Pear Tree Polaris Foreign Value Small Cap Fund

For the Quarter ended March 31, 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 (3.21%) at net asset value compared to (0.38%) for the Index.

Market Conditions and Investment Strategies

While starting the year with positive momentum, international small caps were hindered by a strengthening U.S. dollar and higher
energy prices from the Iran conflict. During the quarter, the Fund outperformed in Utilities, Consumer Staples, Industrials and a
handful of other defensive sectors; gains were offset by underwhelming returns in Information Technology (“IT”), Materials and
Health Care. At the country level, the Fund captured strong contributions from Norway, Japan, Brazil and Ireland, while Canada
was the most notable detractor.

Kanematsu Corp. was a notable outperformer, due to sustained momentum in its core IT services and mobile retail operations.
Equatorial Energia also posted gains, benefiting from solid volume growth, tariff adjustments, and lower bad-debt ratios,
complemented by disciplined execution. The recent sale of its transmission assets freed up meaningful capital, positioning
Equatorial for efficient strategic redeployment. Glanbia PLC continued to benefit from strong demand for whey protein and
functional nutrition products, with quarterly performance driven by the rapid uptake of GLP-1 weight-loss medications and broader
adoption of proactive health management, especially in Asia. Redes Energeticas Nacionais, the Portuguese electric and gas utility,
delivered strong quarterly growth driven by rising electricity demand (much wrought from AI needs) and temporary tax rebates.
Ongoing investments in grid upgrades and renewables are expected to support future growth. Norwegian banks outperformed on
resilient energy-linked strength and cost efficiencies following industry consolidation. Norges Bank held its policy rate at 4% into
early 2026, ruling out near-term cuts, allowing banks to sustain higher net interest margins while maintaining stable loan growth.

Canadian lender goeasy Ltd. declined after management uncovered significant deficiencies within its auto lending subsidiary,
LendCare Holdings, which revealed lower-than-expected collateral recovery rates in its auto/powersports portfolio. The resulting
write-downs and covenant pressures unsettled investors, despite continued resilience in goeasy’s core unsecured consumer
lending business. Sopra Steria Group came under pressure amid heightened investor caution around potential AI disruption in the
IT sector, even though its financial performance remained relatively stable. Zhongsheng Group Holdings’ gross margins on new car
sales continued to be pressured due to fierce competition among car OEMs; mortgage facilitation fees also significantly declined
due to regulation change.

Portfolio Changes

We executed profitable sales of French asset manager Amundi and Japan’s electrical construction company Kraftia Corp., which
reached its target valuation. New purchases included Arkema Group, where we see value in its geographically balanced niche
chemical/materials operations and relative protection from European energy price fluctuations, thanks to access to French
nuclear power. We also initiated a position in Wah Lee, a Taiwanese specialty distributor with exposure to semiconductor and
electronics end markets through its portfolio of specialty gases and engineering plastics.

Outlook

We continue to pursue high-quality opportunities offering attractive risk-adjusted returns, with a focus on diversification and
a measured tilt toward defensive sectors amid ongoing geopolitical uncertainty. We had previously been underweight in
“defensives”. However as volatility has caused market dislocations; we are identifying a broader range of companies now at
compelling valuations, and intend to balance the portfolio accordingly.