Pear Tree Polaris Foreign Value Small Cap Fund

For the Quarter ended March 31, 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 7.00% at net asset value compared to 4.81% for the Index.

Market Conditions and Investment Strategies

The Fund had absolute gains in 9 of 10 invested sectors, led by double-digit results in Industrials and Energy. Strong returns
in overweight sectors, including Consumer Discretionary, Consumer Staples and Utilities also added to outperformance.
Communication Services, the sole sector in negative territory, was hampered by lackluster results from Future Inc. At the country
level, most European holdings were up with France, Sweden, Ireland, Denmark and Germany contributing measurably, while Asian
results were mixed. The largest detractors were Norway and the U.K., where the Fund was overweight.

Technip Energies, a French energy engineering company, was the top contributor; the company was a new buy in the fourth
quarter of 2022. Technip had solid momentum in its New Energy order book, partnering with Baker Hughes and Shell on
energy construction that lower emissions. The company also landed sizeable project management/engineering awards with
Middle East oil companies. Among Industrials, Elis SA and Tecnoglass Inc. both posted gains in excess of 30%, marking another
consecutive quarter of impressive returns. French laundry firm Elis shared upbeat 2023 guidance, expecting to capitalize on the
post-pandemic reopening of hotel/office services in combination with its resilient hospital/uniform business. Tecnoglass released
strong quarterly results, concentrating on lucrative geographies (San Francisco, Texas and Florida); a strong supply chain helped
usurp business from its competitors.

Among detractors, Lancashire Holdings posted a loss in 2022 on higher catastrophes; however, forward-looking projections are
positive, backed by strong pricing barring above average losses. Canada’s goeasy was down when the federal government capped
the annual interest rate on loans at 35% from the previously allowable 47%. The company still expects earnings growth even
with this new policy. In Consumer Discretionary, Nature Holdings reported lower earnings on weak Korean domestic consumption
and costs related to new brand launches. Halfords Group, the U.K.’s largest bicycle retailer, issued a weak trading report, pointing
to labor shortages and cost pressures amid slack demand for higher-priced discretionary spends.

Portfolio Changes

During the quarter, the Fund exited Aecon Group, which was weighed down by issues at four large fixed-price legacy projects.
Nomad Foods lost its luster, as the cost-of-living crisis turned consumers from branded to private label foods; the stock was sold
on lower sales/volumes coupled with high debt. Capital was reallocated to existing holdings and new purchase France-based
Rubis, which distributes petroleum and LPG products in the Caribbean and North Africa. As a carbon-based company, Rubis
stock was discounted; however, the company has room for growth after actively expanding into the renewable energy space in
France and building out green partnerships.

Outlook

The torrid pace of inflation has slowed from late 2022 as supply bottlenecks and energy prices declined. Nevertheless, central
banks will continue their tightening monetary policies, albeit at smaller increments, for the foreseeable future, alluding to tight
labor markets, low unemployment and nominal wage growth. A slowdown is inevitable, the speed and gravity of which is still in
question considering the remarkably resilient markets. Recent travels have identified a number of attractively-priced small cap
stocks effectively weathering volatile conditions, ripe for growth in a market recovery.