Pear Tree Polaris Small Cap Fund

For the Quarter ended June 30, 2026

The Pear Tree Polaris Small Cap Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the Russell 2000 Total Return Index (the “Index”). The Fund had a return of 13.44% at net asset value compared to 21.49% for the Index.

Market Conditions and Investment Strategies

The Russell 2000 Index surged in the quarter, the eighth-biggest quarterly move in its history. A meaningful chunk of that return
came from Bloom Energy and Credo Technology (not in the Fund portfolio), both of which rose ~100% before finally being rebalanced
out of the Index at the June reconstitution. Beyond those distortions, the broader rally was speculative and growth-over-value, with
unprofitable companies outperforming profitable ones; the Fund lagged in this environment.

In Information Technology, Arrow Electronics and Avnet Inc. benefited from a recovery in electronics distribution, as order volumes
rebounded, lead times normalized, and book-to-bill ratios improved. MKS gained on robust earnings and a pre-announced secondquarter beat, reaching our target and prompting an exit at a substantial profit. Among Industrials, Covenant Logistics climbed on
a projected freight cycle uptick despite underwhelming headline results hurt by winter weather and fuel costs. Investors lauded
Acuity Brands’ rotation from a traditional lighting business into a fast-growing, higher-margin “intelligent building” business. Applied
Industrial Technologies rallied after reporting 6% organic sales growth and record EBITDA in late April, prompting raised guidance
and analyst price-target increases. In Financials, Northeast Bank outperformed as its SBA lending build-out held up better than
expected. Puerto Rico-based OFG Bancorp rose after reporting strong earnings, alongside a dividend increase and completed $100
million buyback. SLM Corp. gained on impending changes to federal Grad PLUS and Parent PLUS programs; it is positioned to
capture incremental private loan demand. In Health Care, Lantheus Holdings advanced on strong quarterly earnings, FDA approval
of PYLARIFY TruVu cementing its radiopharmaceutical diagnostics leadership, and a potential $7 billion takeover bid from PE-backed
Curium Pharma.

Conversely, CVR Energy and Diamondback Energy were both hurt by oil price whipsaws tied to shifting U.S.-Iran interim ceasefire
agreements. CVR was also pressured by higher Renewable Identification Number compliance costs, which nearly doubled and added
materially to its refining margin squeeze. In Consumer Discretionary, Perdoceo Education Corp. fell on a 2% enrollment decline and
higher marketing spend to offset record graduation levels. The Buckle, Inc. weakened as investors focused on margin compression
from higher occupancy, payroll, and freight costs, plus rising inventory and softer men’s denim sales, which made the first quarter
earnings beat look less durable.

Portfolio Changes

In addition to the profitable MKS sale, we exited Wabash National Corp., Winnebago Industries, and KForce, Inc., as deteriorating
demand and competitive dynamics reduced our conviction in the underlying fundamentals. New buys reflect a shift toward periphery
infrastructure and AI-adjacent build-out: Belden Inc. (network cabling/IoT, boosted by its Ruckus acquisition), Itron Inc. (utility grid
software supporting AI-driven power demand), as well as Aura Minerals, the Fund’s first gold miner.

Outlook

Looking to the second half of 2026, we expect performance to hinge less on momentum and more on company-specific execution
— operating leverage, balance sheets and free cash flow generation, aided by policy tailwinds working through Industrials, Financials,
and Health Care. As of early July, a potential rotation is in the mix: markets are starting to reward fundamentals over speculative
names. If that continues, the Fund’s positioning should serve it well — even if benchmark-relative tracking stays choppy given how
narrowly this year’s gains have been concentrated.