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*
6.70%

NAV*
$14.17

INCEPTION
May 1, 2008

MINIMUM INVESTMENT
$2,500

CUSIP
70472Q609

BENCHMARK
MSCI ACWI ex. US SMALL CAP

NET EXPENSE RATIO(1)
1.41%

GROSS EXPENSE RATIO(2)
1.51%

 

*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)
6.70% 15.14% -17.60% 0.29% -0.37% 5.78% 5.18% 1.51% 1.41%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-17.60% 15.11% 6.36% 20.24% -19.09% 33.06% 2.46% -1.49% 6.54% 24.95% 27.11%

Portfolio

as of December 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 25.80%
D'Ieteren S.A. 3.10%
Elis S.A. 2.80%
QinetiQ 2.70%
Ringkjoebing Landbobank A/S 2.60%
Lancashire Holdings Limited 2.50%
Equatorial Energia S.A. 2.50%
Jumbo S.A. 2.50%
Hexpol AB 2.40%
Inchcape plc 2.40%
Thanachart Capital PCL 2.30%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Industrials 23.3
Financials 20.5
Consumer Discretionary 19.3
Consumer Staples 9.8
Information Technology 7.8
Materials 7.1
Utilities 4.3
Energy 2.3
Communication Services 2.1
Real Estate 1.2
CASH + other assets (net) 2.3

Top Ten Country Allocations

Percentage Of Total Net Assets
United Kingdom 18.6
Japan 16.8
Sweden 5.6
France 5.1
Ireland 5
Norway 4.6
Thailand 4.6
Canada 4.2
Taiwan 4.2
Denmark 4

Portfolio Characteristics

Net Assets $982,011,115
Number Of Holdings 65
Percentage in Top 10 Holdings 25.80%
Weighted Average Market Cap (Mil) $2,364.81
Annual Turnover 29.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 97.70%
Cash and Other Assets (Net) 2.30%

For the Quarter ended December 31, 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 15.14% at net asset value compared to 13.39% for the Index.

Market Conditions and Investment Strategies

The Fund had double-digit gains in Consumer Discretionary, Financials, Industrials and Consumer Staples. The Fund is overweight
in these four sectors, collectively comprising approximately 70% of the portfolio. Information Technology (IT) was the biggest
detractor to performance. From a country perspective, Europe helped with Fund holdings in the U.K., Sweden, Norway, Denmark
and France contributing measurably, while Asia was a mixed bag with Japan doing well while stocks in Taiwan, Singapore and
Hong Kong underwhelmed. Reversal of the U.S dollar also helped; the dollar weakened after a prolonged period of strengthening
against most currencies to which the Fund is exposed.

Elis SA, the French laundry service, was the top contributor to Fund performance, as post-pandemic reopening drove strong
organic growth. The company resumed hotel/office services, while maintaining its defensive volumes. Elsewhere in the Industrials
sector, Tecnoglass Inc. had impressive third quarter results, with organic growth in both the residential and commercial space. In
the Consumer Discretionary sector, D’Ieteren Group hired a new CEO for Belron, their global glass repair business. The CEO has a
long tenure integrating M&A activities, which will be a boon for Belron as it continues its acquisitive growth initiatives. De’Longhi
SPA’s revenues fell modestly amid mounting European headwinds, but its professional coffee machine division showed sustained
growth; the market responded positively to this relatively stable news. Jumbo, the Greek toy company, had impressive thirdquarter
earnings, with sales up nearly 8% year over year amid brick-and-mortar expansion into other countries. A convergence of
global events (Russia-Ukraine war, Hurricane Ian), 40-year high inflation and a decline in capital to underpin underwriting activity
led to the firmest insurance pricing environment in decades, benefiting insurance company Lancashire Holdings Ltd.

Several IT stocks were impacted by industry-wide demand weakness. Among those were BizLink Holding, Primax Electronics and
AEM Holdings. Dowa Holdings, the Japanese nonferrous metals manufacturer, announced a quarter end miss, lowering full year
guidance on higher energy costs.

Portfolio Changes

To lower the Fund’s geopolitical risk, Taiwan’s King’s Town and Taiwan Union Technology were sold. Vtech, the maker of electronic
learning products, was exited as online competition usurped market share. Intertrust Group, the Netherlands-based international
trust company, was also sold. Capital was reallocated to CIE Automotive, the Spanish auto components manufacturer; Technip
Energies NV, a French engineering and tech company for the energy industry; and German discount brokerage firm, flatexDEGIRO.

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. We are starting to see savings dwindle and companies face higher costs and lower volumes
on slower consumer spending. As economic growth stagnates, we expect pricey high-growth stocks to suffer. At Polaris, we
maintain a 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 $0.5771 $0.0000 $0.0000
2021 $0.1450 $0.0000 $0.1995
2020 $0.5279 $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.