Pear Tree Polaris Small Cap Fund

The PEAR TREE POLARIS SMALL CAP FUND provides investors with the opportunity to participate in the growth potential of domestic small cap companies. A small cap company will generally be a company with a market capitalization from $250 million to $5 billion.

Investment Process

The Fund generally invests in domestic stocks with a market cap of up to $5 billion at the time of purchase. 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 industry.

Buy and Sell Discipline

The Fund uses proprietary models to rank publicly traded small cap companies on the basis of value and to narrow the universe down to 200 to 400 for further consideration. The Fund supplements the screening process by performing in-depth financial and fundamental analysis. Risk controls are also employed to prevent the Fund from concentrating its investments in any particular industry sector.

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

YTD RETURN*
-9.22%

NAV*
$24.11

INCEPTION
August 3, 1992

MINIMUM INVESTMENT
$2,500

CUSIP
70472Q401

BENCHMARK
Russell 2000

NET EXPENSE RATIO(1)
1.63%

GROSS EXPENSE RATIO(2)
1.63%

 

*as of 5/13/2022

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.
Sumanta Biswas, CFA
Bin Xiao, CFA
Jason Crawshaw

Performance

YTD
As Of 5/13/2022
Quarterly
As Of 3/31/2022
1 Year
As Of 3/31/2022
3 Years
As Of 3/31/2022
5 Years
As Of 3/31/2022
10 Years
As Of 3/31/2022
Since Inception As Of
3/31/2022
Total Gross Expense Ratio(1) Total Net Expense Ratio(2)
-9.22% -2.03% 2.89% 8.65% 6.07% 7.74% 9.27% 1.63% 1.63%

Calendar Year

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
24.23% -4.78% 23.50% -10.88% 6.42% 20.88% -1.48% -6.81% 40.21% 13.39% -4.53%

Portfolio

as of March 31, 2022

Top Ten Holdings

Percentage Of Total Net Assets 25.30
South Plains Financial, Inc. 2.80%
Dril-Quip, Inc. 2.70%
Colony Bankcorp, Inc. 2.60%
Allison Transmission Holdings, Inc. 2.60%
Barrett Business Services, Inc. 2.50%
Exco Technologies Limited 2.50%
Graphic Packaging Holding Co. 2.40%
CVR Energy, Inc. 2.40%
OFG Bancorp 2.40%
Cinemark Holdings, Inc. 2.40%

Sector Weightings

Percentage Of Total Net Assets 100.0%
Industrials 22.5
Financials 22.4
Information Technology 12.9
Consumer Discretionary 9.2
Energy 9.1
Materials 7.2
Health Care 6.9
Consumer Staples 4.2
Communication Services 2.4
CASH + other assets (net) 3.2

Top Ten Country Allocations

Percentage Of Total Net Assets 100.00%
United States 88.70%
Puerto Rico 4.50%
Canada 3.60%
CASH + other assets (net) 3.20%

Portfolio Characteristics

Net Assets $84,214,773
Number Of Holdings 61
Percentage in Top 10 Holdings 25.3
Weighted Average Market Cap (Mil) $3,322.29
Annual Turnover 33.00%

Portfolio Allocation

Percentage of Portfolio 100.0%
Equity Securities 96.8
Cash and Other Assets (Net) 3.2

FOR THE QUARTER ENDED MARCH 31, 2022

The Pear Tree Polaris Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the Russell 2000 Total Return Index (the “Index”). The Fund had a return of (2.03%) at net asset value compared to (7.53%) for the Index.

Market Conditions and Investment Strategies

Outperformance was due to the Fund’s Energy, Health Care and Communication Services holdings; cyclicals including Consumer
Discretionary and Information Technology (IT) detracted.

During the quarter, oil prices raced higher on the back of growing demand and tight supply. Supply proved even more tenuous
as sanctions halted Russian oil exports. Focus returned to domestic producers and refiners like Diamondback Energy, Dril-Quip
and CVR Energy, each of which posted heady gains. The Fund purchased out-of-favor, cheaply-price biotechnology stocks last
year on the premise that these fundamentally strong companies could execute strategic plans to build out product pipelines. The
thesis held true, with Harmony Biosciences, Pacira Biosciences and Supernus Pharmaceuticals reporting strong quarterly results
with commercial sales growth. Cinemark singlehandedly boosted the Communication Services sector. The theater operator
had a good earnings season, surging past Wall Street estimates to post its first quarterly profit since before the pandemic.
Blockbuster movies boosted results, while Cinemark sought to diversify its offerings, teaming up with ESPN to bring college
football playoffs to the big screen.

Consumer Discretionary stocks, including Crocs Inc. and Winnebago, dragged on performance. The U.S.-based casual footwear
company, Crocs reported exceptional annual results with revenues up 70% and margins at 30%. After record gains in 2021, the
company guided for lower margins in 2022 due to higher costs. Skepticism surrounded Crocs’ debt raising activities to acquire
a competitor. RV maker Winnebago retracted on concerns about higher gasoline prices and consumers’ appetite for big ticket
purchases. In IT, Puerto Rican electronic payment processor Evertec posted record results and announced expansion plans; yet,
the stock declined on consumer spending doubts.

Portfolio Changes

The Fund exited American Woodmark as the kitchen cabinet maker faced higher raw material prices and waning demand. RBB
Bancorp was sold after the CEO resigned following an internal investigation. Cash was reallocated to buy SLM Corp., NOV Inc.
and Sally Beauty Holdings. Private education loan provider SLM (previously Sallie Mae) is an inexpensive financial company with
a dominant market position. NOV Inc., which provides equipment and rigs for oil exploration/production, is expected to be a late stage
beneficiary of the current oil industry cycle. Sally Beauty, the distributor of professional beauty supplies and hair colors,
holds significant market share in both the wholesale and retail categories.

Outlook

Although geopolitical tensions, supply chain disruptions, rising inflation and COVID waves continue to roil U.S. markets, the Fund
has proven very resilient, continuing the pace of outperformance from the past few quarters. We are constantly assessing
the portfolio, seeking to ensure that our holdings not only weather the current climate, but also thrive in an inflationary period
accommodative to value stocks. As such, we are paring back on companies that might fall victim to rising inflation and dried up
stimulus measures, especially those in the consumer sectors. We will continue our buy/sell strategy, looking for opportunities to
upgrade both the quality and the valuation of the Fund portfolio.

Distributions

Dividend Short-Term Capital Gain Long-Term Capital Gain
2021 $0.1543 $0.6423 $1.4143
2020 $0.1568 $0.0000 $0.0000
2019 $0.1357 $0.0000 $1.8027

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.

Axiom International Investors began subadvising the Pear Tree Axiom Emerging Markets World Equity Fund December 8, 2018.

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, 2022 for all funds and share classes except Pear Tree Essex Environmental Opportunities Fund. Fee waivers and/or expense reimbursement for Pear Tree Essex Environmental Opportunities Fund and its share classes are in effect through August 31, 2022.

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 Axiom Emerging Markets World Equity
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.