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*
-14.25%

NAV*
$10.53

INCEPTION
February 6, 2017

MINIMUM INVESTMENT
$100,000

CUSIP
70472Q765

BENCHMARK
MSCI ACWI ex. US SMALL CAP

NET EXPENSE RATIO(1)
1.03%

GROSS EXPENSE RATIO(2)
1.13%

 

*as of 5/13/2022

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 5/13/2022
Quarterly
As Of 3/31/2022
1 Year
As Of 3/31/2022
3 Years
As Of 3/31/2022
5 Years
As Of 3/31/2022
10 Years
As Of 3/31/2022
Since Inception As Of
3/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-14.25% -6.11% -2.23% 8.54% 6.50% N/A 7.58% 1.13% 1.03%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
15.69% 6.74% 20.77% -18.81% 33.44% 2.75% -1.27% 6.85% 25.20% 27.52% -19.86%

Portfolio

as of March 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 22.00%
Equatorial Energia S.A. 2.70%
BizLink Holding, Inc. 2.30%
D'Ieteren S.A. 2.30%
Greencore Group plc 2.20%
Elite Material Co., Limited 2.20%
AEM Holdings Limited 2.10%
Vistry Group plc 2.10%
QinetiQ 2.10%
Thanachart Capital PCL 2.00%
Ringkjoebing Landbobank A/S 2.00%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Industrials 22.3
Financials 21.1
Consumer Discretionary 14.1
Information Technology 13
Consumer Staples 8.8
Materials 6.8
Utilities 4.4
Real Estate 3
Communication Services 10.00%
CASH + other assets (net) 6.4

Top Ten Country Allocations

Percentage Of Total Net Assets
United Kingdom 13.3
Taiwan 12.7
Japan 11.3
Ireland 5.6
Canada 5.2
Sweden 4.8
Norway 4.8
Thailand 4
Singapore 3.8
Denmark 3.4

Portfolio Characteristics

Net Assets $1,183,654,018
Number Of Holdings 70
Percentage in Top 10 Holdings 22.00%
Weighted Average Market Cap (Mil) $2,117.57
Annual Turnover 35.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 93.60%
Cash and Other Assets (Net) 6.40%

FOR THE QUARTER ENDED MARCH 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 (6.25%) at net asset value compared to (6.43%) for the Index.

Market Conditions and Investment Strategies

The Fund’s overweight and outperformance in Utilities, Financials and Industrials drove results for the quarter, while consumer
sectors eroded gains. These declines were macro-driven on concerns about consumers’ spending appetite in the face of rising
inflation. On a country level, the Fund benefitted most from holdings in developing countries, like Brazil, Thailand, Greece and
Indonesia. European and Scandinavian countries declined, with notable losses in the U.K., Italy and France.

Brazilian multi-utility company, Equatorial Energia, was markedly the top contributor to the Fund’s performance. Equatorial
announced strong fourth quarter 2021 results, with growth in volumes of distributed energy in select regions. In February 2022,
the company raised $532 million in an oversubscribed share offering, which financed the acquisition of renewable energy
generator, Echoenergia. Industrials rose on the back of BizLink Holding, a Taiwanese electronics component supplier, and QinetiQ
Group, the British multinational defense technology company. The Russia-Ukraine conflict spurred on European rearmament
considerations, boosting defense stocks industry-wide including QinetiQ. The company also announced a deal with the Royal
Navy for next generation electric warfare systems. Other contributors were spread throughout the portfolio. In Materials, Dowa
Holdings beat analysts’ forecasts on the back of environmental management and recycling business; the company raised profit
guidance and agreed to pay a special dividend. Among Financials, Thanachart Capital capitalized on a recovering Thai economy,
pointing to strength in its key insurance and leasing subsidiaries.

Double-digit returns from Nature Holdings Co and Samson Holding, as well as gains from Jumbo SA, could not offset losses
elsewhere in the Consumer Discretionary sector. Inchcape, the British multinational automotive distributor, announced impressive
2021 annual results, highlighting consumer demand and pricing power on vehicle supply shortages. Yet, the stock price dropped
with a market wary of ongoing demand metrics given economic uncertainty. Inchcape also committed to exiting its Russian retail
business (approximately 5% of profits), which further weighed down the stock. Halfords, the U.K. automotive and cycling retailer,
declined after reporting poor cycling division results, unable to replicate the success of the two-wheel transportation mode favored
early in the pandemic.

Portfolio Changes

The Fund sold nearly a half dozen stocks this quarter, most of which reached prescribed valuation limits. Several other stocks
were sold opportunistically, with an eye to de-risking the portfolio. Overall, the Fund sold Countryside Partnerships, Sankyu Inc.,
ABG Sundal Collier, Moneta Money Bank and Origin Enterprises. Money is expected to be reallocated to more attractively priced
investments in coming quarters.

Outlook

Faced with geopolitical upheaval, COVID-19 waves and supply chain disruptions, worldwide economic volatility will persist. We
continue to assess the portfolio, selling richly-valued stocks at a profit while reinvesting in attractively-priced companies, which
may do better in an inflationary environment. As a risk measure, we pared down exposure in certain countries that may be
tangentially affected by the Russian-Ukraine conflict. We believe all of these efforts will allow us to continue to outperform, as
we have done for the past few quarters.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.2138 $0.0000 $0.1995
2020 $0.5835 $0.0000 $0.0000
2019 $0.4360 $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, 2022 for all funds and share classes except Pear Tree Essex Environmental Opportunities Fund. Fee waivers and/or expense reimbursement for Pear Tree Essex Environmental Opportunities Fund and its share classes are in effect through August 31, 2022.

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.