2026 |
3 Years As Of 6/30/2026 |
5 Years As Of 6/30/2026 |
10 Years As Of 6/30/2026 |
Since Inception As Of 6/30/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 10.01% | 4.10% | 3.37% | 10.74% | 4.15% | 7.68% | 6.51% | 1.54% | 1.44% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 25.95% | -2.31% | 20.78% | -17.60% | 15.11% | 6.36% | 20.24% | -19.09% | 33.06% | 2.46% | -1.49% |
Portfolio
as of June 30, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 30.80% |
|---|---|
| Equatorial Energia S.A. | 4.50% |
| D'Ieteren S.A. | 4.10% |
| KITZ Corporation | 3.20% |
| Krungthai Card Public Company Limited | 2.90% |
| Elis S.A. | 2.80% |
| Thanachart Capital PCL | 2.80% |
| EQB Inc. | 2.80% |
| Aalberts N.V. | 2.60% |
| De'Longhi S.p.A. | 2.60% |
| Ipsos | 2.50% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 25.10% |
| Consumer Discretionary | 21.40% |
| Industrials | 18.10% |
| Information Technology | 10.50% |
| Utilities | 8.30% |
| Materials | 4.80% |
| Communication Services | 2.50% |
| Consumer Staples | 2.20% |
| Health Care | 1.20% |
| Energy | 1.00% |
| CASH + other assets (net) | 4.90% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 70.60% |
|---|---|
| France | 14.90% |
| Japan | 9.50% |
| Norway | 7.90% |
| Taiwan | 7.20% |
| United Kingdom | 7.00% |
| Thailand | 6.90% |
| Sweden | 4.70% |
| Belgium | 4.60% |
| Brazil | 4.50% |
| Germany | 3.40% |
Portfolio Characteristics
| Net Assets | $589,183,785 |
|---|---|
| Number Of Holdings | 53 |
| Percentage in Top 10 Holdings | 30.80% |
| Weighted Average Market Cap (Mil) | $3,572.16 |
| Annual Turnover | 27.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 95.10% |
| Cash and Other Assets (Net) | 4.90% |
Commentary
For the Quarter ended June 30, 2026
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 4.10% at net asset value compared to 9.81% for the Index.
Market Conditions and Investment Strategies
The second quarter was dominated by the AI semiconductor narrative, with pricing and shortages across the AI supply chain
driving strong performance (a sharp correction fell just outside of the quarter window in early July). Underperformance traces to
the Fund’s underweight in Information Technology (“IT”), and only tertiary exposure to high-flying semiconductor names. The Fund
did have double-digit returns from IT, along with Industrials, Health Care and Consumer Staples, while Consumer Discretionary,
Utilities and Energy were in absolute negative territory. At the country level, Thailand was the top contributor, alongside
Netherlands, France, U.K. and Ireland; China was the most notable detractor.
The top two contributors hailed from the Industrial sector, with Kitz Corp, a Japanese valve manufacturer, up on strong net income
growth and steady full-year guidance, with indirect AI/industrial equipment demand providing a tailwind. Aalberts NV supplies
parts for ASML’s chipmaking equipment. After a few slow quarters, ASML’s orders picked back up, giving Aalberts a direct lift
from the AI boom. Among Financials, Thanachart Capital and KrungThai Card rallied on Thailand’s economic stabilization, with
KrungThai’s latest earnings confirming the improving trend. EQB Inc. gained on its transaction with Loblaw Companies to acquire
the grocer’s store credit card business — a move that diversifies EQB’s customer base — with Loblaw simultaneously increasing
its equity stake in EQB. In Consumer Staples, Glanbia PLC continued to benefit from strong whey-protein demand, with results
reflecting that momentum. In IT, Sopra Steria Group, Wah Lee Industrial Corp., Computacenter PLC and Venture Corp. all posted
double-digit gains; however, these results paled in comparison to the 44% gain in the benchmark sector.
Chinese Consumer Discretionary names were the primary drag during the quarter. Auto dealers, China Meidong and Zhongsheng
Group were squeezed by weak local consumer demand and softening Western premium/luxury auto demand. Japan’s Open
House Group Inc. saw some profit-taking after a strong prior-year run; the Bank of Japan’s recent 1% rate hike may impact
mortgage affordability and housing demand.
Portfolio Changes
The Fund exited GoEasy Ltd. on elevated credit costs in its auto and recreational-vehicle loan books; sold Daicel Corp. for
failing to deliver on growth capex; exited Poongsan Corp. due to a corporate-governance issue tied to succession; and sold
Computacenter at a healthy profit as it reached valuation target. The quarter’s new purchase, Cosmecca Korea Co, is tapping into
the fast-growing K-beauty category in both Asian and Western markets.
Outlook
The Fund remains structurally underweight in direct AI and semiconductor exposure, as valuations in the space look decoupled
from fundamentals even though underlying demand growth is real; rather than chase these names directly, the team is adding
indirect, more reasonably priced stocks to participate in the AI theme. At the same time: the early July’s sharp AI stock selloff
points to capital rotating out of high-flying tech names and into Industrials, Financials, and other overlooked sectors — a shift
that could broaden opportunities beyond AI and support the Fund’s relative performance.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $0.4641 | $0.0000 | $0.0000 |
| 2024 | $0.3708 | $0.0000 | $0.0000 |
| 2023 | $0.3280 | $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.
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, 2027 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.