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*
17.73%
NAV*
$13.41
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 8/20/2025
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.
Bin Xiao, CFA
Jason Crawshaw
Performance
| YTD As Of 8/20/2025 |
Quarterly As Of 6/30/2025 |
1 Year As Of 6/30/2025 |
3 Years As Of 6/30/2025 |
5 Years As Of 6/30/2025 |
10 Years As Of 6/30/2025 |
Since Inception As Of 6/30/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 17.73% | 11.91% | 12.35% | 9.84% | 9.63% | N/A | 7.10% | 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 June 30, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 34.30%% |
|---|---|
| SOL S.p.A. | 4.60% |
| Cranswick plc | 4.50% |
| ALSO Holding AG | 3.90% |
| Neurones S.A. | 3.40% |
| D'Ieteren S.A. | 3.40% |
| Equatorial Energia S.A. | 3.00% |
| Sparebanken Norge | 2.90% |
| EQB Inc. | 2.90% |
| Chailease Holding Co., Ltd. | 2.90% |
| Capgemini SE | 2.80% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 24.40% |
| Information Technology | 20.90% |
| Consumer Discretionary | 16.40% |
| Consumer Staples | 14.40% |
| Industrials | 7.20% |
| Materials | 6.70% |
| Utilities | 3.00% |
| Health Care | 1.50% |
| Communication Services | 1.10% |
| Cash and Other Assets (Net) | 4.40% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 67.60% |
|---|---|
| France | 9.40% |
| Canada | 8.60% |
| Taiwan | 8.50% |
| China | 8.40% |
| Japan | 7.80% |
| United Kingdom | 6.30% |
| Switzerland | 6.10% |
| Italy | 5.20% |
| Belgium | 3.90% |
| Germany | 3.40% |
Portfolio Characteristics
| Net Assets | $68,281,974 |
|---|---|
| Number Of Holdings | 61 |
| Percentage in Top 10 Holdings | 34.30%% |
| Weighted Average Market Cap (Mil) | $25,624.04 |
| Annual Turnover | 31.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 95.60% |
| Cash and Other Assets (Net) | 4.40% |
Commentary
For the Quarter ended June 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 11.91% at net asset value compared to 12.30% for the Index.
Market Conditions and Investment Strategies
While the Fund outperformed in Materials, Industrials, Utilities and both consumer sectors, it trailed in Health Care as well as Information Technology (“IT”) and Financials (among the largest Fund weightings). Top country contributions included Italy, Japan, Canada, Taiwan and the U.K., partially offset by negative returns in China, Thailand, the U.S. and Sweden.
No overarching sector themes dominated for the quarter; in fact, the majority of the top 10 holdings were all from different industries. Italy’s SOL SpA gained more than 40% after reporting healthy quarterly sales, with notable gains in the technical gas and home care divisions (portable oxygen, etc.). D’Ieteren Group had an upbeat capital markets day, alluding to good projections in its auto glass and auto parts businesses. U.K. protein supplier Cranswick expanded capacity and processing facilities, while taking market share from competitors. Australia’s Macquarie Group posted strong full-year profits, up 5% from fiscal year
2024, on business origination and underlying income growth within its various banking and asset management divisions. Two IT companies added measurably: ALSO Holding AG had a solid quarter, exceeding guidance for both revenue and EPS. Much of this was attributed to ALSO’s aggressive acquisitive (Westcoast partnership) and organic (cloud platform, AI digital experiences) strategies. Tri Chemical Laboratories, which supplies semiconductor manufacturing gases, announced strong financial performance for the quarter, while offering an optimistic outlook through to 2026.
A weak local economy and rising global trade risks dampened consumer spending in China; companies catering to that demographic suffered including the likes of Alibaba Group, Zhongsheng Group and Zhejiang Supor. Even luxury goods company LVMH was down as the high-end Chinese buyer started to curtail discretionary spending. Among other detractors, French pharma Sanofi disappointed as news hit on May 30th that its COPD pipeline drug succeeded in one Phase 3 trial, but failed in a second, throwing FDA approval timeline into doubt. With cocoa prices reaching record levels, chocolatier Barry Callebaut
struggled to rein in rising costs coupled with overall volume declines.
Portfolio Changes
During the quarter, Games Workshop Group and Valmet Oyj were sold at a profit as each reached upper valuation limits. Capital was redeployed to purchase coffee conglomerate JDE Peets NV at an attractive valuation, mispriced due to market concerns over pricing/volume; Volution Group PLC, a U.K.-based HVAC/ventilation supplier; and beer producer Anheuser-Busch InBev, which is tapping burgeoning emerging markets. Accent Group was sold in 2024, as it reached our projected targets; when the company
dropped into undervalued territory again, we decided to repurchase as Accent begins work with Frasers Group to launch Sports Direct in Australia and New Zealand.
Outlook
Tariff concerns, rising U.S. debt levels, and slower growth projections are pushing investors toward attractive options in Europe and emerging markets. Add in foreign exchange impact on the back of a weak USD, and international equities become even more appealing. On this backdrop, valuation opportunities can start to narrow. Thankfully, Polaris has been investing internationally for more than 30 years, and can continue to pinpoint a diverse universe of opportunities.
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.