Pear Tree Polaris International Opportunities Fund
The PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND provides investors with the opportunity to participate in the growth potential of companies predominantly located in developed foreign countries.
Investment Process
The Fund will generally own approximately 75 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 40,000 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 40 years of investment experience to the Fund.
Fund Overview
YTD RETURN*
19.58%
NAV*
$13.62
INCEPTION
January 30, 2019
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q757
BENCHMARK
MSCI ACWI ex US
NET EXPENSE RATIO(1)
1.41%
GROSS EXPENSE RATIO(2)
1.51%
*as of 10/24/2025
Investment Professionals
Sign up for Quarterly updates and White Papers.
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.
Bin Xiao, CFA
Jason Crawshaw
Performance
| YTD As Of 10/24/2025 |
Quarterly As Of 9/30/2025 |
1 Year As Of 9/30/2025 |
3 Years As Of 9/30/2025 |
5 Years As Of 9/30/2025 |
10 Years As Of 9/30/2025 |
Since Inception As Of 9/30/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 19.58% | 3.57% | 6.61% | 14.96% | 8.40% | N/A | 7.38% | 1.51% | 1.41% |
Calendar Year
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| -5.62% | 15.93% | -19.57% | 13.11% | 13.26% | N/A | N/A | N/A | N/A | N/A | N/A |
Portfolio
as of September 30, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 33.90% |
|---|---|
| SOL S.p.A. | 4.70% |
| Alibaba Group Holding Ltd. | 4.10% |
| Cranswick plc | 4.10% |
| ALSO Holding AG | 3.40% |
| Sparebanken Norge | 3.20% |
| Equatorial Energia S.A. | 3.10% |
| Neurones S.A. | 2.90% |
| Chailease Holding Co., Ltd. | 2.90% |
| D'Ieteren S.A. | 2.90% |
| Yageo Corporation | 2.70% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 25.40% |
| Information Technology | 20.90% |
| Consumer Discretionary | 17.60% |
| Consumer Staples | 13.10% |
| Materials | 7.20% |
| Industrials | 7.00% |
| Utilities | 3.10% |
| Health Care | 1.70% |
| Communication Services | 1.20% |
| Cash and Other Assets (Net) | 2.80% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 66.30% |
|---|---|
| China | 9.80% |
| France | 9.00% |
| Canada | 8.60% |
| Taiwan | 8.40% |
| Japan | 7.10% |
| United Kingdom | 5.80% |
| Italy | 5.60% |
| Switzerland | 4.90% |
| Belgium | 3.70% |
| Australia | 3.40% |
Portfolio Characteristics
| Net Assets | $69,967,951 |
|---|---|
| Number Of Holdings | 59 |
| Percentage in Top 10 Holdings | 33.90% |
| Weighted Average Market Cap (Mil) | $38,692.19 |
| Annual Turnover | 31.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 97.20% |
| Cash and Other Assets (Net) | 2.80% |
Commentary
For the Quarter ended September 30, 2025
The Pear Tree Polaris International Opportunities Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI ACWI ex USA Index (the “Index”). The Fund had a return of 3.57% at net asset value compared to 7.03% for the Index.
Market Conditions and Investment Strategies
The Fund outperformed in both Consumer Sectors and Utilities, further bolstered by double-digit gains in Materials. Yet returns trailed the benchmark due to lackluster results in Health Care and Communication Services. Top country contributions hailed from Asian economies (China, Hong Kong, Japan, Taiwan and Thailand) while a handful of European holdings (specifically in France, Belgium, and the U.K) detracted.
Alibaba Group topped portfolio performance, leveraging demand in its cloud computing and e-commerce businesses. Elsewhere in Consumer Discretionary, Japan’s used car dealership Nextage Co. continued to execute, posting strong profits. One notable sector offset was D’Ieteren Group, which had underwhelming half-year numbers; profit declined due to higher debt costs at subsidiary Belron and weak auto division performance.
A few notable standouts: Swiss chocolatier Barry Callebaut gained 25% despite reporting weak volume and downgrading full year guidance, indicative of a rebound from depressed valuation levels and signs of cocoa price stabilization. Lundin Mining Corp. had solid results with copper/gold production tracking to full year targets.
Information Technology had barbell returns with some of the top and bottom 10 performers. Increased demand for AI server components boosted Yageo Corp.’s sales, while its acquisition of Shibaura Electronics cleared Japanese FDI approvals. VSTECS Holdings saw net profit jump more than 30%, with strong growth in its three main business segments. Conversely, Capgemini SE, Also Holding and Neurones declined. Capgemini shares dipped after announcing the acquisition of WNS for $3.3 billion, as investors questioned demand for business process outsourcing. Neurones reported good organic growth, but margins deteriorated slightly in a challenged French economy.
Among other detractors were Financials, EQB Inc. and Chailease Holding Co. Ltd. Canada’s EQB Inc. had a disappointing quarter, with analysts voicing concerns about credit quality and profitability; new management countered, citing delinquency improvements Taiwan’s Chailease faced persistent macroeconomic weakness throughout Southeast Asia, while noting a sharp drop in its China leasing business profits, rising delinquency ratios and higher impairment losses.
Portfolio Changes
During the quarter, coffee company JDE Peet’s was sold at a healthy profit when the company accepted an all-cash takeover offer at a 20% premium from Keurig Dr Pepper. Taiwan retail chain Poya International was sold as its hardware division failed to meet growth projections. Sale proceeds were reallocated to existing holdings and the purchase of HD Hyundai Electric, as utility grid demand for electrical transformers is driving a multi-year backlog.
Outlook
Mega-cap AI companies have dominated headlines and indices, leaving all other industries in its wake. We are cautious about the AI frenzy, with valuations premised on sentiment rather than earnings. That is not to say that we aren’t willing to capitalize on tangential opportunities (Yageo and Alibaba are good examples) in the AI space, but will do so within a value mindset. Stripping AI from the equation unveils a weaker global economic picture, fraught with high inflation, moderating wage growth and geopolitical instability. As governments control inflation, negotiate tariffs and push stimulus, recovery should not be far behind. We believe we are positioned to capture that shift – investing in fundamentally strong companies (resilient cash flows, high demand) across many industries - with a clear target toward outperformance.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2024 | $0.2031 | $0.0000 | $0.0000 |
| 2023 | $0.0147 | $0.0000 | $0.0000 |
| 2022 | $0.1016 | $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.
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, 2026 for all funds.
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 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.