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*
13.83%
NAV*
$15.06
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 5/22/2026
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 5/22/2026 |
Quarterly As Of 3/31/2026 |
1 Year As Of 3/31/2026 |
3 Years As Of 3/31/2026 |
5 Years As Of 3/31/2026 |
10 Years As Of 3/31/2026 |
Since Inception As Of 3/31/2026 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 13.83% | -2.19% | 11.90% | 5.43% | 2.34% | N/A | 6.75% | 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 March 31, 2026
Top Ten Holdings
| Percentage Of Total Net Assets | 39.40% |
|---|---|
| SOL S.p.A. | 5.10% |
| Cranswick plc | 4.50% |
| Kingboard Laminates Holdings, Ltd. | 4.10% |
| Sparebanken Norge | 4.00% |
| Yageo Corporation | 4.00% |
| Chailease Holding Co., Ltd. | 3.80% |
| Equatorial Energia S.A. | 3.80% |
| Macquarie Group Limited | 3.40% |
| JAC Recruitment Co., Ltd. | 3.40% |
| VSTECS Holdings Limited | 3.30% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Financials | 27.90% |
| Consumer Staples | 20.80% |
| Information Technology | 17.50% |
| Consumer Discretionary | 11.80% |
| Materials | 6.10% |
| Industrials | 4.30% |
| Health Care | 3.90% |
| Utilities | 3.80% |
| Communication Services | 2.20% |
| Cash and Other Assets (Net) | 1.70% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 62.40% |
|---|---|
| Hong Kong | 10.50% |
| Taiwan | 9.80% |
| Japan | 6.40% |
| Belgium | 6.50% |
| United Kingdom | 5.40% |
| China | 5.10% |
| Italy | 5.10% |
| France | 4.90% |
| South Africa | 4.40% |
| Thailand | 4.30% |
Portfolio Characteristics
| Net Assets | $64,877,205 |
|---|---|
| Number Of Holdings | 50 |
| Percentage in Top 10 Holdings | 39.40% |
| Weighted Average Market Cap (Mil) | $40,283.82 |
| Annual Turnover | 31.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 98.30%% |
| Cash and Other Assets (Net) | 1.70%% |
Commentary
For the Quarter ended March 31, 2026
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 (2.35%) at net asset value compared to (0.60%) for the Index.
Market Conditions and Investment Strategies
Sector performance was mixed, with Materials, Utilities, Health Care and Consumer Staples delivering strength, while Financials
and Consumer Discretionary dampened overall results. The portfolio’s absence of energy exposure and underweight in headline AI
semiconductor names created headwinds, partially offset by strong returns from component companies exposed to the same AI
demand via a different part of the value chain.
As referenced, standout contributors included IT component businesses, Kingboard Laminates and Sinbon Electronics. Kingboard
produces copper clad laminates used in the printed circuit boards that underpin high-powered AI and server chips, and is rolling out
fiberglass fabric materials in high demand. Sinbon projects strong growth throughout 2026 on the back of product needs from AI,
robotics and smart transport industries.
Norwegian banks outperformed on resilient energy-linked strength and cost efficiencies following industry consolidation. Norges
Bank held its policy rate at 4% into early 2026, ruling out near-term cuts, allowing banks to sustain higher net interest margins
while maintaining stable loan growth. Among other financials, Latin America’s Credicorp Ltd. had strong net interest margin
expansion on loan portfolio growth and lower funding costs. Krungthai Card PCL called for all-time high profits in early 2026,
driven by a recovery in card spending and strong asset quality.
Among other standouts: SOL SpA continued its multi-year run of robust earnings, with its European home care services division
driving growth beyond its core industrial gas business. Equatorial Energia also posted gains, benefiting from solid volume growth,
tariff adjustments, and lower bad-debt ratios, complemented by disciplined execution.
Canadian lender goeasy Ltd. declined after management uncovered significant deficiencies within its auto lending subsidiary,
LendCare Holdings, which revealed lower-than-expected collateral recovery rates in its auto/powersports portfolio. The resulting
write-downs and covenant pressures unsettled investors, despite continued resilience in goeasy’s core unsecured consumer
lending business. ALSO Holding AG posted guidance on growth that was below expectation, while concerns on AI disruption and
higher memory price might affect corporate IT spending. JAC Recruitment’s guidance on growth was also below expectation,
but management has been conservative on guidance historically. Zhongsheng Group Holdings’ gross margins on new car sales
continued to be pressured due to fierce competition among car OEMs; mortgage facilitation fees also significantly declined due to
regulation change.
Portfolio Changes
We purchased two healthcare positions during the quarter. Ipsen offers a strong drug development pipeline, meeting key drug
trial milestones. While its flagship product Somatuline faces patent expiration, generic manufacturers have struggled to replicate
it. Belgian healthcare company Fagron supplies pharma ingredients to compounders globally while also operating its own U.S.
compounding business, where demand grows. On the sell side, IT companies Capgemini, Neurones and Reply SpA were exited on
AI disruption concerns, and small appliance manufacturer Zhejiang Supor was sold given the weak Chinese consumer backdrop.
Outlook
We believe market volatility has opened the door to acquiring high-quality companies at attractive valuations. We expect that new
names will help diversify and balance the portfolio across both defensive and cyclical sectors. In essence, geopolitical tensions and
energy market uncertainty, while a source of risk, are equally a source of opportunity for disciplined, value-oriented investors.
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.
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.