Pear Tree Polaris Small Cap Fund

For the Quarter ended December 31, 2025

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 2.48% at net asset value compared to 2.19% for the Index.

Market Conditions and Investment Strategies

U.S. small cap equities posted three consecutive quarters of gains, with value stocks outperforming growth in the December quarter.
The Fund had double-digit gains in Health Care and Utilities, while outperforming in both consumer sectors, Information Technology
(IT), Financials, Utilities and Industrials. Dragging down the Energy sector, CVR Energy reported solid results but faced pushback about
renewable fuel obligations and normalized refining margins.

The Fund’s Health Care holdings contributed most to performance with Lantheus Holdings and Harmony Biosciences each posting
gains in excess of 25%. Lantheus announced robust earnings on the back of its flagship prostate cancer imaging agent Pylarify.
Harmony Biosciences advanced as the market gained confidence in the durability of the Wakix franchise.

Among Consumer Discretionary stocks, American Eagle Outfitters delivered strong quarterly results and raised its outlook on healthy
holiday season demand and brand momentum. Similarly, Abercrombie & Fitch had better-than-expected earnings, noting improved
performance in its Hollister brand. Conversely, Perdoceo Education dropped in sympathy with its peers as negative sentiment settled
across the for-profit education space.

Barbell returns characterized the Industrial sector. Acquisition target CSG Systems (see below) and Allison Transmission Holding ticked
higher, offset by lackluster results from Barrett Business Services and DNOW Inc. Investors lauded Allison on its closing of the Dana
Off-Highway acquisition; the deal materially expands Allison’s addressable markets and improves long-term growth visibility. Barrett’s
earnings pointed to margin pressure from workers’ compensation and rising operating costs. DNOW underperformed as investors
reacted to declining profitability and margin compression, which overshadowed relatively stable end-market demand.

In IT, MKS Inc. delivered on earnings and guidance, driven by accelerating AI demand across semiconductor and advanced electronics
end markets; investors also appreciated MKS’ efforts to sell its specialty chemical business and focus on core products. ePlus
outperformed as strong growth in higher-margin services drove margin expansion and earnings resilience. Despite satisfactory
revenues, Arrow Electronics declined due to ongoing margin compression and cautious guidance.

Lundin Mining was the big winner in an otherwise underwhelming Materials sector. The Canadian miner announced record thirdquarter
revenues, profiting from higher realized copper prices in an advantageous supply-demand environment. Lundin struck a deal
to sell Eagle Mine and Humboldt Mill to Talon Metals in exchange for a 20% stake in the U.S. pure-play nickel company. Among
detractors was Graphic Packaging, which reported softer packaging volumes on moderating consumer and foodservice demand.

Portfolio Changes

CSG Systems stock was sold at a healthy profit, as the customer experience tech company went private in a $2.9 billion acquisition
by Japan’s NEC Corporation. The Fund also exited Colony Bankcorp as the stock reached target valuation limits. Proceeds were
reinvested in current holdings and the new purchase of NMI Holdings, one of the top national mortgage insurance players with a
strong underwriting practice.

Outlook

We believe U.S. small-cap companies will perform well in 2026 as investors could pivot toward smaller, more cyclically-sensitive
companies (with strong fundamentals), shying away from the overvalued mega-cap tech names. This rotation is anticipated due to a
convergence of attractive valuations, earnings growth forecasts, and an economic environment of easing interest rates and domestic
tax policy tailwinds.