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 35 years of investment experience to the Fund.

Fund Overview



January 30, 2019







*as of 11/25/2022

Investment Professionals

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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


As Of 11/25/2022
As Of 9/30/2022
1 Year
As Of 9/30/2022
3 Years
As Of 9/30/2022
5 Years
As Of 9/30/2022
10 Years
As Of 9/30/2022
Since Inception As Of
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-18.81% -9.66% -27.92% -0.35% N/A N/A 1.55% 1.63% 1.63%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
13.11% 13.26% N/A N/A N/A N/A N/A N/A N/A N/A N/A


as of September 30, 2022

Top Ten Holdings

Percentage Of Total Net Assets 18.70%
D'Ieteren S.A. 2.10%
Collins Foods Limited 2.00%
Bravida Holding AB 2.00%
Alimentation Couche-Tard Inc. 2.00%
NEXTAGE Co., Ltd. 1.90%
Sparebanken Vest 1.90%
Equatorial Energia S.A. 1.70%
Zhongsheng Group Holdings 1.70%
Zhejiang Supor Co. 1.70%
JAC Recruitment Co., Ltd. 1.70%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 25.70%
Financials 18.20%
Information Technology 17.40%
Industrials 16.00%
Materials 6.90%
Communication Services 3.90%
Consumer Staples 3.50%
Utilities 1.70%
Real Estate 1.60%
Cash and Other Assets (Net) 5.10%

Top Ten Country Allocations

Percentage Of Total Net Assets 66.00%
United Kingdom 10.20%
Japan 9.30%
Taiwan 7.80%
Canada 7.50%
China 6.40%
Australia 6.20%
France 5.50%
Italy 5.50%
Sweden 4.50%
Mexico 3.10%

Portfolio Characteristics

Net Assets $20,111,781
Number Of Holdings 69
Percentage in Top 10 Holdings 18.70%
Weighted Average Market Cap (Mil) $4.00
Annual Turnover 51.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 94.90%
Cash and Other Assets (Net) 5.10%

For the Quarter ended September 30, 2022

The Pear Tree Polaris International Opportunities Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the MSCI ACWI ex USA Index (the “Index”). The Fund had a return of (9.66%) at net asset value compared to (9.80%) for the Index.

Market Conditions and Investment Strategies

The Fund outperformed in the vast majority of sectors, driven by Industrials, Utilities and Consumer Staples. Information
Technology and Consumer Discretionary detracted. At the country level, the Fund posted positive gains in Japan, Brazil, India,
Indonesia and Peru. The U.K.’s economic scheme met with skittish investors and a currency depreciation; most U.K. stocks fell on
the news. Holdings in China also underwhelmed, as the country suffers from COVID lockdowns, softer residential real estate and
slower GDP growth.

Industrial sector gains were led by JAC Recruitment Co., the Japanese staffing firm, which recorded impressive six-month results
ended June 2022. Revenue was up 24% versus the comparable prior year period, with demand for workers strong especially
in the domestic recruitment division. The sole holding in Utilities, Equatorial Energia, was up after announcing the acquisition of
Brazilian electricity distributor Celg-D. Canada’s Alimentation Couche-Tard Inc. gained on fiscal quarter end results, with higher
net earnings, increasing merchandise and service revenues and good fuel margins on successful cost controls. Muthoot Finance
Ltd., the largest gold loan non-banking financial institution in India, had middling quarterly results. Yet Muthoot stock was
resilient, with investors looking at gold as a hedge against recession risk. In contrast, Muangthai Capital lost ground during the
quarter as the Thailand motorcycle financing company saw consumer loan originations slow.

The Consumer Discretionary sector was the largest detractor to portfolio performance, with a smattering of stocks in the top and
bottom 10 of the portfolio. Nextage Co. was the best contributor, as the Japanese used car dealership announced strong first
half results on same stores sales growth and increased its full-year forecast. Poya International, the Taiwanese cosmetics retailer,
saw consumers return to its retail stores post COVID. Double-digit gains from both NEXTAGE and Poya couldn’t offset losses
elsewhere in the sector. Among Chinese companies, Zhongsheng Group Holdings reported lackluster first half results, while
Alibaba Group’s e-commerce was weak on a slowing local economy. The U.S. delisting risk was an overhang on Alibaba’s stock,
with a few big players selling out of Chinese internet companies.

Portfolio Changes

Bunzl was sold when it met our valuation target; the timing was fortuitous as we had concerns about Bunzl’s forward operating
margins due to higher operating costs and property cost inflation. Cash from the sale was reallocated to two investments with
more compelling valuations and defensive business models: SOL SpA, an Italian industrial gas/medical service company and
Fullcast Holdings, a temporary staffing firm out of Japan.


Macro-economic conditions we expect will remain challenging over the next few quarters; however, we sought to position the
Fund to weather a recession. Nearly every company in the portfolio has a strong balance sheet; some of these well-capitalized
companies may likely engage in M&A, acquiring competitors that will enhance their book of business. Volatility opens up an
ever-larger pipeline of attractive-priced investments; we intend to capitalize on market downturns to purchase fundamentally
strong stocks with growth potential in a global recovery.


Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.1554 $1.0176 $0.4147
2020 $0.0000 $0.0913 $0.0000
2019 $0.0057 $0.0328 $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, 2023.

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.