PEAR TREE FUNDS
Pear Tree Polaris Small Cap Fund
Pear Tree Quality Fund
Pear Tree PanAgora Emerging Markets Fund
Pear Tree PanAgora Risk Parity Emerging Markets Fund
Pear Tree Polaris Foreign Value Fund
Pear Tree Polaris Foreign Value Small Cap Fund
ANNUAL REPORT
March 31, 2017
TABLE OF CONTENTS | ||
President's Letter | 1 | |
Fund Expenses | 2 | |
Portfolio Manager Commentaries | 4 | |
Pear Tree Polaris Small Cap Fund | 4 | |
Pear Tree Quality Fund | 7 | |
Pear Tree PanAgora Emerging Markets Fund | 9 | |
Pear Tree PanAgora Risk Parity Emerging Markets Fund | 11 | |
Pear Tree Polaris Foreign Value Fund | 13 | |
Pear Tree Polaris Foreign Value Small Cap Fund | 16 | |
Schedules of Investments | 20 | |
Pear Tree Polaris Small Cap Fund | 20 | |
Pear Tree Quality Fund | 24 | |
Pear Tree PanAgora Emerging Markets Fund | 28 | |
Pear Tree PanAgora Risk Parity Emerging Markets Fund | 35 | |
Pear Tree Polaris Foreign Value Fund | 49 | |
Pear Tree Polaris Foreign Value Small Cap Fund | 53 | |
Statements of Assets and Liabilities | 58 | |
Statements of Operations | 62 | |
Statements of Changes in Net Assets | 64 | |
Financial Highlights | 70 | |
Notes to Financial Statements | 84 | |
Report of Independent Registered Public Accounting Firm | 107 | |
Information for Shareholders | 108 | |
Privacy Notice | ||
Trustees and Officers | 109 | |
Service Providers | Inside back cover |
This report must be preceded or accompanied by a current Pear Tree Funds prospectus for individuals who are not current shareholders of the Funds. If you are not a shareholder of a Pear Tree Fund, you should read the prospectus carefully before investing because it contains more complete information on the Pear Tree Funds' investment objectives, risks, charges and expenses. Please consider this information carefully. For a prospectus and other information, visit www.peartreefunds.com or call (800) 326-2151.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither Pear Tree Funds nor U.S. Boston Capital Corporation is a bank.
PEAR TREE FUNDS
Dear Fellow Shareholder,
We are pleased to provide you with the Pear Tree Funds' Annual Report for the twelve-month period ended March 31, 2017 and to update you on recent market conditions and the performance of the Pear Tree Funds.
For current performance information, please visit our website at www.peartreefunds.com. We thank you for your continued confidence in the Pear Tree Funds. Please feel free to e-mail us at feedback@peartreefunds.com or call us at 800-326-2151 with any questions or for assistance on your account.
Sincerely,
Willard Umphrey
President and Chairman
Any statements in this report regarding market or economic trends or the factors influencing the historical or future performance of the Pear Tree Funds are the views of the Funds' Investment Manager and 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 subadvisors to the Funds disclaim any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any Pear Tree Fund. Any references to specific securities are not recommendations of such securities and may not be representative of any Pear Tree Fund's current or future investments.
Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
1
PEAR TREE FUNDS
FUND EXPENSES
We believe it's important for Fund shareholders to have a clear understanding of fund expenses and the impact expenses have on investment returns. The following is important information about each Fund's Expense Example, which appears below.
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution (12b-1) fees (on Ordinary Shares) and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
Actual Expenses
The first line for each Share Class for each Fund provides information about actual account returns and actual expenses. You may use the information in this line, together with the amount you invested for that Fund and Share Class, to estimate the expenses that you paid over the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000, then multiply the result by the number under the heading "Expenses Paid During the Period."
Hypothetical Example for Comparison Purposes
The second line for each Share Class for each Fund shows you hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return.
The hypothetical account values and hypothetical expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information 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.
2
PEAR TREE FUNDS
Expense Example for the 6 months ended March 31, 2017
For Ordinary and Institutional Shares, these examples are based on $1,000 being invested at the beginning of the period and held for the entire period from October 1, 2016 to March 31, 2017.
Beginning | Ending | Annualized | Expenses Paid1 | ||||
Total Return | Account Value | Account Value | Expense | 10/1/2016- | |||
Pear Tree Fund | Share Class | Description | 10/1/16 | 3/31/2017 | Ratio | 3/31/2017 | |
Small Cap | Ordinary | Actual | $1,000.00 | $1,125.30 | 1.35% | $7.17 | |
Hypothetical | $1,000.00 | $1,018.19 | 1.35% | $6.81 | |||
Institutional | Actual | $1,000.00 | $1,127.00 | 1.10% | $5.84 | ||
Hypothetical | $1,000.00 | $1,019.44 | 1.10% | $5.55 | |||
Quality | Ordinary | Actual | $1,000.00 | $1,077.60 | 1.31% | $6.77 | |
Hypothetical | $1,000.00 | $1,018.41 | 1.31% | $6.58 | |||
Institutional | Actual | $1,000.00 | $1,078.70 | 1.06% | $5.47 | ||
Hypothetical | $1,000.00 | $1,019.67 | 1.06% | $5.32 | |||
Emerging Markets | Ordinary | Actual | $1,000.00 | $1,042.30 | 1.06% | $5.42 | |
Hypothetical | $1,000.00 | $1,019.63 | 1.06% | $5.36 | |||
Institutional | Actual | $1,000.00 | $1,044.10 | 0.80% | $4.07 | ||
Hypothetical | $1,000.00 | $1,020.95 | 0.80% | $4.02 | |||
Risk Parity | Ordinary | Actual | $1,000.00 | $1,033.10 | 1.32% | $6.70 | |
Emerging Markets | Hypothetical | $1,000.00 | $1,018.34 | 1.32% | $6.65 | ||
Institutional | Actual | $1,000.00 | $1,034.50 | 1.05% | $5.34 | ||
Hypothetical | $1,000.00 | $1,019.68 | 1.05% | $5.30 | |||
Foreign Value | Ordinary | Actual | $1,000.00 | $1,075.90 | 1.53% | $7.90 | |
Hypothetical | $1,000.00 | $1,017.32 | 1.53% | $7.68 | |||
Institutional | Actual | $1,000.00 | $1,076.70 | 1.28% | $6.61 | ||
Hypothetical | $1,000.00 | $1,018.57 | 1.28% | $6.42 | |||
Foreign Value | Ordinary | Actual | $1,000.00 | $1,091.20 | 1.55% | $8.07 | |
Small Cap | Hypothetical | $1,000.00 | $1,017.21 | 1.55% | $7.79 | ||
Institutional | Actual | $1,000.00 | $1,093.40 | 1.30% | $6.77 | ||
Hypothetical | $1,000.00 | $1,018.47 | 1.30% | $6.53 |
For R6 Shares, the examples reflecting Actual Returns are based on $1,000 being invested on February 7, 2017 (the first day that R6 Shares were publicly available) and held for the entire period, that is, February 7, 2017 to March 31, 2017. The examples reflecting Hypothetical Returns are based on $1,000 being invested at October 1, 2016 (the first day of the second semi-annual period of the Funds' fiscal year) and held for the entire period, that is, October 1, 2016 to March 31, 2017.
Beginning | Ending | Annualized | Expenses | |||
Total Return | Account Value | Account Value | Expense | Paid for | ||
Pear Tree Fund | Share Class | Description | (period begins) | (period ends) | Ratio | period |
$1,000.00 | $1,034.00 | $1.662 | ||||
Foreign Value | R6 | Actual | (2/7/2017) | (3/31/2017) | 1.14% | |
$1,000.00 | $1,019,23 | $5.751 | ||||
Hypothetical | (10/1/2016) | (3/31/2017) | 1.14% | |||
$1,000.00 | $1,063.00 | $1.682 | ||||
Foreign Value | R6 | Actual | (2/7/2017) | (3/31/2017) | 1.14% | |
Small Cap | $1,000.00 | $1,019,22 | $5.761 | |||
Hypothetical | (10/1/2016) | (3/31/2017) | 1.14% |
1 | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
2 | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 52/365 (to reflect the period). |
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PEAR TREE POLARIS SMALL CAP FUND
INVESTMENT PROFILEAll Data as of March 31, 2017
Fund Information
Net Assets Under Management | $116.5 Million | |
Number of Portfolio Holdings | 51 | |
Average Price to Book Ratio | 2.2 | |
Average Price to Earnings Ratio | 20.3 | |
Ordinary | Institutional | |
Total Expense Ratio (Gross)* | 1.47% | 1.22% |
Total Expense Ratio (Net)* | 1.47% | 1.10% |
Ticker Symbol | USBNX | QBNAX |
* | per prospectus dated February 6, 2017 as supplemented April 6, 2017. See financial highlights for total expense ratios for the fiscal year ended March 31, 2017. |
Investment Commentary
(prepared by Polaris Capital Management, LLC, sub-adviser to Pear Tree Polaris Small Cap Fund)
For the fiscal year ended March 31, 2017, the Pear Tree Polaris Small Cap Fund's Ordinary Shares (the "Fund") underperformed its bench-mark, the Russell 2000 Index (the "Index"). The Fund had a 1-year return of 23.36% at net asset value compared to 26.22% for the Index.
Market Conditions and Investment Strategies
Proposed corporate tax reductions and regulatory relief for banks, and the Federal Reserve's decision to raise rates, led to a banner year for U.S. banking stocks. Nearly all portfolio holdings in financials had double-digit gains, led by BNC Bancorp, Bryn Mawr Bank Corp., Central Pacific Financial and Brookline Bancorp. Ameris Bancorp reported record net income, greater loan activity, decreases in non-performing assets and growth in the retail mortgage, warehouse lending and SBA business lines. The bank also launched a joint venture with US Premium Finance, one of the nation's largest property/casualty insurance premium finance companies. Rebounding oil prices prompted demand for Greenbrier Companies oil-transporting railcars. Electronic components manufacturer Bel Fuse Inc. solidified the value of its Power-One acquisition, recording profitability on greater efficiencies and new customers. Phibro Animal Health posted solid earnings, attributable to resilient sales and healthy margins in the core feed additives business. Other notable contributors included EPR Properties, Ferro Corp and KForce Inc.
Detractors were largely relegated to the Consumer Discretionary sector, including National CineMedia, Motorcar Parts of America and Entravision Communications. To obtain antitrust approval for the AMC/Carmike Cinemas acquisition, AMC reduced its stake in National CineMedia. This news triggered a stock price decline. In mid-March 2017, the exhibition ad sales firm announced new deals with five exhibition chains expected to offset AMC losses. Motorcar Parts of America suffered through multiple quarters of slower U.S. auto sales, negatively impacting fiscal year performance. The company turned the tide in the first quarter of 2017, delivering record quarterly results, with revenues up 20% on the launch of new aftermarket products. Entravision, a media company focused on the U.S. Hispanic and Mexican markets, saw lesser demand for its services, compounded by weaker advertising spending atypical of a presidential election year.
Portfolio Changes
During the fiscal year, we exited 16 companies across various industries, including Papa John's, IMAX, Luxoft Holding and Ambarella Inc. Most were sold as valuations reached our target levels; others were replaced for more fundamentally attractive stocks. Share prices rose after Virgin America, Astoria Financial and Southwest Bancorp became acquisition targets; we capitalized on M&A as a prime opportunity to sell. Proceeds from these sales were used to purchase aforementioned Bel Fuse Inc. and Phibro Animal Health; VWR Corporation, a distributor of lab products; healthcare IT company, Computer Programs & Systems, Inc.; Exco Technologies Ltd, a Canadian automotive parts supplier; and two companies based in Puer to Rico.
4
PEAR TREE POLARIS SMALL CAP FUND
A Look Ahead
U.S. small cap stocks advanced markedly in 2016, as the Russell 2000 Index returned 21.31%. Al-though the heady 2016 pace has slackened, we believe that the current economic climate and the Administration's pro-business agenda will prove a boon to small-cap companies in 2017. We have already identified a number of inexpensive companies in defensive sectors, namely Consumer Staples and Industrials. Modest portfolio changes will unfold in the months ahead, as we seek to enhance the valuation profile of the Fund and achieve admirable long-term results.
The Fund's lead portfolio manager is Bernard R. Horn, Jr., of Polaris Capital Management, LLC
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PEAR TREE POLARIS SMALL CAP FUND
Top 10 Holdings | Sector Allocation | |||
Percentage of total net assets | 24.8% | Percentage of total net assets | 100.0% | |
Ameris Bancorp | 3.5% | Financials | 27.0% | |
EPR Properties | 2.7% | Industrials | 15.9% | |
BNC Bancorp | 2.6% | Consumer Discretionary | 15.4% | |
Ferro Corporation | 2.4% | Information Technology | 11.8% | |
Kforce, Inc. | 2.4% | Health Care | 9.6% | |
Entravision Communications Corporation, Class A | 2.3% | Real Estate | 9.5% | |
Computer Programs and Systems, Inc. | 2.3% | Materials | 4.0% | |
Natus Medical, Inc. | 2.2% | Utilities | 2.1% | |
Motorcar Parts of America, Inc. | 2.2% | Energy | 1.5% | |
Central Pacific Financial Corporation | 2.2% | CASH + other assets (net) | 3.2% |
There is no guarantee that such securities will continue to be viewed
favorably or held in the Fund's portfolio.
favorably or held in the Fund's portfolio.
Value of a $10,000 Investment
Pear Tree Polaris Small Cap. (PTSC) Ordinary Shares vs.
S&P 500 Index
S&P 500 Index
Average Annual Total Returns
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinary Shares | 1.11% | 12.53% | 23.36% | 9.45% | 3.55% | 9.93% | 08/03/1992 |
Institutional Shares1 | 1.18% | 12.70% | 23.71% | 9.73% | 3.81% | 9.42% | 01/06/1993 |
Russell 20002 | 2.47% | 11.52% | 26.22% | 12.35% | 7.12% | 9.76% |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution 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 08/3/92.
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.
6
PEAR TREE QUALITY FUND
INVESTMENT PROFILE
All Data as of March 31, 2017
Fund Information
Net Assets Under Management | $119.5 Million | |
Number of Portfolio Holdings | 63 | |
Average Price to Book Ratio | 6.0 | |
Average Price to Earnings Ratio | 19.1 | |
Ordinary | Institutional | |
Total Expense Ratio (Gross)* | 1.55% | 1.30% |
Total Expense Ratio (Net)* | 1.30% | 1.05% |
Ticker Symbol | USBOX | QGIAX |
* | per prospectus dated February 6, 2017 as supplemented April 6, 2017. See financial highlights for total expense ratios for the fiscal year ended March 31, 2017. |
Investment Commentary
For the fiscal year ended March 31, 2017, Pear Tree Quality Fund's Ordinary Shares (the "Fund") underperformed its benchmark, the S&P 500 (the "Index"). The Fund achieved a return of 14.04% at net asset value compared to 17.17% for the Index.
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 adviser, at the direction of the investment manager, rebalances the Fund's portfolio to correspond to the Target Portfolio's most
recent holdings as publicly reported. From April 1, 2016 to March 31, 2017, the Fund's Ordinary Shares, when compared to the Target Portfolio, had a tracking error of 0.17.
recent holdings as publicly reported. From April 1, 2016 to March 31, 2017, the Fund's Ordinary Shares, when compared to the Target Portfolio, had a tracking error of 0.17.
Over the previous 12 months, the Health Care sector was the largest positive contributor to the Fund's performance due to stock selection. The Energy, Industrials, Materials, Real Estate, Telecommunication Services and Utilities sectors also contributed to performance.
The greatest detractor from performance came from the Financial sector where zero exposure to the sector negatively affected relative performance. Other large detractors were sector selection in Consumer Staples and stock selection in the Information Technology sector.
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 period ending March 31, 2017, the Fund rebalanced its holdings four times in response to quarterly holdings reports filed by the Target Portfolio. The rebalances resulted in the sale of 19 positions. Also as a result of the rebalances, the Fund opened new positions in seven companies; three Information Technology companies, two Health Care companies, one Energy company and one Financial company.
A Look Ahead
For the foreseeable future, the Fund's investment manager expects the Target Portfolio to remain the same. For more information on the selection of the Target Portfolio(s), please see the Fund's Prospectus.
Fund trading execution is overseen by Robert von Pentz, CFA of Columbia Partners, L.L.C. Investment Management
7
PEAR TREE QUALITY FUND
Top 10 Holdings | Sector Allocation | |||
Percentage of total net assets | 43.6% | Percentage of total net assets | 100.0% | |
Microsoft Corporation | 7.0% | Information Technology | 42.50% | |
Oracle Corporation | 5.4% | Health Care | 19.20% | |
Apple, Inc. A | 5.3% | Consumer Staples | 17.50% | |
Alphabet Inc. | 4.1% | Industrials | 8.70% | |
Cisco Systems, Inc. | 4.1% | Consumer Discretionary | 5.10% | |
Johnson & Johnson | 4.0% | Financials | 3.80% | |
UnitedHealth Group, Inc. | 4.0% | Materials | 1.70% | |
American Express Company | 3.8% | Energy | 0.00% | |
3M Company | 3.0% | Telecommunicaiton Services | 0.00% | |
Alphabet Inc. C | 2.9% | Utilities | 0.00% | |
CASH + other assets (net) | 1.50% |
There is no guarantee that such securities will continue to be viewed
favorably or held in the Fund's portfolio.
favorably or held in the Fund's portfolio.
Value of a $10,000 Investment
Pear Tree Quality (PTQ) Ordinary Shares vs
S&P 500 Index
S&P 500 Index
Average Annual Total Returns
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinar y Shares | 9.30% | 7.76% | 14.04% | 11.12% | 4.21% | 9.18% | 05/06/85 |
Institutional Shares1 | 9.32% | 7.87% | 14.30% | 11.44% | 4.41% | 8.03% | 03/25/91 |
S & P 5002 | 6.07% | 10.12% | 17.17% | 13.30% | 7.51% | 10.80% |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution 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 05/29/85. S&P 500 Index is a registered mark of Standard & Poor's.
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 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.
8
PEAR TREE PANAGORA EMERGING MARKETS FUND
INVESTMENT PROFILE
All Data as of March 31, 2017
Fund Information
Net Assets Under Management | $110.7 Million | |
Number of Portfolio Holdings | 148 | |
Average Price to Book Ratio | 1.7 | |
Average Price to Earnings Ratio | 12.2 | |
Ordinary | Institutional | |
Total Expense Ratio (Gross)* | 2.06% | 1.81% |
Total Expense Ratio (Net)* | 1.52% | 1.27% |
Ticker Symbol | QFFOX | QEMAX |
* | per prospectus dated February 6, 2017 as supplemented April 6, 2017. See financial highlights for total expense ratios for the fiscal year ended March 31, 2017. |
Investment Commentary
(prepared by PanAgora Asset Management, Inc., sub-adviser to Pear Tree PanAgora Emerging Markets Fund)
For the fiscal year ended March 31,2017, Pear Tree PanAgora Emerging Markets Fund's Ordinary Shares (the "Fund"), formerly known as the Pear Tree PanAgora Dynamic Emerging Markets Fund, underperformed its benchmark, the MSCI Emerging Markets Index (the "Index"). The Fund achieved a return of 9.39% at net asset value compared to 17.65% for the index.
Market Conditions and Investment Strategies
On a country basis, the largest detractors were the Philippines (1.39%) and Brazil (1.10%). Among holdings in the Philippines, the largest detractor was an overweight position in Globe Telecom Inc., while among the holdings in Brazil, the largest detractor was not holding Vale S.A. The largest contributors for the period were Mexico 0.36% and India 0.34%. Among holdings in Mexico, the largest contributor was not holding America Movil SAB while among holdings in India, the largest contributor was an overweight position in UPL Ltd.
On a sector basis, the largest detractors were Information Technology (2.78%) and Financials (1.75%). Among the holdings in Information Technology, the largest detractor was an underweight position in Samsung Electric, while among holdings in Financials, the largest detractor was an underweight position in Itau Unibanco Holdings. The largest contributors for the period were Health Care 0.08% and Materials 0.06%. Among holdings in Health Care, the largest contributor was an overweight position in Shanghai Pharmaceuticals, while among holdings in Materials, the largest contributor was an overweight position in Braskem S.A.
Portfolio Changes
There were no significant portfolio changes during the fiscal year ended March 31, 2017.
A Look Ahead
As a quantitative investment firm, we tend not to provide strategy-specific forward looking commentary. We believe that our systematic investment approach ensures that we deliver a portfolio of our highest conviction of ideas to all of our clients.
The Fund's portfolio is managed by Dmitri Kantsyrev Ph.D., CFA and Jane Zhou, Ph.D of PanAgora Asset Management, Inc.
9
PEAR TREE PANAGORA EMERGING MARKETS FUND
Top 10 Holdings3 | Sector Allocation3 | |||
Percentage of total net assets | 62.2% | Percentage of total net assets | 100.0% | |
Pear Tree PanAgora Risk Parity | Mutual Funds* | 52.6 | ||
Emerging Markets (Inst. Shares) | 51.9 | Information Technology | 7.1 | |
HCL Technologies Ltd. | 1.5 | Consumer Discretionary | 6.0 | |
FibriaCelulose S.A. | 1.2 | Financials | 5.8 | |
GS Retail Co., Ltd. | 1.2 | Consumer Staples | 5.6 | |
PT Telekomunikasi Indonesia Persero Tbk | 1.1 | Telecommunication Services | 5.4 | |
Pou Chen Corporation | 1.1 | Materials | 5.0 | |
AAC Technologies Holdings Inc. | 1.1 | Utilities | 3.7 | |
Guangdong Investment Limited | 1.1 | Industrials | 3.5 | |
LG Uplus Corp. | 1.0 | Energy | 3.5 | |
NetEase Inc. | 1.0 | Health Care | 1.1 | |
There is no guarantee that such securities will | Real Estate | 0.3 | ||
continue to be viewed favorably or held in the | CASH + other assets (net) | 0.4 | ||
Fund's portfolio. |
Top 10 Country Allocations3 | |||
Percentage of total net assets | 42.4% | ||
South Korea | 9.4 | ||
China | 5.4 | ||
Hong Kong | 5.2 | ||
Taiwan | 4.6 | ||
South Africa | 3.6 | ||
Indonesia | 3.4 | ||
Brazil | 3.0 | ||
Russia | 3.0 | ||
India | 2.7 | ||
Thailand | 2.1 | ||
Average Annual Total Returns
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinary Shares | 9.62% | 4.23% | 9.39% | (0.60%) | 0.55% | 4.92% | 09/30/94 |
Institutional Shares1 | 9.70% | 4.41% | 9.68% | (0.34%) | 0.80% | 6.34% | 04/02/96 |
MSCI EM2 | 11.49% | 6.93% | 17.65% | 1.17% | 3.05% | 4.88% |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International Emerging Markets ("MSCI EM") Index is an unmanaged index composed of stocks located in countries other than the United States. It is widely recognized as representative of the general market for emerging markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect fees or expenses. You cannot invest directly in an Index. For comparative performance purposes, the beginning date for the Index is 09/30/94.
3 "Top 10 Holdings", "Sector Allocation", and "Top 10 Country Allocation" reflect the direct and indirect (through the Fund's investment in Pear Tree PanAgora Risk Parity Emerging Markets Fund) securities holdings.
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.
10
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
INVESTMENT PROFILE
All Data as of March 31, 2017
Fund Information
Net Assets Under Management | $59.5 Million | |
Number of Portfolio Holdings | 416 | |
Average Price to Book Ratio | 1.7 | |
Average Price to Earnings Ratio | 15.6 | |
Ordinary | Institutional | |
Total Expense Ratio (Gross)* | 1.49% | 1.24% |
Total Expense Ratio (Net)* | 1.49% | 1.24% |
Ticker Symbol | RPEMX | EMPRX |
* | per prospectus dated February 6, 2017 as supplemented April 6, 2017. See financial highlights for total expense ratios for the fiscal year ended March 31, 2017. |
Investment Commentary
(prepared by PanAgora Asset Management, Inc., sub-adviser to Pear Tree PanAgora Risk Parity Emerging Markets Fund)
For the fiscal year ended March 31, 2017, the Pear Tree Risk Parity Emerging Markets Fund's Ordinary Shares (the "Fund") underperformed its benchmark, The MSCI Emerging Markets Index (the "Index"). The Fund achieved a return of 5.44% at net asset value compared to 17.65% for the Index.
Market Conditions and Investment Strategies
On a country basis, the largest detractors were the Philippines (1.90%) and Turkey (1.12%). Among holdings in the Philippines, the largest detractor was an overweight position in Universal Robina Corp, while among holdings in Turkey, the largest detractor was an overweight position in Turk Telekomunikasyon AS. The largest contributors for the period were South Africa 0.52% and Chile 0.17%. Among holdings in South Africa, the largest contributor was an underweight position in Steinhoff International Holdings N.V., while among holdings in Chile, the largest contributor was an overweight position in LATAM Airlines Group S.A.
On a sector basis, the largest detractors were Information Technology (2.84%) and Financials (2.08%). Among holdings in Information Technology, the largest detractor was an underweight position in Samsung Electric, while among holdings in Financials, the largest detractor was an underweight position in Banco Bradesco S.A. The largest contributor for the period was Energy 0.71%. Among holdings in Energy, the largest contributor was an overweight position in Adaro Energy TBK PT.
Portfolio Changes
There were no significant portfolio changes during the fiscal year ended March 31, 2017.
A Look Ahead
As a quantitative investment firm, we tend not to provide strategy-specific forward looking commentary. We believe that our systematic investment approach ensures that we deliver a portfolio of our highest conviction of ideas to all of our clients.
The Fund's portfolio is managed by Edward Qian, Ph.D., CFA and Mark Barnes of PanAgora Asset Management, Inc.
11
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
Top 10 Holdings | Sector Allocation | |||
Percentage of total net assets | 7.2% | Percentage of total net assets | 100.0% | |
Emirates Telecommunications Group | Financials | 16.4 | ||
Co. P.J.S.C. | 0.9 | Industrials | 11.3 | |
DP World Ltd. | 0.8 | Telecommunication Services | 11.2 | |
Qatar Electricity & Water Company Q.S.C. | 0.8 | Consumer Staples | 10.8 | |
Qatar Gas Transport Company Limited | Consumer Discretionary | 10.6 | ||
(Nakilat) Q.S.C. | 0.8 | Materials | 10.0 | |
Jollibee Foods Corporation | 0.7 | Utilities | 8.8 | |
Universal Robina Corporation | 0.7 | Energy | 8.1 | |
Aboitiz Power Corporation | 0.7 | Health Care | 4.9 | |
Industries Qatar Q.S.C. | 0.6 | Information Technology | 4.1 | |
DXB Entertainments P.J.S.C. | 0.6 | Real Estate | 3.3 | |
PLDT Inc. | 0.6 | CASH + other assets (net) | 0.5 | |
There is no guarantee that such securities will | ||||
continue to be viewed favorably or held in the | ||||
Fund's portfolio. |
Top 10 Country Allocations | |||
Percentage of total net assets | 64.1% | ||
Thailand | 7.9 | ||
Taiwan | 7.8 | ||
Philippines | 7.4 | ||
South Korea | 6.6 | ||
Malaysia | 6.5 | ||
Indonesia | 6.4 | ||
Mexico | 5.9 | ||
India | 5.6 | ||
Chile | 5.4 | ||
Qatar | 4.6 |
Average Annual Total Returns | |||||||
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinary Shares | 8.87% | 3.31% | 5.44% | —% | —% | (1.58%) | 6/27/2013 |
Institutional Shares1 | 8.96% | 3.45% | 5.70% | —% | —% | (1.26%) | 6/27/2013 |
MSCI EM2 | 11.49% | 6.93% | 17.65% | —% | —% | 3.81% |
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International Emerging Markets ("MSCI EM") Index is an unmanaged index comprised of stocks located in countries other than the United States. It is widely recognized as representative of the general market for emerging markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect fees or expenses. You cannot invest directly in an Index. For comparative performance purposes, the beginning date for the Index is 06/27/2013.
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.
12
PEAR TREE POLARIS FOREIGN VALUE FUND
INVESTMENT PROFILE
All Data as of March 31, 2017
Fund Information
Net Assets Under Management | $1,656.1 Million | ||
Number of Portfolio Holdings | 51 | ||
Average Price to Book Ratio | 1.8 | ||
Average Price to Earnings Ratio | 16.4 | ||
Ordinary | Institutional | R6 | |
Total Expense Ratio (Gross)* | 1.53% | 1.28% | 1.13% |
Total Expense Ratio (Net)* | 1.43% | 1.06% | 1.03% |
Ticker Symbol | QFVOX | QFVIX | QFVRX |
* | per prospectus dated February 6, 2017, as supplemented April 6, 2017. See financial highlights for the total expense ratios for the year ended March 31, 2017. |
Investment Commentary (prepared by Polaris Capital Management, LLC, subadviser to Pear Tree Polaris Foreign Value Fund) For the fiscal year ended March 31, 2017, the Pear Tree Polaris Foreign Value Fund's Ordinary Shares (the "Fund") outperformed its benchmark, the MSCI EAFE Index (the "Index"). The Fund had a return of 13.59% at net asset value compared to 12.25% for the Index. |
Market Conditions and Investment Strategies
Positive economic developments throughout Asia and China helped stabilize prices in the Materials sector. Japanese chemical producer, Showa Denko, released improved forecasts in its divisions due to a waning Yen currency, better ethylene spreads and higher shipments of hard drives. Canada's Methanex achieved strong earnings and record production rates. Methanol pricing improved on solid supply and demand fundamentals led by higher methanol-to-olefins production. German specialty chemicals company LANXESS AG and Australian commodity producer BHP Billiton benefitted from higher commodity prices.
Samsung Electronics had double-digit gains, after reporting strong results backed by rising prices and volumes for semiconductor chips and TV displays. Management anticipated accelerated sales in the mobile phone business upon the launch of the Galaxy S8. The stock price of Australian engineering and design company, WorleyParsons, rose after it received a tendered bid by Dubai-based engineering firm, Dar Group. Konecranes Oyj reported improved profitability in the second half of 2016 on
the back of cost-saving initiatives and restructuring. Konecranes' acquisition of U.S. equipment maker Terex Corp. was finalized in early January 2017. British and Asian centered bank, Standard Chartered, was up after completing operational efficiencies and cleaning its balance sheet. The bank signed an agreement with Allianz to distribute insurance products through its Asian outlets, a deal which may add $1 billion in revenue over the 15-year contract.
Only a handful of portfolio stocks were in negative territory. Irish convenience foods producer Greencore Group retreated after announcing the acquisition of U.S.-based Peacock Foods in a deal funded by an equity rights issue and new debt. Teva Pharmaceutical trimmed its profit forecast amid an unanticipated slowdown in its introduction of new generic medicines. The company also lost a ruling that invalidated four patents on its multiple sclerosis drug. Kia Motors declined, as its product mix did not
match with higher demand for models in China and slower sales in other emerging markets. Infosys lowered its annual forecast, citing industry-wide competitive threats from customizable internetbased/ cloud software.
Portfolio Changes
We decided to exit positions in Wincor Nixdorf and Rexlot Holdings. Sale proceeds were used to purchase Austrian hydro, pulp and metals service supplier Andritz, Puerto Rico-based bank Popular Inc. and diversified French engineering construction company, VINCI SA. Swedish investment company, Investor AB, was sold in favor of United Overseas Bank, a conservatively managed Singapore bank with an expanding footprint in Southeast Asia.
13
PEAR TREE POLARIS FOREIGN VALUE FUND
A Look Ahead
Discussions with companies lead us to a more positive outlook on the world's largest two economies, the U.S. and China, and for Material and other early cycle sectors. The years-long underperformance of emerging markets adds to the valuation appeal of these countries, especially in Asia. Headwinds still exist in certain European countries, with the European Central Bank continuing its quantitative easing scheme. BREXIT negotiations are unfolding and the crucial political elections are underway. We keep all of these issues in mind, while remaining focused on fundamental, bottom-up stock picking. Investment changes in the months ahead will shift the portfolio from Europe to Asia, as we seek to enhance the valuation profile of the Fund and reduce exposure to companies with higher leverage.
The Fund's lead portfolio manager is Bernard R. Horn, Jr., of Polaris Capital Management, LLC
14
PEAR TREE POLARIS FOREIGN VALUE FUND
Top 10 Holdings | Sector Allocation | |||
Percentage of total net assets | 25.1% | Percentage of total net assets | 100.0% | |
Taylor Wimpey plc | 2.7% | Materials | 22.2% | |
Samsung Electronics Company Limited | 2.6% | Consumer Discretionary | 20.7% | |
Persimmon plc | 2.6% | Financials | 19.4% | |
Barratt Developments plc | 2.5% | Industrials | 13.2% | |
Siam Commercial Bank PCL | 2.5% | Energy | 6.0% | |
Imerys SA | 2.5% | Telecommunication Services | 5.7% | |
Showa Denko K.K. | 2.5% | Consumer Staples | 4.7% | |
Christian Dior S.E. | 2.4% | Information Technology | 4.3% | |
Bellway plc | 2.4% | Health Care | 3.1% | |
Michelin (CGDE) | 2.4% | Cash and Other Assets (Net) | 0.7% | |
There is no guarantee that such securities will | ||||
continue to be viewed favorably or held in the | ||||
Fund's portfolio. |
Top 10 Country Allocations | |||
Percentage of total net assets | 78.8% | ||
Germany | 16.9% | ||
United Kingdom | 16.0% | ||
France | 10.6% | ||
Japan | 6.5% | ||
Norway | 6.1% | ||
Finland | 5.1% | ||
Thailand | 4.8% | ||
Sweden | 4.7% | ||
South Korea | 4.4% | ||
Australia | 3.7% |
Average Annual Total Returns | |||||||
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinary Shares | 7.52% | 7.59% | 13.59% | 8.11% | 1.99% | 6.45% | 05/15/1998 |
Institutional Shares1 | 7.55% | 7.67% | 13.82% | 8.38% | 2.21% | 7.90% | 12/18/1998 |
R6 Shares1 | 3.40 | 02/06/2017 | |||||
MSCI EAFE2 | 7.39% | 6.66% | 12.25% | 6.32% | 1.53% | 4.37% |
1 Institutional Shares and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International 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 05/29/98.
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.
15
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
INVESTMENT PROFILE
All Data as of March 31, 2017
Fund Information
Net Assets Under Management | $585.8 Million | ||
Number of Portfolio Holdings | 74 | ||
Average Price to Book Ratio | 1.7 | ||
Average Price to Earnings Ratio | 12.2 | ||
Ordinary | Institutional | R6 | |
Total Expense Ratio (Gross)* | 1.57% | 1.31% | 1.16% |
Total Expense Ratio (Net)* | 1.47% | 1.09% | 1.06% |
Ticker Symbol | QUSOX | QUSIX | QUSRX |
* | per prospectus dated February 6, 2017, as supplemented April 6, 2017. See financial highlights for the total expense ratios for the year ended March 31, 2017. |
Investment Commentary
(prepared by Polaris Capital Management, LLC, subadviser to Pear Tree Polaris Foreign Value Small Cap Fund)
For the fiscal year ended March 31, 2017, 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 15.73% at net asset value compared to 12.67% for the Index.
Market Conditions and Investment Strategies
The top contributor to Fund outperformance was WorleyParsons. The Australian engineering contractor turned a profit on increasing infrastructure division revenues in conjunction with cost reduction programs. WorleyParsons subsequently received a tendered bid from Dubai-based engineering firm, Dar Group. Dar's stake was secured at $10.35 per share, which was a 28% premium above the market price as of February 27. Among consumer staples, Japan's Prima Meat Packers improved its bottomline by growing convenience store revenues and increasing efficiency via cost cuts. Brand recognition allowed rice miller and exporter, KRBL Limited, to gain customers in a weak basmati rice market. German medical/safety supplier, Draegerwerk AG, experienced flagging sales, but realized profit increases on the back of cost rationalizations. The stock was up more than 50%, further buoyed by an improving order book. Industrial company DFDS posted solid earnings backed by its stronghold in the English Channel ferry business. BBA Aviation successfully divested some of its assets, as was required of the Landmark Aviation acquisition. Brazilian utility, Equatorial Energia, achieved double-digit returns citing rising volumes, lower energy losses and fewer power interruptions.
Detractors were largely relegated to the Consumer Discretionary sector, with declines from Texwinca Holdings, Halfords Group, Samson Holdings and VT Holdings. Hong Kong textile manufacturer, Texwinca Holdings, reported weaker earning on falling cotton prices and slowing retail demand. Halfords Group, the U.K.'s largest retailer of car maintenance and cycling products, noted weak bicycle sales. Japanese automotive dealer, VT Holdings, had poor results on sluggish car sales.
Portfolio Changes
During the fiscal year, the Fund exited 13 positions, many of which were sold when they reached valuation targets. Others were sold and replaced with better valued companies. Among the sales were Clicks Group, Vetropack Holding, REXLot Holdings, Alternative Networks, M1 Ltd, and Emperor Watch & Jewellery. PKC Group was acquired at a 51% premium by Indian auto-component maker MothersonSumi Systems; we took this as an opportunity to sell out of PKC at a profit. Proceeds were deployed to purchase 11 new holdings including Spotless Group Holdings, the largest Australian service company; Arcadis NV, a Netherlands company that provides architecture, engineering and project management; and Elis SA, a French multi-services supplier of professional clothing, textiles and hygiene products. Brexit was the catalyst for the U.K. purchases of Conviviality plc, Keller Group plc and Carillion plc, as the earlier downtrodden market allowed entry to these undervalued, but fundamentally strong companies.
16
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
A Look Ahead
Worldwide demand trends are encouraging, as many small-cap businesses are projecting growth in 2017. This metric seemingly indicates that global markets are recovering, backed by the world's two largest economies, the U.S. and China. Emerging markets are looking equally promising, and much of developed Europe is on the rebound. Headwinds still exist in parts of Europe, Asia and Latin America. We intend to capitalize on bouts of volatility to purchase attractively-valued companies, especially in Asia.
The Fund's lead portfolio manager is Bernard R. Horn, Jr., of Polaris Capital Management, LLC
17
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
Top 10 Holdings | Sector Allocation | |||
Percentage of total net assets | 24.2% | Percentage of total net assets | 100.0% | |
Drӓegerwerk AG, Preferred | 2.9% | Industrials | 24.9% | |
WorleyParsons Limited | 2.7% | Consumer Discretionary | 18.5% | |
Freenet AG | 2.6% | Financials | 11.8% | |
Prima Meat Packers Limited | 2.5% | Information Technology | 10.7% | |
BBA Aviation plc | 2.3% | Consumer Staples | 9.6% | |
DFDS A/S | 2.3% | Utilities | 4.9% | |
Arcadis NV | 2.3% | Materials | 4.9% | |
Taiwan Union Technology Corporation | 2.2% | Health Care | 4.4% | |
Spotless Group Holdings Limited | 2.2% | Real Estate | 3.1% | |
De'LonghiSpA | 2.2% | Telecommunication Services | 2.9% | |
There is no guarantee that such securities will | Energy | 2.7% | ||
continue to be viewed favorably or held in the | CASH + other assets (net) | 1.6% | ||
Fund's portfolio |
Top 10 Country Allocations | |||
Percentage of total net assets | 76.4% | ||
United Kingdom | 19.6% | ||
Japan | 11.8% | ||
Taiwan | 7.6% | ||
Germany | 7.5% | ||
Australia | 7.1% | ||
Thailand | 5.8% | ||
Hong Kong | 4.9% | ||
India | 4.3% | ||
Ireland | 4.3% | ||
France | 3.5% | ||
Average Annual Total Returns | |||||||
Six | Since | Inception | |||||
1Q 2017 | Months | One Year | Five Year | Ten Year | Inception | Date | |
Ordinary Shares | 10.74% | 9.12% | 15.73% | 10.42% | —% | 6.67% | 01/05/2008 |
Institutional Shares1 | 10.82% | 9.34% | 16.13% | 10.71% | —% | 6.92% | 01/05/2008 |
R6 Shares1 | 6.30% | 06/02/2017 | |||||
MSCI World ex USA Small Cap2 | 8.86% | 5.08% | 12.67% | 7.06% | —% | 4.10% |
1 Institutional Shares and R6 Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution 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 2,372 constituents, the index covers approximately 14% 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 May 01, 2008.
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.
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 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.
18
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
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19
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock—96.8% | |||||
Shares | Value | ||||
AIRLINES—1.8% | |||||
Spirit Airlines, Inc. (a) | 38,998 | $ | 2,069,624 | ||
AUTO COMPONENTS—2.2% | |||||
Motorcar Parts of America, Inc. (a) | 83,806 | 2,575,358 | |||
BANKS—23.4% | |||||
Ameris Bancorp | 87,700 | 4,042,970 | |||
BNC Bancorp | 86,200 | 3,021,310 | |||
Brookline Bancorp, Inc. | 156,000 | 2,441,400 | |||
Bryn Mawr Bank Corporation | 54,146 | 2,138,767 | |||
Central Pacific Financial Corporation | 83,883 | 2,561,787 | |||
CoBiz Financial, Inc. | 103,909 | 1,745,671 | |||
Colony Bankcorp, Inc. (a) | 117,058 | 1,591,989 | |||
Dime Community Bancshares, Inc. | 96,900 | 1,967,070 | |||
F.N.B. Corporation | 117,880 | 1,752,876 | |||
International Bancshares Corporation | 60,700 | 2,148,780 | |||
OFG Bancorp | 163,300 | 1,926,940 | |||
Pinnacle Financial Partners, Inc. | 28,369 | 1,885,120 | |||
27,224,680 | |||||
BUILDING PRODUCTS—2.1% | |||||
NCI Building Systems, Inc. (a) | 140,244 | 2,405,185 | |||
CAPITAL MARKETS—1.7% | |||||
Hercules Capital, Inc. | 130,946 | 1,981,213 | |||
CHEMICALS—2.4% | |||||
Ferro Corporation (a) | 188,035 | 2,856,252 | |||
COMMUNICATIONS EQUIPMENT—2.1% | |||||
Bel Fuse, Inc. Class B | 96,000 | 2,452,800 | |||
CONSTRUCTION MATERIALS—1.5% | |||||
U.S. Concrete, Inc. (a)(b) | 27,860 | 1,798,363 | |||
ELECTRIC UTILITIES—2.1% | |||||
ALLETE, Inc. | 35,400 | 2,396,934 | |||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS)—9.5% | |||||
DuPont Fabros Technology, Inc. | 49,205 | 2,440,076 | |||
Education Realty Trust, Inc. | 48,957 | 1,999,894 | |||
EPR Properties | 43,410 | 3,196,278 | |||
Physicians Realty Trust | 115,622 | 2,297,409 | |||
Select Income Reit | 45,722 | 1,179,170 | |||
11,112,827 |
The accompanying notes are an integral part of these financial statements.
20
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||||
HEALTH CARE EQUIPMENT & SUPPLIES—4.5% | |||||
Computer Programs and Systems, Inc. (b) | 96,450 | $ | 2,700,600 | ||
Natus Medical, Inc. (a) | 66,220 | 2,599,135 | |||
5,299,735 | |||||
INSURANCE—2.0% | |||||
United Insurance Holdings Corporation | 142,751 | 2,276,878 | |||
Internet Software & Services—1.9% | |||||
Web.com Group, Inc. (a) | 112,600 | 2,173,180 | |||
IT SERVICES—4.1% | |||||
Alliance Data Systems Corporation (a) | 2,255 | 561,495 | |||
Cardtronics, Inc. (a) | 46,183 | 2,159,055 | |||
EVERTEC Inc | 126,500 | 2,011,350 | |||
4,731,900 | |||||
LIFE SCIENCES TOOLS & SERVICES—3.2% | |||||
Cambrex Corporation (a) | 21,397 | 1,177,905 | |||
VWR Corporation | 89,400 | 2,521,080 | |||
3,698,985 | |||||
MACHINERY—3.8% | |||||
Exco Technologies Limited | 251,400 | 2,164,346 | |||
Greenbrier Companies, Inc. (The) (b) | 52,500 | 2,262,750 | |||
4,427,096 | |||||
MEDIA—7.8% | |||||
Cinemark Holdings, Inc. | 48,191 | 2,136,789 | |||
Entravision Communications Corporation, Class A | 436,364 | 2,705,457 | |||
National CineMedia, Inc. | 147,295 | 1,860,336 | |||
Regal Entertainment Group | 106,911 | 2,414,050 | |||
9,116,632 | |||||
OIL, GAS & CONSUMABLE FUELS—1.5% | |||||
Diamondback Energy, Inc. (a) | 16,670 | 1,728,929 | |||
PHARMACEUTICALS—1.8% | |||||
Phibro Animal Health Corporation | 76,800 | 2,158,080 | |||
PROFESSIONAL SERVICES—2.4% | |||||
Kforce, Inc. | 119,694 | 2,842,732 | |||
ROAD & RAIL—1.7% | |||||
Swift Transportation Company (a) | 95,965 | 1,971,121 | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT—3.7% | |||||
Integrated Device Technology, Inc. (a) | 107,839 | 2,552,549 |
The accompanying notes are an integral part of these financial statements.
21
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (continued) | ||||
Microsemi Corporation (a) | 34,728 | $ | 1,789,534 | |
4,342,083 | ||||
SPECIALTY RETAIL—3.2% | ||||
Asbury Automotive Group, Inc. (a) | 35,546 | 2,136,315 | ||
RH (a)(b) | 33,500 | 1,549,710 | ||
3,686,025 | ||||
TEXTILES & APPAREL & LUXURY GOODS—2.2% | ||||
Deckers Outdoor Corporation (a) | 42,000 | 2,508,660 | ||
TRADING COMPANIES & DISTRIBUTORS—4.2% | ||||
Air Lease Corporation | 64,000 | 2,480,000 | ||
WESCO International, Inc. (a) | 34,300 | 2,385,565 | ||
4,865,565 | ||||
TOTAL COMMON STOCK | ||||
(Cost $82,139,475) | 112,700,837 | |||
Short Term Investments—3.3% | ||||
Par Value | Value | |||
Money Market—3.3% | ||||
State Street Bank Institutional U.S. Government Money | ||||
Market Fund | ||||
(Cost $3,841,110) | $3,841,110 | 3,841,110 | ||
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS | ||||
PURCHASED WITH CASH COLLATERAL FROM | ||||
SECURITIES LOANED)—100.1% | ||||
(Cost $85,980,585) | 116,541,947 | |||
INVESTMENTS PURCHASED WITH CASH COLLATERAL | ||||
FROM SECURITIES LOANED—5.4 % | ||||
Money Market—5.4 % | ||||
BlackRock FedFund (Institutional Shares) | ||||
(Cost $6,245,390) | 6,245,390 | |||
TOTAL INVESTMENTS—105.5% | ||||
(Cost $92,225,975) | 122,787,337 | |||
OTHER ASSETS & LIABILITIES (NET)—(5.5)% | (6,320,083) | |||
NET ASSETS—100% | $ | 116,467,254 |
The accompanying notes are an integral part of these financial statements.
22
PEAR TREE POLARIS SMALL CAP FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
(a) | Non-income producing security | |||||
(b) | All or a portion of this security was out on loan. | |||||
(c) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $92,055,402 was as follows: | |||||
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $ | 31,210,995 | ||||
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (479,060) | |||||
Net unrealized appreciation/(depreciation) | $ | 30,731,935 | ||||
The percentage of each investment category is calculated as a percentage of net assets. |
Pie Chart data:
Industry sector diversification | Percent of net assets |
Financials | 27.0% |
Industrials | 15.9% |
Consumer Discretionary | 15.4% |
Information Technology | 11.8% |
Health Care | 9.6% |
Real Estate | 9.5% |
Materials | 4.0% |
Utilities | 2.1% |
Energy | 1.5% |
Cash and Other Assets (Net) | 3.2% |
The accompanying notes are an integral part of these financial statements.
23
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock—98.5% | |||||
Shares | Value | ||||
AEROSPACE & DEFENSE—1.6% | |||||
United Technologies Corporation | 17,288 | $ | 1,939,887 | ||
BEVERAGES—2.0% | |||||
Coca-Cola Company (The) | 55,352 | 2,349,139 | |||
CHEMICALS—1.7% | |||||
Monsanto Company | 17,656 | 1,998,659 | |||
COMMUNICATIONS EQUIPMENT—4.0% | |||||
QUALCOMM Incorporated | 59,103 | 3,388,966 | |||
Schlumberger Limited | 16,787 | 1,311,065 | |||
4,700,031 | |||||
COMPUTERS & PERIPHERALS—5.8% | |||||
Apple, Inc. | 43,566 | 6,258,692 | |||
Teradata Corporation (a) | 20,163 | 627,472 | |||
6,886,164 | |||||
DISTRIBUTORS—0.3% | |||||
Genuine Parts Company | 3,857 | 356,426 | |||
DIVERSIFIED FINANCIAL SERVICES—3.8% | |||||
American Express Company | 56,602 | 4,477,784 | |||
ELECTRICAL EQUIPMENT—2.5% | |||||
Emerson Electric Co. | 24,092 | 1,442,147 | |||
Honeywell International Inc. | 6,901 | 861,728 | |||
Rockwell Automation, Inc. | 4,316 | 672,044 | |||
2,975,919 | |||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.4% | |||||
Amphenol Corporation | 7,089 | 504,524 | |||
FOOD PRODUCTS—6.2% | |||||
Nestle, S.A. (c) | 28,816 | 2,215,950 | |||
Unilever N.V. (c) | 50,851 | 2,526,278 | |||
Unilever plc (c) | 53,133 | 2,621,582 | |||
7,363,810 | |||||
FOOD STAPLES & DRUG RETAILING—2.7% | |||||
Costco Wholesale Corporation | 10,317 | 1,730,058 | |||
CVS Caremark Corporation | 9,904 | 777,464 | |||
PepsiCo, Inc. | 6,608 | 739,171 | |||
3,246,693 | |||||
HEALTH CARE EQUIPMENT & SUPPLIES—6.1% | |||||
Becton, Dickinson and Company | 6,670 | 1,223,545 |
The accompanying notes are an integral part of these financial statements.
24
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||||
HEALTH CARE EQUIPMENT & SUPPLIES (continued) | |||||
C. R. Bard, Inc. | 836 | $ | 207,779 | ||
Intuitive Surgical, Inc. (a) | 449 | 344,145 | |||
Medtronic plc | 37,616 | 3,030,345 | |||
Stryker Corporation | 12,841 | 1,690,518 | |||
Zimmer Holdings, Inc. | 5,957 | 727,409 | |||
7,223,741 | |||||
HEALTH CARE PROVIDERS & SERVICES—5.8% | |||||
Anthem, Inc. | 3,223 | 533,020 | |||
Cerner Corporation (a) | 11,301 | 665,064 | |||
Humana Inc. | 4,495 | 926,599 | |||
UnitedHealth Group, Inc. | 28,942 | 4,746,777 | |||
6,871,460 | |||||
HOTELS, RESTAURANTS & LEISURE—2.2% | |||||
Compass Group PLC (b)(c) | 56,090 | 1,080,294 | |||
McDonald's Corporation | 11,815 | 1,531,342 | |||
2,611,636 | |||||
HOUSEHOLD PRODUCTS—1.7% | |||||
Church & Dwight Co., Inc. | 1,230 | 61,340 | |||
Colgate-Palmolive Company | 7,556 | 553,024 | |||
Procter & Gamble Company (The) | 945 | 84,908 | |||
Reckitt Benckiser Group plc | 14,382 | 1,317,751 | |||
2,017,023 | |||||
INDUSTRIAL CONGLOMERATES—3.0% | |||||
3M Company | 18,531 | 3,545,536 | |||
INTERNET SOFTWARE & SERVICES—7.0% | |||||
Alphabet Inc. A (a) | 5,801 | 4,918,088 | |||
Alphabet Inc. C (a) | 4,151 | 3,443,503 | |||
8,361,591 | |||||
IT CONSULTING & SERVICES—4.1% | |||||
Accenture plc | 22,102 | 2,649,588 | |||
Automatic Data Processing, Inc. | 2,682 | 274,610 | |||
Cognizant Technology Solutions Corporation (a) | 33,245 | 1,978,742 | |||
4,902,940 | |||||
MACHINERY—1.3% | |||||
Illinois Tool Works, Inc. | 12,019 | 1,592,157 | |||
PHARMACEUTICALS & BIOTECHNOLOGY—7.3% | |||||
Abbott Laboratories | 39,149 | 1,738,607 |
The accompanying notes are an Integral part or these financial statements.
25
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||||
PHARMACEUTICALS & BIOTECHNOLOGY (continued) | |||||
Eli Lilly and Company | 9,516 | $ | 800,391 | ||
Johnson & Johnson | 38,229 | 4,761,422 | |||
Novartis AG (c) | 7,600 | 564,452 | |||
Pfizer Inc. | 25,185 | 861,579 | |||
8,726,451 | |||||
RETAILING—0.5% | |||||
TJX Companies, Inc. (The) | 7,264 | 574,437 | |||
SEMICONDUCTOR EQUIPMENTS & PRODUCTS—2.6% | |||||
Analog Devices, Inc. | 9,865 | 808,437 | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (c) | 45,677 | 1,500,032 | |||
Texas Instruments, Inc. | 10,164 | 818,812 | |||
3,127,281 | |||||
SOFTWARE & SERVICES—18.6% | |||||
Cisco Systems, Inc. | 144,207 | 4,874,197 | |||
Intuit Inc. | 6,163 | 714,846 | |||
MasterCard Incorporated | 9,253 | 1,040,685 | |||
Microsoft Corporation | 127,283 | 8,382,858 | |||
Oracle Corporation | 143,418 | 6,397,877 | |||
SAP AG (b)(c) | 7,160 | 702,897 | |||
22,113,360 | |||||
TEXTILES & APPAREL—2.1% | |||||
LVMH Moët Hennessy-Louis Vuitton S.A. (c) | 21,933 | 964,175 | |||
Nike, Inc. B | 16,588 | 924,449 | |||
V.F. Corporation | 11,226 | 617,093 | |||
2,505,717 | |||||
TOBACCO—4.9% | |||||
British American Tobacco plc (b)(c) | 38,322 | 2,541,515 | |||
Philip Morris International, Inc. | 29,641 | 3,346,469 | |||
5,887,984 | |||||
TRADING COMPANIES & DISTRIBUTION—0.3% | |||||
W.W. Grainger, Inc. | 1,729 | 402,442 | |||
TOTAL COMMON STOCK | |||||
(Cost $97,962,601) | 117,262,792 |
The accompanying notes are an Integral part or these financial statements.
26
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Short Term Investments—1.5% | ||||
Par Value | Value | |||
State Street Bank & Trust Co., Repurchase Agreement .05%, 04/03/17, (Dated 03/31/17), Collateralized by 1,800,000 par U.S. Treasury Note-1.00% due 05/15/2018, Market Value $1,804,239, Repurchase Proceeds $1,764,032 (Cost $1,764,025) | ||||
$1,764,025 | $ | 1,764,025 | ||
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS | ||||
PURCHASED WITH CASH COLLATERAL FROM | ||||
SECURITIES LOANED)—100.0% | ||||
(Cost $99,726,626) | 119,026,817 | |||
Money Market—3.2% | ||||
BlackRock FedFund (Institutional Shares) | ||||
(Cost $3,872,331) | 3,872,331 | 3,872,331 | ||
TOTAL INVESTMENTS—103.2% | ||||
(Cost $103,598,957) | 122,899,148 | |||
OTHER ASSETS & LIABILITIES (NET)—(3.2%) | (3,816,463) | |||
NET ASSETS—100% | $ | 119,082,685 |
(a) | Non-Income producing security |
(b) | All or a portion of this security is out on loan |
(c) | ADR—American Depositary Receipts |
(d) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $103,743,573 was as follows: |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $ | 20,376,853 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (1,221,278) | |
Net unrealized appreciation/(depreciation) | $ | 19,155,575 |
The percentage of each investment category is calculated as a percentage of net assets.
Pie Chart data:
Industry sector diversification | Percent of net assets |
Information Technology | 42.5% |
Health Care | 19.2% |
Consumer Staples | 17.5% |
Industrials | 8.7% |
Consumer Discretionary | 5.1% |
Financials | 3.8% |
Materials | 1.7% |
CASH + other assets (net) | 1.5% |
The accompanying notes are an Integral part or these financial statements.
27
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock-45.5%
Shares | Value | |||
BRAZIL—2.5% | ||||
Banco Bradesco S.A. | 3,000 | $ | 30,406 | |
Banco do Brasil S.A. | 2,700 | 28,834 | ||
Banco Santander (Brasil) S.A. | 3,200 | 27,981 | ||
Energias do Brasil S.A. | 69,700 | 307,479 | ||
Fibria Celulose S.A. | 147,000 | 1,342,069 | ||
M. Dias Branco S.A. | 9,300 | 375,859 | ||
Qualicorp S.A. | 59,300 | 387,245 | ||
Sabesp Cia Saneame | 28,300 | 291,663 | ||
2,791,536 | ||||
CHINA—5.4% | ||||
Agricultural Bank of China, Class H | 83,000 | 38,233 | ||
Bank of China Ltd., H | 69,392 | 34,466 | ||
Bank of Communications Co., Ltd. H | 41,000 | 31,865 | ||
Belle International Holdings Limited | 491,000 | 319,053 | ||
China Cinda Asset Management Co., Ltd. H | 75,000 | 29,145 | ||
China Citic Bank Corp. Ltd. H | 40,000 | 26,507 | ||
China Communications Services Corporation Ltd. H | 832,000 | 544,917 | ||
China Construction Bank Corporation | 45,422 | 36,529 | ||
China Everbright Bank Co., Ltd. H | 40,000 | 19,558 | ||
China Galaxy Securities Co., Ltd.—H Shares | 17,500 | 16,145 | ||
China Merchants Bank Co., Ltd.—H Shares | 8,500 | 22,476 | ||
China Minsheng Banking Corp Ltd. H | 18,500 | 19,758 | ||
China National Building Material Co., Ltd. H | 680,000 | 437,490 | ||
China Railway Group Ltd. H | 452,000 | 404,215 | ||
China State Construction Engineering Corporation | 406,000 | 726,157 | ||
China Vanke Co., Ltd. H | 7,900 | 21,347 | ||
Guangzhou Automobile Group Co Ltd H Shares | 156,000 | 249,709 | ||
Guangzhou R&F Properties Co., Ltd. H | 21,600 | 33,741 | ||
Huaneng Power International Inc. H | 1,220,000 | 814,736 | ||
Industrial & Commercial Bank of China Ltd. | 46,911 | 30,664 | ||
NetEase Inc. (c) | 4,026 | 1,143,384 | ||
New Oriental Education & Technology Group Inc. (a)(c) | 6,605 | 398,810 | ||
Shenzhou International Group | 50,550 | 319,043 | ||
Sinopec Shanghai Petrochemical Co., Ltd. | 430,000 | 238,471 | ||
5,956,419 | ||||
COLOMBIA—0.3% | ||||
Bancolombia S.A. (c) | 9,034 | 360,186 | ||
GREECE—0.6% | ||||
Opap S.A. | 76,596 | 716,109 |
The accompanying notes are an Integral part or these financial statements.
28
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
HONG KONG—5.2% | ||||
AAC Technologies Holdings Inc. | 102,500 | $ | 1,199,544 | |
China Mengniu Dairy Company Limited | 435,000 | 901,166 | ||
China Mobile Limited | 76,284 | 834,829 | ||
China Resources Power Holdings Co., Ltd. | 366,000 | 660,265 | ||
Chongqing Rural Commercial Bank Co. | 42,687 | 28,836 | ||
Country Garden Holdings Company Limited | 68,000 | 61,161 | ||
Geely Automobile Holdings Ltd. | 152,000 | 232,745 | ||
Guangdong Investment Limited | 834,000 | 1,189,037 | ||
Nine Dragons Paper Limited | 233,000 | 250,341 | ||
Shanghai Industrial Holdings Limited | 154,000 | 452,790 | ||
5,810,714 | ||||
HUNGARY—1.0% | ||||
MOL Hungarian Oil an Gas Nyrt. | 9,492 | 651,082 | ||
OTP Bank Nyrt. | 17,043 | 477,824 | ||
1,128,906 | ||||
INDIA—2.7% | ||||
Bharat Petroleum Corporation Ltd. | 33,102 | 331,071 | ||
HCL Technologies Ltd. | 124,632 | 1,681,337 | ||
Hindustan Petroleum Corporation Ltd. | 47,558 | 385,239 | ||
Oil and Natural Gas Corp. Limited | 105,202 | 299,721 | ||
Power Finance Corporation Limited | 141,804 | 318,833 | ||
3,016,201 | ||||
INDONESIA—3.4% | ||||
PT Bank Negara Indonesia (Persero) Tbk | 1,158,300 | 562,830 | ||
PT Gudang Garam Tbk | 228,100 | 1,121,628 | ||
PT Indofood Sukses Makmur Tbk | 1,302,200 | 781,779 | ||
PT Telekomunikasi Indonesia Persero Tbk | 4,085,500 | 1,266,228 | ||
3,732,465 | ||||
MALAYSIA—0.8% | ||||
AirAsia Berhad | 1,216,000 | 862,782 | ||
PERU—0.5% | ||||
Credicorp Ltd. | 3,205 | 523,377 | ||
QATAR—0.7% | ||||
Qatar Insurance Company | 16,934 | 326,952 | ||
Qatar National Bank SAQ | 9,731 | 390,458 | ||
717,410 | ||||
RUSSIA—2.8% | ||||
ALROSA ao | 118,400 | 191,152 |
The accompanying notes are an Integral part or these financial statements.
29
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
RUSSIA (continued) | ||||
Federal Hydro-Generating Company RusHydro OAO | 25,583,000 | $ | 424,359 | |
Gazprom (c) | 21,428 | 95,783 | ||
LUKoil P.J.S.C. (c) | 2,318 | 122,761 | ||
MMC Norilsk Nickel P.J.S.C. (c) | 12,875 | 202,395 | ||
Mobile TeleSystems (c) | 50,813 | 560,467 | ||
NovaTek OAO (Reg S) (d) | 1,976 | 246,012 | ||
PhosAgro (d) | 33,323 | 486,516 | ||
Rosneft OAO | 19,070 | 109,473 | ||
Sberbank | 87,010 | 246,246 | ||
Severstal (d) | 10,317 | 148,668 | ||
Surgutneftegaz | 260,400 | 135,875 | ||
Tatneft PAO-CLS | 18,240 | 112,982 | ||
3,082,689 | ||||
SOUTH AFRICA—3.6% | ||||
Barclays Africa Group Ltd. | 3,187 | 33,116 | ||
Bidvest Group Limited | 54,834 | 628,419 | ||
Coronation Fund Managers Ltd | 8,910 | 41,968 | ||
Exxaro Resources Ltd. | 54,613 | 479,533 | ||
FirstRand Limited | 12,774 | 44,108 | ||
Fortress Income Fund Ltd. Class A | 36,916 | 46,165 | ||
Foschini Limited | 33,929 | 390,406 | ||
Gold Fields Limited | 161,321 | 561,958 | ||
Growthpoint Properties Limited | 21,493 | 41,461 | ||
Imperial Holdings Limited | 30,461 | 374,346 | ||
Nedbank Group Ltd | 2,684 | 48,277 | ||
Redefine Properties Ltd. | 46,492 | 38,125 | ||
Shoprite Holdings Ltd. | 44,438 | 640,774 | ||
Standard Bank of South Africa Ltd. | 3,855 | 41,274 | ||
Telkom South Africa Limited | 105,401 | 589,013 | ||
3,998,943 | ||||
SOUTH KOREA—8.6% | ||||
BGF Retail Co., Ltd. | 10,960 | 1,029,062 | ||
Coway Co., Ltd. | 8,631 | 742,468 | ||
Dongbu Insurance Co., Ltd. | 2,167 | 124,017 | ||
GS Retail Co., Ltd. | 28,051 | 1,321,906 | ||
Hana Financial Group, Inc. | 3,270 | 108,045 | ||
Hankook Tire Co., Ltd. | 8,277 | 403,377 | ||
Hanmi Science Co., Ltd. (b) | 16,473 | 860,255 | ||
Hyundai Engineering & Construction Co., Ltd. | 19,004 | 841,186 | ||
KB Financial Group Inc. | 2,641 | 115,720 | ||
LG Uplus Corp. | 89,812 | 1,148,450 |
The accompanying notes are an Integral part or these financial statements.
30
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
SOUTH KOREA (continued) | ||||
Lotte Chemical Corporation | 2,109 | $ | 698,725 | |
Samsung Card Co., Ltd. | 3,783 | 132,606 | ||
Samsung Electronics Company, Ltd. | 260 | 478,941 | ||
SK Hynix Inc. | 11,059 | 499,401 | ||
SK Telecom Company Ltd. | 4,573 | 1,030,489 | ||
9,534,648 | ||||
TAIWAN—4.6% | ||||
ASUSTeK Computer, Inc. | 14,000 | 138,420 | ||
Catcher Technology Co., Ltd. | 15,000 | 148,307 | ||
Cathay Financial Holding Co., Ltd. | 39,000 | 62,595 | ||
Chang Hwa Commercial Bank | 198,000 | 120,722 | ||
China Life Insurance Co., Limited | 51,120 | 50,543 | ||
Chinatrust Financial Holding Co., Ltd. | 119,000 | 73,536 | ||
First Financial Holding Company Ltd. | 127,060 | 77,469 | ||
Foxconn Technology Co., Ltd. | 38,000 | 115,844 | ||
Fubon Financial Holding Co., Ltd. | 40,000 | 65,255 | ||
Hon Hai Precision Industry Co., Ltd. | 48,544 | 145,588 | ||
Hua Nan Financial Holdings Co., Ltd. | 165,000 | 92,173 | ||
Inventec Corporation | 177,000 | 132,710 | ||
Largan Precision Co., Ltd. | 898 | 141,466 | ||
Lite-On Technology Corp. | 88,000 | 151,682 | ||
Mega Financial Holding Co., Ltd. | 107,000 | 86,397 | ||
Nanya Technology Corp. | 78,000 | 124,420 | ||
Nien Made Enterprise Co., Ltd. | 84,000 | 783,456 | ||
Novatek Microelectronics Corp., Ltd. | 44,000 | 170,388 | ||
Pegatron Corporation | 50,000 | 147,977 | ||
Phison Electronics Corp. | 15,000 | 134,712 | ||
Pou Chen Corporation | 905,000 | 1,252,698 | ||
Powertech Technology, Inc. | 49,000 | 142,595 | ||
Realtek Semiconductor Corporation | 25,000 | 89,396 | ||
SinoPac Financial Holdings Company | 232,000 | 72,408 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 21,270 | 132,488 | ||
United Microelectronics Corporation | 447,000 | 179,728 | ||
Vanguard International Semiconductor Corp. | 82,000 | 156,203 | ||
WPG Holdings Co., Ltd. | 124,000 | 155,702 | ||
5,144,878 | ||||
THAILAND—2.1% | ||||
Bangkok Bank PCL | 28,200 | 152,643 | ||
Kasikornbank PCL | 25,900 | 142,455 | ||
Krung Thai Bank PCL | 284,846 | 169,104 | ||
PTT PCL (e) | 60,000 | 675,737 |
The accompanying notes are an Integral part or these financial statements.
31
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
THAILAND (continued) | ||||
Siam Cement Pub Co-for Reg | 62,200 | $ | 977,461 | |
Siam Commercial Bank PCL (e) | 37,100 | 175,985 | ||
2,293,385 | ||||
UNITED ARAB EMERATES—0.7% | ||||
Abu Dhabi Commercial Bank | 72,251 | 133,762 | ||
Aldar Properties P.J.S.C. | 156,436 | 96,255 | ||
Dubai Islamic Bank PSJ | 103,505 | 157,808 | ||
First Gulf Bank P.J.S.C. | 59,456 | 208,816 | ||
National Bank of Abu Dhabi P.J.S.C. | 57,017 | 159,114 | ||
755,755 | ||||
TOTAL COMMON STOCK | ||||
(Cost $45,493,006) | 50,426,403 | |||
Preferred Stock—1.5% | ||||
BRAZIL—0.5% | ||||
Banco Bradesco S.A. | 3,500 | 35,839 | ||
Companhia Energetica de Minas Gerais | 64,200 | 209,520 | ||
Companhia Paranaense de Energia-Copel | 20,500 | 212,248 | ||
Itau Unibanco Holding S.A. | 2,500 | 29,963 | ||
Itausa-Investimentos Itau S.A. | 10,800 | 32,446 | ||
520,016 | ||||
RUSSIA—0.2% | ||||
Surgutneftegas OAO | 333,000 | 189,923 | ||
SOUTH KOREA—0.8% | ||||
Hyundai Motor Company Ltd. | 5,020 | 464,607 | ||
Samsung Electronics Co., Ltd. | 291 | 417,127 | ||
881,734 | ||||
TOTAL PREFERRED STOCK | ||||
(Cost $1,400,243) | 1,591,673 | |||
Exchange Traded Funds—0.7% | ||||
United States—0.7% | ||||
Vanguard FTSE Emerging Markets ETF | ||||
(Cost $810,204) | 20,800 | 826,176 |
The accompanying notes are an Integral part or these financial statements.
32
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Mutual Funds—51.9% | ||||
Shares | Value | |||
UNITED STATES—51.9% | ||||
Pear Tree PanAgora Risk Parity Emerging Markets Institutional* | ||||
(Cost $60,543,226) | 6,294,709 | $ | 57,407,743 | |
Short Term Investments—0.2% | ||||
Par Value | Value | |||
State Street Bank & Trust Co., Repurchase Agreement .05%, 04/03/17, (Dated 03/31/17), Collateralized by 240,000 par U.S. Treasury Note-1.00% due 05/15/2018, Market Value $240,565,Repurchase Proceeds $235,367 (Cost $235,366) | $ 235,366 | 235,366 | ||
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED) | ||||
(Cost $108,482,045) | 110,487,361 | |||
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—0.7% | ||||
Money Market—0.7% | ||||
BlackRock FedFund (Institutional Shares) | ||||
(Cost $768,460) | 768,460 | 768,460 | ||
TOTAL INVESTMENTS—100.5% | ||||
(Cost $109,250,505) | 111,255,821 | |||
OTHER ASSETS & LIABILITIES (Net)—(0.5%) | (545,014) | |||
NET ASSETS—100% | $ | 110,710,807 |
* | Investment in affiliated security. This Fund is advised by Pear Tree Advisors, Inc. which also serves as advisor to Pear Tree PanAgora Emerging Markets Fund. |
(a) | Non-income producing security. |
(b) | All or a portion of this security was out on loan. |
(c) | ADR—American Depositary Receipts |
(d) | GDR—Global Depositary Receipts |
(e) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $109,335,546 was as follows: |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $ | 5,689,315 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (3,769,040) | |
Net unrealized appreciation/(depreciation) | $ | 1,920,275 |
The accompanying notes are an Integral part or these financial statements.
33
PEAR TREE PANAGORA EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
The percentage of each investment category is calculated as a percentage of net assets.
Pie Chart data:
Industry sector diversification | Percent of net assets | |
Information Technology | 7.1% | |
Consumer Discretionary | 6.0% | |
Financials | 5.8% | |
Consumer Staples | 5.6% | |
Telecommunication Services | 5.4% | |
Materials | 5.0% | |
Utilities | 3.7% | |
Industrials | 3.5% | |
Energy | 3.5% | |
Health Care | 1.1% | |
Real Estate | 0.3% | |
Mutual Funds | 52.6% | |
CASH and other assets (net) | 0.4% |
The accompanying notes are an Integral part or these financial statements.
34
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock—98.2% | ||||
Shares | Value | |||
BRAZIL—2.4% | ||||
Banco do Brasil S.A. | 5,700 | $ | 60,872 | |
BRF S.A. | 11,700 | 142,855 | ||
CCR S.A. | 11,400 | 65,072 | ||
Cielo S.A. | 22,976 | 205,696 | ||
Embraer S.A. (c) | 3,663 | 80,879 | ||
ENGIE Brasil Energia S.A. | 1,900 | 21,252 | ||
Hypermarcas S.A. | 19,300 | 176,997 | ||
Kroton Educacional S.A. | 15,700 | 65,934 | ||
Localiza Rent a Car S.A. | 4,100 | 54,028 | ||
Lojas Americanas S.A. | 13,650 | 57,238 | ||
Lojas Renner S.A | 6,800 | 59,781 | ||
Odontoprev S.A. | 23,900 | 85,406 | ||
Qualicorp S.A. | 10,400 | 67,915 | ||
Telefonica Brasil S.A. (c) | 5,751 | 85,402 | ||
Ultrapar Participacoes S.A. | 3,600 | 81,536 | ||
Vale S.A. | 9,200 | 86,670 | ||
Weg S.A. | 9,780 | 53,814 | ||
1,451,347 | ||||
CHILE—5.2% | ||||
Aguas Andinas S.A. | 226,697 | 128,381 | ||
AES Gener S.A. | 290,095 | 116,686 | ||
Banco de Chile | 1,280,282 | 153,031 | ||
Banco de Credito e Inversiones | 2,321 | 126,884 | ||
Banco Santander Chile (c) | 7,218 | 181,028 | ||
Cencosud S.A. | 65,108 | 198,820 | ||
Colbun S.A. | 557,708 | 123,538 | ||
Compania Cervecerias Unidas S.A. (b)(c) | 7,820 | 197,612 | ||
Empresa Nacional de Telecomunicaciones S.A. (a) | 23,218 | 280,493 | ||
Empresas CMPC S.A. | 87,774 | 213,410 | ||
Empresas Copec S.A. | 23,802 | 258,372 | ||
EnelAmericas S.A. (c) | 11,249 | 116,877 | ||
Enel Chile S.A. (c) | 18,822 | 103,521 | ||
EnelGeneracion Chile S.A. (c) | 3,670 | 81,621 | ||
Itaú CorpBanca (c) | 9,996 | 135,746 | ||
LATAM Airlines Group S.A. (a) | 17,862 | 225,189 | ||
Quimica y Minera de Chile S.A. (c) | 4,793 | 164,735 | ||
S.A.C.I. Falabella | 34,029 | 283,053 | ||
3,088,997 | ||||
CHINA—4.2% | ||||
Anhui Conch Cement Company Limited H | 43,000 | 146,070 | ||
Bank of Communications Co., Ltd. H | 40,000 | 31,087 |
The accompanying notes are an Integral part or these financial statements.
35
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
CHINA (continued) | ||||
Beijing Enterprises Holdings Limited | 25,500 | $ | 131,903 | |
BYD Co., Ltd. H Shares | 2,500 | 13,864 | ||
China Coal Energy Co., Ltd. (a) | 284,000 | 143,250 | ||
China Communications Construction Co., Ltd., Class H | 15,000 | 21,154 | ||
China Construction Bank Corporation | 157,000 | 126,261 | ||
China National Building Material Co., Ltd. H | 200,000 | 128,674 | ||
China Pacific Insurance Group H Shares | 10,800 | 38,980 | ||
China Petroleum & Chemical Corporation | 212,000 | 171,857 | ||
China Shenhua Energy Co., Ltd. | 32,000 | 74,281 | ||
China Taiping Insurance Holdings Co., Ltd. (a) | 7,400 | 17,920 | ||
China Telecom Corporation Limited | 362,000 | 176,538 | ||
Chongqing Changan Automobile Co., Ltd. B | 57,000 | 79,211 | ||
Dongfeng Motor Group Company Limited | 114,000 | 128,059 | ||
Industrial & Commercial Bank of China Ltd. | 195,000 | 127,464 | ||
PetroChina Company Limited (c) | 2,193 | 160,637 | ||
Shandong Weigao Group Medical Polymer Co., Ltd. | 268,000 | 191,734 | ||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. B | 19,200 | 30,202 | ||
Sino-Ocean Land Holdings Ltd. | 49,000 | 23,013 | ||
Sinopec Shanghai Petrochemical Co., Ltd. | 169,000 | 93,725 | ||
Tsingtao Brewery Co., Ltd. | 36,000 | 165,835 | ||
Yanzhou Coal Mining Company Limited | 176,000 | 136,785 | ||
Zhejiang Expressway Co., Ltd. | 114,000 | 149,035 | ||
2,507,539 | ||||
COLOMBIA—1.1% | ||||
Cementos Argos S.A. | 29,769 | 121,933 | ||
Ecopetrol S.A. (a) | 533,040 | 249,785 | ||
Grupo Argos S.A. | 16,886 | 118,634 | ||
Interconexion Electrica S.A. | 46,282 | 186,356 | ||
676,708 | ||||
CZECH REPUBLIC—1.1% | ||||
CEZ A.S. | 10,798 | 186,366 | ||
Czech Republic, A.S. | 8,560 | 95,895 | ||
Komercni Banka A.S. | 5,748 | 213,885 | ||
Moneta Money Bank A.S. (a)(d) | 51,081 | 173,494 | ||
669,640 | ||||
EGYPT—1.0% | ||||
Commercial International Bank (a) | 47,530 | 197,783 | ||
Global Telecom Holding S.A.E. (a)(b)(e) | 111,892 | 210,357 |
The accompanying notes are an Integral part or these financial statements.
36
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
EGYPT (continued) | ||||
Talaat Moustafa Group (TMG) Holding | 385,216 | $ | 196,129 | |
604,269 | ||||
GREECE—1.3% | ||||
Folli-Follie S.A. (a) | 6,639 | 127,476 | ||
Hellenic Telecommunication Organization S.A. | 15,732 | 148,091 | ||
Jumbo S.A. | 7,684 | 121,485 | ||
Opap S.A. | 14,887 | 139,181 | ||
Titan Cement Company S.A. | 9,850 | 251,824 | ||
788,057 | ||||
HONG KONG—1.5% | ||||
AAC Technologies Holdings Inc. | 6,500 | 76,069 | ||
China Huishan Dairy Holdings Co., Ltd. (b) | 208,000 | 11,241 | ||
China Jinmao Holdings Group Ltd. | 50,000 | 16,020 | ||
China Mengniu Dairy Company Limited | 78,000 | 161,588 | ||
China Merchants Holdings International Co., Ltd. | 6,000 | 17,564 | ||
China Mobile Limited | 18,500 | 202,458 | ||
GCL-Poly Energy Holdings Ltd. (a) | 648,000 | 85,882 | ||
Hanergy Thin Film Power Group Ltd. *(a) | 36,000 | — | ||
Soho China Limited | 31,000 | 16,594 | ||
Sun Art Retail Group Ltd. | 154,000 | 144,258 | ||
Want Want China Holdings Limited | 254,000 | 175,835 | ||
907,509 | ||||
HUNGARY—0.8% | ||||
MOL Hungarian Oil an Gas Nyrt. | 2,764 | 189,591 | ||
OTP Bank Nyrt. | 4,484 | 125,715 | ||
Richter Gedeon Nyrt. | 7,397 | 168,358 | ||
483,664 | ||||
INDIA—5.6% | ||||
Adani Ports & Special Economic Zone Ltd. (a) | 21,197 | 111,281 | ||
Apollo Hospitals Enterprise Ltd. (a) | 6,241 | 111,999 | ||
Bajaj Finance Ltd. (a) | 1,472 | 92,489 | ||
Bharat Heavy Electricals Ltd. | 46,739 | 117,324 | ||
Bharti Airtel Ltd. | 15,428 | 82,741 | ||
Bharti Infratel Ltd. | 24,442 | 122,257 | ||
Coal India Ltd. | 32,375 | 146,083 | ||
Container Corporation of India Ltd. | 8,466 | 165,448 | ||
Dabur India Ltd. | 42,635 | 182,102 | ||
GAIL (India) Ltd. | 14,131 | 81,920 | ||
HCL Technologies Ltd. | 14,351 | 193,601 |
The accompanying notes are an Integral part or these financial statements.
37
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
INDIA (continued) | ||||
Hindustan Unilever Ltd. | 8,397 | $ | 117,908 | |
Housing Development Finance Corp Ltd. | 3,730 | 86,154 | ||
Idea Cellular Ltd. | 55,898 | 74,118 | ||
Indiabulls Housing Finance Limited | 4,642 | 71,373 | ||
Infosys Technologies Ltd. (c) | 6,000 | 94,800 | ||
ITC Ltd. | 43,137 | 186,505 | ||
Larsen & Toubro Ltd. | 7,009 | 169,593 | ||
Mahindra & Mahindra Financial Services Ltd. | 17,100 | 82,979 | ||
Marico Ltd. | 15,237 | 69,292 | ||
Nestle India Ltd. | 659 | 67,691 | ||
NTPC Limited | 75,599 | 193,087 | ||
Piramal Enterprises Ltd. (a) | 3,581 | 105,001 | ||
Shriram Transport Finance Co., Ltd. | 5,000 | 83,006 | ||
Siemens Ltd. | 8,506 | 164,396 | ||
Tata Consultancy Services Ltd. | 2,375 | 88,625 | ||
Tech Mahindra Ltd. | 12,217 | 86,075 | ||
United Spirits Ltd. (a) | 1,879 | 62,937 | ||
Wipro Ltd. | 12,000 | 95,209 | ||
3,305,994 | ||||
INDONESIA—6.4% | ||||
PT Adaro Energy Tbk | 1,385,800 | 181,993 | ||
PT AKR Corporindo Tbk | 423,500 | 198,632 | ||
PT Astra International Tbk | 346,700 | 224,403 | ||
PT Bank Central Asia Tbk | 95,600 | 118,733 | ||
PT Gudang Garam Tbk | 24,900 | 122,440 | ||
PT Hanjaya Mandala Sampoerna Tbk | 365,000 | 106,825 | ||
PT Indocement Tunggal Prakarsa Tbk | 219,400 | 273,314 | ||
PT Indofood CBP Sukses Makmur Tbk | 173,400 | 106,053 | ||
PT Indofood Sukses Makmur Tbk | 169,300 | 101,640 | ||
PT Jasa Marga (Persero) Tbk | 441,200 | 152,966 | ||
PT Kalbe Farma Tbk | 2,372,600 | 274,196 | ||
PT Matahari Department Store Tbk | 158,400 | 156,611 | ||
PT Media Nusantara Citra Tbk | 1,054,800 | 146,440 | ||
PT Perusahaan Gas Negara (Persero) Tbk | 1,075,300 | 204,158 | ||
PT Semen Indonesia (Persero) Tbk | 247,300 | 167,026 | ||
PT Surya Citra Media Tbk | 755,400 | 153,058 | ||
PT Telekomunikasi Indonesia Tbk (c) | 6,372 | 198,615 | ||
PT Unilever Indonesia Tbk | 32,200 | 104,691 | ||
PT United Tractors Tbk | 127,500 | 253,555 | ||
PT Waskita Karya (Persero) Tbk | 963,100 | 171,292 | ||
PT XL Axiata Tbk (a) | 721,600 | 165,705 |
The accompanying notes are an Integral part or these financial statements.
38
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
INDONESIA (continued) | ||||
Tower Bersama Infrastructure | 478,700 | $ | 195,784 | |
3,778,130 | ||||
MALAYSIA—6.5% | ||||
Alliance Financial Group Berhad | 195,800 | 180,514 | ||
AMMB Holdings Berhad | 165,000 | 173,370 | ||
Astro Malaysia Holdings Berhad | 298,500 | 184,813 | ||
Axiata Group Berhad | 78,200 | 89,412 | ||
Berjaya Sports Toto Berhad | 323,435 | 212,676 | ||
CIMB Group Holdings Berhad | 152,300 | 191,687 | ||
DiGi.Com Berhad | 43,400 | 50,309 | ||
Genting Berhad | 70,800 | 153,423 | ||
Hartalega Holdings Berhad | 240,300 | 269,323 | ||
Hong Leong Bank Berhad | 59,500 | 185,000 | ||
IHH Healthcare Berhad | 220,400 | 298,814 | ||
Lafarge Malaysia Berhad | 173,900 | 263,276 | ||
Maxis Berhad | 17,700 | 25,757 | ||
Petronas Chemicals Group Berhad | 83,600 | 145,457 | ||
Petronas Dagangan Berhad | 26,900 | 145,882 | ||
Petronas Gas Berhad | 46,700 | 208,517 | ||
PPB Group Berhad | 55,100 | 208,423 | ||
Public Bank Bhd | 40,500 | 182,115 | ||
Sapura Kencana Petroleum Berhad (a) | 229,400 | 94,341 | ||
Telekom Malaysia Berhad | 72,600 | 105,320 | ||
Tenaga Nasional Berhad | 53,400 | 165,551 | ||
YTL Corporation Berhad | 336,100 | 113,160 | ||
YTL Power International Berhad | 574,200 | 197,217 | ||
3,844,357 | ||||
MEXICO—5.9% | ||||
Alfa S.A.B. de C.V., Series A | 99,000 | 143,752 | ||
América Móvil S.A.B. Series L (c) | 18,222 | 258,206 | ||
Cemex S.A. de C.V. (a)(c) | 14,058 | 127,506 | ||
El Puerto de Liverpool S.A.B. de C.V. | 39,210 | 304,304 | ||
Fibra Uno Administración S.A. de C.V. | 160,684 | 273,074 | ||
Fomento Económico Mexicano S.A.B. (c) | 832 | 73,649 | ||
Gentera SAB de C.V. | 153,500 | 251,983 | ||
Grupo Aeroportuario del Pacίfico S.A.B. (c) | 1,490 | 144,679 | ||
Grupo Aeroportuario del Sureste, S. A. B. de C.V., Series B | 8,105 | 139,574 | ||
Grupo Carso SAB de C.V., Series A1 | 18,200 | 82,895 | ||
Grupo Financiero Banorte SAB de C.V. | 21,100 | 120,693 | ||
Grupo Financiero Inbursa SAB de C.V. | 64,100 | 105,498 | ||
Grupo Lala SAB de C.V. | 101,900 | 183,832 |
The accompanying notes are an Integral part or these financial statements.
39
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
MEXICO (continued) | ||||
Grupo Mexico S.A.B. de C.V., Series B | 50,700 | $ | 151,194 | |
Grupo Televisa S.A.B. (c) | 7,161 | 185,756 | ||
Industrias Penoles SAB de C.V. | 5,970 | 152,775 | ||
Infraestructura Energetica Nova SAB de C.V. | 68,900 | 327,207 | ||
Mexichem SAB de C.V. | 46,638 | 126,255 | ||
Promotora Y Operadora de Infraestructura, S.A.B. de C.V. (a) | 20,285 | 217,696 | ||
Santander Mexico SAB de C.V. | 67,800 | 121,594 | ||
3,492,122 | ||||
PERU—0.6% | ||||
Credicorp Ltd. | 1,061 | 173,261 | ||
Southern Copper Corporation | 4,615 | 165,633 | ||
338,894 | ||||
PHILIPPINES—7.4% | ||||
Aboitiz Equity Ventures, Inc. | 137,430 | 203,920 | ||
Aboitiz Power Corporation | 471,200 | 392,080 | ||
Alliance Global Group, Inc. | 553,900 | 139,979 | ||
Ayala Corporation | 8,000 | 134,729 | ||
Ayala Land Inc. | 203,000 | 133,715 | ||
Bank of the Philippine Islands | 78,016 | 157,354 | ||
BDO Unibank, Inc. | 33,224 | 77,870 | ||
DMCI Holdings, Inc. | 668,550 | 151,898 | ||
Energy Development Corporation | 2,447,100 | 293,603 | ||
Globe Telecom, Inc. | 7,640 | 309,407 | ||
GT Capital Holdings Inc. | 5,230 | 119,349 | ||
International Container Terminal Services, Inc. | 118,840 | 212,929 | ||
JG Summit Holdings, Inc. | 112,940 | 183,112 | ||
Jollibee Foods Corporation | 112,010 | 440,896 | ||
Megaworld Corporation | 1,381,000 | 93,030 | ||
Metro Pacific Investments Corporation | 978,900 | 117,448 | ||
Metropolitan Bank & Trust Company | 61,658 | 98,309 | ||
PLDT Inc. | 10,056 | 329,889 | ||
Robinsons Land Corporation | 228,900 | 104,927 | ||
SM Investments Corporation | 13,677 | 189,992 | ||
SM Prime Holdings, Inc. | 176,800 | 99,720 | ||
Universal Robina Corporation | 135,030 | 440,008 | ||
4,424,164 | ||||
POLAND—4.5% | ||||
Bank Pekao S.A. | 4,896 | 163,202 | ||
CCC S.A. | 2,574 | 154,585 |
The accompanying notes are an Integral part or these financial statements.
40
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
POLAND (continued) | ||||
Cyfrowy Polsat S.A. (a) | 39,652 | $ | 242,138 | |
Eurocash S.A. | 30,896 | 248,777 | ||
Grupa Azoty S.A. | 6,229 | 108,612 | ||
Grupa LOTOS S.A. (a) | 16,330 | 225,112 | ||
LPP S.A. | 117 | 200,607 | ||
mBank S.A. (a) | 1,730 | 163,049 | ||
Orange Polska S.A. | 207,094 | 241,952 | ||
PGE S.A. | 55,048 | 158,354 | ||
Polski Koncern Naftowy ORLEN S.A. | 7,790 | 196,571 | ||
Polskie Gornictwo Naftowe i Gazownictwo S.A. | 104,320 | 155,837 | ||
Synthos S.A. | 113,546 | 150,422 | ||
Tauron Polska Energia S.A. | 297,143 | 254,183 | ||
2,663,401 | ||||
QATAR—4.6% | ||||
Barwa Real Estate Company Q.S.C. | 10,148 | 99,638 | ||
Commercial Bank of Qatar Q.S.C. (a) | 18,683 | 174,202 | ||
Doha Bank Q.S.C. | 18,495 | 159,497 | ||
Ezdan Holding Group Q.S.C. | 21,804 | 94,615 | ||
Industries Qatar Q.S.C. | 11,517 | 348,885 | ||
Masraf Al Rayan Q.S.C. (a) | 10,865 | 125,775 | ||
Ooredoo Q.S.C. | 12,131 | 321,841 | ||
Qatar Electricity & Water Company Q.S.C. | 7,498 | 453,039 | ||
Qatar Gas Transport Company Limited (Nakilat) Q.S.C. | 76,007 | 443,588 | ||
Qatar Insurance Company | 10,599 | 204,639 | ||
Qatar Islamic Bank SAQ | 4,664 | 131,039 | ||
Qatar National Bank SAQ | 4,060 | 162,908 | ||
2,719,666 | ||||
RUSSIA—4.4% | ||||
ALROSA ao | 109,100 | 176,137 | ||
Federal Hydro-Generating Company RusHydro OAO | 12,802,000 | 212,354 | ||
Magnit P.J.S.C. (Reg S) (e) | 8,077 | 308,541 | ||
MMC Norilsk Nickel P.J.S.C. (c) | 12,686 | 199,424 | ||
Mobile TeleSystems (c) | 19,024 | 209,835 | ||
Moscow Exchange MICEX-RTS | 117,750 | 234,603 | ||
NovaTek OAO (Reg S) (e) | 776 | 96,612 | ||
OAO Rostelecom | 128,730 | 175,441 | ||
PhosAgro (e) | 17,510 | 255,646 | ||
Sberbank | 47,290 | 133,835 | ||
Severstal (e) | 13,374 | 192,719 | ||
Sistema JSFC (Reg S) (e) | 16,109 | 144,176 |
The accompanying notes are an Integral part or these financial statements.
41
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
RUSSIA (continued) | ||||
VTB Bank OJSC | 238,070,000 | $ | 278,142 | |
2,617,465 | ||||
SOUTH AFRICA—3.6% | ||||
Aspen Pharmacare Holdings Limited | 4,802 | 98,256 | ||
Bidvest Group Limited | 14,289 | 163,757 | ||
Discovery Ltd. | 14,321 | 137,287 | ||
Exxaro Resources Ltd. | 19,049 | 167,261 | ||
Hyprop Investments Limited | 2,183 | 19,950 | ||
Imperial Holdings Limited | 4,233 | 52,021 | ||
Life Healthcare Group Holdings Ltd. | 46,623 | 100,668 | ||
Massmart Holdings Ltd. | 5,100 | 51,724 | ||
Mondi Limited | 3,926 | 93,724 | ||
Mr Price Group Ltd. | 3,994 | 47,567 | ||
MTN Group Limited | 8,028 | 72,948 | ||
Naspers Limited N Shares | 446 | 76,901 | ||
Netcare Limited | 49,895 | 95,135 | ||
Pick n Pay Stores Ltd. | 30,164 | 149,469 | ||
Pioneer Foods Group Ltd. | 5,782 | 76,057 | ||
Rand Merchant Investment Holdings | 6,849 | 21,068 | ||
Redefine Properties Ltd. | 26,601 | 21,814 | ||
Sappi Ltd. | 10,116 | 68,662 | ||
Sasol Ltd. | 1,873 | 54,488 | ||
Shoprite Holdings Ltd. | 4,380 | 63,157 | ||
Spar Group Limited (The) | 5,801 | 75,291 | ||
Steinhoff International Holdings N.V. | 7,219 | 34,503 | ||
Telkom South Africa Limited | 15,855 | 88,603 | ||
Tiger Brands Limited | 2,856 | 85,183 | ||
Truworths International Ltd. | 9,347 | 60,296 | ||
Tsogo Sun Holdings Ltd. | 31,025 | 63,870 | ||
Vodacom Group (Proprietary) Limited | 8,778 | 99,377 | ||
2,139,037 | ||||
SOUTH KOREA—6.2% | ||||
Amore Pacific Corporation | 508 | 127,420 | ||
Celltrion Inc. (a) | 852 | 68,645 | ||
Daelim Industrial Co., Ltd. | 1,154 | 83,483 | ||
Daewoo Securities Co., Ltd. (b) | 8,361 | 67,588 | ||
Dongbu Insurance Co., Ltd. | 2,011 | 115,089 | ||
GS Holdings Corp. | 3,967 | 209,648 | ||
Hana Financial Group, Inc. | 1,389 | 45,894 | ||
Hotel Shilla Co., Ltd. (b) | 2,435 | 98,201 | ||
Hyundai Marine & Fire Insurance, Co., Ltd. | 4,958 | 155,173 |
The accompanying notes are an Integral part or these financial statements.
42
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
SOUTH KOREA (continued) | ||||
Hyundai Wia Corp. | 1,684 | $ | 102,248 | |
Industrial Bank of Korea | 12,888 | 140,601 | ||
Kakao Corp. (b) | 1,201 | 89,245 | ||
Kangwon Land Inc. | 4,846 | 165,534 | ||
Korea Aerospace Industries, Ltd. | 290 | 14,937 | ||
Korea Electric Power Corporation | 6,395 | 265,624 | ||
Korea Gas Corporation | 4,623 | 185,821 | ||
Korea Kumho Petrochemical Co., Ltd. | 357 | 25,156 | ||
Korea Zinc Co., Ltd. | 418 | 161,474 | ||
LG Display Co., Ltd. | 4,296 | 116,207 | ||
LG Innotek Co., Ltd. | 657 | 80,194 | ||
LG Uplus Corp. | 13,220 | 169,048 | ||
Naver Corp. | 102 | 77,984 | ||
NCSoft Corporation | 330 | 90,003 | ||
Samsung C&T Corp. | 196 | 22,346 | ||
Samsung Electro-Mechanics Co., Ltd. | 2,124 | 132,002 | ||
Samsung SDI Company, Ltd. | 872 | 107,606 | ||
Samsung SDS Co., Ltd. | 688 | 82,132 | ||
Shinhan Financial Group Co., Ltd. | 1,180 | 49,171 | ||
SK Hynix Inc. | 1,486 | 67,105 | ||
SK Innovation Co., Ltd. | 1,076 | 160,202 | ||
SK Telecom Co., Ltd. (c) | 6,435 | 162,033 | ||
S-Oil Corp. | 1,916 | 172,188 | ||
Yuhan Co., Ltd. | 459 | 91,324 | ||
3,701,326 | ||||
TAIWAN—7.8% | ||||
Asia Cement Corporation | 92,808 | 93,596 | ||
Asia Pacific Telecom Co., Ltd. (a) | 401,000 | 131,761 | ||
China Airlines Ltd. | 464,000 | 161,331 | ||
China Development Financial Holding Corporation | 220,000 | 60,397 | ||
China Steel Corporation | 114,208 | 95,228 | ||
Chunghwa Telecom Co., Ltd. (c) | 4,621 | 157,022 | ||
EVA Airways Corporation | 260,813 | 138,390 | ||
Evergreen Marine Corporation (a) | 181,000 | 84,706 | ||
Far Eastern New Century Corporation | 99,473 | 86,220 | ||
Far EasTone Telecommunications Co., Ltd. | 64,000 | 157,139 | ||
First Financial Holding Company Ltd. | 270,357 | 164,838 | ||
Formosa Chemicals & Fiber Corporation | 62,330 | 193,918 | ||
Formosa Petrochemical Corporation | 83,000 | 289,956 | ||
Formosa Plastics Corporation | 32,480 | 96,875 | ||
Fubon Financial Holding Co., Ltd. | 87,000 | 141,930 |
The accompanying notes are an Integral part or these financial statements.
43
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
TAIWAN (continued) | ||||
OBI Pharma, Inc. (a) | 9,000 | $ | 80,976 | |
Pou Chen Corporation | 97,000 | 134,267 | ||
President Chain Store Corp. | 40,000 | 329,571 | ||
SinoPac Financial Holdings Company | 214,363 | 66,904 | ||
Standard Foods Corporation | 63,595 | 158,031 | ||
Synnex Technology International Corp. | 125,900 | 135,475 | ||
TaiMed Biologics Inc. (a) | 20,000 | 117,327 | ||
Taishin Financial Holding Co., Ltd. | 162,928 | 67,926 | ||
Taiwan Cooperative Financial Holding Co., Ltd. | 332,826 | 165,631 | ||
Taiwan Fertilizer Co., Ltd. | 142,000 | 196,556 | ||
Taiwan Mobile Co., Ltd. | 46,000 | 169,037 | ||
Taiwan Semiconductor Manufacturing Co., Ltd. (c) | 4,357 | 143,084 | ||
TECO Electric & Machinery Co., Ltd. | 105,000 | 106,756 | ||
Uni-President Enterprises Corporation | 169,339 | 317,554 | ||
Wistron Corporation | 93,741 | 85,886 | ||
Yuanta Financial Holding Co., Ltd. | 156,660 | 66,087 | ||
Yulon Motor Co., Ltd. | 185,000 | 172,242 | ||
Zhen Ding Technology Holding Limited | 34,000 | 79,895 | ||
4,646,512 | ||||
THAILAND—7.9% | ||||
Advanced Info Service For Rg | 32,700 | 169,389 | ||
Airports of Thailand PLC (b) | 113,000 | 129,073 | ||
Airports of Thailand Public Company Limited (f) | 39,000 | 44,546 | ||
Bangkok Bank PCL (f) | 14,700 | 77,643 | ||
Bangkok Dusit Medical Services (b)(f) | 223,900 | 138,135 | ||
Bangkok Dusit Medical Services PLC | 257,800 | 159,050 | ||
Bangkok Expressway and Metro PCL | 591,100 | 130,734 | ||
BEC World PCL | 176,500 | 89,374 | ||
BEC World Public Co., Ltd. (f) | 135,500 | 68,613 | ||
BerliJucker Public Company Limited (f) | 71,300 | 96,485 | ||
BTS Group Holdings PCL (b) | 498,100 | 122,487 | ||
BTS Group Holdings PCL (f) | 455,000 | 111,888 | ||
Bumrungrad Hospital PCL (f) | 12,000 | 63,907 | ||
Bumrungrad Hospital PCL | 32,200 | 171,483 | ||
Central Pattana PCL | 51,100 | 84,392 | ||
Central Pattana Public Company Limited (f) | 36,000 | 59,454 | ||
Charoen Pokphand Foods PCL | 176,600 | 142,616 | ||
CP ALL PCL | 102,100 | 175,304 | ||
Delta Electronics PCL | 82,500 | 210,076 | ||
Electricity Generating PCL | 25,100 | 156,316 | ||
Electricity Generating PCL (f) | 15,900 | 99,021 |
The accompanying notes are an Integral part or these financial statements.
44
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
THAILAND (continued) | ||||
Glow Energy PCL | 87,300 | $ | 209,596 | |
Home Product Center PCL | 505,419 | 141,936 | ||
Indorama Ventures Public Company Limited | 117,000 | 120,022 | ||
Kasikornbank PCL | 14,900 | 81,953 | ||
Kasikornbank PCL (f) | 9,000 | 49,502 | ||
Krung Thai Bank PCL | 134,200 | 79,670 | ||
Krung Thai Bank PCL (f) | 48,200 | 28,615 | ||
Minor International PCL | 114,190 | 122,124 | ||
Minor International PCL (f) | 14,400 | 15,401 | ||
PTT Global Chemical PCL | 68,800 | 146,660 | ||
Robinson Department Store Public Company Ltd. (a) | 40,400 | 75,245 | ||
Robinson Department Store PCL (a)(f) | 25,100 | 46,749 | ||
Siam Cement Pub Co-for Reg | 10,350 | 162,648 | ||
Siam Commercial Bank PCL | 23,000 | 109,101 | ||
Siam Commercial Bank PCL (f) | 23,500 | 111,473 | ||
Thai Oil PCL | 39,600 | 87,008 | ||
Thai Oil PCL (f) | 26,000 | 57,126 | ||
Thai Union Frozen Products PCL (f) | 121,400 | 75,605 | ||
Thai Union Group PCL | 241,600 | 150,462 | ||
TMB Bank Public Company Limited | 1,274,600 | 90,506 | ||
TMB Bank Public Company Limited (f) | 933,900 | 66,314 | ||
True Corp. PCL (b) | 514,289 | 101,773 | ||
True Corp. PCL (f) | 224,800 | 44,486 | ||
4,673,961 | ||||
TURKEY—4.2% | ||||
Anadolu Efes Biracilik VE | 15,911 | 86,444 | ||
Arcelik A.S. | 24,815 | 154,216 | ||
BIM Birlesik Magazalar A.S. | 7,186 | 110,167 | ||
Coca-Cola Icecek A.S. | 9,495 | 92,808 | ||
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 199,402 | 158,592 | ||
Eregli Demirve Celik Fabrikalari T.A.S. | 97,857 | 158,343 | ||
Ford Otomotiv Sanayi A.S. | 16,262 | 158,773 | ||
Ko Holding A.S. | 39,221 | 165,113 | ||
Petkim Petrokimya Holding A.S. | 117,588 | 163,503 | ||
TAV Havalimanlari Holding A.S. | 26,737 | 106,251 | ||
Tofas Turk Otomobil Fabrikasi A.S. | 24,383 | 182,024 | ||
Tupras—Turkiye Petrol Rafinerileri A.S. | 9,939 | 245,868 | ||
Turk Hava Yollari A.O. (a) | 92,042 | 138,079 | ||
Turk Telekomunikasyon A.S. | 94,130 | 152,312 | ||
TurkcellI letisim Hizmetleri A.S. | 47,032 | 154,398 | ||
Turkiye Sise ve Cam Fabrikalari A.S. | 132,214 | 151,205 |
The accompanying notes are an Integral part or these financial statements.
45
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
TURKEY (continued) | ||||
Ulker Biskuvi Sanayi A.S. | 24,756 | $ | 125,333 | |
2,503,429 | ||||
UNITED ARAB EMERATES—4.0% | ||||
Abu Dhabi Commercial Bank | 71,436 | 132,253 | ||
Aldar Properties P.J.S.C. | 219,124 | 134,827 | ||
DP World Ltd. | 21,762 | 467,883 | ||
Dubai Islamic Bank PSJ | 103,127 | 157,232 | ||
DXB Entertainments P.J.S.C. (a) | 1,199,074 | 332,985 | ||
Emaar Malls Group P.J.S.C. | 225,116 | 161,804 | ||
Emaar Properties P.J.S.C. | 57,150 | 113,584 | ||
Emirates Telecommunications Group Co. P.J.S.C. | 104,045 | 511,302 | ||
First Gulf Bank P.J.S.C. | 45,685 | 160,451 | ||
National Bank of Abu Dhabi P.J.S.C. | 65,182 | 181,899 | ||
2,354,220 | ||||
TOTAL COMMON STOCK | ||||
(Cost $57,934,130) | 58,380,408 | |||
Preferred Stock—1.3% | ||||
BRAZIL—0.3% | ||||
Banco Bradesco S.A. | 4,092 | 41,901 | ||
Itausa-Investimentos Itau S.A. | 40,619 | 122,029 | ||
163,930 | ||||
CHILE—0.2% | ||||
Embotelladora Andina | 38,713 | 149,712 | ||
COLOMBIA—0.4% | ||||
Grupo Aval Acciones y Valores S.A. | 495,934 | 201,411 | ||
SOUTH KOREA—0.4% | ||||
Hyundai Motor Company Ltd. | 1,057 | 97,826 | ||
LG Chem Ltd. | 816 | 139,004 | ||
236,830 | ||||
TOTAL PREFERRED STOCK | ||||
(Cost $791,245) | 751,883 | |||
Rights—0.0% | ||||
QATAR—0.0% | ||||
Doha Bank Q.S.C. (a) | 3,699 | 6,502 |
The accompanying notes are an Integral part or these financial statements.
46
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||||
SOUTH AFRICA—0.0% | |||||
Life Healthcare Group Holdings Ltd. (a) | 15,953 | $ | 5,347 | ||
TOTAL RIGHTS | |||||
(Cost $0) | 11,849 | ||||
Warrants—0.0% | |||||
THAILAND—0.0% | |||||
Indorama Ventures Public Company Limited (a) | |||||
(Cost $0) | 1 | — | |||
Short Term Investments—0.1% | |||||
Par Value | Value | ||||
State Street Bank & Trust Co., Repurchase Agreement | |||||
.05%, 04/03/17, (Dated 03/31/17), Collateralized by | |||||
45,000 par U.S. Treasury Note-1.00% due 05/15/2018, | |||||
Market Value $45,106, Repurchase Proceeds $39,359 | |||||
(Cost $39,359) | $ | 39,359 | 39,359 | ||
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS | |||||
PURCHASED WITH CASH COLLATERAL FROM SECURITIES | |||||
LOANED) | |||||
(Cost $58,764,734) | 59,183,499 | ||||
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM | |||||
SECURITIES LOANED—1.8% | |||||
Money Market—1.8% | |||||
BlackRock FedFund (Institutional Shares) | |||||
(Cost $1,090,602) | 1,090,602 | 1,090,602 | |||
TOTAL INVESTMENTS—101.4% | |||||
(Cost $59,855,336) | 60,274,101 | ||||
OTHER ASSETS & LIABILITIES (Net)—(1.4%) | (807,030) | ||||
NET ASSETS—100% | $ | 59,467,071 |
* | Fair valued by the Valuation Committee as delegated by the Trustees of the Pear Tree Funds that represent 0.00% of net assets as of March 31, 2017. |
(a) | Non-income producing security. |
(b) | All or a portion of this security was out on loan. |
(c) | ADR—American Depository Receipts |
(d) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the fiscal period, the value of these securities amounted to $173,494 or 0.29% of net assets. |
The accompanying notes are an Integral part or these financial statements.
47
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
(e) | GDR—Global Depository Receipts |
(f) | NVDR—Non-Voting Depository Receipts |
(g) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $59,932,867 was as follows: |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $ | 4,590,632 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (4,249,398) | |
Net unrealized appreciation/(depreciation) | $ | 341,234 |
The percentage of each investment category is calculated as a percentage of net assets.
Pie Chart data:
Industry sector diversification | Percent of net assets |
Financials | 16.4% |
Industrials | 11.3% |
Telecommunication Services | 11.2% |
Consumer Staples | 10.8% |
Consumer Discretionary | 10.6% |
Materials | 10.0% |
Utilities | 8.8% |
Energy | 8.1% |
Health Care | 4.9% |
Information Technology | 4.1% |
Real Estate | 3.3% |
CASH and other assets (net) | 0.5% |
The accompanying notes are an Integral part or these financial statements.
48
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock—99.3% | ||||
Shares | Value | |||
AUSTRALIA—3.7% | ||||
BHP Billiton plc (a) | 1,082,100 | $ | 33,707,415 | |
WorleyParsons Limited | 3,344,600 | 28,126,212 | ||
61,833,627 | ||||
AUSTRIA—2.1% | ||||
Andritz AG | 686,800 | 34,444,984 | ||
BELGIUM—2.3% | ||||
Solvay S.A. | 314,518 | 38,539,172 | ||
CANADA—2.2% | ||||
Methanex Corporation | 775,193 | 36,254,804 | ||
FINLAND—5.1% | ||||
Caverion Corporation | 1,122,766 | 8,863,544 | ||
Kone OYJ, Class B | 686,800 | 30,239,001 | ||
Konecranes OYJ | 978,480 | 34,854,429 | ||
YIT OYJ | 1,444,566 | 9,789,168 | ||
83,746,142 | ||||
FRANCE—10.6% | ||||
Christian Dior S.E. | 173,158 | 40,342,445 | ||
Imerys SA | 490,379 | 41,739,093 | ||
Ipsos | 482,280 | 15,012,535 | ||
Michelin (CGDE) | 325,400 | 39,628,932 | ||
Vinci SA | 498,100 | 39,588,326 | ||
176,311,331 | ||||
GERMANY—16.9% | ||||
BASF SE | 388,000 | 38,565,833 | ||
Deutsche Telekom AG | 1,912,419 | 33,600,846 | ||
Freenet AG | 1,032,809 | 33,685,207 | ||
Hannover Rueck SE | 310,300 | 35,897,986 | ||
Lanxess AG | 495,300 | 33,320,515 | ||
Linde AG | 216,500 | 36,151,189 | ||
Muenchener Rueckvers AG | 192,430 | 37,751,472 | ||
Symrise AG | 464,550 | 30,978,547 | ||
279,951,595 | ||||
INDIA—1.7% | ||||
Infosys Limited—SP (a) | 1,767,392 | 27,924,794 | ||
IRELAND—2.4% | ||||
Greencore Group plc | 12,773,638 | 39,358,486 |
The accompanying notes are an Integral part or these financial statements.
49
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
ISRAEL—1.2% | ||||
Teva Pharmaceuticals SP (a) | 602,460 | $ | 19,332,941 | |
ITALY—0.5% | ||||
Trevi FinanziariaSpA | 7,602,219 | 7,660,429 | ||
JAPAN—6.5% | ||||
Asahi Group Holdings Limited | 1,017,200 | 38,414,876 | ||
KDDI Corporation | 1,042,100 | 27,327,944 | ||
Showa Denko K.K. | 2,342,770 | 41,735,683 | ||
107,478,503 | ||||
NORWAY—6.1% | ||||
DNB Bank ASA | 2,241,430 | 35,568,298 | ||
SpareBank 1 SR-Bank ASA | 3,877,987 | 29,050,878 | ||
Yara International ASA | 931,600 | 35,909,728 | ||
100,528,904 | ||||
PUERTO RICO—0.9% | ||||
Popular, Inc. | 369,250 | 15,039,553 | ||
RUSSIA—0.9% | ||||
Sberbank of Russia (a) | 1,355,000 | 15,636,700 | ||
SINGAPORE—2.3% | ||||
United Overseas Bank Limited | 2,468,200 | 39,066,434 | ||
SOUTH AFRICA—2.1% | ||||
Sasol Limited | 1,178,635 | 34,288,282 | ||
SOUTH KOREA—4.4% | ||||
Kia Motors Corporation | 886,500 | 29,370,317 | ||
Samsung Electronics Company Limited | 23,875 | 43,979,701 | ||
73,350,018 | ||||
SWEDEN—4.7% | ||||
Duni AB | 1,281,600 | 18,788,109 | ||
Loomis AB, Class B | 824,426 | 26,164,785 | ||
Svenska Handelsbanken AB, Class A | 2,418,700 | 33,265,431 | ||
78,218,325 | ||||
SWITZERLAND—1.9% | ||||
Novartis AG | 418,550 | 31,120,749 | ||
THAILAND—4.8% | ||||
Siam Commercial Bank PCL | 8,800,600 | 41,746,025 | ||
Thai Oil PCL | 17,152,000 | 37,685,733 | ||
79,431,758 |
The accompanying notes are an Integral part or these financial statements.
50
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | |||
UNITED KINGDOM—16.0% | ||||
Barratt Developments plc | 6,138,346 | $ | 42,051,688 | |
BBA Aviation plc | 7,111,045 | 27,143,298 | ||
Bellway plc | 1,177,248 | 39,889,253 | ||
International Game Technology plc | 1,284,765 | 30,448,931 | ||
Persimmon plc | 1,619,775 | 42,518,043 | ||
Standard Chartered plc | 4,008,355 | 38,338,279 | ||
Taylor Wimpey plc | 18,602,839 | 45,030,150 | ||
265,419,642 | ||||
TOTAL COMMON STOCK | ||||
(Cost $1,363,661,874) | 1,644,937,173 | |||
Short Term Investments—0.2% | ||||
Par Value | Value | |||
Money Market—0.2% | ||||
State Street Bank Institutional U.S. Government Money | ||||
Market Fund | ||||
(Cost $3,165,984) | $ 3,165,984 | 3,165,984 | ||
TOTAL INVESTMENTS—99.5% | ||||
(Cost $1,366,827,858) | 1,648,103,157 | |||
OTHER ASSETS & LIABILITIES (NET)—0.5% | 8,000,616 | |||
NET ASSETS—100% | $ | 1,656,103,773 |
(a) | ADR—American Depository Receipts |
(b) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $1,370,395,431 was as follows: |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $ | 364,357,041 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (86,649,315) | |
Net unrealized appreciation/(depreciation) | $ | 277,707,726 |
The percentage of each investment category is calculated as a percentage of net assets.
The accompanying notes are an Integral part or these financial statements.
51
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Pie Chart data:
Industry sector diversification | Percent of net assets |
Materials | 22.2% |
Consumer Discretionary | 20.7% |
Financials | 19.4% |
Industrials | 13.2% |
Energy | 6.0% |
Telecommunication Services | 5.7% |
Consumer Staples | 4.7% |
Information Technology | 4.3% |
Health Care | 3.1% |
CASH and other assets (net) | 0.7% |
The accompanying notes are an Integral part or these financial statements.
52
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS
March 31, 2017
Common Stock—95.5% | |||
Shares | Value | ||
AUSTRALIA—7.1% | |||
Asaleo Care Limited | 5,058,400 | $ | 6,799,948 |
Programmed Maintenance Services Limited | 4,077,692 | 5,839,766 | |
Spotless Group Holdings Limited | 15,436,700 | 12,792,751 | |
WorleyParsons Limited | 1,912,500 | 16,083,053 | |
41,515,518 | |||
AUSTRIA—0.5% | |||
Semperit AG Holding | 100,500 | 2,799,425 | |
BELGIUM—0.7% | |||
Kinepolis Group | 83,473 | 4,277,040 | |
BRAZIL—2.0% | |||
Equatorial Energia S.A. | 630,137 | 11,715,184 | |
CHINA—3.4% | |||
China Hongxing Sports Limited * (a) | 10,258,400 | 73,437 | |
Shanghai Mechanical & Electrical Industry Co.Limited—B | 3,811,738 | 8,004,650 | |
Shui On Land Limited | 29,464,500 | 6,634,782 | |
Xinhua Winshare Publishing and Media Co., Limited (a) | 5,898,500 | 5,365,999 | |
20,078,868 | |||
DENMARK—2.3% | |||
DFDS A/S | 242,390 | 13,369,947 | |
EGYPT—0.5% | |||
Egypt Kuwait Holding Company S.A.E. | 4,081,125 | 2,775,165 | |
FRANCE—3.5% | |||
Bonduelle S.C.A. | 108,700 | 3,430,152 | |
Elis SA | 603,100 | 11,883,401 | |
Ipsos | 161,067 | 5,013,735 | |
20,327,288 | |||
GERMANY—4.6% | |||
Freenet AG | 459,400 | 14,983,394 | |
QSC AG | 1,251,100 | 2,078,381 | |
Sixt SE | 196,525 | 10,153,756 | |
27,215,531 | |||
HONG KONG—4.9% | |||
AMVIG Holdings Limited | 7,728,000 | 2,585,414 | |
Samson Holding Limited | 49,999,800 | 3,731,520 | |
Texwinca Holdings Limited | 10,914,200 | 7,344,854 |
The accompanying notes are an Integral part or these financial statements.
53
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||
HONG KONG (continued) | |||
VST Holdings Limited | 8,003,360 | $ | 2,811,412 |
VTech Holdings Limited | 1,005,400 | 12,018,331 | |
| 28,491,531 | ||
INDIA—4.3% | |||
KRBL Limited | 646,753 | 4,103,522 | |
LIC Housing Finance Limited | 1,090,800 | 10,365,414 | |
NIIT Technologies Limited | 536,475 | 3,600,046 | |
South Indian Bank Limited | 22,518,201 | 7,421,106 | |
25,490,088 | |||
IRELAND—4.3% | |||
Glanbia plc | 573,000 | 11,097,239 | |
IFG Group plc | 1,286,085 | 2,324,974 | |
UDG Healthcare plc | 1,310,785 | 11,534,811 | |
24,957,024 | |||
ITALY—2.2% | |||
De'Longhi SpA | 436,289 | 12,722,191 | |
JAPAN—11.8% | |||
Chugoku Marine Paints Limited | 755,000 | 5,603,635 | |
Daicel Corporation | 871,700 | 10,490,910 | |
IBJ Leasing Company, Limited | 588,700 | 12,553,298 | |
Nihon House Holdings Co., Limited | 1,581,900 | 6,928,133 | |
Prima Meat Packers Limited | 3,358,000 | 14,827,337 | |
Unipres Corporation | 601,300 | 12,514,379 | |
VT Holdings Co., Limited | 1,159,000 | 6,012,134 | |
68,929,826 | |||
NETHERLANDS—2.3% | |||
Arcadis NV | 844,800 | 13,356,422 | |
NORWAY—3.3% | |||
ABG Sundal Collier Holding ASA | 4,580,388 | 2,910,573 | |
Borregaard ASA | 645,100 | 7,239,483 | |
SpareBank Nord-Norge | 525,196 | 3,383,245 | |
SpareBank 1 SMN | 398,865 | 3,092,626 | |
SpareBank 1 SR-Bank ASA | 384,826 | 2,882,819 | |
19,508,746 | |||
PHILIPPINES—0.5% | |||
Manila Water Company, Inc. | 5,344,270 | 3,280,588 |
The accompanying notes are an Integral part or these financial statements.
54
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Shares | Value | ||
PORTUGAL—1.2% | |||
Redes Energéticas Nacionais, SGPS, S.A. | 2,313,900 | $ | 6,982,476 |
SWEDEN—3.1% | |||
Duni AB | 210,701 | 3,088,852 | |
Loomis AB, Class B | 392,756 | 12,464,886 | |
Nolato AB, Class B | 93,100 | 2,781,764 | |
18,335,502 | |||
TAIWAN—7.6% | |||
Chong Hong Construction Co., Limited | 2,450,755 | 5,976,959 | |
Holtek Semiconductor, Inc. | 3,928,500 | 6,978,533 | |
Huaku Development Co., Limited | 2,410,100 | 5,552,146 | |
Taiwan Union Technology Corporation | 7,625,000 | 12,866,441 | |
WT Microelectronics Co., Limited | 3,992,240 | 5,835,242 | |
Yageo Corporation | 2,680,800 | 7,306,654 | |
44,515,975 | |||
THAILAND—5.8% | |||
Hana Microelectronics PCL | 6,330,180 | 8,658,231 | |
Ratchaburi Electricity Generating Holding PCL | 4,584,500 | 6,704,143 | |
Thai Union Group PCL | 14,654,496 | 9,126,409 | |
Thanachart Capital PCL | 6,805,400 | 9,555,782 | |
34,044,565 | |||
UNITED KINGDOM—19.6% | |||
BBA Aviation plc | 3,559,200 | 13,585,686 | |
Carillion plc | 3,272,700 | 9,148,565 | |
Clarkson plc | 98,009 | 3,194,340 | |
Conviviality plc | 1,931,100 | 6,596,494 | |
Crest Nicholson Holdings plc | 1,854,900 | 12,625,897 | |
Galliford Try plc | 657,628 | 12,134,727 | |
Go-Ahead Group plc | 449,100 | 9,722,485 | |
Halfords Group plc | 2,478,269 | 11,019,237 | |
Keller Group plc | 644,600 | 7,328,912 | |
Lancashire Holdings Limited | 1,428,930 | 12,046,063 | |
The Restaurant Group plc | 835,700 | 3,493,720 | |
Vitec Group plc | 247,217 | 2,460,598 | |
Wetherspoon (J.D.) plc | 965,600 | 11,438,550 | |
114,795,274 | |||
TOTAL COMMON STOCK | |||
(Cost $487,965,355) | 559,484,174 |
The accompanying notes are an Integral part or these financial statements.
55
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Preferred Stock—2.9% | |||
Shares | Value | ||
GERMANY—2.9% | |||
Dräegerwerk AG | |||
(Cost $13,677,217) | 164,262 | $ | 16,935,024 |
Short Term Investments—1.2% | |||
Par Value | Value | ||
Money Market—1.2% | |||
State Street Bank Institutional U.S. Government Money Market Fund | |||
(Cost $7,157,428) | $7,157,428 | 7,157,428 | |
TOTAL INVESTMENTS—99.6% | |||
(Cost $508,800,000) | 583,576,626 | ||
OTHER ASSETS & LIABILITIES (NET)—0.4% | 2,253,409 | ||
NET ASSETS—100% | $585,830,035 |
* | Fair Valued by Valuation Committee as delegated by the Trustees of the Pear Tree Funds that represent 0.01% of net assets as of March 31, 2017. |
(a) | Non-income producing security |
(b) | At March 31, 2017, the unrealized appreciation of investments based on aggregate cost for federal tax purposes of $509,538,244 was as follows: |
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost | $94,734,048 |
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value | (20,695,666) |
Net unrealized appreciation/(depreciation) | $74,038,382 |
The percentage of each investment category is calculated as a percentage of net assets.
The accompanying notes are an Integral part or these financial statements.
56
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS (continued)
March 31, 2017
Industry sector diversification | Percent of net assets |
Industrials | 24.9% |
Consumer Discretionary | 18.5% |
Financials | 11.8% |
Information Technology | 10.7% |
Consumer Staples | 9.6% |
Utilities | 4.9% |
Health Care | 4.9% |
Materials | 4.4% |
Real Estate | 3.1% |
Telecommunication Services | 2.9% |
Energy | 2.7% |
CASH and other assets (net) | 1.6% |
The accompanying notes are an Integral part or these financial statements.
57
PEAR TREE FUNDS
SCHEDULE OF ASSETS AND LIABILITIES
March 31, 2017
Small Cap | Quality | ||||
Assets: | |||||
Investments at value (Includes collateral from securities on loan of $6,245,390; $3,872,331; $768,460; $1,090,602; $0; $0,respectively)* (Note 2) | $ | 122,787,337 | $ | 121,135,123 | |
Investment at value of affliliated securities | — | — | |||
Repurchase agreements | — | 1,764,025 | |||
Total Investments | 122,787,337 | 122,899,148 | |||
Foreign currency at value (Cost $4,665 for Small Cap, $0 for Quality, $84,342 for Emerging Markets, $184,184 for Risk Parity, $505,737 for Foreign Value and $31,624 for Foreign Value Small Cap) | 4,650 | — | |||
Cash | 10 | — | |||
Dividends, interest and foreign tax reclaims receivable | 83,562 | 186,658 | |||
Receivable for investments sold | — | 65,028 | |||
Receivable for shares of beneficial interest sold | — | — | |||
Other assets | 13,863 | 9,021 | |||
Total Assets | $ | 122,889,422 | $ | 123,159,855 | |
Liabilities: | |||||
Payable for investments purchased | $ | — | $ | — | |
Payable for shares of beneficial interest repurchased | 54,370 | 12,722 | |||
Payable for compensation of manager (Note 3) | 77,814 | 77,169 | |||
Payable for distribution fees (Note 3) | 22,958 | 24,332 | |||
Payable to custodian | 2,292 | 70,042 | |||
Payable to transfer agent (Note 3) | 17,204 | 17,931 | |||
Payable for collateral received for securities loaned | 6,245,390 | 3,872,331 | |||
Payable for foreign capital gain tax | — | — | |||
Unrealized loss on spot foreign currency contracts (Note 2) | — | — | |||
Other accrued expenses and liabilities | 2,140 | 2,643 | |||
Total Liabilities | $ | 6,422,168 | $ | 4,077,170 | |
Net Assets | $ | 116,467,254 | $ | 119,082,685 |
58
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2017
Emerging | Risk | Foreign | Foreign Value | |||||||
Markets | Parity | Value | Small Cap | |||||||
$ | 53,612,712 | $ | 60,234,742 | $ | 1,648,103,157 | $ | 583,576,626 | |||
57,407,743 | — | — | — | |||||||
235,366 | 39,359 | — | — | |||||||
111,255,821 | 60,274,101 | 1,648,103,157 | 583,576,626 | |||||||
83,564 | 184,165 | 507,620 | 31,643 | |||||||
— | — | — | — | |||||||
221,442 | 160,847 | 9,417,104 | 2,745,123 | |||||||
152,503 | — | — | — | |||||||
306 | — | 904,151 | 564,887 | |||||||
7,238 | — | 22,387 | — | |||||||
$ | 111,720,874 | $ | 60,619,113 | $ | 1,658,954,419 | $ | 586,918,279 | |||
$ | 31,739 | $ | — | $ | — | $ | — | |||
26,117 | — | 945,528 | 346,787 | |||||||
35,232 | 29,882 | 1,381,933 | 482,388 | |||||||
21,734 | 312 | 181,079 | 56,452 | |||||||
8,982 | 1,461 | 38,397 | 26,026 | |||||||
16,401 | 8,835 | 239,178 | 84,542 | |||||||
768,460 | 1,090,602 | — | — | |||||||
101,079 | 19,192 | — | 65,590 | |||||||
— | — | 3,301 | — | |||||||
323 | 1,758 | 61,230 | 26,459 | |||||||
$ | 1,010,067 | $ | 1,152,042 | $ | 2,850,646 | $ | 1,088,244 | |||
$ | 110,710,807 | $ | 59,467,071 | $ | 1,656,103,773 | $ | 585,830,035 |
The accompanying notes are an integral part of these financial statements.
59
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2017
Small Cap | Quality | ||||
Net Assets Consist Of: | |||||
Shares of beneficial interest | $ | 79,941,091 | $ | 95,386,258 | |
Undistributed net investment income/(loss) | 93,804 | 32,877 | |||
Accumulated net realized gain/(loss) on investments, foreign denominated assets, liabilities and currency | 5,870,995 | 4,363,401 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities and currency | 30,561,364 | 19,300,149 | |||
Net Assets | $ | 116,467,254 | $ | 119,082,685 | |
Investments at cost—Non-affiliated securities | $ | 92,225,975 | $ | 103,598,957 | |
Investments at cost—Affiliated securities | $ | — | $ | — | |
Total Investment cost | $ | 92,225,975 | $ | 103,598,957 | |
Net assets | |||||
Ordinary Shares | $ | 109,246,879 | $ | 112,513,304 | |
Institutional Shares | $ | 7,220,375 | $ | 6,569,381 | |
R6 Shares | — | — | |||
Shares of beneficial interest outstanding (unlimited number of shares authorized) | |||||
Ordinary Shares | 4,145,449 | 6,422,970 | |||
Institutional Shares | 234,437 | 352,185 | |||
R6 Shares | — | — | |||
Net asset value and offering price per share | |||||
Ordinary Shares | $ | 26.35 | $ | 17.52 | |
Institutional Shares | $ | 30.80 | $ | 18.65 | |
R6 Shares | — | — |
* | Includes securities on loan to brokers with market value of $6,114,285; $3,794,291; $731,797; $1,024,242; $0; $0, respectively.) |
60
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (continued)
March 31, 2017
Emerging Markets | Risk Parity | Foreign Value | Foreign Value Small Cap | |||||||
$ | 139,642,959 | $ | 62,876,233 | $ | 1,523,392,936 | $ | 519,194,975 | |||
1,436,751 | 68,825 | 19,999,166 | 4,536,047 | |||||||
(32,282,386) | (3,881,786) | (168,525,381) | (12,606,631) | |||||||
1,913,483 | 403,799 | 281,237,052 | 74,705,644 | |||||||
$ | 110,710,807 | $ | 59,467,071 | $ | 1,656,103,773 | $ | 585,830,035 | |||
$ | 48,707,279 | $ | 59,855,336 | $ | 1,366,827,858 | $ | 508,800,000 | |||
$ | 60,543,226 | $ | — | $ | — | $ | — | |||
$ | 109,250,505 | $ | 59,855,336 | $ | 1,366,827,858 | $ | 508,800,000 | |||
$ | 102,632,538 | $ | 1,528,811 | $ | 859,328,287 | $ | 270,948,273 | |||
$ | 8,078,269 | $ | 57,938,260 | $ | 759,793,193 | $ | 312,954,960 | |||
— | — | $ | 36,982,293 | $ | 1,926,802 | |||||
5,030,930 | 168,333 | 44,884,365 | 19,763,101 | |||||||
390,491 | 6,351,182 | 39,770,196 | 22,800,073 | |||||||
— | — | 3,577,762 | 181,237 | |||||||
$ | 20.40 | $ | 9.08 | $ | 19.15 | $ | 13.71 | |||
$ | 20.69 | $ | 9.12 | $ | 19.10 | $ | 13.73 | |||
— | — | $ | 10.34 | $ | 10.63 |
The accompanying notes are an integral part of these financial statements.
61
PEAR TREE FUNDS
STATEMENT OF OPERATIONS
For the Year Ended March 31, 2017
Small Cap | Quality | ||||
Investment Income: | |||||
Dividends—Affiliated securities | $ | — | $ | — | |
Dividends—Non-affiliated securities * | 1,577,213 | 2,700,624 | |||
Interest | 14,335 | 130 | |||
Sec Lending Income | 72,339 | 14,723 | |||
Miscellaneous | — | — | |||
Total Investment Income | $ | 1,663,887 | $ | 2,715,477 | |
Expenses: | |||||
Compensation of manager (Note 3) | 833,477 | 1,199,820 | |||
Distribution fees, Ordinary Shares (Note 3) | 244,425 | 281,172 | |||
Administrative fees (Note 3) | 30,564 | 35,856 | |||
Custodian and fund accounting fees | 28,900 | 37,655 | |||
Regulatory and Compliance (Note 3) | 9,421 | 11,046 | |||
Transfer agent fees (Note 3): | |||||
Ordinary Shares | 161,121 | 184,291 | |||
Institutional Shares | 10,536 | 12,306 | |||
R6 Shares | — | — | |||
Audit and legal | 14,855 | 17,134 | |||
Registration fees | 33,447 | 29,781 | |||
Insurance | 3,237 | 3,802 | |||
Compensation of trustees (Note 3) | 6,658 | 7,775 | |||
Printing | 7,896 | 8,925 | |||
Miscellaneous | 7,139 | 8,279 | |||
Total expenses before waivers/reimbursements/reductions | 1,391,676 | 1,837,842 | |||
Waivers and/or reimbursements of expenses(Note 3) | — | (299,896) | |||
Expenses, Net | $ | 1,391,676 | $ | 1,537,946 | |
Net investment income/(loss) | $ | 272,211 | $ | 1,177,531 | |
Realized and unrealized gain/(loss) on investments, foreign currency, and foreign translation: | |||||
Net realized gain/(loss) (Note 2) on: | |||||
Investments ** | $ | 7,582,688 | $ | 7,916,906 | |
Foreign denominated assets, liabilities, and currency | (4,537) | (1,587) | |||
Distribution by affiliated investment company | — | — | |||
Change in unrealized appreciation/(depreciation) of: | |||||
Investments | 13,767,266 | 6,445,713 | |||
Foreign denominated assets, liabilities, and currency | 2 | 6 | |||
Net realized and unrealized gain/(loss) on investment and foreign currency | 21,345,419 | 14,361,038 | |||
Net increase/(decrease) in net assets resulting from operations | $ | 21,617,630 | $ | 15,538,569 |
* | Dividends are net of foreign withholding taxes of $4,063 for Small Cap, $34,329 for Quality,$267,839 for Emerging Markets, $167,259 for Risk Parity, $4,913,853 for Foreign Value and $1,505,735 for Foreign Value Small Cap |
** | Net realized gains on Investments are net of foreign withholding taxes of $-0- for Small Cap, $-0- for Quality, $12,572 for Emerging Markets, $11,087 for Risk Parity, $-0- for Foreign Value and $-0- for Foreign Value Small Cap |
62
STATEMENT OF OPERATIONS (continued)
For the Year Ended March 31, 2017
Emerging Markets | Risk Parity | Foreign Value | Foreign Value Small Cap | |||||||
$ | 680,453 | $ | — | $ | — | $ | — | |||
2,059,744 | 1,333,800 | 44,243,395 | 17,976,973 | |||||||
71 | 19 | 99,426 | 41,882 | |||||||
11,185 | 11,471 | — | — | |||||||
— | — | — | 568 | |||||||
$ | 2,751,453 | $ | 1,345,290 | $ | 44,342,821 | $ | 18,019,423 | |||
651,689 | 331,834 | 15,780,222 | 5,377,420 | |||||||
265,683 | 3,644 | 2,156,816 | 658,213 | |||||||
35,634 | 16,216 | 470,794 | 159,937 | |||||||
144,892 | 101,379 | 492,803 | 267,052 | |||||||
10,982 | 4,998 | 144,970 | 49,260 | |||||||
174,526 | 2,524 | 1,402,231 | 427,820 | |||||||
20,027 | 87,165 | 1,147,188 | 442,191 | |||||||
— | — | 430 | 22 | |||||||
31,597 | 7,842 | 212,960 | 81,359 | |||||||
38,415 | 7,418 | 112,265 | 75,177 | |||||||
3,779 | 1,718 | 49,873 | 16,951 | |||||||
7,732 | 3,530 | 102,041 | 34,666 | |||||||
7,364 | 3,373 | 99,275 | 33,198 | |||||||
8,226 | 3,809 | 106,961 | 36,948 | |||||||
1,400,546 | 575,450 | 22,278,829 | 7,660,214 | |||||||
(143,371) | — | — | — | |||||||
$ | 1,257,175 | $ | 575,450 | $ | 22,278,829 | $ | 7,660,214 | |||
$ | 1,494,278 | $ | 769,840 | $ | 22,063,992 | $ | 10,359,209 | |||
$ | 1,031,192 | $ | (1,171,472) | $ | 28,839,263 | $ | (12,535,567) | |||
(44,635) | (38,158) | (211,920) | (239,582) | |||||||
— | — | — | — | |||||||
7,285,387 | 3,669,202 | 149,384,254 | 83,187,270 | |||||||
(94,356) | (18,082) | (46,715) | (87,931) | |||||||
8,177,588 | 2,441,490 | 177,964,882 | 70,324,190 | |||||||
$ | 9,671,866 | $ | 3,211,330 | $ | 200,028,874 | $ | 80,683,399 |
The accompanying notes are an integral part of these financial statements.
63
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS
Small Cap | |||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 272,211 | $ | 682,090 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | 7,578,151 | (669,183) | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 13,767,268 | (5,783,437) | |||
Net increase/(decrease) from operations | $ | 21,617,630 | $ | (5,770,530) | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | (581,080) | $ | — | |
Institutional shares | (44,869) | — | |||
R6 Shares | — | — | |||
Net realized gains | |||||
Ordinary shares | (632,387) | (6,352,222) | |||
Institutional shares | (35,905) | (213,264) | |||
R6 Shares | — | — | |||
Total distributions | $ | (1,294,241) | $ | (6,565,486) | |
Fund share transactions (Note 8) | (780,175) | 7,415,047 | |||
Increase/(decrease) in net assets | $ | 19,543,214 | $ | (4,920,969) | |
Net assets beginning of period | 96,924,040 | 101,845,009 | |||
Net assets end of period* | $ | 116,467,254 | $ | 96,924,040 | |
* Includes undistributed net investment income/(loss) of: | $ | 93,804 | $ | 539,195 |
The accompanying notes are an integral part of these financial statements.
64
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Quality | |||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 1,177,531 | $ | 1,139,555 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | 7,915,319 | 9,676,201 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 6,445,719 | (4,368,074) | |||
Net increase/(decrease) from operations | $ | 15,538,569 | $ | 6,447,682 | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | (1,201,347) | $ | (993,291) | |
Institutional shares | (90,433) | (95,549) | |||
R6 Shares | — | — | |||
Net realized gains | |||||
Ordinary shares | (5,099,853) | (11,740,552) | |||
Institutional shares | (316,791) | (962,649) | |||
R6 Shares | — | — | |||
Total distributions | $ | (6,708,424) | $ | (13,792,041) | |
Fund share transactions (Note 8) | (11,779,255) | 2,063,272 | |||
Increase/(decrease) in net assets | $ | (2,949,110) | $ | (5,281,087) | |
Net assets beginning of period | 122,031,795 | 127,312,882 | |||
Net assets end of period* | $ | 119,082,685 | $ | 122,031,795 | |
* Includes undistributed net investment income/(loss) of: | $ | 32,877 | $ | 170,747 |
The accompanying notes are an integral part of these financial statements.
65
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Emerging Markets | ||||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | |||||
Increase (Decrease) in Net Assets: | ||||||
Operations: | ||||||
Net investment income/(loss) | $ | 1,494,278 | $ | 2,096,690 | ||
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | 986,557 | (14,395,832) | ||||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 7,191,031 | (4,905,263) | ||||
Net increase/(decrease) from operations | $ | 9,671,866 | $ | (17,204,405) | ||
Distributions to shareholders from: | ||||||
Net investment income | ||||||
Ordinary shares | $ | (1,694,688) | $ | (1,653,738) | ||
Institutional shares | (316,247) | (235,570) | ||||
R6 Shares | — | — | ||||
Net realized gains | ||||||
Ordinary shares | — | — | ||||
Institutional shares | — | — | ||||
R6 Shares | — | — | ||||
Total distributions | $ | (2,010,935) | $ | (1,889,308) | ||
Fund share transactions (Note 8) | (18,331,368) | 756,481 | ||||
Increase/(decrease) in net assets | $ | (10,670,437) | $ | (18,337,232) | ||
Net assets beginning of period | 121,381,244 | 139,718,476 | ||||
Net assets end of period* | $ | 110,710,807 | $ | 121,381,244 | ||
* Includes undistributed net investment income/(loss) of: | $ | 1,436,751 | $ | 2,010,614 |
The accompanying notes are an integral part of these financial statements.
66
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Risk Parity | |||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 769,840 | $ | 565,210 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | (1,209,630) | (2,381,107) | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 3,651,120 | (1,851,434) | |||
Net increase/(decrease) from operations | $ | 3,211,330 | $ | (3,667,331) | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | (14,514) | $ | (12,717) | |
Institutional shares | (686,298) | (500,735) | |||
R6 Shares | — | — | |||
Net realized gains | |||||
Ordinary shares | — | — | |||
Institutional shares | — | — | |||
R6 Shares | — | — | |||
Total distributions | $ | (700,812) | $ | (513,452) | |
Fund share transactions (Note 8) | 4,133,313 | 16,948,457 | |||
Increase/(decrease) in net assets | $ | 6,643,831 | $ | 12,767,674 | |
Net assets beginning of period | 52,823,240 | 40,055,566 | |||
Net assets end of period* | $ | 59,467,071 | $ | 52,823,240 | |
* Includes undistributed net investment income/(loss) of: | $ | 68,825 | $ | 49,042 |
The accompanying notes are an integral part of these financial statements.
67
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Foreign Value | |||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 22,063,992 | $ | 22,524,114 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | 28,627,343 | (13,289,107) | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 149,337,539 | (137,051,073) | |||
Net increase/(decrease) from operations | $ | 200,028,874 | $ | (127,816,066) | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | (8,477,311) | $ | (15,425,223) | |
Institutional shares | (9,379,254) | (13,111,168) | |||
R6 Shares | — | — | |||
Net realized gains | |||||
Ordinary shares | — | — | |||
Institutional shares | — | — | |||
R6 Shares | — | — | |||
Total distributions | $ | (17,856,565) | $ | (28,536,391) | |
Fund share transactions (Note 8) | (156,029,344) | 160,981,925 | |||
Increase/(decrease) in net assets | $ | 26,142,965 | $ | 4,629,468 | |
Net assets beginning of period | 1,629,960,808 | 1,625,331,340 | |||
Net assets end of period* | $ | 1,656,103,773 | $ | 1,629,960,808 | |
* Includes undistributed net investment income/(loss) of: | $ | 19,999,166 | $ | 10,496,797 |
The accompanying notes are an integral part of these financial statements.
68
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
Foreign Value Small Cap | |||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | ||||
Increase (Decrease) in Net Assets: | |||||
Operations: | |||||
Net investment income/(loss) | $ | 10,359,209 | $ | 9,834,485 | |
Net realized gain/(loss) on investments, foreign denominated assets, liabilities, and currency | (12,775,149) | 3,445,565 | |||
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency | 83,099,339 | (68,150,750) | |||
Net increase/(decrease) from operations | $ | 80,683,399 | $ | (54,870,700) | |
Distributions to shareholders from: | |||||
Net investment income | |||||
Ordinary shares | $ | (2,796,624) | $ | (4,920,510) | |
Institutional shares | (3,807,349) | (4,126,486) | |||
R6 Shares | — | — | |||
Net realized gains | |||||
Ordinary shares | (1,654,113) | (1,338,214) | |||
Institutional shares | (1,795,050) | (982,047) | |||
R6 Shares | — | ||||
Total distributions | $ | (10,053,136) | $ | (11,367,257) | |
Fund share transactions (Note 8) | (39,155,442) | 187,248,097 | |||
Increase/(decrease) in net assets | $ | 31,474,821 | $ | 121,010,140 | |
Net assets beginning of period | 554,355,214 | 433,345,074 | |||
Net assets end of period* | $ | 585,830,035 | $ | 554,355,214 | |
* Includes undistributed net investment income/(loss) of: | $ | 4,536,047 | $ | 1,023,799 |
The accompanying notes are an integral part of these financial statements.
69
PEAR TREE POLARIS SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $21.61 | $24.65 | $27.62 | $22.50 | $20.36 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.06 | 0.16 | 0.04 | (0.08) | (0.03) |
Net realized and unrealized gain/(loss) on securities | 4.99 | (1.59) | (0.37) | 5.20 | 2.17 |
Total from Investment Operations | 5.05 | (1.43) | (0.33) | 5.12 | 2.14 |
Less Distributions: | |||||
Dividends from net investment income | (0.15) | — | (0.20) | — | — |
Distributions from realized capital gains | (0.16) | (1.61) | (2.44) | — | — |
Total Distributions | (0.31) | (1.61) | (2.64) | — | — |
Net Asset Value, End of Period | $26.35 | $21.61 | $24.65 | $27.62 | $22.50 |
Total Return | 23.36% | (5.83)% | (0.36)% | 22.76% | 10.51% |
Net Assets, End of Period (000's) | $109,247 | $91,139 | $98,084 | $107,370 | $101,275 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.35% | 1.35% | 1.50% | 1.53% | 1.63% |
Net | 1.35% | 1.35% | 1.50% | 1.53% | 1.63% |
Ratio of net investment income (loss) to average net assets (b) | 0.25% | 0.70% | 0.17% | (0.30)% | (0.16)% |
Portfolio Turnover | 37% | 17% | 94% | 67% | 54% |
The accompanying notes are an integral part of these financial statements.
70
PEAR TREE POLARIS SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $25.19 | $28.39 | $31.37 | $25.48 | $23.00 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.14 | 0.23 | 0.11 | (0.02) | 0.02 |
Net realized and unrealized gain/(loss) on securities | 5.83 | (1.82) | (0.39) | 5.91 | 2.46 |
Total from Investment Operations | 5.97 | (1.59) | (0.28) | 5.89 | 2.48 |
Less Distributions: | |||||
Dividends from net investment income | (0.20) | — | (0.26) | — | — |
Distributions from realized capital gains | (0.16) | (1.61) | (2.44) | — | — |
Total Distributions | (0.36) | (1.61) | (2.70) | — | — |
Net Asset Value, End of Period | $30.80 | $25.19 | $28.39 | $31.37 | $25.48 |
Total Return | 23.71% | (5.62)% | (0.11)% | 23.12% | 10.78% |
Net Assets, End of Period (000's) | $7,220 | $5,785 | $3,761 | $9,812 | $8,000 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.10% | 1.10% | 1.28% | 1.28% | 1.38% |
Net | 1.10% | 1.10% | 1.28% | 1.28% | 1.38% |
Ratio of net investment income (loss) to average net assets (b) | 0.49% | 0.89% | 0.36% | (0.08)% | 0.07% |
Portfolio Turnover | 37% | 17% | 94% | 67% | 54% |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | 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. |
(c) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements.
71
PEAR TREE QUALITY FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $16.31 | $17.47 | $18.10 | $15.85 | $14.33 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b)(c) | 0.16 | 0.15 | 0.28 | 0.19 | 0.16 |
Net realized and unrealized gain/(loss) on securities | 2.04 | 0.72 | 1.30 | 2.24 | 1.52 |
Total from Investment Operations | 2.20 | 0.87 | 1.58 | 2.43 | 1.68 |
Less Distributions: | |||||
Dividends from net investment income | (0.19) | (0.16) | (0.33) | (0.18) | (0.16) |
Distributions from realized capital gains | (0.80) | (1.87) | (1.88) | — | — |
Total Distributions | (0.99) | (2.03) | (2.21) | (0.18) | (0.16) |
Net Asset Value, End of Period | $17.52 | $16.31 | $17.47 | $18.10 | $15.85 |
Total Return | 14.04% | 5.47% | 9.12% | 15.40% | 11.85% |
Net Assets, End of Period (000's) | $112,513 | $113,498 | $116,104 | $114,857 | $98,033 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (d) | |||||
Gross | 1.55% | 1.55% | 1.54% | 1.55% | 1.62% |
Net excluding dividend and interest expense for securities sold short | 1.30% | 1.29% | 1.29% | 1.30% | 1.46% |
Ratio of net investment income (loss) to average net assets (c) | 0.97% | 0.91% | 1.52% | 1.13% | 1.11% |
Portfolio Turnover | 31% | 35% | 49% | 35% | 40% |
The accompanying notes are an integral part of these financial statements.
72
PEAR TREE QUALITY FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $17.30 | $18.39 | $18.95 | $16.58 | $14.95 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b)(c) | 0.22 | 0.21 | 0.35 | 0.25 | 0.24 |
Net realized and unrealized gain/(loss) on securities | 2.16 | 0.76 | 1.35 | 2.35 | 1.59 |
Total from Investment Operations | 2.38 | 0.97 | 1.70 | 2.60 | 1.83 |
Less Distributions: | |||||
Dividends from net investment income | (0.23) | (0.19) | (0.38) | (0.23) | (0.20) |
Distributions from realized capital gains | (0.80) | (1.87) | (1.88) | — | — |
Total Distributions | (1.03) | (2.06) | (2.26) | (0.23) | (0.20) |
Net Asset Value, End of Period | $18.65 | $17.30 | $18.39 | $18.95 | $16.58 |
Total Return | 14.30% | 5.74% | 9.34% | 15.74% | 12.37% |
Net Assets, End of Period (000's) | $6,569 | $8,533 | $11,209 | $10,045 | $3,576 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (d) | |||||
Gross | 1.30% | 1.30% | 1.29% | 1.31% | 1.35% |
Net excluding dividend and interest expense for securities sold short | 1.05% | 1.04% | 1.04% | 1.03% | 1.01% |
Ratio of net investment income (loss) to average net assets (c) | 1.22% | 1.14% | 1.83% | 1.38% | 1.58% |
Portfolio Turnover | 31% | 35% | 49% | 35% | 40% |
(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. |
(d) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements.
73
PEAR TREE PANAGORA EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $18.96 | $21.94 | $22.15 | $23.56 | $22.67 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.23 | 0.33 | 0.29 | 0.33 | 0.37 |
Net realized and unrealized gain/(loss) on securities | 1.52 | (3.02) | (0.18) | (1.45) | 0.85 |
Total from Investment Operations | 1.75 | (2.69) | 0.11 | (1.12) | 1.22 |
Less Distributions: | |||||
Dividends from net investment income | (0.31) | (0.29) | (0.32) | (0.29) | (0.33) |
Distributions from realized capital gains | — | — | — | — | — |
Total Distributions | (0.31) | (0.29) | (0.32) | (0.29) | (0.33) |
Net Asset Value, End of Period | $20.40 | $18.96 | $21.94 | $22.15 | $23.56 |
Total Return | 9.39% | (12.12)% | 0.54% | (4.77)% | 5.41% |
Net Assets, End of Period (000's) | $102,633 | $107,893 | $127,295 | $131,920 | $140,267 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.21% | 1.32% | 1.37% | 1.60% | 1.76% |
Net | 1.09% | 1.31% | 1.37% | 1.60% | 1.76% |
Ratio of net investment income (loss) to average net assets (b) | 1.21% | 1.66% | 1.26% | 1.50% | 1.66% |
Portfolio Turnover | 47% | 82%(d) | 35% | 61% | 25% |
The accompanying notes are an integral part of these financial statements.
74
PEAR TREE PANAGORA EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $19.23 | $22.26 | $22.46 | $23.88 | $22.97 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.34 | 0.36 | 0.35 | 0.39 | 0.43 |
Net realized and unrealized gain/(loss) on securities | 1.49 | (3.04) | (0.18) | (1.46) | 0.87 |
Total from Investment Operations | 1.83 | (2.68) | 0.17 | (1.07) | 1.30 |
Less Distributions: | |||||
Dividends from net investment income | (0.37) | (0.35) | (0.37) | (0.35) | (0.39) |
Distributions from realized capital gains | — | — | — | — | — |
Total Distributions | (0.37) | (0.35) | (0.37) | (0.35) | (0.39) |
Net Asset Value, End of Period | $20.69 | $19.23 | $22.26 | $22.46 | $23.88 |
Total Return | 9.68% | (11.88)% | 0.81% | (4.52)% | 5.69% |
Net Assets, End of Period (000's) | $8,078 | $13,489 | $12,424 | $15,358 | $15,165 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 0.95% | 1.07% | 1.11% | 1.35% | 1.49% |
Net | 0.83% | 1.06% | 1.11% | 1.35% | 1.49% |
Ratio of net investment income (loss) to average net assets (b) | 1.69% | 1.78% | 1.52% | 1.74% | 1.92% |
Portfolio Turnover | 47% | 82%(d) | 35% | 61% | 25% |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | 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. |
(c) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
(d) | Turnover is higher due to a change in strategy as of March 18, 2016. |
The accompanying notes are an integral part of these financial statements.
75
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | ||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | Year Ended March 31, 2015 | June 27, 2013* through March 31, 2014 | |
Net Asset Value, Beginning of Period | $8.70 | $9.73 | $10.30 | $10.00 |
Income from Investment Operations: | ||||
Net investment income (loss) (a)(b) | 0.10 | 0.10 | 0.09 | (0.03) |
Net realized and unrealized gain/(loss) on securities | 0.37 | (1.05) | (0.57) | 0.40 |
Total from Investment Operations | 0.47 | (0.95) | (0.48) | 0.37 |
Less Distributions: | ||||
Dividends from net investment income | (0.09) | (0.08) | (0.07) | — |
Distributions from realized capital gains | — | — | (0.02) | (0.07) |
Total Distributions | (0.09) | (0.08) | (0.09) | (0.07) |
Net Asset Value, End of Period | $9.08 | $8.70 | $9.73 | $10.30 |
Total Return | 5.44% | (9.67) | (4.63)% | 3.68%*** |
Net Assets, End of Period (000's) | $1,529 | $1,463 | $1,558 | $652 |
Ratios and Supplemental Data: | ||||
Ratios of expenses to average net assets: (c) | ||||
Gross | 1.30% | 1.44% | 1.54% | 2.10%** |
Net | 1.30% | 1.44% | 1.54% | 2.10%** |
Ratio of net investment income (loss) to average net assets (b) | 1.15% | 1.16% | 0.88% | (0.43)%** |
Portfolio Turnover | 42% | 24% | 34% | 42%*** |
The accompanying notes are an integral part of these financial statements.
76
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | ||||
Year Ended March 31, 2017 | Year Ended March 31, 2016 | Year Ended March 31, 2015 | June 27, 2013* through March 31, 2014 | |
Net Asset Value, Beginning of Period | $8.74 | $9.78 | $10.35 | $10.00 |
Income from Investment Operations: | ||||
Net investment income (loss) (a)(b) | 0.12 | 0.12 | 0.13 | 0.01 |
Net realized and unrealized gain/(loss) on securities | 0.37 | (1.06) | (0.59) | 0.41 |
Total from Investment Operations | 0.49 | (0.94) | (0.46) | 0.42 |
Less Distributions: | ||||
Dividends from net investment income | (0.11) | (0.10) | (0.09) | — |
Distributions from realized capital gains | — | — | (0.02) | (0.07) |
Total Distributions | (0.11) | (0.10) | (0.11) | (0.07) |
Net Asset Value, End of Period | $9.12 | $8.74 | $9.78 | $10.35 |
Total Return | 5.70% | (9.43) | (4.41)% | 4.19%*** |
Net Assets, End of Period (000's) | $57,938 | $51,360 | $38,497 | $33,071 |
Ratios and Supplemental Data: | ||||
Ratios of expenses to average net assets: (c) | ||||
Gross | 1.03% | 1.19% | 1.28% | 1.69%** |
Net | 1.03% | 1.19% | 1.28% | 1.69%** |
Ratio of net investment income (loss) to average net assets (b) | 1.40% | 1.40% | 1.20% | 0.09%** |
Portfolio Turnover | 42% | 24% | 34% | 42%*** |
* | Fund commenced operations June 27, 2013. |
** | Annualized. |
*** | Not Annualized. |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | 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. |
(c) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements.
77
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $17.03 | $18.67 | $19.38 | $15.83 | $13.64 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.23 | 0.23 | 0.29 | 0.19 | 0.15 |
Net realized and unrealized gain/(loss) on securities | 2.07 | (1.60) | (0.80) | 3.49 | 2.12 |
Total from Investment Operations | 2.30 | (1.37) | (0.51) | 3.68 | 2.27 |
Less Distributions: | |||||
Dividends from net investment income | (0.18) | (0.27) | (0.20) | (0.13) | (0.08) |
Distributions from realized capital gains | — | — | — | — | — |
Total Distributions | (0.18) | (0.27) | (0.20) | (0.13) | (0.08) |
Net Asset Value, End of Period | $19.15 | $17.03 | $18.67 | $19.38 | $15.83 |
Total Return | 13.59% | (7.29)% | (2.53)% | 23.28% | 16.73% |
Net Assets, End of Period (000's) | $859,328 | $932,418 | $1,030,641 | $908,108 | $705,210 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.53% | 1.52% | 1.52% | 1.54% | 1.59% |
Net | 1.53% | 1.52% | 1.52% | 1.54% | 1.59% |
Ratio of net investment income (loss) to average net assets (b) | 1.31% | 1.29% | 1.55% | 1.11% | 1.04% |
Portfolio Turnover | 15% | 13% | 2% | 3% | 10% |
The accompanying notes are an integral part of these financial statements.
78
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $17.00 | $18.68 | $19.39 | $15.83 | $13.63 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.26 | 0.27 | 0.33 | 0.24 | 0.17 |
Net realized and unrealized gain/(loss) on securities | 2.07 | (1.60) | (0.80) | 3.48 | 2.15 |
Total from Investment Operations | 2.33 | (1.33) | (0.47) | 3.72 | 2.32 |
Less Distributions: | |||||
Dividends from net investment income | (0.23) | (0.35) | (0.24) | (0.16) | (0.12) |
Distributions from realized capital gains | — | — | — | — | — |
Total Distributions | (0.23) | (0.35) | (0.24) | (0.16) | (0.12) |
Net Asset Value, End of Period | $19.10 | $17.00 | $18.68 | $19.39 | $15.83 |
Total Return | 13.82% | (7.06)% | (2.29)% | 23.58% | 17.07% |
Net Assets, End of Period (000's) | $759,793 | $697,543 | $594,691 | $570,792 | $180,265 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.27% | 1.27% | 1.27% | 1.28% | 1.33% |
Net | 1.27% | 1.27% | 1.27% | 1.28% | 1.33% |
Ratio of net investment income (loss) to average net assets (b) | 1.49% | 1.51% | 1.76% | 1.37% | 1.22% |
Portfolio Turnover | 15% | 13% | 2% | 3% | 10% |
The accompanying notes are an integral part of these financial statements.
79
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
R 6 Shares | ||
February 6, 2017* | ||
through | ||
March 31, 2017 | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income from Investment Operations: | ||
Net investment income (loss) (a)(b) | 0.05 | |
Net realized and unrealized gain/(loss) on securities | 0.29 | |
Total from Investment Operations | 0.34 | |
Less Distributions: | ||
Dividends from net investment income | — | |
Distributions from realized capital gains | — | |
Total Distributions | — | |
Net Asset Value, End of Period | $10.34 | |
Total Return | 3.40%*** | |
Net Assets, End of Period (000's) | $36,982 | |
Ratios and Supplemental Data: | ||
Ratios of expenses to average net assets: (c) | ||
Gross | 1.14%** | |
Net | 1.14%** | |
Ratio of net investment income (loss) to average net assets (b) | 3.39%** | |
Portfolio Turnover | 15%*** |
* | Commenced operations February 6, 2017 |
** | Annualized *** Not Annualized |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | 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. |
(c) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements.
80
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
Ordinary Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $12.06 | $13.35 | $13.17 | $10.50 | $ 9.02 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.23 | 0.21 | 0.15 | 0.14 | 0.14 |
Net realized and unrealized gain/(loss) on securities | 1.64 | (1.26) | 0.17 | 2.66 | 1.50 |
Total from Investment Operations | 1.87 | (1.05) | 0.32 | 2.80 | 1.64 |
Less Distributions: | |||||
Dividends from net investment income | (0.14) | (0.19) | (0.14) | (0.13) | (0.16) |
Distributions from realized capital gains | (0.08) | (0.05) | — | — | — |
Total Distributions | (0.22) | (0.24) | (0.14) | (0.13) | (0.16) |
Net Asset Value, End of Period | $13.71 | $12.06 | $13.35 | $13.17 | $10.50 |
Total Return | 15.73% | (7.83)% | 2.57% | 26.80% | 18.34% |
Net Assets, End of Period (000's) | $270,948 | $283,509 | $233,185 | $138,321 | $92,806 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.55% | 1.56% | 1.56% | 1.58% | 1.66% |
Net | 1.55% | 1.56% | 1.56% | 1.58% | 1.66% |
Ratio of net investment income (loss) to average net assets (b) | 1.82% | 1.66% | 1.15% | 1.23% | 1.55% |
Portfolio Turnover | 46% | 8% | 11% | 4% | 9% |
The accompanying notes are an integral part of these financial statements.
81
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
Institutional Shares | |||||
Years Ended March 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | |
Net Asset Value, Beginning of Period | $12.07 | $13.36 | $13.19 | $10.51 | $ 9.03 |
Income from Investment Operations: | |||||
Net investment income (loss) (a)(b) | 0.25 | 0.24 | 0.14 | 0.16 | 0.17 |
Net realized and unrealized gain/(loss) on securities | 1.66 | (1.26) | 0.21 | 2.67 | 1.49 |
Total from Investment Operations | 1.91 | (1.02) | 0.35 | 2.83 | 1.66 |
Less Distributions: | |||||
Dividends from net investment income | (0.17) | (0.22) | (0.18) | (0.15) | (0.18) |
Distributions from realized capital gains | (0.08) | (0.05) | — | — | — |
Total Distributions | (0.25) | (0.27) | (0.18) | (0.15) | (0.18) |
Net Asset Value, End of Period | $13.73 | $12.07 | $13.36 | $13.19 | $10.51 |
Total Return | 16.13% | (7.62)% | 2.79% | 27.16% | 18.59% |
Net Assets, End of Period (000's) | $312,955 | $270,846 | $200,160 | $47,418 | $22,459 |
Ratios and Supplemental Data: | |||||
Ratios of expenses to average net assets: (c) | |||||
Gross | 1.30% | 1.30% | 1.31% | 1.33% | 1.41% |
Net | 1.30% | 1.30% | 1.31% | 1.33% | 1.41% |
Ratio of net investment income (loss) to average net assets (b) | 2.03% | 1.91% | 1.12% | 1.47% | 1.88% |
Portfolio Turnover | 46% | 8% | 11% | 4% | 9% |
The accompanying notes are an integral part of these financial statements.
82
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS (continued)
(For a share outstanding throughout each period)
R 6 Shares | ||
February 6, 2017* | ||
through | ||
March 31, 2017 | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income from Investment Operations: | ||
Net investment income (loss) (a)(b) | 0.04 | |
Net realized and unrealized gain/(loss) on securities | 0.59 | |
Total from Investment Operations | 0.63 | |
Less Distributions: | ||
Dividends from net investment income | — | |
Distributions from realized capital gains | — | |
Total Distributions | — | |
Net Asset Value, End of Period | $10.63 | |
Total Return | 6.30%*** | |
Net Assets, End of Period (000's) | $1,927 | |
Ratios and Supplemental Data: | ||
Ratios of expenses to average net assets: (c) | ||
Gross | 1.14%** | |
Net | 1.14%** | |
Ratio of net investment income (loss) to average net assets (b) | 2.95%** | |
Portfolio Turnover | 46%*** |
* | Commenced operations February 6, 2017 |
** | Annualized *** Not Annualized |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | 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. |
(c) | Ratios of expenses to average net assets: |
— | Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
— | Net (total expenses net of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any). |
The accompanying notes are an integral part of these financial statements.
83
PEAR TREE FUNDS
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. The Trust currently has six series (each a "Fund" and collectively the "Funds"), each with its own investment objective and strategy.
Pear Tree Polaris Small Cap Fund ("Small Cap") seeks maximum long-term capital appreciation.
Pear Tree Quality Fund ("Quality") seeks long-term growth of capital.
Pear Tree PanAgora Emerging Markets Fund ("Emerging Markets") seeks long-term growth of capital.
Pear Tree PanAgora Risk Parity Emerging Markets Fund ("Risk Parity") seeks long-term growth of capital.
Pear Tree Polaris Foreign Value Fund ("Foreign Value") seeks long-term capital growth and income.
Pear Tree Polaris Foreign Value Small Cap Fund ("Foreign Value Small Cap") seeks long-term capital growth and income.
Each of the Funds is a "non-diversified company," within the meaning of the 1940 Act, other than Emerging Markets, 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".
Each Fund offers two classes of shares, designated as Ordinary Shares and Institutional Shares. As of February 6, 2017, each of Foreign Value and Foreign Value Small Cap offers a third class of shares, designated as R6 Shares. The classes differ principally in their respective expense structure and minimum investment requirements. Each class of shares represents an interest in the same portfolio of investments of the respective Fund and has equal rights to voting (except as noted in the following sentence), redemptions, dividends and liquidation. Ordinary Shares bear distribution (Rule 12b-1) fees and have exclusive voting rights with respect to the distribution plan that has been adopted by Ordinary Share shareholders pursuant to Rule 12b-1. There is no Rule 12b-1 distribution plan for Institutional Shares or R6 shares of any Fund.
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 in the U.S. market or a developed market. Risks associated with these foreign and developing markets include political, social or economic factors and may affect the price of a Fund's investments and income generated by these investments, as well as a Fund's ability to repatriate such amounts. Information regarding each Fund's principal investment risks is contained in the Funds' prospectus. Please refer to the Funds' prospectus when considering a Fund's investment risks.
The accompanying notes are an integral part of these financial statements.
84
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies
Each Fund's financial statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principals require the management of the Funds to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income, expenses and gains and losses on investments during the reporting year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by each Fund in the preparation of its financial statements, which are consistent with those policies generally accepted in the investment company industry.
Security Valuation
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 Trust's Trustees (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 prevailing 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 shareholders are not able to buy or sell them. If events materially affecting the values of a Fund's foreign investments occur between the close of foreign markets and the close of regular trading on the New York Stock Exchange, these investments may be valued at their fair value 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. |
85
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
· | 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 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 that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers in changing an investment's assigned level within the hierarchy.
The inputs or methodology used for valuing 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 the Fund's net assets as of March 31, 2017:
Significant | Market | ||||||||||
Quoted Prices | Other | Significant | Value at | ||||||||
In Active | Observable | Unobservable | March 31, | ||||||||
Markets | Inputs | Inputs | 2017 | ||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Small Cap | |||||||||||
Common Stock* | $ | 101,588,010 | $ | — | $ | — | $ | 101,588,010 | |||
Real Estate Investment | |||||||||||
Trusts | 11,112,827 | — | 11,112,827 | ||||||||
Short Term Investments | 10,086,500 | — | — | 10,086,500 | |||||||
Total | $ | 122,787,337 | $ | — | $ | — | $ | 122,787,337 | |||
Quality | |||||||||||
Common Stock* | $ | 101,227,866 | $ | 1,317,751 | $ | — | $ | 102,545,617 | |||
Depository Receipts | 14,717,175 | — | — | 14,717,175 | |||||||
Short Term Investments | 3,872,331 | 1,764,025 | — | 5,636,356 | |||||||
Total | $ | 119,817,372 | $ | 3,081,776 | $ | — | $ | 122,899,148 |
86
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Quoted Prices | Significant Other | Significant | Market Value at | ||||||||
In Active | Observable | Unobservable | March 31, | ||||||||
Markets | Inputs | Inputs | 2017 | ||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Emerging Markets | |||||||||||
Common Stock* | $ | 42,883,594 | $ | 2,772,373 | $ | — | $ | 45,655,967 | |||
Common Stock Units | 27,981 | — | — | 27,981 | |||||||
Depository Receipts | 4,616,704 | — | — | 4,616,704 | |||||||
Mutual Funds | 58,233,919 | — | — | 58,233,919 | |||||||
Preferred Stock | 1,591,673 | — | — | 1,591,673 | |||||||
Real Estate Investment | |||||||||||
Trusts | 125,751 | — | — | 125,751 | |||||||
Short Term Investments | 768,460 | 235,366 | — | 1,003,826 | |||||||
Total | $ | 108,248,082 | $ | 3,007,739 | $ | — | $ | 111,255,821 | |||
Risk Parity | |||||||||||
Common Stock* | $ | 43,284,237 | $ | 8,897,060 | $ | — | $ | 52,181,297 | |||
Depository Receipts | 5,515,324 | 210,357 | — | 5,725,681 | |||||||
Preferred Stock | 751,883 | — | — | 751,883 | |||||||
Real Estate Investment | |||||||||||
Trusts | 473,430 | — | — | 473,430 | |||||||
Rights | 5,347 | 6,502 | — | 11,849 | |||||||
Short Term Investments | 1,090,602 | 39,359 | — | 1,129,961 | |||||||
Total | $ | 51,120,823 | $ | 9,153,278 | $ | — | $ | 60,274,101 | |||
Foreign Value | |||||||||||
Common Stock* | $ | 1,468,903,565 | $ | 79,431,758 | $ | — | $ | 1,548,335,323 | |||
Depository Receipts | 96,601,850 | — | — | 96,601,850 | |||||||
Short Term Investments | 3,165,984 | — | — | 3,165,984 | |||||||
Total | $ | 1,568,671,399 | $ | 79,431,758 | $ | — | $ | 1,648,103,157 | |||
Foreign Value Small Cap | |||||||||||
Common Stock* | $ | 522,591,007 | $ | 36,819,730 | $ | 73,437 | $ | 559,484,174 | |||
Preferred Stock | 16,935,024 | — | — | 16,935,024 | |||||||
Short Term Investments | 7,157,428 | — | — | 7,157,428 | |||||||
Total | $ | 546,683,459 | $ | 36,819,730 | $ | 73,437 | $ | 583,576,626 |
87
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
The following is a reconciliation of Level 3 assets for which unobservable inputs were used to determine fair value.
Foreign Value | ||||||
Risk Parity | Foreign Value | Small Cap | ||||
Common Stock | Common Stock | Common Stock | ||||
Balances as of 3/31/2016 | $ | 33,255 | $ | 200,542 | $ | 271,209 |
Realized gain (loss) | $ | (3,077) | $ | (13,348,150) | $ | (10,322,240) |
Changed in unrealized appreciation (depreciation) | $ | (7,129) | $ | 15,529,612 | $ | 12,291,275 |
Purchases | $ | — | $ | — | $ | — |
Sales | $ | (23,049) | $ | (2,382,004) | $ | (2,166,807) |
Transfer into Level 3 | $ | — | $ | — | $ | — |
Transfer out of Level 3 | $ | — | $ | — | $ | — |
Balances as of 3/31/2017 | $ | — | $ | — | $ | 73,437 |
* | Refer to Schedule of Investments for breakout by industry or country. |
* | Transfers between Levels are recognized at the end of the reporting period. |
* | Quality Fund transferred $1,317,751 out of Level 1 into Level 2. Emerging Markets Fund transferred $987,100 out of Level 1 into Level 2. Risk Parity Fund transferred $5,356,411 out of Level 1 into Level 2. Foreign Value Small Cap Fund transferred $2,775,165 out of Level 1 into Level 2. Small Cap and Foreign Value Funds had no transfers at period end. |
The reason some securities were transferred from Level 1 into Level 2 was inactive pricing of the securities.
* | For each Fund other than Small Cap, the aggregate market value of common stock labeled as Level 2 consists of the market value of the common stock labeled as Level 2 in the following industries. For Small Cap, no common stock was labeled as Level 2 as of March 31, 2017: |
Foreign Value | ||||||
Quality | Emerging Markets | Risk Parity | Foreign Value | Small Cap | ||
Banks | $ | — | $ 1,371,705 | $ 1,862,316 | $ 41,746,025 | $ 9,555,782 |
Biotechnology | — | — | 80,976 | — | — | |
Chemicals | — | — | 266,682 | — | — | |
Construction Materials | — | 977,461 | 162,648 | — | — | |
Diversified Financial | ||||||
Services | — | — | — | — | 2,775,165 | |
Diversified | ||||||
Telecommunication | ||||||
Services | — | — | 934,916 | — | — | |
Electric Utilities | — | — | 365,912 | — | 6,704,143 | |
Electronic Equipment, | ||||||
Instruments & | ||||||
Components | — | — | 210,076 | — | 8,658,231 | |
Food & Staples Retailing | — | — | 329,161 | — | — | |
Food Products | — | — | 150,462 | — | 9,126,409 | |
Health Care Providers & | ||||||
Services | — | — | 330,533 | — | — | |
Hotels, Restaurants & | ||||||
Leisure | — | — | 455,109 | — | — | |
Household Products | 1,317,751 | — | — | — | — | |
Industrial Conglomerates | — | — | 348,885 | — | — | |
Insurance | — | 326,952 | 204,639 | — | — | |
Marine | — | — | 467,883 | — | — | |
Media | — | — | 89,374 | — | — |
88
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Foreign Value | |||||||||||||||||||||
Quality | Emerging Markets | Risk Parity | Foreign Value | Small Cap | |||||||||||||||||
Multi Utilities | $ | — | $ | — | $ | 453,039 | $ | — | $ | — | |||||||||||
Multiline Retail | — | — | 75,245 | — | — | ||||||||||||||||
Oil, Gas & Consumable | |||||||||||||||||||||
Fuels | — | — | 530,596 | 37,685,733 | — | ||||||||||||||||
Real Estate | |||||||||||||||||||||
Management & | |||||||||||||||||||||
Development | — | 96,255 | 884,989 | — | — | ||||||||||||||||
Road & Rail | — | — | 130,734 | — | — | ||||||||||||||||
Specialty Retail | — | — | 141,936 | — | — | ||||||||||||||||
Transportation & | |||||||||||||||||||||
Infrastructure | — | — | 251,560 | — | — | ||||||||||||||||
Wireless | |||||||||||||||||||||
Telecommunication | |||||||||||||||||||||
Services | — | — | 379,746 | — | — | ||||||||||||||||
$ | 1,317,751 | $ | 2,772,373 | $ | 9,107,417 | $ | 79,431,758 | $ | 36,819,730 |
* | Common stock held by Foreign Value Small Cap and labeled as Level 3 consists of the market value of the common stock labeled as Level 3 in the following industries. No other Fund held common stock labeled as Level 3 as of March 31, 2017: |
Foreign Value | ||
Risk Parity | Small Cap | |
Leisure Products | $ — | $ 73,437 |
Semiconductor Equipment + Products | — | — |
$ 0 | $ 73,437 |
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, 2017;
Impact to Valuation from a | ||||||||||||||
Common | Fair Value | Valuation | Unobservable | Decrease | ||||||||||
Stock | March 31, 2017 | Methodologies | Input (1) | Range | in Input (2) | |||||||||
Foreign Value | $ | 73,437 | Market | Comparability | 100% | Decrease | ||||||||
Small Cap | Comparable | Adjustment | ||||||||||||
Risk Parity | $ | — | Market | Comparability | 100% | Decrease | ||||||||
Comparable | Adjustment |
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. |
89
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Offsetting Assets and Liabilities
The Funds have adopted financial reporting rules regarding offsetting assets and liabilities and related arrangements to enable users of their financial statements to understand the effect of those arrangements on their financial position. During the year ended March 31, 2017, the Funds were not subject to any master netting arrangements or similar agreements.
The table below shows the offsetting assets and liabilities relating to the repurchase agreement and the securities lending agreements shown on the Statement of Assets and Liabilities.
Gross Amounts not offset in the | ||||||||
Gross Amounts | Net Amounts | Statement of Financial Position | ||||||
Gross Amounts | Offset in the | Presented in the | Collateral | |||||
Repurchase | of Recognized | Statement of | Statement of | Financial | Pledged | Net | ||
Agreements | Assets | Financial Position | Financial Position | Instruments | (Received) | Amount | ||
Quality | $ 1,764,025 | $ — | $ 1,764,025 | $ 1,764,025 | $ — | $ — | ||
Emerging Markets | 235,366 | — | 235,366 | 235,366 | — | — | ||
Risk Parity | 39,359 | �� — | 39,359 | 39,359 | — | — |
The type and maturity of non-cash collateral in relation to the value of repurchase agreements on the Statement of Assets and Liabilities is as follows:
Up to | 30–90 | Greater than | |||
Name | Fund/Collateral Type | 30 Days | Days | 90 Days | Total |
Quality | U.S. Treasury Obligations | $ — | $ — | $1,764,025 | $ 1,764,025 |
Emerging Markets | U.S. Treasury Obligations | — | — | 235,366 | 235,366 |
Risk Parity | U.S. Treasury Obligations | — | — | 39,359 | 39,359 |
Gross Amounts not offset in the | ||||||||||||
Gross Amounts | Net Amounts | Statement of Financial Position | ||||||||||
Gross Amounts | Offset in the | Presented in the | Collateral | |||||||||
of Recognized | Statement of | Statement of | Financial | Pledged | Net | |||||||
Security Lending | Liabilities | Financial Position | Financial Position | Instruments | (Received) | Amount | ||||||
Small Cap | $ 6,245,390 | $ — | $ 6,245,390 | $ 6,245,390(a) | $ — | $ — | ||||||
Quality | 3,872,331 | — | 3,872,331 | 3,872,331(a) | — | — | ||||||
Emerging Markets | 768,460 | — | 768,460 | 768,460(a) | — | — | ||||||
Risk Parity | 1,090,602 | — | 1,090,602 | 1,090,602(a) | — | — |
(a) Collateral for securities on loan is included in the Schedule of Investments.
The type and maturity of non-cash collateral in relation to the value of security lending on the Statement of Assets and Liabilities is as follows:
Up to | 30–90 | Greater than | |||
Name | Fund/Collateral Type | 30 Days | Days | 90 Days | Total |
Small Cap | Money Market | $ 6,245,390 | $ — | $ — | $ 6,245,390 |
Quality | Money Market | 3,872,331 | — | — | 3,872,331 |
Emerging Markets | Money Market | 768,460 | — | — | 768,460 |
Risk Parity | Money Market | 1,090,602 | — | — | 1,090,602 |
90
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Guarantees and Indemnifications
In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be 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 (the date the order to buy or sell is executed). 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 is recorded as a reduction of cost of investments and/or as a realized gain. Each Fund estimates the components of distributions that may be considered nontaxable distributions or capital gain distributions for tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis. Each Fund's investment income and realized and unrealized gains and losses are allocated among classes based upon the daily relative net assets.
Repurchase Agreements
The Funds' custodian takes possession of securities collateralizing repurchase agreements through the federal book-entry system. Collateral is marked-to-market daily to confirm that the market value of the underlying assets remains sufficient to protect the Funds. The Funds may experience costs and delays in liquidating the collateral if the issuer of the collateral defaults or enters into bankruptcy.
91
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
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 a 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.
The purchase of participatory notes involves risk that is in addition to the risks normally associated with a direct investment in the underlying securities. A Fund is subject to the risk that the issuer of the participatory note (i.e., the issuing bank or broker-dealer), which is the only responsible party under the note, is unable or refuses to perform under the terms of the participatory note.
Foreign Currency Transactions
All monetary items denominated in foreign currencies are translated into U.S. dollars based on the prevailing exchange rate at the close of each business day. Income and expenses denominated in foreign currencies are translated at the prevailing rates of exchange when accrued or incurred.
Reported net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on investment transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments.
Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to manage their exposure to fluctuations in certain foreign currencies. A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a set price. 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.
92
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Spot Foreign Currency Contracts at March 31, 2017:
Foreign Value Fund | |||||
Unrealized appreciation | |||||
Currency to deliver | Local Value | In exchange for | Settlement Date | (depreciation) | |
United States Dollar | 504,317 | GBP 404,944 | 4/03/17 | $ | (3,301) |
$ | (3,301) |
Securities Lending
To generate additional income, each of Small Cap, Quality, Emerging Markets and Risk Parity lend its securities to institutional investors using Securities Finance Trust Company ("eSecLending") as its lending agent. Small Cap, Quality, Emerging Markets and Risk Parity may each lend up to 30 percent of its assets pursuant to certain agreements ("Securities Lending Agreements") requiring that the loan be continuously secured. Securities loaned are arranged by eSecLending with certain pre-approved borrowers, typically broker-dealers acting on behalf of institutional clients. The borrowers are required to provide cash or securities as collateral against loaned securities in the amount of 105 percent of the market value of borrowings for loans of non-U.S. equities and non-U.S. fixed income securities, and 102 percent of the borrowings for loans of U.S. equities and U.S. fixed income securities. Collateral is marked-to-market daily. Cash collateral is invested in a registered money market fund.
Risks, such as delay in recovery of lent securities, may occur should the borrower of the securities fail financially or should the value of the securities loaned increase above the value of the collateral received. eSecLending provides indemnification insurance via highly rated third party insurers to cover these potential risks.
At March 31, 2017, the following Funds had collateral and loans outstanding of:
Value of Collateral | Value of Loaned Securities | ||
Small Cap | $ 6,245,390 | 6,114,285 | |
Quality | 3,872,331 | 3,794,291 | |
Emerging Markets | 768,460 | 731,797 | |
Risk Parity | 1,090,602 | 1,024,242 |
Allocations of Trust Expenses
Trust expenses attributable to a specific Fund are allocated 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 fees for R6 Shares and Institutional Shares, are allocated to that class. Fund expenses that are not attributable to a specific class, which includes management fees, custody expenses, and most other regular expenses, are allocated to all classes in proportion to the respective net assets of the Fund's classes. (See Note 3.)
93
PEAR TREE FUNDS
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 percentage of adjusted net assets at the beginning of the day. (See Note 3.)
Distributions to Shareholders
Distributions to shareholders are recorded as of the ex-dividend date. Distributions paid by each Fund with respect to each class of shares are calculated in the same manner, at the same time, and in the same amount, except that Ordinary Shares incur 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, Sub-Advisory Fees and Other Affiliate Transactions
Management Fees
The Funds have entered into a management agreement (the "Management Agreement") with Pear Tree Advisors, Inc. (the "Manager"). 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 rate of such fees is 1.00 percent of the average daily total net assets of each of the Funds, except for Small Cap and Risk Parity, for which there is an annual rate 0.80 percent and 0.60 percent of the average daily total net assets, respectively.
For the period of March 31,2017through July 31, 2018, with respect to Foreign Value and Foreign Value Small Cap, the Manager has agreed to waive a portion of its management fee that it would otherwise receive under the Management Agreement such that the 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. The Trustees have the right to terminate this arrangement in its discretion.
From January 27, 2011 to July 31, 2013, the Manager had waived a portion of its management fee relating to Quality Fund by an amount equal to the annualized rate of 0.15 percent of Quality Fund's average daily net assets if and when the Quality Fund's average daily net assets were up to $100 million, and in an amount equal to the annualized rate of 0.25 percent of Quality Fund's average daily net assets if and when Quality Fund's average daily net assets equal to or greater than $100 million. From April 1, 2011 to August 1, 2013, the Manager had waived or reimbursed Fund expenses relating to Institutional Shares of Quality Fund such that the total annualized fund operating expenses relating to Institutional Shares were not more than 1.00 percent.
94
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Beginning December 1, 2013, the Manager has agreed until July 31, 2018 to waive a portion of its management fee relating to Quality Fund by an amount equal to the annualized rate of 0.25 percent of Quality Fund's average daily net assets if and when the Quality Fund's average daily net assets up to and including $125 million, and in an amount equal to the annualized rate of 0.50 percent of Quality Fund's average daily net assets if and when Quality Fund's average daily net assets in excess of $125 million. The Trustees have the right to terminate this arrangement in its discretion.
Beginning March 18, 2016, the Manager contractually agreed until July 31, 2018 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 Emerging Markets Fund, such that the aggregate management fee that the Manager would receive during the waiver period for serving as the investment manager of Emerging Markets Fund would be calculated using (a) an annual rate of 0.78 percent if Emerging Markets Fund's net assets are up to $300 million, (b) an annual rate of 0.83 percent if Emerging Markets Fund's net assets are between $300 million and $600 million, and (c) an annual rate of 0.88 percent if Emerging Markets Fund's net assets are in excess of $600 million. The Trustees have the right to terminate this arrangement in its discretion.
In addition, under the Management Agreement, the Manager has agreed to reduce its compensation, and if necessary, assume expenses, with respect to Small Cap 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, 2017, aggregate amount of management fees, exclusive of fee waivers and Fund reimbursements, from all Funds was $24,174,462.
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: Columbia Partners, L.L.C., Investment Management (Quality), PanAgora Asset Management, Inc. (Emerging Markets and Risk Parity), and Polaris Capital Management, LLC (Small Cap, Foreign Value, and Foreign Value Small Cap).
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, 2017, 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 |
95
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Quality | 0.10% of the first $100 million and |
0.08% of amounts in excess of $100 million but less than | |
$250 million and | |
0.06% of amounts in excess of $250 million of average daily | |
total net assets | |
Emerging Markets | 0.47% of the first $300 million and |
0.50% of amounts in excess of $300 million of average daily | |
total net assets | |
Effective March 18, 2016: | |
0.25% of the first $300 million and | |
0.30% of amounts in excess of $300 million but less than | |
$600 million and | |
0.35% of amounts in excess of $600 million of average daily | |
total net assets | |
Risk Parity | 0.25% of the first $300 million and |
0.30% of amounts in excess of $300 million but less than | |
$600 million and | |
0.35% of amounts in excess of $600 million of average daily | |
total net assets | |
Foreign Value | 0.35% of the first $35 million and |
0.40% of amounts in excess of $35 million but less than | |
$200 million and | |
0.50% of assets in excess of $200 million of average daily | |
total net assets | |
Foreign Value Small Cap | 0.35% of the first $35 million and |
0.40% of amounts in excess of $35 million but less than | |
$200 million and | |
0.50% of amounts in excess of $200 million of average daily | |
total net assets. |
As of March 31, 2017 and until July 31, 2018, the Sub-Adviser to each of Foreign Value and Foreign Value Small Cap Fund 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:
96
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
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 assets 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. |
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 Funds have entered into a distribution agreement (the "Distribution Agreement") with U.S. Boston Capital Corporation (the "Distributor"). For its services under the Distribution Agreement, the Distributor 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, 2017, the aggregate 12b-1 distribution fees of the Funds were $3,609,953.
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, with respect to Ordinary Shares and Institutional Shares, provides for base fees that 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. As of March 31, 2017, 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 of each of Small Cap, Foreign Value and Foreign Value Small Cap would be calculated using an annual rate of 0.04 percent of that Fund's net assets attributable to Institutional Shares.
During the year ended March 31, 2017, the aggregate amount of transfer agent fees paid by the Funds, exclusive of fee waivers, was $4,072,378.
97
PEAR TREE FUNDS
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, 2017, the aggregate amount of fees paid by all Funds pursuant to this agreement was $749,001.
The Trustees have approved reimbursement to the Manager for a percentage of the compensation paid by the Manager to the Trust's Chief Compliance Officer. For the year ended March 31, 2017, the Trust reimbursed the Manager a portion of the Chief Compliance Officer's compensation in the aggregate amount of $230,677.
Custody and Fund Accounting
Custody and fund accounting services are provided to the Funds by State Street Bank and Trust Company ("State Street"). State Street is not affiliated with the Manager, any Sub-Adviser, or the Distributor. Custody credits generated by interest earned on uninvested cash balances maintained by the Funds are used to offset custodial expenses of the Funds.
Trustees' Fees
For the year ended March 31, 2017, each Trustee who was not an "interested person" of the Trust, as that term is defined in the 1940 Act, received a fee for serving in that role in the aggregate amount of $36,500, and each of the Chairman of the Audit Committee and the Lead Independent Trustee received additional payments in the aggregate amount of $3,000. Compensation for the services of the Trustee who was an interested person of the Trust during that period was paid by the Manager. All fees paid to the Trustees were allocated among the Funds in proportion to their respective net assets.
Fund Investments in Securities of Affiliated Entities
As of March 31, 2017, the market value of all securities of affiliated companies held in Emerging Markets Fund amounted to $57,407,743, representing 51.9% of net assets. As of March 31, 2017, no other Fund held securities of affiliated companies.
Share | Share | Realized | ||||||
Balance | Balance | Gain | LT Cap | Dividend | Value | Acquisition | ||
Name | 3/31/16 | Purchases Reinvested | 3/31/17 | Loss | Gain | Income | 3/31/17 | Cost |
Risk Parity | 5,829,244 | 384,938 80,527 | 6,294,709 | — | — | $ 680,453 | $ 57,407,743 | $ 60,543,226 |
Fund |
4. Purchases and Sales
During the year ended March 31, 2017, purchases of investment securities, other than U.S. Government obligations and short-term investments for Small Cap, Quality, Emerging Markets, Risk Parity, Foreign Value, and Foreign Value Small Cap, were $37,544,785, $36,906,327, $55,568,093, $27,112,380, $237,497,639, and $245,518,558, respectively. Sales of such securities for the Funds were $37,993,713, $53,810,045, $71,905,165, $22,887,666, $312,884,822 and $275,616,466, respectively.
98
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
5. Contingent Liability
The Trust maintains a joint fidelity bond with the Funds' Transfer Agent through ICI Mutual Insurance Company ("ICI Mutual"). The annual premium is allocated among the Funds and the Transfer Agent. Additionally, the Funds have committed to ICI Mutual up to 300 percent of the annual premium, one-third of which was provided in cash, with each Fund's pro rata portion recorded as an asset. The remainder is secured with an irrevocable letter of credit.
6. Concentration of Risk
The relatively large investments of Emerging Markets and Risk Parity and, from time to time, Foreign Value and Foreign Value Small Cap, 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, 2017. 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, 2017 | ||||||||||
Capital Loss | Capital Loss | Capital Loss | ||||||||
Expires | Capital Loss | Short Term | Long Term | |||||||
March 31, | Expires | No Expiration | No Expiration | Total | ||||||
2018 | 2019 | Short Term | Long Term | Capital Loss | ||||||
Small Cap | $ | — | $ | — | $ | — | $ | — | $ | — |
Quality | — | — | — | — | — | |||||
Emerging Markets | 18,600,610 | — | 5,643,845 | 7,952,890 | 32,197,345 | |||||
Risk Parity | — | — | 303,451 | 3,522,743 | 3,826,194 | |||||
Foreign Value | 131,156,114 | 10,547,106 | 9,772,509 | 13,482,079 | 164,957,808 | |||||
Foreign Value Small Cap | — | — | 669,218 | 11,199,169 | 11,868,387 |
For the year ended March 31, 2017, capital losses utilized were as follows: Small Cap Fund $887,007, Emerging Markets Fund $1,127,384 and Foreign Value Fund $23,881,891. The Foreign Value Fund had $73,956,484 in capital loss carryforwards which expired March 31, 2017.
99
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
As a result of the passage of the Registered Investment Company Modification Act of 2010 ("the Act"), losses incurred in fiscal year ended March 31, 2012 and beyond retain their character as short-term or long-term and have no expiration date and are utilized before capital losses incurred prior to the Act.
The Funds recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by the tax authorities. Management has analyzed the Funds' tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2014-2016, or expected to be taken in the Funds' 2017 tax returns. The Funds identify their 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 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, 2017 | |||||||||||
Undistributed | Undistributed | Accumulated | Late-Year | Net Tax | |||||||
Org | Ordinary | Long-Term | Capital | Loss | Appreciation/ | ||||||
Portfolio | Cost | Income | Gains | Losses | Deferrals | (Depreciation) | Total | ||||
Small Cap Fund | $ — | $ | 93,804 | $ 5,700,422 | $ — | $ — | $ 30,731,937 | $ 36,526,163 | |||
Quality Fund | — | 645,389 | 3,895,506 | — | — | 19,155,532 | 23,696,427 | ||||
Emerging Markets Fund | — | 1,436,751 | — | (32,197,345) | — | 1,828,442 | (28,932,152) | ||||
Risk Parity Fund | (39,358) | 130,122 | — | (3,826,194) | — | 326,268 | (3,409,162) | ||||
Foreign Value Fund | — | 19,999,166 | — | (164,957,808) | — | 277,669,479 | 132,710,837 | ||||
Foreign Value | |||||||||||
Small Cap Fund | — | 4,536,047 | — | (11,868,387) | — | 73,967,400 | 66,635,060 |
At March 31, 2017, the tax composition of dividends was as follows:
Ordinary | Long-Term | Tax Return | |||
Portfolio | Income | Capital Gains | Of Capital | ||
Small Cap Fund | $ | 625,949 | $ 668,292 | $ — | |
Quality Fund | 1,583,642 | 5,124,782 | — | ||
Emerging Markets Fund | 2,010,935 | — | — | ||
Risk Parity Fund | 700,812 | — | — | ||
Foreign Value Fund | 17,856,565 | — | — | ||
Foreign Value Small Cap Fund | 6,767,400 | 3,285,736 | — |
100
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
At March 31, 2016, the tax composition of dividends was as follows:
Ordinary | Long-Term | Tax Return | ||||
Portfolio | Income | Capital Gains | Of Capital | |||
Small Cap Fund | $ | 300 | $ 6,565,186 | $ — | ||
Quality Fund | 2,087,487 | 11,704,554 | — | |||
Emerging Markets Fund | 1,889,308 | — | — | |||
Risk Parity Fund | 513,452 | — | — | |||
Foreign Value Fund | 28,536,391 | — | — | |||
Foreign Value Small Cap Fund | 9,046,996 | 2,320,261 | — |
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, 2017, permanent differences in book and tax accounting have been reclassified to shares of beneficial interest, undistributed/(over-distributed) net investment income and accumulated net realized gain/(loss) on investments and foreign denominated assets, liabilities and currency.
Increase/(Decrease) | |||||
Accumulated Net Gain/ | |||||
Undistributed/ | (Loss) on Investments and | ||||
Shares of | Accumulated | Foreign Denominated | |||
Beneficial | Net Investment | Assets, Liabilities and | |||
Interest | Income | Currency | |||
Small Cap Fund | $ | — | $ (91,653) | $ | 91,653 |
Quality Fund | — | (23,621) | 23,621 | ||
Emerging Markets Fund | (57,206) | 57,206 | |||
Risk Parity | — | (49,245) | 49,245 | ||
Foreign Value Fund | (73,956,481) | 5,294,942 | 68,661,539 | ||
Foreign Value Small Cap Fund | — | (242,988) | 242,988 |
The 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) and capital loss carryovers expiring in current year.
101
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
8. Transactions in Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
Year ended | Year ended | ||||||||
March 31, 2017 | March 31, 2016 | ||||||||
Shares | Dollars | Shares | Dollars | ||||||
Small Cap | |||||||||
Ordinary Shares | |||||||||
Shares sold | 283,393 | $ | 7,334,911 | 184,484 | $ | 4,194,675 | |||
Shares issued in reinvestment of distributions | 43,578 | 1,136,504 | 274,826 | 5,969,216 | |||||
Contributions to capital from investment managers/ brokers | — | — | — | 873 | |||||
Shares redeemed | (398,871) | (9,416,909) | (221,202) | (5,054,249) | |||||
Net Change | (71,900) | (945,494) | 238,108 | 5,110,515 | |||||
Institutional Shares | |||||||||
Shares sold | 35,744 | $ | 1,087,339 | 92,573 | $ | 2,191,546 | |||
Shares issued in reinvestment of distributions | 2,647 | 80,608 | 8,391 | 212,276 | |||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||
Shares redeemed | (33,561) | (1,002,628) | (3,837) | (99,290) | |||||
Net Change | 4,830 | 165,319 | 97,127 | 2,304,532 | |||||
Total Net Change For Fund | $ | (780,175) | $ | 7,415,047 | |||||
Quality | |||||||||
Ordinary Shares | |||||||||
Shares sold | 472,657 | $ | 7,955,745 | 365,249 | $ | 5,969,355 | |||
Shares issued in reinvestment of distributions | 311,033 | 5,013,853 | 782,607 | 12,232,145 | |||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||
Shares redeemed | (1,321,679) | (22,233,546) | (833,946) | (14,044,377) | |||||
Net Change | (537,989) | (9,263,948) | 313,910 | 4,157,123 |
102
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Year ended | Year ended | ||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||
Shares | Dollars | Shares | Dollars | ||||||||
Institutional Shares | |||||||||||
Shares sold | 49,012 | $ 866,118 | 73,533 | $ 1,366,866 | |||||||
Shares issued in reinvestment of distributions | 23,556 | 403,977 | 63,192 | 1,047,094 | |||||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||||
Shares redeemed | (213,719) | (3,785,402) | (252,872) | (4,507,811) | |||||||
Net Change | (141,151) | (2,515,307) | (116,147) | (2,093,851) | |||||||
Total Net Change For Fund | $ (11,779,255) | $ 2,063,272 | |||||||||
Emerging Markets | |||||||||||
Ordinary Shares | |||||||||||
Shares sold | 570,000 | $ 10,837,018 | 588,905 | $ 11,569,615 | |||||||
Shares issued in reinvestment of distributions | 80,974 | 1,523,927 | 86,329 | 1,497,799 | |||||||
Contributions to capital from investment manager/ brokers | — | — | — | 135 | |||||||
Shares redeemed | (1,309,718) | (25,121,553) | (787,118) | (15,269,917) | |||||||
Net Change | (658,744) | (12,760,608) | (111,884) | (2,202,368) | |||||||
Institutional Shares | |||||||||||
Shares sold | 349,192 | $ 6,950,354 | 377,275 | $ 7,417,539 | |||||||
Shares issued in reinvestment of distributions | 6,700 | 127,700 | 13,173 | 231,454 | |||||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||||
Shares redeemed | (667,008) | (12,648,814) | (247,081) | (4,690,144) | |||||||
Net Change | (311,116) | (5,570,760) | 143,367 | 2,958,849 | |||||||
Total Net Change For Fund | $ (18,331,368) | $ 756,481 |
103
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Year ended | Year ended | ||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||
Shares | Dollars | Shares | Dollars | ||||||||
Risk Parity | |||||||||||
Ordinary Shares | |||||||||||
Shares sold | 4,273 | $ | 37,674 | 8,035 | $ | 71,915 | |||||
Shares issued in reinvestment of distributions | 1,724 | 14,514 | 1,678 | 12,718 | |||||||
Contributions to capital from investment manager/brokers | — | 93 | — | — | |||||||
Shares redeemed | (5,798) | (49,178) | (1,772) | (15,420) | |||||||
Net Change | 199 | 3,103 | 7,941 | 69,213 | |||||||
Institutional Shares | |||||||||||
Shares sold | 394,316 | $ | 3,442,139 | 1,872,838 | $ | 16,387,195 | |||||
Shares issued in reinvestment of distributions | 81,219 | 686,298 | 65,800 | 500,735 | |||||||
Contributions to capital from investment manager/ brokers | — | 3,440 | — | — | |||||||
Shares redeemed | (199) | (1,667) | (1,087) | (8,686) | |||||||
Net Change | 475,336 | 4,130,210 | 1,937,551 | 16,879,244 | |||||||
Total Net Change For Fund | $ | 4,133,313 | $ | 16,948,457 | |||||||
Foreign Value | |||||||||||
Ordinary Shares | |||||||||||
Shares sold | 4,962,796 | $ | 87,128,974 | 12,725,056 | $ | 230,659,413 | |||||
Shares issued in reinvestment of distributions | 468,682 | 8,347,237 | 913,626 | 15,157,062 | |||||||
Contributions to capital from investment manager/brokers | — | — | — | 901 | |||||||
Shares redeemed | (15,294,594) | (266,542,853) | (14,102,592) | (246,375,549) | |||||||
Net Change | (9,863,116) | (171,066,642) | (463,910) | (558,173) | |||||||
Institutional Shares | |||||||||||
Shares sold | 8,533,395 | $ | 150,411,751 | 13,038,132 | $ | 227,098,485 | |||||
Shares issued in reinvestment of distributions | 509,830 | 9,054,588 | 736,164 | 12,176,159 | |||||||
Contributions to capital from investment managers/ brokers | — | 557 | — | 618 | |||||||
Shares redeemed | (10,304,811) | (180,629,437) | (4,586,255) | (77,735,164) | |||||||
Net Change | (1,261,586) | (21,162,541) | 9,188,041 | 161,540,098 |
104
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Year ended | Year ended | ||||||||||||
March 31, 2017 | March 31, 2016 | ||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||
R6 Shares | |||||||||||||
Shares sold | 3,578,619 | $ | 36,208,590 | — | $ | — | |||||||
Shares issued in reinvestment of distributions | — | — | — | — | |||||||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||||||
Shares redeemed | (857) | (8,751) | — | — | |||||||||
Net Change | 3,577,762 | 36,199,839 | — | — | |||||||||
Total Net Change For Fund | $ | (156,029,344) | $ | 160,981,925 | |||||||||
Foreign Value Small Cap | |||||||||||||
Ordinary Shares | |||||||||||||
Shares sold | 2,947,872 | $ | 36,741,548 | 13,971,473 | $ | 188,283,238 | |||||||
Shares issued in reinvestment of distributions | 357,850 | 4,372,932 | 505,562 | 6,056,637 | |||||||||
Contributions to capital from investment managers/ brokers | — | — | — | 153 | |||||||||
Shares redeemed | (7,058,318) | (87,527,124) | (8,432,240) | (104,485,474) | |||||||||
Net Change | (3,752,596) | (46,412,644) | 6,044,795 | 89,854,554 | |||||||||
Institutional Shares | |||||||||||||
Shares sold | 6,689,956 | $ | 83,904,969 | 15,595,063 | $ | 198,515,213 | |||||||
Shares issued in reinvestment of distributions | 392,576 | 4,797,280 | 345,253 | 4,139,583 | |||||||||
Contributions to capital from investment managers/ brokers | — | — | — | 325 | |||||||||
Shares redeemed | (6,714,425) | (83,271,246) | (8,487,224) | (105,261,578) | |||||||||
Net Change | 368,107 | 5,431,003 | 7,453,092 | 97,393,543 | |||||||||
R6 Shares | |||||||||||||
Shares sold | 181,237 | $ | 1,826,199 | — | $ | — | |||||||
Shares issued in reinvestment of distributions | — | — | — | — | |||||||||
Contributions to capital from investment managers/ brokers | — | — | — | — | |||||||||
Shares redeemed | — | — | — | — | |||||||||
Net Change | 181,237 | 1,826,199 | — | — | |||||||||
Total Net Change for Fund | $ | (39,155,442) | $ | 187,248,097 |
105
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
Federal Tax Information (unaudited) | |
Designation Requirements at March 31, 2017 | |
Qualified Dividend Income Percentage | |
Small Cap Fund | 100% |
Quality Fund | 100% |
Emerging Markets Fund | 88% |
Risk Parity Fund | 96% |
Foreign Value Fund | 100% |
Foreign Value Small Cap Fund | 100% |
The Funds may elect under section 853 of the Internal Revenue Code to pass through foreign tax credit to its shareholders for the year ended March 31, 2017.
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 | ||
Emerging Market Fund | 248,234 | 2,289,782 | |
Risk Parity Fund | 161,988 | 1,491,942 | |
Foreign Value Fund | 4,913,853 | 49,157,262 | |
Foreign Value Small Cap | 1,505,469 | 19,482,706 |
106
PEAR TREE FUNDS
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Shareholders and Trustees of the Pear Tree Funds
We have audited the accompanying statements of assets and liabilities of the Pear Tree Polaris Small Cap Fund, Pear Tree Quality Fund, Pear Tree PanAgora Emerging Markets Fund, Pear Tree PanAgora Risk Parity Emerging Markets Fund, Pear Tree Polaris Foreign Value Fund, and Pear Tree Polaris Foreign Value Small Cap Fund, each a series of the Pear Tree Funds ("the Funds"), including the schedules of investments, as of March 31, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended except for the Pear Tree PanAgora Risk Parity Emerging Markets Fund in which the financial highlights were for each of the three years in the period then ended and for the period June 27, 2013 (commencement of operations) through March 31, 2014. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2017 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above mentioned series of the Pear Tree Funds, as of March 31, 2017, the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
May 18, 2017
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PEAR TREE FUNDS
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-Q. The Funds' Forms N-Q are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (Call 1-800-SEC-0330 for more information). For a complete list of a fund's portfolio holdings, you may also view the most recent monthly holdings report, semi-annual report or annual report on the Pear Tree Funds' web site at www.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, 2016 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.
108
PEAR TREE FUNDS
TRUSTEES AND OFFICERS
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. Armstrong, 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 1-800-326-2141.
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.
Other | |||||
Term of | Number of | Directorships | |||
Office/ | Principal | Portfolios | Held by | ||
Position | Length | Occupation(s) | in Fund | Trustee | |
Name | Held With | of Time | during Past | Complex | in Public |
and Age | Trust | Served | Five Years | Overseen | Companies |
Robert M. Armstrong | Trustee | Indefinite | Independent Director and | 6 | NewPage Corporation |
(78) | Term | Consultant Services | (2006–2012); | ||
(1985 to | (1998–Present); Director, | NewPage Holding | |||
present) | NewPage Corporation, | Corporation | |||
NewPage Holding | (2006–2012); | ||||
Corporation and NewPage | NewPage Group, Inc. | ||||
Group, Inc. (2006–2012) | (2006–2012) | ||||
John M. Bulbrook | Trustee | Indefinite | CEO and Treasurer, John | 6 | None |
(74) | Term | M. Bulbrook Insurance | |||
(1985 to | Agency, Inc. (d/b/a | ||||
present) | Bulbrook/Drislane | ||||
Brokerage) (distributor of | |||||
financial products, | |||||
including insurance) | |||||
(1984–Present); |
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PEAR TREE FUNDS
TRUSTEES AND OFFICERS (continued)
Other | |||||
Term of | Number of | Directorships | |||
Office/ | Principal | Portfolios | Held by | ||
Position | Length | Occupation(s) | in Fund | Trustee | |
Name | Held With | of Time | during Past | Complex | in Public |
and Age | Trust | Served | Five Years | Overseen | Companies |
William H. Dunlap | Trustee | Indefinite | President, New Hampshire | 6 | None |
(65) | Term | Historical Society, (Feb. | |||
(October | 2001–Present); Principal, | ||||
2006 to | William H. Dunlap & | ||||
present) | Company (consulting | ||||
firm)(2006–Present); | |||||
President, EQ Rider, Inc., | |||||
(equestrian clothing sales) | |||||
(1998–2008); Director, | |||||
Merrimack County Savings | |||||
Bank (2005–Present); | |||||
Director, Merrimack Bank | |||||
Corp. (2005–2015) | |||||
Clinton S. Marshall | Trustee | Indefinite | Principal, Coastal CFO | 6 | None |
(59) | Term (April | Solutions, outsource firm | |||
2003 to | offering CFO solutions to | ||||
present) | businesses | ||||
(1998–Present); CFO, Fore | |||||
River Company | |||||
(2002–Present) |
110
PEAR TREE FUNDS
TRUSTEES AND OFFICERS (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.
Other | |||||
Term of | Number of | Directorships | |||
Office/ | Principal | Portfolios | Held by | ||
Position | Length | Occupation(s) | in Fund | Trustee/Officer | |
Name | Held With | of Time | during Past | Complex | in Public |
and Age | Trust | Served | Five Years | Overseen | Companies |
Willard L. Umphrey* | Trustee, | Indefinite | Director, U.S. Boston | 6 | U.S. Boston |
(75) | President, | Term | Capital Corporation; | Corporation; U.S. | |
Chairman | (1985 to | President, Pear Tree | Boston Asset | ||
(1985 to | present) | Advisors, Inc. | Management | ||
present) | 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; | |||||
SCVNGR, Inc. | |||||
Leon Okurowski (74) | Vice | (1985 to | Director and Vice | N/A | Everest USB |
President, | present) | President, U.S. Boston | Canadian Storage, | ||
Treasurer | Capital Corporation; | Inc.; Pear Tree | |||
(1985 to | Treasurer, Pear Tree | Advisors, Inc.; U.S. | |||
present) | Advisors, Inc.; Trustee, | Boston Corporation; | |||
Pear Tree Funds | U.S. Boston Asset | ||||
(4/17/1985–9/30/2004) | 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 |
111
PEAR TREE FUNDS
TRUSTEES AND OFFICERS (continued)
Other | |||||
Term of | Number of | Directorships | |||
Office/ | Principal | Portfolios | Held by | ||
Position | Length | Occupation(s) | in Fund | Trustee/Officer | |
Name | Held With | of Time | during Past | Complex | in Public |
and Age | Trust | Served | Five Years | Overseen | Companies |
Deborah A. Kessinger | Assistant | (April | Senior Counsel (since | N/A | None |
(53) | Clerk and | 2005 to | 9/04), President (since | ||
Chief | Present) | 8/07) and Chief | |||
Compliance | Compliance Officer (since | ||||
Officer | 12/05), U.S. Boston | ||||
Capital Corporation; Senior | |||||
Counsel (since 9/2004) | |||||
and Chief Compliance | |||||
Officer (since 10/2006), | |||||
Pear Tree Advisors, Inc.; | |||||
Chief Compliance Officer | |||||
and General Counsel, | |||||
Wainwright Investment | |||||
Counsel, LLC (investment | |||||
management firm) | |||||
(2000–2004); Compliance | |||||
Attorney, Broadridge | |||||
Financial Solutions | |||||
(formerly Forefield, Inc.) | |||||
(software provider) | |||||
(2001–2004) and | |||||
Compliance Consultant | |||||
(2007 to 2016) | |||||
Diane Hunt | Assistant | (June | Controller (Since 3/2010) | N/A | None |
(54) | Treasurer | 2010 to | Pear Tree Advisors, Inc.; | ||
Present) | Accountant (Since 1984) | ||||
U.S. Boston Capital | |||||
Corporation | |||||
Alina Monisov | Clerk | February | Senior Compliance | N/A | None |
(34) | 2017 to | Manager, Pear Tree | |||
Present) | Advisors, Inc.; Chief | ||||
Compliance Officer and | |||||
Trust Administration | |||||
Associate, Winslow Wealth | |||||
Management (8/2013– | |||||
12/2016); Investment | |||||
Compliance Business | |||||
Analyst, JP Morgan | |||||
(7/2008–6/2013) |
* | 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. |
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PEAR TREE FUNDS
SERVICE PROVIDERS
Manager | Pear Tree Advisors, Inc., 55 Old Bedford Road, |
Suite 202, Lincoln, MA 01773 | |
Subadvisers | Columbia Partners, L.L.C., Investment Management, |
5425 Wisconsin Avenue, Suite 700, Chevy Chase, MD 20815 | |
PanAgora Asset Management, Inc., 470 Atlantic Avenue, | |
8th Floor, Boston, MA 02210 | |
Polaris Capital Management, LLC, 121 High Street, | |
Boston, MA 02110 | |
Distributor | U.S. Boston Capital Corporation, 55 Old Bedford Road, |
Suite 202, Lincoln, MA 01773 | |
Custodian | State Street Bank and Trust Company, One Lincoln Street, |
Boston, MA 02111 | |
Fund Accountant | State Street Bank and Trust Company, One Lincoln Street, |
Boston, MA 02111 | |
Transfer Agent | Pear Tree Institutional Services, 55 Old Bedford Road, |
Suite 202, Lincoln, MA 01773 | |
Independent Registered | Tait, Weller & Baker LLP, 1818 Market Street, Suite 2400 |
Public Accounting Firm | Philadelphia, PA 19103 |
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 |
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. |
(e) Not applicable.
(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 2016 | FY 2017 | ||
Audit Fees* | Tait Weller | $137,000 | $141,000 |
Audit-Related Fees** | Tait Weller | $0 | $0 |
Tax Fees*** | Tait Weller | $19,600 | $20,200 |
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. |
(f) Not applicable.
(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. |
2016 | 2017 | ||
Fees | Tait Weller | $39,500 | $39,500 |
(h) | Not applicable. |
ITEM 5. Audit Committee of Listed Registrants
Not applicable.
ITEM 6. Investments
(a) | Included as part of report to shareholders under Item 1. |
(b) | Not applicable. |
ITEM 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
ITEM 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
ITEM 9 | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not applicable.
ITEM 10 Submission of Matters to a Vote of Security Holders
Not applicable.
ITEM 11. Controls and Procedures
(a) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the 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.
(b) 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. Exhibits
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Rule 30a-2(a) by the chief executive and financial officers.
(a)(3) Not applicable.
(c) | Certification pursuant to Rule 30a-2(b) and Section 906 by the chief executive and financial officers. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pear Tree Funds
By: /s/ Willard L. Umphrey
Willard L. Umphrey, President
Date: June 1, 2017
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: June 1, 2017
By: /s/ Leon Okurowski
Leon Okurowski, Treasurer
Date: June 1, 2017