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

YTD RETURN*
-30.81%

NAV*
$9.34

INCEPTION
January 30, 2019

MINIMUM INVESTMENT
$2,500

CUSIP
70472Q757

BENCHMARK
MSCI ACWI ex US

NET EXPENSE RATIO(1)
1.63%

GROSS EXPENSE RATIO(2)
1.63%

 

*as of 9/28/2022

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.
Sumanta Biswas, CFA
Bin Xiao, CFA
Jason Crawshaw

Performance

YTD
As Of 9/28/2022
Quarterly
As Of 6/30/2022
1 Year
As Of 6/30/2022
3 Years
As Of 6/30/2022
5 Years
As Of 6/30/2022
10 Years
As Of 6/30/2022
Since Inception As Of
6/30/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-30.81% -18.44% -19.76% 2.14% N/A N/A 4.74% 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

Portfolio

as of June 30, 2022

Top Ten Holdings

Percentage Of Total Net Assets 20.30%
D'Ieteren S.A. 2.40%
Alimentation Couche-Tard Inc. 2.30%
Collins Foods Limited 2.30%
NEXTAGE Co., Ltd. 2.20%
Bravida Holding AB 2.00%
Midea Group Co., Ltd. 1.90%
Enghouse Systems Limited 1.80%
Alibaba Group Holding Ltd. 1.80%
Interpump Group S.p.A. 1.80%
POYA International Co., Ltd. 1.80%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 20.5
Financials 19.4
Materials 18.7
Industrials 10.8
Communication Services 10.1
Information Technology 8.4
Health Care 5.4
Consumer Staples 3.5
Real Estate 1.5
Cash and Other Assets (Net) 1.7

Top Ten Country Allocations

Percentage Of Total Net Assets 69.40%
Taiwan 11.60%
United Kingdom 11.10%
Canada 8.30%
Japan 8.20%
China 6.80%
Australia 6.40%
France 5.60%
Sweden 4.30%
Italy 4.10%
Mexico 3.00%

Portfolio Characteristics

Net Assets $21,563,233
Number Of Holdings 68
Percentage in Top 10 Holdings 20.30%
Weighted Average Market Cap (Mil) $19,863.37
Annual Turnover 51.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 98.20%%
Cash and Other Assets (Net) 1.80%%

FOR THE QUARTER ENDED JUNE 30, 2022

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 (18.44%) at net asset value compared to (13.54%) for the Index.

Market Conditions and Investment Strategies

Defensive sectors rotated back into favor after the last few quarters of cyclical sector gains; unfortunately, the Fund was
significantly underweight in defensive sectors. Financials, Information Technology and Consumer Discretionary declined most. At
the country level, the portfolio was boosted by relatively strong results from China, Greece and Singapore; the United Kingdom
was the largest detractor. Weakness in most foreign currencies relative to the U.S. dollar also impacted Fund results.

China showed signs of recovery in June 2022 as COVID-19 restrictions eased, and the Shanghai Stock Exchange started to trend
upward after May lows. In this context, the Fund’s Chinese holdings were in absolute positive territory, led by Zhejiang Supor,
Midea Group and Zhongsheng Group. Cookware maker, Zhejiang, reported solid quarterly returns, with a nearly 10% rise in
total sales. Auto dealer, Zhongsheng, celebrated two developments: 1) the company joined the Hang Seng Index (Hong Kong) on
June 13 and 2) China halved the purchase tax on small-engine cars to boost demand. Other top performers included Greece’s
Jumbo SA and Taiwan’s BizLink Holding Inc.

Concerns about ownership and liquidity hurt the stock price of VIB Vermoegen, the German real estate holding company. The
company reported strong quarterly results, and doubled the net asset value per share after a recent appraisal of its real estate
portfolio. Yet, the stock price declined on lower profits associated with DIC Group’s acquisition of a majority stake of VIB.
Weakening demand for electronic devices and a COVID-induced plant shutdown in Shanghai hurt Elite Material Co. Italian home
appliance brand, De’Longhi SpA, lost more than 30% as inflation and higher prices impacted purchasing power; end consumers
forsook discretionary buys in favor of staples. A number of Financials, including Sparebanken Vest, FirstRand and Muangthai
Capital, dropped in excess of 20% during the quarter.

Portfolio Changes

The Fund consolidated its chemical company holdings in South Korean, selling Soulbrain and boosting the position in Hansol
Chemical. The Fund also exited German chemical distribution company Brenntag. New buys included Future PLC, a U.K.
publishing company with a diversified business model and notable growth strategy; Singapore commercial bank, United
Overseas; and U.K. concrete landscape manufacturer, Marshalls PLC. British foodservice company, SSP Group, was repurchased
(sold in 2020) as airport and railway concessions saw more foot traffic in a post-COVID travel frenzy. The same premise held
true for the purchase of DFDS, as the world’s largest ferry operator resumed routes and added to its schedule.

Outlook

Recessionary concerns caused an indiscriminate sell-off of cyclical stocks across myriad geographies. Irrational selling behavior
punished a number of our portfolio companies, which reported solid operating results in the first half of 2022 and upbeat annual
guidance. We expect a strong recovery in these holdings, when knee-jerk reactions are replaced by sound re-evaluation on
fundamental merits. In the interim, our intent is to capitalize on the general macroeconomic volatility to buy more attractivelypriced companies.

Distributions

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.