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 811-03790
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, 2023 through March 31, 2024
ITEM 1(a): REPORTS TO SHAREHOLDERS.
ANNUAL REPORT
MARCH 31, 2024
U.S. EQUITY FUNDS
PEAR TREE POLARIS SMALL CAP FUND
PEAR TREE QUALITY FUND
GLOBAL EQUITY FUND
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
INTERNATIONAL EQUITY FUNDS
PEAR TREE POLARIS FOREIGN VALUE FUND
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
See the inside front cover for important information about access to your fund’s annual and
semiannual shareholder reports.
Important Information About Access to Shareholder Reports
Paper copies of the Pear Tree Funds’ shareholder reports like this one are no longer being sent by mail, unless you specifically request paper copies of the reports from Pear Tree Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already have elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from Pear Tree Funds or your financial intermediary electronically by contacting your financial intermediary or if you invest directly with Pear Tree Funds, by calling 1-800-326-2151 or logging on to www.peartreefunds.com
You may elect to receive all future reports in paper free of charge. You can inform Pear Tree Funds or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting Pear Tree Funds at 1-800-326-2151 or your financial intermediary. Your election to receive or not receive reports in paper will apply to all funds held with Pear Tree Funds.
Statements Regarding Forward-Looking Information
Pear Tree Funds makes statements in this Annual Shareholders’ Report (this “Shareholders Report”) that are forward-looking statements within the meaning of the federal securities laws. Words, expressions, and statements regarding future periods, such as “believe,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “seek,” and “may,” are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause any of the Pear Tree Funds’ actual results, performance, or achievements, or industry results, to differ materially from any predictions of future results, performance, or achievements that Pear Tree Funds expresses or implies in this Shareholders Report.
The forward-looking statements included in this Shareholders Report are based upon Pear Tree Funds’ and its investment manager’s and sub-advisers’ current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions. Those conditions and decisions are difficult, and sometimes impossible, to predict accurately and many are beyond the control of Pear Tree Funds, its investment manager and its sub-advisers. Although Pear Tree Funds, its investment manager and its sub-advisers believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, each Pear Tree Fund’s actual results and performance could differ materially from those predicted results and performance set forth in the forward-looking statements.
Factors that could have a material adverse effect on a Pear Tree Fund’s operations and future prospects are described in the Pear Tree Funds’ current prospectus.
All forward-looking statements are made as of the date of this Shareholders Report and the risk that actual results will differ materially from the expectations expressed in this Shareholders Report will increase with the passage of time. Except as otherwise required by the federal securities laws, none of Pear Tree Funds, its investment manager or any of its sub-advisers undertakes any obligation to publicly update or revise any forward-looking statements after the date of this Shareholders Report, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in the forward-looking statements included in this Shareholders Report, the inclusion of such forward-looking statements should not be regarded as a representation by Pear Tree Funds, its investment manager, its sub-advisers or any other person that the objectives and plans set forth in this Shareholders Report will be achieved.
Pear Tree Polaris Small Cap Fund
Pear Tree Quality Fund
Pear Tree Essex Environmental Opportunities Fund
Pear Tree Polaris Foreign Value Fund
Pear Tree Polaris Foreign Value Small Cap Fund
Pear Tree Polaris International Opportunities Fund
ANNUAL REPORT
March 31, 2024
TABLE OF CONTENTS
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 1-800-326-2151.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither Pear Tree Funds nor U.S. Boston Capital Corporation is a bank.
Dear Fellow Shareholder,
We are pleased to provide you with the Pear Tree Funds’ Annual Report for the fiscal year ended March 31, 2024 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 info@peartreefunds.com or call us at 1-800-326-2151 with any questions or for assistance on your account.
Sincerely,
Willard Umphrey
President and Chairman
As used in this report; “Fund” refers to a Pear Tree Fund and “Funds” refers to more than one Pear Tree Fund or all Pear Tree Funds, depending on the context.
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 the Funds’ investment manager and/or sub-advisers 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 subadvisers 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 to purchase, hold or sell 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.
FUND EXPENSES
We believe it is 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 on the following page.
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 being invested at the beginning of the period and held for the entire period from October 1, 2023 to March 31, 2024.
Actual Expenses
The first line for each Share Class for each Fund in the table on the following page 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 (e.g., an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each Share Class for each Fund in the table on the following page 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 only 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.
Expense Example for the 6 months ended March 31, 2024
These examples are based on $1,000 being invested at the beginning of the period and held for the entire period from October 1, 2023 to March 31, 2024.
| | | | | | |
Pear Tree Fund | Share Class | Total Return Description | Beginning Account Value 10/1/23 | Ending Account Value 3/31/2024 | Annualized Expense Ratio | Expenses Paid* 10/1/2023- 3/31/2024 |
Small ** | Ordinary | Actual | $1,000.00 | $1,188.30 | 1.39% | $7.60 |
| Hypothetical | $1,000.00 | $1,018.05 | 1.39% | $7.01 |
Institutional | Actual | $1,000.00 | $1,190.50 | 1.02% | $5.59 |
| Hypothetical | $1,000.00 | $1,019.89 | 1.02% | $5.16 |
Quality ** | Ordinary | Actual | $1,000.00 | $1,239.20 | 1.14% | $6.36 |
| Hypothetical | $1,000.00 | $1,019.32 | 1.14% | $5.74 |
Institutional | Actual | $1,000.00 | $1,241.80 | 0.76% | $4.28 |
| Hypothetical | $1,000.00 | $1,021.18 | 0.76% | $3.86 |
Environmental Opportunities | Ordinary | Actual | $1,000.00 | $1,066.20 | 1.24% | $6.42 |
| Hypothetical | $1,000.00 | $1,018.78 | 1.24% | $6.28 |
Institutional | Actual | $1,000.00 | $1,067.70 | 0.99% | $5.14 |
| Hypothetical | $1,000.00 | $1,020.03 | 0.99% | $5.02 |
R6 | Actual | $1,000.00 | $1,068.60 | 0.95% | $4.93 |
| Hypothetical | $1,000.00 | $1,020.23 | 0.95% | $4.82 |
Foreign Value | Ordinary | Actual | $1,000.00 | $1,152.60 | 1.41% | $7.56 |
| Hypothetical | $1,000.00 | $1,017.97 | 1.41% | $7.09 |
Institutional | Actual | $1,000.00 | $1,155.00 | 1.04% | $5.58 |
| Hypothetical | $1,000.00 | $1,019.82 | 1.04% | $5.23 |
R6 | Actual | $1,000.00 | $1,155.00 | 0.94% | $5.08 |
| Hypothetical | $1,000.00 | $1,020.29 | 0.94% | $4.76 |
Foreign Value Small Cap | Ordinary | Actual | $1,000.00 | $1,135.40 | 1.40% | $7.49 |
| Hypothetical | $1,000.00 | $1,017.98 | 1.40% | $7.08 |
Institutional | Actual | $1,000.00 | $1,136.80 | 1.03% | $5.52 |
| Hypothetical | $1,000.00 | $1,019.83 | 1.03% | $5.22 |
R6 | Actual | $1,000.00 | $1,136.80 | 1.00% | $5.37 |
| Hypothetical | $1,000.00 | $1,019.98 | 1.00% | $5.07 |
International Opportunities | Ordinary | Actual | $1,000.00 | $1,094.20 | 1.71% | $8.97 |
| Hypothetical | $1,000.00 | $1,016.43 | 1.71% | $8.64 |
Institutional | Actual | $1,000.00 | $1,098.20 | 1.37% | $7.19 |
| Hypothetical | $1,000.00 | $1,018.15 | 1.37% | $6.92 |
R6 | Actual | $1,000.00 | $1,099.50 | 1.35% | $7.07 |
| Hypothetical | $1,000.00 | $1,018.27 | 1.35% | $6.79 |
* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period multiplied by 183/366 (to reflect the one-half year period).
** No Class R6 Shares were outstanding for this Fund during the reporting period.
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4
Pear Tree Polaris Small Cap Fund
INVESTMENT PROFILE
| | | | |
All Data as of March 31, 2024 Investment Commentary (prepared by Polaris Capital Management, LLC, sub-adviser to Pear Tree Polaris Small Cap Fund) For the fiscal year ended March 31, 2024, the Pear Tree Polaris Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the Russell 2000 Total Return Index (the “Index”). The Fund had a return of 21.12% at net asset value compared to 19.71% for the Index. | Fund Information | | | |
Net Assets | $88.1 Million |
Number of Companies | 53 | | |
Price to Book Ratio | 2.0 | | |
Price to Earnings Ratio | 11.7 | | |
| Ordinary | | Institutional |
Total Expense Ratio (Gross)* | 1.53% | | 1.28% |
Total Expense Ratio (Net)* | 1.53% | | 1.16% |
Ticker Symbol | USBNX | | QBNAX |
| | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. The fund had no Class R6 Shares outstanding during the reporting period. |
The Fund had notable outperformance in overweight cyclical sectors, including Industrials, Financials and Materials, slightly offset by lackluster Health Care holdings. Nearly 75% of holdings had double-digit gains for the period, led by contributions from Eagle Materials Inc., Allison Transmission Holding, Barrett Business Services, and three Financials: OFG Bancorp., Hercules Capital and South Plains Financial.
Strength in North American on-highway and defense divisions, coupled with price increases, drove Allison’s net sales and order volumes higher. Eagle posted record revenues (on the back of strong cement demand), gross margin expansion and successful acquisition integrations. Business outsourcing provider, Barrett, achieved customer growth and improved profitability metrics.
Among Financials, portfolio growth and an increase in core yields drove Hercules Capital’s results, with investment income and net investment income at high levels. South Plains Financial Inc. reported robust quarterly earnings, with higher net income, EPS and a growing deposit base. The company also sold their insurance operations, intent on using proceeds for a stock buyback. Puerto Rico-based OFG Bancorp improved its competitive position in the Commonwealth, with hefty loan demand and credit quality.
Detractors included Computer Programs and Systems, which reported inconsistent demand and bookings, leading to a revision in guidance. Pacira BioSciences declined after consecutive quarters of sales misses; the CEO stepped down, surprising the market. First quarter 2023 sales fell short of expectations, causing Dril-Quip shares to trade lower. The company failed to recover throughout the rest of the year, as weaker energy prices and supply chain constraints in the offshore rig market weighed on industry sentiment.
Portfolio Changes
During the period, the Fund sold more than a half dozen stocks, a proportion of which were liability-sensitive Financials likely to come under pressure in a sustained high interest rate environment. Others were exited as they reached valuation targets. Cash was reallocated to purchase Global Medical REIT Inc., which manages medical office buildings and outpatient clinics; NOW Inc., which distributes downstream energy and industrial products; Acuity Brands Inc., the U.S. commercial/industrial lighting leader; The Buckle Inc., a clothing/denim retailer operating across 42 states; and two high quality Texas banks, Cullen/Frost and Southside Bancshares.
Pear Tree Polaris Small Cap Fund
Short-term volatility may persist as the Fed navigates inflation and the timing of rate cuts. When rates do drop, cyclicals will likely benefit. Our research has identified a number of hard-hit cyclicals with great recovery potential in 2024. We will continue to add to our portfolio on an opportunistic basis, intent on continued outperformance.
| |
Top 10 Holdings |
Percentage of total net assets | 28.0% |
Barrett Business Services, Inc. | 3.3% |
OFG Bancorp | 3.1% |
Graphic Packaging Holding Co. | 3.0% |
South Plains Financial, Inc. | 2.8% |
Cabot Corporation | 2.7% |
International Bancshares Corporation | 2.7% |
Hercules Capital, Inc. | 2.6% |
Ingredion Incorporated | 2.6% |
MKS Instruments, Inc. | 2.6% |
Eagle Materials Inc. | 2.6% |
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% |
Industrials | 35.6% |
Financials | 22.5% |
Materials | 10.5% |
Energy | 7.6% |
Information Technology | 5.9% |
Consumer Discretionary | 5.6% |
Health Care | 5.3% |
Consumer Staples | 2.6% |
Real Estate | 1.3% |
CASH + other assets (net) | 3.1% |
|
Value of a $10,000 Investment Pear Tree Polaris Small Cap. (PTSC) Ordinary Shares vs. Russell 2000 Index* |
|
*The current sub-adviser took over management of the Fund’s portfolio on 01/01/2015 and modified the Fund’s principal investment strategy. Returns that cover periods prior to that date include performance information of another investment sub-advisor employing a different investment strategy.
Pear Tree Polaris Small Cap Fund
| | | | | | | | | | | | | |
Average Annual Total Returns |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year(3) | Since Inception(3) | Inception Date |
Ordinary Shares | 7.06 | % | 18.83 | % | 21.12 | % | 8.46 | % | 6.16 | % | 9.20 | % | 08/03/1992 |
Institutional Shares(1) | 7.15 | % | 19.05 | % | 21.53 | % | 8.85 | % | 6.51 | % | 8.89 | % | 01/06/1993 |
Russell 2000(2) | 5.18 | % | 19.94 | % | 19.71 | % | 8.11 | % | 7.58 | % | 9.31 | % | __________ |
(1)Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The Russell 2000 Index is a market capitalization-weighted index of 2,000 small company stocks. It is widely recognized as representative of the general market for small company stocks. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. You cannot invest directly in an Index. For comparative performance purposes, the beginning date of the Index is 08/03/1992. The Russell 2000 Index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group.
(3)The current sub-adviser took over management of the Fund’s portfolio on 01/01/2015 and modified the Fund’s principal investment strategy. Returns that cover periods prior to that date include performance information of another investment sub-adviser employing a different investment strategy.
The Fund had no Class R6 Shares outstanding during the reporting period.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Small company stocks may trade less frequently and in a limited volume, and their prices may fluctuate more than stocks of other companies. Small company stocks may therefore be more vulnerable to adverse developments than those of larger companies. The Fund may invest in issuers in the real estate industry. Changes in real estate values or economic downturns can have a significant negative effect on these issuers. The Fund may invest in foreign issuers that trade on U.S. stock exchanges. These issuers may be subject to special risks including different corporate governance rules and bankruptcy laws.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than diversified funds. As a result, a decline in the value of the securities of one issuer could have a significant negative effect on the Fund. The Fund may have significant investments in one or more specific industry sectors, subjecting it to risks greater than general market risk. For example, adverse news from just one or two companies in a particular industry can hurt the prices of all stocks in that industry.
Industrial industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, worldwide competition, and liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control.
Financial services industries may be adversely affected by, among other things, regulatory changes, the availability of capital, the costs of borrowing, the rate of debt defaults, interest rate movements and competition.
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8
Pear Tree Polaris Small Cap Fund
INVESTMENT PROFILE
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All Data as of March 31, 2024 Investment Commentary (prepared by Pear Tree Advisors, Inc., the Investment Manager to Pear Tree Quality Fund) For the fiscal year ended March 31, 2024, Pear Tree Quality Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, S&P 500 (the “Index”). The Fund achieved a return of 31.08% at net asset value compared to 29.88% for the Index. | Fund Information | | | |
Net Assets | $323.4 Million |
Number of Companies | 41 | | |
Price to Book Ratio | 5.4 | | |
Price to Earnings Ratio | 27.4 | | |
| Ordinary | | Institutional |
Total Expense Ratio (Gross)* | 1.51% | | 1.26% |
Total Expense Ratio (Net)* | 1.19% | | 0.79% |
Ticker Symbol | USBOX | | QGIAX |
| | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. The fund had no Class R6 Shares outstanding during the reporting period. |
Market Conditions and Investment Strategies
The Fund’s investment manager 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 sub-adviser, at the direction of the investment manager, rebalances the Fund’s portfolio to correspond generally to the Target Portfolio’s most recent holdings as publicly reported.
Over the previous twelve months, the Industrials sector was the largest positive contributor to the Fund’s performance mainly due to stock selection. The Communication Services, Energy, Financials, Health Care, Materials, Real Estate and Utilities sectors also contributed to performance.
The Consumer Staples, Consumer Discretionary and Information Technology sectors detracted from performance. According to the Target Portfolio, overall, stock selection and sector selection contributed to performance.
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 fiscal year ended March 31, 2024, the Fund rebalanced the holdings four times in response to the quarterly holdings reported by the Target Portfolio. The four rebalances resulted in the sale of two positions. The Fund also opened new positions in two companies: one Industrial Company and one Consumer Staples company.
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.
| |
Top 10 Holdings |
Percentage of total net assets | 40.0% |
Microsoft Corporation | 6.8% |
UnitedHealth Group, Inc. | 5.0% |
Amazon.com, Inc. | 4.0% |
Safran SA | 3.8% |
Meta Platforms, Inc. | 3.6% |
Lam Research Corporation | 3.5% |
Johnson & Johnson | 3.4% |
Oracle Corporation | 3.4% |
SAP AG | 3.3% |
Apple, Inc. | 3.2% |
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% |
Information Technology | 36.8% |
Health Care | 24.3% |
Consumer Discretionary | 10.9% |
Consumer Staples | 8.2% |
Industrials | 6.7% |
Communication Services | 6.7% |
Financials | 5.3% |
Energy | 0.0% |
Materials | 0.0% |
Real Estate | 0.0% |
Utilities | 0.0% |
CASH + other assets (net) | 1.1% |
|
Value of a $10,000 Investment Pear Tree Quality (PTQ) Ordinary Shares vs. S&P 500 Index |
|
| | | | | | | | | | | | | |
Average Annual Total Returns |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year | Since Inception(3) | Inception Date |
Ordinary Shares | 10.56 | % | 23.92 | % | 31.08 | % | 15.98 | % | 13.71 | % | 10.31 | % | 05/06/1985 |
Institutional Shares(1) | 10.70 | % | 24.18 | % | 31.58 | % | 16.43 | % | 14.09 | % | 9.67 | % | 03/25/1991 |
S&P 500(2) | 10.56 | % | 23.48 | % | 29.88 | % | 15.05 | % | 12.96 | % | 11.39 | % | __________ |
(1)Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The S&P 500 Index is an unmanaged index of stocks chosen for their size and industry characteristics. It is widely recognized as representative of stocks in the United States. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. You cannot invest directly in the Index. For comparative performance purposes the beginning date for the Index is 05/29/1985. S&P 500 Index is a registered mark of Standard & Poor’s.
(3)Pear Tree Advisors took over management of the Fund’s portfolio and the Fund changed its strategy on 01/01/2011. The Fund adopted the current Target Portfolio as its target portfolio also on 01/01/2011. Returns that cover periods prior to that date include performance information of other investment sub-advisers pursuing different strategies.
The Fund had no Class R6 Shares outstanding during the reporting period.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Securities issued by large-cap companies tend to be less volatile than securities issued by smaller companies. Larger companies, may not be able to attain the high growth rates of successful smaller companies, and may be unable to respond as quickly to competitive challenges.
Investing in foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund may be more exposed to individual stock volatility than diversified funds. As a result, a decline in the value of the securities of one issuer could have a significant negative effect on the Fund. The Fund may have significant investments in one or more specific industry sectors, subjecting it to risks greater than general market risk. For example, adverse news from just one or two companies in a particular industry can hurt the prices of all stocks in that industry.
Information technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions.
Health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.
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12
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
INVESTMENT PROFILE
| | | | | | |
All Data as of March 31, 2024 Investment Commentary (prepared by Essex Investment Management Company, LLC, sub-adviser to Pear Tree Essex Environmental Opportunities Fund). For the fiscal year ended March 31, 2024, the Pear Tree Essex Environmental Opportunities Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI World Index (the “Index”). The Fund achieved a return of (8.29%) at net asset value compared to 25.72% for the Index. | Fund Information | | | | | |
Net Assets | $45.5 Million | | |
Number of Companies | 33 | | | | |
Price to Book Ratio | 3.2 | | | | |
Price to Earnings Ratio | 37.7 | | | | |
| Ordinary | | Institutional | | R6 |
Total Expense Ratio (Gross)* | 1.58% | | 1.33% | | 1.18% |
Total Expense Ratio (Net)* | 1.24% | | 0.99% | | 0.95% |
Ticker Symbol | EEOFX | | GEOSX | GEORX |
| | | | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. |
Market Conditions and Investment Strategies
The twelve months ended March 31, 2024 was a strong year for global stock markets but it was a difficult environment for the Fund. As a reminder, the Fund invests strictly in companies the sub-adviser believes provide solutions to the world’s environmental challenges, including renewable energy, power semiconductors, grid infrastructure, clean water, electric vehicles, energy storage and factory automation. Despite the increasing need for such solutions, macro headwinds have been buffeting the clean tech/climate tech arena as evidenced by the very weak performance of our secondary benchmark, the Wilderhill Clean Energy Index1, which returned a (43.1%) for the twelve months ended March 31, 2024. The most significant headwinds that have disproportionately impacted the Fund are rising interest rates, inflationary pressures, confusion around the market impact of incentive programs such as the Inflation Reduction Act and general investor apathy for small and mid-sized growth companies.
Portfolio Changes
During the fiscal year ended March 31, 2024, we continued to reduce our exposure to renewable energy given a challenging interest rate and cost environment and have reduced our exposure to electric vehicle (“EV”) related companies given a near-term slowdown in EV sales. We have increased our weight in water, power technology and grid infrastructure companies. We have long been emphasizing the need for improvements in our electrical grid, something that is now appreciated given the energy intensity of artificial intelligence and data centers.
1The Wilderhill Clean Energy Index is composed of stocks of companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation.
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
Despite the challenging year, the underlying multi-decade trends in clean tech, climate tech and the energy transition are firmly intact. Sentiment during this current clean tech downturn is as poor as we have witnessed in our more than 15 years of experience, but we believe the headwinds will abate as the problems to be solved are great: we need more clean water, we need a more reliable and efficient electrical grid, we need greater agricultural productivity for a growing population, we need more sustainable energy sources. Importantly, the underlying clean technologies get cheaper and better every day. We see that the leading companies in the industry are exhibiting paths to profitable, multi-year growth. The valuations for many are the most compelling that we have seen in a long time.
| |
Top 10 Holdings |
Percentage of total net assets | 43.9% |
NextEra Energy, Inc. | 6.3% |
Primoris Services Corporation | 4.5% |
Badger Meter, Inc. | 4.4% |
Hubbell Incorporated | 4.4% |
Kion Group AG | 4.3% |
Mueller Water Products, Inc. | 4.2% |
Landis+Gyr Group AG | 4.1% |
Kingspan Group plc | 4.0% |
Valmont Industries, Inc. | 4.0% |
Keyence Corporation | 3.7% |
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% |
Industrials | 56.2% |
Information Technology | 24.6% |
Materials | 8.2% |
Utilities | 6.2% |
Financials | 2.6% |
Consumer Discretionary | 0.8% |
CASH + other assets (net) | 1.4% |
| |
Top 10 Country Allocations |
Percentage of total net assets | 98.6% |
United States | 67.6% |
Germany | 7.8% |
Japan | 6.3% |
Switzerland | 6.1% |
Denmark | 5.6% |
Ireland | 4.0% |
Sweden | 1.2% |
|
Value of a $10,000 Investment Pear Tree Essex Environmental Opportunities (PTEO) Ordinary Shares vs. MSCI WORLD Index* |
|
*Performance for periods prior to September 1, 2021 represents the performance of Essex Environmental Opportunities Fund, the predecessor fund of the Fund.
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
| | | | | | | | | | | | | |
Average Annual Total Returns* |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date |
Ordinary Shares | (1.47 | )% | 6.62 | % | (8.29 | )% | 6.64 | % | — | % | 4.98 | % | 9/1/2017 |
Institutional Shares(1) | (1.37 | )% | 6.77 | % | (8.03 | )% | 6.91 | % | — | % | 5.24 | % | 9/1/2017 |
R6 Shares(1) | (1.33 | )% | 6.86 | % | (7.93 | )% | — | % | — | % | (14.16 | )% | 9/1/2021 |
MSCI World(2) | 9.01 | % | 21.58 | % | 25.72 | % | 12.63 | % | — | % | 11.26 | % | __________ |
*Performance for periods prior to September 1, 2021 represents the performance of Essex Environmental Opportunities Fund, the predecessor fund of the Fund.
(1)Institutional Shares and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries. With 1,465 constituents as of 03/31/2024, the index covers approximately 85% of the free float-adjusted market capitalization in each country. You cannot invest directly in an index. For comparative performance purposes, the beginning date of the Index is 9/01/2017. The MSCI World Index is maintained by MSCI Inc.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Securities issued by large-cap companies tend to be less volatile than securities issued by smaller companies. Larger companies, may not be able to attain the high growth rates of successful smaller companies, and may be unable to respond as quickly to competitive challenges.
Investing in foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
Information Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions.
Industrial industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, worldwide competition, and liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control.
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16
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
PEAR TREE POLARIS FOREIGN VALUE FUND
INVESTMENT PROFILE
| | | | | | |
All Data as of March 31, 2024 Investment Commentary (prepared by Polaris Capital Management, LLC, sub-adviser to Pear Tree Polaris Foreign Value Fund) For the fiscal year ended March 31, 2024, the Pear Tree Polaris Foreign Value Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI EAFE Index (the “Index”). The Fund had a return of 14.66% at net asset value compared to 15.90% for the Index. | Fund Information | | | | | |
Net Assets | $3,100.9 Million | | |
Number of Companies | 61 | | | | |
Price to Book Ratio | 1.6 | | | | |
Price to Earnings Ratio | 14.3 | | | | |
| Ordinary | | Institutional | | R6 |
Total Expense Ratio (Gross)* | 1.52% | | 1.27% | | 1.12% |
Total Expense Ratio (Net)* | 1.42% | | 1.05% | | 0.94% |
Ticker Symbol | QFVOX | | QFVIX | | QFVRX |
| | | | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. |
Market Conditions and Investment Strategies
The Fund had strong contributions from overweight cyclicals including Financials, Consumer Discretionary, Information Technology and Materials, modestly offset by select Health Care holdings. At the country level, the Fund outperformed in Germany, U.K., Switzerland, Belgium and a number of out-of-benchmark locales.
The top contributor was memory chip maker SK Hynix, up more than 100% for the year, noting improvement in DRAM pricing and artificial intelligence (AI) demand for its very advanced high bandwidth memory chips. AI was the driving force behind other portfolio holdings too — but to different effect. Publicis Groupe was up markedly after announcing solid fiscal year-end results and promoting a new strategy to become the industry’s first AI-powered Intelligent System to be built in-house. Teleperformance declined on renewed concerns that generative AI will disrupt the French call center’s business.
Among Financials, Puerto Rican bank, Popular Inc., managed to beat street estimates for earnings, while German reinsurers capitalized on hard market pricing and better returns on their investment portfolios.
The “electrification of everything” and a resurgent Chinese economy drove copper demand, but supply side constraints were an equally, if not more important, determinant of pricing. Pure copper player Lundin Mining jumped more than 50% for the period.
Among detractors, Norwegian fertilizer manufacturer Yara International posted lackluster results, as profitability dropped on reduced margins. Irish drug maker, Jazz Pharmaceuticals, had mixed news as its key product, Xywav, faced generics competition. LG Electronics reported inline sales, but operating profits disappointed on higher marketing costs and expenses.
Portfolio Changes
During the period, a number of Fund holdings were sold opportunistically following strong stock price recoveries (Jumbo SA, Honda Motor, Hyundai Mobis), while a few others were exited on deteriorating fundamentals. New buys included Japanese trading company, Itochu Corp.; ENI SpA, the Italian oil and gas company; Daimler Truck AG, the global manufacturer for heavy-duty trucks and buses; and a handful of other names in diverse industries and geographies. The Fund also has ownership of Sandoz shares due to a Novartis spin-off.
PEAR TREE POLARIS FOREIGN VALUE FUND
The timing of rate adjustments remains in question; it will be a fine balance taking into account strong global GDP growth and employment rates, geopolitical risks and election year stimulus packages among other metrics. At Polaris, we continue to perform fundamental bottom-up research, which we expect will ultimately drive differential equity returns.
| |
Top 10 Holdings |
Percentage of total net assets | 24.2% |
Daimler Truck Holding AG | 2.7% |
Lundin Mining Corporation | 2.7% |
SK Hynix, Inc. | 2.6% |
Linde plc | 2.4% |
Smurfit Kappa | 2.4% |
Publicis Groupe | 2.4% |
Samsung Electronics Company Limited | 2.3% |
Shinhan Financial Group Co., Limited | 2.3% |
Michelin (CGDE) | 2.2% |
TotalEnergies SE | 2.2% |
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 | 19.5% |
Financials | 17.8% |
Materials | 15.3% |
Industrials | 14.6% |
Communication Services | 8.7% |
Information Technology | 6.8% |
Health Care | 5.8% |
Energy | 4.1% |
Consumer Staples | 3.7% |
Real Estate | 2.0% |
Cash and Other Assets (Net) | 1.7% |
| |
Top 10 Country Allocations |
Percentage of total net assets | 85.9% |
South Korea | 13.0% |
Japan | 12.5% |
Canada | 12.2% |
France | 11.6% |
United Kingdom | 10.1% |
Germany | 9.2% |
Norway | 6.1% |
Ireland | 5.3% |
Sweden | 3.6% |
Italy | 2.3% |
|
Value of a $10,000 Investment Pear Tree Polaris Foreign Value (PTFV) Ordinary Shares vs. MSCI EAFE Index |
|
PEAR TREE POLARIS FOREIGN VALUE FUND
| | | | | | | | | | | | | |
Average Annual Total Returns |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date |
Ordinary Shares | 3.29 | % | 15.26 | % | 14.66 | % | 4.30 | % | 3.39 | % | 5.91 | % | 05/15/1998 |
Institutional Shares(1) | 3.39 | % | 15.50 | % | 15.12 | % | 4.69 | % | 3.74 | % | 7.06 | % | 12/18/1998 |
R6 Shares(1) | 3.41 | % | 15.50 | % | 15.17 | % | 4.78 | % | — | % | 5.35 | % | 02/06/2017 |
MSCI World(2) | 5.93 | % | 17.01 | % | 15.90 | % | 7.85 | % | 5.30 | % | 5.14 | % | __________ |
(1)Institutional Shares and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The MSCI Europe, Australia, and Far East (“MSCI EAFE”) Index is an unmanaged index comprised of stocks in countries other than the United States. It is widely recognized as representative of the general market for developed foreign markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. You cannot invest directly in an Index.
For comparative performance purposes, the beginning date for the Index is 05/29/1998.
The MSCI EAFE Index is maintained by MSCI Inc.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or other economic developments and can perform differently than the U.S. market.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than diversified funds. As a result, a decline in the value of the securities of one issuer could have a significant negative effect on the Fund. The Fund may have significant investments in one or more specific industry sectors, subjecting it to risks greater than general market risk. For example, adverse news from just one or two companies in a particular industry can hurt the prices of all stocks in that industry.
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20
PEAR TREE POLARIS FOREIGN VALUE FUND
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
INVESTMENT PROFILE
| | | | | | |
All Data as of March 31, 2024 Investment Commentary (prepared by Polaris Capital Management, LLC, sub-adviser to Pear Tree Polaris Foreign Value Small Cap Fund) For the fiscal year ended March 31, 2024, the Pear Tree Polaris Foreign Value Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the MSCI ACWI ex USA Small Cap Index (the “Index”). The Fund had a return of 14.81% at net asset value compared to 13.35% for the Index. | Fund Information | | | | | |
Net Assets | $1,023.1 Million | | |
Number of Companies | 66 | | | | |
Price to Book Ratio | 1.3 | | | | |
Price to Earnings Ratio | 11.5 | | | | |
| Ordinary | | Institutional | | R6 |
Total Expense Ratio (Gross)* | 1.52% | | 1.27% | | 1.12% |
Total Expense Ratio (Net)* | 1.42% | | 1.05% | | 1.02% |
Ticker Symbol | QUSOX | | QUSIX | | QUSRX |
| | | | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. |
Market Conditions and Investment Strategies
The Fund had double-digit gains in seven sectors, with notable outperformance in overweighted Consumer Discretionary, Industrials and Utilities. Communication Services and Health Care detracted most. At the country level, the portfolio outperformed in Japan, United Kingdom, France, Taiwan and the majority of other locales, offset by losses in Singapore, South Korea and Sweden.
U.K.-based Vistry Group PLC was the largest contributor to portfolio gains, as the company exited its private homebuilding business in favor of a partnership model with local governments for social housing. Italian appliance supplier De’Longhi boosted full-year guidance and announced a majority stake in espresso equipment brand, La Marzocco. Rubis’ stock jumped more than 40% on robust earnings, upbeat guidance and strategic maneuvers to sell terminals to private equity. Canadian financial company, EQB announced record quarterly earnings, maintained full year forecasts and increased its dividend. Fellow Canadian financial, goeasy, reported similarly robust results. Other top contributors included Diacel Corp, Glanbia PLC and Equatorial Energia.
Multimedia company, Future PLC, was the largest detractor, after announcing a profit miss that dragged down the stock. British financial services provider, OSB Group, booked a charge to its income statement, as investors refinanced loans en-masse once teaser rates expired. AEM issued a profit warning due to a $17-$25 million shortfall in its inventory and customer shortfalls. Other decliners included Nature Holdings, DFDS and Loomis.
Portfolio Changes
During the period, the Fund sold nearly one dozen holdings and purchased an almost equal number. Sales were largely attributable to companies reaching valuation targets. Capital was reallocated to Hikma Pharmaceuticals, a British-based drug manufacturer; Consumer Staples stock, South Korean confectionery Orion Corp.; and four new investments each in Industrials and Consumer Discretionary sectors.
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
Markets were mixed, with Europe and Asian countries slowly recovering; however, volatility remains as central banks tackle inflation/rate cut timing. On this backdrop, our research continues to identify a number of attractive investment prospects. In the coming quarters, we may replace a handful of portfolio holdings with new entrants with potentially better risk/return profiles.
| |
Top 10 Holdings |
Percentage of total net assets | 27.0% |
Vistry Group plc | 3.0% |
De’Longhi S.p.A. | 2.9% |
D’Ieteren S.A. | 2.9% |
Rubis | 2.8% |
Aalberts N.V. | 2.8% |
Hexpol AB | 2.7% |
Elis S.A. | 2.6% |
Glanbia plc | 2.5% |
Daicel Corporation | 2.5% |
Signify N.V. | 2.3% |
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% |
Industrials | 24.4% |
Financials | 21.5% |
Consumer Discretionary | 19.9% |
Materials | 8.1% |
Information Technology | 6.7% |
Utilities | 6.1% |
Consumer Staples | 4.4% |
Energy | 2.3% |
Health Care | 2.0% |
Communication Services | 1.0% |
Real Estate | 0.8% |
CASH + other assets (net) | 2.8% |
| |
Top 10 Country Allocations |
Percentage of total net assets | 70.4% |
United Kingdom | 17.2% |
Japan | 11.3% |
France | 10.0% |
South Korea | 6.0% |
Netherlands | 5.1% |
Sweden | 5.1% |
Thailand | 4.4% |
Canada | 4.2% |
Norway | 4.1% |
Ireland | 3.0% |
|
Value of a $10,000 Investment Pear Tree Foreign Value Small Cap (PTFVSC) Ordinary Shares vs. MSCI ACWI ex USA Small Cap Index |
|
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
| | | | | | | | | | | | | |
Average Annual Total Returns\ |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date |
Ordinary Shares | 1.72 | % | 13.54 | % | 14.81 | % | 6.40 | % | 4.71 | % | 6.13 | % | 05/01/08 |
Institutional Shares(1) | 1.79 | % | 13.68 | % | 15.20 | % | 6.78 | % | 5.06 | % | 6.44 | % | 05/01/08 |
R6 Shares(1) | 1.70 | % | 13.68 | % | 15.13 | % | 6.81 | % | — | % | 6.64 | % | 02/06/17 |
MSCI ACWI ex USA Small Cap(2) | 2.21 | % | 12.63 | % | 13.35 | % | 6.71 | % | 5.16 | % | 5.01 | % | __________ |
(1)Institutional Shares and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The MSCI ACWI ex USA Small Cap Index captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States). With 4,424 constituents as of 03/31/2024, the index covers approximately 14% of the global equity opportunity set outside the U.S. You cannot invest directly in an index. For comparative performance purposes, the beginning date of the Index is 05/01/2008.
The MSCI ACWI ex USA Small Cap Index is maintained by MSCI Inc.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than diversified funds. As a result, a decline in the value of the securities of one issuer could have a significant negative effect on the Fund. The Fund may have significant investments in one or more specific industry sectors, subjecting it to risks greater than general market risk. For example, adverse news from just one or two companies in a particular industry can hurt the prices of all stocks in that industry.
Small company stocks may trade less frequently and in a limited volume, and their prices may fluctuate more than stocks of other companies. Small company stocks may therefore be more vulnerable to adverse developments than those of larger companies.
Industrial Industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, worldwide competition, and liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control.
Financial services industries may be adversely affected by, among other things, regulatory changes, the availability of capital, the cost of borrowing, the rate of debt defaults, interest rate movements and competition.
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24
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
INVESTMENT PROFILE
| | | | | | |
All Data as of March 31, 2024 Investment Commentary (prepared by Polaris Capital Management, LLC, sub-adviser to Pear Tree Polaris International Opportunities Fund) For the fiscal year ended March 31, 2024, the Pear Tree Polaris International Opportunities Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI ACWI ex USA Index (the Index”). The Fund had a return of 3.70% at net asset value compared to 13.83% for the Index. | Fund Information | | | | | |
Net Assets | $87.2 Million | | |
Number of Companies | 76 | | | | |
Price to Book Ratio | 2.5 | | | | |
Price to Earnings Ratio | 17.3 | | | | |
| Ordinary | | Institutional | | R6 |
Total Expense Ratio (Gross)* | 1.60% | | 1.38% | | 1.23% |
Total Expense Ratio (Net)* | 1.50% | | 1.06% | | 0.99% |
Ticker Symbol | QISOX | | QISIX | | QISRX |
| | | | | |
*per prospectus dated November 7, 2023 See financial highlights for the total expense ratios for the fiscal year ended March 31, 2024. |
Market Conditions and Investment Strategies
Underperformance was mainly due to market cap concentration of the benchmark, which skews heavily to large-cap stocks (~80%), while the Fund is more diversified across the small and mid-cap space. This was most evident in the first quarter of 2024, where the return differential was greatest and favored high-flying large caps.
By contribution, Financials, Information Technology (IT) and Consumer Staples added to gains, while Industrials and Communication Services detracted. At the country level, the Fund captured double-digit returns from holdings in Italy, Japan, Canada and Norway to name a few. Losses were notable in China, Mexico, Sweden and Denmark.
More than 80% of Financials were in absolute positive territory. Muthoot Finance, India’s largest gold loan business, guided for 15% loan growth in 2024. EQB announced record quarterly earnings, maintained full year forecasts and increased its dividend. Similarly, goeasy had record quarterly earnings with robust loan growth, stable credit costs and lower net charge-offs. In Consumer Discretionary, Italian appliance supplier De’Longhi boosted full-year guidance and announced a majority stake in La Marzocco. In Materials, SOL SpA was up as the Italian technical/medical gas company reported strong annual results with higher revenues, net income and EPS.
Chinese stocks (Alibaba Group, Zhongsheng Group and China Meidong Auto Holdings) were under pressure on a protracted local recovery; consumer discretionary spending was lackluster. While Bravida had good quarterly earnings, guidance was tepid on increased competition, higher costs and lower installation volumes.
Portfolio Changes
During the period, the Fund exited a dozen stocks, the majority of which were sold as they reached Polaris’ valuation limits. Capital was reallocated to 17 new buys, mainly grouped in Industrials and IT, along with a few consumer holdings. The Fund re-purchased four companies on recent market weakness; each was previously owned and sold due to high valuation.
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
While style differences versus the benchmark hampered results this quarter, we do expect small and mid-caps to prevail in the long term. Why? Many of these companies have better growth profiles and more attractive valuations than their large cap brethren. Our strategy remains consistent and focused, as we identify many good investment candidates that can round out our portfolio.
| |
Top 10 Holdings |
Percentage of total net assets | 22.9% |
D’Ieteren S.A. | 2.5% |
Neurones S.A. | 2.5% |
SOL S.p.A. | 2.4% |
Sparebanken Vest | 2.4% |
Midea Group Co., Ltd. | 2.3% |
Cranswick plc | 2.3% |
Reply S.p.A. | 2.2% |
Computacenter plc | 2.1% |
SpareBank Nord-Norge | 2.1% |
Zhejiang Supor Co. | 2.1% |
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 Discretionary | 26.3% |
Financials | 24.5% |
Information Technology | 20.6% |
Industrials | 12.9% |
Materials | 7.3% |
Consumer Staples | 6.2% |
Utilities | 1.4% |
Cash and Other Assets (Net) | 0.8% |
| |
Top 10 Country Allocations |
Percentage of total net assets | 72.1% |
United Kingdom | 12.8% |
Canada | 9.5% |
Italy | 7.6% |
China | 7.3% |
Japan | 7.0% |
Taiwan | 6.9% |
France | 6.7% |
Australia | 5.9% |
Norway | 4.5% |
Sweden | 3.9% |
|
Value of a $10,000 Investment Pear Tree Polaris International Opportunities (PTIO) Ordinary Shares vs. MSCI ACWI ex USA Index |
|
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
| | | | | | | | | | | | | |
Average Annual Total Returns |
| 1Q 2024 | Six Months | One Year | Five Year | Ten Year | Since Inception | Inception Date |
Ordinary Shares | (2.44 | )% | 9.42 | % | 3.70 | % | 5.56 | % | — | % | 6.58 | % | 1/30/2019 |
Institutional Shares(1) | (2.33 | )% | 9.82 | % | 4.24 | % | 6.02 | % | — | % | 7.03 | % | 1/30/2019 |
R6 Shares(1) | (2.33 | )% | 9.95 | % | 4.45 | % | 6.06 | % | — | % | 7.07 | % | 1/30/2019 |
MSCI World ex USA(2) | 4.81 | % | 15.11 | % | 13.83 | % | 6.48 | % | — | % | 6.80 | % | __________ |
(1)Institutional and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution (12b-1) fees.
(2)The MSCI ACWI ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 24 Emerging Markets (EM) countries.
With 2,231 constituents as of 03/31/2024, the index covers approximately 85% of the global equity opportunity set outside the United States.
You cannot invest directly in an index For comparative performance purposes, the beginning date of the Index is 01/30/2019. The MSCI ACWI ex USA Index is maintained by MSCI Inc.
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than diversified funds. As a result, a decline in the value of the securities of one issuer could have a significant negative effect on the Fund. The Fund may have significant investments in one or more specific industry sectors, subjecting it to risks greater than general market risk. For example, adverse news from just one or two companies in a particular industry can hurt the prices of all stocks in that industry.
Small company stocks may trade less frequently and in a limited volume, and their prices may fluctuate more than stocks of other companies. Small company stocks may therefore be more vulnerable to adverse developments than those of larger companies.
Consumer Discretionary stocks are tied closely to the performance of domestic and international economies, interest rates, exchange rates, competition, consumer confidence, changes in demographics, and consumer preferences. Companies in the consumer discretionary sector depend heavily on disposable household income and consumer spending and may be strongly affected by social trends and marketing campaigns. These companies may be subject to severe competition, which may have an adverse impact on their profitability.
Financial services industries may be adversely affected by, among other things, regulatory changes, the availability of capital, the cost of borrowing, the rate of debt defaults, interest rate movements and competition.
Information Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions.
The accompanying notes are an integral part of these financial statements.
28
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—96.9%
| | | | | | |
| | | Shares | | Value | |
| | | | | |
AEROSPACE & DEFENSE — 4.1% | | | | | |
| Curtiss-Wright Corporation | | 7,200 | | $1,842,768 | |
| V2X, Inc. (a) | | 37,600 | | 1,756,296 | |
| | | | | 3,599,064 | |
AUTO COMPONENTS — 0.8% | | | | | |
| Standard Motor Products, Inc. | | 20,700 | | 694,485 | |
| | | | | |
AUTOMOBILES — 1.1% | | | | | |
| Winnebago Industries, Inc. | | 12,567 | | 929,958 | |
| | | | | |
BANKS — 16.2% | | | | | |
| BOK Financial Corporation | | 16,864 | | 1,551,488 | |
| Colony Bankcorp, Inc. | | 119,479 | | 1,374,008 | |
| Cullen/Frost Bankers, Inc. | | 15,300 | | 1,722,321 | |
| F.N.B. Corporation | | 61,980 | | 873,918 | |
| International Bancshares Corporation | | 41,700 | | 2,341,038 | |
| OFG Bancorp | | 73,100 | | 2,690,811 | |
| South Plains Financial, Inc. | | 92,300 | | 2,469,948 | |
| Southside Bancshares, Inc. | | 43,200 | | 1,262,736 | |
| | | | | 14,286,268 | |
BIOTECHNOLOGY — 1.7% | | | | | |
| Exelixis, Inc. (a) | | 61,900 | | 1,468,887 | |
| | | | | |
BUILDING PRODUCTS — 3.1% | | | | | |
| Carlisle Companies Incorporated | | 3,500 | | 1,371,475 | |
| Janus International Group, Inc. (a) | | 91,500 | | 1,384,395 | |
| | | | | 2,755,870 | |
CAPITAL MARKETS — 2.6% | | | | | |
| Hercules Capital, Inc. | | 125,545 | | 2,316,305 | |
| | | | | |
CHEMICALS — 2.7% | | | | | |
| Cabot Corporation | | 25,573 | | 2,357,831 | |
| | | | | |
COMMERCIAL SERVICES & SUPPLIES — 1.7% | | | | | |
| Ennis, Inc. | | 72,400 | | 1,484,924 | |
| | | | | |
CONSTRUCTION MATERIALS — 2.6% | | | | | |
| Eagle Materials Inc. | | 8,400 | | 2,282,700 | |
| | | | | |
CONSUMER FINANCE — 1.4% | | | | | |
| SLM Corporation | | 55,300 | | 1,204,987 | |
The accompanying notes are an integral part of these financial statements.
29
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | | |
| | | Shares | | Value | |
| | | | | |
CONTAINERS & PACKAGING — 3.0% | | | | | |
| Graphic Packaging Holding Co. | | 91,600 | | $2,672,888 | |
| | | | | |
DIVERSIFIED CONSUMER SERVICES — 0.9% | | | | | |
| Perdoceo Education Corporation | | 46,700 | | 820,052 | |
| | | | | |
ELECTRICAL EQUIPMENT — 2.9% | | | | | |
| Acuity Brands, Inc. | | 5,000 | | 1,343,650 | |
| Regal Rexnord Corporation | | 6,789 | | 1,222,699 | |
| | | | | 2,566,349 | |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.4% | | | | | |
| Arrow Electronics, Inc. (a) | | 7,700 | | 996,842 | |
| Kimball Electronics, Inc. (a) | | 50,245 | | 1,087,804 | |
| | | | | 2,084,646 | |
ENERGY EQUIPMENT & SERVICES — 3.8% | | | | | |
| Dril-Quip, Inc. (a) | | 60,500 | | 1,363,065 | |
| NOV, Inc. | | 102,938 | | 2,009,350 | |
| | | | | 3,372,415 | |
FINANCIAL SERVICES — 2.3% | | | | | |
| EVERTEC Inc. | | 49,800 | | 1,987,020 | |
| | | | | |
FOOD PRODUCTS — 2.6% | | | | | |
| Ingredion Incorporated | | 19,600 | | 2,290,260 | |
| | | | | |
GROUND TRANSPORTATION — 1.3% | | | | | |
| Knight-Swift Transportation Holdings, Inc. | | 21,494 | | 1,182,600 | |
| | | | | |
HEALTH CARE REITS — 1.4% | | | | | |
| Global Medical REIT Inc. | | 135,500 | | 1,185,625 | |
| | | | | |
HEALTH CARE TECHNOLOGY — 0.8% | | | | | |
| TruBridge, Inc. | | 72,350 | | 667,067 | |
| | | | | |
MACHINERY — 5.1% | | | | | |
| Allison Transmission Holdings, Inc. | | 28,100 | | 2,280,596 | |
| Wabash National Corporation | | 74,700 | | 2,236,518 | |
| | | | | 4,517,114 | |
METALS & MINING — 2.2% | | | | | |
| Lundin Mining Corporation | | 189,400 | | 1,939,765 | |
The accompanying notes are an integral part of these financial statements.
30
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | | |
| | | Shares | | Value | |
| | | | | |
OIL, GAS & CONSUMABLE FUELS — 3.8% | | | | | |
| CVR Energy, Inc. | | 34,400 | | $1,226,704 | |
| Diamondback Energy, Inc. | | 10,670 | | 2,114,474 | |
| | | | | 3,341,178 | |
PHARMACEUTICALS — 2.9% | | | | | |
| Harmony Biosciences Holdings, Inc. (a) | | 28,500 | | 957,030 | |
| Pacira BioSciences, Inc. (a) | | 5,600 | | 163,632 | |
| Supernus Pharmaceuticals, Inc. (a) | | 42,500 | | 1,449,675 | |
| | | | | 2,570,337 | |
PROFESSIONAL SERVICES — 10.5% | | | | | |
| Barrett Business Services, Inc. | | 23,000 | | 2,914,560 | |
| CSG Systems International, Inc. | | 24,000 | | 1,236,960 | |
| Kforce, Inc. | | 29,494 | | 2,079,917 | |
| Maximus Inc. | | 16,600 | | 1,392,740 | |
| Science Applications International Corporation | | 12,700 | | 1,655,953 | |
| | | | | 9,280,130 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.6% | | | | | |
| MKS Instruments, Inc. | | 17,200 | | 2,287,600 | |
| | | | | |
SOFTWARE — 0.9% | | | | | |
| Enghouse Systems Limited | | 35,500 | | 800,868 | |
| | | | | |
SPECIALTY RETAIL — 1.5% | | | | | |
| Buckle, Inc. | | 33,500 | | 1,349,045 | |
| | | | | |
TEXTILES, APPAREL & LUXURY GOODS — 1.3% | | | | | |
| Crocs, Inc. (a) | | 8,010 | | 1,151,838 | |
| | | | | |
TRADING COMPANIES & DISTRIBUTORS — 6.7% | | | | | |
| Air Lease Corporation | | 43,300 | | 2,227,352 | |
| Applied Industrial Technologies, Inc. | | 11,000 | | 2,173,050 | |
| NOW Inc. | | 101,700 | | 1,545,840 | |
| | | | | 5,946,242 | |
TOTAL COMMON STOCK | | | | | |
| (Cost $54,066,563) | | | | 85,394,318 | |
The accompanying notes are an integral part of these financial statements.
31
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
Short Term Investments—2.2%
| | | | | | |
| | | Par Value | | Value | |
Money Market — 2.2% | | | | | |
| UMB Money Market Special II, 5.25% (b) | | | | | |
| (Cost $ 1,908,110) | | $1,908,110 | | $1,908,110 | |
TOTAL INVESTMENTS — 99.1% | | | | | |
| (Cost $ 55,974,673) | | | | 87,302,428 | |
OTHER ASSETS & LIABILITIES (NET) — 0.9% | | | | 829,359 | |
NET ASSETS — 100% | | | | $88,131,787 | |
(a)Non-income producing security
(b)Interest rate reflects seven-day effective yield on March 31, 2024.
(c)At March 31, 2024, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $56,405,276 was as follows:
| | | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | | $32,235,399 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | | (1,338,247 | ) |
Net unrealized appreciation/(depreciation) | | $30,897,152 | |
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
32
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—98.9%
| | | | | |
| | Shares | | Value | |
AEROSPACE & DEFENSE — 3.8% |
| Safran SA | 54,298 | | $12,318,064 | |
| | | | | |
BANKS — 4.3% |
| U.S. Bancorp | 156,090 | | 6,977,223 | |
| Wells Fargo & Company | 121,245 | | 7,027,360 | |
| | | | 14,004,583 | |
BEVERAGES — 5.1% |
| Coca-Cola Company (The) | 143,024 | | 8,750,207 | |
| Constellation Brands, Inc. (a) | 15,367 | | 4,176,136 | |
| Diageo plc (b) | 24,682 | | 3,671,202 | |
| | | | 16,597,545 | |
DIVERSIFIED FINANCIAL SERVICES — 1.0% |
| American Express Company | 13,654 | | 3,108,879 | |
| | | | | |
FOOD PRODUCTS — 1.1% |
| Nestle, S.A. (b) | 33,666 | | 3,575,329 | |
| | | | | |
HEALTH CARE EQUIPMENT & SUPPLIES — 4.1% |
| Abbott Laboratories | 66,430 | | 7,550,434 | |
| Intuitive Surgical, Inc. (a) | 14,714 | | 5,872,210 | |
| | | | 13,422,644 | |
HEALTH CARE PROVIDERS & SERVICES — 10.1% |
| CIGNA Corporation | 10,221 | | 3,712,165 | |
| Elevance Health Inc. | 15,949 | | 8,270,194 | |
| Quest Diagnostics Incorporated | 33,937 | | 4,517,354 | |
| UnitedHealth Group, Inc. | 32,715 | | 16,184,111 | |
| | | | 32,683,824 | |
HOTELS, RESTAURANTS & LEISURE — 2.5% |
| Compass Group Plc (b) | 272,481 | | 8,016,391 | |
| | | | | |
HOUSEHOLD PRODUCTS — 2.0% |
| General Electric Company | 18,706 | | 3,283,464 | |
| | | | | |
INDUSTRIAL CONGLOMERATES — 1.0% |
| Unilever Plc (b) | 128,086 | | 6,428,636 | |
The accompanying notes are an integral part of these financial statements.
33
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
| | | | | |
INTERACTIVE MEDIA & SERVICES — 6.7% |
| Alphabet, Inc. Class A (a) | 66,689 | | $10,065,371 | |
| Meta Platforms, Inc. (a) | 24,079 | | 11,692,281 | |
| | | | 21,757,652 | |
IT Services — 22.8% |
| Accenture Plc | 26,514 | | 9,190,018 | |
| Adobe Systems Incorporated (a) | 9,806 | | 4,948,108 | |
| Amadeus IT Group, S.A. (b) | 30,420 | | 1,950,530 | |
| Microsoft Corporation | 51,881 | | 21,827,374 | |
| Oracle Corporation | 86,329 | | 10,843,786 | |
| salesforce.com, inc. (a) | 25,082 | | 7,554,197 | |
| SAP AG (b) | 54,670 | | 10,662,290 | |
| Visa, Inc. | 23,890 | | 6,667,221 | |
| | | | 73,643,524 | |
MACHINERY — 1.9% |
| Otis Worldwide Corp. | 62,343 | | 6,188,790 | |
| | | | | |
MULTILINE RETAIL — 2.3% |
| TJX Companies, Inc. (The) | 74,427 | | 7,548,386 | |
| | | | | |
PHARMACEUTICALS — 10.1% |
| Eli Lilly and Company | 11,940 | | 9,288,842 | |
| Johnson & Johnson | 69,178 | | 10,943,268 | |
| Merck & Co., Inc. | 59,142 | | 7,803,787 | |
| Roche Holding Ltd. (b) | 141,324 | | 4,511,062 | |
| | | | 32,546,959 | |
RETAILING — 4.9% |
| Alibaba Group Holding Ltd. (b) | 37,696 | | 2,727,682 | |
| Amazon.com, Inc. (a) | 72,165 | | 13,017,123 | |
| | | | 15,744,805 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 10.9% |
| KLA-Tencor Corporation | 9,197 | | 6,424,748 | |
| Lam Research Corporation | 11,648 | | 11,316,847 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. (b) | 70,532 | | 9,595,879 | |
| Texas Instruments, Inc. | 45,209 | | 7,875,860 | |
| | | | 35,213,334 | |
The accompanying notes are an integral part of these financial statements.
34
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
|
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 3.1% |
| Apple, Inc. | 59,412 | | $10,187,970 | |
| | | | | |
TEXTILES, APPAREL & LUXURY GOODS — 1.2% |
| LVMH Moët Hennessy-Louis Vuitton S.A. (b) | 20,789 | | 3,763,433 | |
| | | | | |
TOTAL COMMON STOCK |
| (Cost $ 244,213,597) | | | 320,034,212 | |
| | | | | |
Short Term Investments—1.3% |
| | | | | |
Money Market — 1.3% | Par Value | | Value | |
| UMB Money Market Special II, 5.25% (c) | | | | |
| (Cost $ 4,107,145) | $4,107,145 | | $4,107,145 | |
TOTAL INVESTMENT — 100.2% |
| (Cost $ 248,320,742) | | | 324,141,357 | |
OTHER ASSETS & LIABILITIES (NET) — (0.2)% | | | (744,116 | ) |
NET ASSETS — 100% | | | $323,397,241 | |
(a)Non-Income producing security
(b)ADR - American Depositary Receipts
(c)Interest rate reflects seven-day effective yield on March 31, 2024.
(d)At March 31, 2024, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $248,700,846 was as follows:
| | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $79,494,591 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (4,054,080 | ) |
Net unrealized appreciation/(depreciation) | $75,440,511 | |
The accompanying notes are an integral part of these financial statements.
35
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
36
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—98.6%
| | | | | |
| | Shares | | Value | |
DENMARK — 5.6% | | | | |
INDUSTRIALS — 5.6% | | | | |
| Cadeler AS (a) | 277,693 | | $1,359,208 | |
| Vestas Wind Systems A/S | 42,083 | | 1,175,996 | |
| | | 2,535,204 | |
GERMANY — 7.8% | | | | |
INDUSTRIALS — 4.3% | | | | |
| Kion Group AG (a) | 37,298 | | 1,965,002 | |
| | | | |
INFORMATION TECHNOLOGY — 3.5% | | | | |
| Infineon Technologies AG | 46,891 | | 1,596,036 | |
TOTAL GERMANY | | | 3,561,038 | |
| | | | | |
IRELAND — 4.0% | | | | |
INDUSTRIALS — 4.0% | | | | |
| Kingspan Group plc | 19,994 | | 1,823,840 | |
| | | | | |
JAPAN — 6.3% | | | | |
INDUSTRIALS — 2.6% | | | | |
| Kurita Water Industries Ltd. | 28,384 | | 1,172,907 | |
| | | | |
INFORMATION TECHNOLOGY — 3.7% | | | | |
| Keyence Corporation | 3,665 | | 1,697,313 | |
TOTAL JAPAN | | | 2,870,220 | |
| | | | | |
SWEDEN — 1.2% | | | | |
INDUSTRIAL — 1.2% | | | | |
| NIBE Industrier AB | 108,684 | | 534,242 | |
| | | | | |
SWITZERLAND — 6.1% | | | | |
INFORMATION TECHNOLOGY — 6.1% | | | | |
| Landis+Gyr Group AG | 24,497 | | 1,883,443 | |
| u-blox | 9,447 | | 910,403 | |
| | | 2,793,846 | |
| | | | |
The accompanying notes are an integral part of these financial statements.
37
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
UNITED STATES — 67.6% | | | | |
CONSUMER DISCRETIONARY — 0.8% | | | | |
| Rivian Automotive, Inc. | 35,033 | | $383,611 | |
| | | | | |
FINANCIALS — 2.6% | | | | |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 42,015 | | 1,193,226 | |
| | | | | |
INDUSTRIALS — 38.5% | | | | |
| American Superconductor Corporation (a) | 102,530 | | 1,385,180 | |
| Array Technologies, Inc. (a) | 61,867 | | 922,437 | |
| Energy Recovery, Inc. (a) | 86,737 | | 1,369,577 | |
| Enovix Corporation (a) | 59,833 | | 479,262 | |
| Generac Holdings Inc. (a) | 8,833 | | 1,114,195 | |
| Hubbell Incorporated | 4,766 | | 1,978,128 | |
| Mueller Water Products, Inc. | 117,532 | | 1,891,090 | |
| MYR Group Inc. | 5,645 | | 997,754 | |
| Primoris Services Corporation | 48,416 | | 2,061,069 | |
| Symbotic Inc. (a) | 13,687 | | 615,915 | |
| Valmont Industries, Inc. | 7,914 | | 1,806,608 | |
| Xylem Inc. | 9,279 | | 1,199,218 | |
| Zurn Elkay Water Solutions | 50,617 | | 1,694,151 | |
| | | | 17,514,584 | |
INFORMATION TECHNOLOGY — 11.2% | | | | |
| Badger Meter, Inc. | 12,286 | | 1,987,998 | |
| Cognex Corporation | 28,071 | | 1,190,772 | |
| Trimble Navigation Limited (a) | 21,415 | | 1,378,269 | |
| Wolfspeed, Inc. (a) | 17,452 | | 514,834 | |
| | | | 5,071,873 | |
MATERIALS — 8.2% | | | | |
| Albemarle Corporation | 8,919 | | 1,174,989 | |
| Aspen Aerogels, Inc. (a) | 84,848 | | 1,493,325 | |
| MP Materials Corp. (a) | 72,349 | | 1,034,591 | |
| | | | 3,702,905 | |
UTILITIES — 6.3% | | | | |
| NextEra Energy, Inc. | 44,472 | | 2,842,206 | |
TOTAL UNITED STATES | | | 30,708,405 | |
TOTAL COMMON STOCK | | | | |
| (Cost $44,442,739) | | | 44,826,795 | |
The accompanying notes are an integral part of these financial statements.
38
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
Short Term Investments—1.3% | | | | |
| Par Value | | Value | |
Money Market — 1.3% | | | | |
| UMB Money Market Special II, 5.25% (b) | | | | |
| (Cost $ 606,239) | $606,239 | | $606,239 | |
TOTAL INVESTMENTS — 99.9% | | | | |
| (Cost $45,048,978) | | | 45,433,034 | |
OTHER ASSETS & LIABILITIES (Net) — 0.1% | | | 28,094 | |
NET ASSETS — 100% | | | $45,461,128 | |
(a)Non-income producing security.
(b)Interest rate reflects seven-day effective yield on March 31, 2024.
(c)At March 31, 2024, the unrealized depreciation of investments based on aggregate cost for federal tax purposes of $45,561,451 was as follows:
| | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $6,253,038 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (6,381,455 | ) |
Net unrealized appreciation/(depreciation) | $(128,417 | ) |
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
39
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—98.3%
| | | | | |
| | Shares | | Value | |
BELGIUM – 1.4% | | | | |
| D’leteren S.A. | 193,853 | | $43,045,876 | |
| | | | | |
CANADA – 12.2% | | | | |
| Canadian Tire Corporation | 558,217 | | 55,726,828 | |
| Lundin Mining Corporation | 8,026,600 | | 82,205,480 | |
| Magna International Inc. | 1,104,887 | | 60,245,039 | |
| Methanex Corporation | 1,352,793 | | 60,347,383 | |
| Open Text Corporation | 1,496,200 | | 58,110,007 | |
| Toronto-Dominion Bank | 1,006,779 | | 60,817,397 | |
| | | | 377,452,134 | |
CHILE – 1.2% | | | | |
| Antofagasta plc | 1,503,500 | | 38,727,091 | |
| | | | | |
CHINA -0.8% | | | | |
| Weichai Power Company Limited | 13,673,000 | | 26,065,439 | |
| | | | | |
COLOMBIA – 0.3% | | | | |
| Tecnoglass, Inc. | 154,800 | | 8,054,244 | |
| | | | | |
FRANCE – 11.6% | | | | |
| Ipsos | 597,880 | | 42,198,356 | |
| Michelin (CGDE) | 1,812,600 | | 69,536,183 | |
| Publicis Groupe | 675,547 | | 73,727,211 | |
| Teleperformance SE | 467,700 | | 45,502,123 | |
| TotalEnergies SE | 980,500 | | 67,212,804 | |
| Vinci SA | 478,098 | | 61,322,949 | |
| | | | 359,499,626 | |
GERMANY – 9.2% | | | | |
| Daimler Truck Holding AG | 1,664,400 | | 84,415,406 | |
| Deutsche Telekom AG | 2,395,518 | | 58,212,717 | |
| flatexDegiro AG | 988,400 | | 11,096,682 | |
| Hannover Rueck SE | 238,800 | | 65,432,077 | |
| Muenchener Rueckversicherungs-Gesellschaft | 137,330 | | 67,085,386 | |
| | | | 286,242,268 | |
The accompanying notes are an integral part of these financial statements.
40
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
IRELAND – 5.3% | | | | |
| Greencore Group plc (a) | 19,767,301 | | $29,790,791 | |
| Jazz Pharmaceuticals plc (a) | 512,200 | | 61,679,124 | |
| Smurfit Kappa | 1,620,046 | | 73,959,763 | |
| | | | 165,429,678 | |
ITALY – 2.3% | | | | |
| Eni S.p.A. | 3,832,100 | | 60,624,906 | |
| Trevi Finanziaria Industriale SpA (a) | 25,608,324 | | 10,067,426 | |
| | | | 70,692,332 | |
JAPAN – 12.5% | | | | |
| Daicel Corporation | 3,273,400 | | 32,215,992 | |
| Daito Trust Construction Company, Ltd. | 538,100 | | 61,224,897 | |
| Itochu Corporation | 1,429,300 | | 61,045,923 | |
| KDDI Corporation | 1,870,200 | | 55,211,957 | |
| Marubeni Corporation | 3,609,100 | | 62,252,176 | |
| Sony Group Corporation | 685,200 | | 58,539,337 | |
| Takeda Pharmaceutical Company Limited | 2,095,900 | | 58,205,211 | |
| | | | 388,695,493 | |
NETHERLANDS -2.0% | | | | |
| Koninklijke Ahold Delhaize N.V. | 2,126,400 | | 63,661,095 | |
| | | | | |
NORWAY – 6.1% | | | | |
| DNB Bank ASA | 3,135,030 | | 62,159,629 | |
| SpareBank 1 SR-Bank ASA | 4,099,187 | | 51,388,145 | |
| Sparebanken Vest | 1,737,975 | | 18,647,594 | |
| Yara International ASA | 1,812,400 | | 57,285,913 | |
| | | | 189,481,281 | |
PUERTO RICO – 2.1% | | | | |
| Popular, Inc. | 727,150 | | 64,054,643 | |
| | | | | |
RUSSIA – 0.0% | | | | |
| ALROSA Company PJSC * (a) | 41,136,300 | | 4,444 | |
| | | | | |
SINGAPORE – 2.0% | | | | |
| United Overseas Bank Limited | 2,849,947 | | 61,893,855 | |
The accompanying notes are an integral part of these financial statements.
41
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
SOUTH KOREA – 13.0% | | | | |
| F&F Co., Ltd. | 275,500 | | $14,672,869 | |
| Kia Motors Corporation | 770,600 | | 64,109,341 | |
| LG Electronics, Inc. | 852,100 | | 61,268,917 | |
| LG Uplus Corporation | 5,440,458 | | 40,614,004 | |
| Samsung Electronics Company Limited | 1,178,123 | | 70,709,258 | |
| Shinhan Financial Group Co., Limited | 2,015,600 | | 70,667,647 | |
| SK Hynix, Inc. | 611,700 | | 80,969,315 | |
| | | | 403,011,351 | |
SWEDEN – 3.6% | | | | |
| Duni AB | 1,566,400 | | 16,202,218 | |
| Loomis AB, Class B | 1,195,583 | | 33,410,041 | |
| SKF AB-B | 2,991,300 | | 61,126,298 | |
| | | | 110,738,557 | |
SWITZERLAND – 2.0% | | | | |
| Novartis AG | 585,750 | | 56,819,116 | |
| Sandoz Group AG | 132,470 | | 4,001,897 | |
| | | | 60,821,013 | |
THAILAND – 0.6% | | | | |
| TISCO Financial Group | 6,414,700 | | 17,448,687 | |
| | | | | |
UNITED KINGDOM – 10.1% | | | | |
| Bellway plc | 1,661,285 | | 55,907,823 | |
| Inchcape plc | 4,428,040 | | 40,499,002 | |
| Linde plc | 163,344 | | 75,843,886 | |
| Mondi plc | 3,063,153 | | 54,015,201 | |
| Next plc | 552,650 | | 64,452,562 | |
| Nomad Foods Limited (a) | 1,164,500 | | 22,777,620 | |
| | | | 313,496,094 | |
TOTAL COMMON STOCK | | | | |
| (Cost $ 2,510,818,808) | | | 3,048,515,201 | |
| | | | | |
The accompanying notes are an integral part of these financial statements.
42
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
Warrants—0.0% | | | | |
ITALY – 0.0% | | | | |
| Trevi Finanziaria Industriale SpA (a) | 76,022 | | $135,475 | |
| (Cost $ 7,585,702) | | | | |
| | | | | |
Short Term Investments—0.6% | | | | |
| | Par Value | | Value | |
Money Market – 0.6% | | | | |
| UMB Money Market Special II, 5.25% (b) | | | | |
| (Cost $ 19,413,405) | $19,413,405 | | $19,413,405 | |
TOTAL INVESTMENTS – 98.9% | | | | |
| (Cost $ 2,537,817,915) | | | 3,068,064,081 | |
OTHER ASSETS & LIABILITIES (NET) – 1.1% | | | 32,852,305 | |
NET ASSETS – 100% | | | $3,100,916,386 | |
*Fair Valued by Valuation Committee as delegated by Pear Tree Fund’s Trustees
(a)Non income producing security.
(b)Interest rate reflects seven-day effective yield on March 31, 2024.
(c)At March 31, 2024, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $2,550,848,078 was as follows :
| | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $797,132,050 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (279,916,047 | ) |
Net unrealized appreciation/(depreciation) | $517,216,003 | |
The accompanying notes are an integral part of these financial statements.
43
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
44
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—97.2%
| | | | | |
| | Shares | | Value | |
BELGIUM – 2.9% | | | | |
| D’leteren SA | 131,655 | | $29,234,548 | |
| | | | | |
BRAZIL – 2.1% | | | | |
| Equatorial Energia S.A. | 3,332,971 | | 21,673,367 | |
| | | | | |
CANADA – 4.2% | | | | |
| EQB Inc. | 371,361 | | 23,311,252 | |
| goeasy Ltd. | 169,797 | | 19,998,481 | |
| | | | 43,309,733 | |
CHINA – 1.1% | | | | |
| China MeiDong Auto Holdings Limited | 13,000,000 | | 5,016,291 | |
| Xinhua Winshare Publishing and Media Co., Limited | 6,160,500 | | 6,446,623 | |
| | | | 11,462,914 | |
COLOMBIA – 2.3% | | | | |
| Tecnoglass, Inc. | 444,564 | | 23,130,665 | |
| | | | | |
DENMARK – 2.9% | | | | |
| DFDS A/S | 374,399 | | 10,863,615 | |
| Ringkjoebing Landbobank A/S | 106,200 | | 18,590,574 | |
| | | | 29,454,189 | |
FRANCE – 10.0% | | | | |
| Amundi | 332,600 | | 22,864,229 | |
| Elis S.A. | 1,187,198 | | 27,003,337 | |
| Rubis | 826,400 | | 29,221,661 | |
| Technip Energies N.V. | 931,600 | | 23,554,116 | |
| | | | 102,643,343 | |
GERMANY – 2.1% | | | | |
| flatexDEGIRO AG | 490,400 | | 5,505,679 | |
| Krones AG | 51,780 | | 6,861,871 | |
| Sixt SE | 93,525 | | 9,338,359 | |
| | | | 21,705,909 | |
The accompanying notes are an integral part of these financial statements.
45
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
HONG KONG – 1.1% | | | | |
| Kingboard Laminates Holdings, Ltd. | 7,003,000 | | $ 5,180,779 | |
| Samson Holding Limited | 74,790,800 | | 1,376,078 | |
| VSTECS Holdings Limited | 8,587,360 | | 4,597,335 | |
| | | | 11,154,192 | |
INDONESIA – 0.8% | | | | |
| PT. Pakuwon Jati Tbk | 317,709,100 | | 8,496,289 | |
| | | | | |
IRELAND – 3.0% | | | | |
| Glanbia plc | 1,296,500 | | 25,596,738 | |
| Greencore Group plc (a) | 3,466,100 | | 5,223,670 | |
| | | | 30,820,408 | |
ITALY – 2.9% | | | | |
| De’Longhi SpA | 861,436 | | 29,827,884 | |
| | | | | |
JAPAN – 11.3% | | | | |
| Daicel Corporation | 2,587,100 | | 25,461,597 | |
| Dowa Holdings Co., Limited | 500,800 | | 17,213,397 | |
| Kanematsu Corporation | 892,800 | | 15,190,195 | |
| Kyudenko Corporation | 326,700 | | 13,515,271 | |
| Mizuho Leasing Company, Limited | 1,352,000 | | 9,942,687 | |
| Open House Group Co., Limited | 575,100 | | 18,555,045 | |
| Sankyu Inc. | 464,000 | | 15,923,988 | |
| | | | 115,802,180 | |
JORDAN – 2.0% | | | | |
| Hikma Pharmaceuticals plc | 835,900 | | 20,258,643 | |
| | | | | |
NETHERLANDS – 5.1% | | | | |
| Aalberts N.V. | 589,700 | | 28,399,096 | |
| Signify N.V. | 778,400 | | 24,027,079 | |
| | | | 52,426,175 | |
The accompanying notes are an integral part of these financial statements.
46
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
NORWAY – 4.1% | | | | |
| SpareBank Nord-Norge | 735,389 | | $ 6,480,393 | |
| Sparebank 1 Oestlandet | 427,188 | | 4,898,530 | |
| SpareBank 1 SMN | 961,828 | | 12,217,235 | |
| SpareBank 1 SR-Bank ASA | 931,626 | | 11,679,031 | |
| Sparebanken Vest | 614,092 | | 6,588,897 | |
| | | | 41,864,086 | |
PORTUGAL – 1.1% | | | | |
| Redes Energéticas Nacionais, SGPS, S.A. | 4,848,005 | | 11,519,182 | |
| | | | | |
SINGAPORE – 2.8% | | | | |
| AEM Holdings Limited | 7,160,200 | | 11,618,878 | |
| Venture Corporation, Limited | 1,567,200 | | 16,570,794 | |
| | | | 28,189,672 | |
SOUTH KOREA – 6.0% | | | | |
| Doosan Bobcat | 568,700 | | 22,811,365 | |
| ENF Technology Co., Limited | 692,686 | | 13,326,327 | |
| Fila Holding Corporation | 221,700 | | 6,315,465 | |
| Nature Holdings Co., Limited (The) | 436,302 | | 4,854,822 | |
| Orion Corporation | 203,800 | | 13,897,003 | |
| | | | 61,204,982 | |
SPAIN – 0.6% | | | | |
| CIE Automotive | 206,600 | | 5,935,371 | |
| | | | | |
SWEDEN – 5.1% | | | | |
| Duni AB | 485,645 | | 5,023,319 | |
| Hexpol AB | 2,231,100 | | 27,250,777 | |
| Loomis AB, Class B | 706,161 | | 19,733,358 | |
| | | | 52,007,454 | |
TAIWAN – 2.1% | | | | |
| BizLink Holding, Inc. | 1,059,293 | | 8,506,517 | |
| Primax Electronics Limited | 4,856,800 | | 13,020,871 | |
| | | | 21,527,388 | |
The accompanying notes are an integral part of these financial statements.
47
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
THAILAND – 4.4% | | | | |
| Thanachart Capital PCL | 16,775,000 | | $ 23,676,944 | |
| TISCO Financial Group | 7,836,500 | | 21,316,139 | |
| | | | 44,993,083 | |
UNITED KINGDOM – 17.2% | | | | |
| Berkeley Group Holdings plc | 205,300 | | 12,339,785 | |
| Coats Group plc | 5,811,700 | | 5,954,129 | |
| Computacenter plc | 503,000 | | 17,130,975 | |
| Crest Nicholson Holdings plc | 2,611,400 | | 6,373,452 | |
| Future plc | 1,333,000 | | 10,322,499 | |
| Inchcape plc | 2,462,168 | | 22,519,071 | |
| Keller Group plc | 457,639 | | 6,058,687 | |
| Lancashire Holdings Limited | 2,315,487 | | 18,106,196 | |
| OSB Group plc | 3,172,817 | | 15,126,594 | |
| QinetiQ | 3,856,400 | | 17,791,274 | |
| Redrow plc | 1,585,300 | | 13,327,655 | |
| Vistry Group plc | 1,957,425 | | 30,414,764 | |
| | | | 175,465,081 | |
TOTAL COMMON STOCK | | | | |
| (Cost $ 887,224,730) | | | 994,106,738 | |
| | | | | |
Short Term Investments—2.0% | | | | |
| | Par Value | | Value | |
Money Market – 2.0 % | | | | |
| UMB Money Market Special II, 5.25% (b) | | | | |
| (Cost $ 20,802,675) | $20,802,675 | | $20,802,675 | |
TOTAL INVESTMENTS – 99.2% | | | | |
| (Cost $ 908,027,405) | | | 1,014,909,413 | |
OTHER ASSETS & LIABILITIES (NET) – 0.8% | | | 8,234,381 | |
NET ASSETS – 100% | | | $1,023,143,794 | |
| | | | | |
The accompanying notes are an integral part of these financial statements.
48
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
(a)Non-income producing security
(b)Interest rate reflects seven-day effective yield on March 31, 2024.
(c)At March 31, 2024, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $915,018,370 was as follows :
| | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $196,212,118 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (96,321,075 | ) |
Net unrealized appreciation/(depreciation) | $99,891,043 | |
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
49
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2024
Common Stock—99.2%
| | | | | |
| | Shares | | Value | |
AUSTRALIA – 5.9% | | | | |
| Accent Group Limited | 1,231,400 | | $1,630,834 | |
| Collins Foods Limited | 210,524 | | 1,392,689 | |
| HANSEN Technologies | 223,662 | | 710,617 | |
| Macquarie Group Limited | 10,484 | | 1,365,902 | |
| | | | 5,100,042 | |
BELGIUM – 2.5% | | | | |
| D’Ieteren S.A. | 9,800 | | 2,176,131 | |
| | | | | |
BRAZIL – 1.4% | | | | |
| Equatorial Energia S.A. | 192,588 | | 1,252,345 | |
| | | | | |
CANADA – 9.5% | | | | |
| Alimentation Couche-Tard Inc. | 31,100 | | 1,776,650 | |
| Canadian Tire Corporation | 11,534 | | 1,151,440 | |
| Enghouse Systems Limited | 29,100 | | 656,486 | |
| EQB Inc. | 25,748 | | 1,616,266 | |
| goeasy Ltd. | 14,585 | | 1,717,803 | |
| Toronto-Dominion Bank | 22,650 | | 1,368,239 | |
| | | | 8,286,884 | |
CHINA – 7.3% | | | | |
| Alibaba Group Holding Ltd. | 125,200 | | 1,123,784 | |
| China MeiDong Auto Holdings Limited | 2,000,000 | | 771,737 | |
| Midea Group Co., Ltd. | 228,700 | | 2,043,507 | |
| Zhejiang Supor Co. | 227,900 | | 1,803,650 | |
| Zhongsheng Group Holdings | 364,500 | | 631,524 | |
| | | | 6,374,202 | |
| | | | | |
DENMARK – 0.8% | | | | |
| DFDS A/S | 25,200 | | 731,207 | |
| | | | | |
FINLAND – 1.0% | | | | |
| Valmet OYJ | 31,800 | | 837,674 | |
| | | | | |
The accompanying notes are an integral part of these financial statements.
50
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
FRANCE – 6.7% | | | | |
| Alten S.A. | 8,400 | | $ 1,226,569 | |
| LVMH Moet Hennessy Louis Vuitton SE | 995 | | 895,919 | |
| Neurones S.A. | 43,855 | | 2,169,304 | |
| SEB SA | 12,000 | | 1,537,099 | |
| | | | 5,828,891 | |
GERMANY – 0.8% | | | | |
| Sixt SE | 7,100 | | 708,926 | |
| | | | | |
HONG KONG – 0.8% | | | | |
| Kingboard Laminates Holdings, Ltd. | 991,000 | | 733,136 | |
| | | | | |
INDIA – 1.1% | | | | |
| Muthoot Finance Ltd. | 54,294 | | 963,755 | |
| | | | | |
INDONESIA – 1.0% | | | | |
| PT Bank Rakyat Indonesia Tbk | 2,334,146 | | 890,671 | |
| | | | | |
ITALY – 7.6% | | | | |
| De’Longhi S.p.A. | 26,700 | | 924,508 | |
| Interpump Group S.p.A. | 19,300 | | 941,967 | |
| Reply S.p.A. | 13,218 | | 1,872,990 | |
| SeSa S.p.A. | 6,993 | | 774,147 | |
| SOL S.p.A. | 58,400 | | 2,090,895 | |
| | | | 6,604,507 | |
JAPAN – 7.0% | | | | |
| FULLCAST HOLDINGS Co., Ltd. | 85,200 | | 812,340 | |
| JAC Recruitment Co., Ltd. | 174,900 | | 909,487 | |
| NEXTAGE Co., Ltd. | 90,600 | | 1,716,877 | |
| Open Up Group Inc. | 66,400 | | 899,402 | |
| Sony Group Corporation | 15,100 | | 1,290,053 | |
| Tri Chemical Laboratories Inc. | 13,700 | | 446,272 | |
| | | | 6,074,431 | |
The accompanying notes are an integral part of these financial statements.
51
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
MALAYSIA – 1.5% | | | | |
| Public Bank Bhd | 926,900 | | $ 824,477 | |
| Scientex Berhad | 575,000 | | 501,743 | |
| | | | 1,326,220 | |
NETHERLANDS – 1.1% | | | | |
| Aalberts N.V. | 19,100 | | 919,828 | |
| | | | | |
NORWAY – 4.5% | | | | |
| SpareBank Nord-Norge | 207,100 | | 1,825,006 | |
| Sparebanken Vest | 193,682 | | 2,078,110 | |
| | | | 3,903,116 | |
PERU – 0.7% | | | | |
| Credicorp Ltd. | 3,800 | | 643,834 | |
| | | | | |
SINGAPORE – 1.6% | | | | |
| United Overseas Bank Limited | 64,500 | | 1,400,782 | |
| | | | | |
SOUTH AFRICA – 2.7% | | | | |
| AVI Limited | 323,674 | | 1,561,426 | |
| FirstRand Limited | 257,100 | | 838,114 | |
| | | | 2,399,540 | |
SOUTH KOREA – 2.6% | | | | |
| Hansol Chemical Co., Ltd. | 5,717 | | 851,446 | |
| Samsung Electronics Company Limited | 23,932 | | 1,436,364 | |
| | | | 2,287,810 | |
SPAIN – 1.0% | | | | |
| CIE Automotive | 30,545 | | 877,522 | |
| | | | | |
SWEDEN – 3.9% | | | | |
| Bravida Holding AB | 202,200 | | 1,775,675 | |
| Hexpol AB | 75,300 | | 919,718 | |
| Knowit AB | 45,658 | | 674,669 | |
| | | | 3,370,062 | |
The accompanying notes are an integral part of these financial statements.
52
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | Shares | | Value | |
SWITZERLAND – 1.9% | | | | |
| ALSO Holding AG | 6,300 | | $ 1,636,727 | |
| | | | | |
TAIWAN – 6.9% | | | | |
| BizLink Holding, Inc. | 103,290 | | 829,457 | |
| Chailease Holding Co., Ltd. | 226,889 | | 1,215,850 | |
| POYA International Co., Ltd. | 55,129 | | 856,990 | |
| SINBON Electronics Co., Ltd. | 150,300 | | 1,314,981 | |
| Thinking Electronic Industrial Co., Ltd. | 156,000 | | 809,162 | |
| Yageo Corporation | 51,510 | | 956,050 | |
| | | | 5,982,490 | |
THAILAND – 3.8% | | | | |
| Krungthai Card Public Company Limited | 545,100 | | 683,476 | |
| Muangthai Capital Public Company Limited | 1,064,000 | | 1,355,971 | |
| TISCO Financial Group | 477,800 | | 1,299,668 | |
| | | | 3,339,115 | |
UNITED KINGDOM – 12.8% | | | | |
| Computacenter plc | 53,700 | | 1,828,893 | |
| Cranswick plc | 39,440 | | 2,040,756 | |
| Games Workshop Group plc | 6,680 | | 847,236 | |
| Genuit Group plc | 86,900 | | 484,120 | |
| Howden Joinery Group plc | 79,688 | | 912,848 | |
| Marshalls plc | 184,500 | | 640,483 | |
| Mondi plc | 78,492 | | 1,384,117 | |
| OSB Group plc | 121,500 | | 579,258 | |
| Oxford Instruments plc | 25,000 | | 671,109 | |
| Pets at Home Group plc | 180,000 | | 610,308 | |
| RS Group plc | 54,164 | | 497,302 | |
| SSP Group plc | 230,900 | | 639,379 | |
| | | | 11,135,809 | |
UNITED STATES – 0.8% | | | | |
| Euronet Worldwide, Inc. (a) | 6,500 | | 714,545 | |
TOTAL COMMON STOCK | | | | |
| (Cost $ 75,349,951) | | | 86,500,202 | |
The accompanying notes are an integral part of these financial statements.
53
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2024
| | | | | |
| | | | Value | |
TOTAL INVESTMENTS – 99.2% | | | | |
| (Cost $ 75,349,951) | | | $86,500,202 | |
OTHER ASSETS & LIABILITIES (Net) – 0.8% | | | 701,106 | |
NET ASSETS – 100% | | | $87,201,308 | |
(a)Non-income producing security.
(b)At March 31, 2024, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $75,918,836 was as follows :
| | |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $12,743,961 | |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (2,162,595 | ) |
Net unrealized appreciation/(depreciation) | $10,581,366 | |
The percentage of each investment category is calculated as a percentage of net assets.
SECTOR ALLOCATIONS (as a percentage of Total Net Assets)
The accompanying notes are an integral part of these financial statements.
55
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2024
| | | | | | |
| Small Cap | Quality | Environmental Opportunities |
| | | | | | |
Assets: | | | | | | |
Investments at value | $87,302,428 | | $324,141,357 | | $45,433,034 | |
Foreign currency at value (Cost $0 for Small Cap, $ 0 for Quality and $ 0 for Environmental Opportunities.) | — | | — | | — | |
Cash | — | | — | | — | |
Dividends and interest receivable | 102,508 | | 470,547 | | 21,702 | |
Foreign tax reclaims receivable | 577 | | 89,727 | | 43,876 | |
Receivable for investments sold | 1,210,337 | | — | | — | |
Receivable for shares of beneficial interest sold | — | | 70,228 | | 3,375 | |
Total Assets | $88,615,850 | | $324,771,859 | | $45,501,987 | |
Liabilities: | | | | | | |
Payable for investments purchased | $— | | $— | | $— | |
Payable for shares of beneficial interest repurchased | 396,700 | | 1,109,399 | | — | |
Payable for compensation of manager (Note 3) | 55,707 | | 158,360 | | 20,428 | |
Payable for distribution fees (Note 3) | 15,074 | | 38,404 | | 2,278 | |
Payable to custodian | 1,473 | | 6,324 | | 4,068 | |
Payable to transfer agent (Note 3) | 10,444 | | 31,741 | | 3,203 | |
Payable for foreign capital gain tax | — | | — | | — | |
Other accrued expenses and liabilities | 4,665 | | 30,390 | | 10,882 | |
Total Liabilities | $484,063 | | $1,374,618 | | $40,859 | |
Net Assets | $88,131,787 | | $323,397,241 | | $45,461,128 | |
| | | | | | |
Investments at cost | $55,974,673 | | $248,320,742 | | $45,048,978 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
57
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
| | | | | | |
| Small Cap | Quality | Environmental Opportunities |
Components of Net Assets: | | | | | | |
Shares of beneficial interest | $56,695,427 | | $237,355,319 | | $59,383,562 | |
Total distributable earnings (loss) | 31,436,360 | | 86,041,922 | | (13,922,434 | ) |
Net Assets Applicable to Outstanding Shares | $88,131,787 | | $323,397,241 | | $45,461,128 | |
Computation of Net Assets: | | | | | | |
Ordinary Shares | | | | | | |
Net assets applicable to outstanding shares | $73,717,576 | | $182,281,891 | | $10,903,615 | |
Shares Outstanding | 2,684,623 | | 7,983,367 | | 857,031 | |
Net asset value and redemption proceeds per share | $27.46 | | $22.83 | | $12.72 | |
Institutional Shares | | | | | | |
Net assets applicable to outstanding shares | $14,414,211 | | $141,115,350 | | $31,623,283 | |
Shares Outstanding | 416,180 | | 5,412,933 | | 2,444,546 | |
Net asset value and redemption proceeds per share | $34.63 | | $26.07 | | $12.94 | |
R6 Shares | | | | | | |
Net assets applicable to outstanding shares | $— | | $— | | $2,934,230 | |
Shares Outstanding | — | | — | | 495,918 | |
Net asset value and redemption proceeds per share | $— | | $— | | $5.92 | |
The accompanying notes are an integral part of these financial statements.
59
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
| | | | | | |
| Foreign Value | Foreign Value Small Cap | International Opportunities |
| | | | | | |
Assets: | | | | | | |
Investments at value | $3,068,064,081 | | $1,014,909,413 | | $86,500,202 | |
Foreign currency at value ($0 for Foreign Value, $85,563 for Foreign Value Small Cap and $77,111 for International Opportunities.) | — | | 85,585 | | 77,170 | |
Cash | — | | — | | — | |
Dividends and interest receivable | 16,068,548 | | 7,258,881 | | 318,646 | |
Foreign tax reclaims receivable | 16,656,867 | | 2,703,909 | | 59,522 | |
Receivable for investments sold | 3,552,027 | | — | | 612,699 | |
Receivable for shares of beneficial interest sold | 1,037,508 | | 710,542 | | 120 | |
Total Assets | $3,105,379,031 | | $1,025,668,330 | | $87,568,359 | |
| | | | | | |
Liabilities: | | | | | | |
Payable for investments purchased | $— | | $606,334 | | $1,988 | |
Payable for shares of beneficial interest repurchased | 1,492,601 | | 971,074 | | 152,210 | |
Payable for compensation of manager (Note 3) | 2,335,547 | | 754,734 | | 51,653 | |
Payable for distribution fees (Note 3) | 69,258 | | 26,135 | | 11,734 | |
Payable to custodian | 153,745 | | 39,696 | | 108,882 | |
Payable to transfer agent (Note 3) | 154,097 | | 49,147 | | 9,035 | |
Payable for foreign capital gain tax | — | | — | | 20,778 | |
Other accrued expenses and liabilities | 257,397 | | 77,416 | | 10,771 | |
Total Liabilities | $4,462,645 | | $2,524,536 | | $367,051 | |
Net Assets | $3,100,916,386 | | $1,023,143,794 | | $87,201,308 | |
| | | | | | |
Investments at cost | $2,537,817,915 | | $908,027,405 | | $75,349,951 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
61
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2024
| | | | | | |
| Foreign Value | Foreign Value Small Cap | International Opportunities |
Components of Net Assets: | | | | | | |
Shares of beneficial interest | $2,772,059,390 | | $997,248,523 | | $118,012,521 | |
Total distributable earnings (loss) | 328,856,996 | | 25,895,271 | | (30,811,213 | ) |
Net Assets Applicable to Outstanding Shares | $3,100,916,386 | | $1,023,143,794 | | $87,201,308 | |
Computation of Net Assets: | | | | | | |
Ordinary Shares | | | | | | |
Net assets applicable to outstanding shares | $328,464,042 | | $124,102,044 | | $54,437,948 | |
Shares Outstanding | 13,764,525 | | 7,773,359 | | 4,545,088 | |
Net asset value and redemption proceeds per share | $23.86 | | $15.97 | | $11.98 | |
Institutional Shares | | | | | | |
Net assets applicable to outstanding shares | $2,312,374,422 | | $634,475,798 | | $6,843,393 | |
Shares Outstanding | 97,328,453 | | 39,752,876 | | 564,279 | |
Net asset value and redemption proceeds per share | $23.76 | | $15.96 | | $12.13 | |
R6 Shares | | | | | | |
Net assets applicable to outstanding shares | $460,077,922 | | $264,565,952 | | $25,919,967 | |
Shares Outstanding | 39,933,044 | | 23,320,438 | | 2,135,535 | |
Net asset value and redemption proceeds per share | $11.52 | | $11.34 | | $12.14 | |
The accompanying notes are an integral part of these financial statements.
63
STATEMENT OF OPERATIONS
For the Year Ended March 31, 2024
| | | | | | |
| Small Cap | Quality | Environmental Opportunities |
Investment Income: | | | | | | |
Dividends(a) | $1,820,104 | | $3,643,407 | | $416,645 | |
Interest | 62,509 | | 184,425 | | 181,230 | |
Total Investment Income | $1,882,613 | | $3,827,832 | | $597,875 | |
Expenses: | | | | | | |
Compensation of manager (Note 3) | 634,758 | | 2,479,393 | | 579,350 | |
Distribution fees, Ordinary Shares (Note 3) | 168,155 | | 362,208 | | 25,661 | |
Administrative fees (Note 3) | 23,350 | | 69,418 | | 19,735 | |
Custodian and fund accounting fees | 17,401 | | 41,000 | | 34,397 | |
Regulatory and Compliance (Note 3) | 4,854 | | 14,477 | | 4,094 | |
Transfer agent fees (Note 3): | | | | | | |
Ordinary Shares | 108,310 | | 234,041 | | 16,481 | |
Institutional Shares | 19,442 | | 166,328 | | 83,587 | |
R6 Shares | — | | — | | 217 | |
Audit and legal | 9,374 | | 32,622 | | 12,752 | |
Registration fees | 37,998 | | 53,797 | | 39,980 | |
Insurance | 15,156 | | 11,579 | | 1,010 | |
Compensation of trustees (Note 3) | 3,034 | | 9,022 | | 2,565 | |
Printing | 5,509 | | 16,309 | | 4,671 | |
Miscellaneous | 4,422 | | 13,306 | | 3,853 | |
Total expenses before waivers/reimbursements/reductions | 1,051,763 | | 3,503,500 | | 828,353 | |
Management Fee Waiver (Note 3) | — | | (927,623 | ) | — | |
Transfer Agent Fee Waiver Institutional Shares (Note 3) | (14,499 | ) | (123,565 | ) | (62,441 | ) |
Manager Reimbursement/Reduction (Note 3) | — | | (3,319 | ) | (103,170 | ) |
Expenses, Net | $1,037,264 | | $2,448,993 | | $662,742 | |
Net Investment income/(loss) | $845,349 | | $1,378,839 | | $(64,867 | ) |
| | | | | | |
STATEMENT OF OPERATIONS (continued)
The accompanying notes are an integral part of these financial statements.
65
STATEMENT OF OPERATIONS (continued)
For the Year Ended March 31, 2024
STATEMENT OF OPERATIONS (continued)
| | | | | | |
| Small Cap | Quality | Environmental Opportunities |
Realized and unrealized gain/(loss) on investments, foreign currency, and foreign translation: | | | | | | |
Net realized gain/(loss) (Note 2) on: | | | | | | |
Investments(b) | $695,731 | | $15,747,593 | | $(8,977,189 | ) |
Realized gain distribution from regulated investment company | — | | — | | — | |
Foreign denominated assets, liabilities, and currency | 369 | | (5 | ) | 329 | |
Change in unrealized appreciation/(depreciation) of: | | | | | | |
Investments | 14,164,174 | | 52,735,269 | | 2,178,746 | |
Foreign denominated assets, liabilities, and currency | (73 | ) | 200 | | (1,329 | ) |
Net change in deferred non-U.S. taxes | — | | — | | — | |
Net realized and unrealized gain/(loss) on investment and foreign currency | 14,860,201 | | 68,483,057 | | (6,799,443 | ) |
Net increase/(decrease) in net assets resulting from operations | $15,705,550 | | $69,861,896 | | $(6,864,310 | ) |
(a)Dividends are net of foreign withholding taxes of $11,145 for Small Cap, $104,016 for Quality and $13,064 for Environmental Opportunities. Dividends are net of ADR Issuance Fees of $0 for Small Cap, $16,916 for Quality and $0 for Environmental Opportunities.
(b)Net realized gains on investments are net of foreign withholding taxes of $0 for Small Cap, $0 for Quality and $0 for Environmental Opportunities.
The accompanying notes are an integral part of these financial statements.
67
STATEMENT OF OPERATIONS (continued)
For the Year Ended March 31, 2024
| | | | | | |
| Foreign Value | Foreign Value Small Cap | International Opportunities |
Investment Income: | | | | | | |
Dividends(a) | $104,202,890 | | $32,951,092 | | $1,434,506 | |
Interest | 1,559,185 | | 1,080,006 | | 90,745 | |
Total Investment Income | $105,762,075 | | $34,031,098 | | $1,525,251 | |
Expenses: | | | | | | |
Compensation of manager (Note 3) | 30,563,427 | | 9,755,297 | | 477,916 | |
Distribution fees, Ordinary Shares (Note 3) | 828,803 | | 310,041 | | 58,311 | |
Administrative fees (Note 3) | 908,197 | | 287,972 | | 15,614 | |
Custodian and fund accounting fees | 809,549 | | 309,903 | | 47,500 | |
Regulatory and Compliance (Note 3) | 188,776 | | 59,849 | | 3,291 | |
Transfer agent fees (Note 3): | | | | | | |
Ordinary Shares | 531,958 | | 196,998 | | 37,866 | |
Institutional Shares | 3,634,041 | | 962,586 | | 8,179 | |
R6 Shares | 48,063 | | 21,711 | | 2,877 | |
Audit and legal | 447,381 | | 146,580 | | 61,087 | |
Registration fees | 99,141 | | 84,480 | | 53,058 | |
Tax reclaim service fee | 16,224 | | — | | — | |
Proxy Expense | — | | — | | 75,354 | |
Insurance | 72,006 | | 16,266 | | 8,472 | |
Compensation of trustees (Note 3) | 118,033 | | 37,418 | | 2,041 | |
Printing | 214,542 | | 68,014 | | 3,630 | |
Miscellaneous | 168,801 | | 53,844 | | 3,331 | |
Total expenses before waivers/reimbursements/reductions | 38,648,942 | | 12,310,959 | | 858,527 | |
Management Fee Waiver (Note 3) | (3,056,342 | ) | (975,529 | ) | (43,730 | ) |
Transfer Agent Fee Waiver Institutional Shares (Note 3) | (2,717,876 | ) | (727,374 | ) | (6,064 | ) |
Manager Reimbursement/Reduction (Note 3) | (312,510 | ) | — | | (39,788 | ) |
Expenses, Net | $32,562,214 | | $10,608,056 | | $768,945 | |
Net Investment income/(loss) | $73,199,861 | | $23,423,042 | | $756,306 | |
| | | | | | |
| | | | | | |
STATEMENT OF OPERATIONS (continued)
The accompanying notes are an integral part of these financial statements.
69
STATEMENT OF OPERATIONS (continued)
For the Year Ended March 31, 2024
STATEMENT OF OPERATIONS (continued)
| | | | | | |
| Foreign Value | Foreign Value Small Cap | International Opportunities |
Realized and unrealized gain/(loss) on investments, foreign currency, and foreign translation: | | | | | | |
Net realized gain/(loss) (Note 2) on: | | | | | | |
Investments(b) | $101,577,336 | | $6,920,918 | | $1,104,740 | |
Realized gain distribution from regulated investment company | — | | — | | — | |
Foreign denominated assets, liabilities, and currency | (1,208,635 | ) | (358,921 | ) | (103,567 | ) |
Change in unrealized appreciation/(depreciation) of: | | | | | | |
Investments | 255,261,558 | | 104,275,019 | | 8,376,568 | |
Foreign denominated assets, liabilities, and currency | (80,022 | ) | (66,144 | ) | (5,784 | ) |
Net change in deferred non-U.S. taxes | — | | — | | 20,778 | |
Net realized and unrealized gain/(loss) on investment and foreign currency | 355,550,237 | | 110,770,872 | | 9,392,735 | |
Net increase/(decrease) in net assets resulting from operations | $428,750,098 | | $134,193,914 | | $10,149,041 | |
(a)Dividends are net of foreign withholding taxes of $12,079,698 for Foreign Value, $3,497,557 for Foreign Value Small Cap and $208,596 for International Opportunities. Dividends are net of ADR Issuance Fees of $0 for Foreign Value, $0 for Foreign Value Small Cap and $0 for International Opportunities.
(b)Net realized gains on investments are net of foreign withholding taxes of $61,763 for Foreign Value, $69,701 for Foreign Value Small Cap and $4,193 for International Opportunities.
The accompanying notes are an integral part of these financial statements.
70
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | |
| | Small Cap |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $845,349 | | | $696,277 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | 696,100 | | | (592,046 | ) |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | | 14,164,101 | | | (2,953,492 | ) |
Net increase/(decrease) from operations | | $15,705,550 | | | $(2,849,261 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $(612,079 | ) | | $(6,464,206 | ) |
Institutional shares | | (121,643 | ) | | (664,111 | ) |
R6 Shares | | — | | | — | |
Total distributions to shareholders | | $(733,722 | ) | | $(7,128,317 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $2,667,850 | | | $2,248,227 | |
Institutional Shares | | 1,987,167 | | | 2,232,107 | |
R6 Shares | | — | | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 453,013 | | | 4,899,553 | |
Institutional Shares | | 121,338 | | | 661,740 | |
R6 Shares | | — | | | — | |
Shares redeemed | | | | | | |
Ordinary Shares | | (9,439,340 | ) | | (5,892,276 | ) |
Institutional Shares | | (809,373 | ) | | (207,242 | ) |
R6 Shares | | — | | | — | |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $(5,019,345 | ) | | $3,942,109 | |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $9,952,483 | | | $(6,035,469 | ) |
Net Assets Beginning of Year | | 78,179,304 | | | 84,214,773 | |
| | | | | | |
Net Assets End of Year | | $88,131,787 | | | $78,179,304 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
71
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Small Cap |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 109,350 | | | 90,943 | |
Institutional Shares | | 64,685 | | | 77,160 | |
R6 Shares | | — | | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 17,892 | | | 210,552 | |
Institutional Shares | | 3,804 | | | 22,631 | |
R6 Shares | | — | | | — | |
Shares redeemed | | | | | | |
Ordinary Shares | | (389,145 | ) | | (243,371 | ) |
Institutional Shares | | (27,394 | ) | | (6,813 | ) |
R6 Shares | | — | | | — | |
Increase (Decrease) in Shares Outstanding | | (220,808 | ) | | 151,102 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
72
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Quality |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $1,378,839 | | | $1,031,147 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | 15,747,588 | | | 11,458,516 | |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | | 52,735,469 | | | (15,546,245 | ) |
Net increase/(decrease) from operations | | $69,861,896 | | | $(3,056,582 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $(6,695,035 | ) | | $(14,603,353 | ) |
Institutional shares | | (4,696,152 | ) | | (7,561,699 | ) |
R6 Shares | | — | | | — | |
Total distributions to shareholders | | $(11,391,187 | ) | | $(22,165,052 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $55,454,982 | | | $9,378,653 | |
Institutional Shares | | 79,115,880 | | | 36,873,575 | |
R6 Shares | | — | | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 5,218,198 | | | 10,844,603 | |
Institutional Shares | | 4,575,483 | | | 7,442,002 | |
R6 Shares | | — | | | — | |
Shares redeemed | | | | | | |
Ordinary Shares | | (30,185,647 | ) | | (15,117,857 | ) |
Institutional Shares | | (36,516,103 | ) | | (31,597,820 | ) |
R6 Shares | | — | | | — | |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $77,662,793 | | | $17,823,156 | |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $136,133,502 | | | $(7,398,478 | ) |
Net Assets Beginning of Year | | 187,263,739 | | | 194,662,217 | |
| | | | | | |
Net Assets End of Year | | $323,397,241 | | | $187,263,739 | |
The accompanying notes are an integral part of these financial statements.
73
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Quality |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 2,716,052 | | | 500,564 | |
Institutional Shares | | 3,412,767 | | | 1,745,448 | |
R6 Shares | | — | | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 256,675 | | | 624,689 | |
Institutional Shares | | 197,304 | | | 378,343 | |
R6 Shares | | — | | | — | |
Shares redeemed | | | | | | |
Ordinary Shares | | (1,478,874 | ) | | (806,350 | ) |
Institutional Shares | | (1,549,392 | ) | | (1,502,693 | ) |
R6 Shares | | — | | | — | |
Increase (Decrease) in Shares Outstanding | | 3,554,532 | | | 940,001 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
74
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Environmental Opportunities |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $(64,867 | ) | | $(179,482 | ) |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | (8,976,860 | ) | | (2,895,870 | ) |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, currency and deferred non-U.S. taxes | | 2,177,417 | | | (7,752,606 | ) |
Net increase/(decrease) from operations | | $(6,864,310 | ) | | $(10,827,958 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $— | | | $(529 | ) |
Institutional shares | | — | | | (3,042 | ) |
R6 Shares | | — | | | (148 | ) |
Total distributions to shareholders | | $— | | | $(3,719 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $1,829,537 | | | $2,820,299 | |
Institutional Shares | | 8,510,062 | | | 13,113,359 | |
R6 Shares | | 1,287,907 | | | 676,582 | |
Distributions reinvested | | | | | | |
Ordinary Shares | | — | | | 516 | |
Institutional Shares | | — | | | 2,682 | |
R6 Shares | | — | | | 148 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (740,099 | ) | | (393,941 | ) |
Institutional Shares | | (31,291,688 | ) | | (9,641,588 | ) |
R6 Shares | | (94,514 | ) | | (31,548 | ) |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $(20,498,795 | ) | | $6,546,509 | |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $(27,363,105 | ) | | $(4,285,168 | ) |
Net Assets Beginning of Year | | 72,824,233 | | | 77,109,401 | |
| | | | | | |
Net Assets End of Year | | $45,461,128 | | | $72,824,233 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
75
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Environmental Opportunities |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 150,028 | | | 199,101 | |
Institutional Shares | | 649,240 | | | 933,096 | |
R6 Shares | | 236,577 | | | 107,540 | |
Distributions reinvested | | | | | | |
Ordinary Shares | | — | | | 36 | |
Institutional Shares | | — | | | 186 | |
R6 Shares | | — | | | 22 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (58,493 | ) | | (28,953 | ) |
Institutional Shares | | (2,501,493 | ) | | (693,789 | ) |
R6 Shares | | (16,601 | ) | | (5,073 | ) |
Increase (Decrease) in Shares Outstanding | | (1,540,742 | ) | | 512,166 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
76
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Foreign Value |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $73,199,861 | | | $83,249,738 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | 100,368,701 | | | (219,264,931 | ) |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, currency and deferred non-U.S. taxes. | | 255,181,536 | | | (126,463,208 | ) |
Net increase/(decrease) from operations | | $428,750,098 | | | $(262,478,401 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $(6,293,154 | ) | | $(5,146,514 | ) |
Institutional shares | | (52,692,664 | ) | | (44,269,730 | ) |
R6 Shares | | (22,546,318 | ) | | (23,568,766 | ) |
Total distributions to shareholders | | $(81,532,136 | ) | | $(72,985,010 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $6,298,707 | | | $17,679,276 | * |
Institutional Shares | | 239,517,996 | | | 486,773,497 | |
R6 Shares | | 32,162,117 | | | 101,794,981 | * |
Distributions reinvested | | | | | | |
Ordinary Shares | | 5,667,074 | | | 4,688,581 | |
Institutional Shares | | 46,847,543 | | | 38,988,500 | |
R6 Shares | | 17,827,096 | | | 17,104,236 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (76,006,272 | ) | | (62,081,863 | ) |
Institutional Shares | | (577,253,914 | ) | | (1,142,075,586 | ) |
R6 Shares | | (117,335,058 | ) | | (276,101,627 | ) |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $(422,274,711 | ) | | $(813,230,005 | ) |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $(75,056,749 | ) | | $(1,148,693,416 | ) |
Net Assets Beginning of Year | | 3,175,973,135 | | | 4,324,666,551 | |
| | | | | | |
Net Assets End of Year | | $3,100,916,386 | | | $3,175,973,135 | |
The accompanying notes are an integral part of these financial statements.
77
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Foreign Value |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 285,448 | | | 839,046 | |
Institutional Shares | | 10,976,493 | | | 24,784,726 | |
R6 Shares | | 3,002,621 | | | 10,306,774 | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 251,423 | | | 233,611 | |
Institutional Shares | | 2,089,543 | | | 1,953,332 | |
R6 Shares | | 1,640,027 | | | 1,725,957 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (3,455,811 | ) | | (3,090,121 | ) |
Institutional Shares | | (26,448,007 | ) | | (57,662,966 | ) |
R6 Shares | | (10,881,046 | ) | | (27,214,713 | ) |
Increase (Decrease) in Shares Outstanding | | (22,539,309 | ) | | (48,124,354 | ) |
*Includes contributions to capital from investment managers/brokers for: Ordinary $1 and R6 $222.
The accompanying notes are an integral part of these financial statements.
78
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Foreign Value Small Cap |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $23,423,042 | | | $25,007,771 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | 6,561,997 | | | (42,848,533 | ) |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, currency and deferred non-U.S. taxes. | | 104,208,875 | | | (57,871,740 | ) |
Net increase/(decrease) from operations | | $134,193,914 | | | $(75,712,502 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $(2,653,810 | ) | | $(5,941,012 | ) |
Institutional shares | | (15,576,021 | ) | | (27,992,923 | ) |
R6 Shares | | (7,937,962 | ) | | (15,300,134 | ) |
Total distributions to shareholders | | $(26,167,793 | ) | | $(49,234,069 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $10,790,936 | | | $14,865,458 | |
Institutional Shares | | 84,268,660 | | | 198,065,956 | |
R6 Shares | | 74,416,117 | | | 92,514,601 | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 2,046,690 | | | 4,896,246 | |
Institutional Shares | | 14,421,353 | | | 25,981,835 | |
R6 Shares | | 7,089,169 | | | 13,472,896 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (33,211,846 | ) | | (43,573,668 | ) |
Institutional Shares | | (144,681,516 | ) | | (288,838,534 | ) |
R6 Shares | | (100,617,184 | ) | | (75,496,943 | ) |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $(85,477,621 | ) | | $(58,112,153 | ) |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $22,548,500 | | | $(183,058,724 | ) |
Net Assets Beginning of Year | | 1,000,595,294 | | | 1,183,654,018 | |
| | | | | | |
Net Assets End of Year | | $1,023,143,794 | | | $1,000,595,294 | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
79
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | Foreign Value Small Cap |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 733,944 | | | 1,083,419 | |
Institutional Shares | | 5,668,690 | | | 14,330,269 | |
R6 Shares | | 6,984,681 | | | 8,879,839 | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 134,828 | | | 365,119 | |
Institutional Shares | | 951,277 | | | 1,938,943 | |
R6 Shares | | 657,622 | | | 1,400,509 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (2,240,398 | ) | | (3,133,982 | ) |
Institutional Shares | | (9,754,232 | ) | | (21,168,711 | ) |
R6 Shares | | (9,893,492 | ) | | (7,224,195 | ) |
Increase (Decrease) in Shares Outstanding | | (6,757,080 | ) | | (3,528,790 | ) |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
80
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | International Opportunities |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Increase (Decrease) in Net Assets: | | | | | | |
Operations: | | | | | | |
Net investment income/(loss) | | $756,306 | | | $472,978 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | | 1,001,173 | | | (915,648 | ) |
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, currency and deferred non-U.S. taxes. | | 8,391,562 | | | (838,399 | ) |
Net increase/(decrease) from operations | | $10,149,041 | | | $(1,281,069 | ) |
Distributions to shareholders | | | | | | |
Ordinary shares | | $(73,193 | ) | | $(1,346 | ) |
Institutional shares | | (53,709 | ) | | (58,893 | ) |
R6 Shares | | (339,272 | ) | | (364,743 | ) |
Total distributions to shareholders | | $(466,174 | ) | | $(424,982 | ) |
Capital Stock Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | $380,621 | | | $500 | |
Institutional Shares | | 387,810 | | | 147,099 | |
R6 Shares | | 257,702 | | | 3,630,407 | |
Shares issued in the Acquisition (Note 1) | | | | | |
Ordinary Shares | | 53,765,215 | * | | — | |
Institutional Shares | | 3,911,386 | * | | — | |
R6 Shares | | 627,632 | * | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 47,442 | | | 1,346 | |
Institutional Shares | | 53,405 | | | 55,863 | |
R6 Shares | | 339,272 | | | 364,743 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (7,992,472 | ) | | (26,459 | ) |
Institutional Shares | | (1,646,077 | ) | | (176,361 | ) |
R6 Shares | | (670,120 | ) | | (168,409 | ) |
| | | | | | |
Net increase (decrease) from capital stock transactions | | $49,461,816 | | | $3,828,729 | |
| | | | | | |
Net Increase/(Decrease) in Net Assets | | $59,144,684 | | | $2,122,678 | |
Net Assets Beginning of Year | | 28,056,624 | | | 25,933,946 | |
| | | | | | |
Net Assets End of Year | | $87,201,308 | | | $28,056,624 | |
The accompanying notes are an integral part of these financial statements.
81
STATEMENT OF CHANGES IN NET ASSETS (continued)
| | | | | | |
| | International Opportunities |
Year Ended March 31, 2024 | | Year Ended March 31, 2023 |
Share Transactions | | | | | | |
Shares sold | | | | | | |
Ordinary Shares | | 32,911 | | | 43 | |
Institutional Shares | | 32,323 | | | 15,517 | |
R6 Shares | | 21,515 | | | 334,586 | |
Shares issued in the Acquisition (Note 1) | | | | | |
Ordinary Shares | | 5,187,990 | | | — | |
Institutional Shares | | 373,552 | | | — | |
R6 Shares | | 59,865 | | | — | |
Distributions reinvested | | | | | | |
Ordinary Shares | | 3,986 | | | 123 | |
Institutional Shares | | 4,949 | | | 5,055 | |
R6 Shares | | 31,851 | | | 33,038 | |
Shares redeemed | | | | | | |
Ordinary Shares | | (687,891 | ) | | (2,368 | ) |
Institutional Shares | | (137,740 | ) | | (16,382 | ) |
R6 Shares | | (56,034 | ) | | (14,591 | ) |
Increase (Decrease) in Shares Outstanding | | 4,867,277 | | | 355,021 | |
*Includes allocation of unrealized depreciation in the amount of $(121,015) for Ordinary Shares, $(15,713) for Institutional Shares and $(50,958) for R6 Shares.
The accompanying notes are an integral part of these financial statements.
82
PEAR TREE POLARIS SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Ordinary Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $22.87 | | $26.02 | | $27.43 | | $15.45 | | $23.97 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(c) | 0.24 | | 0.20 | | 0.17 | | 0.14 | | 0.15 | |
Net realized and unrealized gain/(loss) on securities | 4.57 | | (1.05 | ) | 0.63 | | 12.00 | | (6.73 | ) |
Total from Investment Operations | 4.81 | | (0.85 | ) | 0.80 | | 12.14 | | (6.58 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.22 | ) | (0.10 | ) | (0.15 | ) | (0.16 | ) | (0.14 | ) |
Distributions from realized capital gains | — | | (2.20 | ) | (2.06 | ) | — | | (1.80 | ) |
Total Distributions | (0.22 | ) | (2.30 | ) | (2.21 | ) | (0.16 | ) | (1.94 | ) |
Net Asset Value, End of Period | $27.46 | | $22.87 | | $26.02 | | $27.43 | | $15.45 | |
Total Return | 21.12 | % | (3.39 | )% | 2.89 | % | 78.75 | % | (30.27 | )% |
Net Assets, End of Period (000’s) | $73,718 | | $67,389 | | $75,159 | | $86,880 | | $60,008 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.36 | % | 1.35 | % | 1.33 | % | 1.37 | % | 1.35 | % |
Net | 1.36 | % | 1.35 | % | 1.33 | % | 1.37 | % | 1.35 | % |
Ratio of net investment income (loss) to average net assets(c) | 1.00 | % | 0.85 | % | 0.61 | % | 0.66 | % | 0.63 | % |
Portfolio Turnover | 12 | % | 30 | % | 23 | % | 33 | % | 28 | % |
The accompanying notes are an integral part of these financial statements.
83
PEAR TREE POLARIS SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Institutional Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $28.77 | | $32.10 | | $33.32 | | $18.73 | | $28.67 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.42 | | 0.36 | | 0.32 | | 0.26 | | 0.27 | |
Net realized and unrealized gain/(loss) on securities | 5.75 | | (1.30 | ) | 0.78 | | 14.57 | | (8.17 | ) |
Total from Investment Operations | 6.17 | | (0.94 | ) | 1.10 | | 14.83 | | (7.90 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.31 | ) | (0.19 | ) | (0.26 | ) | (0.24 | ) | (0.24 | ) |
Distributions from realized capital gains | — | | (2.20 | ) | (2.06 | ) | — | | (1.80 | ) |
Total Distributions | (0.31 | ) | (2.39 | ) | (2.32 | ) | (0.24 | ) | (2.04 | ) |
Net Asset Value, End of Period | $34.63 | | $28.77 | | $32.10 | | $33.32 | | $18.73 | |
Total Return | 21.53 | % | (3.02 | )% | 3.27 | % | 79.43 | % | (30.02 | )% |
Net Assets, End of Period (000’s) | $14,414 | | $10,790 | | $9,055 | | $8,792 | | $5,681 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.12 | % | 1.10 | % | 1.08 | % | 1.12 | % | 1.10 | % |
Net | 1.00 | % | 0.98 | % | 0.96 | % | 1.00 | % | 0.98 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 1.40 | % | 1.21 | % | 0.97 | % | 1.04 | % | 1.02 | % |
Portfolio Turnover | 12 | % | 30 | % | 23 | % | 33 | % | 28 | % |
(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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests.
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests,
The accompanying notes are an integral part of these financial statements.
84
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Ordinary Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $18.19 | | $21.11 | | $21.14 | | $15.06 | | $18.66 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.08 | | 0.08 | | 0.06 | | 0.10 | | 0.12 | |
Net realized and unrealized gain/(loss) on securities | 5.46 | | (0.57 | ) | 2.35 | | 7.55 | | (0.19 | ) |
Total from Investment Operations | 5.54 | | (0.49 | ) | 2.41 | | 7.65 | | (0.07 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.07 | ) | (0.08 | ) | (0.05 | ) | (0.10 | ) | (0.15 | ) |
Distributions from realized capital gains | (0.83 | ) | (2.35 | ) | (2.39 | ) | (1.47 | ) | (3.38 | ) |
Total Distributions | (0.90 | ) | (2.43 | ) | (2.44 | ) | (1.57 | ) | (3.53 | ) |
Net Asset Value, End of Period | $22.83 | | $18.19 | | $21.11 | | $21.14 | | $15.06 | |
Total Return | 31.08 | % | (1.78 | )% | 10.66 | % | 51.83 | % | (2.98 | )% |
Net Assets, End of Period (000’s) | $182,282 | | $118,065 | | $130,244 | | $137,485 | | $97,951 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.52 | % | 1.51 | % | 1.50 | % | 1.52 | % | 1.54 | % |
Net | 1.14 | % | 1.19 | % | 1.16 | % | 1.22 | % | 1.27 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 0.40 | % | 0.44 | % | 0.24 | % | 0.53 | % | 0.62 | % |
Portfolio Turnover | 23 | % | 34 | % | 31 | % | 41 | % | 35 | % |
The accompanying notes are an integral part of these financial statements.
85
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Institutional Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $20.64 | | $23.59 | | $23.39 | | $16.53 | | $20.18 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income(loss)(a)(b)(c) | 0.18 | | 0.17 | | 0.16 | | 0.20 | | 0.21 | |
Net realized and unrealized gain/(loss) on securities | 6.22 | | (0.62 | ) | 2.60 | | 8.30 | | (0.25 | ) |
Total from Investment Operations | 6.40 | | (0.45 | ) | 2.76 | | 8.50 | | (0.04 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.14 | ) | (0.15 | ) | (0.17 | ) | (0.17 | ) | (0.23 | ) |
Distributions from realized capital gains | (0.83 | ) | (2.35 | ) | (2.39 | ) | (1.47 | ) | (3.38 | ) |
Total Distributions | (0.97 | ) | (2.50 | ) | (2.56 | ) | (1.64 | ) | (3.61 | ) |
Net Asset Value, End of Period | $26.07 | | $20.64 | | $23.59 | | $23.39 | | $16.53 | |
Total Return | 31.58 | % | (1.38 | )% | 11.09 | % | 52.42 | % | (2.62 | )% |
Net Assets, End of Period (000’s) | $141,115 | | $69,199 | | $64,418 | | $46,891 | | $9,624 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.27 | % | 1.26 | % | 1.25 | % | 1.27 | % | 1.29 | % |
Net | 0.77 | % | 0.79 | % | 0.78 | % | 0.80 | % | 0.90 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 0.77 | % | 0.84 | % | 0.62 | % | 0.92 | % | 1.04 | % |
Portfolio Turnover | 23 | % | 34 | % | 31 | % | 41 | % | 35 | % |
(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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests.
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests.
The accompanying notes are an integral part of these financial statements.
86
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| Ordinary Shares |
| Year Ended March 31, 2024 | Year Ended March 31, 2023 | Seven Months Ended March 31, 2022(1) | Years Ended August 31,* |
| 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Period | $13.87 | | $16.13 | | $20.12 | | $12.63 | | $10.05 | | $10.69 | |
Income from Investment Operations: | | | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | (0.04 | ) | (0.07 | ) | (0.09 | ) | (0.06 | ) | (0.06 | ) | (0.02 | ) |
Net realized and unrealized gain/(loss) on securities | (1.11 | ) | (2.19 | ) | (2.69 | ) | 7.83 | | 2.64 | | (0.62 | ) |
Total from Investment Operations | (1.15 | ) | (2.26 | ) | (2.78 | ) | 7.77 | | 2.58 | | (0.64 | ) |
Less Distributions: | | | | | | | | | | | | |
Dividends from net investment income | — | | — | | — | | — | | — | | — | |
Distributions from realized capital gains | — | | 0.00 | (2) | (1.21 | ) | (0.28 | ) | — | | — | |
Total Distributions | — | | 0.00 | (2) | (1.21 | ) | (0.28 | ) | — | | — | |
Net Asset Value, End of Period | $12.72 | | $13.87 | | $16.13 | | $20.12 | | $12.63 | | $10.05 | |
Total Return | (8.29 | )% | (14.01 | )% | (14.67 | )% (4) | 61.95 | % | 25.67 | % | (5.99 | )% |
Net Assets, End of Period (000’s) | $10,904 | | $10,615 | | $9,601 | | $263 | | $44 | | $16 | |
Ratios and Supplemental Data: | | | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | | | |
Gross | 1.51 | % | 1.58 | % | 2.11 | %(3) | 1.55 | % | 2.66 | % | 4.22 | % |
Net | 1.24 | % | 1.23 | % | 1.24 | %(3) | 1.24 | % | 1.24 | % | 1.28 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | (0.31 | )% | (0.47 | )% | (0.99 | )%(3) | (0.80 | )% | (0.63 | )% | (0.24 | )% |
Portfolio Turnover | 47 | % | 31 | % | 9 | % | 41 | % | 37 | % | 30 | % |
The accompanying notes are an integral part of these financial statements.
87
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| Institutional Shares |
| Year Ended March 31, 2024 | Year Ended March 31, 2023 | Seven Months Ended March 31, 2022(1) | Years Ended August 31,* |
| 2021 | | 2020 | | 2019 | |
Net Asset Value, Beginning of Period | $14.07 | | $16.32 | | $20.32 | | $12.72 | | $10.10 | | $10.71 | |
Income from Investment Operations: | | | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | (0.01 | ) | (0.03 | ) | (0.08 | ) | (0.07 | ) | (0.03 | ) | _ | (2) |
Net realized and unrealized gain/(loss) on securities | (1.12 | ) | (2.22 | ) | (2.71 | ) | 7.95 | | 2.65 | | (0.61 | ) |
Total from Investment Operations | (1.13 | ) | (2.25 | ) | (2.79 | ) | 7.88 | | 2.62 | | (0.61 | ) |
Less Distributions: | | | | | | | | | | | | |
Dividends from net investment income | — | | — | | — | | — | | — | | — | |
Distributions from realized capital gains | — | | 0.00 | (2) | (1.21 | ) | (0.28 | ) | — | | — | |
Total Distributions | — | | 0.00 | (2) | (1.21 | ) | (0.28 | ) | — | | — | |
Net Asset Value, End of Period | $12.94 | | $14.07 | | $16.32 | | $20.32 | | $12.72 | | $10.10 | |
Total Return | (8.03 | )% | (13.78 | )% | (14.57 | )%(4) | 62.39 | % | 25.94 | % | (5.70 | )% |
Net Assets, End of Period (000’s) | $31,623 | | $60,435 | | $66,215 | | $66,561 | | $22,494 | | $8,893 | |
Ratios and Supplemental Data: | | | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | | | |
Gross | 1.25 | % | 1.33 | % | 2.30 | %(3) | 1.30 | % | 2.41 | % | 3.97 | % |
Net | 0.99 | % | 0.98 | % | 0.99 | %(3) | 0.99 | % | 0.99 | % | 1.03 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | (0.06 | )% | (0.22 | )% | (0.77 | )%(3) | (0.55 | )% | (0.37 | )% | (0.02 | )% |
Portfolio Turnover | 47 | % | 31 | % | 9 | % | 41 | % | 37 | % | 30 | % |
The accompanying notes are an integral part of these financial statements.
88
PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | |
| R6 Shares |
Year Ended March 31, 2024 | Year Ended March 31, 2023 | Commencement of Operations to the Seven Months Ended March 31, 2022(1) |
Net Asset Value, Beginning of Period | $6.43 | | $7.46 | | $10.00 | |
Income from Investment Operations: | | | | | | |
Net investment income (loss)(a)(b)(c) | — | | (0.01 | ) | (0.03 | ) |
Net realized and unrealized gain/(loss) on securities | (0.51 | ) | (1.02 | ) | (1.30 | ) |
Total from Investment Operations | (0.51 | ) | (1.03 | ) | (1.33 | ) |
Less Distributions: | | | | | | |
Dividends from net investment income | — | | — | | — | |
Distributions from realized capital gains | — | | 0.00 | (2) | (1.21 | ) |
Total Distributions | — | | 0.00 | (2) | (1.21 | ) |
Net Asset Value, End of Period | $5.92 | | $6.43 | | $7.46 | |
Total Return | (7.93 | )% | (13.80 | )% | (15.00 | )%(4) |
Net Assets, End of Period (000’s) | $2,934 | | $1,774 | | $1,293 | |
Ratios and Supplemental Data: | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | |
Gross | 1.12 | % | 1.18 | % | 2.08 | %(3) |
Net | 0.95 | % | 0.93 | % | 0.95 | %(3) |
Ratio of net investment income (loss) to average net assets(b)(c) | (0.00 | )% | (0.17 | )% | (0.71 | )(3) |
Portfolio Turnover | 47 | % | 31 | % | 9 | % |
(1)Commenced operations September 1, 2021
(2)Rounds to less than $0.005 per share
(3)Annualized
(4)Not 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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests.
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests,
*Figures presented are for Essex Environmental Opportunities Fund, which was merged into Environmental Opportunities Fund on August 31, 2021. At the time of the transaction, Environmental Opportunities Fund was a new series of the Trust without any assets or liabilities. For more information relating to that transaction, see Note 1 to the Financial Statements.
The accompanying notes are an integral part of these financial statements.
89
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Ordinary Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $21.21 | | $22.68 | | $24.33 | | $14.83 | | $20.77 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.45 | | 0.40 | | 0.35 | | 0.23 | | 0.44 | |
Net realized and unrealized gain/(loss) on securities | 2.64 | | (1.57 | ) | (1.76 | ) | 9.62 | | (6.13 | ) |
Total from Investment Operations | 3.09 | | (1.17 | ) | (1.41 | ) | 9.85 | | (5.69 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.44 | ) | (0.30 | ) | (0.24 | ) | (0.35 | ) | (0.25 | ) |
Distributions from realized capital gains | — | | — | | — | | — | | — | |
Total Distributions | (0.44 | ) | (0.30 | ) | (0.24 | ) | (0.35 | ) | (0.25 | ) |
Net Asset Value, End of Period | $23.86 | | $21.21 | | $22.68 | | $24.33 | | $14.83 | |
Total Return | 14.66 | % | (5.10 | )% | (5.84 | )% | 66.76 | % | (27.75 | )% |
Net Assets, End of Period (000’s) | $328,464 | | $353,812 | | $424,110 | | $524,972 | | $435,137 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.51 | % | 1.52 | % | 1.50 | % | 1.50 | % | 1.50 | % |
Net | 1.41 | % | 1.42 | %(f) | 1.40 | %(e) | 1.40 | % | 1.40 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.07 | % | 2.00 | % | 1.45 | % | 1.18 | % | 2.13 | % |
Portfolio Turnover | 21 | % | 15 | % | 19 | % | 23 | % | 28 | % |
The accompanying notes are an integral part of these financial statements.
90
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Institutional Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | | 2021 | 2020 |
Net Asset Value, Beginning of Period | $21.12 | | $22.59 | | $24.25 | | $14.78 | | $20.71 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.53 | | 0.48 | | 0.44 | | 0.31 | | 0.50 | |
Net realized and unrealized gain/(loss) on securities | 2.63 | | (1.57 | ) | (1.76 | ) | 9.60 | | (6.09 | ) |
Total from Investment Operations | 3.16 | | (1.09 | ) | (1.32 | ) | 9.91 | | (5.59 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.52 | ) | (0.38 | ) | (0.34 | ) | (0.44 | ) | (0.34 | ) |
Distributions from realized capital gains | — | | — | | — | | — | | — | |
Total Distributions | (0.52 | ) | (0.38 | ) | (0.34 | ) | (0.44 | ) | (0.34 | ) |
Net Asset Value, End of Period | $23.76 | | $21.12 | | $22.59 | | $24.25 | | $14.78 | |
Total Return | 15.12 | % | (4.74 | )% | (5.51 | )% | 67.42 | % | (27.50 | )% |
Net Assets, End of Period (000’s) | $2,312,374 | | $2,338,037 | | $3,199,601 | | $2,962,171 | | $1,740,528 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.26 | % | 1.27 | % | 1.26 | % | 1.25 | % | 1.25 | % |
Net | 1.04 | % | 1.05 | %(f) | 1.04 | %(e) | 1.03 | % | 1.03 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.42 | % | 2.41 | % | 1.84 | % | 1.56 | % | 2.45 | % |
Portfolio Turnover | 21 | % | 15 | % | 19 | % | 23 | % | 28 | % |
The accompanying notes are an integral part of these financial statements.
91
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| R6 Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $10.49 | | $11.42 | | $12.43 | | $7.72 | | $10.97 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.27 | | 0.25 | | 0.24 | | 0.17 | | 0.25 | |
Net realized and unrealized gain/(loss) on securities | 1.29 | | (0.80 | ) | (0.91 | ) | 4.98 | | (3.16 | ) |
Total from Investment Operations | 1.56 | | (0.55 | ) | (0.67 | ) | 5.15 | | (2.91 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.53 | ) | (0.38 | ) | (0.34 | ) | (0.44 | ) | (0.34 | ) |
Distributions from realized capital gains | — | | — | | — | | — | | — | |
Total Distributions | (0.53 | ) | (0.38 | ) | (0.34 | ) | (0.44 | ) | (0.34 | ) |
Net Asset Value, End of Period | $11.52 | | $10.49 | | $11.42 | | $12.43 | | $7.72 | |
Total Return | 15.17 | % | (4.58 | )% | (5.46 | )% | 67.52 | % | (27.43 | )% |
Net Assets, End of Period (000’s) | $460,078 | | $484,124 | | $700,956 | | $676,695 | | $384,224 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.11 | % | 1.12 | % | 1.10 | % | 1.10 | % | 1.10 | % |
Net | 0.94 | % | 0.95 | %(f) | 0.95 | %(e) | 0.94 | % | 0.94 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.51 | % | 2.45 | % | 1.90 | % | 1.66 | % | 2.28 | % |
Portfolio Turnover | 21 | % | 15 | % | 19 | % | 23 | % | 28 | % |
(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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests.
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests.
(e)Ratio (Net) would have been 1.39% for Ordinary, 1.03% for Institutional and 0.94% for R6 if the Trust did not engage a third-party to assist in reclaiming EU tax overpayments made by the fund.
(f)Ratio (Net) would have been 1.41% for Ordinary, 1.04% for Institutional and 0.94% for R6 if the Trust did not engage a third-party to assist in reclaiming EU tax overpayments made by the fund.
The accompanying notes are an integral part of these financial statements.
92
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Ordinary Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $14.21 | | $15.76 | | $16.54 | | $10.07 | | $13.56 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.31 | | 0.29 | | 0.20 | | 0.12 | | 0.65 | |
Net realized and unrealized gain/(loss) on securities | 1.78 | | (1.26 | ) | (0.63 | ) | 6.88 | | (3.76 | ) |
Total from Investment Operations | 2.09 | | (0.97 | ) | (0.43 | ) | 7.00 | | (3.11 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.33 | ) | (0.58 | ) | (0.15 | ) | (0.53 | ) | (0.38 | ) |
Distributions from realized capital gains | — | | — | | (0.20 | ) | — | | — | |
Total Distributions | (0.33 | ) | (0.58 | ) | (0.35 | ) | (0.53 | ) | (0.38 | ) |
Net Asset Value, End of Period | $15.97 | | $14.21 | | $15.76 | | $16.54 | | $10.07 | |
Total Return | 14.81 | % | (5.95 | )% | (2.72 | )% | 70.25 | % | (23.73 | )% |
Net Assets, End of Period (000’s) | $124,102 | | $129,983 | | $170,731 | | $194,665 | | $133,912 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.52 | % | 1.52 | % | 1.51 | % | 1.53 | % | 1.53 | % |
Net | 1.42 | % | 1.42 | % | 1.41 | % | 1.43 | % | 1.43 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.07 | % | 2.09 | % | 1.15 | % | 0.90 | % | 4.85 | % |
Portfolio Turnover | 21 | % | 18 | % | 29 | % | 35 | % | 33 | % |
The accompanying notes are an integral part of these financial statements.
93
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Institutional Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $14.21 | | $15.77 | | $16.54 | | $10.07 | | $13.57 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.36 | | 0.35 | | 0.25 | | 0.17 | | 0.69 | |
Net realized and unrealized gain/(loss) on securities | 1.78 | | (1.28 | ) | (0.61 | ) | 6.88 | | (3.76 | ) |
Total from Investment Operations | 2.14 | | (0.93 | ) | (0.36 | ) | 7.05 | | (3.07 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.39 | ) | (0.63 | ) | (0.21 | ) | (0.58 | ) | (0.43 | ) |
Distributions from realized capital gains | — | | — | | (0.20 | ) | — | | — | |
Total Distributions | (0.39 | ) | (0.63 | ) | (0.41 | ) | (0.58 | ) | (0.43 | ) |
Net Asset Value, End of Period | $15.96 | | $14.21 | | $15.77 | | $16.54 | | $10.07 | |
Total Return | 15.20 | % | (5.65 | )% | (2.29 | )% | 70.84 | % | (23.50 | )% |
Net Assets, End of Period (000’s) | $634,476 | | $609,581 | | $753,426 | | $625,221 | | $367,321 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.27 | % | 1.27 | % | 1.26 | % | 1.28 | % | 1.28 | % |
Net | 1.05 | % | 1.05 | % | 1.04 | % | 1.06 | % | 1.06 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.42 | % | 2.50 | % | 1.49 | % | 1.27 | % | 5.02 | % |
Portfolio Turnover | 21 | % | 18 | % | 29 | % | 35 | % | 33 | % |
The accompanying notes are an integral part of these financial statements.
94
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| R 6 Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $10.21 | | $11.53 | | $12.20 | | $7.53 | | $10.25 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.27 | | 0.25 | | 0.17 | | 0.13 | | 0.55 | |
Net realized and unrealized gain/(loss) on securities | 1.25 | | (0.93 | ) | (0.43 | ) | 5.12 | | (2.83 | ) |
Total from Investment Operations | 1.52 | | (0.68 | ) | (0.26 | ) | 5.25 | | (2.28 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.39 | ) | (0.64 | ) | (0.21 | ) | (0.58 | ) | (0.44 | ) |
Distributions from realized capital gains | — | | — | | (0.20 | ) | — | | — | |
Total Distributions | (0.39 | ) | (0.64 | ) | (0.41 | ) | (0.58 | ) | (0.44 | ) |
Net Asset Value, End of Period | $11.34 | | $10.21 | | $11.53 | | $12.20 | | $7.53 | |
Total Return | 15.13 | % | (5.59 | )% | (2.23 | )% | 70.90 | % | (23.46 | )% |
Net Assets, End of Period (000’s) | $264,566 | | $261,031 | | $259,496 | | $129,822 | | $96,708 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.12 | % | 1.12 | % | 1.12 | % | 1.13 | % | 1.13 | % |
Net | 1.02 | % | 1.02 | % | 1.02 | % | 1.03 | % | 1.03 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 2.52 | % | 2.53 | % | 1.35 | % | 1.32 | % | 5.62 | % |
Portfolio Turnover | 21 | % | 18 | % | 29 | % | 35 | % | 33 | % |
(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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests,
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests.
The accompanying notes are an integral part of these financial statements.
95
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Ordinary Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $11.68 | | $12.69 | | $13.95 | | $7.98 | | $10.60 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.11 | | 0.17 | | 0.10 | | 0.01 | | (0.05 | ) |
Net realized and unrealized gain/(loss) on securities | 0.31 | | (1.03 | ) | 0.23 | | 6.05 | | (2.54 | ) |
Total from Investment Operations | 0.42 | | (0.86 | ) | 0.33 | | 6.06 | | (2.59 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.12 | ) | (0.15 | ) | (0.16 | ) | — | | — | |
Distributions from realized capital gains | — | | — | | (1.43 | ) | (0.09 | ) | (0.03 | ) |
Total Distributions | (0.12 | ) | (0.15 | ) | (1.59 | ) | (0.09 | ) | (0.03 | ) |
Net Asset Value, End of Period | $11.98 | | $11.68 | | $12.69 | | $13.95 | | $7.98 | |
Total Return | 3.70 | % | (6.69 | )% | 1.90 | % | 76.07 | % | (24.50 | )% |
Net Assets, End of Period (000’s) | $54,438 | | $95 | | $131 | | $86 | | $49 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.81 | % | 1.60 | % | 1.63 | % | 1.62 | % | 1.90 | % |
Net | 1.71 | %(e) | 1.60 | % | 1.63 | % | 1.62 | % | 1.90 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 0.90 | % | 1.56 | % | 0.72 | % | 0.12 | % | (0.44 | )% |
Portfolio Turnover | 38 | % | 57 | % | 51 | % | 55 | % | 142 | %(f) |
The accompanying notes are an integral part of these financial statements.
96
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| Institutional Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $11.81 | | $12.83 | | $14.06 | | $8.02 | | $10.60 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.20 | | 0.22 | | 0.18 | | 0.06 | | (0.01 | ) |
Net realized and unrealized gain/(loss) on securities | 0.28 | | (1.04 | ) | 0.21 | | 6.07 | | (2.54 | ) |
Total from Investment Operations | 0.48 | | (0.82 | ) | 0.39 | | 6.13 | | (2.55 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.16 | ) | (0.20 | ) | (0.19 | ) | — | | — | |
Distributions from realized capital gains | — | | — | | (1.43 | ) | (0.09 | ) | (0.03 | ) |
Total Distributions | (0.16 | ) | (0.20 | ) | (1.62 | ) | (0.09 | ) | (0.03 | ) |
Net Asset Value, End of Period | $12.13 | | $11.81 | | $12.83 | | $14.06 | | $8.02 | |
Total Return | 4.24 | % | (6.32 | )% | 2.37 | % | 76.56 | % | (24.10 | )% |
Net Assets, End of Period (000’s) | $6,843 | | $3,438 | | $3,682 | | $12,314 | | $6,995 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.57 | % | 1.38 | % | 1.34 | % | 1.37 | % | 1.65 | % |
Net | 1.30 | %(e) | 1.26 | % | 1.22 | % | 1.25 | % | 1.53 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 1.62 | % | 1.94 | % | 1.21 | % | 0.49 | % | (0.05 | )% |
Portfolio Turnover | 38 | % | 57 | % | 51 | % | 55 | % | 142 | %(f) |
The accompanying notes are an integral part of these financial statements.
97
PEAR TREE POLARIS INTERNATIONAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | |
| R6 Shares |
| Years Ended March 31, |
| 2024 | 2023 | 2022 | 2021 | 2020 |
Net Asset Value, Beginning of Period | $11.80 | | $12.82 | | $14.07 | | $8.02 | | $10.60 | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income (loss)(a)(b)(c) | 0.22 | | 0.22 | | 0.15 | | 0.06 | | (0.01 | ) |
Net realized and unrealized gain/(loss) on securities | 0.28 | | (1.04 | ) | 0.23 | | 6.08 | | (2.53 | ) |
Total from Investment Operations | 0.50 | | (0.82 | ) | 0.38 | | 6.14 | | (2.54 | ) |
Less Distributions: | | | | | | | | | | |
Dividends from net investment income | (0.16 | ) | (0.20 | ) | (0.20 | ) | — | | (0.01 | ) |
Distributions from realized capital gains | — | | — | | (1.43 | ) | (0.09 | ) | (0.03 | ) |
Total Distributions | (0.16 | ) | (0.20 | ) | (1.63 | ) | (0.09 | ) | (0.04 | ) |
Net Asset Value, End of Period | $12.14 | | $11.80 | | $12.82 | | $14.07 | | $8.02 | |
Total Return | 4.45 | % | (6.30 | )% | 2.25 | % | 76.69 | % | (24.08 | )% |
Net Assets, End of Period (000’s) | $25,920 | | $24,524 | | $22,121 | | $11,490 | | $6,240 | |
Ratios and Supplemental Data: | | | | | | | | | | |
Ratios of expenses to average net assets:(d) | | | | | | | | | | |
Gross | 1.44 | % | 1.23 | % | 1.29 | % | 1.22 | % | 1.50 | % |
Net | 1.23 | %(e) | 1.23 | % | 1.29 | % | 1.22 | % | 1.50 | % |
Ratio of net investment income (loss) to average net assets(b)(c) | 1.88 | % | 1.99 | % | 1.11 | % | 0.51 | % | (0.08 | )% |
Portfolio Turnover | 38 | % | 57 | % | 51 | % | 55 | % | 142 | %(f) |
(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 tax purposes. The ratio does not include net investment income of the investment companies in which the Fund invests.
(d)Ratios of expenses to average net assets:
•Gross (total expenses before fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Net (total expenses net of fee waivers, reimbursements and reductions by the investment advisor, and custody earnings credits, if any).
•Does not include expenses of the investment companies in which the Fund invests.
(e)Ratio (Net) would have been 1.57% for Ordinary, 1.16% for Institutional and 1.09% for R6 if the Fund did not incur Proxy Expenses in connection with the Acquisition of Pear Tree Axiom Emerging Markets World Equity Fund. See Note 1 to the Financial Statements.
(f)Turnover is higher due to a change in strategy as of January 1, 2020.
NOTES TO FINANCIAL STATEMENTS
1. Organization of the Trust
Pear Tree 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 an open-end management investment company. As of March 31, 2024, the Trust currently has six separate series (each a “Fund” and collectively the “Funds”), offering shares of beneficial interest, each Fund having its own investment objective and principal strategy.
As of March 31, 2024, there were the following Funds:
Pear Tree Polaris Small Cap Fund (“Small Cap”) which seeks maximum long-term capital appreciation.
Pear Tree Quality Fund (“Quality”) which seeks long-term growth of capital.
Pear Tree Essex Environmental Opportunities Fund (“Environmental Opportunities”), which seeks long-term growth of capital.
Pear Tree Polaris Foreign Value Fund (“Foreign Value”) which seeks long-term capital growth and income.
Pear Tree Polaris Foreign Value Small Cap Fund (“Foreign Value Small Cap”) which seeks long-term capital growth and income.
Pear Tree Polaris International Opportunities Fund (“International Opportunities”), which seeks long-term capital appreciation.
Each of the Funds is a “non-diversified company,” within the meaning of the 1940 Act, other than Environmental Opportunities, which is a “diversified company.”
As the Trust is an investment company, each Fund accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.
The Trustees of the Trust (the ‘Trustees”) have authorized each Fund to issue three classes of shares designated as Ordinary Shares, Institutional Shares and R6 Shares. The three classes differ principally in their respective expense structures and minimum investment requirements. Each class of shares of a Fund represents an interest in the same portfolio of investments of that Fund and has equal rights to voting (except as noted in the following sentence), redemptions, dividends and liquidations. 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 pursuant to Rule 12b-1. There is no 12b-1 distribution plan applicable to Institutional Shares or R6 shares of any Fund. During the period covered by these financial statements, each Fund offered Ordinary shares and Institutional shares. R6 Shares were offered only by Environmental Opportunities, Foreign Value, Foreign Value Small Cap and International Opportunities.
At times, a Fund’s investments may include investments in industries or industry sectors that are interrelated or have common risks, making the Fund 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, especially emerging markets or countries with limited or developing markets, such investments may subject the Fund to a greater degree of risk than similar investments in the U.S. market or a developed market. Risks associated with these foreign and developing markets include
NOTES TO FINANCIAL STATEMENTS (continued)
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 investment risks is contained in the Funds’ prospectus. Please refer to the Funds’ prospectus when considering a Fund’s investment risks.
Essex Reorganization
Pear Tree Essex Environmental Opportunities Fund, (the “Successor Fund”), commenced investment operations as a new series of the Trust on September 1, 2021, with three authorized classes: R6 Shares, Ordinary Shares and Institutional Shares. Immediately prior to commencing operations, the Successor Fund had acquired the assets and assumed the liabilities of Essex Environmental Opportunities Fund (the “Predecessor Fund”) in a tax-free reorganization (the “Reorganization”), as set out in an Agreement and Plan of Reorganization (the “Plan of Reorganization”). The Predecessor Fund had offered two classes of shares: Investor Class shares and Institutional Class shares. The Plan of Reorganization was approved by the Predecessor Fund’s Board of Trustees on February 11, 2021, by the Successor Fund’s Trustees on May 19, 2021, and by the Predecessor Fund’s shareholders on August 16, 2021. The Reorganization was effected after the close of business on August 31, 2021. As a result of the Reorganization, the Successor Fund also assumed the performance and accounting history of the Predecessor Fund. Financial information included herein for the dates on or before August 31, 2021 is that of the Predecessor Fund.
As part of the Reorganization, each shareholder of the Predecessor Fund received the same aggregate share net asset value in the corresponding class of the Successor Fund as noted below. No Predecessor Fund shareholder received any R6 Shares of the Successor Fund:
| | | | | |
Predecessor Fund | | | Successor Fund | |
Class | Aggregate No. of Shares | Aggregate Net Asset Value | Class | Aggregate No. of Shares | Aggregate Net Asset Value |
Investor Class | 13,094 | $263,409 | Ordinary Shares | 13,094 | $263,409 |
Institutional Class | 3,276,149 | $66,560,974 | Institutional Shares | 3,276,149 | $66,560,974 |
| | | R6 Shares | — | $— |
The aggregate amount of the net unrealized appreciation of the Predecessor Fund’s investments transferred to the Successor Fund was as of August 31, 2021, $15,797,686.
Each of the Predecessor Fund and Successor Fund has as its investment objective to seek long-term growth of capital.
At the time of the Reorganization the Successor Fund had a fiscal year end of March 31, and the Predecessor Fund’s fiscal year end was August 31. On October 21, 2021, the Successor Fund’s Trustees changed the Successor Fund’s fiscal year end to March 31, to correspond to the fiscal year end applicable to each of the other Pear Tree Funds.
NOTES TO FINANCIAL STATEMENTS (continued)
Acquisition of Pear Tree Axiom Emerging Markets World Equity Fund by Pear Tree Polaris International Opportunities Fund
On November 1, 2023, International Opportunities Fund issued the following fund shares in exchange for shares of Pear Tree Axiom Emerging Markets World Equity Fund (“Emerging Markets Fund”), at the time a separate series of the Trust, to acquire its net assets in a tax-free exchange approved by Emerging Markets Fund shareholders.
| | | |
International Opportunities Fund Share Class | International Opportunities Fund Shares Exchanged | Emerging Markets Fund Share Class | Emerging Markets Fund Shares Exchanged |
Ordinary Shares | 5,187,990 | Ordinary Shares | 2,970,569 |
Institutional Shares | 373,552 | Institutional Shares | 212,035 |
R6 Shares | 59,865 | R6 Shares | 79,036 |
The investment portfolio of Emerging Markets Fund, with a fair value of $58,674,627 and an identified cost of $58,861,785 as of October 31, 2023, was the principal assets acquired by International Opportunities Fund. As of October 31, 2023, the net assets of International Opportunities Fund had an aggregate value of $25,319,356, and the net assets of Emerging Markets Fund had an aggregate value of $58,304,083. On October 31, 2023, Emerging Markets Funds had undistributed net investment loss of $(92,669), accumulated net realized loss of $(42,360,200), and unrealized depreciation of $(187,837). The aggregate net assets of International Opportunities Fund immediately following its acquisition of Emerging Markets Fund were $83,623,439.
Information presented in Statement of Operations and changes in net assets reflect only the operations of International Opportunities Fund.
Assuming the acquisition had been completed on April 1, 2023, International Opportunities Fund’s pro forma results of operations for the reporting period would be as follows:
| | |
Net investment income | $1,036,043 | |
Net loss on investments | $(15,294,736 | ) |
Net decrease in net assets from operations | $(17,193,951 | ) |
The combined investment portfolios of the two funds have been managed as a single portfolio since November 1, 2023, the date the acquisition was completed. As a result, it is not practical to separate the amounts of revenue and earnings of Emerging Markets Fund that have been included in International Opportunities Fund’s Statement of Operations for the current fiscal period.
2. Significant Accounting Policies
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.
NOTES TO FINANCIAL STATEMENTS (continued)
Security Valuation
Portfolio securities are valued each business day generally at the last reported sale price on the principal exchange or market on which they are traded. If on a business day there is no such reported sale, the securities generally are valued at the mean between the last reported bid and asked prices. For securities where no such sales have been reported, a Fund may value such securities at the last reported bid price. In the event that there is information suggesting that valuation of such securities based upon bid and/or asked prices may not be accurate, a Fund may value such securities in good faith at fair value in accordance with procedures (the “Valuation Procedures”) established by the Trustees, which may include a determination to value such securities at the last reported sales price. Short-term investments that mature in 60 days or less are valued at amortized cost. Securities quoted in foreign currencies are translated into U.S. dollars based upon the exchange rate at the time of valuation. As a result, changes in the value of those currencies in relation to the U.S. dollar may affect a Fund’s net asset value. Because foreign markets may be open at different times than when the New York Stock Exchange is open for regular trading, the value of a Fund’s shares may change on days when Fund shareholders are not able to buy or sell Fund shares. 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 as determined in good faith using the Valuation Procedures.
The Funds’ Valuation Procedures include fair valuation accounting standards that establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs used to develop the measurements of fair value. 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 a 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 a Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including the type of security, whether the security is new and not yet established in the marketplace, the liquidity of the markets, and other characteristics particular to the security. 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 (with Level 1 being the highest level input and Level 3 being the lowest level input) that is significant to the fair value measurement in its entirety.
NOTES TO FINANCIAL STATEMENTS (continued)
Changes in valuation techniques may result in transfers in changing an investment’s assigned level within the hierarchy.
Valuation Inputs
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each Fund’s net assets as of March 31, 2024:
| | | | | | | | |
| | Quoted Prices In Active Markets | | Significant Other Observable Inputs | Significant Unobservable Inputs | Market Value at March 31, 2024 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
Small Cap | | | | | | | | |
Common Stock* | | $85,394,318 | | $— | | $— | | $85,394,318 |
Short Term Investments | | 1,908,110 | | — | | — | | 1,908,110 |
Total | | $87,302,428 | | $— | | $— | | $87,302,428 |
| | | | | | | | |
Quality | | | | | | | | |
Common Stock* | | $265,131,778 | | $— | | $— | | $265,131,778 |
Depository Receipts | | 54,902,434 | | — | | — | | 54,902,434 |
Short Term Investments | | 4,107,145 | | — | | — | | 4,107,145 |
Total | | $324,141,357 | | $— | | $— | | $324,141,357 |
| | | | | | | | |
Environmental Opportunities | | | | | | | | |
Common Stock* | | $42,291,591 | | $2,535,204 | | $— | | $44,826,795 |
Short Term Investments | | 606,239 | | — | | — | | 606,239 |
Total | | $42,897,830 | | $2,535,204 | | $— | | $45,433,034 |
| | | | | | | | |
Foreign Value | | | | | | | | |
Common Stock* | | $2,841,580,789 | | $206,929,968 | | $4,444 | | $3,048,515,201 |
Warrants | | 135,475 | | — | | — | | 135,475 |
Short Term Investments | | 19,413,405 | | — | | — | | 19,413,405 |
Total | | $2,861,129,669 | | $206,929,968 | | $4,444 | | $3,068,064,081 |
| | | | | | | | |
Foreign Value Small Cap | | | | | | | | |
Common Stock* | | $877,795,380 | | $116,311,358 | | $— | | $994,106,738 |
Short Term Investments | | 20,802,675 | | — | | — | | 20,802,675 |
Total | | $898,598,055 | | $116,311,358 | | $— | | $1,014,909,413 |
| | | | | | | | |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | |
| | Quoted Prices In Active Markets | | Significant Other Observable Inputs | Significant Unobservable Inputs | Market Value at March 31, 2024 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
International Opportunities | | | | | | | | |
Common Stock* | | $77,200,544 | | $9,299,658 | | $— | | $86,500,202 |
Total | | $77,200,544 | | $9,299,658 | | $— | | $86,500,202 |
At March 31, 2024 there was one Level 3 security held by Foreign Value. No Level 3 securities were held in Small Cap, Quality, Environmental Opportunities, Foreign Value Small Cap or International Opportunities Funds. The following is a reconciliation of the Level 3 assets for which unobservable inputs were used to determine fair value for Foreign Value at March 31, 2024.
| |
| Foreign Value Common Stock |
Balances as of 03/31/2023 | $5,294 |
Realized gain (loss) | — |
Change in unrealized appreciation (depreciation) | (850) |
Purchases | — |
Sales | — |
Transfer into Level 3 | — |
Transfer out of Level 3 | — |
Balances as of 03/31/2024 | $4,444 |
*Refer to Schedule of Investments for breakout by industry or country.
•Transfers between Levels are recognized at the end of the reporting period.
•At March 31, 2024 Environmental Opportunities transferred $ 2,535,204 out of Level 1 into Level 2, Foreign Value transferred $189,481,281 out of Level 1 into Level 2. Foreign Value Small Cap Fund transferred $71,318,275 out of Level 1 into Level 2 and International Opportunities transferred $5,960,543 out of Level 1 into Level 2. All transfers were due to foreign market closures at the time of valuation. Small Cap and Quality Funds had no transfers.
NOTES TO FINANCIAL STATEMENTS (continued)
*For each Small Cap and Quality no common stock was labeled as Level 2 as of March 31, 2024. For Environmental Opportunities, Foreign Value, Foreign Value Small Cap and International Opportunities, the aggregate market values of common stock labeled as Level 2 consists of the market value of the common stock labeled as Level 2 in the following industries:
| | | | |
| Environmental Opportunities | Foreign Value | Foreign Value Small Cap | International Opportunities |
Banks | $— | $87,484,426 | $105,447,743 | $5,886,260 |
Chemicals | — | 57,285,913 | — | 501,743 |
Construction & Engineering | 1,359,208 | — | — | — |
Diversified Financial Services | — | 62,159,629 | — | 2,180,448 |
Electrical Equipment | 1,175,996 | — | — | — |
Marine | — | — | 10,863,615 | 731,207 |
| $2,535,204 | $206,929,968 | $116,311,358 | $9,299,658 |
•Market Value of common stock labeled as Level 3 in Foreign Value consists of the market value of common stock labeled as Level 3 in the following industries:
| |
| Foreign Value |
Metals & Mining | $4,444 |
| $4,444 |
No other fund held common stock labeled as Level 3 as of March 31, 2024.
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2024;
| | | | | |
Common Stock | Fair Value March 31, 2024 | Valuation Methodologies | Unobservable Input(1) | Range | Impact to Valuation from a Decrease in Input(2) |
Foreign Value | $4,444 | Market Comparable | Comparability Adjustment | 100% | Decrease |
(1)In determining certain of these inputs, management evaluates a variety of factors, including economic conditions, industry and market developments, and company specific developments.
(2)This column represents the directional change in the fair value of the Level 3 investments that would result from a decrease to the corresponding unobservable input. An increase to the observable input would have the opposite effect.
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.
NOTES TO FINANCIAL STATEMENTS (continued)
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, among other things, 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 with respect to these arrangements to be minimal.
Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financials 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 (i.e., the date the order to buy or sell is executed, which may occur or may not be the settlement date). Dividend income, less 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 are recorded as reductions of cost of investments and/or as realized gains. 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.
Reverse Repurchase Agreements
When a Fund participates in a reverse repurchase transaction, the Funds’ custodian takes possession through the federal book-entry system of those securities of the counterparty collateralizing the counterparty’s obligation under the reverse repurchase transaction. Collateral is marked-to-market daily to confirm that the market value of the collateral remains sufficient to cover the counterparty’s obligation to the participating Fund. The Funds may experience costs and delays in liquidating the collateral if the counterparty or the issuer of the collateral defaults or enters into bankruptcy. At March 31, 2024, there were no outstanding Reverse Repurchase Agreements.
Counterparty Credit Risk
Some transactions in which a Fund may engage involve instruments that are not traded on an exchange. Rather, these instruments are traded between counterparties based on contractual relationships. As a result, a Fund is subject to the risk that the counterparty will not perform obligations under the related contract. Although each Fund expects to enter into transactions only with counterparties believed by the Fund’s investment manager or sub-adviser to be creditworthy, there can be no assurance that a counterparty will not default and that the Fund will not sustain a loss on a transaction as a result.
NOTES TO FINANCIAL STATEMENTS (continued)
Foreign Currency Transactions
All monetary items denominated in foreign currencies are translated into U.S. dollars based on the prevailing exchange rate at the time of valuation. 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
Certain 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. The forward currency contracts are valued at the forward rate and are marked-to-market daily. The change in market value is recorded by a Fund as an unrealized gain or loss. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it is opened and the value at the time it is closed. In addition to the risks of financial investments mentioned above, risks arise from unanticipated movements in currency values. At March 31, 2024 there was no outstanding Forward Foreign Currency Contracts.
Spot Foreign Currency Contracts
Certain Funds may engage in spot foreign currency contracts. A spot foreign currency contract is an obligation to buy or sell with one currency a specified amount of another currency at the prevailing exchange rate for immediate settlement on the spot date, which is generally T + 2. Although, these transactions are instantaneous and may mitigate unwanted foreign exchange exposure, they are subject to movements in the spot exchange rate (i.e., the prevailing exchange rate at the time of the transaction), which can be unpredictable.
At March 31, 2024, there were no outstanding Spot Foreign Currency Contracts.
Securities Lending
During the period covered by this report, no Fund lent any of its securities and the Funds currently are not participating in a securities lending program.
Allocations of Trust Expenses
Trust expenses attributable to a specific Fund are allocated in their entirety to that Fund. Trust expenses that are not attributed to a specific Fund are allocated among all Funds in proportion to the respective net assets of the Funds.
A Fund’s expenses allocable to a specific class of shares of that Fund, such as distribution (12b-1) fees and certain transfer agent and fund administration fees, are allocated to that class. Fund expenses that are not attributable to a specific class, which includes management fees and custody expenses, are allocated to all classes in proportion to the respective net assets of the Fund’s classes. (See Note 3.)
NOTES TO FINANCIAL STATEMENTS (continued)
Income 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 percentages of adjusted net assets at the beginning of the day.
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, with the exception of certain fee waivers and expense Reimbursement Agreements, as well as certain class-specific expenses. Ordinary Shares incur distribution (12b-1) fees while Institutional Shares and R6 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 Fees, Advisory Fees and Other Affiliate Transactions
Management Fees
The Trust has entered into a management agreement (the “Management Agreement”) with Pear Tree Advisors, Inc. (the “Manager”) with respect to each Fund. Compensation of the Manager, for management and administration of the Funds, including selection and monitoring of investment sub-advisers, is paid monthly based on the average daily net asset value of each Fund for the month. The annual stated contractual rate of such fees is 1.00 percent of the average daily total net assets of each of the Funds except for Small Cap, for which there is an annual rate 0.80 percent of the average daily total net assets and Environmental Opportunities and International Opportunities, for which there is an annual rate of 0.90 percent of the average daily total net assets.
Since March 31, 2017 and most recently extended to July 31, 2024, the Manager has agreed, with respect to Foreign Value and Foreign Value Small Cap, to waive a portion of its management fees that it would otherwise receive under the Management Agreement such that the actual aggregate management fee that the Manager would receive during the waiver period for serving as the investment manager of each such Fund would be calculated using an annual rate of 0.90 percent of that Fund’s Net Assets, as such term is defined in the Management Agreement. On and before July 31, 2024 this arrangement only may be terminated by the Trustees in their sole discretion.
Since December 1, 2013, and most recently extended to July 31, 2024, the Manager has agreed to waive a portion of its management fee relating to Quality Fund such that the aggregate management fee to be received by the Manager during the waiver period would be determined using (a) an annual rate of 0.75 percent of Quality Fund’s average daily net assets if the Quality Fund’s average daily net assets are up to and including $125 million, and (b) thereafter, an annual rate of 0.50 percent of Quality Fund’s average daily net assets for amounts in excess of $125 million. On or before July 31, 2024, this arrangement only may be terminated by the Trustees in their sole discretion.
Since August 1, 2023 through September 30, 2024, the Manager has contractually agreed to waive such portion of the management fees that it would otherwise receive under its agreement with Pear Tree Funds for serving as investment manager to International Opportunities such that the aggregate management
NOTES TO FINANCIAL STATEMENTS (continued)
fee that the Manager would receive during the waiver period for serving as the investment manager of International Opportunities would be calculated using an annual rate of 0.80 percent of International Opportunities’ net assets. This fee waiver only may be terminated with the approval of the Trustees.
In addition, under the Management Agreement, the Manager has agreed to reduce its compensation, and if necessary, assume expenses, with respect to Small Cap Fund to the extent that the total expenses of Small Cap Fund individually exceed 2 percent of average net assets for any fiscal year. Small Cap 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 year ended March 31, 2024, aggregate management fees inclusive of fee waivers, from all Funds were $39,486,917, as disclosed on the Statement of Operations.
Since November 15, 2019, and most recently extended to July 31, 2024, the Manager has agreed to reimburse the Foreign Value Fund R6 Shares to the extent necessary for the Fund to maintain the total net annual operating expenses for the class to 0.94%. Reimbursed expenses do not include amounts paid to a third party to assist in reclaiming EU tax overpayments made by the Fund. On and before July 31, 2024 this arrangement only may be terminated by the Trustees in their sole discretion.
Since August 1, 2023 through September 30, 2024, the Manager has contractually agreed to reimburse International Opportunities with respect to Institutional Shares for a portion of International Opportunities’ expenses attributable to Institutional Shares in an amount equal to 0.10 percent per annum, provided that the amount of such reimbursement for such year shall not exceed the amount of the portion of International Opportunities’ adjusted “Annual Fund Operating Expenses” attributable to Institutional Shares for that year, Adjusted “Annual Fund Operating Expenses” for a year means all International Opportunities operating expenses for the year, other than management fees, distribution and services fees, AFFE and extraordinary expenses. This fee waiver only may be terminated with the approval of the Trustees.
Since August 1, 2023 through September 30, 2024, the Manager also has contractually agreed to reimburse such portion of the expenses of International Opportunities Fund attributable to R6 Shares such that “Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement” with respect to R6 Shares, other than extraordinary expenses, is not greater than 0.99 percent of International Opportunities Fund’s net assets attributable to R6 Shares. This expense reimbursement agreement only may be terminated with the approval of the Trustees.
Since June 1, 2020, and most recently extended to July 31, 2024, the Manager has agreed to reimburse the Pear Tree Quality Fund Institutional Shares to the extent necessary for the Fund to maintain the total net annual operating expenses for the class to 0.79%. On and before July 31, 2024 this arrangement only may be terminated by the Trustees in their sole discretion.
Since September 1, 2021, and most recently extended to July 31, 2024, the Manager has agreed to reimburse the Environmental Opportunities Fund Ordinary Shares to the extent necessary for the Fund to maintain the total net annual operating expenses for the class to 1.24%, Institutional Shares to the extent necessary for the Fund to maintain the total net annual operating expenses for the class to 0.99%, and R6 Shares to the extent necessary for the Fund to maintain the total net annual operating expenses for the class to 0.95%. On and before July 31, 2024 this arrangement only may be terminated by the Trustees in their sole discretion.
NOTES TO FINANCIAL STATEMENTS (continued)
Except with respect to Environmental Opportunities, neither the Manager nor any Sub-Advisor may recoup any amount of those fees that have been waived or fund expenses that have been reimbursed by the Manager or any Sub-Adviser.
The Sub-Adviser as investment manager to the predecessor fund to Environmental Opportunities, was entitled to recoup from the predecessor fund for a three-year period certain reimbursed or waived predecessor fund fees and expenses incurred on or before August 31, 2021, the date of the reorganization of the predecessor fund into Environmental Opportunities. In connection with that reorganization, the Manager agreed that the Sub-Adviser may recoup amounts equivalent to the amounts the Sub-Adviser would otherwise have been entitled to recoup from the predecessor fund had the reorganization not occurred, provided that the expenses of Environmental Opportunities do not exceed the limitations set forth in the current fee waiver/expense reimbursement agreement between the Trust and the Manager.
For the year ended March 31, 2024, and for the period August 31, 2021 to March 31, 2023, the Sub-Adviser did not recoup from Environmental Opportunities pursuant to its agreement with the Manager any amount. As of March 31, 2024, the Sub-Adviser is entitled to recoup from Environmental Opportunities the following amounts:
| |
Recoverable through | |
August 31, 2024 | $145,592 |
Otherwise, with respect to Environmental Opportunities, neither the Manager nor the Sub-Adviser may recoup any amount of those fees that have been waived or fund expenses that have been reimbursed by the Manager or the Sub-Adviser.
Sub-Advisory Fees
The Manager has entered into sub-advisory contracts with the following sub-advisers (collectively the “Sub-Advisers”) to provide investment sub-advisory services to the following Funds: Chartwell Investment Partners, LLC (Quality), Essex Investment Management Company, LLC (Environmental Opportunities) and Polaris Capital Management, LLC (Small Cap, Foreign Value, Foreign Value Small Cap and International Opportunities).
For services rendered, the Manager pays to the Sub-Advisers 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. During the year ended March 31, 2024, the fees paid by the Manager to the Sub-Advisers of the Funds were as follows:
| |
Small Cap | 0.25% of the first $100 million and |
| 0.30% of amounts in excess of $100 million but less than $200 million and |
| 0.325% of amounts in excess of $200 million of average daily total net assets |
Quality | A fee equal to the flat annual rate of $90,000 |
Environmental Opportunities | 0.38% of the average daily total net assets |
NOTES TO FINANCIAL STATEMENTS (continued)
| |
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 amounts 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. |
International Opportunities | 0.30% of the first $35 million and |
| 0.35% of amounts in excess of $35 million but less than $200 million and |
| 0.45% of amounts in excess of $200 million of average daily total net assets. |
As of March 31, 2017 and most recently extended through July 31, 2024,(and in the case of International Opportunities, September 30, 2024), the Sub-Adviser to each of Foreign Value, Foreign Value Small Cap, and International Opportunities has contractually agreed to waive its sub-advisory fees such that the aggregate sub-advisory fee that the Sub-Adviser would receive during the waiver period would be calculated using the following annual rates:
| |
Foreign Value | 0.30% of the first $35 million and |
| 0.35% of amounts in excess of $35 million but less than $200 million and |
| 0.45% of amounts in excess of $200 million of average daily total net assets |
Foreign Value Small Cap | 0.30% of the first $35 million and |
| 0.35% of amounts in excess of $35 million but less than $200 million and |
| 0.45% of amounts in excess of $200 million of average daily total net assets. |
International Opportunities | 0.25% of the first $35 million and |
| 0.30% of amounts in excess of $35 million but less than $200 million and |
| 0.40% of amounts in excess of $200 million of average daily total net assets. |
NOTES TO FINANCIAL STATEMENTS (continued)
This sub-advisory fee waiver only may be terminated upon the termination of the corresponding management fee waiver, and the corresponding management fee waiver only may be terminated with the approval of the Trustees.
Distribution Fees, including Fees under 12b-1 Plans
The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plan”), which allows each Fund to pay certain distribution and shareholder servicing activities relating to Ordinary Shares from Fund assets. The Funds also have entered into a distribution agreement (the “Distribution Agreement”) with U.S. Boston Capital Corporation (the “Distributor”). For its services under the 12b-1 Plan and the Distribution Agreement, the Distributor receives the distribution (12b-1) fees, that is, 0.25 percent of the average daily net asset value of the Ordinary Shares of the Funds, payable monthly.
Holders of Institutional Shares and R6 Shares pay no portion of the 12b-1 Plan expenses of the Funds applicable to Ordinary Shares, and neither Institutional Shares nor R6 Shares are subject to any other distribution plan adopted pursuant to Rule 12b-1. Holders of Institutional Shares and R6 Shares also are not entitled to vote on matters involving the 12b-1 Plan applicable to Ordinary Shares.
During the year ended March 31, 2024, the aggregate 12b-1 distribution fees of the Funds were $1,753,179, as disclosed on the Statement of Operations.
Transfer Agent Fees
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 that with respect to Ordinary Shares and Institutional Shares, base fees are payable to the Transfer Agent at an annual rate of 0.16 percent of the average daily total net asset value of each such class, and with respect to R6 Shares, base fees payable at an annual rate of 0.01 percent of the average daily total net asset value of R6 Shares. The Transfer Agent also is entitled to reimbursement of out-of-pocket expenses.
The Transfer Agent has contractually agreed to waive such portion of the base fees that it would otherwise receive for serving as the transfer agent such that the aggregate transfer agent fee with respect to Institutional Shares would be calculated using an annual rate of 0.04 percent of that Fund’s net assets attributable to Institutional Shares, these waivers are effective as follows:
March 31, 2017 through July 31, 2024 for Small Cap, Foreign Value, Foreign Value Small Cap.
June 1, 2017 through July 31, 2024 for Quality.
January 1, 2019 through September 30, 2024 for International Opportunities.
September 1, 2021 through July 31, 2024 for Environmental Opportunities.
Prior to July 31, 2024 (and September 30, 2024, with respect to International Opportunities) these arrangements only may be terminated by the Trustees in their sole discretion.
During the year ended March 31, 2024, the aggregate amount of transfer agent fees paid by the Funds, inclusive of fee waivers, was $2,420,866, as disclosed on the Statement of Operations.
NOTES TO FINANCIAL STATEMENTS (continued)
Fund Administration Fees
Pursuant to an Administration Agreement, the Manager provides certain administrative services to the Funds. During the year ended March 31, 2024, the aggregate amount of fees paid by all Funds pursuant to this agreement was $1,324,286, as disclosed on the Statement of Operations.
The Trustees have approved reimbursement to the Manager for a percentage of the compensation (including benefits) paid by the Manager to the Trust’s Chief Compliance Officer. For the year ended March 31, 2024, the Trust reimbursed the Manager a portion of the Chief Compliance Officer’s compensation in the aggregate amount of $277,728.
Custody and Fund Accounting
UMB Fund Services, LLC serves as a fund administrator of each Fund. UMB Bank, n.a. serves as the custodian of each Fund’s assets.
To the knowledge of the Trust, neither is affiliated with the Manager, any Sub-Adviser, or the Distributor. 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 year ended March 31, 2024, there were no custody credits.
Trustees’ Fees
For the year ended March 31, 2024, each Trustee who was not an “interested person” of the Trust, each, an “Independent Trustee”, as that term is defined in the 1940 Act, received a fee for serving in that role in the aggregate amount of $52,500, and each of the Chairman of the Audit Committee and the Lead Independent Trustee received additional fees for such period in the aggregate amount of $3,000. All fees paid to the Trustees were allocated among the Funds in proportion to their respective net assets. Compensation for the services of the Trustees who was an interested person of the Trust during that period was paid by the Manager
4. Purchases and Sales
During the year ended March 31, 2024, purchases of investment securities, other than U.S. Government obligations and short-term investments for Small Cap, Quality, Environmental Opportunities, Foreign Value, Foreign Value Small Cap, and International Opportunities, were $9,728,812, $123,902,057, $28,434,450, $617,463,409, $201,456,999, and $67,409,736, respectively. Sales of such securities for the Funds were $15,079,976, $56,506,304, $45,274,605, $970,106,189, $291,791,844, and $19,025,744, respectively.
5. Contingent Liability
For the period April 1, 2023 to July 31, 2023, the Trust maintained a joint fidelity bond with the Funds’ Transfer Agent through ICI Mutual Insurance Company (“ICI Mutual”). The annual premium for that policy was allocated among the Funds and the Transfer Agent. Additionally, the Funds had committed $54,174 in cash (i.e., “reserve premium”) to ICI Mutual, with each Fund’s pro rata portion recorded as an asset. Such reserve premium was held by ICI Mutual. This reserve premium will be refunded by August 1, 2028.
NOTES TO FINANCIAL STATEMENTS (continued)
Beginning August 1, 2023, the Trust has maintained a joint fidelity bond with the Transfer Agent through Hartford Fire Insurance Company. The annual premium for that policy currently is allocated among the Funds and the Transfer Agent.
6. Concentration of Risk
The relatively large investments from time to time of, Foreign Value, Foreign Value Small Cap, and International Opportunities, 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 each Fund’s investments and the income they generate, as well as each Fund’s ability to repatriate such amounts.
7. Federal Income Taxes
It is the policy of the Funds to distribute all of their taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code (“IRC”) applicable to regulated investment companies. Therefore, no Federal income tax provision 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.
Certain Funds had capital loss carryovers at March 31, 2024. The accumulated capital losses noted in the table may be available to offset future realized capital gains and thereby reduce future taxable gain distributions.
| | | | | | | | |
| March 31, 2024 | |
| Capital Loss Carry Forward due to Merger Subject to Limitation | | Capital Loss Short Term No Expiration Short Term | | Capital Loss Long Term No Expiration Long Term | | Total Capital Loss | |
Small Cap | $— | | $(294,423 | ) | $— | | $(294,423 | ) |
Quality | — | | — | | — | | — | |
Environmental Opportunities | — | | (5,387,053 | ) | (8,405,247 | ) | (13,792,300 | ) |
Foreign Value | — | | (155,018,032 | ) | (104,035,542 | ) | (259,053,574 | ) |
Foreign Value Small Cap | — | | (23,823,764 | ) | (53,926,380 | ) | (77,750,144 | ) |
International Opportunities | (22,327,588 | ) | (16,929,612 | ) | (2,359,707 | ) | (41,616,907 | ) |
International Opportunities Fund’s acquired losses are subject to an annual Internal Revenue Code section 382 limit of $766,783.
NOTES TO FINANCIAL STATEMENTS (continued)
Each Fund recognizes 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 each Funds’ tax positions, and it 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 2021-2023, or expected to be taken in the Fund’s 2024 tax returns. Each Fund identifies its major tax jurisdictions as 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 with respect to any Fund 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 valuation 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.
| | | | | | | | | | | | | | |
| March 31, 2024 | |
Portfolio | Org Cost | | Undistributed Ordinary Income | | Undistributed Capital Gains | | Late Year Ordinary and Post October Capital Loss Deferrals | | Capital Loss Carryover | | Net Tax Appreciation (Depreciation) | | Total | |
Small Cap | $— | | $833,605 | | $— | | $— | | $(294,423 | ) | $30,897,178 | | $31,436,360 | |
Quality | — | | 2,109,089 | | 8,492,322 | | — | | — | | 75,440,511 | | 86,041,922 | |
Environmental Opportunities | — | | — | | — | | — | | (13,792,300 | ) | (130,134 | ) | (13,922,434 | ) |
Foreign Value | — | | 71,921,805 | | — | | — | | (259,053,574 | ) | 515,988,765 | | 328,856,996 | |
Foreign Value Small Cap | — | | 4,048,078 | | — | | — | | (77,750,144 | ) | 99,597,337 | | 25,895,271 | |
International Opportunities | (28,421 | ) | 238,769 | | — | | — | | (41,616,907 | ) | 10,595,346 | | (30,811,213 | ) |
At March 31, 2024, the tax composition of dividends was as follows:
| | | | | | |
Portfolio | | Ordinary Income | | Long-Term Capital Gains | | Tax Return of Capital |
Small Cap | | $733,722 | | $— | | $— |
Quality | | 2,214,354 | | 9,176,833 | | — |
Environmental Opportunities | | — | | — | | — |
Foreign Value | | 81,532,136 | | — | | — |
Foreign Value Small Cap | | 26,167,793 | | — | | — |
International Opportunities | | 466,173 | | — | | — |
NOTES TO FINANCIAL STATEMENTS (continued)
At March 31, 2023, the tax composition of dividends was as follows:
| | | | | | |
Portfolio | | Ordinary Income | | Long-Term Capital Gains | | Tax Return Of Capital |
Small Cap | | $346,245 | | $6,782,072 | | $— |
Quality | | 1,054,530 | | 21,110,522 | | — |
Environmental Opportunities | | 3,719 | | — | | — |
Foreign Value | | 72,985,010 | | — | | — |
Foreign Value Small Cap | | 49,234,069 | | — | | — |
International Opportunities | | 424,982 | | — | | — |
As of March 31, 2024, the following funds had qualified late-year ordinary losses, which are deferred until fiscal year 2025 for tax purposes.
| |
Portfolio | Late-Year Ordinary Losses |
Small Cap | $ — |
Quality | — |
Environmental Opportunities | — |
Foreign Value | — |
Foreign Value Small Cap | — |
International Opportunities | — |
As of March 31, 2024, the following funds had post-October capital losses which are deferred until April 1, 2024 for tax purposes.
Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.
| |
Portfolio | Post-October Capital Losses |
Small Cap | $ — |
Quality | — |
Environmental Opportunities | — |
Foreign Value | — |
Foreign Value Small Cap | — |
International Opportunities | — |
Accounting principles generally accepted in the United States require that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on a Fund’s net assets or a Fund’s net asset value per share. For the year ended March 31, 2024, permanent differences in book and tax accounting have been reclassified to shares of beneficial interest and distributable earnings for the Small Cap, Quality, Environmental Opportunities, Foreign Value, Foreign Value Small Cap, and International Opportunities Funds for $0, $0, $64,537, $0, $0, and $42,174,712 respectively.
NOTES TO FINANCIAL STATEMENTS (continued)
Permanent differences primarily relate to net operating losses, return of capital distributions by real estate investment trusts (REITs) and non-REIT securities, foreign currency reclasses, adjustments for sale of shares in passive foreign investment corporations (PFICs), re-designations of distributions and foreign and capital gains tax reclass.
Federal Tax Information (unaudited)
Designation Requirements at March 31, 2024
| |
| Qualified Dividend Income Percentage |
Small Cap | 100.00% |
Quality | 100.00% |
Essex Environmental Opportunities | 0.00% |
Foreign Value | 100.00% |
Foreign Value Small Cap | 100.00% |
International Opportunities | 100.00% |
The Funds may elect under section 853 of the Internal Revenue Code to pass through foreign tax credits to its shareholders for the year ended March 31, 2024.
The total amount of foreign taxes that is expected to pass through to shareholders and the respective foreign source income are as follows:
| | | |
| Foreign Tax Credit | | Foreign Source Income |
Foreign Value | $8,387,521 | | $80,355,841 |
Foreign Value Small Cap | 2,457,564 | | 25,459,985 |
International Opportunities | 163,726 | | 1,084,696 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Trustees of the Pear Tree Funds
Lincoln, Massachusetts 01773
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the Pear Tree Polaris Small Cap Fund, Pear Tree Quality Fund, Pear Tree Essex Environmental Opportunities Fund, Pear Tree Polaris Foreign Value Fund, Pear Tree Polaris Foreign Value Small Cap Fund, and Pear Tree Polaris International Opportunities Fund (the “Funds”), each a series of the Pear Tree Funds (the “Trust”), including the schedules of investments, as of March 31, 2024, the related statements of operations, the statements of changes in net assets, and financial highlights for each of the periods indicated in the table below, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of March 31, 2024, the results of their operations, the changes in their net assets, and their financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
| | | | | | |
Individual Funds constituting Pear Tree Funds | | Statement of operations | | Statements of changes in net assets | | Financial highlights |
Pear Tree Polaris Small Cap Fund, Pear Tree Quality Fund, Pear Tree Polaris Foreign Value Fund, Pear Tree Polaris Foreign Value Small Cap Fund, Pear Tree Polaris International Opportunities Fund | | For the year ended March 31, 2024 | | For each of the two years in the period ended March 31, 2024 | | For each of the five years in the period ended March 31, 2024 |
Pear Tree Essex Environmental Opportunities Fund | | For the year ended March 31, 2024 | | For each of the two years in the period ended March 31, 2024 | | For the year ended August 31, 2021, 7-months period ending March 31, 2022, and for each of the two years in the period ended March 31, 2024 |
The financial highlights for each of the two years in the period ended August 31, 2020 have been audited by other auditors, whose report dated October 30, 2020 expressed unqualified opinion on such statement of changes in net assets and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2007.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
May 24, 2024
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (continued)
INFORMATION FOR SHAREHOLDERS
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-PORT. The Funds’ Forms N-PORT (and formerly Forms N-Q) are available on the SEC’s website at www.sec.gov. 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.peartreefunds.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, 2023 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.
TRUSTEES AND OFFICERS (Unaudited)
The tables below identify the current Trustees and officers of the Trust, their ages, their present positions with the Trust, terms of office with the Trust and length of time served, principal occupations over at least the last five years and other directorships/trusteeships held. Each Trustee and officer holds office for an indefinite term until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The mailing address of each of the Trustees and Officers of the Trust is 55 Old Bedford Road, Suite 202, Lincoln, Massachusetts 01773.
Messrs. Bulbrook, Dunlap and Marshall are members of the Funds’ Audit Committee. Mr. Marshall is the Chair of the Audit Committee. The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Fund Trustees and is available without charge, upon request. To obtain a free copy of the current SAI, please access the Funds’ web site at www.peartreefunds.com or call shareholder services at 1-800-326-2151.
Trustees who are not Interested Persons of the Trust
The following individuals are Trustees of the Trust (each, a “Trustee”), but not “interested persons” of the Trust, as that term is defined in the 1940 Act.
| | | | | |
Name and Age | Position Held With Trust | Term of Office/ Length of Time Served | Principal Occupation(s) during Past Five Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee in Public Companies |
John M. Bulbrook (Born: July 1942) | Trustee | Indefinite Term (1985 to present) | CEO and Treasurer, John M. Bulbrook Insurance Agency, Inc. (d/b/a Bulbrook/Drislane Brokerage) (distributor of financial products, including insurance) (1984–Present) | 6 | None |
William H. Dunlap (Born: March 1951) | Trustee | Indefinite Term (October 2006 to present) | President, New Hampshire Historical Society, (Feb. 2010–Present); Principal, William H. Dunlap & Company (consulting firm) (2005–Present); Director, Merrimack County Savings Bank (2005–March 2023); Trustee, New Hampshire Mutual Bancorp (2013– March 2023) | 6 | None |
Clinton S. Marshall (Born: May 1957) | Trustee | Indefinite Term (April 2003 to present) | Principal, Coastal CFO Solutions, outsource firm offering CFO solutions to businesses (1998– Present); CFO, Fore River Company (2002–Present) | 6 | None |
TRUSTEES AND OFFICERS (Unaudited) (continued)
Trustees and Officers who are Interested Persons of the Trust
The following individuals are Trustees or officers of the Trust who are “interested persons” of the Trust, as that term is defined in the 1940 Act.
| | | | | |
Name and Age | Position Held With Trust | Term of Office/ Length of Time Served | Principal Occupation(s) during Past Five Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee/ Officer in Public Companies |
Willard L. Umphrey* (Born: July 1941) | Trustee, President, Chairman (1985 to present) | Indefinite Term (1985 to present) | Director, U.S. Boston Capital Corporation; President, Pear Tree Advisors, Inc. | 6 | U.S. Boston Corporation; U.S. Boston Asset Management Corporation; Pear Tree Advisors, Inc.; Pear Tree Partners Management LLC; Unidine Corporation; USB Corporation; U.S. Boston Insurance Agency, Inc.; U.S. Boston Capital Corporation; Woundchek Laboratories |
Leon Okurowski (Born: December 1942) | Vice President, Treasurer (1985 to present) | (1985 to present) | Director and Vice President, U.S. Boston Capital Corporation; Treasurer, Pear Tree Advisors, Inc. | N/A | Everest USB Canadian Storage, Inc.; Pear Tree Advisors, Inc.; U.S. Boston Corporation; U.S. Boston Asset Management Corporation; USB Corporation; USB Everest Management, LLC; USB Everest Storage LLC; U.S. Boston Insurance Agency, Inc.; U.S. Boston Capital Corporation; Woundchek Laboratories |
TRUSTEES AND OFFICERS (Unaudited) (continued)
| | | | | |
Name and Age | Position Held With Trust | Term of Office/ Length of Time Served | Principal Occupation(s) during Past Five Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee/ Officer in Public Companies |
Deborah A. Kessinger (Born: May 1963) | Assistant Clerk and Chief Compliance Officer | (April 2005 to Present) | Senior Counsel (since 9/2004), President (since 8/2007) and Chief Compliance Officer (since 12/2005), U.S. Boston Capital Corporation; Senior Counsel (since 9/2004) and Chief Compliance Officer (since 10/2006), Pear Tree Advisors, Inc.; Compliance Consultant, Broadridge Financial Solutions (formerly Forefield, Inc.) (software provider) (2007 to 2016) | N/A | None |
Diane Hunt (Born: February 1962) | Assistant Treasurer | (June 2010 to Present) | Controller (Since 3/2010) Pear Tree Advisors, Inc.; Accountant (Since 1984) U.S. Boston Capital Corporation | N/A | None |
Eric Levine (Born: June 1984) | Clerk | (May 2024 to Present) | Legal Product Manager, Pear Tree Advisors, Inc.; Compliance Officer, Cantella & Co., Inc. (2/2018 – 7/2018); Compliance and Operations Associate, Arthur W. Wood Company (6/2016 –2/2018) | N/A | None |
John Hunt (Born: July 1958) | Assistant Clerk | (February 2016 to Present) | Partner, Sullivan & Worcester LLP (4/2016 to present) | N/A | None |
*Trustee has been determined to be an “Interested Trustee” by virtue of, among other things, affiliation with one or more of the Funds’ investment advisor, Pear Tree Advisors, Inc., and the Funds’ distributor, U.S. Boston Capital Corporation.
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT
Operation of the Liquidity Risk Management Program
This section describes operation and effectiveness of the Liquidity Risk Management Program (the “Liquidity Program”) established by Pear Tree Funds in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Trustees have appointed the Trust’s Assistant Treasurer to serve as Administrator of the Liquidity Program, subject to the oversight of the Trustees. Each Fund’s sub-adviser (a “Sub-Adviser”) executes the day-to-day investment management and security-level activities of the Fund in accordance with the requirements of the Liquidity Program, subject to the supervision of the Administrator and the Trustees.
The Administrator, among other things, (a) reviews the day-to-day operations of the Liquidity Program, (b) periodically reviews and approves liquidity classifications, (c) reviews periodic testing and determinations, as applicable, and (d) reviews other Liquidity Program related material. The Administrator also conducts periodic quantitative and qualitative assessments of each Sub-Adviser to monitor investment performance issues, risks and trends, including potential liquidity and valuation issues. In performing her functions, the Administrator relies on AbelNoser to provide certain data and other services. AbelNoser is not an affiliate of the Administrator, the Trust, the Fund’s investment manager or any Sub-Adviser.
At a meeting held on February 15, 2024, the Administrator provided to the Trustees a written report that addressed the Administrator’s assessment of the adequacy and effectiveness of the implementation and operation of the Liquidity Program and any material changes to the Liquidity Program. The report, which covered the period January 1, 2023 through December 31, 2023, included the Administrator’s assessment of important aspects of the Liquidity Program. The report also would have covered material liquidity matters that occurred or were reported during this period applicable to a Fund, had any occurred, and the Administrator’s actions to address such matters.
Operation and Effectiveness
Based on the review and assessment conducted by the Administrator, the Administrator determined that the Liquidity Program was operating as designed, that is, in a manner that is adequate and effective at assessing the liquidity risk of each Fund, and that none of the Funds experienced a liquidity problem, notwithstanding the recent market volatility. In addition, the Administrator had recommended that the “highly liquid investment minimum” and the “illiquid percentage” for each Fund remain unchanged, that is, at 40 percent and 15 percent , respectively.
| |
Manager | Pear Tree Advisors, Inc., 55 Old Bedford Road, Suite 202, Lincoln, MA 01773 |
Subadvisers | Chartwell Investment Partners LLC, 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312 Essex Investment Management Company, LLC, 125 High Street, Boston, MA 02110 Polaris Capital Management, LLC, 121 High Street, Boston, MA 02110 |
Distributor | U.S. Boston Capital Corporation, 55 Old Bedford Road, Suite 202, Lincoln, MA 01773 |
Custodian | UMB Bank n.a., 928 Grand Boulevard, 5th Floor, Kansas City, Missouri 64106 |
Fund Accountant | UMB Fund Services, Inc., 235 West Galena Street, Milwaukee, Wisconsin 53212 |
Transfer Agent | Pear Tree Institutional Services, 55 Old Bedford Road, Suite 202, Lincoln, MA 01773 |
Independent Registered Public Accounting Firm | Tait, Weller & Baker LLP, Two Liberty Place, 50 South 16th Street, Suite 2900 Philadelphia, PA 19102 |
Legal Counsel | Sullivan & Worcester LLP, One Post Office Square 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 |
55 Old Bedford Road
Suite 202
Lincoln MA 01773
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© 2024 U.S. Boston Capital Corporation
Distributor of the Pear Tree Funds
Member, FINRA/SIPC
ITEM 1. (b) Not applicable for report period.
ITEM 2. Code of Ethics
| (a) | As of the end of the period covered by this Form N-CSR, Pear Tree Funds has adopted a code of ethics (as defined in Item 2(b) of Form N-CSR) that applies to the registrant’s principal executive officer and principal financial officer. |
| (c) | There have been no amendments to the Pear Tree Fund’s Code of Ethics during the period covered by this report. |
| (d) | There have been no waivers to the Pear Tree Fund’s Code of Ethics during the period covered by this report. |
| (f)(1) | One copy of the Code of Ethics is being filed under Item 12(a) hereto. |
| (f)(3) | The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-326-2151. |
ITEM 3. Audit Committee Financial Expert
Pear Tree Fund’s Trustees have determined that Mr. Clinton S. Marshall is an “audit committee financial expert,” as defined in Item 3(b) of Form N-CSR. Mr. Marshall is “independent” under the standards set forth in Item 3(a)(2) of Form N-CSR.
ITEM 4. Principal Accountant Fees and Services
(a) - (d) The following chart shows the aggregate fees billed in each of the last two fiscal years for services rendered by the registrant’s principal accountant, Tait, Weller and Baker, LLP (“Tait Weller”).
| | FY 2023 | FY 2024 |
Audit Fees* | Tait Weller | $159,500 | $139,250 |
Audit-Related Fees** | Tait Weller | $0 | $0 |
Tax Fees*** | Tait Weller | $24,800 | $21,300 |
All Other Fees**** | Tait Weller | $0 | $0 |
| * | “Audit Fees” are fees associated with professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements. |
| ** | “Audit-Related Fees” are fees associated with assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under “Audit Fees.” |
| *** | “Tax Fees” are fees associated with professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Included with general tax compliance, advice and planning provided by Tait Weller to Pear Tree Funds was a review of Pear Tree Funds’ federal tax filings. |
| **** | “All Other Fees” are fees associated with products and services provided by the principal accountant, other than the services reported as “Audit Fees,” “Audit-Related Fees,” or “Tax Fees.” |
| (e)(1) | To the extent required by applicable law, pre-approval by the Audit Committee of the Trustees is needed for: |
(i) All audit and permissible non-audit services rendered to the Pear Tree Funds; and
(ii) All permissible non-audit services rendered to Pear Tree Advisors, Inc. if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis.
The Audit Committee may delegate the pre-approval of audit and permissible non-audit services and the related fees to the Chairman of the Audit Committee. Any such member’s decision to pre-approve audit and/or non-audit services and related fees shall be presented to the full Audit Committee, solely for informational purposes, at their next scheduled meeting.
| (e)(2) | No services in the past two fiscal years of the registrant were approved by the Audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X. |
| (g) | The following chart shows the aggregate non-audit fees billed by Tait Weller for services rendered to the registrant and the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, for each of the last two fiscal years of the registrant. |
| | 2023 | 2024 |
Fees | Tait Weller | $41,200 | $42,000 |
ITEM 5. Audit Committee of Listed Registrants
Not applicable.
ITEM 6. Investments
| (a) | Included as part of report to shareholders under Item 1. |
ITEM 7. Disclosure of Proxy Voting Policies and Procedures for Open-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 1940 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. |
| (c) | There has been no change in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the 1940 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
ITEM 13. Exhibits
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SIGNATURES
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.
Pear Tree Funds
By: | /s/ Willard L. Umphrey | |
| Willard L. Umphrey, President |
Date: May 30, 2024
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: May 30, 2024
By: | /s/ Leon Okurowski | |
| Leon Okurowski, Treasurer |
Date: May 30, 2024