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 12/8/2023

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 12/8/2023
As Of 9/30/2023
1 Year
As Of 9/30/2023
3 Years
As Of 9/30/2023
5 Years
As Of 9/30/2023
10 Years
As Of 9/30/2023
Since Inception As Of
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
7.81% -5.72% 20.51% 6.16% N/A N/A 5.68% 1.23% 0.99%

Calendar Year

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
-19.19% 13.55% 13.71% N/A N/A N/A N/A N/A N/A N/A N/A


as of September 30, 2023

Top Ten Holdings

Percentage Of Total Net Assets 21.33%%
D'Ieteren S.A. 0.03%
Bravida Holding AB 0.02%
United Overseas Bank Limited 0.02%
Midea Group Co., Ltd. 0.02%
Toronto-Dominion Bank 0.02%
TISCO Financial Group 0.02%
SpareBank Nord-Norge 0.02%
Neurones S.A. 0.02%
Tri Chemical Laboratories Inc. 0.02%
Sparebanken Vest 0.02%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Consumer Discretionary 25.80%
Financials 24.40%
Information Technology 19.20%
Industrials 14.40%
Materials 8.30%
Consumer Staples 5.00%
Utilities 1.40%
Communication Services 0.60%
Cash and Other Assets (Net) 0.90%

Top Ten Country Allocations

Percentage Of Total Net Assets 68.50%
United Kingdom 10.80%
Canada 9.90%
Japan 8.10%
China 7.90%
Italy 6.30%
Australia 6.20%
France 5.60%
Sweden 5.00%
Taiwan 4.80%
Norway 3.90%

Portfolio Characteristics

Net Assets $26,712,447
Number Of Holdings 74
Percentage in Top 10 Holdings 21.33%%
Weighted Average Market Cap (Mil) $25,550.14
Annual Turnover 57.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 99.10%
Cash and Other Assets (Net) 0.90%%

For the Quarter ended September 30, 2023

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 (5.79%) at net asset value compared to (3.68%) for the Index.

Market Conditions and Investment Strategies

Consumer Staples had strong gains, led by AVI Ltd. Gains were offset by losses in overweight sectors including Consumer
Discretionary, Financials and Industrials. Importantly, a handful of second quarter 2023 Information Technology (IT) purchases
(including Computacenter PLC, Also Holding AG and Tri Chemical Laboratories) were among the top 10 performers this period.
At the country level, the Fund benefitted from absolute positive performance in Switzerland, Malaysia, Greece, Singapore, South
Africa, and Germany; select stocks from Sweden, China and France detracted.

Among Consumer Discretionary holdings, Zhongsheng Group and China Meidong Auto declined on a protracted Chinese
economic recovery. Canadian Tire’s retail sales were negatively impacted by a softening of consumer demand and a mix shift
towards more essential and value offerings. Bucking the “consumer weakness” trend was Accent Group, the Australian footwear
company gaining traction with a strong store roll-out. In Consumer Staples, AVI reported solid fiscal full-year earnings, pointing to
higher revenues and gross margins despite cost pressures.

In the IT sector, Swiss-based Also Holding was the top performer, recording strong first half 2023 results. The company
increased net sales and grew the cloud user business by 21%, as its efficient platform technology proved a value-add to its
customers. Japan’s Tri Chemical had lackluster earnings; however, the stock jumped on growth expectations as its specialty
gases are core to the semiconductor market. Computacenter had very robust half year results, with resilient demand and market
share gains.

Financials dragged on portfolio performance. Euronet Worldwide reported 11% revenue growth and higher operating profits
in the second quarter, but offered tempered guidance due to traveler transaction volumes. OSB Group booked a charge to its
income statement, as investors refinanced loans en-masse once teaser rates expired. Other underperformers included materials
company, Hansol Chemical Co., and industrial-based Bravida Holding AB.

Portfolio Changes

During the quarter, the Fund sold out of Tripod Technology Corp., Elite Material Co. and Sanwa Holdings on valuation. Valuation
also drove the sale of Jumbo SA, as the Greek specialty retailer noted booming sales in its airport shops. Next 15 Group was
sold over concerns about cash flow availability due to recent liability-rich acquisitions. The Fund re-purchased three companies
on recent market weakness; each was previously owned and sold due to high valuation (Future PLC, Interpump Group and
Valmet Oyj). Among other new buys were: Cranswick PLC, a U.K.-based poultry/pork producer with a competitive processed
food division; Aalberts, a Dutch engineering company with surface technologies for transportation, energy, construction and OEM
industries; and Reply, an Italian company that specializes in consulting, system integration and digital services.


Recent market volatility opened up an attractive stock pipeline; a number of high-quality companies on our research screens
have entered our target valuation range, creating purchase opportunities. In enhancing the risk/reward profile, we note that
almost all of the Fund’s portfolio companies have solid balance sheets, fairly impervious to higher interest rates. Many should
earn interest on their cash positions, and may begin to consider acquisitive growth strategies in coming quarters.


Dividend Short-Term Capital Gain Long-Term Capital Gain
2023 $0.1408 $0.0000 $0.0000
2022 $0.1988 $0.0000 $0.0000
2021 $0.1961 $1.0176 $0.4147

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 (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, 2024.

2. 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.

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.