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*
17.51%
NAV*
$15.50
INCEPTION
January 30, 2019
MINIMUM INVESTMENT
$2,500
CUSIP
70472Q757
BENCHMARK
MSCI ACWI ex US
NET EXPENSE RATIO(1)
1.44%
GROSS EXPENSE RATIO(2)
1.54%
*as of 8/14/2026
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 8/14/2026 |
Quarterly As Of 6/30/2026 |
1 Year As Of 6/30/2026 |
3 Years As Of 6/30/2026 |
5 Years As Of 6/30/2026 |
10 Years As Of 6/30/2026 |
Since Inception As Of 6/30/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 17.51% | 23.60% | 22.93% | 12.28% | 5.50% | N/A | 9.11% | 1.54% | 1.44% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 17.59% | -5.62% | 15.93% | -19.57% | 13.11% | 13.26% | N/A | N/A | N/A | N/A | N/A |
Portfolio
as of June 30, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 45.70% |
|---|---|
| Kingboard Laminates Holdings, Ltd. | 8.40% |
| Yageo Corporation | 7.30% |
| VSTECS Holdings Limited | 4.20% |
| Chailease Holding Co., Ltd. | 4.00% |
| Jerónimo Martins SGPS, SA | 4.00% |
| Cranswick plc | 3.90% |
| Equatorial Energia S.A. | 3.70% |
| Sparebanken Norge | 3.70% |
| JAC Recruitment Co., Ltd. | 3.40% |
| AVI Limited | 3.10% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Information Technology | 26.40% |
| Financials | 26.00% |
| Consumer Staples | 21.60% |
| Consumer Discretionary | 8.90% |
| Industrials | 4.50% |
| Utilities | 3.70% |
| Health Care | 3.50% |
| Communication Services | 1.80% |
| Materials | 1.40% |
| Cash and Other Assets (Net) | 2.20% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 66.00% |
|---|---|
| Hong Kong | 15.10% |
| Taiwan | 13.30% |
| Belgium | 6.10% |
| Japan | 5.80% |
| Thailand | 4.90% |
| United Kingdom | 4.80% |
| South Africa | 4.60% |
| Portugal | 4.00% |
| Brazil | 3.70% |
| Norway | 3.70% |
Portfolio Characteristics
| Net Assets | $63,399,760 |
|---|---|
| Number Of Holdings | 46 |
| Percentage in Top 10 Holdings | 45.70% |
| Weighted Average Market Cap (Mil) | $63,224.98 |
| Annual Turnover | 46.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 97.80%% |
| Cash and Other Assets (Net) | 2.20%% |
Commentary
For the Quarter ended June 30, 2026
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 23.60% at net asset value compared to 14.70% for the Index.
Market Conditions and Investment Strategies
Markets were dominated by an AI-and-semiconductor-driven rally that extended deep into the supply chain, while geopolitical
tension in the Middle East fueled energy price swings and trading activity. The Fund outperformed in a handful of sectors, with
only Utilities and Consumer Discretionary in absolute negative territory. From a country perspective, Asian economies led the way
(Taiwan, Hong Kong, South Korea), but Chinese consumer demand remained soft.
The Fund delivered standout performance this quarter, most notably in Information Technology (“IT”) holdings positioned across
the AI supply chain. Kingboard Laminates Holding and Yageo Corp., both upstream suppliers of materials used in circuit boards
and electronic components, benefited as AI-driven demand tightened capacity and lifted pricing. Samsung Electronics rode strong
demand for both commodity and high-bandwidth memory (HBM) chips, hitting record highs following the distribution of 12-layer
HBM4E samples. Beyond technology, Macquarie Group Ltd. capitalized on elevated oil-market volatility tied to the Iran conflict,
which boosted trading activity in its Commodities and Global Markets division, alongside continued strength in asset management.
Anheuser-Busch InBev SA also stood out, posting its first quarter of organic volume growth in years — its first since 2023 —
powered by core brands like Corona and Michelob and a lift from World Cup-related demand in the U.S., Mexico, and Brazil. In
financials, KrungThai Card PCL rallied on Thailand’s economic stabilization, evidenced by its latest earnings.
Performance underwhelmed in the Consumer Discretionary sector. China Meidong Auto Holdings and Zhongsheng Group Holdings,
both auto dealers, were squeezed by weak local consumer demand and softening Western premium auto demand. Chinese
e-commerce platform, PDD Holdings Inc., faced tighter regulatory scrutiny, with PDD’s pivot toward heavier supply-chain and privatelabel investment also pushing out the timeline for earnings growth.
Other detractors included: Jerónimo Martins, the Portuguese grocery group behind Poland’s Biedronka chain, declined as a Polish
deflationary pricing environment pressured its core business, even as its Colombian operations continued to grow strongly. AIA
Group Ltd. was hampered by tighter scrutiny from Beijing on cross border capital flows, including limits on mainland customer
account openings in Hong Kong.
Portfolio Changes
The team added two positions: Cosmecca, a leading Korean beauty manufacturer benefiting from strong K-beauty demand in both
Asia and the West, and Finnish industrial technology company Valmet Oyj, a name the Fund previously owned and opportunistically
repurchased after a pullback. On the sell side, the Fund trimmed Consumer Discretionary holdings including LVMH Moet Hennessey,
Accent Group Ltd. and SEB SA, while Financials GoEasy Ltd. and Euronet Worldwide were sold on weak structural growth stories.
We also sold HD Hyundai Electric, which had run up substantial gains.
Outlook
The Fund continues to rebalance, favoring upstream, AI-adjacent names with genuine pricing power over richly valued direct AI
plays, while trimming positions that have re-rated sharply. That capital is being redeployed toward more resilient technology names
and non-IT businesses with stronger growth and better valuations, including more defensive names positioned for higher oil prices
and softer consumer spending. Overall, we’re leaning into opportunity as market leadership broadens, while staying disciplined on
valuation.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $0.2009 | $0.0000 | $0.0000 |
| 2024 | $0.2031 | $0.0000 | $0.0000 |
| 2023 | $0.0147 | $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.
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, 2027 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.