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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3790
Pear Tree Funds
(Exact name of registrant as specified in charter)
55 Old Bedford Road, Lincoln, MA 01773
(Address of principal executive offices)
Willard L. Umphrey
Pear Tree Advisors, Inc.
55 Old Bedford Road, Lincoln, MA 01773
(Name and address of agent for service)
Registrant’s telephone number, including area code: (781) 676-5900
Date of fiscal year end: March 31
Date of reporting period: April 1, 2011 through September 30, 2011
ITEM 1. REPORTS TO SHAREOWNERS.
PEAR TREE FUNDS
Pear Tree Columbia Small Cap Fund
Pear Tree Columbia Micro Cap Fund
Pear Tree Quality Fund
Pear Tree Emerging Markets Fund
Pear Tree Polaris Foreign Value Fund
Pear Tree Polaris Foreign Value Small Cap Fund
SEMI-ANNUAL REPORT
September 30, 2011
TABLE OF CONTENTS
President’s Letter 1
Fund Expenses 2
Portfolio Manager Commentaries 4
Pear Tree Columbia Small Cap Fund 4
Pear Tree Columbia Micro Cap Fund 7
Pear Tree Quality Fund 9
Pear Tree Emerging Markets Fund 11
Pear Tree Polaris Foreign Value Fund 13
Pear Tree Polaris Foreign Value Small Cap Fund 16
Schedules of Investments 19
Pear Tree Columbia Small Cap Fund 19
Pear Tree Columbia Micro Cap Fund 26
Pear Tree Quality Fund 31
Pear Tree Emerging Markets Fund 35
Pear Tree Polaris Foreign Value Fund 43
Pear Tree Polaris Foreign Value Small Cap Fund 47
Statements of Assets and Liabilities 52
Statements of Operations 56
Statements of Changes in Net Assets 58
Financial Highlights 64
Notes to Financial Statements 76
Information for Shareholders 91
Management Contract and Advisory Contract Approval 92
Service Providers back cover
This report must be preceded or accompanied by a current Pear Tree Funds prospectus for individuals who are not current shareholders of the Funds. If you are not a shareholder of a Pear Tree Fund, you should read the prospectus carefully before investing because it contains more complete information on the Pear Tree Funds’ investment objectives, risks, charges and expenses. Please consider this information carefully. For a prospectus and other information, visit www.peartreefunds.com or call (800) 326-2151.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the Pear Tree Funds nor U.S. Boston Capital Corporation is a bank.
PEAR TREE FUNDS
Dear Fellow Shareholder,
We are pleased to provide you with the Pear Tree Funds’ Annual Report for the six months ended September 30, 2011 and to update you on recent market conditions and the performance of the Pear Tree Funds.
For current performance information, please visit our website at www.peartreefunds.com. We thank you for your continued confidence in the Pear Tree Funds. Please feel free to e-mail us at feedback@peartreefunds.com or call us at 800-326-2151 with any questions or for assistance on your account.
Sincerely,
Willard Umphrey
President and Chairman
Any statements in this report regarding market or economic trends or the factors influencing the historical or future performance of the Pear Tree Funds are the views of Fund management as of the date of this report. These views are subject to change at any time based upon market and other conditions, and Fund management and the sudadvisors to the Funds disclaim any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any Pear Tree Fund. Any references to specific securities are not recommendations of such securities and may not be representative of any Pear Tree Fund’s current or future investments.
Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
PEAR TREE FUNDS
FUND EXPENSES
We believe it’s important for Fund shareholders to have a clear understanding of fund expenses and the impact expenses have on investment returns. The following is important information about each Fund’s Expense Example, which appears below.
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution (12b-1) fees (on Ordinary Shares) and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on $1,000 invested at the beginning of the period and held for the entire period from April 1, 2011 to September 30, 2011.
Actual Expenses
The first line for each Share Class for each Fund provides information about actual account returns and actual expenses. You may use the information in this line, together with the amount you invested for that Fund and Share Class, to estimate the expenses that you paid over the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000, then multiply the result by the number under the heading “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line for each Share Class for each Fund shows you hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and hypothetical expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing expenses of investing in the Fund with the ongoing expenses of other funds. To do so, compare the Fund’s 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
2
Expense Example for the 6 months ended September 30, 2011
Pear Tree Fund | Share Class | Total Return Description | Beginning Account Value 4/1/11 | Ending Account Value 9/30/2011 | Annualized Expense Ratio | Expenses Paid* 4/1/11 – 9/30/2011 |
Small Cap | Ordinary | Actual | $1,000.00 | $ 797.20 | 1.65% | $ 7.40 |
Hypothetical | $1,000.00 | $1,016.77 | 1.65% | $ 8.30 | ||
Institutional | Actual | $1,000.00 | $ 797.80 | 1.40% | $ 6.29 | |
Hypothetical | $1,000.00 | $1,018.01 | 1.40% | $ 7.06 | ||
Quality | Ordinary | Actual | $1,000.00 | $ 968.40 | 1.51% | $ 7.41 |
Hypothetical | $1,000.00 | $1,017.47 | 1.51% | $ 7.59 | ||
Institutional | Actual | $1,000.00 | $ 970.40 | 1.00% | $ 4.93 | |
Hypothetical | $1,000.00 | $1,019.99 | 1.00% | $ 5.06 | ||
Emerging Markets | Ordinary | Actual | $1,000.00 | $ 780.00 | 1.76% | $ 7.84 |
Hypothetical | $1,000.00 | $1,016.19 | 1.76% | $ 8.88 | ||
Institutional | Actual | $1,000.00 | $ 781.00 | 1.53% | $ 6.81 | |
Hypothetical | $1,000.00 | $1,017.35 | 1.53% | $ 7.71 | ||
Foreign Value | Ordinary | Actual | $1,000.00 | $ 800.40 | 1.62% | $ 7.29 |
Hypothetical | $1,000.00 | $1,016.91 | 1.62% | $ 8.16 | ||
Institutional | Actual | $1,000.00 | $ 801.10 | 1.37% | $ 6.16 | |
Hypothetical | $1,000.00 | $1,018.16 | 1.37% | $ 6.90 | ||
Foreign Value | Ordinary | Actual | $1,000.00 | $ 815.00 | 1.67% | $ 7.58 |
Small Cap | Hypothetical | $1,000.00 | $1,016.64 | 1.67% | $ 8.43 | |
Institutional | Actual | $1,000.00 | $ 816.20 | 1.39% | $ 6.33 | |
Hypothetical | $1,000.00 | $1,018.03 | 1.39% | $ 7.04 | ||
Micro Cap | Ordinary | Actual | $1,000.00 | $ 949.00 | 2.00% | $ 0.96 |
Hypothetical | $1,000.00 | $1,015.02 | 2.00% | $10.06 | ||
Institutional | Actual | $1,000.00 | $ 918.00 | 2.00% | $ 1.15 | |
Hypothetical | $1,000.00 | $1,014.98 | 2.00% | $10.09 |
* | “Expenses Paid” for each Fund share class relating to actual or hypothetical returns, other than for Micro Cap, is the amount equal to the product of (a) that Fund’s and Share Class’ average account value for the six-month period ended September 30, 2011, multiplied by (b) the corresponding “Annualized Expense Ratio” multiplied by (c) the fraction 183/366 (which reflects the actual number of days in the most recent fiscal half-year and the actual number of days in the year). “Expenses Paid” for each Micro Cap share class relating to actual or hypothetical returns is the amount equal to the product of (a) that Fund’s and Share Class’ average account value for the six-month period ended September 30, 2011, multiplied by (b) the corresponding “Annualized Expense Ratio” multiplied by (c) for Ordinary Shares, the fraction 18/366 (which reflects the 18-day period beginning on the date that Ordinary Shares were first sold and ending on the last day of the period covered by this report) and, for Institutional Shares, the fraction 22/366 (which reflects the 22-day period beginning on the date that Institutional Shares were first sold and ending on the last day of the period covered by this report). |
PEAR TREE COLUMBIA SMALL CAP FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $90.3 Million | |
Number of Companies | 164 | |
Price to Book Ratio | 2.7 | |
Price to Earnings Ratio | 14.8 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 1.65% | 1.40% |
Ticker Symbol | USBNX | QBNAX |
Investment Commentary
For the semi-annual period ended September 30, 2011, the Pear Tree Columbia Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the Russell 2000 Index. During that period, the Fund achieved a return of –20.28% at net asset value compared to –23.12% for the Index.
Market Conditions and Investment Strategies
Early in the year the economy appeared to be in transition from recession to recovery. Equity markets were riding high and by the end of April, 2011 the Russell 2000 Index hit a new recovery high. Then, as if by clockwork, the old adage “sell in May and go away” was sounded and profit taking began in earnest. By mid-June, 2011 the Index had fallen by more than 10% but surprisingly rallied back, recovering most of the losses by early July 2011. Then on August 5, 2011, when Standard & Poor’s downgraded the credit rating of U.S. Treasury bonds from AAA to AA+, equity markets around the world experienced their most volatile week since the 2008 financial crisis began. Stocks prices continued to deteriorate following reports that the U.S. economy had weakened significantly, the debt crisis in Europe was worsening, and that China’s economy was beginning to slow. Small cap stocks were hit hard in September, 2011 falling that month by over 11%. Investors were stunned by the reversal of fortune and were left wondering and worrying what would happen next.
Our strategy of buying high quality companies, which tends to protect capital in down markets, helped us to outperform the Russell 2000 Index for the period which was notable, but the absolute losses suffered were still great. Within the Russell 2000 Index, all sectors lost ground with Energy and Materials the worst performers, posting losses of over 37% and 33%, respectively. Information Technology, Industrials, Consumer Discretionary and Financials were all down that month by more than 20%, while Health Care and Telecommunications Services each fell by over 15%. Utilities was the best performing sector, declining just over 0.5% for the six month period ended September 30, 2011.
Analyzing our performance versus the benchmark, we outperformed in Industrials and Consumer Discretionary by 1.5% and 1.1% respectively, primarily from stock selection. We also outperformed by over 0.7% in both Energy and Information Technology, again due to stock selection. We underperformed by 0.8% in Utilities as a result of no participation in this best performing, but small weighted Index sector. Our stock selection in Health Care also detracted 0.6% from relative return for the period.
Our top individual stock contributors included defensive plays Diamond Foods Inc., which gained over 43%, and Waste Connections Inc., which rose over 17% for the six month period. Our biggest detractors included Hersha Hospitality Trust which fell 42%, and Compass Minerals International Inc., down 29% for the period.
Portfolio Changes
The Financials, Consumer Discretionary, Consumer Staples, and Telecommunication Services sector weightings increased during the sixth month period ended September 30, 2011, while Industrials, Energy, and Materials declined. Changes in all other sectors were not material.
4
PEAR TREE COLUMBIA SMALL CAP FUND
A Look Ahead
Clearly the economy and the equity markets are seeing difficult times. While it is not certain that the U.S. economy is in a recession, investor sentiment has changed. Our focus continues to be on uncovering companies with unique positions and strong management teams that will perform well over an economic and market cycle. We continue to be positive about the long-term prospects for our companies while being opportunistic about taking advantage of some depressed valuations we currently see in the market.
The Fund is co-managed by Robert von Pentz, CFA, and Rhys Williams, CFA of Columbia Partners, L.L.C. Investment Management.
5
PEAR TREE COLUMBIA SMALL CAP FUND
Top 10 Holdings
Percentage of total net assets | 38.4% |
Acacia Research Corporation—Acacia Technologies | 4.5% |
Entertainment Properties Trust | 4.4% |
Core Laboratories N.V. | 4.3% |
SBA Communications Corporation, Class A | 4.1% |
Alliance Data Systems Corporation | 4.0% |
Gardner Denver, Inc. | 3.7% |
Compass Minerals International, Inc. | 3.6% |
First Cash Financial Services, Inc. | 3.6% |
SXC Health Solutions Corp. | 3.2% |
Hersha Hospitality Trust | 3.0% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Financials | 18.8% |
Information Technology | 18.2% |
Industrials | 14.8% |
Consumer Discretionary | 11.9% |
Health Care | 11.3% |
Energy | 7.5% |
Consumer Staples | 5.7% |
Materials | 5.1% |
Telecommunication Services | 4.2% |
Cash and Other Assets (Net) | 2.5% |
Value of a $10,000 Investment
Pear Tree Small Cap (PTSC) Ordinary Shares vs.
Russell 2000 Index
Pear Tree Small Cap | ||||||
Small Cap | Small Cap | Russell 2000 | Russell 2000 | |||
Period | % Return | Cumulative | % Return | Cumulative | ||
2001 | ||||||
Q3 2001 | $ 10,000.00 | $ 10,000.00 | ||||
Q4 2001 | 14.91 | 11,491.00 | 21.09 | 12,109.00 | ||
2002 | ||||||
Q1 2002 | (2.30) | 11,226.71 | 3.98 | 12,590.94 | ||
Q2 2002 | (13.58) | 9,702.12 | (8.35) | 11,539.59 | ||
Q3 2002 | (15.40) | 8,207.99 | (21.40) | 9,070.12 | ||
Q4 2002 | (1.05) | 8,121.81 | 6.16 | 9,628.84 | ||
2003 | ||||||
Q1 2003 | (2.20) | 7,943.13 | (4.49) | 9,196.51 | ||
Q2 2003 | 17.36 | 9,322.06 | 23.42 | 11,350.33 | ||
Q3 2003 | 9.86 | 10,241.21 | 9.08 | 12,380.94 | ||
Q4 2003 | 13.47 | 11,620.70 | 14.52 | 14,178.65 | ||
2004 | ||||||
Q1 2004 | 9.51 | 12,725.83 | 6.26 | 15,066.23 | ||
Q2 2004 | (0.70) | 12,636.75 | 0.47 | 15,137.04 | ||
Q3 2004 | (0.30) | 12,598.84 | (2.86) | 14,704.13 | ||
Q4 2004 | 13.34 | 14,279.53 | 14.09 | 16,775.94 | ||
2005 | ||||||
Q1 2005 | (2.18) | 13,968.23 | (5.34) | 15,880.10 | ||
Q2 2005 | 4.45 | 14,589.82 | 4.32 | 16,566.12 | ||
Q3 2005 | 6.43 | 15,527.94 | 4.69 | 17,343.07 | ||
Q4 2005 | 0.31 | 15,576.08 | 1.13 | 17,539.05 | ||
2006 | ||||||
Q1 2006 | 11.66 | 17,392.25 | 13.94 | 19,983.99 | ||
Q2 2006 | (0.96) | 17,225.29 | (5.02) | 18,980.80 | ||
Q3 2006 | 0.35 | 17,285.58 | 0.44 | 19,064.31 | ||
Q4 2006 | 9.06 | 18,851.65 | 8.90 | 20,761.04 | ||
2007 | ||||||
Q1 2007 | 3.33 | 19,479.41 | 1.95 | 21,165.88 | ||
Q2 2007 | 4.23 | 20,303.39 | 4.42 | 22,101.41 | ||
Q3 2007 | (0.28) | 20,246.54 | (3.09) | 21,418.47 | ||
Q4 2007 | (6.72) | 18,885.97 | (4.58) | 20,437.51 | ||
2008 | ||||||
Q1 2008 | (12.51) | 16,523.34 | 9.90 | 22,460.82 | ||
Q2 2008 | 2.42 | 16,923.20 | 0.58 | 22,591.09 | ||
Q3 2008 | (14.96) | 14,391.49 | (1.11) | 22,340.33 | ||
Q4 2008 | (33.47) | 9,574.66 | (26.12) | 16,505.04 | ||
2009 | ||||||
Q1 2009 | (8.71) | 8,740.71 | (14.95) | 14,037.53 | ||
Q2 2009 | 17.42 | 10,263.34 | 20.68 | 16,940.50 | ||
Q3 2009 | 17.75 | 12,085.08 | 19.28 | 20,206.62 | ||
Q4 2009 | 5.65 | 12,767.89 | 3.88 | 20,990.64 | ||
2010 | ||||||
Q1 2010 | 10.40 | 14,095.75 | 8.85 | 22,848.31 | ||
Q2 2010 | (9.73) | 12,724.23 | (9.92) | 20,581.76 | ||
Q3 2010 | 12.59 | 14,326.21 | 11.29 | 22,905.44 | ||
Q4 2010 | 13.12 | 16,205.81 | 16.25 | 26,627.58 | ||
2011 | ||||||
Q1 2011 | 5.84 | 17,152.23 | 7.94 | 28,741.81 | ||
Q2 2011 | (1.66) | 16,867.50 | (1.61) | 28,279.06 | ||
Q3 2011 | (18.94) | 13,672.80 | (21.87) | 22,094.43 |
Average Annual Total Returns
3Q 2011 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date | |
Ordinary Shares | –18.94% | –20.28% | –4.56% | –4.58% | 3.18% | 8.90% | 08/03/92 |
Institutional Shares1 | –18.89% | –20.22% | –4.34% | –4.31% | 3.58% | 8.13% | 01/06/93 |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact the Funds at (800) 326-2151.
This table shows how the Fund would have performed each year if its actual (or cumulative) returns had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares. When assessing performance, investors should consider both short- and long-term returns.
6
PEAR TREE COLUMBIA MICRO CAP FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $0.7 Million | |
Number of Companies | 96 | |
Price to Book Ratio | 2.4 | |
Price to Earnings Ratio | 11.5 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 2.00% | 2.00% |
Ticker Symbol | PTFMX | MICRX |
Investment Commentary
For the period ended September 30, 2011 the Pear Tree Columbia Micro Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the Russell Micro Cap Index (the “Index”). During that period, the Fund achieved a return of –5.10% at net asset value compared to –8.66% for the Index.
Market Conditions and Investment Strategies
Watching the stock market during this period was like watching a train wreck in slow motion. The train was travelling along gaining speed mid-year and the scenery, corporate earnings, was a sight to behold. July, 2011 wasn’t a bad month for equity markets but the train suddenly began to lose steam. On August 5, 2011, Standard & Poor’s downgraded the credit rating of U.S. Treasury bonds from AAA to AA+. Stock markets around the world then experienced their most volatile week since the 2008 financial crisis began. The train suddenly felt out of control and the passengers were beginning to worry. Markets deteriorated further in August and September 2011 following reports that the economy had weakened significantly, the debt crisis in Europe was worsening, and that China’s economy was beginning to slow. The six-month period ended September 30, 2011 concluded with investors wondering just where this train is headed.
Smaller cap stocks were hard hit in the selloff. Our strategy of buying a basket of diversified, quantitatively attractive companies helped mitigate the downside, but the absolute losses suffered were still great. Within the Russell Microcap Index, all sectors lost ground during the period covered by this report with Energy and Materials the worst performers posting losses of over 16% and 13%, respectively. Information Technology, Industrials and Consumer Discretionary were all down more than 7%. Utilities was the best of the worst, declining less than 1% for the period.
Our best area of outperformance came from Health Care where security selection added 0.5% of relative return. Sector allocation was also beneficial as we were underweight in four of the five sectors that trailed the benchmark. We conceded about 0.5% of relative return due to our stock selection in Consumer Discretionary. Overall, security selection hurt the portfolio by approximately 1% during the reporting period.
The reporting period is unusual because the Fund’s inception was only about three weeks before the end of the period ended September 30, 2011. There are two aspects of a truncated reporting period we would highlight. First, transaction costs had more impact than we anticipate they will have going forward as we deployed cash for initial purchases. Excluding transaction costs, our measures indicate the portfolio holdings performed in-line with the benchmark. Second, the nature of quantitative strategies used by the subadviser to manage the Fund’s assets is that they are expected to add alpha over the longer term. We are confident in the prospects of the Fund, but it is difficult to draw any conclusions based on the Fund’s limited history.
A Look Ahead
Clearly the economy and the equity markets are seeing difficult times. Pessimism is pervasive and things appear to be bleak. However, there is a saying in the financial world that goes: “Every recession sows the seeds of its own recovery.” If history is any guide this may bode well in the intermediate term for the micro caps. This asset class typically flourishes towards the later part of an economic contraction in anticipation of an imminent recovery, and economic sign posts indicate this phase may be near on the horizon
7
PEAR TREE COLUMBIA MICRO CAP FUND
Top 10 Holdings
Percentage of total net assets | 12.5% |
IDT Corporation | 1.8% |
Continucare Corporation | 1.7% |
Hi-Tech Pharmacal Co., Inc. | 1.2% |
Renaissance Learning, Inc. | 1.2% |
BioScrip, Inc. | 1.1% |
U.S. Physical Therapy, Inc. | 1.1% |
Echo Global Logistics, Inc. | 1.1% |
The Ensign Group, Inc. | 1.1% |
Medifast, Inc. | 1.1% |
Walker & Dunlop, Inc. | 1.1% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Financials | 21.5% |
Industrials | 17.9% |
Health Care | 16.0% |
Information Technology | 15.6% |
Consumer Discretionary | 11.5% |
Materials | 4.7% |
Consumer Staples | 2.5% |
Telecommunication Services | 1.8% |
Energy | 1.7% |
Cash and Other Assets (Net) | 6.8% |
Performance information for Pear Tree Columbia Micro Cap Fund (″Value of a $10,000 Investment″ and ″Average Annual Total Returns″) is not included because the Fund only accepted its first investors on September 7, 2011.
8
PEAR TREE QUALITY FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $69.8 Million | |
Number of Companies | 78 | |
Price to Book Ratio | 3.1 | |
Price to Earnings Ratio | 12.2 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 1.51% | 1.00% |
Ticker Symbol | USBOX | QGIAX |
Investment Commentary
For the semi-annual period ended September 30, 2011, the Pear Tree Quality Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, S&P 500 (the “Index”). During that period, the Fund achieved a return of –3.16% at net asset value compared to –13.78% for the Index.
Market Conditions and Investment Strategies
The Fund’s subadviser currently chooses securities for the Fund by periodically selecting a mutual fund (the “Target Portfolio”) and monitoring the Target Portfolio’s holdings. The Fund’s investment adviser, at the direction of the investment manager, rebalances the Fund’s portfolio to correspond to the Target Portfolio’s most recent holdings as publicly reported. From April 1, 2011 to September 30, 2011, the Fund’s Ordinary Shares, when compared to the Target Portfolio, had a tracking error of 0.28%.
Over the previous six months, the Consumer Staples sector was the largest positive contributor to the Fund’s performance. The fact that the Fund has no position in the Financial sector also provided strong outperformance relative to the benchmark. The Fund’s overweight positions in the Healthcare and Information Technology sectors also contributed to outperformance.
The greatest detractor to performance came from the Utilities sector where the underweighting negatively affected relative performance. Other detractors were sector allocations in Telecommunications Services and Consumer Discretionary.
Portfolio Changes
We expect the Fund to have a relatively low turnover rate given the historical stability and relatively low turnover rate of the current Target Portfolio.
For the six-month period ended September 30, 2011, the Fund rebalanced the holdings twice to replicate the publicly disclosed holdings of the current Target Portfolio. The two rebalances resulted in the sale of two Consumer Discretionary positions. Also as a result of the rebalances, the Fund opened new positions in four Consumer Staples companies, five Healthcare companies and one Technology company.
A Look Ahead
For the foreseeable future, the Fund’s investment manager expects the Target Portfolio to remain the same. For more information on the selection of the Target Portfolio(s), please see the Fund’s Prospectus.
The Fund’s target portfolio is GMO Quality Funds III (GQETX) and the Fund is managed by Robert von Pentz, CFA of Columbia Partners, L.L.C. Investment Management.
9
PEAR TREE QUALITY FUND
Top 10 Holdings
Percentage of total net assets | 45.2% |
Johnson & Johnson | 6.1% |
Microsoft Corporation | 5.7% |
Philip Morris International, Inc. | 5.3% |
Oracle Corporation | 4.5% |
Cisco Systems, Inc. | 4.5% |
The Coca-Cola Company | 4.5% |
Pfizer, Inc. | 4.0% |
Apple, Inc. | 3.9% |
Wal-Mart Stores, Inc. | 3.6% |
Procter & Gamble Company | 3.1% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Consumer Staples | 31.1% |
Information Technology | 27.5% |
Health Care | 26.0% |
Energy | 11.2% |
Consumer Discretionary | 2.3% |
Industrials | 1.3% |
Telecommunication Services | 0.0% |
Cash and Other Assets (Net) | 0.6% |
Value of a $10,000 Investment
Pear Tree Quality (PTQ) Ordinary Shares vs.
S&P 500 Index
Pear Tree Quality | ||||||
S&P 500 | S&P 500 | |||||
Period | % Return | Cumulative | % Return | Cumulative | ||
2001 | ||||||
Q3 2001 | $ 10,000.00 | $ 10,000.00 | ||||
Q4 2001 | 15.18 | 11,518.00 | 10.69 | 11,069.00 | ||
2002 | ||||||
Q1 2002 | (3.31) | 11,136.75 | 0.28 | 11,099.99 | ||
Q2 2002 | (14.22) | 9,553.11 | (13.40) | 9,612.59 | ||
Q3 2002 | (13.50) | 8,263.44 | (17.28) | 7,951.54 | ||
Q4 2002 | 5.65 | 8,730.32 | 8.44 | 8,622.65 | ||
2003 | ||||||
Q1 2003 | (5.05) | 8,289.44 | (3.15) | 8,351.03 | ||
Q2 2003 | 10.75 | 9,180.56 | 15.39 | 9,636.26 | ||
Q3 2003 | 1.60 | 9,327.45 | 2.65 | 9,891.62 | ||
Q4 2003 | 10.67 | 10,322.68 | 12.18 | 11,096.42 | ||
2004 | ||||||
Q1 2004 | 2.18 | 10,547.72 | 1.69 | 11,283.95 | ||
Q2 2004 | (1.80) | 10,357.86 | 1.72 | 11,478.03 | ||
Q3 2004 | (0.92) | 10,262.57 | (1.87) | 11,263.39 | ||
Q4 2004 | �� 9.27 | 11,213.91 | 9.23 | 12,303.00 | ||
2005 | ||||||
Q1 2005 | (0.62) | 11,144.38 | (2.15) | 12,038.49 | ||
Q2 2005 | 1.94 | 11,360.58 | 1.37 | 12,203.42 | ||
Q3 2005 | 6.09 | 12,052.44 | 3.61 | 12,643.96 | ||
Q4 2005 | 2.86 | 12,397.14 | 2.09 | 12,908.22 | ||
2006 | ||||||
Q1 2006 | 3.07 | 12,777.73 | 4.21 | 13,451.65 | ||
Q2 2006 | (1.15) | 12,630.79 | (1.44) | 13,257.95 | ||
Q3 2006 | 6.37 | 13,435.37 | 5.67 | 14,009.68 | ||
Q4 2006 | 7.38 | 14,426.90 | 6.70 | 14,948.32 | ||
2007 | ||||||
Q1 2007 | 2.40 | 14,773.15 | 0.64 | 15,043.99 | ||
Q2 2007 | 3.70 | 15,319.75 | 6.28 | 15,988.76 | ||
Q3 2007 | (0.96) | 15,172.68 | 2.03 | 16,313.33 | ||
Q4 2007 | (6.90) | 14,125.77 | (3.33) | 15,769.77 | ||
2008 | ||||||
Q1 2008 | (10.50) | 12,642.56 | (9.45) | 14,279.53 | ||
Q2 2008 | (0.21) | 12,616.01 | (2.73) | 13,889.69 | ||
Q3 2008 | (14.03) | 10,845.99 | (8.37) | 12,727.13 | ||
Q4 2008 | (23.84) | 8,260.30 | (21.94) | 9,934.41 | ||
2009 | ||||||
Q1 2009 | (10.24) | 7,414.45 | (11.01) | 8,840.63 | ||
Q2 2009 | 15.53 | 8,565.91 | 15.93 | 10,248.95 | ||
Q3 2009 | 8.82 | 9,321.43 | 15.61 | 11,848.81 | ||
Q4 2009 | 7.00 | 9,973.92 | 6.04 | 12,564.48 | ||
2010 | ||||||
Q1 2010 | 2.80 | 10,253.19 | 5.39 | 13,241.70 | ||
Q2 2010 | (12.14) | 9,008.46 | (11.43) | 11,728.18 | ||
Q3 2010 | 6.81 | 9,621.93 | 11.29 | 13,052.29 | ||
Q4 2010 | 11.01 | 10,681.31 | 10.76 | 14,456.32 | ||
2011 | ||||||
Q1 2011 | 5.37 | 11,254.89 | 5.92 | 15,311.99 | ||
Q2 2011 | 3.64 | 11,664.57 | 0.10 | 15,327.15 | ||
Q3 2011 | (6.56) | 10,899.38 | (13.87) | 13,201.27 |
Average Annual Total Returns
3Q 2011 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date | |
Ordinary Shares | –6.56% | –3.16% | 13.29% | –4.09% | 0.87% | 8.22% | 05/06/85 |
Institutional Shares1 | –6.45% | –2.96% | 13.65% | –4.02% | 1.16% | 6.42% | 03/25/91 |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact the Funds at (800) 326-2151.
This table shows how the Fund would have performed each year if its actual (or cumulative) returns had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares. When assessing performance, investors should consider both short- and long-term returns.
10
PEAR TREE EMERGING MARKETS FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $137.1 Million | |
Number of Companies | 229 | |
Price to Book Ratio | 1.3 | |
Price to Earnings Ratio | 8.2 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 1.76% | 1.53% |
Ticker Symbol | QFFOX | QEMAX |
Investment Commentary
For the annual period ended September 30, 2011, the Pear Tree Emerging Markets Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, MSCI Emerging Markets (the “Index”). During that period, the Fund achieved a return of –22.00% at net asset value compared to –23.27% for the Index.
Market Conditions and Investment Strategies
On a sector basis, portfolio outperformance was primarily due to security selection in Consumer Staples and Energy. Sectors that detracted from relative portfolio value were Consumer Discretionary and Health Care. On a country basis, positions held in Taiwan and Brazil were the top contributors. Positions held in Indonesia and India detracted.
The top contributor to overall portfolio performance for the six-month period ended September 30, 2011 came from the Consumer Staples sector with an overweight position of the Taiwan-based President Chain Store Corporation. President Chain Store Corp. operates chains of convenience stores; most notably those under the 7-Eleven brand. Share values of President Chain Store Corp. were up approximately 31% for the period. The largest detractor from relative portfolio value stemmed from Materials with an overweight of the KP Chemical Corporation. KP Chemical, which is a South Korea-based manufacturer of petrochemicals, saw its shares decline by as much as 47% during the six months ended September 30, 2011.
The PanAgora Dynamic Alpha model performed well across the Index during the six month period ended September 30, 2011. Despite the recent market volatility, particularly in August and September, 2011 the top ranking alpha deciles of securities showed strong outperformance. Regarding the underlying factor composites utilized by the proprietary alpha model of the Fund’s subadviser, Quality factors have continued to work well throughout 2011; particularly Earnings Quality. Valuation as a theme did not work well during the six-month period. The performance of Momentum factors was generally mixed.
Portfolio Changes
There were no significant portfolio changes during the six-month period ended September 30, 2011.
A Look Ahead
As a quantitative investment firm, the Fund’s subadviser tends not to provide strategy-specific forward looking commentary. It believes that its systematic investment approach ensures that it delivers a portfolio of its highest conviction of ideas to all of our clients.
The Fund’s portfolio is managed by a team of portfolio managers at PanAgora Asset Management, Inc.
11
PEAR TREE EMERGING MARKETS FUND
Top 10 Holdings
Percentage of total net assets | 20.5% |
Samsung Electronics Co., Ltd. | 3.3% |
Taiwan Semiconductor Manufacturing Co., Ltd. | 2.7% |
Vale SA | 2.5% |
Petroleo Brasileiro SA | 2.1% |
CNOOC Limited | 1.8% |
Gazprom | 1.8% |
China Mobile Limited | 1.7% |
LUKoil | 1.6% |
China Construction Bank Corporation | 1.5% |
Hyundai Motor Company | 1.5% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Financials | 21.3% |
Energy | 15.0% |
Materials | 13.7% |
Information Technology | 13.2% |
Consumer Discretionary | 9.6% |
Consumer Staples | 9.4% |
Industrials | 7.9% |
Telecommunication Services | 6.6% |
Health Care | 1.9% |
Utilities | 1.4% |
Cash and Other Assets (Net) | 0.0% |
Top 10 Country Allocations
Percentage of total net assets | 91.5% |
China | 18.2% |
South Korea | 16.4% |
Taiwan | 13.9% |
Brazil | 12.8% |
Russia | 6.3% |
South Africa | 6.3% |
India | 6.2% |
Malaysia | 4.5% |
Mexico | 4.4% |
Indonesia | 2.5% |
Value of a $10,000 Investment
Pear Tree Emerging Markets (PTEM) Ordinary Shares
vs. MSCI EM Index
Pear Tree Emerging Markets | ||||||
MSCI | MSCI | |||||
QEM | QEM | EMG. MKT | EMG. MKT | |||
Period | % Return | Cumulative | % Return | Cumulative | ||
2001 | ||||||
Q3 2001 | $ 10,000.00 | $ 10,000.00 | ||||
Q4 2001 | 19.48 | 11,948.00 | 26.58 | 12,658.00 | ||
2002 | ||||||
Q1 2002 | 8.71 | 12,988.67 | 11.33 | 14,092.15 | ||
Q2 2002 | (8.98) | 11,822.29 | (8.44) | 12,902.77 | ||
Q3 2002 | (11.08) | 10,512.38 | (16.35) | 10,793.17 | ||
Q4 2002 | 9.87 | 11,549.95 | 10.04 | 11,876.80 | ||
2003 | ||||||
Q1 2003 | (4.38) | 11,044.06 | (6.00) | 11,164.20 | ||
Q2 2003 | 22.55 | 13,534.50 | 23.29 | 13,764.34 | ||
Q3 2003 | 16.80 | 15,808.29 | 14.23 | 15,723.00 | ||
Q4 2003 | 32.05 | 20,874.85 | 17.81 | 18,523.27 | ||
2004 | ||||||
Q1 2004 | 10.14 | 22,991.56 | 9.72 | 20,323.73 | ||
Q2 2004 | (11.88) | 20,260.17 | (9.57) | 18,378.75 | ||
Q3 2004 | 11.52 | 22,594.14 | 8.26 | 19,896.84 | ||
Q4 2004 | 17.10 | 26,457.73 | 17.27 | 23,333.02 | ||
2005 | ||||||
Q1 2005 | 0.71 | 26,645.58 | 1.94 | 23,785.68 | ||
Q2 2005 | 1.83 | 27,133.20 | 4.24 | 24,794.19 | ||
Q3 2005 | 19.53 | 32,432.31 | 18.11 | 29,284.42 | ||
Q4 2005 | 5.70 | 34,280.95 | 7.20 | 31,392.90 | ||
2006 | ||||||
Q1 2006 | 14.08 | 39,107.71 | 12.12 | 35,197.72 | ||
Q2 2006 | (6.15) | 36,702.59 | (4.27) | 33,694.78 | ||
Q3 2006 | 4.51 | 38,357.87 | 5.01 | 35,382.88 | ||
Q4 2006 | 17.52 | 45,078.17 | 17.64 | 41,624.42 | ||
2007 | ||||||
Q1 2007 | 5.28 | 47,458.30 | 2.35 | 42,602.60 | ||
Q2 2007 | 17.65 | 55,834.69 | 15.05 | 49,014.29 | ||
Q3 2007 | 15.44 | 64,455.57 | 14.52 | 56,131.16 | ||
Q4 2007 | 1.72 | 65,564.20 | 3.66 | 58,185.56 | ||
2008 | ||||||
Q1 2008 | (13.61) | 56,640.91 | (10.92) | 51,831.70 | ||
Q2 2008 | (1.55) | 55,762.98 | (0.80) | 51,417.05 | ||
Q3 2008 | (28.81) | 39,697.67 | (26.86) | 37,606.43 | ||
Q4 2008 | (32.62) | 26,748.29 | (27.56) | 27,242.10 | ||
2009 | ||||||
Q1 2009 | (1.04) | 26,470.10 | 1.02 | 27,519.97 | ||
Q2 2009 | 30.76 | 34,612.31 | 34.84% | 37,107.92 | ||
Q3 2009 | 20.23 | 41,614.38 | 21.04% | 44,915.43 | ||
Q4 2009 | 9.50 | 45,567.75 | 8.57% | 48,764.68 | ||
2010 | ||||||
Q1 2010 | 2.56 | 46,734.28 | 2.45% | 49,959.42 | ||
Q2 2010 | (8.71) | 42,663.72 | (8.29) | 45,817.78 | ||
Q3 2010 | 18.27 | 50,458.39 | 18.16 | 54,138.29 | ||
Q4 2010 | 8.16 | 54,575.79 | 7.36 | 58,122.87 | ||
2011 | ||||||
Q1 2011 | 2.65 | 56,022.05 | 7.94 | 62,737.82 | ||
Q2 2011 | 0.24 | 56,156.50 | -1.04 | 62,085.35 | ||
Q3 2011 | (22.19) | 43,695.37 | -22.46 | 48,140.98 |
Average Annual Total Returns
3Q 2011 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date | |
Ordinary Shares | –22.19% | –22.00% | –13.40% | 2.64% | 15.89% | 5.71% | 09/30/94 |
Institutional Shares1 | –22.14% | –21.90% | –13.20% | 2.90% | 16.29% | 7.63% | 04/02/96 |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact the Funds at (800) 326-2151.
This table shows how the Fund would have performed each year if its actual (or cumulative) returns had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares. When assessing performance, investors should consider both short- and long-term returns.
12
PEAR TREE POLARIS FOREIGN VALUE FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $369.5 Million | |
Number of Companies | 50 | |
Price to Book Ratio | 1.2 | |
Price to Earnings Ratio | 11.2 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 1.62% | 1.37% |
Ticker Symbol | QFVOX | QFVIX |
Investment Commentary
For the semi-annual period ended September 30, 2011, the Pear Tree Polaris Foreign Value Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, MSCI EAFE Index (the “Index”). During that period, the Fund returned –19.96% at net asset value compared to –17.47% for the Index.
Market Conditions and Investment Strategies
The Fund’s decline for the semi-annual period ended September 30, 2011 was in line with global markets, which reacted to the U.S. credit downgrade and ongoing European sovereign debt crisis. Yet volatility brought opportunity. The Fund capitalized on nervous investor behavior, unearthing fundamentally-strong companies with both good management and good free cash flow that had reached extraordinarily compelling stock prices.
Top sector performers for the semi-annual period ended September 30, 2011 included consumer staples, utilities and telecommunication services. The consumer staples sector benefitted from Japanese companies, Asahi Group Holdings Ltd., Meiji Holdings Co Ltd. and Nichirei Corp., all of which turned in solid positive performances. Japanese telecom operator KDDI Corp. was the telecom sector’s top contributor due to its sales growth (fixed line and smart phones) in combination with lowered operating costs.
Holdings in economically-sensitive sectors fell in value over that period due to volatile conditions. Higher raw material prices negatively impacted Irish containerboard and corrugated packaging firm Smurfit Kappa. Declines in chemical companies, BASF SE and Solvay, stemmed from company concerns about near term growth prospects. In industrials, Finnish construction services company YIT was down on concerns of margin erosion, as cost inflation may be outpacing the company’s ability to raise prices.
Financials were another detractor to performance, as KBC Groep, DNB Nor and Svenska Handlesbanken (the latter two in arguably good economies) dragged down returns. None of these stocks dropped due to fundamental business concerns; rather, they fell in sympathy with the overall European banking market. State Bank of India has not yet recovered from the impact of new provisioning regulations.
Portfolio Changes
During the six month period ended September 30, 2011, the Fund sold off some industrial holdings including two takeover candidates, Demag Cranes and Tognum, as they reached valuation limits. This raised cash to deploy for bargain stocks in down markets. This strategy was executed during the period, buying positions in four new companies (one each in telecom, healthcare, utilities and energy) that offered inexpensive valuations, stable cash flow and good management execution.
Among the new holdings, Guangdong Investment was a strong performer during the period covered by this report, serving the Chinese water utility markets in Hong Kong, Shenzhen and Dongguan. Deutsche Telekom underperformed due to anti-trust concerns related to the AT&T takeover of DT’s T-Mobile USA unit. However, DT stands to earn a termination fee of at least $3 billion from AT&T, equivalent to 5.5% of its market value, if the $39 billion sale of T-Mobile USA falls through.
13
PEAR TREE POLARIS FOREIGN VALUE FUND
A Look Ahead
The Fund’s subadviser believes that most of the Fund’s companies are now in a strong position to weather economic uncertainty, bolstered by leaner cost structures and conservative balance sheets. However, it continues to adapt the portfolio, working diligently on continued de-risking strategies, while holding cash in anticipation of reinvestment in resilient defensive names.
Economic uncertainty will continue and the Fund’s subadviser stands by its expectation that the economy will remain slow, steady and mixed. When the world moves beyond current macro-economic concerns, it expects valuations to return to more normalized levels — offering potential for improved returns.
The Fund’s lead portfolio manager is Bernard R. Horn, Jr., of Polaris Capital Management, LLC
14
PEAR TREE POLARIS FOREIGN VALUE FUND
Top 10 Holdings
Percentage of total net assets | 26.5% |
Samsung Electronics Company Ltd. | 3.1% |
Asahi Breweries Ltd. | 2.8% |
Kone OYJ-B | 2.8% |
Meiji Holdings Co., Ltd. | 2.7% |
Taylor Wimpey plc | 2.6% |
Showa Denko K.K. | 2.6% |
Nichirei Corporation | 2.6% |
KDDI Corporation | 2.5% |
Investor AB, Class B | 2.4% |
Duni AB | 2.4% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Materials | 17.3% |
Financials | 14.3% |
Consumer Discretionary | 13.2% |
Industrials | 10.7% |
Consumer Staples | 10.2% |
Telecommunication Services | 6.2% |
Information Technology | 5.4% |
Energy | 5.3% |
Health Care | 4.3% |
Utilities | 2.6% |
Cash and Other Assets (Net) | 10.5% |
Top 10 Country Allocations
Percentage of total net assets | 73.0% |
Japan | 18.0% |
Germany | 11.3% |
United Kingdom | 10.0% |
Sweden | 7.2% |
Ireland | 5.3% |
France | 5.2% |
Finland | 5.1% |
South Korea | 4.9% |
South Africa | 3.5% |
India | 2.5% |
Value of a $10,000 Investment
Pear Tree Foreign Value (PTFV) Ordinary Shares vs.
MSCI EAFE Index
Pear Tree Foreign Value | ||||||
MSCI | MSCI | |||||
QFV | QFV | EAFE | EAFE | |||
Period | % Return | Cumulative | % Return | Cumulative | ||
2001 | ||||||
Q3 2001 | $ 10,000.00 | $ 10,000.00 | ||||
Q4 2001 | 16.65 | 11,665.00 | 6.97 | 10,697.00 | ||
2002 | ||||||
Q1 2002 | 14.30 | 13,333.10 | 0.57 | 10,757.97 | ||
Q2 2002 | (2.38) | 13,015.77 | (1.94) | 10,549.27 | ||
Q3 2002 | (17.37) | 10,754.93 | (19.69) | 8,472.12 | ||
Q4 2002 | 8.54 | 11,673.40 | 6.48 | 9,021.11 | ||
2003 | ||||||
Q1 2003 | (7.25) | 10,827.08 | (8.13) | 8,287.69 | ||
Q2 2003 | 22.56 | 13,269.67 | 19.57 | 9,909.60 | ||
Q3 2003 | 12.87 | 14,977.47 | 8.18 | 10,720.20 | ||
Q4 2003 | 15.67 | 17,324.44 | 17.11 | 12,554.43 | ||
2004 | ||||||
Q1 2004 | 9.22 | 18,921.76 | 4.40 | 13,106.82 | ||
Q2 2004 | 0.15 | 18,950.14 | 0.44 | 13,164.49 | ||
Q3 2004 | 3.48 | 19,609.60 | (0.23) | 13,134.21 | ||
Q4 2004 | 13.30 | 22,217.68 | 15.36 | 15,151.63 | ||
2005 | ||||||
Q1 2005 | 3.04 | 22,893.10 | (0.10) | 15,136.48 | ||
Q2 2005 | (2.39) | 22,345.95 | (0.75) | 15,022.95 | ||
Q3 2005 | 9.97 | 24,573.85 | 10.44 | 16,591.35 | ||
Q4 2005 | 4.30 | 25,630.52 | 4.12 | 17,274.91 | ||
2006 | ||||||
Q1 2006 | 13.06 | 28,977.87 | 9.47 | 18,910.85 | ||
Q2 2006 | (1.71) | 28,482.35 | 0.94 | 19,088.61 | ||
Q3 2006 | 3.63 | 29,516.25 | 3.99 | 19,850.25 | ||
Q4 2006 | 13.78 | 33,583.59 | 10.40 | 21,914.67 | ||
2007 | ||||||
Q1 2007 | 5.34 | 35,376.96 | 4.15 | 22,824.13 | ||
Q2 2007 | 2.64 | 36,310.91 | 6.67 | 24,346.50 | ||
Q3 2007 | (1.94) | 35,606.48 | 2.23 | 24,889.43 | ||
Q4 2007 | (7.43) | 32,960.92 | 1.71 | 25,315.04 | ||
2008 | ||||||
Q1 2008 | (2.02) | 32,295.11 | (8.82) | 23,082.25 | ||
Q2 2008 | (12.63) | 28,216.23 | (1.93) | 22,636.76 | ||
Q3 2008 | (24.31) | 21,356.87 | (20.50) | 17,996.23 | ||
Q4 2008 | (26.53) | 15,690.89 | (19.90) | 14,414.98 | ||
2009 | ||||||
Q1 2009 | (9.32) | 14,228.50 | (13.85) | 12,418.50 | ||
Q2 2009 | 36.87 | 19,474.55 | 25.84% | 15,627.44 | ||
Q3 2009 | 26.73 | 24,680.09 | 19.52% | 18,677.92 | ||
Q4 2009 | 0.48 | 24,798.56 | 2.23% | 19,094.44 | ||
2010 | ||||||
Q1 2010 | 5.60 | 26,187.28 | 0.94% | 19,273.93 | ||
Q2 2010 | (12.69) | 22,864.11 | -13.75% | 16,623.76 | ||
Q3 2010 | 18.49 | 27,091.69 | 16.53% | 19,371.67 | ||
Q4 2010 | 9.86 | 29,762.93 | 6.65% | 20,659.89 | ||
2011 | ||||||
Q1 2011 | 4.86 | 31,209.41 | 3.45% | 21,372.65 | ||
Q2 2011 | -0.14 | 31,165.71 | 1.83% | 21,763.77 | ||
Q3 2011 | -19.85 | 24,979.32 | -18.95% | 17,639.54 |
Average Annual Total Returns
3Q 2011 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date | |
Ordinary Shares | –19.85% | –19.96% | –7.80% | –3.29% | 9.59% | 4.86% | 05/15/98 |
Institutional Shares1 | –19.84% | –19.89% | –7.56% | –3.09% | 9.84% | 6.72% | 12/18/98 |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact the Funds at (800) 326-2151.
This table shows how the Fund would have performed each year if its actual (or cumulative) returns had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares. When assessing performance, investors should consider both short- and long-term returns.
15
PEAR TREE FOREIGN VALUE SMALL CAP FUND
INVESTMENT PROFILE
All Data as of September 30, 2011
Fund Information | ||
Net Assets Under Management | $84.4 Million | |
Number of Companies | 65 | |
Price to Book Ratio | 1.3 | |
Price to Earnings Ratio | 10.2 | |
Ordinary | Institutional | |
Total Expense Ratio (Net) | 1.67% | 1.39% |
Ticker Symbol | QUSOX | QUSIX |
Investment Commentary
For the semi-annual period ended September 30, 2011, the Pear Tree Polaris Foreign Value Small Cap Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the S&P EPAC Small Cap Index (the “Index”). During that period, the Fund achieved a return of –18.50% at net asset value compared to –18.17% for the Index.
Market Conditions and Investment Strategies
Recent global growth has stemmed from emerging markets, but at times, short-term risks (e.g., high inflation, high interest rates) can negatively impact countries like China and India. Both countries are predicting a slowdown in demand, but not panic-inducing negative GDP growth. Still, investors have remained pessimistic about the growth prospects, resulting in extreme market volatility over the past six months. As expected, emerging markets and cyclical names were dismissed in favor of defensive stock stability.
The Fund’s holdings in defensive sectors offered the strongest returns. In the telecom sector, Alternative Networks experienced double-digit returns during the six-month period ended September 30, 2011, as it continued to gain market share and customers. M1 Ltd. also posted positive numbers, benefitting from good product diversification and steady cash flows. Utilities’ returns were bolstered on Manila Water Company, as well as Brazilian electricity distribution companies, which are addressing increasing demand in rural Brazil. In healthcare, Sigma Pharmaceuticals’ total return for the six-month period ended September 30, 2011 was 75%, a strong contributor to performance. Germany medical equipment manufacturer Draegerwerk AG also posted solid returns for the period.
Few of the Fund’s companies suffered any fundamental deterioration in cash flows; yet holdings in economically-sensitive sectors declined along with global markets. Industrials were negatively impacted by Bobst Group, Transcom Worldwide, Hampson Industries and Sichuan Expressway Co. Sichuan was impacted by Chinese discontent with expensive toll roads; however, the Chinese government isn’t likely to succumb to pressure to reduce rates. In consumer discretionary, Samson Holding Ltd. issued a profit warning, as the Chinese maker of furniture sold in the U.S., expressed continued concern about the U.S. housing market.
Portfolio Changes
During the six-month period ended September 30, 2011, the Fund sold four stocks including takeover target Demag Cranes, which reached its valuation limit on positive news of its acquisition by Terex, a U.S. construction equipment maker. Three other companies were sold due to concerns about corporate governance standards. The sales allowed us to bolster our current holdings and to establish a new position in Nichirei Corp., a Japanese cold storage company benefitting from stable food consumption trends.
Fund management continues to adapt the portfolio, working diligently on de-risking strategies, pinpointing companies with low cash flow volatility. The Fund maintains a healthy cash position, awaiting opportunities for re-investment, with a focus on defensive names that are more resilient in difficult macro-economic conditions. Market weakness and volatility have been presenting attractive names, some of which may get added to the portfolio.
16
PEAR TREE FOREIGN VALUE SMALL CAP FUND
A Look Ahead
The Fund’s subadviser believes that most of the Fund’s companies are now in a strong position to weather economic uncertainty, bolstered by leaner cost structures and conservative balance sheets. Although such companies remain fundamentally strong, if history is any indication, investor nervousness will sideline stocks in emerging markets, small caps and cyclical sectors. When this sentiment subsides, the Fund’s subadviser expects valuations to return to more normalized levels — offering the potential for good returns.
The Fund’s lead portfolio manager is Bernard R. Horn, Jr., of Polaris Capital Management, LLC
17
PEAR TREE FOREIGN VALUE SMALL CAP FUND
Top 10 Holdings
Percentage of total net assets | 22.8% |
Alternative Networks PLC | 3.4% |
Manila Water Company, Inc. | 2.5% |
Sigma Pharmaceutical Ltd. | 2.4% |
M1 Ltd. | 2.3% |
Galliford Try PLC | 2.2% |
Metorex Limited | 2.1% |
Equatorial Energia S.A. | 2.1% |
DaiichiKosho Co. Ltd. | 2.0% |
Dr|$$|Adagerwerk AG | 1.9% |
Kinepolis Group | 1.9% |
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
Percentage of total net assets | 100.0% |
Consumer Discretionary | 22.3% |
Industrials | 15.4% |
Consumer Staples | 12.2% |
Financials | 9.8% |
Information Technology | 6.9% |
Health Care | 6.9% |
Materials | 6.0% |
Telecommunication Services | 5.7% |
Utilities | 5.0% |
Energy | 1.2% |
Cash and Other Assets (Net) | 8.6% |
Top 10 Country Allocations
Percentage of total net assets | 69.4% |
United Kingdom | 17.3% |
Japan | 8.8% |
India | 8.6% |
China | 8.3% |
Ireland | 6.6% |
Australia | 4.9% |
Sweden | 4.1% |
Norway | 3.7% |
Singapore | 3.6% |
South Africa | 3.5% |
Value of a $10,000 Investment
Pear Tree Foreign Value Small Cap (PTFVSC) Ordinary Shares vs. S&P EPAC Small Cap Index
Pear Tree Foreign Value Small Cap | ||||||
S&P | S&P | |||||
QFV | QFV | EPAC SC | EPAC SC | |||
Period | % Return | Cumulative | % Return | Cumulative | ||
2008 | ||||||
April 2008 | $ 10,000.00 | $ 10,000.00 | ||||
May 2008 | 2.80 | 10,280.00 | 1.55 | 10,155.00 | ||
June 2008 | (7.49) | 9,510.03 | (8.50) | 9,291.83 | ||
July 2008 | (3.58) | 9,169.57 | (4.82) | 8,843.96 | ||
August 2008 | (2.29) | 8,959.59 | (3.86) | 8,502.58 | ||
September 2008 | (16.96) | 7,440.04 | (16.08) | 7,135.37 | ||
October 2008 | (27.96) | 5,359.80 | (24.79) | 5,366.51 | ||
November 2008 | (5.41) | 5,069.84 | (4.51) | 5,124.48 | ||
December 2008 | 4.94 | 5,320.29 | 7.73 | 5,520.60 | ||
January 2009 | (5.51) | 5,027.14 | (7.67) | 5,097.17 | ||
February 2009 | (6.24) | 4,713.45 | (9.88) | 4,593.57 | ||
March 2009 | 3.43 | 4,875.12 | 6.53 | 4,893.53 | ||
April 2009 | 23.03 | 5,997.86 | 16.14 | 5,683.35 | ||
May 2009 | 25.13 | 7,505.12 | 12.90 | 6,416.50 | ||
June 2009 | - | 7,505.12 | 0.95 | 6,477.46 | ||
July 2009 | 8.49 | 8,142.31 | 7.49 | 6,962.62 | ||
August 2009 | 7.83 | 8,779.85 | 7.70 | 7,498.74 | ||
September 2009 | 7.14 | 9,406.73 | 5.11 | 7,881.92 | ||
October 2009 | 0.11 | 9,417.08 | (2.56) | 7,680.15 | ||
November 2009 | 1.61 | 9,568.69 | 0.67 | 7,731.60 | ||
December 2009 | 1.99 | 9,759.11 | 1.07 | 7,814.33 | ||
January 2010 | 0.31 | 9,789.36 | (1.81) | 7,672.89 | ||
February 2010 | 1.66 | 9,951.87 | (1.38) | 7,567.01 | ||
March 2010 | 5.01 | 10,450.45 | 7.31 | 8,120.16 | ||
April 2010 | 2.63 | 10,725.30 | 1.15 | 8,213.54 | ||
May 2010 | (10.52) | 9,597.00 | (12.00) | 7,227.91 | ||
June 2010 | (0.64) | 9,535.58 | (0.01) | 7,227.19 | ||
July 2010 | 7.46 | 10,246.93 | 8.48 | 7,840.06 | ||
August 2010 | (2.48) | 9,992.81 | (3.10) | 7,597.01 | ||
September 2010 | 10.78 | 11,070.03 | 11.43 | 8,465.35 | ||
October 2010 | 3.12 | 11,415.42 | 3.91 | 8,796.35 | ||
November 2010 | (2.67) | 11,110.63 | (4.23) | 8,424.26 | ||
December 2010 | 6.01 | 11,778.38 | 10.71 | 9,326.50 | ||
January 2011 | (1.08) | 11,651.17 | 1.34 | 9,451.48 | ||
February 2011 | (0.36) | 11,609.22 | 2.38 | 9,676.42 | ||
March 2011 | 1.82 | 11,820.51 | 0.57 | 9,731.58 | ||
April 2011 | 4.74 | 12,380.81 | 5.72 | 10,288.22 | ||
May 2011 | (2.22) | 12,105.95 | (2.35) | 10,046.45 | ||
June 2011 | (1.57) | 11,915.89 | (1.21) | 9,924.89 | ||
July 2011 | 0.44 | 11,968.32 | (1.04) | 9,821.67 | ||
August 2011 | (9.44) | 10,838.51 | (8.39) | 8,997.63 | ||
September 2011 | (11.11) | 9,634.35 | (11.12) | 7,997.09 |
Average Annual Total Returns
3Q 2011 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date | |
Ordinary Shares | –19.15% | –18.50% | –12.97% | –1.13% | 5/1/2008 | ||
Institutional Shares1 | –19.10% | –18.38% | –12.69% | –0.91% | 5/1/2008 |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, please contact the Funds at (800) 326-2151.
This table shows how the Fund would have performed each year if its actual (or cumulative) returns had been earned at a constant rate. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares. When assessing performance, investors should consider both short- and long-term returns.
18
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—97.5%
Shares | Value | ||
AIR FREIGHT & LOGISTICS—0.1% | |||
Echo Global Logistics, Inc. (a) | 3,134 | $ 41,682 | |
XPO Logistics, Inc. (a) | 3,423 | 26,255 | |
67,937 | |||
BANKS—3.1% | |||
Arlington Asset Investment Corp. | 1,599 | 38,456 | |
California First National Bancorp | 2,567 | 39,301 | |
Citizens & Northern Corporation | 2,574 | 38,250 | |
CoBiz Financial, Inc. | 110,615 | 494,449 | |
F.N.B. Corporation | 144,169 | 1,235,528 | |
Pinnacle Financial Partners, Inc. (a)(b) | 59,954 | 655,897 | |
United Bankshares, Inc. (b) | 12,827 | 257,694 | |
2,759,575 | |||
BEVERAGES—0.1% | |||
Coffee Holding Co., Inc. (b) | 2,089 | 15,668 | |
National Beverage Corp. | 2,520 | 38,203 | |
53,871 | |||
CHEMICALS—0.0% | |||
TPC Group, Inc. (a) | 1,437 | 28,855 | |
COMMERCIAL SERVICES & SUPPLIES—9.7% | |||
Acacia Research Corporation—Acacia Technologies (a) | 111,829 | 4,024,726 | |
American Public Education, Inc. (a) | 1,007 | 34,238 | |
Brightpoint, Inc. (a) | 4,299 | 39,594 | |
Collectors Universe, Inc. | 2,438 | 35,961 | |
Core-Mark Holding Company, Inc. (a) | 1,187 | 36,358 | |
DXP Enterprises, Inc. (a) | 1,853 | 34,892 | |
Heartland Payment Systems, Inc. | 42,172 | 831,632 | |
Hudson Highland Group, Inc. (a) | 9,016 | 30,835 | |
Insperity, Inc. | 12,884 | 30,406 | |
Insignia Systems, Inc. | 1,794 | 39,917 | |
Intersections, Inc. | 2,836 | 36,442 | |
Kforce, Inc. (a) | 114,440 | 1,122,656 | |
LML Payment Systems, Inc. (a) | 14,432 | 25,400 | |
Perma-Fix Environmental Services, Inc. (a) | 29,811 | 35,773 | |
SeaCube Container Leasing Ltd. | 3,260 | 39,544 | |
Standard Parking Corporation (a) | 2,588 | 40,476 | |
U.S. Ecology, Inc. | 47,618 | 736,650 | |
Waste Connections, Inc. | 47,032 | 1,590,622 | |
8,766,122 |
The accompanying notes are an integral part of these financial statements. 19
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
COMMUNICATIONS EQUIPMENT—1.8% | |||
Clearfield, Inc. (a) | 5,649 | $ 33,329 | |
Network Engines, Inc. (a) | 32,673 | 37,900 | |
NICE-Systems Ltd. (a)(c) | 50,382 | 1,529,094 | |
TeleNav, Inc. (a) | 4,439 | 39,374 | |
1,639,697 | |||
COMPUTERS & PERIFERALS—0.0% | |||
Presstek, Inc. (a) | 35,826 | 24,147 | |
CONSTRUCTION & ENGINEERING—0.3% | |||
ENGlobal Corporation (a) | 12,966 | 35,138 | |
MasTec, Inc. (a) | 13,217 | 232,751 | |
267,889 | |||
CONTAINERS & PACKAGING—0.8% | |||
Sonoco Products Company | 24,810 | 700,386 | |
UFP Technologies, Inc. (a) | 2,534 | 36,515 | |
736,901 | |||
DIVERSIFIED FINANCIALS—6.6% | |||
Artio Global Investors, Inc. | 4,816 | 38,335 | |
Asta Funding, Inc. | 4,972 | 40,323 | |
BlackRock Kelso Capital Corporation (a) | 4,711 | 34,390 | |
Cascade Bancorp (a)(b) | 4,625 | 26,964 | |
Diamond Hill Investment Group, Inc. | 563 | 39,067 | |
Epoch Holding Corp. | 2,994 | 40,629 | |
EZCORP, Inc., Class A (a) | 30,096 | 858,940 | |
Federal Agricultural Mortgage Corp., Class C | 2,172 | 41,333 | |
First Cash Financial Services, Inc. (a) | 77,039 | 3,231,786 | |
Gladstone Investment Corporation | 6,160 | 41,888 | |
Hercules Technology Growth Capital, Inc. | 70,406 | 599,859 | |
Medallion Financial Corp. | 4,189 | 38,958 | |
Medley Capital Corp. (a) | 73,304 | 738,904 | |
Nicholas Financial, Inc. | 3,630 | 35,465 | |
Texas Pacific Land Trust | 985 | 35,795 | |
Tower Bancorp, Inc. | 1,599 | 33,483 | |
Walker & Dunlop, Inc. (a) | 3,576 | 41,553 | |
White River Capital, Inc. | 2,105 | 40,774 | |
5,958,446 | |||
DIVERSIFIED TELECOMMUNICATION—0.1% | |||
IDT Corp., Class B | 3,244 | 66,178 |
20The accompanying notes are an integral part of these financial statements.
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
ELECTRONIC EQUIPMENT & INSTRUMENTS—4.4% | |||
DDi Corp. | 5,424 | $ 39,270 | |
Espey Manufacturing & Electronics Corp. | 1,632 | 37,846 | |
Finisar Corporation (a) | 91,002 | 1,596,175 | |
OCZ Technology Group, Inc. (a)(b) | 133,187 | 645,957 | |
OSI Systems, Inc. (a) | 33,231 | 1,113,903 | |
SL Industries, Inc. (a) | 2,134 | 35,958 | |
TESSCO Technologies, Inc. | 2,773 | 36,853 | |
Vishay Intertechnology, Inc. (a) | 58,178 | 486,368 | |
3,992,330 | |||
ENERGY EQUIPMENT & SERVICES—6.5% | |||
Core Laboratories N.V. | 43,510 | 3,908,503 | |
Dawson Geophysical Company (a) | 47,197 | 1,112,905 | |
Hornbeck Offshore Services, Inc. (a) | 34,969 | 871,078 | |
5,892,486 | |||
FOOD & DRUG RETAILING—2.2% | |||
United Natural Foods, Inc. (a) | 52,475 | 1,943,674 | |
FOOD PRODUCTS—3.5% | |||
Andersons, Inc. (The) | 26,392 | 888,355 | |
Diamond Foods, Inc. (b) | 15,481 | 1,235,229 | |
Hain Celestial Group, Inc. (a) | 32,578 | 995,258 | |
3,118,842 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—6.2% | |||
Accuray Incorporated (a) | 65,569 | 263,587 | |
Align Technology, Inc. (a) | 53,577 | 812,763 | |
ATRION Corp. | 197 | 40,856 | |
Computer Programs and Systems, Inc. | 596 | 39,425 | |
Natus Medical, Inc. (a) | 64,278 | 611,284 | |
SXC Health Solutions Corp. (a) | 52,680 | 2,934,276 | |
Syneron Medical Ltd. (a) | 89,329 | 885,250 | |
Theragenics Corp. (a) | 26,181 | 34,559 | |
5,622,000 | |||
HEALTH CARE PROVIDERS & SERVICES—2.5% | |||
Addus HomeCare Corp. (a) | 8,526 | 34,871 | |
BioScrip, Inc. (a) | 6,630 | 42,167 | |
Continucare Corporation (a) | 10,133 | 64,649 | |
Ensign Group, Inc. (The) | 1,803 | 41,667 | |
eResearch Technology, Inc. (a) | 119,772 | 534,183 | |
Henry Schein, Inc. (a) | 23,237 | 1,440,926 |
The accompanying notes are an integral part of these financial statements. 21
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES (continued) | |||
Psychemedics Corp. | 5,011 | $ 35,729 | |
U.S. Physical Therapy, Inc. | 2,265 | 41,948 | |
2,236,140 | |||
HOTELS, RESTAURANTS & LEISURE—0.6% | |||
Caribou Coffee Company, Inc. (a) | 2,805 | 33,155 | |
National CineMedia, Inc. | 35,234 | 511,245 | |
544,400 | |||
INSURANCE—0.1% | |||
Crawford & Company, Class B | 6,179 | 33,119 | |
Primus Guaranty, Ltd. (a) | 7,066 | 37,238 | |
70,357 | |||
INTERNET & CATALOG RETAIL—0.1% | |||
NutriSystem, Inc. | 3,283 | 39,757 | |
PC Mall, Inc. (a) | 6,392 | 33,686 | |
Systemax, Inc. (a) | 3,139 | 39,928 | |
113,371 | |||
INTERNET SOFTWARE & SERVICES—3.0% | |||
EasyLink Services International Corp. (a) | 8,821 | 38,283 | |
Ebix, Inc. | 2,427 | 35,677 | |
ICG Group, Inc. (a) | 140,594 | 1,294,871 | |
iPass, Inc. | 28,561 | 35,701 | |
LogMeIn, Inc. (a) | 38,854 | 1,290,341 | |
2,694,873 | |||
IT CONSULTING & SERVICES—5.2% | |||
Alliance Data Systems Corporation (a) | 39,015 | 3,616,691 | |
Computer Task Group, Inc. (a) | 3,621 | 40,447 | |
InterNAP Network Services Corporation (a) | 201,987 | 993,776 | |
Wayside Technology Group, Inc. | 3,618 | 36,288 | |
4,687,202 | |||
LEISURE EQUIPMENT & PRODUCTS—1.0% | |||
Callaway Golf Company | 84,085 | 434,719 | |
Polaris Industries, Inc. | 9,138 | 456,626 | |
Sturm, Ruger & Co., Inc. | 1,295 | 33,644 | |
924,989 | |||
MACHINERY—4.6% | |||
Gardner Denver, Inc. | 52,280 | 3,322,394 | |
Middleby Corporation (The) (a) | 12,013 | 846,436 | |
4,168,830 |
22The accompanying notes are an integral part of these financial statements.
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
MEDIA—5.0% | |||
Cinemark Holdings, Inc. | 80,514 | $ 1,520,104 | |
IMAX Corporation (a) | 19,058 | 275,960 | |
Regal Entertainment Group, Class A (b) | 141,820 | 1,664,967 | |
TiVo Inc. (a) | 112,591 | 1,051,600 | |
4,512,631 | |||
METALS & MINING—4.3% | |||
Compass Minerals International, Inc. | 48,998 | 3,272,086 | |
Friedman Industries, Inc. | 4,444 | 38,841 | |
Great Northern Iron Ore Properties (b) | 387 | 40,364 | |
Mesabi Trust | 1,642 | 34,236 | |
Stillwater Mining Company (a) | 57,787 | 491,190 | |
3,876,717 | |||
MULTILINE RETAIL—0.0% | |||
Gordmans Stores, Inc. (a) | 2,911 | 34,845 | |
OIL & GAS—1.0% | |||
Abraxas Petroleum Corp. (a)(b) | 159,858 | 422,025 | |
Adams Resources & Energy, Inc. | 1,787 | 36,187 | |
Alon USA Energy, Inc. | 4,425 | 27,125 | |
Natural Gas Services Group, Inc. (a) | 33,415 | 428,714 | |
914,051 | |||
PERSONAL PRODUCTS—0.0% | |||
Medifast, Inc. (a) | 2,574 | 41,570 | |
PHARMACEUTICALS—2.6% | |||
Akorn, Inc. (a) | 4,909 | 38,339 | |
Depomed, Inc. (a) | 6,641 | 35,861 | |
DUSA Pharmaceuticals, Inc. (a) | 9,771 | 36,153 | |
Hi-Tech Pharmacal Co., Inc. (a) | 1,361 | 45,730 | |
Impax Laboratories, Inc. (a) | 52,199 | 934,884 | |
Obagi Medical Products, Inc. (a) | 3,969 | 35,999 | |
Par Pharmaceutical Companies, Inc. (a) | 34,975 | 931,035 | |
PharMerica Corp. (a) | 2,890 | 41,240 | |
Targacept, Inc. (a) | 18,410 | 276,150 | |
2,375,391 | |||
REAL ESTATE—9.1% | |||
American Campus Communities, Inc. | 37,190 | 1,383,840 | |
ARMOUR Residential REIT, Inc. | 5,534 | 37,631 | |
Dynex Capital, Inc. | 4,766 | 38,414 |
The accompanying notes are an integral part of these financial statements. 23
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
REAL ESTATE (continued) | |||
Entertainment Properties Trust | 101,520 | $ 3,957,250 | |
Hersha Hospitality Trust | 794,344 | 2,748,430 | |
HFF, Inc., Class A (a) | 3,882 | 33,928 | |
Newcastle Investment Corp. | 7,765 | 31,604 | |
8,231,097 | |||
ROAD & RAIL—0.1% | |||
Pacer International, Inc. (a) | 9,841 | 36,904 | |
TravelCenters of America LLC (a) | 9,724 | 34,326 | |
71,230 | |||
SEMICONDUCTOR EQUIPMENT & PRODUCTS—1.1% | |||
8x8, Inc. (a) | 9,157 | 37,269 | |
MIPS Technologies, Inc. (a) | 40,300 | 195,052 | |
Tessera Technologies, Inc. (a) | 62,181 | 742,441 | |
974,762 | |||
SOFTWARE—2.7% | |||
Majesco Entertainment Company (a) | 16,468 | 32,936 | |
RealD, Inc. (a) | 10,303 | 96,333 | |
Renaissance Learning, Inc. | 2,633 | 44,182 | |
SuccessFactors, Inc. (a) | 52,226 | 1,200,676 | |
Verint Systems, Inc. (a) | 38,849 | 1,021,340 | |
2,395,467 | |||
SPECIALTY RETAIL—3.1% | |||
Chico’s FAS, Inc. | 145,854 | 1,667,111 | |
Monro Muffler Brake, Inc. | 13,535 | 446,249 | |
PC Connection, Inc. (a) | 4,574 | 36,501 | |
Pier 1 Imports, Inc. (a) | 61,935 | 605,724 | |
Sonic Automotive, Inc., Class A | 3,052 | 32,931 | |
Susser Holdings Corp. (a) | 1,961 | 39,083 | |
2,827,599 | |||
TEXTILES & APPAREL—-1.9% | |||
Body Central Corp. (a) | 2,240 | 40,678 | |
Crocs, Inc. (a) | 20,045 | 474,465 | |
DGSE Companies, Inc. (a) | 4,439 | 35,956 | |
GUESS?, Inc. | 32,219 | 917,919 | |
Kingold Jewelry, Inc. (a) | 28,561 | 35,701 | |
Maidenform Brands, Inc. (a) | 10,716 | 250,862 | |
1,755,581 |
24The accompanying notes are an integral part of these financial statements.
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
WIRELESS TELECOMMUNICATION SERVICES—4.1% | |||
SBA Communications Corp., Class A (a) | 107,331 | $ 3,700,773 | |
TOTAL COMMON STOCK | |||
(Cost $83,030,447) | 88,090,826 | ||
Short Term Investments—1.8% | |||
Par Value | Value | ||
State Street Bank & Trust Co., Repurchase Agreement .01%, 10/03/11, (Dated 09/30/11), Collateralized by $1,290,000 par U.S. Treasury Note-4.5% due 08/15/2039, Market Value $1,675,388, Repurchase Proceeds $1,642,285 (Cost $1,642,284) | $1,642,284 | 1,642,284 | |
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED)—99.3% (Cost $84,672,731) | 89,733,110 | ||
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—4.9% | |||
Money Market—4.9% | |||
JP Morgan Prime Money Market Fund—Inst. (Cost $4,433,006) | 4,433,006 | 4,433,006 | |
TOTAL INVESTMENTS—104.2% (Cost $89,105,737) | 94,166,116 | ||
OTHER ASSETS & LIABILITIES (NET)—(4.2%) | (3,844,167) | ||
NET ASSETS—100% | $90,321,949 |
(a) | Non-income producing security | |
(b) | All or a portion of this security was out on loan. | |
(c) | ADR—American Depositary Receipts |
The Portfolio is actively managed and holdings are subject to change.
There is no guarantee the Fund will continue to invest in the securities referenced.
Reference to specific securities or holdings should not be considered recommendations for action by investors.
The accompanying notes are an integral part of these financial statements.
25
PEAR TREE COLUMBIA MICRO CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—93.2%
Shares | Value | ||
AIR FREIGHT & LOGISTICS—1.8% | |||
Echo Global Logistics, Inc. (a) | 591 | $ 7,860 | |
XPO Logistics, Inc. (a) | 646 | 4,955 | |
12,815 | |||
BANKS—3.1% | |||
Arlington Asset Investment Corp. | 302 | 7,263 | |
California First National Bancorp | 484 | 7,410 | |
Citizens & Northern Corporation | 486 | 7,222 | |
21,895 | |||
BEVERAGES—1.4% | |||
Coffee Holding Co., Inc. | 394 | 2,955 | |
National Beverage Corp. | 476 | 7,216 | |
10,171 | |||
CHEMICALS—0.8% | |||
TPC Group, Inc. (a) | 271 | 5,442 | |
COMMERCIAL SERVICES & SUPPLIES—13.2% | |||
American Public Education, Inc. (a) | 190 | 6,461 | |
Brightpoint, Inc. (a) | 811 | 7,469 | |
Collectors Universe, Inc. | 460 | 6,785 | |
Core-Mark Holding Company, Inc. (a) | 224 | 6,861 | |
DXP Enterprises, Inc. (a) | 350 | 6,591 | |
Heartland Payment Systems, Inc. | 364 | 7,178 | |
Hudson Highland Group, Inc. (a) | 1,701 | 5,817 | |
Insignia Systems, Inc. | 2,431 | 5,737 | |
Insperity, Inc. | 339 | 7,543 | |
Intersections, Inc. | 535 | 6,875 | |
LML Payment Systems, Inc. (a) | 2,723 | 4,792 | |
Perma-Fix Environmental Services, Inc. (a) | 5,625 | 6,750 | |
SeaCube Container Leasing, Ltd. | 615 | 7,460 | |
Standard Parking Corporation (a) | 488 | 7,632 | |
93,951 | |||
COMMUNICATIONS EQUIPMENT—2.9% | |||
Clearfield, Inc. (a) | 1,066 | 6,289 | |
Network Engines, Inc. (a) | 6,165 | 7,152 | |
TeleNav, Inc. (a) | 838 | 7,433 | |
20,874 | |||
COMPUTERS & PERIFERALS—0.6% | |||
Presstek, Inc. (a) | 6,760 | 4,556 |
26The accompanying notes are an integral part of these financial statements.
PEAR TREE COLUMBIA MICRO CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
CONSTRUCTION & ENGINEERING—0.9% | |||
ENGlobal Corporation (a) | 2,447 | $ 6,631 | |
CONTAINERS & PACKAGING—1.0% | |||
UFP Technologies, Inc. (a) | 478 | 6,888 | |
DIVERSIFIED FINANCIALS—12.8% | |||
Artio Global Investors, Inc. | 909 | 7,236 | |
Asta Funding, Inc. | 838 | 6,796 | |
BlackRock Kelso Capital Corporation (a) | 889 | 6,490 | |
Cascade Bancorp (a) | 873 | 5,090 | |
Diamond Hill Investment Group, Inc. | 106 | 7,355 | |
Epoch Holding Corp. | 565 | 7,667 | |
Federal Agricultural Mortgage Corp., Class C | 410 | 7,802 | |
Gladstone Investment Corporation | 1,062 | 7,222 | |
Medallion Financial Corp. | 790 | 7,347 | |
Nicholas Financial, Inc. | 685 | 6,692 | |
Texas Pacific Land Trust | 186 | 6,759 | |
Walker & Dunlop, Inc. (a) | 675 | 7,844 | |
White River Capital, Inc. | 347 | 6,721 | |
91,021 | |||
DIVERSIFIED TELECOMMUNICATION—1.8% | |||
IDT Corp., Class B | 612 | 12,485 | |
ELECTRONIC EQUIPMENT & INSTRUMENTS—4.0% | |||
DDi Corp. | 1,023 | 7,407 | |
Espey Manufacturing & Electronics Corp. | 308 | 7,142 | |
SL Industries, Inc. (a) | 403 | 6,790 | |
TESSCO Technologies, Inc. | 523 | 6,951 | |
28,290 | |||
HEALTH CARE EQUIPMENT & SUPPLIES—3.0% | |||
ATRION Corp. | 37 | 7,673 | |
Computer Programs and Systems, Inc. | 112 | 7,409 | |
Theragenics Corp. (a) | 4,940 | 6,521 | |
21,603 | |||
HEALTH CARE PROVIDERS & SERVICES—6.8% | |||
Addus Homecare Corp. (a) | 1,609 | 6,581 | |
BioScrip, Inc. (a) | 1,251 | 7,956 | |
Continucare Corporation (a) | 1,912 | 12,199 | |
Ensign Group, Inc. (The) | 340 | 7,857 | |
Psychemedics Corp. | 818 | 5,832 | |
U.S. Physical Therapy, Inc. | 427 | 7,908 | |
48,333 |
The accompanying notes are an integral part of these financial statements. 27
PEAR TREE COLUMBIA MICRO CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
HOTELS, RESTAURANTS & LEISURE—0.9% | |||
Caribou Coffee Company, Inc. (a) | 529 | $ 6,253 | |
INSURANCE—1.9% | |||
Crawford & Company, Class B | 1,166 | 6,250 | |
Primus Guaranty, Ltd. (a) | 1,333 | 7,025 | |
13,275 | |||
INTERNET & CATALOG RETAIL—3.0% | |||
NutriSystem, Inc. | 619 | 7,496 | |
PC Mall, Inc. (a) | 1,206 | 6,356 | |
Systemax, Inc. (a) | 592 | 7,530 | |
21,382 | |||
INTERNET SOFTWARE & SERVICES—2.9% | |||
EasyLink Services International Corp. (a) | 1,664 | 7,222 | |
Ebix, Inc. | 458 | 6,733 | |
iPass, Inc. | 5,389 | 6,736 | |
20,691 | |||
IT CONSULTING & SERVICES—2.0% | |||
Computer Task Group, Inc. (a) | 683 | 7,629 | |
Wayside Technology Group, Inc. | 683 | 6,850 | |
14,479 | |||
LEISURE EQUIPMENT & PRODUCTS—0.9% | |||
Sturm, Ruger & Co., Inc. | 244 | 6,339 | |
METALS & MINING—3.0% | |||
Friedman Industries, Inc. | 839 | 7,333 | |
Great Northern Iron Ore Properties | 73 | 7,614 | |
Mesabi Trust | 310 | 6,463 | |
21,410 | |||
MULTILINE RETAIL—0.9% | |||
Gordmans Stores, Inc. (a) | 549 | 6,572 | |
OIL & GAS—1.7% | |||
Adams Resources & Energy, Inc. | 337 | 6,824 | |
Alon USA Energy, Inc. | 835 | 5,119 | |
11,943 | |||
PERSONAL PRODUCTS—1.1% | |||
Medifast, Inc. (a) | 486 | 7,849 |
28The accompanying notes are an integral part of these financial statements.
PEAR TREE COLUMBIA MICRO CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
PHARMACEUTICALS—6.2% | |||
Akorn, Inc. (a) | 926 | $ 7,232 | |
Depomed, Inc. (a) | 1,253 | 6,766 | |
DUSA Pharmaceuticals, Inc. (a) | 1,844 | 6,823 | |
Hi-Tech Pharmacal Co., Inc. (a) | 257 | 8,635 | |
Obagi Medical Products, Inc. (a) | 749 | 6,794 | |
PharMerica Corp. (a) | 545 | 7,777 | |
44,027 | |||
REAL ESTATE—3.8% | |||
ARMOUR Residential REIT, Inc. | 1,044 | 7,099 | |
Dynex Capital, Inc. | 899 | 7,246 | |
HFF, Inc., Class A (a) | 733 | 6,406 | |
Newcastle Investment Corp. | 1,465 | 5,963 | |
26,714 | |||
ROAD & RAIL—1.9% | |||
Pacer International, Inc. (a) | 1,857 | 6,964 | |
TravelCenters of America LLC (a) | 1,835 | 6,477 | |
13,441 | |||
SEMICONDUCTOR EQUIPMENT & PRODUCTS—1.0% | |||
8x8, Inc. (a) | 1,728 | 7,033 | |
SOFTWARE—2.1% | |||
Majesco Entertainment Company (a) | 3,107 | 6,214 | |
Renaissance Learning, Inc. | 497 | 8,340 | |
14,554 | |||
SPECIALTY RETAIL—2.9% | |||
PC Connection, Inc. (a) | 863 | 6,887 | |
Sonic Automotive, Inc., Class A | 576 | 6,215 | |
Susser Holdings Corp. (a) | 370 | 7,374 | |
20,476 | |||
TEXTILES & APPAREL—2.9% | |||
Body Central Corp. (a) | 423 | 7,682 | |
DGSE Companies, Inc. (a) | 838 | 6,788 | |
Kingold Jewelry, Inc. (a) | 4,989 | 6,236 | |
20,706 | |||
TOTAL COMMON STOCK | |||
(Cost $717,404) | 662,099 |
The accompanying notes are an integral part of these financial statements. 29
PEAR TREE COLUMBIA MICRO CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Short Term Investments—6.4%
Par Value | Value | ||
State Street Bank & Trust Co., Repurchase Agreement .01%, 10/03/11, (Dated 09/30/11), Collateralized by $40,000 par U.S. Treasury Note-4.5% due 08/15/2039, Market Value $51,950, Repurchase Proceeds $45,396 (Cost $45,396) | $45,396 | $ 45,396 | |
TOTAL INVESTMENTS—99.6% (Cost $762,800) | 707,495 | ||
OTHER ASSETS & LIABILITIES (NET)—0.4% | 2,654 | ||
NET ASSETS—100% | $710,149 |
(a) Non-income producing security
The Portfolio is actively managed and holdings are subject to change.
There is no guarantee the Fund will continue to invest in the securities referenced.
Reference to specific securities or holdings should not be considered recommendations for action by investors.
30The accompanying notes are an integral part of these financial statements.
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—99.4%
Shares | Value | ||
AEROSPACE & DEFENSE—0.5% | |||
United Technologies Corporation | 4,913 | $ 345,679 | |
BEVERAGES—5.5% | |||
Anheuser-Busch InBev SA (b)(c) | 7,457 | 395,072 | |
Brown Forman, Inc. (b) | 1,363 | 95,601 | |
Coca-Cola Company (The) (b) | 45,900 | 3,101,004 | |
Hansen Natural Corporation (a) | 2,609 | 227,740 | |
3,819,417 | |||
COMMUNICAITONS EQUIPMENT—1.4% | |||
QUALCOMM Incorporated | 20,347 | 989,475 | |
COMPUTERS & PERIPHERALS—6.4% | |||
Apple, Inc. (a)(b) | 7,192 | 2,741,447 | |
Hewlett-Packard Company (b) | 8,407 | 188,737 | |
International Business Machines (b) | 8,603 | 1,505,783 | |
4,435,967 | |||
FOOD PRODUCTS—4.8% | |||
Campbell Soup Company (b) | 2,380 | 77,041 | |
H. J. Heinz Company (b) | 1,852 | 93,489 | |
Hershey Company (The) (b) | 1,342 | 79,500 | |
Kellogg Company (b) | 3,200 | 170,208 | |
Kraft Foods, Inc. (b) | 3,432 | 115,246 | |
Nestle, S.A. (c) | 26,728 | 1,472,713 | |
Unilever NA (b)(c) | 41,369 | 1,302,710 | |
3,310,907 | |||
FOOD STAPLES & DRUG RETAILING—7.9% | |||
Costco Wholesale Corporation (b) | 1,366 | 112,176 | |
CVS Caremark Corporation (b) | 3,445 | 115,683 | |
General Mills, Inc. (b) | 5,836 | 224,511 | |
Kroger Co. (The) | 317 | 6,961 | |
PepsiCo, Inc. (b) | 27,760 | 1,718,344 | |
SYSCO Corporation (b) | 10,621 | 275,084 | |
Wal-Mart Stores, Inc. (b) | 47,997 | 2,491,044 | |
Walgreen Co. (b) | 16,995 | 558,966 | |
5,502,769 | |||
HEALTH CARE EQUIPMENT & SERVICES—3.5% | |||
Baxter International, Inc. (b) | 2,003 | 112,448 | |
Express Scripts, Inc. (a)(b) | 12,355 | 458,000 | |
Intuitive Surgical, Inc. (a)(b) | 196 | 71,399 |
The accompanying notes are an integral part of these financial statements. 31
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
HEALTH CARE EQUIPMENT & SERVICES (continued) | |||
Medtronic, Inc. | 20,168 | $ 670,384 | |
Stryker Corporation (b) | 114 | 5,373 | |
Thermo Fisher Scientific, Inc. (a) | 109 | 5,520 | |
UnitedHealth Group, Inc. | 18,577 | 856,771 | |
Zimmer Holdings, Inc. (a)(b) | 5,311 | 284,139 | |
2,464,034 | |||
HEALTH CARE PROVIDERS & SERVICES—0.8% | |||
Covance Inc. (a)(b) | 18 | 818 | |
Henry Schein, Inc. (a)(b) | 1,477 | 91,589 | |
Laboratory Corporation of America Holdings (a)(b) | 1,435 | 113,437 | |
Quest Diagnostics Incorporated (b) | 4,334 | 213,926 | |
WellPoint, Inc. | 2,064 | 134,738 | |
554,508 | |||
HOTELS, RESTAURANTS & LEISURE—1.2% | |||
McDonald’s Corporation (b) | 9,837 | 863,885 | |
HOUSEHOLD PRODUCTS—5.0% | |||
Church & Dwight Co., Inc. (b) | 1,272 | 56,222 | |
Clorox Company (The) (b) | 1,917 | 127,155 | |
Colgate-Palmolive Company | 10,081 | 893,983 | |
Kimberly-Clark Corporation (b) | 3,933 | 279,282 | |
Procter & Gamble Company (b) | 34,151 | 2,157,660 | |
3,514,302 | |||
INDUSTRIAL CONGLOMERATES—0.8% | |||
3M Company (b) | 7,607 | 546,107 | |
OIL & GAS—11.2% | |||
BP plc (b)(c) | 49,506 | 1,785,681 | |
Chevron Corporation (b) | 13,749 | 1,272,057 | |
Exxon Mobil Corporation (b) | 29,335 | 2,130,601 | |
Royal Dutch Shell plc (c) | 26,892 | 1,654,396 | |
TOTAL S.A. (c) | 21,588 | 947,066 | |
7,789,801 | |||
PERSONAL PRODUCTS—0.2% | |||
Avon Products, Inc. (b) | 2,816 | 55,193 | |
Estee Lauder Companies, Inc. (The) (b) | 802 | 70,448 | |
125,641 |
32The accompanying notes are an integral part of these financial statements.
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
PHARMACEUTICALS & BIOTECHNOLOGY—21.7% | |||
Abbott Laboratories (b) | 30,953 | $ 1,582,936 | |
Amgen, Inc. (a)(b) | 15,123 | 831,009 | |
Bristol-Myers Squibb Company (b) | 11,620 | 364,636 | |
Eli Lilly and Company | 12,004 | 443,788 | |
Gilead Sciences, Inc. (a)(b) | 8,713 | 338,064 | |
GlaxoSmithKline plc (b)(c) | 39,587 | 1,634,547 | |
Johnson & Johnson (b) | 67,258 | 4,285,007 | |
Merck & Co., Inc. | 41,774 | 1,366,428 | |
Novartis AG (c) | 16,165 | 901,522 | |
Pfizer, Inc. | 159,176 | 2,814,232 | |
Roche Holding Ltd (c) | 5,382 | 216,464 | |
Sanofi-Aventis (c) | 8,034 | 263,515 | |
Takeda Pharmaceutical Company Limited (a)(c) | 3,549 | 83,827 | |
15,125,975 | |||
SOFTWARE & SERVICES—19.7% | |||
Cisco Systems, Inc. (b) | 201,159 | 3,115,953 | |
eBay, Inc. (a) | 4,062 | 119,788 | |
Google, Inc. (a)(b) | 3,731 | 1,919,152 | |
MasterCard Incorporated (b) | 1,891 | 599,750 | |
Microsoft Corporation | 159,546 | 3,971,100 | |
Oracle Corporation (a)(b) | 109,767 | 3,154,703 | |
Visa, Inc. (b) | 9,887 | 847,514 | |
Yahoo! Inc. (a)(b) | 2,337 | 30,755 | |
13,758,715 | |||
TEXTILES & APPAREL—1.1% | |||
Nike, Inc. (b) | 8,917 | 762,493 | |
TOBACCO—7.7% | |||
Altria Group, Inc. (b) | 23,556 | 631,536 | |
British American Tobacco p.l.c. (c) | 8,158 | 691,227 | |
Lorillard, Inc. (b) | 2,317 | 256,492 | |
Philip Morris International, Inc. | 59,344 | 3,701,879 | |
Reynolds American, Inc. (b) | 3,111 | 116,600 | |
5,397,734 | |||
WIRELESS TELECOMMUNICATIONS—0.0% | |||
NTT DOCOMO, Inc. (b)(c) | 344 | 6,281 | |
TOTAL COMMON STOCK | |||
(Cost $72,101,927) | 69,313,690 |
The accompanying notes are an integral part of these financial statements. 33
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Short Term Investments—2.8%
Par Value | Value | ||
Money Market—2.8% | |||
State Street Bank & Trust Co., Repurchase Agreement .01%, 10/03/11, (Dated 09/30/11), Collateralized by 1,575,000 par U.S. Treasury Note-4.5% due 08/15/2039, Market Value $2,045,531, Repurchase Proceeds $2,000,993 (Cost $2,000,991) | $2,000,991 | $ 2,000,991 | |
TOTAL SHORT TERM INVESTMENTS—2.8% | 2,000,991 | ||
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—44.4% | |||
Registered Money Market—44.4% | |||
State Street Navigator Securities Lending Prime Portfolio (Cost $30,961,890) | 30,961,890 | 30,961,890 | |
TOTAL INVESTMENTS—146.6% (Cost $105,064,808) | 102,276,571 | ||
OTHER ASSETS & LIABILITIES (NET)—(46.6%) | (32,514,776) | ||
NET ASSETS—100% | $69,761,795 |
(a) | Non-Income producing security |
(b) | All or a portion of this security was out on loan. |
(c) | ADR—American Depositary Receipts |
The percentage of each investment category is calculated as a percentage of net assets. |
34The accompanying notes are an integral part of these financial statements.
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—94.8%
Shares | Value | ||
BRAZIL—7.6% | |||
Banco do Brasil SA | 102,010 | $ 1,369,506 | |
Companhia de Bebidas das Americas (c) | 58,498 | 1,792,964 | |
Companhia de Saneamento Basico (c) | 9,172 | 425,122 | |
Cosan SA Industria e Comercio | 50,302 | 651,663 | |
Equatorial Energia SA | 12,861 | 80,631 | |
Gerdau SA (c) | 11,062 | 78,872 | |
Light SA | 8,035 | 107,438 | |
Petroleo Brasileiro SA | 92,583 | 1,045,796 | |
Petroleo Brasileiro SA (c) | 87,485 | 1,812,689 | |
Porto Seguro SA | 2,711 | 25,641 | |
Sao Martinho SA | 3,964 | 42,955 | |
Sul America SA | 36,429 | 315,019 | |
Tele Norte Leste Participacoes SA (c) | 60,130 | 573,039 | |
TIM Participacoes SA (c) | 10,300 | 242,668 | |
Ultrapar Participacoes SA | 58,992 | 940,556 | |
Vale SA | 41,036 | 945,919 | |
10,450,478 | |||
CHILE—1.6% | |||
Banco Santander Chile (c) | 8,379 | 615,689 | |
Compania Cervecerias Unidas SA (c) | 5,620 | 290,273 | |
Enersis SA (c) | 42,207 | 713,720 | |
Lan Airlines SA (b)(c) | 26,892 | 555,320 | |
2,175,002 | |||
CHINA—18.2% | |||
Bank of China Ltd., Class H | 4,945,902 | 1,556,674 | |
BYD Electronic (International) Company Limited (a) | 274500 | 69,470 | |
Central China Real Estate Ltd. | 825,148 | 164,305 | |
China Communications Construction Co., Ltd., Class H (a) | 1,068,000 | 705,213 | |
China Communications Services Corporation Limited, Class H | 292,000 | 135,418 | |
China Construction Bank Corporation | 3,308,277 | 2,035,745 | |
China Minsheng Banking Corp. (b) | 345,000 | 212,295 | |
China Mobile Limited | 240,590 | 2,384,512 | |
China Petroleum & Chemical Corporation | 1,722,000 | 1,698,949 | |
China Pharmaceutical Group Limited | 1,390,752 | 339,461 | |
China Shenhua Energy Co., Ltd. | 327,500 | 1,304,245 | |
China Unicom (Hong Kong) Ltd. | 884,000 | 1,846,540 | |
China Yuchai International Ltd. | 45,348 | 661,174 | |
CNOOC Limited | 1,523,403 | 2,536,330 | |
COSCO International Holdings Ltd. | 511,277 | 180,624 | |
Dongfeng Motor Group Company Limited | 808,881 | 1,113,949 |
The accompanying notes are an integral part of these financial statements. 35
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
CHINA (continued) | |||
Giant Interactive Group, Inc. (b)(c) | 24,348 | $ 81,079 | |
Great Wall Motor Co., Ltd. (b) | 799,500 | 924,372 | |
Greentown China Holdings Ltd. | 379,500 | 180,872 | |
GZI Real Estate Investment Trust | 233,000 | 100,573 | |
Haitian International Holdings Ltd. | 345,000 | 272,128 | |
Harbin Power Equipment Company Limited, Class H | 706,000 | 587,714 | |
Industrial & Commercial Bank of China Ltd. | 1,179,215 | 578,685 | |
Kingboard Chemical Holdings Ltd. | 29,500 | 80,532 | |
Kowloon Development Co., Ltd. | 199,000 | 170,260 | |
Lianhua Supermarket Holdings Co., Ltd. | 151,699 | 216,318 | |
Orient Overseas (International) Limited | 12,500 | 50,904 | |
Peak Sport Products Co., Limited | 252,000 | 70,574 | |
PetroChina Company Limited | 1,162,000 | 1,440,520 | |
Renhe Commercial Holdings (b) | 5,310,230 | 566,210 | |
Shenzhen International Holdings Limited | 1,300,000 | 65,132 | |
Shenzhen Investment Ltd. | 1,728,000 | 319,663 | |
Sinolink Worldwide Holdings Limited (a) | 2,444,672 | 172,730 | |
Skyworth Digital Holdings Limited (a) | 1,168,000 | 406,629 | |
Soho China Limited | 1,398,500 | 894,701 | |
TCL Communication Technology Holdings Limited | 213,000 | 89,477 | |
Yue Yuen Industrial Holdings Ltd. | 107,571 | 281,220 | |
Zhejiang Expressway Co., Ltd. | 838,000 | 512,433 | |
25,007,630 | |||
CZECH REPUBLIC—0.4% | |||
Komercni Banka AS | 2,715 | 507,883 | |
HUNGARY—0.4% | |||
Egis Gyogyszergyar Nyrt. | 2,555 | 173,132 | |
Richter Gedeon Nyrt. | 2,858 | 393,235 | |
566,367 | |||
INDIA—6.2% | |||
Allahabad Bank | 191,081 | 616,453 | |
Andhra Bank | 303,910 | 763,886 | |
Bajaj Holdings & Investment Limited | 14,136 | 207,011 | |
Balrampur Chini Mills | 542,389 | 509,441 | |
Bank of Baroda | 56,348 | 876,716 | |
Canara Bank | 77,227 | 693,821 | |
Coromandel International Ltd. | 10,462 | 63,883 | |
Grasim Industries Limited | 833 | 40,106 | |
Gujarat Mineral Development Corporation Ltd. | 25,169 | 87,340 | |
Hindalco Industries Ltd. | 218,317 | 580,841 |
36The accompanying notes are an integral part of these financial statements.
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
INDIA (continued) | |||
Indiabulls Financial Services Limited | 142,771 | $ 458,558 | |
Indian Bank | 146,231 | 637,475 | |
Infosys Limited | 1,018 | 52,630 | |
Oil and Natural Gas Corp. Limited | 197,980 | 1,077,319 | |
Oil India Limited | 2,714 | 74,535 | |
Patni Computer Systems | 12,550 | 73,929 | |
Syndicate Bank | 135,173 | 285,664 | |
Tata Chemicals Ltd. | 102,726 | 664,914 | |
Triveni Engineering & Industries Ltd. | 57,354 | 25,530 | |
Triveni Turbines Ltd. | 57,354 | 57,676 | |
United Phosphorus, Inc. | 73,095 | 204,472 | |
Vijaya Bank | 435,135 | 483,335 | |
8,535,535 | |||
INDONESIA—2.5% | |||
PT Aneka Tambang Tbk | 1,084,000 | 184,983 | |
PT Astra Agro Lestari Tbk | 63,500 | 139,426 | |
PT Astra International Tbk | 93,680 | 678,354 | |
PT Charoen Pokphand Indonesia Tbk | 2,717,507 | 741,982 | |
PT Indo Tambangraya Megah Tbk | 165,500 | 739,007 | |
PT International Nickel Indonesia Tbk | 541,000 | 186,180 | |
PT Japfa Comfeed Indonesia Tbk | 217,500 | 107,018 | |
PT Kalbe Farma Tbk | 465,337 | 172,053 | |
PT PP London Sumatra Indonesia Tbk | 1,641,000 | 382,713 | |
PT Sampoerna Agro Tbk | 286,500 | 94,522 | |
3,426,238 | |||
MALAYSIA—4.5% | |||
Affin Holdings Berhad | 191,000 | 148,971 | |
DRB-HICOM Berhad | 997,400 | 543,610 | |
Genting Malaysia Berhad | 777,000 | 854,274 | |
Hong Leong Bank Berhad | 123,093 | 420,271 | |
KLCC Property Holdings Berhad | 137,400 | 137,292 | |
Kuala Lumpur Kepong Berhad | 60,500 | 399,859 | |
Kulim (Malaysia) Berhad | 186,000 | 195,759 | |
Lafarge Malayan Cement Berhad | 156,053 | 320,660 | |
Malayan Banking Berhad | 474,700 | 1,189,538 | |
Media Prima Berhad | 59,900 | 41,278 | |
RHB Capital Berhad | 374,670 | 821,516 | |
SapuraCrest Petroleum Berhad | 212,600 | 245,064 | |
Telekom Malaysia Berhad | 557,005 | 713,595 | |
UMW Holdings | 70,100 | 150,410 | |
6,182,097 |
The accompanying notes are an integral part of these financial statements. 37
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
MEXICO—4.4% | |||
Alfa S.A.B., Series A | 126,294 | $ 1,306,732 | |
America Movil S.A.B. de C.V., Series L | 854,440 | 949,829 | |
Arca Continental S.A.B. de C.V. | 82,163 | 342,434 | |
Fomento Economico Mexicano S.A.B. (c) | 30,354 | 1,967,546 | |
GRUMA, S.A.B. de C.V., Series B (a) | 92,197 | 161,668 | |
Grupo Mexico S.A.B. de C.V., Series B | 453,589 | 1,080,252 | |
Organizacion Soriana S.A.B. de C.V., Series B (b) | 87,648 | 179,465 | |
5,987,926 | |||
PERU—0.4% | |||
Banco Continental S.A. | 106,841 | 192,645 | |
Intergroup Financial Services Corp. | 5,424 | 126,379 | |
Sociedad Minera Cerro Verde S.A.A. | 5,866 | 199,327 | |
518,351 | |||
POLAND—2.0% | |||
Asseco Poland SA | 11,994 | 147,971 | |
Jastrzebska Sp|$$|Aaolka Weglowa SA (a) | 1,966 | 50,943 | |
KGHM Polska Miedz SA | 32,107 | 1,282,185 | |
Polski Koncern Naftowy ORLEN SA (a) | 69,327 | 771,181 | |
Polskie Gornictwo Naftowe i Gazownictwo SA | 347,986 | 429,632 | |
2,681,912 | |||
RUSSIA—6.3% | |||
Evraz Group SA (a)(d) | 22,260 | 350,372 | |
Gazprom (c) | 249,033 | 2,413,130 | |
LUKoil (c) | 42,747 | 2,173,685 | |
Norilsk Nickel Mining and Metallurgical Co. (c) | 80,043 | 1,739,334 | |
Pharmstandard (a)(d) | 5,745 | 109,787 | |
Sberbank of Russia (a)(c) | 18,463 | 158,782 | |
Severstal (d) | 90,408 | 952,900 | |
Tatneft (c) | 28,142 | 699,047 | |
8,597,037 | |||
SINGAPORE—0.9% | |||
ComfortDelGro Corp. Ltd. | 146,000 | 146,987 | |
Singapore Airlines Limited | 53,000 | 465,563 | |
Yangzijiang Shipbuilding Holdings Limited | 842,741 | 576,421 | |
1,188,971 | |||
SOUTH AFRICA—6.3% | |||
Adcock Ingram Holdings Ltd. | 41,794 | 313,374 | |
AVI Limited | 26,166 | 105,470 | |
Barloworld Limited | 94,993 | 714,986 |
38The accompanying notes are an integral part of these financial statements. 35
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
SOUTH AFRICA (continued) | |||
Capital Property Fund | 106,467 | $ 113,492 | |
Datatec Limited (a) | 24,262 | 115,007 | |
Emira Property Fund | 44,784 | 65,160 | |
FirstRand Limited | 85,575 | 209,116 | |
Fountainhead Property Trust Management Ltd. | 201,541 | 168,354 | |
Gold Fields Ltd. (c) | 75,297 | 1,153,550 | |
Imperial Holdings Limited | 68,943 | 904,685 | |
Investec Limited | 99,230 | 546,827 | |
Kumba Iron Ore Limited | 4,788 | 254,827 | |
Liberty Holdings Limited | 15,315 | 152,754 | |
Life Healthcare Group Holdings Ltd. | 339,946 | 817,998 | |
Mondi Limited | 16,568 | 121,253 | |
MTN Group Limited | 22,055 | 364,341 | |
Nampak Limited | 69,015 | 179,577 | |
Reunert Limited | 31,269 | 229,427 | |
RMB Holdings Ltd. | 202,961 | 642,481 | |
Sanlam Limited | 353,539 | 1,192,311 | |
Santam Limited | 7,287 | 125,376 | |
Sasol Ltd. | 2,351 | 98,141 | |
Wilson Bayly Holmes-Ovcon Limited | 7,649 | 99,180 | |
8,687,687 | |||
SOUTH KOREA—16.4% | |||
BS Financial Group, Inc. (a) | 88,216 | 984,712 | |
CJ CheilJedang Corp. | 3,730 | 930,877 | |
Daelim Industrial Co., Ltd. | 11,588 | 949,231 | |
Daishin Securities Company | 7,164 | 62,029 | |
Daum Communications Corp. | 4,592 | 558,968 | |
DGB Financial Group, Inc. (a) | 33,171 | 392,798 | |
Dongkuk Steel Mill Company, Ltd. | 36,790 | 707,350 | |
GS Home Shopping, Inc. | 1,976 | 179,476 | |
Halla Climate Control Corp. | 23,544 | 489,646 | |
Hana Financial Group, Inc. | 32,730 | 972,412 | |
Hanwha Chemical Corporation | 26,569 | 585,260 | |
Hyundai Motor Company | 11,300 | 2,023,938 | |
Kangwon Land, Inc. | 51,278 | 1,188,311 | |
Kia Motors Corporation | 11,004 | 671,608 | |
Korea Exchange Bank | 79,070 | 471,178 | |
KP Chemical Corp. | 74,771 | 974,267 | |
KT&G Corporation | 6,727 | 419,706 | |
LG Corp. | 11,437 | 586,388 | |
NEOWIZ Games Corporation (a) | 21,453 | 1,201,900 |
The accompanying notes are an integral part of these financial statements. 39
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
SOUTH KOREA (continued) | |||
Nong Shim Co., Ltd. | 826 | $ 149,697 | |
Pohang Iron and Steel Company (POSCO) | 351 | 110,539 | |
Samsung Electronics Co., Ltd. | 6,415 | 4,574,169 | |
SeAH Besteel Corporation | 6,270 | 333,712 | |
Shinhan Financial Group Co., Ltd. | 38,203 | 1,362,019 | |
SK Holdings Co., Ltd. | 6,149 | 702,042 | |
SK Innovation Co., Ltd. | 7,205 | 868,478 | |
22,450,711 | |||
TAIWAN—13.9% | |||
Advantech Co., Ltd. | 82,500 | 220,361 | |
ASUSTeK Computer, Inc. | 161,040 | 1,220,681 | |
Career Technology (Mfg.) Co. Ltd. | 341,000 | 556,118 | |
Chunghwa Telecom Co., Ltd. | 501,600 | 1,670,628 | |
Coretronic Corp. | 243,000 | 188,978 | |
Eternal Chemical Co., Ltd. | 310,595 | 239,507 | |
Farglory Land Development Co., Ltd. | 221,000 | 362,592 | |
Formosa Chemicals & Fiber Corporation | 251,000 | 655,606 | |
Fubon Financial Holding Co., Ltd. | 759,988 | 800,512 | |
HTC Corporation | 60,350 | 1,356,514 | |
Huaku Development Co., Ltd. | 184,359 | 395,638 | |
King Yuan Electronics Co., Ltd. | 180,000 | 65,267 | |
Lite-On Technology Corp. | 802,675 | 740,120 | |
Pou Chen Corporation | 925,694 | 671,299 | |
Powertech Technology, Inc. | 31,247 | 67,672 | |
President Chain Store Corp. | 257,000 | 1,463,150 | |
Radiant Opto-Electronics Corporation | 254,360 | 727,816 | |
SoftWorld International Corp. | 119,102 | 290,769 | |
Taiwan Cement Corporation | 98,521 | 106,361 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | 1,623,470 | 3,729,053 | |
TECO Electric & Machinery Co., Ltd. | 691,000 | 375,260 | |
Tripod Technology Corporation | 72,150 | 191,295 | |
U-Ming Marine Transport Corporation | 314,996 | 462,546 | |
Uni-President Enterprises Corporation | 612,680 | 802,163 | |
United Microelectronics Corporation | 2,417,022 | 904,153 | |
Winbond Electronics Corporation (a) | 1,118,000 | 224,517 | |
Wintek Corporation (a) | 294,779 | 233,599 | |
Yageo Corporation | 1,255,000 | 354,571 | |
19,076,746 |
40The accompanying notes are an integral part of these financial statements.
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
THAILAND—0.6% | |||
CP ALL PCL | 341,035 | $ 526,610 | |
Siam Makro PCL | 11,800 | 82,754 | |
TISCO Financial Group PCL | 216,868 | 251,158 | |
860,522 | |||
TURKEY—2.2% | |||
Arcelik AS | 125,377 | 494,963 | |
Eis Eczacibasi Ilac Ve Sinai | 131,796 | 152,821 | |
Ford Otomotiv Sanayi AS | 27,935 | 196,609 | |
Selcuk Ecza Deposu Ticaret Ve Sanayi AS | 93,444 | 87,185 | |
Tekfen Holding AS | 157,916 | 485,450 | |
Tofas Turk Otomobil Fabrikasi AS | 158,766 | 568,550 | |
Tupras—Turkiye Petrol Rafinerileri AS | 6,765 | 140,466 | |
Turkiye Sise ve Cam Fabrikalari AS | 379,997 | 729,581 | |
Ulker Biskuvi Sanayi AS | 74,605 | 222,101 | |
3,077,726 | |||
TOTAL COMMON STOCK (Cost $141,100,697) | 129,978,819 | ||
Preferred Stock—5.2% | |||
BRAZIL—5.2% | |||
Banco Bradesco SA | 24,527 | 367,325 | |
Banco do Estado do Rio Grande do Sul SA | 96,944 | 838,321 | |
Eletropaulo Metropolitana SA | 42,180 | 648,800 | |
Industrias Klabin de Papel e Celulose | 279,686 | 786,038 | |
Itau Unibanco Holding SA | 46,822 | 735,133 | |
Metalurgica Gerdau SA | 76,820 | 695,854 | |
Suzano Papel e Celulose SA | 109,640 | 495,387 | |
Telecomunicacoes de Sao Paulo SA | 5,808 | 156,324 | |
Vale SA, Class A | 114,371 | 2,424,956 | |
TOTAL PREFERRED STOCK (Cost $8,933,028) | 7,148,138 | ||
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED) (Cost $150,033,725) | 137,126,957 |
The accompanying notes are an integral part of these financial statements. 41
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Par Value | Value | ||
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—2.1% | |||
Money Market—1.9% | |||
JP Morgan Prime Money Market Fund—Inst. (Cost $2,554,294) | $2,554,294 | $ 2,554,294 | |
TOTAL INVESTMENTS—101.9% (Cost $152,588,019) | 139,681,251 | ||
OTHER ASSETS & LIABILITIES (Net)—(1.9%) | (2,545,157) | ||
NET ASSETS—100% | $137,136,094 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was out on loan. |
(c) | ADR—American Depositary Receipts |
(d) | GDR—Global Depositary Receipts |
(e) | NVDR—Non-Voting Depository Receipts |
The percentage of each investment category is calculated as a percentage of net assets. |
SECTOR ALLOCATIONS (as a percentage of Total Net Assets) | |
Financials | 21.3% |
Energy | 15.0% |
Materials | 13.7% |
Information Technology | 13.2% |
Consumer Discretionary | 9.6% |
Consumer Staples | 9.4% |
Industrials | 7.9% |
Telecommunication Services | 6.6% |
Health Care | 1.9% |
Utilities | 1.4% |
Cash and Other Assets (Net) | 0.0% |
42The accompanying notes are an integral part of these financial statements.
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—89.5%
Shares | Value | ||
AUSTRALIA—1.9% | |||
BHP Billiton Ltd. | 208,300 | $ 7,107,920 | |
BELGIUM—2.2% | |||
KBC Groep N.V. (a) | 167,985 | 3,953,651 | |
Solvay S.A. | 45,180 | 4,314,142 | |
8,267,793 | |||
CANADA—1.9% | |||
Methanex Corporation | 341,607 | 7,148,224 | |
CHINA—1.0% | |||
Guangdong Investment Limited | 5,794,000 | 3,609,992 | |
FINLAND—5.1% | |||
Kone OYJ, Class B | 210,900 | 10,154,287 | |
Konecranes OYJ | 148,280 | 3,029,215 | |
YIT OYJ | 384,617 | 5,860,683 | |
19,044,185 | |||
FRANCE—5.2% | |||
Christian Dior S.A. | 67,973 | 7,729,295 | |
Imerys S.A. | 69,252 | 3,517,318 | |
Maurel et Prom | 377,300 | 6,246,470 | |
Transgene S.A. (a) | 142,827 | 1,582,805 | |
19,075,888 | |||
GERMANY—11.3% | |||
BASF SE | 130,100 | 8,063,558 | |
Deutsche Telekom AG | 600,500 | 7,132,023 | |
Hannover Rueckvers | 156,800 | 7,178,363 | |
Muenchener Rueckvers AG | 41,100 | 5,171,011 | |
Symrise AG | 342,950 | 8,048,521 | |
Wincor Nixdorf AG | 131,700 | 5,986,766 | |
41,580,242 | |||
INDIA—2.5% | |||
Infosys Technologies Ltd. (b) | 48,800 | 2,492,216 | |
State Bank of India (c) | 81,050 | 6,848,725 | |
9,340,941 | |||
IRELAND—5.3% | |||
CRH plc | 349,388 | 5,502,304 | |
Greencore Group plc | 9,069,740 | 7,904,432 | |
Smurfit Kappa Group plc (a) | 998,510 | 6,043,030 | |
19,449,766 |
The accompanying notes are an integral part of these financial statements. 43
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
ISRAEL—1.8% | |||
Teva Pharmaceuticals SP (ADR)(b) | 178,491 | $ 6,643,435 | |
ITALY—1.8% | |||
Trevi Finanziaria SpA | 659,726 | 6,827,505 | |
JAPAN—18.0% | |||
Asahi Breweries Ltd. | 476,600 | 10,201,368 | |
Iino Kaiun Kaisha Ltd. | 1,140,300 | 6,098,178 | |
Kansai Electric Power Company, Inc. | 347,200 | 6,075,099 | |
KDDI Corporation | 1,314 | 9,142,056 | |
Meiji Holdings Co., Ltd. | 208,000 | 9,949,117 | |
Nichirei Corporation | 2,031,000 | 9,464,291 | |
Nippon Yusen Kabushiki Kaisha | 2,157,000 | 5,907,671 | |
Showa Denko K.K. | 4,739,000 | 9,473,079 | |
66,310,859 | |||
NORWAY—2.4% | |||
Camillo Eitzen & Co. ASA (a) | 588,679 | 97,826 | |
DnB NOR ASA | 856,692 | 8,718,018 | |
8,815,844 | |||
SOUTH AFRICA—3.5% | |||
Metorex Ltd. (a) | 4,915,693 | 4,890,719 | |
Sasol Ltd. | 190,535 | 7,953,736 | |
12,844,455 | |||
SOUTH KOREA—4.9% | |||
Samsung Electronics Company Ltd. | 16,285 | 11,611,901 | |
SK Telecom Company Ltd. | 51,793 | 6,572,772 | |
18,184,673 | |||
SWEDEN—7.2% | |||
Duni AB | 1,179,500 | 8,948,641 | |
Investor AB, Class B | 502,056 | 8,972,317 | |
Svenska Handelsbanken AB, Class A | 328,500 | 8,480,930 | |
26,401,888 | |||
SWITZERLAND—2.1% | |||
Novartis AG | 138,400 | 7,768,751 | |
THAILAND—1.4% | |||
Thai Oil PCL | 3,173,900 | 5,181,773 |
44The accompanying notes are an integral part of these financial statements.
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
UNITED KINGDOM—10.0% | |||
Barratt Developments plc (a) | 5,339,856 | $ 6,544,657 | |
BBA Aviation plc | 652,689 | 1,707,990 | |
Bellway plc | 802,818 | 7,801,388 | |
Lloyds TSB Group plc (a) | 6,182,217 | 3,367,428 | |
Persimmon plc (a) | 1,127,619 | 8,024,448 | |
Taylor Wimpey plc (a) | 17,610,191 | 9,629,339 | |
37,075,250 | |||
TOTAL COMMON STOCK | |||
(Cost $421,014,534) | 330,679,384 | ||
Short-Term Investments—10.2% | |||
Par Value | Value | ||
Commercial Paper—7.7% | |||
HSBC Finance Corp, 0.03%, due 10/05/2011 (Cost $9,912,000) | $9,912,000 | 9,912,000 | |
Toyota Credit DE PR Corp., 0.07%, due 10/3/2011 (Cost $8,843,000) | $8,843,000 | 8,843,000 | |
Toyota Credit DE PR Corp., 0.07%, due 10/4/2011 (Cost $9,912,000) | $9,912,000 | 9,912,000 | |
Total Commercial Paper | 28,667,000 | ||
Money Market—2.5% | |||
State Street Global Advisors FDS (Cost $9,190,143) | $9,190,143 | 9,190,143 | |
TOTAL SHORT TERM INVESTMENTS—10.2% | 37,857,143 | ||
TOTAL INVESTMENTS—99.7% (Cost $458,871,677) | 368,536,527 | ||
OTHER ASSETS & LIABILITIES (NET)—0.3% | 947,355 | ||
NET ASSETS—100% | $369,483,882 |
(a) | Non-income producing security |
(b) | ADR—American Depository Receipts |
(c) | GDR—Global Depository Receipts |
The percentage of each investment category is calculated as a percentage of net assets. |
The accompanying notes are an integral part of these financial statements. 45
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
SECTOR ALLOCATIONS (as a percentage of Total Net Assets) | |
Materials | 17.3% |
Financials | 14.3% |
Consumer Discretionary | 13.2% |
Industrials | 10.7% |
Consumer Staples | 10.2% |
Telecommunication Services | 6.2% |
Information Technology | 5.4% |
Energy | 5.3% |
Health Care | 4.3% |
Utilities | 2.6% |
Other Assets & Liabilities | 10.5% |
46The accompanying notes are an integral part of these financial statements.
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2011 (Unaudited)
Common Stock—84.2%
Shares | Value | ||
AUSTRALIA—4.9% | |||
Austal Limited | 475,330 | $1,018,955 | |
Industrea Limited | 929,992 | 1,105,544 | |
Sigma Pharmaceuticals Ltd. | 3,204,600 | 2,029,665 | |
4,154,164 | |||
BELGIUM—2.8% | |||
Agfa-Gevaert Group (a) | 288,540 | 760,592 | |
Kinepolis Group | 21,100 | 1,580,620 | |
2,341,212 | |||
BRAZIL—2.5% | |||
Equatorial Energia SA | 276,385 | 1,732,775 | |
Redentor Energia SA | 124,485 | 400,989 | |
2,133,764 | |||
CANADA—1.3% | |||
Astral Media, Inc. | 35,800 | 1,122,239 | |
CHINA—8.3% | |||
China Fishery Group Limited | 1,080,972 | 922,133 | |
China Hongxing Sports Limited | 10,258,400 | 236,514 | |
Samson Holding Ltd. | 7,693,300 | 761,008 | |
Sichuan Expressway Company Limited | 2,696,060 | 1,108,321 | |
Texwinca Holdings Limited | 1,226,300 | 1,271,324 | |
VST Holdings Ltd. (a) | 6,200,500 | 605,377 | |
VTech Holdings Limited | 115,700 | 1,085,031 | |
Xinhua Winshare Publishing and Media Co., Ltd. | 2,515,300 | 1,014,625 | |
7,004,333 | |||
FRANCE—1.4% | |||
Bonduelle SA | 13,900 | 1,212,500 | |
INDIA—3.3% | |||
KRBL Ltd. | 742,200 | 369,774 | |
LIC Housing Finance Ltd. | 114,800 | 493,072 | |
Manappuram General Finance and Leasing Ltd. | 1,064,700 | 1,153,289 | |
NIIT Technologies Ltd. | 78,500 | 312,557 | |
South Indian Bank Ltd. | 489,520 | 222,895 | |
Usha Martin Group Ltd. | 323,760 | 216,171 | |
2,767,758 | |||
IRELAND—6.6% | |||
Glanbia plc | 244,100 | 1,460,890 | |
Greencore Group plc | 1,663,423 | 1,449,665 | |
IFG Group plc | 755,185 | 1,269,560 |
The accompanying notes are an integral part of these financial statements. 47
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
IRELAND (continued) | |||
United Drug plc | 449,545 | $1,390,563 | |
5,570,678 | |||
ITALY—3.0% | |||
De’Longhi SpA | 156,410 | 1,430,419 | |
Trevi Finanziaria SpA | 103,300 | 1,069,052 | |
2,499,471 | |||
JAPAN—8.8% | |||
Accordia Golf Co., Ltd. | 1,653 | 1,304,548 | |
Chugoku Marine Paints Ltd. | 184,100 | 1,352,552 | |
DaiichiKosho Co., Ltd. | 83,600 | 1,658,110 | |
Iino Kaiun Kaisha Ltd. | 286,000 | 1,529,491 | |
Nichirei Corporation | 333,000 | 1,551,753 | |
7,396,454 | |||
LUXEMBOURG—0.2% | |||
Transcom WorldWide S.A. (b) | 147,101 | 175,761 | |
NETHERLANDS—1.2% | |||
Dockwise Ltd. (a) | 80,444 | 1,019,840 | |
NORWAY—3.7% | |||
ABG Sundal Collier Holding ASA | 1,239,800 | 864,475 | |
SpareBank 1SMN | 152,104 | 1,024,094 | |
SpareBank Nord-Norge | 209,731 | 1,221,654 | |
3,110,223 | |||
PHILIPPINES—2.5% | |||
Manila Water Company, Inc. | 4,803,770 | 2,085,204 | |
SINGAPORE—3.6% | |||
Breadtalk Group Ltd. | 2,815,100 | 1,027,646 | |
M1 Ltd. | 1,038,900 | 1,964,105 | |
2,991,751 | |||
SOUTH AFRICA—3.5% | |||
Clicks Group Limited | 260,000 | 1,220,135 | |
Metorex Limited (a) | 1,753,700 | 1,744,790 | |
2,964,925 | |||
SWEDEN—4.1% | |||
Duni AB | 156,400 | 1,186,577 | |
Loomis AB | 104,400 | 1,232,098 | |
Nolato AB | 148,500 | 1,066,771 | |
3,485,446 |
48The accompanying notes are an integral part of these financial statements.
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Shares | Value | ||
SWITZERLAND—2.3% | |||
Bobst Group SA (a) | 33,500 | $ 718,122 | |
Vetropack Holding AG | 726 | 1,216,952 | |
1,935,074 | |||
THAILAND—2.9% | |||
Hana Microelectronics PCL | 1,766,680 | 960,492 | |
Thai Union Frozen Products PCL | 871,395 | 1,450,690 | |
2,411,182 | |||
UNITED KINGDOM—17.3% | |||
Alternative Networks plc | 649,100 | 2,829,308 | |
BBA Aviation plc | 396,158 | 1,036,687 | |
Character Group plc | 496,900 | 1,304,195 | |
Clarkson plc | 72,300 | 1,265,088 | |
CSR plc | 214,200 | 702,754 | |
Galliford Try plc | 271,628 | 1,867,203 | |
Halfords Group plc | 239,132 | 1,091,647 | |
Hampson Industries plc | 1,150,600 | 170,770 | |
Healthcare Locums plc | 792,810 | 69,362 | |
Keller Group plc | 124,500 | 650,624 | |
The Restaurant Group plc | 291,900 | 1,255,465 | |
Vitec Group plc | 145,221 | 1,202,457 | |
Wetherspoon (J.D.) plc | 196,400 | 1,195,739 | |
14,641,299 | |||
TOTAL COMMON STOCK (Cost $73,214,044) | 71,023,278 | ||
Preferred Stock—1.9% | |||
GERMANY—1.9% | |||
Dr|$$|Adagerwerk AG (Cost $621,858) | 16,600 | 1,607,424 | |
Warrants—5.3% | |||
India—5.3% | |||
KRBL Limited Derivative (a) | 1,679,000 | 839,500 | |
LIC Housing Finance Derivative | 204,200 | 878,060 | |
NIIT Technologies Derivative (a) | 276,900 | 1,102,062 | |
South Indian Bank Derivative (a) | 2,535,250 | 1,166,215 | |
Usha Martin Group Derivative (a) | 807,100 | 540,757 | |
(Cost $2,692,091) | 4,526,594 |
The accompanying notes are an integral part of these financial statements. 49
PEAR TREE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
September 30, 2011 (Unaudited)
Short Term Investments—8.4%
Par Value | Value | ||
Money Market—8.4% | |||
State Street Global Advisors FDS (Cost $7,070,987) | $7,070,987 | $ 7,070,987 | |
TOTAL SHORT TERM INVESTMENTS—8.4% | 7,070,987 | ||
TOTAL INVESTMENTS—99.8% (Cost $83,598,980) | 84,228,283 | ||
OTHER ASSETS & LIABILITIES (NET)—0.2% | 192,565 | ||
NET ASSETS—100% | $84,420,848 |
(a) | Non-income producing security |
(b) | SDR—Special Depository Receipts |
The percentage of each investment category is calculated as a percentage of net assets. |
SECTOR ALLOCATIONS (as a percentage of Total Net Assets) | |
Consumer Discretionary | 22.3% |
Industrials | 15.4% |
Consumer Staples | 12.2% |
Financials | 9.8% |
Health Care | 6.9% |
Information Technology | 6.9% |
Materials | 6.0% |
Telecommunication Services | 5.7% |
Utilities | 5.0% |
Energy | 1.2% |
Cash and Other Assets | 8.6% |
50The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
This page intentionally left blank. 51
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2011 (Unaudited)
Small Cap | Micro-Cap | ||
Assets: | |||
Investments at value (Includes collateral from securities on loan of $4,433,006; $0; $30,961,890; $2,554,294; $0: $0, respectively)* (Note 2) | $92,523,832 | $662,099 | |
Repurchase agreements/commercial paper | 1,642,284 | 45,396 | |
Foreign currency at value (Cost $277,127 for Emerging Markets, $119,462 for Foreign Value, and $40,154 for Foreign Value Small Cap) | — | — | |
Cash | — | — | |
Dividend, interest and foreign tax reclaims receivable | 131,491 | 1,337 | |
Receivable for investments sold | 1,416,392 | 2,024 | |
Receivable for shares of beneficial interest sold | 3,232 | — | |
Other assets | 13,864 | 3,921 | |
Total Assets | $95,731,095 | $714,777 | |
Liabilities: | |||
Payable for investments purchased | $ 838,523 | $ — | |
Payable for shares of beneficial interest repurchased | 3,183 | — | |
Payable for compensation of manager (Note 3) | 80,126 | 353 | |
Payable for distribution fees (Note 3) | 18,813 | 20 | |
Payable to custodian | 11,509 | 1,697 | |
Payable to transfer agent (Note 3) | 7,035 | 113 | |
Payable for collateral received for securities loaned | 4,433,006 | — | |
Payable for foreign capital gain tax | — | — | |
Unrealized gain/(loss) on forward foreign currency contracts (Note 2) | — | — | |
Other accrued expenses and liabilities | 16,951 | 2,445 | |
Total Liabilities | $ 5,409,146 | $ 4,628 | |
Net Assets | $90,321,949 | $710,149 |
* | Includes securities on loan to brokers with market value of $4,317,714; $0; $29,835,562; $2,361,004; $0; $0, respectively. |
52The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
September 30, 2011 (Unaudited)
Quality | Emerging Markets | Foreign Value | Foreign Value Small Cap | |||
$100,275,579 | $139,681,251 | $339,869,528 | $84,228,283 | |||
2,000,991 | — | 28,667,000 | — | |||
— | 267,089 | 119,461 | 40,098 | |||
— | — | 49,362 | — | |||
175,751 | 194,255 | 1,264,988 | 283,624 | |||
2,049 | — | — | — | |||
— | 31,170 | 517,326 | 7,052 | |||
24,289 | 7,239 | 89,842 | 14,557 | |||
$102,478,659 | $140,181,004 | $370,577,507 | $84,573,614 | |||
1,523,455 | — | — | — | |||
138,610 | 60,194 | 303,517 | — | |||
49,252 | 123,540 | 308,869 | 72,391 | |||
14,396 | 28,582 | 59,709 | 13,797 | |||
12,788 | 36,031 | 8,207 | 10,148 | |||
12,473 | 18,483 | 62,243 | 13,019 | |||
30,961,890 | 2,554,294 | — | — | |||
— | 10,217 | 344,687 | 41,561 | |||
— | — | — | — | |||
3,999 | 213,569 | 6,393 | 1,850 | |||
$32,716,863 | $ 3,044,910 | $ 1,093,625 | $ 152,766 | |||
$69,761,795 | $137,136,094 | $369,483,882 | $84,420,848 |
The accompanying notes are an integral part of these financial statements. 53
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
September 30, 2011 (Unaudited)
Small Cap | Micro Cap | ||
Net Assets Consist Of: | |||
Shares of beneficial interest | $110,481,458 | $764,758 | |
Undistributed net investment income | 81,002 | 860 | |
Accumulated net realized gain/(loss) on investments and foreign denominated assets, liabilities and currency | (25,300,891) | (164) | |
Unrealized appreciation/(depreciation) of investments and foreign denominated assets, liabilities and currency | 5,060,380 | (55,305) | |
Net Assets | $ 90,321,949 | $710,149 | |
Investments at cost | $ 89,105,737 | $762,800 | |
Net assets | |||
Ordinary Shares | $ 84,888,472 | $249,391 | |
Institutional Shares | $ 5,433,477 | $460,758 | |
Shares of beneficial interest outstanding (unlimited number of shares authorized) | |||
Ordinary Shares | 5,346,214 | 26,288 | |
Institutional Shares | 302,635 | 50,170 | |
Net asset value and offering price per share** | |||
Ordinary Shares | $ 15.88 | $ 9.49 | |
Institutional Shares | $ 17.95 | $ 9.18 |
** | Prior to August 07, 2008, a deferred sales charge of 1% of the net asset value of the Ordinary Shares redeemed was withheld and paid to the Distributor. The fee was eliminated on this date. No deferred sales charge is withheld from redemptions of Institutional Shares. Prior to July 30, 2007 a redemption fee of 2% was withheld and paid to the Funds on redemptions of Institutional Shares made within 60 days of purchase. The fee was eliminated on this date. |
54The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
September 30, 2011 (Unaudited)
Quality | Emerging Markets | Foreign Value | Foreign Value Small Cap | |||
$ 83,886,796 | $171,652,498 | $ 671,136,803 | $75,377,123 | |||
528,083 | 4,954,368 | 4,650,383 | 1,955,062 | |||
(11,864,846) | (26,535,400) | (215,587,639) | 6,506,077 | |||
(2,788,238) | (12,935,372) | (90,715,665) | 582,586 | |||
$ 69,761,795 | $137,136,094 | $ 369,483,882 | $84,420,848 | |||
$105,064,808 | $152,588,019 | $ 458,871,677 | $83,598,980 | |||
$ 68,795,545 | $126,908,255 | $ 286,311,456 | $64,052,041 | |||
$ 966,250 | $ 10,227,839 | $ 83,172,426 | $20,368,807 | |||
5,748,100 | 6,460,843 | 24,365,676 | 7,021,489 | |||
77,455 | 512,868 | 7,070,384 | 2,226,435 | |||
$ 11.97 | $ 19.64 | $ 11.75 | $ 9.12 | |||
$ 12.47 | $ 19.94 | $ 11.76 | $ 9.15 |
The accompanying notes are an integral part of these financial statements. 55
PEAR TREE FUNDS
STATEMENT OF OPERATIONS
6 Months Ended September 30, 2011 (Unaudited)
Small Cap | Micro Cap | ||
Investment Income: | |||
Dividends* | $ 668,237 | $ 1,567 | |
Interest | 82 | — | |
Sec Lending Income | 43,231 | — | |
Miscellaneous (Note 2) | — | — | |
Total Investment Income | 711,550 | 1,567 | |
Expenses: | |||
Compensation of manager (Note 3) | 548,889 | 353 | |
Distribution fees, Ordinary Shares (Note 3) | 128,538 | 20 | |
Administrative Fees (Note 3) | 19,758 | — | |
Custodian and fund accounting fees | 32,688 | 1,697 | |
Regulatory and Compliance (Note 3) | 12,377 | — | |
Transfer agent fees (Note 3): | |||
Ordinary Shares | 86,021 | 15 | |
Institutional Shares | 5,769 | 98 | |
Audit and legal | 20,489 | 2,184 | |
Registration fees | 15,192 | 250 | |
Insurance | 4,526 | — | |
Compensation of trustees (Note 3) | 7,332 | — | |
Printing | 6,914 | — | |
Miscellaneous | 6,596 | 11 | |
Total expenses before waivers/reimbursements/reductions | 895,089 | 4,628 | |
Waivers and/or reimbursements of expenses (Note 3) | — | (3,921) | |
Fees reduced by credits allowed by custodian (Note 3) | — | — | |
Expenses, Net | 895,089 | 707 | |
Net investment income/(loss) | (183,539) | 860 | |
Realized and unrealized gain/(loss) on investments, foreign currency, and foreign translation: | |||
Net realized gain/(loss) (Note 2) on: | |||
Investments | 5,765,629 | (164) | |
Securities sold short transactions | — | — | |
Foreign denominated assets, liabilities, and currency | — | — | |
Future Contracts | |||
Change in unrealized appreciation/(depreciation) of: | |||
Investments | (28,945,905) | (55,305) | |
Securities sold short transactions | — | — | |
Foreign denominated assets, liabilities, and currency | — | — | |
Net realized and unrealized gain/(loss) on investment and foreign currency | (23,180,276) | (55,469) | |
Net increase/(decrease) in net assets resulting from operations | $(23,363,815) | $(54,609) |
* | Dividends are net of withholding taxes of $3,759 for Small Cap, $6 for Micro Cap and $31,519 for Quality, net of foreign withholding taxes of $515,450 for Emerging Markets, $802,522 for Foreign Value, $134,659 for Foreign Value Small Cap. |
56The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF OPERATIONS (continued)
6 Months Ended September 30, 2011 (Unaudited)
Quality | Emerging Markets | Foreign Value | Foreign Value Small Cap | |||
$ 950,339 | $ 4,462,512 | $ 5,615,913 | $ 2,595,157 | |||
45 | — | 7,505 | 865 | |||
30,269 | 40,144 | — | — | |||
— | 45 | — | — | |||
980,653 | 4,502,701 | 5,623,418 | 2,596,022 | |||
347,207 | 876,358 | 2,133,551 | 499,720 | |||
85,621 | 204,736 | 429,341 | 95,211 | |||
11,907 | 31,404 | 76,212 | 17,759 | |||
24,000 | 141,830 | 102,500 | 41,000 | |||
7,429 | 19,662 | 47,689 | 11,104 | |||
57,076 | 136,304 | 287,060 | 63,647 | |||
798 | 9,494 | 68,813 | 19,441 | |||
12,307 | 41,170 | 78,959 | 18,388 | |||
12,366 | 28,644 | 25,458 | 13,464 | |||
2,728 | 7,195 | 17,453 | 4,065 | |||
4,397 | 11,647 | 28,247 | 6,576 | |||
4,137 | 10,979 | 26,620 | 6,196 | |||
3,627 | 10,947 | 27,592 | 5,832 | |||
573,600 | 1,530,370 | 3,349,495 | 802,403 | |||
(53,249) | — | — | — | |||
— | — | — | 0 | |||
520,351 | 1,530,370 | 3,349,495 | 802,403 | |||
460,302 | 2,972,331 | 2,273,924 | 1,793,619 | |||
645,468 | 9,583,363 | 6,661,092 | (874,253) | |||
— | — | — | — | |||
— | (98,255) | 65,713 | (16,582) | |||
(3,519,604) | (51,482,838) | (100,116,432) | (19,798,313) | |||
— | — | — | — | |||
— | 121,459 | 403,612 | (33,428) | |||
(2,874,136) | (41,876,271) | (92,986,015) | (20,722,576) | |||
$(2,413,834) | $(38,903,940) | $(90,712,091) | $(18,928,957) |
The accompanying notes are an integral part of these financial statements. 57
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS
Small Cap | |||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||
Increase (Decrease) in Net Assets: | |||
Operations: | |||
Net investment income/(loss) | $(183,539) | $264,891 | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | 5,765,629 | 6,902,815 | |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (28,945,905) | 14,682,547 | |
Net increase/(decrease) from operations | $(23,363,815) | $21,850,253 | |
Distributions to shareholders from: | |||
Net investment income | |||
Ordinary shares | $ — | $ (529,869) | |
Institutional shares | — | (46,439) | |
Net realized gains | |||
Ordinary shares | — | — | |
Institutional shares | — | — | |
Total distributions | $ — | $(576,308) | |
Fund share transactions (Note 8) | (7,795,637) | (6,382,018) | |
Contributions to capital from investment manager/brokers | — | — | |
Increase/(decrease) in net assets | $(31,159,452) | $14,891,927 | |
Net assets beginning of period | 121,481,401 | 106,589,474 | |
Net assets end of period* | $90,321,949 | $121,481,401 | |
*Includes undistributed net investment income/(loss) of: | $ 81,002 | $264,541 |
58The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Micro-Cap | |||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||
Increase (Decrease) in Net Assets: | |||
Operations: | |||
Net investment income/(loss) | $ 860 | $— | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | (164) | — | |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (55,305) | — | |
Net increase/(decrease) from operations | $(54,609) | $— | |
Distributions to shareholders from: | |||
Net investment income | |||
Ordinary shares | $ — | $— | |
Institutional shares | — | — | |
Net realized gains | |||
Ordinary shares | — | — | |
Institutional shares | — | — | |
Total distributions | $ — | $— | |
Fund share transactions (Note 8) | 764,758 | — | |
Contributions to capital from investment manager/brokers | — | — | |
Increase/(decrease) in net assets | $710,149 | $— | |
Net assets beginning of period | — | — | |
Net assets end of period* | $710,149 | $— | |
*Includes undistributed net investment income/(loss) of: | $ 860 | $— |
The accompanying notes are an integral part of these financial statements. 59
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Quality | |||||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 460,302 | $ | 439,107 | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | 645,468 | 9,064,001 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (3,519,604) | (4,514,062) | |||
Net increase/(decrease) from operations | $ | (2,413,834) | $ | 4,989,046 | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | — | $ | (505,181) | |
Institutional shares | — | (3,797) | |||
Net realized gains | |||||
Ordinary shares | — | — | |||
Institutional shares | — | — | |||
Total distributions | $ | — | $ | (508,978) | |
Fund share transactions (Note 8) | 8,446,275 | 4,444,910 | |||
Contributions to capital from investment manager/brokers | — | — | |||
Increase/(decrease) in net assets | $ | 6,032,441 | $ | 8,924,978 | |
Net assets beginning of period | 63,729,354 | 54,804,376 | |||
Net assets end of period* | $ | 69,761,795 | $ | 63,729,354 | |
* Includes undistributed net investment income/(loss) of: | $ | 528,083 | $ | 67,780 |
60The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Emerging Markets | |||||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 2,972,331 | $ | 2,459,680 | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | 9,485,108 | 41,413,000 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (51,361,379) | (5,430,264) | |||
Net increase/(decrease) from operations | $ | (38,903,940) | $ | 38,442,416 | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | — | $ | (2,386,187) | |
Institutional shares | — | (114,101) | |||
Net realized gains | |||||
Ordinary shares | — | — | |||
Institutional shares | — | — | |||
Total distributions | $ | — | $ | (2,500,288) | |
Fund share transactions (Note 8) | (11,612,729) | (80,263,559) | |||
Contributions to capital from investment manager/brokers | — | 604 | |||
Increase/(decrease) in net assets | $ | (50,516,669) | $ | (44,320,827) | |
Net assets beginning of period | 187,652,763 | 231,973,590 | |||
Net assets end of period* | $ | 137,136,094 | $ | 187,652,763 | |
*Includes undistributed net investment income/(loss) of: | $ | 4,954,368 | $ | 1,982,045 |
The accompanying notes are an integral part of these financial statements. 61
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Foreign Value | |||||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 2,273,924 | $ | 2,465,544 | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | 6,726,805 | 10,976,410 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (99,712,820) | 54,912,820 | |||
Net increase/(decrease) from operations | $ | (90,712,091) | $ | 68,354,774 | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | — | $ | (3,725,640) | |
Institutional shares | — | (976,013) | |||
Net realized gains | |||||
Ordinary shares | — | — | |||
Institutional shares | — | — | |||
Total distributions | $ | — | $ | (4,701,653) | |
Fund share transactions (Note 8) | 11,855,459 | (53,005,588) | |||
Contributions to capital from investment manager/brokers | — | 71 | |||
Increase/(decrease) in net assets | $ | (78,856,632) | $ | 10,647,604 | |
Net assets beginning of period | 448,340,514 | 437,692,910 | |||
Net assets end of period* | $ | 369,483,882 | $ | 448,340,514 | |
* Includes undistributed net investment income/(loss) of: | $ | 4,578,319 | $ | 2,376,458 |
62The accompanying notes are an integral part of these financial statements.
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Foreign Value Small Cap | |||||
Semi-Annual Ended September 30, 2011 (Unaudited) | Year Ended March 31, 2011 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 1,793,619 | $ | 857,660 | |
Net realized gain/(loss) on investments Foreign denominated assets, liabilities, and currency | (890,835) | 10,578,029 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | (19,831,741) | 277,560 | |||
Net increase/(decrease) from operations | $ | (18,928,957) | $ | 11,713,249 | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | — | $ | (689,222) | |
Institutional shares | — | (97,556) | |||
Net realized gains | |||||
Ordinary shares | — | (3,107,308) | |||
Institutional shares | — | (314,276) | |||
Total distributions | $ | — | $ | (4,208,362) | |
Fund share transactions (Note 8) | 1,070,220 | (38,298,704) | |||
Contributions to capital from investment manager/brokers | — | — | |||
Increase/(decrease) in net assets | $ | (17,858,737) | $ | (30,793,817) | |
Net assets beginning of period | 102,279,585 | 133,073,402 | |||
Net assets end of period* | $ | 84,420,848 | $ | 102,279,585 | |
*Includes undistributed net investment income/(loss) of: | $ | 1,955,062 | $ | 183,510 |
The accompanying notes are an integral part of these financial statements. 63
PEAR TREE SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | ||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
(unaudited) | |||||||||||||||||
Net Asset Value, Beginning of Period | $ | 19.92 | $ | 16.45 | $ | 10.22 | $ | 19.45 | $ | 23.88 | $ | 22.99 | |||||
Income from Investment Operations: | |||||||||||||||||
Net investment income (loss) (a)(b)(c) | (0.03) | 0.04 | 0.11 | 0.06 | 0.07 | (0.19) | |||||||||||
Net realized and unrealized gain/(loss) on securities | (4.01) | 3.52 | 6.15 | (9.23) | (3.56) | 2.91 | |||||||||||
Total from Investment Operations | (4.04) | 3.56 | 6.26 | (9.17) | (3.49) | 2.72 | |||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | — | (0.09) | (0.03) | — | (0.11) | — | |||||||||||
Distributions from realized capital gains | — | — | — | (0.06) | (0.83) | (1.83) | |||||||||||
Total Distributions | — | (0.09) | (0.03) | (0.06) | (0.94) | (1.83) | |||||||||||
Net Asset Value, End of Period | $ | 15.88 | $ | 19.92 | $ | 16.45 | $ | 10.22 | $ | 19.45 | $ | 23.88 | |||||
Total Return (d) | (20.28)% | 21.69% | 61.27% | (47.11)% | (15.17)% | 12.01% | |||||||||||
Net Assets, End of Period (000’s) | $ | 84,888 | $ | 113,675 | $ | 99,444 | $ | 61,943 | $ | 119,949 | $ | 124,998 | |||||
Ratios and Supplemental Data: | |||||||||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||||||||
Gross | 1.65% | 1.64% | 1.65% | 1.64% | 1.59%* | 1.82% | |||||||||||
Net | 1.65% | 1.64% | 1.65% | 1.64% | 1.59%* | 1.82% | |||||||||||
Ratio of net investment income (loss) to average net assets (c) | (0.35)% | 0.23% | 0.81% | 0.31% | 0.31% | (0.80)% | |||||||||||
Portfolio Turnover | 27% | 71% | 50% | 72% | 39% | 41% |
* | Expense ratio declined from year ended March 31, 2007 to 2008. The prior year was the result of the reduction of the 12b-1 fee from 50 basis points to 25 basis points on June 1, 2007. |
64The accompanying notes are an integral part of these financial statements.
PEAR TREE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | ||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
(unaudited) | |||||||||||||||||
Net Asset Value, Beginning of Period | $ | 22.50 | $ | 18.56 | $ | 11.51 | $ | 21.86 | $ | 26.71 | $ | 25.39 | |||||
Income from Investment Operations: | |||||||||||||||||
Net investment income (loss) (a)(b)(c) | (0.01) | 0.09 | 0.20 | 0.10 | 0.12 | (0.08) | |||||||||||
Net realized and unrealized gain/(loss) on securities | (4.54) | 3.98 | 6.91 | (10.39) | (3.94) | 3.23 | |||||||||||
Total from Investment Operations | (4.55) | 4.07 | 7.11 | (10.29) | (3.82) | 3.15 | |||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | — | (0.13) | (0.06) | — | (0.20) | — | |||||||||||
Distributions from realized capital gains | — | — | — | (0.06) | (0.83) | (1.83) | |||||||||||
Total Distributions | — | (0.13) | (0.06) | (0.06) | (1.03) | (1.83) | |||||||||||
Net Asset Value, End of Period | $ | 17.95 | $ | 22.50 | $ | 18.56 | $ | 11.51 | $ | 21.86 | $ | 26.71 | |||||
Total Return (d) | (20.22)% | 21.98% | 61.83% | (47.04)% | (14.87)% | 12.58% | |||||||||||
Net Assets, End of Period (000’s) | $ | 5,433 | $ | 7,806 | $ | 7,146 | $ | 7,281 | $ | 24,282 | $ | 12,400 | |||||
Ratios and Supplemental Data: | |||||||||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||||||||
Gross | 1.40% | 1.39% | 1.41% | 1.42% | 1.30% | 1.31% | |||||||||||
Net | 1.40% | 1.39% | 1.41% | 1.42% | 1.30% | 1.31% | |||||||||||
Ratio of net investment income (loss) to average net assets (c) | (0.11)% | 0.48% | 1.35% | 0.48% | 0.45% | (0.30)% | |||||||||||
Portfolio Turnover | 27% | 71% | 50% | 72% | 39% | 41% |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. |
(e) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements. 65
PEAR TREE MICRO CAP
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | ||
For the period ended September 30,* | ||
2011 | ||
(unaudited) | ||
Net Asset Value, Beginning of Period | $ | 10.00 |
Income from Investment Operations: | ||
Net investment income (loss) (a)(b)(c) | 0.01 | |
Net realized and unrealized gain/(loss) on securities | (0.52) | |
Total from Investment Operations | (0.51) | |
Less Distributions: | ||
Dividends from net investment income | — | |
Distributions from realized capital gains | — | |
Total Distributions | — | |
Net Asset Value, End of Period* | $ | 9.49 |
Total Return (d) | –5.10% | |
Net Assets, End of Period (000’s) | $ | 249 |
Ratios and Supplemental Data: | ||
Ratios of expenses to average net assets: (e) | ||
Gross | 11.90%** | |
Net | 2.00%** | |
Ratio of net investment income (loss) to average net assets (c) | 3.80%** | |
Portfolio Turnover | 1% |
66The accompanying notes are an integral part of these financial statements.
PEAR TREE MICRO CAP
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | ||
For the period ended September 30,* | ||
2011 | ||
(unaudited) | ||
Net Asset Value, Beginning of Period | $ | 10.00 |
Income from Investment Operations: | ||
Net investment income (loss) (a)(b)(c) | 0.01 | |
Net realized and unrealized gain/(loss) on securities | (0.83) | |
Total from Investment Operations | (0.82) | |
Less Distributions: | ||
Dividends from net investment income | — | |
Distributions from realized capital gains | — | |
Total Distributions | — | |
Net Asset Value, End of Period* | $ | 9.18 |
Total Return (d) | –8.20% | |
Net Assets, End of Period (000’s) | $ | 461 |
Ratios and Supplemental Data: | ||
Ratios of expenses to average net assets: (e) | ||
Gross | 13.44%** | |
Net | 2.00%** | |
Ratio of net investment income (loss) to average net assets (c) | 2.05%** | |
Portfolio Turnover | 1% |
* Fund commenced operations on September 12, 2011 for Ordinary and September 7, 2011 for Institutional.
** Annualized.
(a) Per share numbers have been calculated using the average shares method.
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. Not Annualized. See Note 3 to the financial statements. |
(e) Ratios of expenses to average net assets:
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements. 67
PEAR TREE QUALITY FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | ||||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | |||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||
(unaudited) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 12.36 | $ | 11.37 | $ | 8.24 | $ | 14.07 | $ | 17.04 | $ | 14.76 | ||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.08 | 0.09 | 0.05 | (0.04) | (0.09) | (0.02) | ||||||||||||
Net realized and unrealized gain/(loss) on securities | (0.47) | 1.01 | 3.10 | (5.78) | (2.30) | 2.33 | ||||||||||||
Total from Investment Operations | (0.39) | 1.10 | 3.15 | (5.82) | (2.39) | 2.31 | ||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends from net investment income | — | (0.11) | (0.02) | (0.01) | — | (0.03) | ||||||||||||
Distributions from realized capital gains | — | — | — | — | (0.58) | — | ||||||||||||
Total Distributions | — | (0.11) | (0.02) | (0.01) | (0.58) | (0.03) | ||||||||||||
Net Asset Value, End of Period | $ | 11.97 | $ | 12.36 | $ | 11.37 | $ | 8.24 | $ | 14.07 | $ | 17.04 | ||||||
Total Return (d) | (3.16)% | 9.78% | 38.30% | (41.36)% | (14.43)% | 15.63% | ||||||||||||
Net Assets, End of Period (000’s) | $ | 68,796 | $ | 62,920 | $ | 54,213 | $ | 43,014 | $ | 69,767 | $ | 75,376 | ||||||
Ratios and Supplemental Data: | ||||||||||||||||||
Ratios of expenses to average net assets: (e) | ||||||||||||||||||
Gross | 1.66% | 1.93% | 2.10% | 2.71% | 2.18% | 1.74% | ||||||||||||
Net including dividend and interest expense for securities sold short | 1.51% | 1.89% | 2.10% | 2.71% | 2.12% | 1.71% | ||||||||||||
Net excluding dividend and interest expense for securities sold short | 1.51% | 1.85% | 1.92% | 1.98% | 1.90% | 1.69% | ||||||||||||
Ratio of net investment income (loss) to average net assets (c) | 1.32% | 0.84% | 0.50% | (0.38)% | (0.52)% | (0.14)% | ||||||||||||
Portfolio Turnover Excluding Short Positions (f) | 17% | 283% | 191% | 207% | 171% | 83% |
Note: This fund changed its investment strategy on January 27, 2011.
68The accompanying notes are an integral part of these financial statements.
PEAR TREE QUALITY FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | ||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
(unaudited) | |||||||||||||||||
Net Asset Value, Beginning of Period | $ | 12.85 | $ | 11.80 | $ | 8.54 | $ | 14.71 | $ | 17.80 | $ | 15.40 | |||||
Income from Investment Operations: | |||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.12 | 0.12 | 0.08 | (0.10) | (0.10) | 0.06 | |||||||||||
Net realized and unrealized gain/(loss) on securities | (0.50) | 1.06 | 3.22 | (6.02) | (2.41) | 2.44 | |||||||||||
Total from Investment Operations | (0.38) | 1.18 | 3.30 | (6.12) | (2.51) | 2.50 | |||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | — | (0.13) | (0.04) | (0.05) | — | (0.10) | |||||||||||
Distributions from realized capital gains | — | — | — | — | (0.58) | — | |||||||||||
Total Distributions | — | (0.13) | (0.04) | (0.05) | (0.58) | (0.10) | |||||||||||
Net Asset Value, End of Period | $ | 12.47 | $ | 12.85 | $ | 11.80 | $ | 8.54 | $ | 14.71 | $ | 17.80 | |||||
Total Return (d) | (2.96)% | 10.07% | 38.71% | (41.66)% | (14.49)% | 16.22% | |||||||||||
Net Assets, End of Period (000’s) | $ | 966 | $ | 809 | $ | 591 | $ | 584 | $ | 1,009 | $ | 1,279 | |||||
Ratios and Supplemental Data: | |||||||||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||||||||
Gross | 1.40% | 1.71% | 1.81% | 3.19% | 2.23% | 1.25% | |||||||||||
Net including dividend and interest expense for securities sold short | 1.00% | 1.67% | 1.81% | 3.19% | 2.17% | 1.22% | |||||||||||
Net excluding dividend and interest expense for securities sold short | 1.00% | 1.63% | 1.63% | 2.46% | 1.95% | 1.20% | |||||||||||
Ratio of net investment income (loss) to average net assets (c) | 1.82% | 1.08% | 0.75% | (0.86)% | (0.56)% | 0.35% | |||||||||||
Portfolio Turnover Excluding Short Positions (f) | 17% | 283% | 191% | 207% | 171% | 83% |
Note: This Fund changed its investment strategy on January 27, 2011 from Long/Short to Quality.
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. |
(e) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
(f) | Portfolio turnover is calculated on long security positions only. Short positions are generally held for less than one year. |
The accompanying notes are an integral part of these financial statements. 69
PEAR TREE EMERGING MARKETS FUNDS
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | ||||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | |||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||
(unaudited) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.18 | $ | 21.23 | $ | 12.06 | $ | 27.04 | $ | 23.34 | $ | 19.85 | ||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.41 | 0.24 | 0.18 | 0.33 | 0.26 | 0.16 | ||||||||||||
Net realized and unrealized gain/(loss) on securities | (5.95) | 3.96 | 9.05 | (14.76) | 4.42 | 4.02 | ||||||||||||
Total from Investment Operations | (5.54) | 4.20 | 9.23 | (14.43) | 4.68 | 4.18 | ||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends from net investment income | — | (0.25) | (0.06) | (0.43) | (0.16) | (0.22) | ||||||||||||
Distributions from realized capital gains | — | — | — | (0.12) | (0.82) | (0.47) | ||||||||||||
Total Distributions | — | (0.25) | (0.06) | (0.55) | (0.98) | (0.69) | ||||||||||||
Net Asset Value, End of Period | $ | 19.64 | $ | 25.18 | $ | 21.23 | $ | 12.06 | $ | 27.04 | $ | 23.34 | ||||||
Total Return (d) | (22.00)% | 19.86% | 76.56% | (53.27)% | 19.35% | 21.36% | ||||||||||||
Net Assets, End of Period (000’s) | $ | 126,908 | $ | 176,386 | $ | 205,727 | $ | 164,133 | $ | 491,462 | $ | 276,698 | ||||||
Ratios and Supplemental Data: | ||||||||||||||||||
Ratios of expenses to average net assets: (e) | ||||||||||||||||||
Gross | 1.76% | 1.77% | 1.74% | 1.67% | 1.60% | 1.67% | ||||||||||||
Net | 1.76% | 1.77% | 1.74% | 1.67% | 1.60% | 1.67% | ||||||||||||
Ratio of net investment income (loss) to average net assets (c) | 3.38% | 1.05% | 0.99% | 1.66% | 0.91% | 0.77% | ||||||||||||
Portfolio Turnover | 21% | 68% | 120% | 67% | 18% | 24% |
70The accompanying notes are an integral part of these financial statements.
PEAR TREE EMERGING MARKETS FUNDS
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | ||||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | |||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||
(unaudited) | ||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 25.53 | $ | 21.48 | $ | 27.46 | $ | 27.46 | $ | 23.67 | $ | 20.11 | ||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.43 | 0.42 | 0.27 | 0.34 | 0.33 | 0.21 | ||||||||||||
Net realized and unrealized gain/(loss) on securities | (6.02) | 3.89 | (6.16) | (14.98) | 4.50 | 4.08 | ||||||||||||
Total from Investment Operations | (5.59) | 4.31 | (5.89) | (14.64) | 4.83 | 4.29 | ||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends from net investment income | — | (0.26) | (0.09) | (0.51) | (0.22) | (0.26) | ||||||||||||
Distributions from realized capital gains | — | — | — | (0.12) | (0.82) | (0.47) | ||||||||||||
Total Distributions | — | (0.26) | (0.09) | (0.63) | (1.04) | (0.73) | ||||||||||||
Net Asset Value, End of Period | $ | 19.94 | $ | 25.53 | $ | 21.48 | $ | 12.19 | $ | 27.46 | $ | 23.67 | ||||||
Total Return (d) | (21.90)% | 20.14% | 77.02% | (53.17)% | 19.67% | 21.68% | ||||||||||||
Net Assets, End of Period (000’s) | $ | 10,228 | $ | 11,267 | $ | 26,247 | $ | 25,664 | $ | 40,501 | $ | 12,759 | ||||||
Ratios and Supplemental Data: | ||||||||||||||||||
Ratios of expenses to average net assets: (e) | ||||||||||||||||||
Gross | 1.53% | 1.51% | 1.50% | 1.48% | 1.39% | 1.41% | ||||||||||||
Net | 1.53% | 1.51% | 1.50% | 1.48% | 1.39% | 1.41% | ||||||||||||
Ratio of net investment income (loss) to average net assets (c) | 3.55% | 1.94% | 1.48% | 1.82% | 1.12% | 1.02% | ||||||||||||
Portfolio Turnover | 21% | 68% | 120% | 67% | 18% | 24% |
(a) Per share numbers have been calculated using the average shares method.
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. |
(e) Ratios of expenses to average net assets:
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements. 71
PEAR TREE FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | ||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
(unaudited) | |||||||||||||||||
Net Asset Value, Beginning of Period | $ | 14.68 | $ | 12.45 | $ | 6.97 | $ | 19.87 | $ | 23.07 | $ | 19.91 | |||||
Income from Investment Operations: | |||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.07 | 0.07 | 0.13 | 0.35 | 0.19 | 0.18 | |||||||||||
Net realized and unrealized gain/(loss) on securities | (3.00) | 2.31 | 5.71 | (11.53) | (2.11) | 4.12 | |||||||||||
Total from Investment Operations | (2.93) | 2.38 | 5.84 | (11.18) | (1.92) | 4.30 | |||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | — | (0.15) | (0.36) | (0.11) | (0.19) | (0.07) | |||||||||||
Distributions from realized capital gains | — | — | — | (1.61) | (1.09) | (1.07) | |||||||||||
Total Distributions | — | (0.15) | (0.36) | (1.72) | (1.28) | (1.14) | |||||||||||
Net Asset Value, End of Period | $ | 11.75 | $ | 14.68 | $ | 12.45 | $ | 6.97 | $ | 19.87 | $ | 23.07 | |||||
Total Return (d) | (19.96)% | 19.17% | 84.05% | (55.95)% | (8.71)% | 22.08% | |||||||||||
Net Assets, End of Period (000’s) | $ | 286,311 | $ | 369,550 | $ | 369,626 | $ | 193,798 | $ | 781,136 | $ | 778,104 | |||||
Ratios and Supplemental Data: | |||||||||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||||||||
Gross | 1.62% | 1.62% | 1.62% | 1.62% | 1.56% | 1.60% | |||||||||||
Net | 1.62% | 1.62% | 1.62% | 1.62% | 1.56% | 1.60% | |||||||||||
Ratio of net investment income (loss) to average net assets (c) | 1.05% | 0.56% | 1.17% | 2.49% | 0.83% | 0.88% | |||||||||||
Portfolio Turnover | 9% | 9% | 24% | 20% | 44% | 19% |
72The accompanying notes are an integral part of these financial statements.
PEAR TREE FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||||||||||||||
For the six months ended September 30, | Years Ended March 31, | ||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
(unaudited) | |||||||||||||||||
Net Asset Value, Beginning of Period | $ | 14.68 | $ | 12.45 | $ | 6.98 | $ | 19.98 | $ | 23.19 | $ | 20.01 | |||||
Income from Investment Operations: | |||||||||||||||||
Net investment income (loss) (a)(b)(c) | 0.08 | 0.10 | 0.14 | 0.38 | 0.26 | 0.25 | |||||||||||
Net realized and unrealized gain/(loss) on securities | (3.00) | 2.31 | 5.71 | (11.60) | (2.13) | 4.12 | |||||||||||
Total from Investment Operations | (2.92) | 2.41 | 5.85 | (11.22) | (1.87) | 4.37 | |||||||||||
Less Distributions: | |||||||||||||||||
Dividends from net investment income | — | (0.18) | (0.38) | (0.17) | (0.25) | (0.12) | |||||||||||
Distributions from realized capital gains | — | — | — | (1.61) | (1.09) | (1.07) | |||||||||||
Total Distributions | — | (0.18) | (0.38) | (1.78) | (1.34) | (1.19) | |||||||||||
Net Asset Value, End of Period | $ | 11.76 | $ | 14.68 | $ | 12.45 | $ | 6.98 | $ | 19.98 | $ | 23.19 | |||||
Total Return (d) | (19.89)% | 19.48% | 84.12% | (55.85)% | (8.49)% | 22.37% | |||||||||||
Net Assets, End of Period (000’s) | $ | 83,172 | $ | 78,790 | $ | 68,067 | $ | 47,090 | $ | 140,999 | $ | 115,200 | |||||
Ratios and Supplemental Data: | |||||||||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||||||||
Gross | 1.37% | 1.37% | 1.37% | 1.38% | 1.32% | 1.35% | |||||||||||
Net | 1.37% | 1.37% | 1.37% | 1.38% | 1.32% | 1.35% | |||||||||||
Ratio of net investment income (loss) to average net assets (c) | 1.12% | 0.79% | 1.29% | 2.77% | 1.18% | 1.13% | |||||||||||
Portfolio Turnover | 9% | 9% | 24% | 20% | 44% | 19% |
(a) Per share numbers have been calculated using the average shares method.
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. |
(e) Ratios of expenses to average net assets:
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements. 73
PEAR TREE FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||||||||
For the six months ended September 30, | Period Ended March 31, | ||||||||||
2011 | 2011 | 2010 | 2009 | ||||||||
(unaudited) | |||||||||||
Net Asset Value, Beginning of Period | $ | 11.19 | $ | 10.28 | $ | 4.82 | $ | 10.00 | |||
Income from Investment Operations: | |||||||||||
Net investment income (loss) (a)(b)(c) | 0.19 | 0.09 | 0.07 | 0.03 | |||||||
Net realized and unrealized gain/(loss) on securities | (2.26) | 1.25 | 5.42 | (5.15) | |||||||
Total from Investment Operations | (2.07) | 1.34 | 5.49 | (5.12) | |||||||
Less Distributions: | |||||||||||
Dividends from net investment income | — | (0.08) | (0.03) | (0.04) | |||||||
Distributions from realized capital gains | — | (0.35) | — | (0.02) | |||||||
Total Distributions | — | (0.43) | (0.03) | (0.06) | |||||||
Net Asset Value, End of Period* | $ | 9.12 | $ | 11.19 | $ | 10.28 | $ | 4.82 | |||
Total Return (d) | (18.50)% | 13.12% | 114.00% | (51.25)% | |||||||
Net Assets, End of Period (000’s) | $ | 64,052 | $ | 78,307 | $ | 124,971 | $ | 18,978 | |||
Ratios and Supplemental Data: | |||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||
Gross | 1.67% | 1.69% | 1.64% | 2.00%** | |||||||
Net | 1.67% | 1.69% | 1.64% | 1.97%** | |||||||
Ratio of net investment income (loss) to average net assets (c) | 3.53% | 0.82% | 0.82% | 0.66%** | |||||||
Portfolio Turnover | 7% | 54% | 14% | 10% |
74The accompanying notes are an integral part of these financial statements.
PEAR TREE FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||||||||
For the six months ended September 30, | Period Ended March 31, | ||||||||||
2011 | 2011 | 2010 | 2009 | ||||||||
(unaudited) | |||||||||||
Net Asset Value, Beginning of Period | $ | 11.21 | $ | 10.30 | $ | 4.82 | $ | 10.00 | |||
Income from Investment Operations: | |||||||||||
Net investment income (loss) (a)(b)(c) | 0.21 | 0.09 | 0.11 | 0.07 | |||||||
Net realized and unrealized gain/(loss) on securities | (2.27) | 1.28 | 5.41 | (5.19) | |||||||
Total from Investment Operations | (2.06) | 1.37 | 5.52 | (5.12) | |||||||
Less Distributions: | |||||||||||
Dividends from net investment income | — | (0.11) | (0.04) | (0.04) | |||||||
Distributions from realized capital gains | — | (0.35) | — | (0.02) | |||||||
Total Distributions | — | (0.46) | (0.04) | (0.06) | |||||||
Net Asset Value, End of Period* | $ | 9.15 | $ | 11.21 | $ | 10.30 | $ | 4.82 | |||
Total Return (d) | (18.38)% | 13.40% | 114.55% | (51.20)% | |||||||
Net Assets, End of Period (000’s) | $ | 20,369 | $ | 23,973 | $ | 8,103 | $ | 3,592 | |||
Ratios and Supplemental Data: | |||||||||||
Ratios of expenses to average net assets: (e) | |||||||||||
Gross | 1.39% | 1.44% | 1.43% | 1.88%** | |||||||
Net | 1.39% | 1.44% | 1.43% | 1.85%** | |||||||
Ratio of net investment income (loss) to average net assets (c) | 3.80% | 0.92% | 1.27% | 1.10%** | |||||||
Portfolio Turnover | 7% | 54% | 14% | 10% |
* Fund commenced operations May 1, 2008.
** Annualized.
(a) Per share numbers have been calculated using the average shares method.
(b) | Reflects expense waivers/reimbursements and reductions in effect during the period. See Note 3 to the Financial Statements. |
(c) | Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets reflect net investment income prior to certain reclassifications for federal income or excise taxes. |
(d) | Total Return does not include the deferred sales charge of 1% for the Ordinary Shares. The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements. |
(e) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements. 75
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
1. Organization of the Trust
Pear Tree Funds, formerly known as Quantitative Group of Funds d/b/a “Quant Funds” (the “Trust”), is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, open-end management investment company. The Trust currently has six series (each a “Fund” and collectively the “Funds”) each with a distinct investment objective.
Pear Tree Columbia Small Cap Fund (“Small Cap”) seeks maximum long-term capital appreciation.
Pear Tree Columbia Micro Cap Fund (“Micro Cap”) seeks maximum long-term capital appreciation. Micro Cap accepted its first subscription and began trading securities on September 7, 2011.
Pear Tree Quality Fund (“Quality”) seeks long-term growth of capital. Prior to January 27, 2011, the Fund was called Quant Long/Short Fund (“Long/Short”). Prior to that date, the Fund pursued the same investment objective but used a long-short investment strategy.
Pear Tree Emerging Markets Fund (“Emerging Markets”) seeks long-term growth of capital.
Pear Tree Polaris Foreign Value Fund (“Foreign Value”) seeks long-term capital growth and income.
Pear Tree Polaris Foreign Value Small Cap Fund (“Foreign Value Small Cap”) seeks long-term capital growth and income.
Each Fund offers two classes of shares, designated as Ordinary Shares and Institutional Shares. The classes differ principally in their respective expense structure and minimum investment requirements. Each class of shares represents an interest in the same portfolio of investments of the respective Fund and has equal rights to voting, redemptions, dividends and liquidation. Ordinary Shares bear distribution (Rule 12b-1) fees and have exclusive voting rights with respect to the distribution plan that has been adopted by Ordinary Share shareholders. There is no distribution plan for Institutional Shares.
At times, a Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making it more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors. To the extent that a Fund is permitted to invest in foreign markets, emerging markets or countries with limited or developing markets such investments may subject the Fund to a greater degree of risk than in the U.S. market or a developed market. Risks associated with these foreign and developing markets include political, social or economic factors and may affect the price of a Fund’s investments and income generated by these investments, as well as a Fund’s ability to repatriate such amounts. Information regarding each Fund’s principal risks is contained in the Fund’s prospectus. Please refer to those documents when considering a Fund’s risks.
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
2. Significant Accounting Policies
Each Fund’s financial statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principals require the management of the Funds to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income, expenses and gains and losses on investments during the reporting year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by each Fund in the preparation of its financial statements, which are consistent with those policies generally accepted in the investment company industry.
Security Valuation
Each Fund values its assets in accordance with procedures (the “Valuation Procedures”) established by the Trust’s Board of Trustees (the “Board”). Under the Valuation Procedures, a portfolio instrument generally is valued each business day generally at the last reported sale price on the principal exchange or market on which they are traded; if on any day that regular trading occurs there has been no reported sale of a portfolio instrument, the instrument generally is valued at the mean between the last reported bid and asked prices; and securities quoted in foreign currencies are converted into U.S. dollars based upon prevailing exchange rates. Under the Valuation Procedures, the Funds sometimes values an instrument using a fair value, such as when the Trust is aware of information that suggest that the market price of an instrument may not be accurate; or when there are no recent market prices for a security. In addition, a short-term debt instrument that matures in 60 days or less is valued at amortized cost. As a result, changes in the value of those currencies in relation to the U.S. dollar may affect a Fund’s NAV. Because foreign markets may be open at different times than the New York Stock Exchange, the value of a Fund’s shares may change on days when shareholders are not able to buy or sell them. If events materially affecting the values of a Fund’s foreign investments occur between the close of foreign markets and the close of regular trading on the New York Stock Exchange, these investments may be valued at their fair value.
Various inputs are used to determine the value of a Fund’s financial instruments. These inputs are summarized in the three broad levels listed below:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. |
• | Level 2 — Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. |
• | Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset liability, and would be based on the best information available. |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
The availability of observable inputs can vary from instrument to instrument and is affected by a wide variety of factors, including for example, the type of instrument, whether the instrument is new and not yet established in the marketplace, the liquidity of the markets, and other characteristics particular to the instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers in changing an investment’s assigned level within the hierarchy.
The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in these instruments. The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2011:
Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Carrying Value at September 30, 2011 | ||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Small Cap | |||||||||||
Common Stock* | $ | 78,324,200 | $ | — | $ | — | $ | 78,324,200 | |||
Depository Receipts | 1,529,094 | — | — | 1,529,094 | |||||||
Limited Partnerships | 40,364 | — | — | 40,364 | |||||||
Real Estate Inv. Trusts | 8,197,168 | — | — | 8,197,168 | |||||||
Short Term Investments | 4,433,006 | 1,642,284 | — | 6,075,290 | |||||||
Total | $ | 92,523,832 | $ | 1,642,284 | $ | — | $ | 94,166,116 | |||
Quality | |||||||||||
Common Stock* | $ | 57,958,668 | $ | — | $ | — | $ | 57,958,668 | |||
Depository Receipts | 11,355,022 | — | — | 11,355,022 | |||||||
Short Term Investments | 30,961,890 | 2,000,991 | — | 32,962,881 | |||||||
Total Assets | $ | 100,275,580 | $ | 2,000,991 | $ | — | $ | 102,276,571 | |||
Emerging Markets | |||||||||||
Common Stock* | $ | 109,796,227 | $ | 777,768 | $ | 57,676 | $ | 110,631,671 | |||
Depository Receipts | 18,899,569 | — | — | 18,899,569 | |||||||
Preferred Stock | 7,148,138 | — | — | 7,148,138 | |||||||
Real Estate Inv. Trusts | 447,579 | — | — | 447,579 | |||||||
Short Term Investments | 2,554,294 | — | — | 2,554,294 | |||||||
Total | $ | 138,845,807 | $ | 777,768 | $ | 57,676 | $ | 139,681,251 |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Carrying Value at September 30, 2011 | ||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Foreign Value | |||||||||||
Common Stock* | $ | 309,513,235 | $ | 5,181,773 | $ | — | $ | 314,695,008 | |||
Depository Receipts | 15,984,376 | — | — | 15,984,376 | |||||||
Short Term Investments | 9,190,143 | 28,667,000 | — | 37,857,143 | |||||||
Total | $ | 334,687,754 | $ | 33,848,773 | $ | — | $ | 368,536,527 | |||
Foreign Value Small Cap | |||||||||||
Common Stock* | $ | 68,296,051 | $ | 2,314,952 | $ | 236,514 | $ | 70,847,517 | |||
Depository Receipts | 175,761 | — | — | 175,761 | |||||||
Preferred Stock | 1,607,424 | — | — | 1,607,424 | |||||||
Short Term Investments | 7,070,987 | — | 7,070,987 | ||||||||
Warrants | — | 4,526,594 | — | 4,526,594 | |||||||
Total | $ | 77,150,223 | $ | 6,841,546 | $ | 236,514 | $ | 84,228,283 | |||
Micro Cap | |||||||||||
Common Stock* | $ | 627,418 | $ | — | — | $ | 627,418 | ||||
Limited Partnerships | 7,614 | — | — | 7,614 | |||||||
Real Estate Inv. Trusts | 20,307 | — | — | 20,307 | |||||||
Shares of Beneficial Interest | 6,759 | — | 6,759 | ||||||||
Short Term Investments | — | 45,396 | — | 45,396 | |||||||
Total | $ | 662,099 | $ | 45,396 | $ | — | $ | 707,494 |
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
Emerging Markets Common Stock | Foreign Value Small Cap Common Stock | ||||||||
Balance as of 3/31/2011 | $ | — | $ | 2,263,456 | |||||
Realized gain (loss) | $ | — | $ | (1,374,129) | |||||
Changed in unrealized appreciation (depreciation) | $ | — | $ | (652,813) | |||||
Net purchases (sales) | $ | — | $ | — | |||||
Transfer in and/or out of Level 3 | $ | 57,676 | $ | — | |||||
Balances as of 09/30/2011 | $ | 57,676 | $ | 236,514 |
* | Refer to Schedule of Investments for breakout by industry or country. |
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2010-06(“ASU 2010-06”), “Improving Disclosures about Fair Value Measurements.” ASU 2010-06 amends FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” to require additional disclosures regarding fair value measurements. Pursuant to ASU 2010-06, disclosures regarding transfers into and out of Levels 1 and 2 are effective for reporting periods beginning after December 15, 2009 and for the interim periods within those fiscal years, and other disclosures relating to purchases, sales,
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
issuances and settlements on a gross basis relating to Level 3 measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. There were no significant transfers into and out of levels 1 and 2 during the six months ended September 30, 2011 and the Fund’s management is currently evaluating what impact further disclosures under ASU 2010-06 may have on the Fund’s financial statements.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Guarantees and Indemnifications
In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial were issued. There were no events or transactions that occurred during the period that materially impacted the accounts or disclosures in the Funds’ financial statements.
Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date (the date the order to buy or sell is executed). Dividend income, less any foreign taxes withheld, is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as a Fund becomes aware of the ex-dividend data in the exercise of reasonable diligence. Distributions received on securities that represent a return of capital or a capital gain is recorded as a reduction of cost of investments and/or as a realized gain. Each Fund estimates the components of distributions that may be considered nontaxable distributions or capital gain distributions for tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis. Each Fund’s investment income and realized and unrealized gains and losses are allocated among classes based upon the daily relative net assets.
Repurchase Agreements
The Funds’ custodian takes possession through the federal book-entry system of securities collateralizing repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying assets remains sufficient to protect the Funds. The Funds may
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
experience costs and delays in liquidating the collateral if the issuer defaults or enters into bankruptcy.
Foreign Currency Transactions
All monetary items denominated in foreign currencies are translated into U.S. dollars based on the prevailing exchange rate at the close of each business day. Income and expenses denominated in foreign currencies are translated at the prevailing rates of exchange when accrued or incurred.
Reported net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on investment transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments.
Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to manage their exposure to fluctuations in certain foreign currencies. A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a set price. Forward currency contracts held by a fund, are valued at the forward rate and are marked-to-market daily. Any change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. In addition to the risks of financial investments mentioned above, risks arise from unanticipated movements in currency values.
There were no open forward foreign currency contracts held by any Fund at September 30, 2011.
Short Sales
Prior to January 27, 2011, Quality (at the time referred to as Quant Long/Short Fund) engaged in short sales (selling securities it did not own) as part of its normal investment activities. Upon selling a security short, the Fund’s Custodian segregated cash, cash equivalents or other appropriate liquid securities in an amount equal to the then current market value of the securities sold short and maintained such collateral until the Fund replaced the borrowed security. The Fund was required to pay any dividends or interest due on securities sold short. Such dividends and interest were recorded as an expense. Liabilities for securities sold short were valued daily and were recorded as unrealized appreciation (depreciation) on investments and securities sold short. The Fund recorded realized gain (loss) on a security sold short when a short position was terminated by the Fund. The Fund incurred a loss if the price of a security increased between the date of the short sale and the date on which the Fund replaced the borrowed security. The Fund realized a gain if the price of borrowed security declined between the date of a short sale and the date the Fund replaced the borrowed security.
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Securities Lending
To generate additional income, each of Small Cap, Emerging Markets and Foreign Value use Securities Finance Trust Company (“eSecLending”) as lending agent. Small Cap, Emerging Markets and Foreign Value may each lend up to 30% of its assets pursuant to certain agreements (“Securities Lending Agreements”) requiring that the loan be continuously secured by cash or securities. Securities are loaned by eSecLending to certain pre-approved brokers (“the borrowers”). The borrowers are required to provide cash or securities as collateral against loaned securities in the amount of 105% of the market value of borrowings for Emerging Markets and Foreign Value, and 102% of the borrowings for Small Cap. Collateral is marked-to-market daily. Cash collateral is invested in a registered money market fund.
The Trust uses State Street Bank and Trust Company (“State Street”) as lending agent for Quality pursuant to a Securities Lending Authorization Agreement. Quality may lend up to 331/3% of its assets. Securities are loaned by State Street to certain pre-approved borrowers. The initial collateral received shall have (depending on the nature of the loaned securities and the collateral received) a value of 102% or 105% of the market value of the loaned securities, or such other value, but not less than 102% of the market value of the loaned securities, as may be applicable in the jurisdiction in which such loaned securities are customarily traded. Collateral of cash and/or securities is marked-to-market daily. Cash collateral is invested in a registered money market fund that may be managed by State Street or one of its affiliates.
Risks such as delay in recovery of securities may occur should the borrower of the securities fail financially or should the value of the securities loaned increase above the value of the collateral received. eSecLending provides indemnification insurance via highly rated third party insurers to cover these potential risks. State Street provides indemnification against borrower default.
At September 30, 2011, the following Funds had collateral and loans outstanding of:
Value of Collateral | Value of Loaned Securities | |||
Small Cap Fund | $ | 4,433,006 | $ | 4,317,714 |
Quality Fund | 30,961,890 | 29,835,562 | ||
Emerging Markets Fund | 2,554,294 | 2,361,004 | ||
Foreign Value | — | — |
Expenses and Class Allocations
The majority of the expenses of the Funds are attributed to the individual Fund and Class for which they are incurred. Expenses that are not attributed to a specific Fund are allocated in proportion to the respective net assets of the Funds. Expenses allocable to a Fund are borne pro rata by the holders of both classes of shares of such Fund, except that 12b-1 Plan expenses will not be borne by the holders of Institutional Shares.
Distribution fees on Ordinary Shares are calculated based on the average daily net asset value attributable to the Ordinary Shares of the respective Fund. Institutional Shares are not subject to a distribution plan. Shareholders of each class share all expenses and fees paid to the transfer agent, Pear Tree Institutional Services, a division of Pear Tree Advisors, Inc. (the
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
“Manager”), for its services, which are allocated based on the net assets in each class and the ratable allocation of related out-of-pocket expenses. Income, common expenses and realized and unrealized gains and losses are calculated at the Fund level and allocated daily to each class of shares based on their respective percentage of adjusted net assets at the beginning of the day. (See Note 3)
Distributions to Shareholders
Distributions to shareholders are recorded as of the ex-dividend date. Distributions paid by each Fund with respect to each class of shares are calculated in the same manner, at the same time, and in the same amount, except that Ordinary Shares incur 12b-1 distribution fees while Institutional Shares do not. Distributions from net investment income for each Fund, if any, are declared and paid annually. Distributions from net realized gains for each Fund, if any, are generally declared and paid annually.
3. Management Fee, Advisory Contracts and Other Affiliate Transactions
The Funds have entered into a management agreement (the “Management Agreement”) with the Manager. Compensation of the Manager, for management of the Funds, including selection and monitoring of the portfolio advisors, is paid monthly based on the average daily net asset value of each Fund for the month. The annual rate of such fees is 1.00% of the average daily total net assets of each of the Funds.
The Manager has agreed from January 27, 2011 to July 31, 2012 to waive 0.15 % of its management fee if Quality Fund’s average daily net assets are up to $100 million and 0.25% of its management fee if the Fund’s average daily net assets are $100 million or more. The Manager has agreed from April 1, 2011 to July 31, 2012 to waive or reimburse Fund expenses relating to Institutional Shares of Quality Fund such that the total annual fund operating expenses relating to Institutional Shares is not greater than 1.00 %. The Board has the right to terminate either or both arrangements in its discretion. In addition, under the Management Agreement, the Manager has agreed to reduce its compensation, and if necessary, assume expenses, with respect to Small Cap to the extent that the total expenses of this Fund individually exceeds 2% of average net assets for any fiscal year. Fund expenses subject to this limitation are exclusive of brokerage, interest, taxes and extraordinary expenses, which include incremental custody costs associated with international securities. Expenses are calculated gross of custody credits, if applicable.
For the twelve months ended September 30, 2011 aggregate management fees were $6,179,223.
The Manager has entered into advisory contracts with the following subadvisors (collectively the “Advisors”) to provide investment advisory services to the following Funds: Columbia Partners, L.L.C., Investment Management (Small Cap, Quality and Micro-Cap), PanAgora Asset Management, Inc. (Emerging Markets), and Polaris Capital Management, LLC (Foreign Value and Foreign Value Small Cap.) Prior to January 27, 2011, Analytic Investors, LLC served as subasdvisor with respect to Quality Fund (formerly known as Quant Long/Short Fund).
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
For services rendered, the Manager pays to the Advisor of a Fund a fee based on a percentage of the average daily total net assets of the Fund. The fee for each Fund is determined separately. Currently, the fees paid by the Manager to the Advisors of the Funds are as follows:
Small Cap | 0.47% of average daily total net assets |
Micro-Cap | 0.47% of average daily total net assets. |
Quality* | 0.10% of the first $100 million and |
0.08% of amounts in excess of $100 million but less than $250 million and | |
0.06% of amounts in excess of $250 million of average daily total net assets. | |
Emerging Markets | 0.40% of average daily total net assets; |
Foreign Value | 0.35% of the first $35 million and |
0.40% of amounts in excess of $35 million but less than $200 million and | |
0.50% of assets in excess of $200 million of average daily total net assets | |
Foreign Value Small Cap | 0.35% of the first $35 million and |
0.40% of amounts in excess of $35 million but less than $200 million and | |
0.50% of amounts in excess of $200 million of average daily total net assets; |
The Funds have entered into a distribution agreement (the “Distribution Agreement”) with U.S. Boston Capital Corporation (the “Distributor”). For its services under the Distribution Agreement, the Distributor received a monthly fee at the annual rate of (i) 0.25% of the average daily net asset value of the Ordinary Shares of the Funds.
Holders of Institutional Shares pay no portion of the 12b-1 Plan expenses of the Funds and are not entitled to vote on matters involving the 12b-1 Plan. During the six months ended September 30, 2011 the aggregate fees paid by the Funds under the Fund’s 12b-1 Plan were $943,467.
Transfer agent functions are provided to the Funds by Pear Tree Institutional Services, a division of the Manager (the “Transfer Agent”) pursuant to a transfer agent agreement (the “Transfer Agent Agreement”). The Transfer Agent Agreement provides for base fees that are payable to the Transfer Agent at an annual rate of 0.16% of the average daily total net asset value of each class of shares of the Funds and for reimbursement of out of pocket expenses. During the six months ended September 30, 2011, the aggregate fees of the Funds were $734,535.
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Pursuant to an Administration Agreement, the Manager provides certain administrative services to the Funds. During the six months ended September 30, 2011, fees paid pursuant to this agreement were $157,040.
The Board has approved reimbursement to the Manager for certain costs associated with providing regulatory and compliance services to the Funds. For the six months ended September 30, 2011, the Trustees have approved reimbursements that amounted to $98,261.
Custody and fund accounting services are provided to the Funds by State Street. Any custody credits generated by interest earned on un-invested cash balances maintained by the Funds are used to offset custodial expenses of the Funds.
For the six months ended September 30, 2011, each Trustee of the Trust who was not an “interested person” of the Trust, as that term is defined in the 1940 Act, received fee for serving in that role of $12,000, and each of the Chairman of the Board’s Audit Committee and the Lead Independent Trustee of the Board received an additional $1,500. Compensation for the services of the Trustee who was an interested person of the Trust during that period was paid by the Manager. All fees paid to the Trustees were allocated among the Funds in proportion to their respective net assets.
4. Purchases and Sales
During the six months ended September 30, 2011, purchases of investment securities other than U.S. Government obligations and short-term investments, for Small Cap, Quality, Emerging Markets, Foreign Value, Foreign Value Small Cap and Micro-Cap were $29,813,360, $22,450,190, $36,370,599, $43,527,818, $9,849,423 and $723,313, respectively. Sales of such securities for the Funds were $37,821,167, $11,958,402, $45,188,244, $35,843,708, 6,408,684 and $5,745, respectively.
5. Contingent Liability
The Trust maintains a joint fidelity bond with the Funds’ Transfer Agent through ICI Mutual Insurance Company (“ICI Mutual”). The annual premium is allocated among the Funds and the Transfer Agent. Additionally, the Funds have committed to ICI Mutual up to 300% of the annual premium, one third of which was provided in cash, with each Fund’s pro rata portion recorded as an asset. The remainder is secured with an irrevocable letter of credit.
6. Concentration of Risk
The relatively large investments of Emerging Markets in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund’s investments and the income they generate, as well as the Fund’s ability to repatriate such amounts.
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
7. Federal Income Taxes
Each Fund intends to continue to qualify as a regulated investment company under Subchapter M of the IRC and distribute to shareholders all of its taxable income and gains. As a result, no provision for federal income taxes is required.
The tax components of capital shown in the following tables represent: (1) losses or deductions the portfolios may be able to offset against income and gains realized in future years, (2) distribution requirements the portfolios must satisfy under the income tax regulations, and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
As of March 31, 2011 the capital loss carryovers were as follows:
Portfolio | Capital Loss Expires March 31, 2017 | Capital Loss Expires March 31, 2018 | Capital Loss Expires March 31, 2019 | Total Capital Loss | ||||
Small Cap Fund | $ | 5,719,158 | $ | 23,795,469 | $ | — | $ | 29,514,627 |
Quality Fund | — | 12,445,061 | — | 12,445,061 | ||||
Emerging Markets Fund | 3,527,534 | 31,309,051 | — | 34,836,585 | ||||
Foreign Value Fund | 80,608,820 | 131,156,114 | 10,547,106 | 222,312,040 | ||||
Foreign Value Small Cap Fund | — | — | — | — |
During the fiscal year ending March 31, 2011, capital loss carryovers in the amount of $6,699,837, $5,135,328, $41,291,501, and $0 were utilized by Small Cap, Quality, Emerging Markets, and Foreign Value Small Cap, respectively. Foreign Value had an expired loss carryover in the amount of $932,449.
The Funds recognize the tax benefits of uncertain tax positions only where the position is ”more likely than not“ to be sustained assuming examination by the tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2008-2010, or expected to be taken in the Funds’ 2011 tax returns. The Funds identify their major tax jurisdictions at U.S. Federal and Massachusetts State; however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
The primary differences between book and tax appreciation or depreciation of investments consist of wash sale loss deferrals, return of capital distributions by real estate investment trusts (“REITs”), mark-to-market on passive foreign investment companies (“PFICs”) held and foreign capital gains taxes accrued. The net tax appreciation/(depreciation) in the table below includes unrealized tax gain/(loss) on foreign currency and investments.
At September 30, 2011, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Portfolio | Tax Cost | Gross Unrealized Gain | Gross Unrealized Loss | Net Unrealized Gain (Loss) | ||||
Small Cap | $ | 86,031,565 | $ | 15,425,225 | $ | (11,723,679) | $ | 3,701,546 |
Quality | 74,235,964 | 2,176,190 | (5,097,472) | (2,921,282) | ||||
Emerging Markets | 151,478,972 | 13,635,386 | (27,710,275) | (14,074,889) | ||||
Foreign Value | 458,993,579 | 31,372,436 | (121,710,027) | (90,337,591) | ||||
Foreign Value Small Cap | 84,877,461 | 12,337,949 | (12,946,973) | (609,024) | ||||
Micro Cap | 762,800 | 4,420 | (59,725) | (55,305) |
8. Transactions in Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
Six Months Ended September 30, 2011 | Year Ended March 31, 2011 | ||||||||||
Shares | Dollars | Shares | Dollars | ||||||||
Small Cap | |||||||||||
Ordinary Shares | |||||||||||
Shares sold | 123,362 | $ | 2,310,720 | 504,964 | $ | 9,036,002 | |||||
Shares issued in reinvestment of distributions | — | — | 26,733 | 499,111 | |||||||
Shares redeemed | (483,666) | (9,179,188) | (868,984) | (15,175,822) | |||||||
Net Change | (360,304) | (6,868,468) | (337,287) | (5,640,709) | |||||||
Institutional Shares | |||||||||||
Shares sold | 27,455 | $ | 575,200 | 33,512 | $ | 648,053 | |||||
Shares issued in reinvestment of distributions | — | — | 1,975 | 41,624 | |||||||
Shares redeemed | (71,816) | (1,502,369) | (73,515) | (1,430,986) | |||||||
Net Change | (44,361) | (927,169) | (38,028) | (741,309) | |||||||
Total Net Change For Fund | ($ | 7,795,637) | ($ | 6,382,018) | |||||||
Quality | |||||||||||
Ordinary Shares | |||||||||||
Shares sold | 776,701 | $ | 9,738,583 | 753,057 | $ | 9,103,352 | |||||
Shares issued in reinvestment of distributions | — | — | 40,824 | 471,929 | |||||||
Shares redeemed | (119,094) | (1,483,038) | (473,260) | (5,324,465) | |||||||
Net Change | 657,607 | 8,255,545 | 320,621 | 4,250,816 |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Six Months Ended September 30, 2011 | Year Ended March 31, 2011 | |||||||||
Shares | Dollars | Shares | Dollars | |||||||
Institutional Shares | ||||||||||
Shares sold | 15,891 | $ | 209,778 | 34,077 | $ | 434,510 | ||||
Shares issued in reinvestment of distributions | — | — | 316 | 3,797 | ||||||
Shares redeemed | (1,406) | (19,048) | (21,480) | (244,213) | ||||||
Net Change | 14,485 | 190,730 | 12,913 | 194,094 | ||||||
Total Net Change For Fund | $ | 8,446,275 | $ | 4,444,910 | ||||||
Emerging Markets | ||||||||||
Ordinary Shares | ||||||||||
Shares sold | 535,857 | $ | 12,424,325 | 3,675,329 | $ | 82,415,682 | ||||
Shares issued in reinvestment of distributions | — | — | 93,424 | 2,247,776 | ||||||
Shares redeemed | (1,081,114) | (25,934,600) | (6,451,916) | (146,132,731) | ||||||
Net Change | (545,257) | (13,510,275) | (2,683,163) | (61,469,273) | ||||||
Institutional Shares | ||||||||||
Shares sold | 160,099 | $ | 4,060,220 | 307,919 | $ | 6,681,226 | ||||
Shares issued in reinvestment of distributions | — | — | 4,601 | 112,212 | ||||||
Shares redeemed | (88,526) | (2,162,674) | (1,093,015) | (25,587,724) | ||||||
Net Change | (71,573) | 1,897,546 | (780,495) | (18,794,286) | ||||||
Total Net Change For Fund | ($ | 11,612,729) | ($ | 80,263,559) | ||||||
Foreign Value | ||||||||||
Ordinary Shares | ||||||||||
Shares sold | 2,441,386 | $ | 32,749,738 | 3,241,340 | $ | 41,652,537 | ||||
Shares issued in reinvestment of distributions | — | — | 263,174 | 3,621,279 | ||||||
Shares redeemed | (3,249,727) | (45,040,310) | (8,025,937) | (96,826,111) | ||||||
Net Change | (808,341) | (12,290,572) | (4,521,423) | (51,552,295) |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Six Months Ended September 30, 2011 | Year Ended March 31, 2011 | |||||||||
Shares | Dollars | Shares | Dollars | |||||||
Institutional Shares | ||||||||||
Shares sold | 2,060,507 | $ | 29,089,683 | 498,257 | $ | 6,338,939 | ||||
Shares issued in reinvestment of distributions | — | — | 58,949 | 810,543 | ||||||
Shares redeemed | (358,288) | (4,943,652) | (658,345) | (8,602,775) | ||||||
Net Change | 1,702,219 | 24,146,031 | (101,139) | (1,453,293) | ||||||
Total Net Change For Fund | $ | 11,855,459 | ($ | 53,005,588) | ||||||
Foreign Value Small Cap | ||||||||||
Ordinary Shares | ||||||||||
Shares sold | 486,429 | $ | 5,264,049 | 2,979,093 | $ | 31,548,656 | ||||
Shares issued in reinvestment of distributions | — | — | 343,469 | 3,723,203 | ||||||
Shares redeemed | (460,622) | (5,127,116) | (8,487,003) | (88,399,013) | ||||||
Net Change | 25,807 | 136,933 | (5,164,441) | (53,127,154) | ||||||
Institutional Shares | ||||||||||
Shares sold | 148,563 | $ | 1,608,936 | 1,344,178 | $ | 14,744,709 | ||||
Shares issued in reinvestment of distributions | — | — | 37,867 | 410,859 | ||||||
Shares redeemed | (60,629) | (675,649) | (30,573) | (327,118) | ||||||
Net Change | 87,934 | 933,287 | 1,351,472 | 14,828,450 | ||||||
Total Net Change for Fund | $ | 1,070,220 | $ | (38,298,704) | ||||||
Micro-Cap | ||||||||||
Ordinary Shares | ||||||||||
Shares sold | 26,288 | $ | 263,941 | |||||||
Shares issued in reinvestment of distributions | — | — | ||||||||
Shares redeemed | — | — | ||||||||
Net Change | 26,288 | 263,941 |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Six Months Ended September 30, 2011 | Year Ended March 31, 2011 | ||||||||
Shares | Dollars | Shares | Dollars | ||||||
Institutional Shares | |||||||||
Shares sold | 50,170 | $ | 500,817 | ||||||
Shares issued in reinvestment of distributions | — | — | |||||||
Shares redeemed | — | — | |||||||
Net Change | 50,170 | 500,817 | |||||||
Total Net Change for Fund | $ | 764,758 |
PEAR TREE FUNDS |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2011 (unaudited)
Quarterly Portfolio Disclosure
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (Call 1-800-SEC-0330 for more information). For a complete list of a fund’s portfolio holdings, you may also view the most recent monthly holdings report, semi-annual report or annual report on the Pear Tree Funds’ web site at www.Pear Treefunds.com.
Portfolio Proxy Voting Policies and Information
Information on the Funds’ proxy voting policies and on how the Pear Tree Funds voted proxies related to portfolio securities for the 12-month period ended June 30, 2011 is available without charge online at www.peartreefunds.com and at www.sec.gov . You may also call 1-800-326-2151 to request a free copy of the proxy voting information or the proxy voting policies.
Household Delivery of Fund Documents
With your consent, the Trust may send a single proxy statement, prospectus and shareholder report to your residence for you and any other member of your household who has an account with the Funds. If you wish to revoke your consent to this practice, you may do so by notifying the Fund’s transfer agent, by phone or in writing (see “For Account Information”). The mailing of separate proxy statements, prospectuses and shareholder reports will begin within 30 days after receiving your notice.
PEAR TREE FUNDS |
MANAGEMENT CONTRACT AND ADVISORY
CONTRACT APPROVAL
On May 19, 2011 the Board of the Trust approved the Management Agreement with the Manager and the advisory contracts with each subadviser to the following Funds: Pear Tree Columbia Small Cap Fund, Pear Tree Emerging Markets Fund, Pear Tree Polaris Foreign Value Fund and Pear Tree Polaris Foreign Value Small Cap Fund. The following describes the Board’s considerations.
Pear Tree Advisors, Inc.
Nature and Quality of Manager’s Advisory Services. The Board reviewed the Managers’ senior management and other personnel. Among other factors, the Board considered the size, education and experience of the Managers’ staff and the Managers’ approach to recruiting, training, compensating and retaining personnel. The Board considered the Managers’ supervision of Sub-Advisers. The Board considered the benefit to shareholders of investing in a fund that is part of a small family of funds using a manager-of-managers approach and providing for a selection of shareholder services, including, the ability of shareholders to exchange or transfer investments within the same class of shares among each of the Funds without incurring additional sales charges.
Nature and Quality of Other Services. The Board considered the nature, quality, cost and extent of administrative and shareholder services performed by the Manager and affiliated companies under the existing Management Agreements and under separate agreements covering administrative services, transfer agency functions and other services. The Board, including the Independent Trustees, has also considered the nature and extent of the Manager’s supervision of third-party service providers, principally Fund accountants (pricing, recordkeeping), securities lending agents, custodians and subcustodians.
Fees and Expenses. The Board considered each Fund’s advisory fee, subadvisory fee and expense ratio compared with the management fees, subadvisory fees and expense ratios of the Selected Peer Group. Fees and expenses for each Fund are discussed below under each Fund.
Conclusion. Based on its evaluation of all material factors, the Board, including the Independent Trustees, concluded that the existing advisory fee structure is fair and reasonable, and that the existing Management Agreement should be approved.
Pear Tree Columbia Small Cap Fund — (Sub-Adviser—Columbia Partners, L.L.C. Investment Management)
Investment Performance. The Board reviewed the Fund’s investment performance as well as the performance of the Selected Peer Group, and the performance of an appropriate index or combination of indices. The Board noted that the Fund underperformed its Selected Peer Group for each of the one-, three-, five- and ten-year periods, but that the Fund outperformed the subsection of the Selected Peer Group comprised of funds managed via a similar adviser/sub-adviser structure (the “Sub-Advised Peer Group”) for the ten-year period.
Fees and Expenses. The Board considered the Fund’s management fee, subadvisory fee and expense ratio compared with fees and expense ratios of the Selected Peer Group. The Board
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PEAR TREE FUNDS |
MANAGEMENT CONTRACT AND ADVISORY
CONTRACT APPROVAL
noted that the Fund’s management fee and expense ratio are above the average and the median of the funds in its Selected Peer Group. Additionally, the Board noted that the Fund’s contractual management fee is higher than the assets weighted average of the Sub-Advised Peer Group at all asset levels presented.
Conclusion. Based on its evaluation of all material factors, the Board, including the Independent Trustees, concluded that the advisory fees for the Fund are fair and reasonable, and that the existing Sub-Advisory Agreement with this Sub-Adviser should be approved.
Pear Tree Emerging Markets Fund — (Sub-Adviser—PanAgora Asset Management, Inc.)
Investment Performance. The Board reviewed the Fund’s investment performance as well as the performance of a Selected Peer Group of mutual funds, and the performance of an appropriate index or combination of indices. The Board noted that the Fund underperformed its Selected Peer Group for the three- and five- year periods, but outperformed the Selected Peer Group for the one- and ten- year periods.
Fees and Expenses. The Board considered the Fund’s management fee, subadvisory fee and expense ratio compared with the fees and expense ratios of the Selected Peer Group. The Board noted that the Fund’s management fee is above the average and the median of the funds in its Selected Peer Group, and that the Fund’s total expense ratio is above the average and the median of the Fund’s Sub-Advised Peer Group. Additionally, the Board noted that the Fund’s contractual management fee is competitive with the assets weighted average of the Selected Peer Group at all asset levels presented and is lower than the assets weighted average of the Sub-Advised Peer Group at all asset levels presented.
Conclusion. Based on its evaluation of all material factors, the Board, including the Independent Trustees, concluded that the advisory fees for the Fund are fair and reasonable, and that the existing Sub-Advisory Agreement with this Sub-Adviser should be approved.
Pear Tree Polaris Foreign Value Fund — (Sub-Adviser—Polaris Capital Management, LLC)
Investment Performance. The Board reviewed the Fund’s investment performance as well as the performance of the Selected Peer Group, and the performance of an appropriate index or combination of indices. The Board noted that the Fund outperformed its Selected Peer Group for the one-, three-, five- and ten- year periods.
Fees and Expenses. The Board considered the Fund’s management fee, subadvisory fee and expense ratio compared with the fees and expense ratios of the Selected Peer Group. It also considered the amount and nature of fees paid by shareholders. The Board noted that Fund’s management fee and expense ratio are above the average and the median for the Selected Peer Group; however, they are competitive with the average and the median of the Sub-Advised Peer Group. Additionally, the Board noted that the contractual management fee is above the assets-weighted average of the Selected Peer Group at various asset levels and the Subadvised Peer Group at all asset levels presented.
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MANAGEMENT CONTRACT AND ADVISORY
CONTRACT APPROVAL
Conclusion. Based on its evaluation of all material factors, the Board, including the Independent Trustees, concluded that the advisory fees for the Fund are fair and reasonable, and that the existing Sub-Advisory Agreement with this Sub-Adviser should be approved.
Pear Tree Polaris Foreign Value Small Cap Fund — (Sub-Adviser—Polaris Capital Management, Inc.)
Investment Performance. The Board reviewed the Fund’s investment performance as well as the performance of the Selected Peer Group, and the performance of an appropriate index or combination of indices. The Board noted that the Fund underperformed its Selected Peer Group for the one year period.
Fees and Expenses. The Board considered the Fund’s management fee, subadvisory fee and expense ratio compared with the fees and expense ratios of the Selected Peer Group. It also considered the amount and nature of fees paid by shareholders. The Board noted that the Fund’s management fee is above the median and slightly above the average of the Fund’s Selected Peer Group. The Board also noted that the expense ratio of the Fund is above the average and the median of the Selected Peer Group and the Sub-Advised Peer Group for the most recent period reviewed. Additionally, the Board noted that the contractual management fee is competitive with the assets-weighted average of the Selected Peer Group and the Sub-Advised Peer Group at all asset levels presented.
Conclusion. Based on its evaluation of all material factors, the Board, including the Independent Trustees, concluded that the advisory fees for the Fund are fair and reasonable, and that the proposed Sub-Advisory Agreement with this Sub-Adviser be approved.
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PEAR TREE FUNDS |
SERVICE PROVIDERS
Manager | Pear Tree Advisors, Inc., 55 Old Bedford Road, Lincoln, MA 01772 |
Subadvisers | Columbia Partners, L.L.C., Investment Management, 5425 Wisconsin Avenue, Suite 700, Chevy Chase, MD 20815 PanAgora Asset Management, Inc., 470 Atlantic Avenue, 8th Floor, Boston, MA 02210 Polaris Capital Management, LLC, 125 Summer Street, Boston, MA 02210 |
Distributor | U.S. Boston Capital Corporation, 55 Old Bedford Road, Lincoln, MA 01773 |
Custodian | State Street Bank and Trust Company, One Lincoln Street, Boston, MA 02111 |
Fund Accountant | State Street Bank and Trust Company, One Lincoln Street, Boston, MA 02111 |
Transfer Agent | Pear Tree Institutional Services, 55 Old Bedford Road, Lincoln, MA 01773 |
Independent Registered Public Accounting Firm | Tait, Weller & Baker LLP, 1818 Market Street, Suite 2400 Philadelphia, PA 19103 |
Legal Counsel | McLaughlin & Hunt LLP, Ten Post Office Square, 8th Floor, Boston, MA 02109 |
For Account Information | For Pear Tree Funds information, contact your financial adviser or, if you receive account statements directly from Pear Tree Funds, you can also call 1-800-326-2151. Telephone representatives are available from 8:30 a.m. to 4:30 p.m. Eastern Time. Or visit our website, www.peartreefunds.com |
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ITEM 2. Code of Ethics
Not applicable for report period.
ITEM 3. Audit Committee Financial Expert
Not applicable for report period.
ITEM 4. Principal Accountant Fees and Services
Not applicable for report period.
ITEM 5. Audit Committee of Listed Registrants
Not applicable.
ITEM 6. Schedule of Investments
Not applicable.
ITEM 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
ITEM 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
ITEM 9 | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not applicable.
ITEM 10 Submission of Matters to a Vote of Security Holders
Not applicable.
ITEM 11. Controls and Procedures
(a) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of such procedures provide reasonable assurance that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There has been no change in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. Exhibits
(a) Certifications pursuant to Rule 30a-2(a) by the chief executive and financial officers.
(b) | Certification pursuant to Rule 30a-2(b) and Section 906 by the chief executive and financial officers. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pear Tree Funds
By /s/ Willard L. Umphrey
Willard L. Umphrey, President
Date: November 28, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Willard L. Umphrey
Willard L. Umphrey, President
Date: November 28, 2011
By /s/ Leon Okurowski
Leon Okurowski, Treasurer
Date: November 28, 2011
EXHIBIT LIST
(a) Certifications pursuant to Rule 30a-2(a) by the chief executive and financial officers.
(b) Certification pursuant to Rule 30a-2(b) and Section 906 by the chief executive and
financial officers.