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*
3.63%
NAV*
$13.71
INCEPTION
January 30, 2019
MINIMUM INVESTMENT
$100,000
CUSIP
70472Q732
BENCHMARK
MSCI ACWI ex US
NET EXPENSE RATIO(1)
0.96%
GROSS EXPENSE RATIO(2)
1.13%
*as of 2/6/2026
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 2/6/2026 |
Quarterly As Of 12/31/2025 |
1 Year As Of 12/31/2025 |
3 Years As Of 12/31/2025 |
5 Years As Of 12/31/2025 |
10 Years As Of 12/31/2025 |
Since Inception As Of 12/31/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 3.63% | -1.62% | 18.11% | 9.33% | 3.70% | N/A | 7.34% | 1.13% | 0.96% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 18.11% | -5.14% | 16.63% | -19.19% | 13.55% | 13.71% | N/A | N/A | N/A | N/A | N/A |
Portfolio
as of December 31, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 36.90% |
|---|---|
| SOL S.p.A. | 4.80% |
| Cranswick plc | 4.20% |
| Neurones S.A. | 3.90% |
| Yageo Corporation | 3.70% |
| Sparebanken Norge | 3.70% |
| ALSO Holding AG | 3.70% |
| Capgemini SE | 3.40% |
| Equatorial Energia S.A. | 3.30% |
| D'Ieteren S.A. | 3.20% |
| Chailease Holding Co., Ltd. | 3.00% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 25.00% |
| Information Technology | 23.40% |
| Consumer Staples | 16.40% |
| Consumer Discretionary | 15.50% |
| Materials | 5.80% |
| Utilities | 3.30% |
| Health Care | 2.60% |
| Industrials | 2.60% |
| Communication Services | 2.20% |
| Cash and Other Assets (Net) | 3.20% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 64.20% |
|---|---|
| France | 13.00% |
| Taiwan | 8.30% |
| China | 7.90% |
| Italy | 5.80% |
| Switzerland | 5.60% |
| United Kingdom | 5.30% |
| Belgium | 5.20% |
| Canada | 5.00% |
| Hong Kong | 4.30% |
| Japan | 3.80% |
Portfolio Characteristics
| Net Assets | $67,059,695 |
|---|---|
| Number Of Holdings | 52 |
| Percentage in Top 10 Holdings | 36.90% |
| Weighted Average Market Cap (Mil) | $39,281.05 |
| Annual Turnover | 31.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 96.80% |
| Cash and Other Assets (Net) | 3.20% |
Commentary
For the Quarter ended December 31, 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 (1.66%) at net asset value compared to 5.11% for the Index.
Market Conditions and Investment Strategies
Underperformance was largely attributable to an overweight in an underwhelming Consumer Discretionary sector. The sector
was among the largest laggards globally, affected by rising inflation and a decline in consumer confidence. At the same time,
the Fund was underweight the quarter’s small-cap outperformers — particularly AI/semiconductor supply chain companies
and developed market banks. From a country perspective, the Fund saw notable gains from France, South Africa, South Korea,
Norway and India, offset by losses in China, Canada, Thailand and Hong Kong.
For the quarter, the Fund outperformed in Consumer Staples, led by AVI Ltd and Anheuser-Busch Inbev. AVI posted strong
quarterly revenues, noting growth in its Entyce and Snackworks divisions, while cost savings improved the bottom line. Anheuser-
Busch InBev stock jumped on good revenue growth, with key beer brands expanding outside of home markets. Information
Technology (IT) was the second largest contributor, led by Yageo Corp, which completed a tender offer for Shibaura Electronics.
Capgemini Group advanced 15% after announcing better-than-expected quarterly revenues; demand is driven by cloud, data
and AI, with a strong focus on efficiency and optimization. In Financials, Sparebanken Norge continued to execute in a very
stable Norwegian economy; India’s Muthoot Finance capitalized on record-high gold prices, surge in secured loans and strategic
business expansion; and First Rand benefitted from encouraging economic conditions in South Africa.
Consumer Discretionary holdings declined, with China’s Alibaba Group, China Meidong Auto Holdings and Zhongsheng Group
Holdings suffering double-digit losses. E-commerce juggernaut Alibaba had impressive quarterly revenues, pointing to growth in
its cloud division and “one-hour delivery” e-commerce business; however, the company faced profitability pressure due to the
aggressive discounting in the aforementioned instant retail space as well as significant AI spending. Financials were the second
largest sector detractor, due to goeasy Ltd and Muangthai Capital. Canada’s goeasy fell after an unsubstantiated short report
alleged accounting manipulation, while Muangthai reported good results but pessimism persisted about the Thai economy. IT
company VSTECS Holdings delivered record-breaking performance in the third quarter of 2025, driven by robust demand in AIrelated
infrastructure and public sector projects. The stock decline was due to profit taking.
Portfolio Changes
During the quarter, the Fund sold a dozen companies, and reinvested proceeds into five new companies: SEB SA, PDD Holdings,
Reply SPA, AIA Group and Jazz Pharmaceuticals. Overall, the Fund has become more concentrated over the last 12-18 months,
whittled down to approximately 50 of our highest-conviction ideas. We are rebalancing the portfolio across multiple dimensions:
shifting the market cap mix toward a more balanced approach, reducing significant cyclical sector overweighting and trimming
exposure to European names.
Outlook
Our investment approach remains disciplined and focused on what we can measure today: strong cash flows from quality “picks
and shovels” companies selling essential products/services and good management teams actively creating shareholder value
and strategic reinvestment. In essence, we are not chasing trends, distant promises or future cash flows — we are seeking to
identify situations where attractive valuations meet genuine business momentum.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2025 | $0.2546 | $0.0000 | $0.0000 |
| 2024 | $0.3765 | $0.0000 | $0.0000 |
| 2023 | $0.0212 | $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.