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



February 6, 2017







*as of 9/22/2023

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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


As Of 9/22/2023
As Of 6/30/2023
1 Year
As Of 6/30/2023
3 Years
As Of 6/30/2023
5 Years
As Of 6/30/2023
10 Years
As Of 6/30/2023
Since Inception As Of
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
9.97% 3.23% 13.50% 11.19% 2.96% N/A 5.63% 1.12% 1.02%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-17.26% 15.69% 6.74% 20.77% -18.81% 33.44% 2.75% -1.27% 6.85% 25.20% 27.52%


as of June 30, 2023

Top Ten Holdings

Percentage Of Total Net Assets 28.60%
Tecnoglass, Inc. 3.50%
Technip Energies N.V. 3.40%
Equatorial Energia S.A. 3.20%
Sanwa Holdings Corporation 3.10%
Elis S.A. 3.10%
Thanachart Capital PCL 2.60%
D'Ieteren S.A. 2.50%
Daicel Corporation 2.40%
Inchcape plc 2.40%
Glanbia plc 2.40%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Financials 22.5
Industrials 21.9
Consumer Discretionary 16.9
Information Technology 10.1
Materials 7.8
Utilities 7.1
Consumer Staples 6.3
Energy 3.3
Real Estate 1.4
Communication Services 1.1
CASH + other assets (net) 1.6

Top Ten Country Allocations

Percentage Of Total Net Assets
Japan 16.4
United Kingdom 14.9
France 10.4
Taiwan 5.5
Ireland 4.9
Sweden 4.9
Thailand 4.8
Norway 4.5
Singapore 3.7
Colombia 3.5

Portfolio Characteristics

Net Assets $994,684,266
Number Of Holdings 64
Percentage in Top 10 Holdings 28.60%
Weighted Average Market Cap (Mil) $2,891.36
Annual Turnover 18.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 98.40%
Cash and Other Assets (Net) 1.60%

For the Quarter ended June 30, 2023

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 3.17% at net asset value compared to 2.25% for the Index.

Market Conditions and Investment Strategies

The Fund benefitted from overweight positions in outperforming sectors (including Financials, Industrials and Utilities), partially
offset by lackluster consumer sectors. Future PLC, the sole holding in Communication Services, announced a profit miss that
dragged down the stock. At the country level, the Fund’s holdings in Japan, Brazil, Colombia, Taiwan, Canada, Norway and Thailand
positively contributed; select stocks from Sweden, the United Kingdom and Ireland detracted.

More than 90% of Financials were in absolute positive territory, led by Japan’s Mizuho Leasing Company Ltd. and two Canadian
companies, EQB Inc. and goeasy Ltd. EQB announced record quarterly earnings, maintained full year forecasts and increased its
dividend. Similarly, goeasy had record quarterly earnings with strong loan growth and stable credit costs.

In Industrials, architectural glass company, Technoglass, announced record first quarter 2023 revenues, gross profit and free
cash flow. Sanwa Holdings, the Japanese door/window shutter manufacturer, posted double-digit net sales growth in its North
American, European and other Asian markets, which more than mitigated lackluster results in Japan.

Among other portfolio standouts was Equatorial Energia SA, which is expected to benefit from Brazil’s concessions/utility
distribution renegotiations. Equatorial is a rumored participant in the restructuring of Light SA, while also eyeing the acquisition
of Enel Ceara, a Brazilian power distribution firm owned by Italy’s Enel SpA. Elite Material Holdings, the electronics company that
manufactures semiconductor laminates, gained ground on the hype surrounding AI hyperscale servers.

Consumer sectors were notable detractors, with Consumer Discretionary stocks like D’Ieteren Group and Vistry Group impacted by
slowing spending trends. One sector bright spot was Jumbo SA, the Greek toy-led retailer that sells quality goods at inexpensive
prices. This business model works well in the current environment, as consumers won’t forgo presents/gifts but may seek out
low-cost alternatives. Among staples, C&C Group declined as the U.K. and Ireland faced a cost-of-living crisis, dampening alcohol

Portfolio Changes

During the quarter, the Fund sold four companies, Swedish confectioner Cloetta AB, U.K. bicycle retailer, Halfords Group, and
two industrials, National Express Group and Tsubakimoto Chain. Capital was redeployed to companies we believe to have
better risk/return profiles, including a reinitiated position in Coats Group, an industrial thread manufacturer previously sold in
February 2021. We purchased U.K. based Computacenter on the thesis that European IT distributors/resellers have good growth
projections and operating leverage. Amundi was another new buy, as the European asset manager has a well-diversified product
portfolio, superb distribution and good investment portfolio performance.


Current market volatility has churned up a lot of investment opportunities in the small cap space. Interestingly, our research
has identified a very diversified investment set, with no one sector or country dominating our screens. We attribute this to a
multi-paced inflationary environment: China is in deflationary cycle; U.K. central banks battle upward inflation; India GDP is
plowing ahead unabated; Eurozone countries are weighed down by energy and staples prices; and the U.S. job market and wage
increases stand in opposition to slowing consumer spending



Dividend Short-Term Capital Gain Long-Term Capital Gain
2022 $0.6361 $0.0000 $0.0000
2021 $0.2138 $0.0000 $0.1995
2020 $0.5835 $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 (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, 2024.

2. 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.

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.