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*
5.17%
NAV*
$19.33
INCEPTION
May 1, 2008
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q609
BENCHMARK
MSCI ACWI ex. US SMALL CAP
NET EXPENSE RATIO(1)
1.42%
GROSS EXPENSE RATIO(2)
1.52%
*as of 1/29/2026
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 1/29/2026 |
Quarterly As Of 12/31/2025 |
1 Year As Of 12/31/2025 |
3 Years As Of 12/31/2025 |
5 Years As Of 12/31/2025 |
10 Years As Of 12/31/2025 |
Since Inception As Of 12/31/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 5.17% | -0.40% | 25.95% | 14.12% | 7.11% | 7.12% | 6.65% | 1.52% | 1.42% |
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 December 31, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 28.50% |
|---|---|
| Equatorial Energia S.A. | 4.00% |
| D'Ieteren S.A. | 3.50% |
| Sopra Steria | 3.30% |
| Glanbia plc | 3.10% |
| Sixt SE | 2.90% |
| Ipsos | 2.40% |
| Elis S.A. | 2.40% |
| Daicel Corporation | 2.30% |
| EQB Inc. | 2.30% |
| Rubis | 2.30% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 27.30% |
| Consumer Discretionary | 21.70% |
| Industrials | 17.30% |
| Information Technology | 9.20% |
| Utilities | 8.50% |
| Materials | 7.20% |
| Consumer Staples | 3.10% |
| Communication Services | 2.40% |
| Health Care | 1.40% |
| Energy | 0.90% |
| CASH + other assets (net) | 1.00% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 71.00% |
|---|---|
| France | 15.60% |
| Japan | 12.30% |
| United Kingdom | 8.10% |
| Norway | 7.10% |
| Thailand | 6.70% |
| Sweden | 4.50% |
| Canada | 4.40% |
| Taiwan | 4.20% |
| Brazil | 4.10% |
| Belgium | 4.00% |
Portfolio Characteristics
| Net Assets | $667,061,907 |
|---|---|
| Number Of Holdings | 56 |
| Percentage in Top 10 Holdings | 28.50% |
| Weighted Average Market Cap (Mil) | $3,927.82 |
| Annual Turnover | 13.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 99.00% |
| Cash and Other Assets (Net) | 1.00% |
Commentary
For the Quarter ended December 31, 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 (0.40%) at net asset value compared to 3.02% for the Index.
Market Conditions and Investment Strategies
The Fund outperformed in Financials, Consumer Discretionary and Consumer Staples, further bolstered by gains in Utilities.
Yet returns trailed the benchmark due to losses in Industrials, Information Technology (IT), Energy and Materials. In particular,
the Fund had limited exposure to a heated metals and mining subsector of Materials, impacting performance. Top country
contributions hailed from Japan, Norway, Thailand and Italy, while select Asian economies (China, Hong Kong and South Korea)
detracted.
In Consumer Discretionary, Italian appliance maker De’Longhi SPA posted strong sales on the backdrop of efficient operations;
the company raised its financial guidance for the second time in 2025, pointing to upbeat revenue forecasts. Japan’s Open
House Group posted fiscal year-end sales and profits that exceeded the prior comparable period. Management listed a handful
of contributing factors: moderate economic recovery, accommodative monetary policies and higher average land prices (both
commercial and residential). Among Financials, Thanachart Capital benefitted from a declining interest rate environment,
reducing its cost of funds faster than the decline in the yield of earning assets, while expanding its loan portfolio. The company
was able to maintain earnings and issue hefty dividends. Canada’s EQB Inc. gained on news of its acquisition of PC Financial,
making EQB the exclusive financial partner for the PC Optimum program, boosting its customer base by over 2 million. Brazilian
Energy company Equatorial Energia reported robust third quarter earnings on the backdrop of operational efficiencies and
strategic divestments, including the sale of its transmission segment.
Among detractors, Canadian alternative financial services company goeasy Ltd. fell after an unsubstantiated short report alleged
accounting manipulation. IT company VSTECS Holdings delivered record-breaking performance in the third quarter of 2025, driven
by robust demand in AI-related infrastructure and public sector projects. The stock declined on profit taking. International rental
car company SIXT was down after its German management team guided for soft demand in 2026.
Two Industrials were relegated to the bottom 10 holdings: South Korea’s Poongsan Corp. posted lower quarterly operating profits,
mainly due to U.S. subsidiary PMX Industries. Contributing factors included volatile copper prices, higher production costs, weak
shipments, and delayed defense sales. In mid-November, British global defense security and aerospace company QinetiQ Group
reported first half results that outlined lower revenues but higher operating profit margins. The company went on to maintain
upbeat guidance; however, investors remained wary of challenging market conditions.
Portfolio Changes
During the quarter, the Fund sold Kingboard Laminates as it reached valuation limits, while Orion Corp. was exited on corporate
governance concerns. Proceeds were reinvested into steel wire manufacturer (for tire cord, construction, etc.) Bekaert NV and
three Consumer Discretionary stocks: Sweden’s for-profit education company, Academedia SA; South African car distributor Motus
Holdings; and French small appliance manufacturer SEB SA.
Outlook
International small caps are increasingly attractive as investors rotate from concentrated big tech and AI positions toward
broader, fundamentally-driven opportunities in undervalued markets. The combination of attractive valuations in Europe and
emerging markets, onshoring/nearshoring tailwinds, limited exposure to tariffs/geopolitical risks and U.S. dollar weakness
creates a compelling backdrop for international small caps.
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.
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.