PROSPECTUS
August
1, 2017
|
Ordinary
Shares |
Institutional
Shares |
R6
Shares |
U.S.
EQUITY FUNDS |
|
|
|
Pear
Tree Polaris Small Cap Fund |
USBNX |
QBNAX |
** |
Pear
Tree Quality Fund |
USBOX |
QGIAX |
** |
|
|
|
|
INTERNATIONAL
EQUITY FUNDS |
|
|
|
Pear
Tree PanAgora Emerging Markets Fund* |
QFFOX |
QEMAX |
** |
Pear
Tree PanAgora Risk Parity Emerging Markets Fund |
RPEMX |
EMRPX |
** |
Pear
Tree Polaris Foreign Value Fund |
QFVOX |
QFVIX |
QFVRX |
Pear
Tree Polaris Foreign Value Small Cap Fund |
QUSOX |
QUSIX |
QUSRX |
As
with all mutual fund shares, these securities have not been approved or
disapproved by the Securities and Exchange Commission, and the Securities and
Exchange Commission has not determined if this prospectus is accurate or
complete. Any representation to the contrary is a criminal offense.
*Formerly
"Pear Tree PanAgora Dynamic Emerging Markets Fund"
**R6
Shares of these Pear Tree Funds currently are not being offered for sale.
Table
of Contents
|
Page |
|
3 |
|
48 |
|
72 |
|
75 |
|
80 |
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82 |
|
82 |
|
85 |
|
86 |
|
88 |
|
89 |
|
92 |
|
109 |
Pear
Tree Polaris Small Cap Fund
Investment
Objective: Maximum long-term capital appreciation.
Fee
Table and Expenses of Small Cap Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Small Cap Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
Management
Fees |
0.80% |
0.80% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.30% |
0.30% |
Acquired
Fund Fees and Expenses |
0.19% |
0.19% |
Total
Annual Fund Operating Expenses |
1.54% |
1.29% |
Fee
Waiver and/or Expense Reimbursement1 |
N/A |
0.12% |
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement1 |
N/A |
1.17% |
1 |
The
manager, in its capacity as transfer agent to Pear Tree Funds, has
contractually agreed until July 31, 2018 to waive such portion of the fees
that it would otherwise receive for serving as transfer agent under its
agreement with Pear Tree Funds such that the aggregate transfer agent fee
with respect to Institutional Shares would be calculated using an annual
rate of 0.04 percent of Small Cap Fund's net assets attributable to
Institutional Shares. This fee waiver only may be terminated with
the approval of the Trustees. The aggregate transfer agent fee with
respect to Ordinary Shares remains
unchanged. |
Example
This
example is intended to help you compare the cost of investing in Small Cap Fund
with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in Small Cap Fund for the time periods indicated and then redeem
all of your shares at the end of those periods, that your investment has a 5
percent return each year and that Small Cap Fund's operating expenses remain the
same as set forth in the table above. The example also assumes that an
expense limitation currently in place is not renewed; therefore, the figures
have been adjusted to reflect fee waivers or expense reimbursements only in the
periods for which the expense limitation arrangement is expected to
continue. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$157 |
$486 |
$839 |
$1,834 |
Institutional
Shares |
$119 |
$397 |
$696 |
$1,546 |
Portfolio
Turnover
Small
Cap Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect Small Cap
Fund's performance. During the most recent fiscal year, Small Cap Fund's
portfolio turnover rate was 37 percent of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, Small Cap Fund invests at least 80 percent of its net
assets (plus borrowings for investment purposes) in equity securities, warrants,
and rights derivative of or convertible into common stocks, in each case issued
by small cap issuers. Small Cap Fund considers a small-cap issuer to be a
company having at time of purchase a market capitalization of approximately $100
million to $5 billion, as well as one or more collective investment funds
(registered and/or unregistered) that invests at least 80 percent of its net
assets in similar securities issued by other small cap issuers.
While
most assets are typically invested in U.S. common stocks, Small Cap Fund may
invest in American Depositary Receipts (ADRs) and other foreign stocks traded on
U.S. exchanges in keeping with Small Cap Fund's objectives. Fund assets
may be invested in growth stocks and value stocks. Small Cap Fund's
sub-adviser generally considers growth stocks to be equity securities issued by
companies that have sustainable competitive advantages and products or services
that potentially could generate significantly greater-than-average revenue and
earnings growth. The sub-adviser generally considers value stocks to be
equity securities issued by companies that have underappreciated but stable
earnings and cash flow and where there are visible and imminent inflection
points and catalysts that may result in increased earnings and cash flow,
driving stock appreciation.
Small
Cap Fund's sub-adviser uses proprietary investment technology combined with
traditional, value-based, fundamental research to identify potential
investments. The sub-adviser uses traditional valuation measures,
including price/book ratios and price/sustainable free cash flow ratios to
screen its database of more than 40,000 global companies.
The
sub-adviser uses these measures to identify companies with the greatest
potential for undervalued streams of sustainable free cash flow. The
sub-adviser conducts fundamental research, interviewing and visiting with
company management and creating detailed financial models on potential portfolio
investments. The sub-adviser also maintains a "watch-list" of companies, which
may be used if the valuation of a company held in Small Cap Fund's portfolio
falls below established limits. Small Cap Fund's sub-adviser may utilize
options on existing
security positions or indexes. The extent of the sub-adviser's use of
options may vary over time based on the sub-adviser's assessment of market
conditions and other factors.
Small
Cap Fund may invest in other derivatives (i.e., a security or instrument whose
value is determined by reference to the value or the change in value of one or
more securities, currencies, indices or other financial instruments) for the
purpose of hedging the value of the portfolio or to establish a position in the
future. Small Cap Fund also may lend its securities. Small Cap Fund
may hold cash, or it may manage its cash by investing in cash equivalents and
money market funds.
Principal
Investment Risks
It
is possible to lose money by investing in Small Cap Fund. An investment in
Small Cap Fund is not a deposit of a bank and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Market,
Industry and Specific Holdings. The share price of Small Cap Fund
may fall because of weakness in the stock markets, generally, weakness with
respect to a particular industry in which Small Cap Fund has significant
holdings, or weaknesses associated with one or more specific companies in which
Small Cap Fund may have substantial investments.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Small Cap Fund's investments
may prove to be incorrect.
Small-Capitalization
Securities. Investments in small-capitalization companies typically
present greater risks than investments in larger companies and, as a result, the
performance of Small Cap Fund may be more volatile than a fund that invests in
large-cap stocks.
Growth
and Value Stock Investing. Different investment styles periodically
come into and fall out of favor with investors. Growth stocks generally are more
volatile than the overall stock market. Value stocks carry the risk that the
market may not recognize their intrinsic value or that they are actually
appropriately priced at a low level.
Foreign
Investing. Small Cap Fund's investments in foreign securities
(including ADRs) may be adversely affected by political and economic conditions
overseas, reduced liquidity, or decreases in foreign currency values relative to
the U.S. dollar.
Liquidity
Risk. Small Cap Fund may not be able to sell some or all of its
securities at desired prices or may be unable to sell the securities at
all.
Sector.
Small Cap Fund may have significant investments in one or more specific
industry sectors, subjecting it to risks greater than general market risk.
Investments
in Another Collective Investment Fund. To the extent that Small Cap
Fund invests in another collective investment fund, such as a mutual fund or
exchange-traded fund (ETF), its investment performance would be directly related
to the investment performance of the other fund. It also would bear its
proportionate share of any management and other fees paid by the other fund,
subjecting Small Cap Fund shareholders to some duplication of fees.
Non-Diversification.
Small Cap Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a decline
in the value of the securities of one issuer could have a significant negative
effect on Small Cap Fund.
Securities
Lending. Securities lending involves two primary risks: investment
risk and borrower default risk. Investment risk is the risk that Small Cap Fund
will lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that Small Cap Fund will lose money
due to the failure of a borrower to return a borrowed security in a timely
manner.
Derivatives.
Small Cap Fund's investments in currency futures, options and other
derivative instruments are subject to a number of risks, such as counterparty
risk, the risk of mispricing or improper valuation, and the risk that the value
of the instrument may not increase or decrease as expected. Options
contracts also are subject to the risks of leveraged transactions, and it may be
difficult or impossible for the Fund to liquidate an open option contract.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Small Cap Fund by showing changes in Small Cap Fund's performance over time.
The tables also compare Small Cap Fund's performance to a broad measure of
market performance that reflects the type of securities in which Small Cap Fund
invests. Past
performance does not necessarily indicate how Small Cap Fund will perform
(before and after taxes) in the future. Performance
shown for periods prior to January 1, 2015 does not reflect the current
investment strategy or the performance of the current sub-adviser. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares commenced operations on August 3, 1992 and
January 6, 1993, respectively.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Small Cap Fund's Ordinary Shares.
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
0.18% |
(49.30)% |
33.35% |
26.93% |
(4.53)% |
13.39% |
40.21% |
(6.81)% |
(1.48)% |
20.88% |
Calendar
year-to-date return of the Ordinary Shares of Small Cap Fund as of June 30, 2017
was 2.03 percent
Highest
Quarterly Return |
Q3
2009 |
17.75% |
Lowest
Quarterly Return |
Q4
2008 |
(33.47)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
|
1
Year |
|
5
Years |
|
10
Years |
Ordinary
Shares Before Tax |
|
|
20.88 |
% |
|
|
12.03 |
% |
|
|
3.77 |
% |
After
Tax on Distributions |
|
|
20.48 |
% |
|
|
11.01 |
% |
|
|
3.21 |
% |
After
Tax on Distributions, with Sale |
|
|
12.02 |
% |
|
|
9.44 |
% |
|
|
2.91 |
% |
Institutional
Shares Before Tax |
|
|
21.20 |
% |
|
|
12.30 |
% |
|
|
4.04 |
% |
Russell
2000® Index (reflects no deductions for fees, expenses or taxes) |
|
|
21.31 |
% |
|
|
14.46 |
% |
|
|
7.07 |
% |
After-Tax
Returns. After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state or local taxes. The after-tax returns shown are not relevant if you hold
your shares in a retirement account or in another tax-deferred arrangement.
After-tax returns are shown only for Ordinary Shares, and after-tax returns for
Institutional Shares may vary. Actual after-tax returns may differ
depending on your individual circumstances.
Management
Small
Cap Fund is managed by Pear Tree Advisors, Inc. Small Cap Fund is
sub-advised by Polaris Capital Management, LLC ("Polaris").
The following employees of Polaris serve as the portfolio managers of Small Cap
Fund:
Investment
Team |
Position
at Polaris |
Manager
of the Fund Since |
Bernard
R. Horn, Jr. |
President
and Chief Investment Officer |
2015 |
Sumanta
Biswas, CFA |
Vice
President and Assistant Portfolio Manager |
2015 |
Bin
Xiao, CFA |
Assistant
Portfolio Manager |
2015 |
Jason
M. Crawshaw |
Assistant
Portfolio Manager |
2016 |
Buying
and Selling Fund Shares
You
may buy or sell shares of Small Cap Fund on any business day by contacting the
Pear Tree Funds, through mail or by phone, through your broker or financial
intermediary.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
*
May be waived by the fund or funds. |
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
|
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50
shares |
Tax
Information
Small
Cap Fund's distributions may be taxable as ordinary income or capital gains,
unless your investment is through an IRA, 401(k) or other tax-advantaged
investment plan. These tax-advantaged plans may be taxed upon withdrawal
at a later date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Small Cap Fund through a broker-dealer or other financial
intermediary (such as a bank), Small Cap Fund and its related companies may pay
the intermediary for the sale of Fund shares and related services.
These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend Small Cap
Fund over another investment. Ask your salesperson or visit your financial
intermediary's website for more information.
Pear
Tree Quality Fund
Investment
Objective: Long-term growth of capital.
Fee
Table and Expenses of Quality Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Quality Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
Management
Fees |
1.00% |
1.00% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.30% |
0.30% |
Total
Annual Fund Operating Expenses |
1.55% |
1.30% |
Fee
Waiver and/or Expense Reimbursement1 |
0.25% |
0.37% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement1 |
1.30% |
0.93% |
1 |
The
Manager has 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 Quality Fund
such that the aggregate management fee that the Manager would receive
during the waiver period for serving as the investment manager to Quality
Fund would be calculated using (a) an annual rate of 0.75 percent for the
first $125 million of Quality Fund's net assets, and (b) an annual rate of
0.50 percent for Quality Fund's net assets in excess of $125
million. This fee waiver only may be terminated with the approval of
the Trustees. |
The
Manager, in its capacity as transfer agent to Pear Tree Funds, has contractually
agreed until July 31, 2018 to waive such portion of the fees that it would
otherwise receive for serving as transfer agent under its agreement with Pear
Tree Funds such that the aggregate transfer agent fee with respect to
Institutional Shares would be calculated using an annual rate of 0.04 percent of
Quality Fund's net assets attributable to Institutional Shares. This fee
waiver only may be terminated with the approval of the Trustees. The
aggregate transfer agent fee with respect to Ordinary Shares remains
unchanged.
Example
This
example is intended to help you compare the cost of investing in Quality Fund
with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in Quality Fund for the time periods indicated and then redeem
all of your shares at the end of those periods, that your investment has a 5
percent return each year and that Quality Fund's operating expenses remain the
same as set forth in the table above. The example also assumes that an
expense limitation currently in place is not renewed; therefore, the figures
have been adjusted to reflect fee waivers or expense reimbursements only in the
periods for which the expense limitation arrangement is expected to
continue.
Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$132 |
$465 |
$821 |
$1,824 |
Institutional
Shares |
$95 |
$376 |
$677 |
$1,535 |
Portfolio
Turnover
Quality
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect Quality
Fund's performance. During the most recent fiscal year, Quality Fund's
portfolio turnover rate was 31 percent of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, Quality Fund invests at least 80 percent of its net
assets (plus any borrowings for investment purposes) in equity securities of
U.S. issuers. Quality Fund principally invests in equity securities of large
companies, that is, companies with a market capitalization of greater than $5
billion at time of purchase. However, there is no minimum market capitalization
for companies whose securities Quality Fund may purchase.
To
manage Quality Fund's portfolio, Quality Fund's investment manager, in
consultation with its sub-adviser, periodically selects what it believes is a
well-managed mutual fund (the "target portfolio") and then purchases and sells
Quality Fund assets such that Quality Fund's portfolio generally holds the same
securities and in the same percentages as the target portfolio as of the end of
the target portfolio's most recent fiscal quarter. If Quality Fund's
assets significantly increase, Quality Fund may select more than one target
portfolio. Among the criteria used to select the target portfolio are the
limited availability of the target portfolio to retail investors and the target
portfolio's historical performance. From time to time, a target portfolio
may invest in non-U.S. securities. In such cases, Quality Fund typically
invests in American Depositary Receipts (or ADRs), which represent interests in
such securities.
Quality
Fund's current target portfolio is GMO Quality Fund Class III (ticker symbol:
GQETX). Neither Quality Fund nor its investment manager is affiliated with
the target portfolio or its investment manager.
Quality
Fund also may invest in derivatives (i.e., a security or instrument whose value
is determined by reference to the value or the change in value of one or more
securities, currencies, indices or other financial instruments) for the purpose
of hedging the value of the portfolio or to establish a position in the
future. Quality Fund also may lend its securities. Quality Fund may
hold cash, or it may manage its cash by investing in cash equivalents and money
market funds.
Principal
Investment Risks
It
is possible to lose money by investing in Quality Fund. An investment in
Quality Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Market,
Industry and Specific Holdings. The share price of Quality Fund may
fall because of weakness in the stock markets, generally, weakness with respect
to a particular industry in which Quality Fund has significant holdings, or
weaknesses associated with one or more specific companies in which Quality Fund
may have substantial investments.
Difficulty
in Comparing Fund Performance with Target Portfolio Performance.
Quality Fund performance typically does not mirror the target portfolio's
performance. Among other things, the holdings of the target portfolio may
change significantly during the period between the end of a quarter and the time
when those changes are publicly disclosed. From time to time, Quality Fund
may be purchasing specific securities at the same time that the target portfolio
is selling them. In addition, the target portfolio may have lower expenses
relative to its assets than Quality Fund.
Inability
to Conduct Due Diligence on Target Portfolio's Investment Adviser.
Quality Fund's investment manager and sub-adviser may be able to perform
only limited due diligence on the target portfolio's investment adviser to
determine, among other things, whether the investment adviser is adhering to the
target portfolio's investment guidelines and whether the risks disclosed in the
target portfolio's offering documents reflect the risks of the target
portfolio.
Potential
Impact on Target Portfolio. Quality Fund's purchases and sales of
securities for its own portfolio may adversely impact the management of a target
portfolio and thus, Quality Fund itself.
Accuracy
of Target Portfolio Information. Any failure by a target portfolio
to file accurate and timely portfolio information could affect the performance
of Quality Fund.
Large-
and Mid-Capitalization Securities. Securities issued by large-
and mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the
high growth rates of successful smaller companies, especially during strong
economic periods, and may be unable to respond as quickly to competitive
challenges.
Foreign
Investing. Quality Fund's investments in foreign securities
(primarily through ADRs) may be adversely affected by political and economic
conditions overseas, reduced liquidity, or decreases in foreign currency values
relative to the U.S. dollar.
Non-Diversification.
Quality Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a
decline in the value of the securities of one issuer could have a significant
negative effect on Quality Fund.
Sector.
Quality Fund may have significant investments in one or more specific
industry sectors, subjecting it to risks greater than general market risk.
Liquidity
Risk. Quality Fund may not be able to sell some or all of its
securities at desired prices or may be unable to sell the securities at
all.
Securities
Lending. Securities lending involves two primary risks: investment
risk and borrower default risk. Investment risk is the risk that Quality Fund
will lose money from the investment of the cash collateral received from the
borrower. Borrower default risk is the risk that Quality Fund will lose money
due to the failure of a borrower to return a borrowed security in a timely
manner.
Derivatives.
Quality Fund's investments in derivative instruments are subject to a
number of risks, such as counterparty risk, the risk of mispricing or improper
valuation, and the risk that the value of the instrument may not increase or
decrease as expected.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Quality Fund by showing changes in Quality Fund's performance over time. The
tables also compare Quality Fund's performance to a broad measure of market
performance that reflects the type of securities
in which Quality Fund invests. Past performance does not necessarily indicate
how Quality Fund will perform (before and after taxes) in the future.
Performance shown for periods prior to January 27, 2011 does not reflect the
current investment strategy or the performance of the current
sub-adviser. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares commenced operations on May 6, 1985 and March
25, 1991, respectively.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Quality Fund's Ordinary Shares.
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
(2.09)% |
(41.52)% |
20.75% |
7.10% |
12.78% |
10.84% |
24.54% |
11.01% |
2.52% |
7.84% |
Calendar
year-to-date return of the Ordinary Shares of Quality Fund as of June 30, 2017
was 16.03 percent.
Highest
Quarterly Return |
Q2
2009 |
15.53% |
Lowest
Quarterly Return |
Q4
2008 |
(23.84)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
|
1
Year |
|
5
Years |
|
10
Years |
Ordinary
Shares Before Tax |
|
|
7.84 |
% |
|
|
11.12 |
% |
|
|
3.53 |
% |
After
Tax on Distributions |
|
|
6.35 |
% |
|
|
9.48 |
% |
|
|
2.67 |
% |
After
Tax on Distributions, with Sale |
|
|
5.68 |
% |
|
|
8.74 |
% |
|
|
2.74 |
% |
Institutional
Shares Before Tax |
|
|
8.18 |
% |
|
|
11.47 |
% |
|
|
3.74 |
% |
S&P
500 Index
(reflects
no deductions for fees, expenses or taxes) |
|
|
11.96 |
% |
|
|
14.66 |
% |
|
|
6.95 |
% |
After-Tax
Returns. After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state or local taxes. The after-tax returns shown are not relevant if you hold
your shares in a retirement account or in another tax-deferred arrangement.
After-tax returns are shown only for Ordinary Shares and after-tax returns for
Institutional Shares may vary. Actual after-tax returns may differ
depending on your individual circumstances.
Management
Quality
Fund is managed by Pear Tree Advisors, Inc. Quality Fund is sub-advised by
Columbia Partners, L.L.C., Investment Management ("Columbia").
The following employee of Columbia serves as the portfolio manager of Quality
Fund:
Investment
Team |
Position
at Columbia |
Manager
of the Fund Since |
Robert
A. von Pentz, CFA |
Chairman
of the Firm's Management Committee, Senior Equity Portfolio Manager and
Research Analyst
|
2011 |
Buying
and Selling Fund Shares
You
may buy or sell shares of Quality Fund on any business day by contacting the
Pear Tree Funds, through mail or by phone, through your broker or financial
intermediary.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
*
May be waived by the fund or funds.
|
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50
shares |
Tax
Information
Quality
Fund's distributions may be taxable as ordinary income or capital gains, unless
your investment is through an IRA, 401(k) or other tax-advantaged investment
plan. These tax-advantaged plans may be taxed upon withdrawal at a later
date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Quality Fund through a broker-dealer or other financial
intermediary (such as a bank), Quality Fund and its related companies may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other intermediary and your salesperson to recommend Quality Fund over another
investment. Ask your salesperson or visit your financial intermediary's
website for more information.
Pear
Tree PanAgora Emerging Markets Fund
Investment
Objective: Long-term growth of capital.
Fee
Table and Expenses of Emerging Markets Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Emerging Markets Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
Management
Fees* |
1.00% |
1.00% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.41% |
0.40% |
Acquired
Fund Fees and Expenses1 |
0.56% |
0.56% |
Total
Annual Fund Operating Expenses |
2.22% |
1.96% |
Fee
Waiver and/or Expense Reimbursement2 |
0.57% |
0.69% |
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement2
|
1.65% |
1.27% |
1
|
Fees
and expenses incurred indirectly by Emerging Markets Fund as a result of
investments in shares of other investment funds, primarily Pear Tree
PanAgora Risk Parity Emerging Markets
Fund. |
2
|
The
Manager has 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. This fee waiver only may be terminated with the approval of
the Trustees. |
In
addition, the Manager has contractually agreed to waive its management fee with
respect to that portion of Emerging Markets Fund's net assets that are invested
in Pear Tree PanAgora Risk Parity Emerging Markets Fund. This fee waiver
shall be in effect for as long as Emerging Markets Fund invests in Pear Tree
PanAgora Risk Parity Emerging Markets Fund, and it only may be terminated with
the approval of the Trustees.
The
Manager, in its capacity as transfer agent to Pear Tree Funds, has contractually
agreed until July 31, 2018 to waive such portion of the fees that it would
otherwise receive for serving as transfer agent under its agreement with Pear
Tree Funds such that the aggregate transfer agent fee with respect to
Institutional Shares would be calculated using an annual rate of 0.04 percent of
Emerging Markets Fund's net assets attributable to Institutional Shares.
This fee waiver only may be terminated with the approval of the Trustees.
The aggregate transfer agent fee with respect to Ordinary Shares remains
unchanged.
Example
This
example is intended to help you compare the cost of investing in Emerging
Markets Fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in Emerging Markets Fund for the time periods
indicated and then redeem all of your shares at the end of those periods, that
your investment has a 5 percent return each year and that Emerging Markets
Fund's operating expenses remain the same as set forth in the table above.
The example also assumes that an expense limitation currently in place is not
renewed; therefore, the figures have been adjusted to reflect fee waivers or
expense reimbursements only in the periods for which the expense limitation
arrangement is expected to continue. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$168 |
$639 |
$1,138 |
$2,510 |
Institutional
Shares |
$129 |
$548 |
$993 |
$2,230 |
Portfolio
Turnover
Emerging
Markets Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect Emerging
Markets Fund's performance. During the most recent fiscal year, Emerging
Markets Fund's portfolio turnover rate was 47 percent of the average value of
its portfolio.
Principal
Investment Strategies
Under
normal market conditions, Emerging Markets Fund invests at least 80 percent of
its net assets (plus borrowings for investment purposes) in equity securities,
including depository receipts, warrants and rights, of emerging markets issuers,
that is, an issuer having a country classification assigned by MSCI, Inc. from a
country included in the MSCI Emerging Markets Index ("MSCI
EM"). Emerging Markets Fund generally invests in at least
eight countries and three or more broad geographic regions, such as Latin
America, Asia or Europe. Emerging Markets Fund also may invest more
than 25 percent of its assets in a particular region, and it may invest in
companies of any capitalization.
Emerging
Markets Fund allocates its assets approximately equally between two risk-parity
sub-strategies that are proprietary to Emerging Markets Fund's sub-adviser: an
alternative beta risk-parity sub-strategy and a smart beta risk-parity
sub-strategy. A risk-parity strategy is an investment strategy that generally
attempts to balance risks across specifically identified factors rather than
rely on the securities' market weights reflected in a benchmark.
By
using the two risk parity strategies, Emerging Markets Fund hopes to reduce the
risk that market momentum would cause to a particular group of securities from
becoming a disproportionately large percentage of Emerging Markets Fund's
portfolio, thus causing the risks associated with that group of securities from
becoming disproportionately significant when compared to Emerging Markets Fund's
other risks. Concentrated risk exposure typically would increase Emerging
Markets Fund's susceptibility to a significant drop in its net asset value if
the risk is realized. The alternative beta risk-parity sub-strategy attempts to
balance risks from exposures to various countries, sectors, and issuers. The
smart beta risk-parity sub-strategy attempts to balance risks by targeting
factors, such as measures of a security's quality, value, and market momentum.
Emerging Markets Fund currently invests in Pear Tree PanAgora Risk Parity
Emerging Markets Fund to achieve its alternative beta risk-parity
exposure.
In
addition to emerging markets securities, Emerging Markets Fund also may invest
in forward foreign currency exchange contracts as well as other types of
derivatives (i.e., a security or instrument whose value is determined by
reference to the value or the change in value of one or more securities,
currencies, indices or other financial instruments) for cash-equitization
purposes (e.g., for management of temporary cash positions).
Emerging Markets Fund also may lend its securities. Emerging Markets Fund may
hold cash, or it may manage its cash by investing in cash equivalents and money
market funds.
Principal
Investment Risks
It
is possible to lose money by investing in Emerging Markets Fund. An investment
in Emerging Markets Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.
Market,
Industry and Specific Holdings. The share price of Emerging Markets Fund
may fall because of weakness in the stock markets, generally, weakness with
respect to a particular industry in which Emerging Markets Fund has significant
holdings, or weaknesses associated with one or more specific companies in which
Emerging Markets Fund may have substantial investments. In addition,
because the Emerging Markets Fund primarily uses risk-parity strategies, it is
unlikely to benefit from market momentum preceding a market correction.
Foreign,
including Emerging Markets Investing. Emerging Markets Fund's
investments in foreign securities (including ADRs) may be adversely affected by
political and economic conditions overseas, reduced liquidity, or decreases in
foreign currency values relative to the U.S. dollar. The risks of foreign
investing are heightened for securities of issuers in emerging market countries.
Emerging market countries tend to have economic structures that are less diverse
and mature, political systems that are less stable, are more susceptible to
governmental interference, and less liquid and efficient trading markets than
those of developed countries. Emerging
Markets Fund from time to time also may have assets concentrated in a specific
geographic region and/or an individual country depending on the country weights
of the MSCI EM, thus exposing Emerging Markets Fund to the specific risks of
that region or country.
Liquidity
Risk. Emerging Markets Fund may not be able to sell some or all of its
securities at desired prices or may be unable to sell the securities at
all.
Active
Management Risk. The sub-adviser's judgments about the attractiveness,
value, or potential appreciation of Emerging Markets Fund's investments may
prove to be incorrect.
New
Investment Sub-Strategy. Emerging Markets Fund's "smart beta" risk-parity
sub-strategy has only been recently developed by the Emerging Markets Fund's
sub-adviser, and it has not yet been used by the Emerging Markets Fund's
sub-adviser to manage client assets. Thus, there is a risk that that
sub-strategy may not perform as intended.
Investments
in Another Mutual Fund. To the extent that Emerging Markets Fund
invests in another mutual fund, its investment performance would be directly
related to the investment performance of the other fund. It also would
bear its proportionate share of any management and other fees paid by the other
mutual fund, subjecting Emerging Markets Fund shareholders to some duplication
of fees.
Large-
and Mid-Capitalization Securities. Securities issued by large- and
mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the high growth
rates of successful smaller companies, especially during strong economic
periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies and, as a result, 2 the performance of Emerging Markets Fund
may be more volatile than a fund that invests only in large- and mid-cap
stocks.
Growth
and Value Stock Investing. Different investment styles periodically come
into and fall out of favor with investors. Growth stocks generally are more
volatile than the overall stock market. Value stocks carry the risk that the
market may not recognize their intrinsic value or that they are actually
appropriately priced at a low level.
Sector.
Emerging Markets Fund may have significant investments in one or more
specific industry sectors, subjecting it to risks greater than general market
risk.
Securities
Lending. Securities lending involves two primary risks: investment risk
and borrower default risk. Investment risk is the risk that Emerging Markets
Fund will lose money from the investment of the cash collateral received from
the borrower. Borrower default risk is the risk that Emerging Markets Fund will
lose money due to the failure of a borrower to return a borrowed security in a
timely manner.
Derivatives.
Emerging Markets Fund's investments in currency futures and other
derivative instruments are subject to a number of risks, such as counterparty
risk, the risk of mispricing or improper valuation, and the risk that the value
of the instrument may not increase or decrease as expected.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Emerging Markets Fund by
showing changes in Emerging Markets Fund's performance over time. The tables
also compare Emerging Markets Fund's
performance to a broad measure of market performance that reflects the type of
securities in which Emerging Markets Fund invests.
Past
performance does not necessarily indicate how Emerging
Markets Fund
will perform (before and after taxes) in the future. Performance
shown for periods prior to January 1, 2015 does not reflect the current
investment strategy or the performance of the current sub-adviser. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares commenced operations on September 30, 1994 and
April 2, 1996, respectively.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Emerging Markets Fund's Ordinary Shares.
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
45.44% |
(59.20)% |
70.37% |
19.76% |
(18.00)% |
21.82% |
(4.59)% |
(0.74)% |
(16.37)% |
5.88% |
Calendar
year-to-date return of the Ordinary Shares of Emerging Markets Fund as of June
30, 2017 was 13.06 percent.
Highest
Quarterly Return |
Q2
2009 |
30.76% |
Lowest
Quarterly Return |
Q4
2008 |
(32.62)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
|
1
Year |
|
5
Years |
|
10
Years |
Ordinary
Shares Before Tax |
|
5.88 |
% |
|
|
0.43 |
% |
|
|
0.14 |
% |
|
After
Tax on Distributions |
|
5.69 |
% |
|
|
0.31 |
% |
|
|
(0.04) |
% |
|
After
Tax on Distributions, with Sale |
|
3.90 |
% |
|
|
0.58 |
% |
|
|
0.37 |
% |
|
Institutional
Shares Before Tax |
|
6.22 |
% |
|
|
0.69 |
% |
|
|
0.40 |
% |
|
MSCI
EM Index
(reflects
no deductions for fees, expenses or taxes) |
|
11.60 |
% |
|
|
1.64 |
% |
|
|
2.17 |
% |
|
After-Tax
Returns. After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state or local taxes. The after-tax returns shown are not relevant if you hold
your shares in a retirement account or in another tax-deferred arrangement.
After-tax returns are shown only for Ordinary Shares and after-tax returns for
Institutional Shares may vary. Actual after-tax returns may differ
depending on your individual circumstances.
Management
Emerging
Markets Fund is managed by Pear Tree Advisors, Inc. Emerging Markets Fund
is sub-advised by PanAgora Asset Management, Inc. ("PanAgora").
The following employees of PanAgora serve as the portfolio managers of Emerging
Markets Fund:
Investment
Team |
Position
at PanAgora |
Manager
of the Fund Since |
Edward
Qian, Ph.D., CFA |
Chief
Investment Officer and Head of Research, Multi-Asset |
2016 |
Mark
Barnes, Ph.D. |
Director,
Multi-Asset |
2016 |
Nicholas
Alonso, CFA |
Director,
Multi-Asset |
2016 |
Buying
and Selling Fund Shares
You
may buy or sell shares of Emerging Markets Fund on any business day by
contacting the Pear Tree Funds, through mail or by phone, through your broker or
financial intermediary.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
*
May be waived by the fund or funds.
|
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50
shares |
Tax
Information
Emerging
Markets Fund's distributions may be taxable as ordinary income or capital gains,
unless your investment is through an IRA, 401(k) or other tax-advantaged
investment plan. These tax-advantaged plans may be taxed upon withdrawal
at a later date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Emerging Markets Fund through a broker-dealer or other
financial intermediary (such as a bank), Emerging Markets Fund and its related
companies may pay the intermediary for the sale of Fund shares and related
services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend Emerging Markets Fund over another investment. Ask your
salesperson or visit your financial intermediary's website for more
information.
Pear
Tree PanAgora Risk Parity Emerging Markets Fund
Investment
Objective: Long-term growth of capital.
Fee
Table and Expenses of Risk Parity Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Risk Parity Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
Management
Fees |
0.60% |
0.60% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.45% |
0.43% |
Acquired
Fund Fees and Expenses |
0.04% |
0.04% |
Total
Annual Fund Operating Expenses |
1.34% |
1.07% |
Fee
Waiver and/or Expense Reimbursement1 |
N/A |
0.12% |
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement1 |
N/A |
0.95% |
1 |
The
Manager, in its capacity as transfer agent to Pear Tree Funds, has
contractually agreed until July 31, 2018 to waive such portion of the fees
that it would otherwise receive for serving as transfer agent under its
agreement with Pear Tree Funds such that the aggregate transfer agent fee
with respect to Institutional Shares would be calculated using an annual
rate of 0.04 percent of Risk Parity Fund's net assets attributable to
Institutional Shares. This fee waiver only may be terminated with
the approval of the Trustees. The aggregate transfer agent fee with
respect to Ordinary Shares remains
unchanged. |
Example
This
example is intended to help you compare the cost of investing in Risk Parity
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in Risk Parity Fund for the time periods indicated and then
redeem all of your shares at the end of those periods, that your investment has
a 5 percent return each year and that Risk Parity Fund's operating expenses
remain the same as set forth in the table above. The example also assumes
that an expense limitation currently in place is not renewed; therefore, the
figures have been adjusted to reflect fee waivers or expense reimbursements only
in the periods for which the expense limitation arrangement is expected to
continue.
Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$136 |
$425 |
$738 |
$1,613 |
Institutional
Shares |
$97 |
$328 |
$578 |
$1,295 |
Portfolio
Turnover
Risk
Parity Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect Risk
Parity Fund's performance. Risk Parity Fund's portfolio turnover rate was
42 percent of the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, Risk Parity Fund invests at least 80 percent of its
net assets (plus borrowings for investment purposes) in equity securities,
including depository receipts, warrants and rights, of emerging markets issuers,
that is, an issuer having a country classification assigned by MSCI from a
country included in the MSCI Emerging Markets Index ("MSCI
EM"). Risk Parity Fund generally invests in at least eight
countries and three or more broad geographic regions, such as Latin America,
Asia or Europe. Risk Parity Fund also may invest greater than 25 percent of its
assets in a particular region, but not in a single country in that region, and
in companies of any capitalization.
To
manage Risk Parity Fund's assets, its sub-adviser employs its proprietary,
multi-factor risk parity strategy. A risk-parity strategy is an investment
strategy that generally attempts to balance risks across specifically identified
factors rather than rely on the securities' market weights reflected in a
benchmark. The risk parity strategy employed to manage Risk Parity Fund's
assets follows a disciplined and systematic investment approach based on the
philosophy of risk diversification. The strategy targets factors
with proven long-term payoffs, such as value, quality, and momentum, using a
proprietary portfolio construction methodology that seeks to avoid all
unintended risk concentrations. The sub-adviser believes that the benefits
of this strategy to Risk Parity Fund come from two distinct sources: efficient
capture of the factor premia, and portfolio downside protection. Efficient
capture of the factor premia is a result of persistent intended factor exposure
and avoidance of unintended factor exposure. Downside protection is the
result of diversification across important risk dimensions.
In
addition to emerging markets securities, Risk Parity Fund also may invest in
forward foreign currency exchange contracts as well as other types of
derivatives (that is, a security or instrument whose value is determined by
reference to the value or the change in value of one or more securities,
currencies, indices or other financial instruments) in order to attempt to
mitigate the adverse effects of foreign currency fluctuations. Risk Parity
Fund also may lend its securities. Risk Parity Fund may hold cash, or
it may manage its cash by investing in cash equivalents and money market
funds.
Principal
Investment Risks
It
is possible to lose money by investing in Risk Parity Fund. An investment in
Risk Parity Fund is not a deposit of a bank and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Market,
Industry and Specific Holdings. The share price of Risk Parity
Fund may fall because of weakness in the stock markets, generally, weakness with
respect to a particular industry in which Risk Parity Fund has significant
holdings, or weaknesses associated with one or more specific companies in which
Risk Parity Fund may have substantial investments. Risk Parity Fund may
underperform against its benchmark and broad market indices if certain types of
securities it holds (e.g., growth stocks, value stocks, international stocks)
are then-out of favor with investors. In addition, Risk Parity Fund's
strategy, while attempting to limit risks from sudden and substantial market
corrections following market "bubbles," is unlikely to benefit from market
momentum preceding a correction.
Foreign,
including Emerging Markets Investing. Risk Parity Fund's
investments in foreign securities (including ADRs) may be adversely affected by
political and economic conditions overseas, reduced liquidity, or decreases in
foreign currency values relative to the U.S. dollar. The risks of
foreign investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that are
less diverse and mature, political systems that are less stable, are more
susceptible to governmental interference, and less liquid and efficient trading
markets than those of developed countries.
Liquidity
Risk. Risk Parity Fund may not be able to sell some or all of its
securities at desired prices or may be unable to sell the securities at
all.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Risk Parity Fund's
investments may prove to be incorrect.
Large-
and Mid-Capitalization Securities. Securities issued by large-
and mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the high growth
rates of successful smaller companies, especially during strong economic
periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies and, as a result, the performance of Risk Parity Fund may be
more volatile than a fund that invests only in large- and mid-cap stocks.
Non-Diversification.
Risk Parity Fund is "non-diversified," which means that it may from time
to time invest a higher percentage of its assets in a smaller number of issuers.
As a result, a decline in the value of the securities of one issuer could have a
significant negative effect on Risk Parity Fund. It also may be
considered more risky for Risk Parity Fund to hold large positions in a single
issuer because of the possibility of exercising control over the issuer.
Sector.
Risk Parity Fund may have significant investments in one or more specific
industry sectors, subjecting it to risks greater than general market risk.
Securities
Lending. Securities lending involves two primary risks:
investment risk and borrower default risk. Investment risk is the risk that Risk
Parity Fund will lose money from the investment of the cash collateral received
from the borrower. Borrower default risk is the risk that Risk Parity Fund will
lose money due to the failure of a borrower to return a borrowed security in a
timely manner.
Derivatives.
Risk Parity Fund's investments in forward foreign currency exchange
contracts and other derivative instruments are subject to a number of risks,
such as counterparty risk, the risk of mispricing or improper valuation, and the
risk that the value of the instrument may not increase or decrease as
expected.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Risk Parity Fund by showing changes in Risk Parity Fund's performance over
time. The tables also compare Risk Parity Fund's performance to a broad measure
of market performance that reflects the type of securities in which Risk Parity
Fund invests. Past
performance does not necessarily indicate how Risk Parity Fund will perform
(before and after taxes) in the future. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares each commenced operations on June 27,
2013.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Risk Parity Fund's Ordinary Shares.
2014 |
2015 |
2016 |
(3.48)% |
(18.00)% |
6.26% |
Calendar
year-to-date return of the Ordinary Shares of Risk Parity Fund as of June 30,
2017 was 11.75 percent.
Highest
Quarterly Return |
Q1
2016 |
9.71% |
Lowest
Quarterly Return |
Q3
2015 |
(15.41)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
|
1
Year |
Life
of the Fund
Since
June 27, 2013 |
|
Ordinary
Shares Before Tax |
|
|
6.26 |
% |
(4.04) |
% |
After
Tax on Distributions |
|
|
6.19 |
% |
(4.13) |
% |
After
Tax on Distributions, with Sale |
|
|
3.95 |
% |
(2.89) |
% |
Institutional
Shares Before Tax |
|
|
6.51 |
% |
(3.73) |
% |
MSCI
EM Index
(reflects
no deductions for fees, expenses or taxes) |
|
|
11.60 |
% |
0.92 |
% |
After-Tax
Returns. After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state or local taxes. The after-tax returns shown are not relevant if you hold
your shares in a retirement account or in another
tax-deferred
arrangement. After-tax returns are shown only for Ordinary Shares and after-tax
returns for Institutional Shares may vary. Actual after-tax returns may
differ depending on your individual circumstances.
Management
Risk
Parity Fund is managed by Pear Tree Advisors, Inc. Emerging Markets Fund
is sub-advised by PanAgora Asset Management, Inc. ("PanAgora").
The following employees of PanAgora serve as the portfolio managers of Emerging
Markets Fund:
Investment
Team |
Position
at PanAgora |
Manager
of the Fund Since |
Edward
Qian, Ph.D., CFA |
Chief
Investment Officer and Head of Research, Multi-Asset |
2013 |
Mark
Barnes, Ph.D. |
Director,
Multi-Asset |
2013 |
Nicholas
Alonso, CFA |
Director,
Multi-Asset |
2013 |
Buying
and Selling Fund Shares
Risk
Parity Fund is not currently offered to investors located in all states. Please
contact the Pear Tree Funds at 1-800-326-2151 for up-to-date availability
information.
You
may buy or sell shares of Risk Parity Fund on any business day by contacting the
Pear Tree Funds, through mail or by phone, through your broker or financial
intermediary.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
*
May be waived by the fund or funds. |
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50
shares |
Tax
Information
Risk
Parity Fund's distributions may be taxable as ordinary income or capital gains,
unless your investment is through an IRA, 401(k) or other tax-advantaged
investment plan. These tax-advantaged plans may be taxed upon withdrawal
at a later date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Risk Parity Fund through a broker-dealer or other
financial intermediary (such as a bank), Risk Parity Fund and its related
companies may pay the intermediary for the sale of Fund shares and related
services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend Risk Parity Fund over another investment. Ask your salesperson
or visit your financial intermediary's website for more information.
Pear
Tree Polaris Foreign Value Fund
Investment
Objective: Long-term growth of capital and income.
Fee
Table and Expenses of Foreign Value Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Foreign Value Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
R6
Shares |
Management
Fees |
1.00% |
1.00% |
1.00% |
Distribution
(12b-1) Fees |
0.25% |
None |
None |
Other
Expenses |
0.28% |
0.27% |
0.14% |
Total
Annual Fund Operating Expenses |
1.53% |
1.27% |
1.14% |
Fee
Waiver and/or Expense Reimbursement1,2 |
0.10% |
0.22% |
0.10% |
Total
Annual Fund Operating Expenses after Fee Waiver and/or Expense
Reimbursement1,2 |
1.43% |
1.05% |
1.04% |
1
|
The
Manager has 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 Foreign Value
Fund such that the aggregate management fee that the Manager would receive
during the waiver period for serving as the investment manager of Foreign
Value Fund would be calculated using an annual rate of 0.90 percent of
Foreign Value Fund's net assets. This fee waiver only may be
terminated with the approval of the
Trustees. |
2 |
The
Manager, in its capacity as transfer agent to Pear Tree Funds, has
contractually agreed until July 31, 2018 to waive such portion of the fees
that it would otherwise receive for serving as transfer agent under its
agreement with Pear Tree Funds such that the aggregate transfer agent fee
with respect to Institutional Shares would be calculated using an annual
rate of 0.04 percent of Foreign Value Fund's net assets attributable to
Institutional Shares. This fee waiver only may be terminated with
the approval of the Trustees. The aggregate transfer agent fee with
respect to Ordinary Shares and R6 Shares remains
unchanged. |
Example
This
example is intended to help you compare the cost of investing in Foreign Value
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in Foreign Value Fund for the time periods indicated and then
redeem all of your shares at the end of those periods, that your investment has
a 5 percent return each year and that Foreign Value Fund's operating expenses
remain the same as set forth in the table above. The example also assumes
that an expense limitation currently in place is not renewed; therefore, the
figures have been adjusted to reflect fee waivers or expense reimbursements only
in the periods for which the expense limitation arrangement is expected to
continue. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$146 |
$474 |
$825 |
$1,815 |
Institutional
Shares |
$107 |
$381 |
$676 |
$1,515 |
R6
Shares |
$106 |
$352 |
$618 |
$1,377 |
Portfolio
Turnover
Foreign
Value Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes when
Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect Foreign
Value Fund's performance. During the most recent fiscal year, Foreign
Value Fund's portfolio turnover rate was 15 percent of the average value of its
portfolio.
Principal
Investment Strategies
Under
normal market conditions, Foreign Value Fund invests at least 80 percent of its
net assets (plus borrowings for investment purposes) in equity securities,
warrants, and rights derivative of or convertible into common stocks, in each
case issued by foreign markets issuers. Foreign Value Fund defines a foreign
markets issuer to be an issuer that derives at least 50 percent of its gross
revenues or profits from goods or services produced in non-U.S. markets or from
sales made in non-U.S. markets. Foreign Value Fund generally will be invested in
issuers in fifteen or more foreign countries and fifteen or more industry
sectors (as well as a collective investment fund that invests at least 80
percent of its net assets in similar securities issued by other foreign markets
issuers). However, Foreign Value Fund may be invested in securities from any
country (other than the U.S.), any industry sector, or of any capitalization,
provided that the securities meet the sub-adviser's investment criteria.
Using
primarily a bottom-up fundamental research investment process, Foreign Value
Fund looks worldwide (other than the U.S.) for undervalued securities.
Foreign Value Fund's investment strategy has two premises: country and industry
factors are important determinants of security prices, and global market
fluctuations produce mispriced stocks. Foreign Value Fund's sub-adviser
believes that although global markets have proven generally efficient over time,
investor behavior creates volatility. The sub-adviser also believes that
that volatility should lead to inefficiently priced securities, that is,
securities that may not adequately reflect a company's long-term fundamental
valuation and/or future cash flows.
Foreign
Value Fund's sub-adviser may utilize options. The extent of the sub-adviser's
use of options may vary over time based on the sub-adviser's assessment of
market conditions and other factors. Foreign Value Fund may also buy and
sell forward foreign currency exchange contracts in connection with its
investments.
Foreign
Value Fund may invest in other derivatives (i.e., a security or instrument whose
value is determined by reference to the value or the change in value of one or
more securities, currencies, indices or other financial instruments) for the
purpose of hedging the value of the portfolio or to establish a position in the
future. Foreign Value Fund may lend its securities, and also may hold
cash, or manage its cash by investing in cash equivalents and money market
funds.
Principal
Investment Risks
It
is possible to lose money by investing in Foreign Value Fund. An
investment in Foreign Value Fund is not a deposit of a bank and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Market,
Industry and Specific Holdings. The share price of Foreign Value
Fund may fall because of weakness in the stock markets, generally, weakness with
respect to a particular industry in which Foreign Value Fund has significant
holdings, or weaknesses associated with one or more specific companies in which
Foreign Value Fund may have substantial investments.
Foreign,
including Emerging Markets Investing. Foreign Value Fund's
investments in foreign securities (including ADRs) may be adversely affected by
political and economic conditions overseas, reduced liquidity, or decreases in
foreign currency values relative to the U.S. dollar. The risks of
foreign investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that are
less diverse and mature, political systems that are less stable, are more
susceptible to governmental interference, and less liquid and efficient trading
markets than those of developed countries.
Value
Stock Investing. A value investment style periodically comes into
and falls out of favor with investors. Value stocks carry the risk that
the market may not recognize their intrinsic value or that they are actually
appropriately priced at a low level.
Liquidity
Risk. Foreign Value Fund may not be able to sell some or all of its
securities at desired prices or may be unable to sell the securities at
all.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Foreign Value Fund's
investments may prove to be incorrect.
Large-
and Mid-Capitalization Securities. Securities issued by large- and
mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the high
growth rates of successful smaller companies, especially during strong economic
periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies and, as a result, the performance of Foreign Value Fund may
be more volatile than a fund that invests only in large- and mid-cap
stocks.
Investments
in Another Collective Investment Fund. To the extent that Foreign
Value Fund invests in another collective investment fund, such as a mutual fund
or exchange-traded fund (ETF), its investment performance would be directly
related to the investment performance of the other fund. It also would
bear its proportionate share of any management and other fees paid by the other
fund, subjecting Foreign Value Fund shareholders to some duplication of
fees.
Non-Diversification.
Foreign Value Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a
decline in the value of the securities of one issuer could have a significant
negative effect on Foreign Value Fund.
Sector.
Foreign Value Fund may have significant investments in one or more
specific industry sectors, subjecting it to risks greater than general market
risk.
Securities
Lending. Securities lending involves two primary risks: investment
risk and borrower default risk. Investment risk is the risk that Foreign Value
Fund will lose money from the investment of the cash collateral received from
the borrower. Borrower default risk is the risk that Foreign Value Fund will
lose money due to the failure of a borrower to return a borrowed security in a
timely manner.
Derivatives.
Foreign Value Fund's investments in currency futures, options and other
derivative instruments are subject to a number of risks, such as counterparty
risk, the risk of mispricing or improper valuation, and the risk that the value
of the instrument may not increase or decrease as expected.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Foreign Value Fund by
showing changes in Foreign Value Fund's performance over time. The tables also
compare Foreign Value Fund's performance to a broad measure of market
performance that reflects the type of securities in which Foreign
Value Fund
invests. Past
performance does not necessarily indicate how Foreign
Value
Fund will perform (before and after taxes) in the future. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares commenced operations on May 15, 1998 and
December 1, 1998, respectively. R6 Shares commenced operations on February
6, 2017. Performance information for R6 Shares will be available after the
share class has been offered for a full calendar year. Returns
for R6 Shares
would have been substantially similar to the returns of Institutional Shares
because each share class is invested in the same portfolio of securities, and
returns would differ only to the extent that expenses of the classes are
different.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Foreign Value Fund's Ordinary Shares.
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
(1.85)% |
(52.40)% |
58.04% |
20.01% |
(15.52)% |
26.92% |
27.57% |
(5.23)% |
(0.67)% |
4.54% |
Calendar
year-to-date return of the Ordinary Shares of Foreign Value Fund as of June 30,
2017 was 13.98 percent.
Highest
Quarterly Return |
Q2
2009 |
36.87% |
Lowest
Quarterly Return |
Q4
2008 |
(26.53)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
1
Year |
|
5
Years |
|
10
Years |
|
|
Ordinary
Shares Before Tax |
4.54 |
% |
|
9.76 |
% |
|
1.78 |
% |
|
After
Tax on Distributions |
4.52 |
% |
|
9.68 |
% |
|
1.30 |
% |
|
After
Tax on Distributions, with Sale |
3.00 |
% |
|
7.92 |
% |
|
1.44 |
% |
|
Institutional
Shares Before Tax |
4.78 |
% |
|
10.05 |
% |
|
2.01 |
% |
|
R6
Shares Before Tax |
N/A |
|
|
N/A |
|
|
N/A |
|
|
MSCI
EAFE Index
(reflects
no deductions for fees, expenses or taxes) |
1.51 |
% |
|
7.02 |
% |
|
1.22 |
% |
After-Tax
Returns. After-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state or local taxes. The after-tax returns shown are not relevant if you hold
your shares in a retirement account or in another tax-deferred arrangement.
After-tax returns are shown only for Ordinary Shares and after-tax returns for
Institutional Shares and R6 Shares may vary. Actual after-tax returns may
differ depending on your individual circumstances.
Management
Foreign
Value Fund is managed by Pear Tree Advisors, Inc. Foreign Value Fund is
sub-advised by Polaris Capital Management, LLC ("Polaris").
The following employees of Polaris serve as the portfolio managers of Foreign
Value Fund:
Investment
Team |
Position
at Polaris |
Manager
of the Fund Since |
Bernard
R. Horn, Jr. |
President
and Chief Investment Officer |
1998 |
Sumanta
Biswas, CFA |
Vice
President and Assistant Portfolio Manager |
2004 |
Bin
Xiao, CFA |
Assistant
Portfolio Manager |
2012 |
Buying
and Selling Fund Shares
You
may buy or sell shares of Foreign Value Fund on any business day by contacting
the Pear Tree Funds, through mail or by phone, through your broker or financial
intermediary, and, in the case of R6 Shares, by contacting your retirement plan
administrator or recordkeeper.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
R6
Shares:
$100,000**
*
May be waived by the fund or funds.
**
May be waived for: qualified and non-qualified plan investors that do not
require the fund or its affiliates to pay any type of administrative
payment, or Trustees, employees of Manager or its affiliates, or members
of the fund's portfolio management team. |
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50 shares
R6
Shares:
None |
Tax
Information
Foreign
Value Fund's distributions may be taxable as ordinary income or capital gains,
unless your investment is through an IRA, 401(k) or other tax-advantaged
investment plan. These tax-advantaged plans may be taxed upon withdrawal
at a later date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Foreign Value Fund through a broker-dealer or other
financial intermediary (such as a bank), Foreign Value Fund and its related
companies may pay the intermediary for the sale of Fund shares and related
services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend Foreign Value Fund over another investment. These payments are
not applicable to R6 Shares. Ask your salesperson or visit your financial
intermediary's website for more information.
Pear
Tree Polaris Foreign Value Small Cap Fund
Investment
Objective: Long-term growth of capital and income.
Fee
Table and Expenses of Foreign Value Small Cap Fund
This
table describes the fees and expenses that you may pay if you buy and hold
shares of Foreign Value Small Cap Fund.
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
Ordinary
Shares |
Institutional
Shares |
R6
Shares |
Management
Fees |
1.00% |
1.00% |
1.00% |
Distribution
(12b-1) Fees |
0.25% |
None |
None |
Other
Expenses |
0.30% |
0.30% |
0.14% |
Total
Annual Fund Operating Expenses |
1.55% |
1.30
% |
1.14% |
Fee
Waiver and/or Expense Reimbursement1,2 |
0.10% |
0.22% |
0.10% |
Total
Annual Fund Operating Expense after Fee Waiver and/or Expense
Reimbursement1,2 |
1.45% |
1.08% |
1.04% |
1 |
The
Manager has 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 Foreign Value
Small Cap Fund such that the aggregate management fee that the Manager
would receive during the waiver period for serving as the investment
manager of Foreign Value Small Cap Fund would be calculated using an
annual rate of 0.90 percent of Foreign Value Small Cap Fund's net
assets. This fee waiver only may be terminated with the approval of
the Trustees. |
2 |
The
Manager, in its capacity as transfer agent to Pear Tree Funds, has
contractually agreed until July 31, 2018 to waive such portion of the fees
that it would otherwise receive for serving as transfer agent under its
agreement with Pear Tree Funds such that the aggregate transfer agent fee
with respect to Institutional Shares would be calculated using an annual
rate of 0.04 percent of Foreign Value Small Cap Fund's net assets
attributable to Institutional Shares. This fee waiver only may be
terminated with the approval of the Trustees. The aggregate transfer
agent fee with respect to Ordinary Shares and R6 Shares remains
unchanged. |
Example
This
example is intended to help you compare the cost of investing in Foreign Value
Small Cap Fund with the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in Foreign Value Small Cap Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods, that your investment has a 5 percent return each year and that Foreign
Value Small Cap Fund's operating expenses remain the same as set forth in the
table above. The example also assumes that an expense limitation currently
in place is not renewed; therefore, the figures have been adjusted to reflect
fee waivers or expense reimbursements only in the periods for which the expense
limitation arrangement is expected to continue.
Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
1
year |
3
years |
5
years |
10
years |
Ordinary
Shares |
$148 |
$480 |
$835 |
$1,835 |
Institutional
Shares |
$110 |
$390 |
$692 |
$1,548 |
R6
Shares |
$106 |
$352 |
$618 |
$1,377 |
Portfolio
Turnover
Foreign
Value Small Cap Fund pays transaction costs, such as commissions, when it buys
and sells securities (or "turns over" its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which
are not reflected in annual fund operating expenses or in the example, affect
Foreign Value Small Cap Fund's performance. During the most recent fiscal
year, Foreign Value Small Cap Fund's portfolio turnover rate was 46 percent of
the average value of its portfolio.
Principal
Investment Strategies
Under
normal market conditions, Foreign Value Small Cap Fund invests at least 80
percent of its net assets (plus borrowings for investment purposes) in equity
securities, warrants, and rights derivative of or convertible into common
stocks, in each case issued by small-cap foreign markets issuers. Foreign
Value Small Cap Fund defines a foreign markets issuer to be an issuer that
derives at least 50 percent of its gross revenues or profits from goods or
services produced in non-U.S. markets or from sales made in non-U.S. markets,
including emerging markets, as well as a collective investment fund that invests
at least 80 percent of its net assets in similar securities issued by other
foreign markets issuers. Foreign Value Small Cap Fund generally will be
invested in issuers in fifteen or more foreign countries. Foreign Value
Small Cap Fund considers a small-cap company to be a company having a market
capitalization at time of purchase between $50 million to $3 billion.
Using
primarily a bottom-up fundamental research investment process, Foreign Value
Small Cap Fund looks worldwide (other than the U.S.) for undervalued small-cap
securities. Foreign Value Small Cap Fund's investment strategy has two
premises: country and industry factors are important determinants of security
prices, and global market fluctuations produce mispriced stocks. Foreign
Value Small Cap Fund's sub-adviser believes that although global markets have
proven generally efficient over time, investor behavior creates
volatility. The sub-adviser also believes that that volatility should lead
to inefficiently priced securities, that is, securities that may not adequately
reflect a company's long-term fundamental valuation and/or future cash
flows.
Foreign
Value Small Cap Fund's sub-adviser may utilize options. The extent of the
sub-adviser's use of options may vary over time based on the sub-adviser's
assessment of market conditions and other factors. Foreign Value Small Cap
Fund may also buy and sell forward foreign currency exchange contracts in
connection with its investments.
Foreign
Value Small Cap Fund may invest in other derivatives (i.e., a security or
instrument whose value is determined by reference to the value or the change in
value of one or more securities, currencies, indices or other financial
instruments) for the purpose of hedging the value of the portfolio or to
establish a position in the future. Foreign Value Small Cap Fund also may
lend its securities. Foreign Value Small Cap Fund may hold cash, or it may
manage its cash by investing in cash equivalents and money market funds.
Principal
Investment Risks
It
is possible to lose money by investing in Foreign Value Small Cap Fund. An
investment in Foreign Value Small Cap Fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Market,
Industry and Specific Holdings. The share price of Foreign Value Small
Cap Fund may fall because of weakness in the stock markets, generally, weakness
with respect to a particular industry in which Foreign Value Small Cap Fund has
significant holdings, or weaknesses associated with one or more specific
companies in which Foreign Value Small Cap Fund may have substantial
investments.
Foreign,
including Emerging Markets Investing. Foreign Value Small Cap
Fund's investments in foreign securities (including ADRs) may be adversely
affected by political and economic conditions overseas, reduced liquidity, or
decreases in foreign currency values relative to the U.S. dollar.
The risks of foreign investing are heightened for securities of issuers in
emerging market countries. Emerging market countries tend to have economic
structures that are less diverse and mature, political systems that are less
stable, are more susceptible to governmental interference, and less liquid and
efficient trading markets than those of developed countries.
Value
Stock Investing. A value investment style periodically comes into
and falls out of favor with investors. Value stocks carry the risk that
the market may not recognize their intrinsic value or that they are actually
appropriately priced at a low level.
Small-Capitalization
Securities. Investments in small-capitalization companies typically
present greater risks than investments in larger companies and, as a result, the
performance of Foreign Value Small Cap Fund may be more volatile than a fund
that invests only in large- and mid-cap stocks.
Liquidity
Risk. Foreign Value Small Cap Fund may not be able to sell some or
all of its securities at desired prices or may be unable to sell the securities
at all.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Foreign Value Small Cap
Fund's investments may prove to be incorrect.
Investments
in Another Collective Investment Fund. To the extent that Foreign
Value Small Cap Fund invests in another collective investment fund, such as a
mutual fund or exchange-traded fund (ETF), its investment performance would be
directly related to the investment performance of the other fund. It also
would bear its proportionate share of any management and other fees paid by the
other fund, subjecting Foreign Value Small Cap Fund shareholders to some
duplication of fees.
Non-Diversification.
Foreign Value Small Cap Fund is "non-diversified", which means that it may
invest a higher percentage of its assets in a smaller number of issuers.
As a result, a decline in the value of the securities of one issuer could have a
significant negative effect on Foreign Value Small Cap Fund.
Sector.
Foreign Value Small Cap Fund may have significant investments in one or
more specific industry sectors, subjecting it to risks greater than general
market risk.
Securities
Lending. Securities lending involves two primary risks: investment
risk and borrower default risk. Investment risk is the risk that Foreign Value
Small Cap Fund will lose money from the investment of the cash collateral
received from the borrower. Borrower default risk is the risk that Foreign Value
Small Cap Fund will lose money due to the failure of a borrower to return a
borrowed security in a timely manner.
Derivatives.
Foreign Value Small Cap Fund's investments in currency futures, options
and other derivative instruments are subject to a number of risks, such as
counterparty risk, the risk of mispricing or improper valuation, and the risk
that the value of the instrument may not increase or decrease as expected.
Please
refer to "Fund Objectives, Strategies and Risks" in the Prospectus for further
details.
Past
Performance
The
following bar chart and table provide some indication of the risks of investing
in Foreign Value Small Cap Fund by
showing changes in Foreign Value Small Cap Fund's performance over time. The
tables also compare Foreign Value Small Cap Fund's performance to a broad
measure of market performance that reflects the type of securities in which
Foreign Value Small Cap
Fund invests. Past
performance does not necessarily indicate how Foreign
Value
Small Cap Fund will perform (before and after taxes) in the future. Updated
performance information is available at www.peartreefunds.com.
A
Note on Performance
Ordinary
Shares and Institutional Shares each commenced operations on May 1, 2008.
R6 Shares commenced operations on February 6, 2017. Performance
information for R6 Shares will be available after the share class has been
offered for a full calendar year. Returns for R6 Shares
would have been substantially similar to the returns of Institutional Shares
because each share class is invested in the same portfolio of securities, and
returns would differ only to the extent that expenses of the classes are
different.
Calendar
Year Total Returns - Ordinary Shares The bar chart below provides
performance information for Foreign Value Small Cap
Fund's Ordinary Shares.
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
83.13% |
20.70% |
(20.02)% |
27.11% |
24.95% |
6.54% |
(1.49)% |
2.46% |
Calendar
year-to-date return of the Ordinary Shares of Foreign Value Small Cap Fund as of
June 30, 2017 was 18.34 percent.
Best
Quarter: |
Q2
2009 |
53.73% |
Lowest
Quarterly Return |
Q4
2008 |
(28.49)% |
Average
Annual Total Returns for the periods ended December 31, 2016
|
|
|
1
Year |
|
|
5
Year |
|
|
|
Life
of the Fund
Since
May 1, 2008 |
Ordinary
Shares Before Tax |
|
|
2.46 |
% |
|
11.30 |
% |
|
|
5.62 |
% |
|
After
Tax on Distributions |
|
|
2.26 |
% |
|
11.08 |
% |
|
|
5.21 |
% |
|
After
Tax on Distributions, with Sale |
|
|
1.97 |
% |
|
9.18 |
% |
|
|
4.61 |
% |
|
Institutional
Shares Before Tax |
|
|
2.75 |
% |
|
11.59 |
% |
|
|
5.87 |
% |
|
R6
Shares Before Tax |
|
|
N/A |
|
|
N/A |
|
|
|
N/A |
|
|
MSCI
ACWI ex USA Small Cap (reflects no deduction for fees, expenses or
taxes) |
|
|
4.29 |
% |
|
8.12 |
% |
|
|
3.20 |
% |
|
After-Tax
Returns. After-tax returns are calculated using the historical
highest individual federal marginal income tax rates and do not reflect the
impact of state or local taxes. The after-tax returns shown are not
relevant if you hold your shares in a retirement account or in another
tax-deferred arrangement. After-tax returns are shown only for Ordinary
Shares and after-tax returns for Institutional Shares and R6 Shares may
vary. Actual after-tax returns may differ depending on your individual
circumstances.
Management
Foreign
Value Small Cap Fund is managed by Pear Tree Advisors, Inc. Foreign Value
Small Cap Fund is sub-advised by Polaris Capital Management, LLC ("Polaris").
The following employees of Polaris serve as the portfolio managers of Foreign
Value Small Cap Fund:
Investment
Team |
Position
at Polaris |
Manager
of the Fund Since |
Bernard
R. Horn, Jr. |
President
and Chief Investment Officer |
2008 |
Sumanta
Biswas, CFA |
Vice
President and Assistant Portfolio Manager |
2008 |
Bin
Xiao, CFA |
Assistant
Portfolio Manager |
2012 |
Buying
and Selling Fund Shares
You
may buy or sell shares of Foreign Value Small Cap Fund on any business day by
contacting the Pear Tree Funds, through mail or by phone, through your broker or
financial intermediary, and, in the case of R6 Shares, by contacting your
retirement plan administrator or recordkeeper.
Purchase
and redemption orders with respect to Fund shares are processed at the net asset
value next calculated after an order is received.
Initial
Investment Minimum
Ordinary
Shares:
$2,500*
Individual
retirement $1,000*
accounts,
certain
accounts
for minors, and
automatic
investment
accounts
Institutional
Shares: $1,000,000*
Certain
wrap programs, $0
registered
advisers,
certain
government plans
Pear
Tree Fund affiliates and
employees
R6
Shares:
$100,000**
*
May be waived by the fund or funds.
**
May be waived for: qualified and non-qualified plan investors that do not
require the fund or its affiliates to pay any type of administrative
payment, or Trustees, employees of Manager or its affiliates, or members
of the fund's portfolio management team. |
Contact
Information
Mail:
Pear Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
MA 01773
Telephone:
1-800-326-2151
Website:
www.peartreefunds.com |
Ongoing
Investment Minimum
Ordinary
Shares: 50
shares
Institutional
Shares: 50 shares
R6
Shares:
None |
Tax
Information
Foreign
Value Small Cap Fund's distributions may be taxable as ordinary income or
capital gains, unless your investment is through an IRA, 401(k) or other
tax-advantaged investment plan. These tax-advantaged plans may be taxed
upon withdrawal at a later date based upon your individual circumstances.
Payments
to Broker-Dealers and other Financial Intermediaries
If
you purchase shares of Foreign Value Small Cap Fund through a broker-dealer or
other financial intermediary (such as a bank), Foreign Value Small Cap Fund and
its related companies may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend Foreign Value Small Cap Fund over another investment. These
payments are not applicable to R6 Shares. Ask your salesperson or visit
your financial intermediary's website for more information.
Pear
Tree Polaris Small Cap Fund
Investment
Objective
Maximum
long-term capital appreciation. There is no guarantee that Small Cap Fund
will achieve its objective. Small Cap Fund's investment objective may be
changed by its Trustees and without shareholder approval. Small Cap Fund
will notify shareholders at least 60 days prior to any such change.
Principal
Strategies
Under
normal market conditions, Small Cap Fund invests at least 80 percent of its net
assets (plus borrowings for investment purposes) in equity securities of
small-cap companies. Small Cap Fund considers a small-cap company to be a
company having at time of purchase a market capitalization of approximately $100
million to $5 billion, as well as a collective investment fund that
invests at least 80 percent of its net assets in similar securities issued by
other small cap issuers. Small
Cap Fund will not automatically sell or cease to purchase stock of a company it
already owns just because the company's market capitalization grows or falls
outside this range, however, any additional securities purchased would not be
considered equity securities of small-cap companies. Small Cap Fund may, on
occasion, purchase shares of companies with a market capitalization above or
below the ranges if the sub-adviser to Small Cap Fund believes that such
investment is in the best interests of Small Cap Fund and consistent with Small
Cap Fund's investment objective.
While
most assets are typically invested in U.S. common stocks, Small Cap Fund may
invest in American Depositary Receipts (ADRs) and other foreign stocks traded on
U.S. exchanges in keeping with Small Cap Fund's objectives. Fund
assets also may be invested in growth stocks and value stocks. Small Cap Fund's
sub-adviser generally considers growth stocks to be equity securities issued by
companies that have sustainable competitive advantages and products or services
that potentially could generate significantly greater-than-average revenue and
earnings growth. The sub-adviser generally considers value stocks to be equity
securities issued by companies that have underappreciated but stable earnings
and cash flow and where there are visible and imminent inflection points and
catalysts that will result in increased earnings and cash flow, driving stock
appreciation.
Small Cap
Fund's sub-adviser uses proprietary investment technology combined with
traditional, value-based, fundamental research
to identify potential investments. The sub-adviser uses traditional
valuation measures, including price/book ratios and price/sustainable free cash
flow ratios to screen its database of more than 40,000 global
companies. The sub-adviser uses these measures to identify companies
with the greatest potential for undervalued streams of sustainable free cash
flow. The sub-adviser conducts fundamental research, interviewing and
visiting with company management and creating detailed financial
models.
The
sub-adviser also maintains a "watch-list" of companies, which may be used if the
valuation of a company held in Small Cap Fund's portfolio falls below
established limits.
Small
Cap Fund's sub-adviser may utilize options on existing security positions or
indexes in an attempt to improve the risk/return profile of Small Cap Fund's
returns. Selling/writing call options is designed to provide income to Small Cap
Fund (i.e., the writer of the call option is paid a premium, but is obligated to
sell a security at a target price). Purchasing put options (i.e., the purchaser
has the right to sell a security at a target price) is designed to protect Small
Cap Fund from dramatic downward movements in a security, effectively locking in
a minimum sale price for that security. The extent of the sub-adviser's use of
options may vary over time based on the sub-adviser's assessment of market
conditions and other factors.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by investing in
Small Cap Fund. In addition to the risks common to all Pear Tree Funds (see
"—Investment Risks Common to All Pear Tree Funds"), below is a description of
the principal risks of investing in Small Cap Fund.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Small Cap Fund's investments
may prove to be incorrect. If the securities selected and strategies employed by
Small Cap Fund fail to produce the intended results, Small Cap Fund could
underperform other funds with similar objectives and investment
strategies.
Small-Capitalization
Securities. Investments in small-capitalization companies typically
present greater risks than investments in larger companies because small
companies often have limited product lines and few managerial or financial
resources. As a result, the performance of Small Cap Fund may be more volatile
than a fund that invests in large-cap stocks.
Growth
and Value Stock Investing. Different investment styles periodically come
into and fall out of favor with investors, depending on market conditions and
investor sentiment. As Small Cap Fund holds stocks with both growth and value
characteristics, from time to time it could underperform stock funds that take a
strictly growth or value approach to investing. Growth stocks generally are more
volatile than the overall stock market and can have sharp price declines as a
result of earnings disappointments. Value stocks carry the risk that the market
may not recognize their intrinsic value or that they are actually appropriately
priced at a low level.
Foreign
Securities. To the extent Small Cap Fund holds foreign securities
(including ADRs), financial information concerning those entities may be more
limited than information generally available from U.S. issuers or not available.
The value of foreign instruments may be adversely affected by local or regional
political and economic developments, as well as changes in exchange rates. For
emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries.
Sector. Small
Cap Fund may at any one time have significant investments in one or more
specific industry sectors to the extent that Small Cap Fund's benchmark is
concentrated in specific industry sectors, although Small Cap Fund does not have
a policy to concentrate in any specific industry sector. To the extent that
Small Cap Fund has significant investments in a specific sector, it is subject
to risk of loss as a result of adverse economic, business or other developments
to that sector in addition to general market risks.
Investments
in Another Collective Investment Fund. To the extent that Small Cap
Fund invests in another collective investment fund, its investment performance
would be directly related to the investment performance of the other fund.
Small Cap Fund also would bear its proportionate share of any management and
other fees paid by the other collective investment fund in addition to the
investment management and other fees paid by Small Cap Fund. As a result,
shareholders of Small Cap Fund would be subject to some duplication of
fees.
Non-Diversification.
Small Cap Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a decline
in the value of the securities of one issuer could have a significant negative
effect on Small Cap Fund.
Option
Contracts. Options contracts are subject to the risks inherent in
most derivative contracts. In addition, currency contracts also may be subject
to national and international political and economic events. Options contracts,
including options on futures contracts, also are subject to the risks of a
leveraged transaction, that is, a move against Small Cap Fund's open position
could cause Small Cap Fund to lose its premium, initial margin and any
additional funds deposited to establish or maintain the position, and Small Cap
Fund may be required to deposit a substantial amount of additional market funds
on short notice to maintain the position. Under certain market conditions, Small
Cap Fund investing in an option contact could lose more than the amount it
originally invested. Small Cap Fund also may find that under certain market
conditions, it may be difficult or impossible to liquidate an open option
contract.
Pear
Tree Quality Fund
Investment
Objective
Long-term
growth of capital. There is no guarantee that Quality Fund will achieve
its objective. Quality Fund's investment objective may be changed by its
Trustees and without shareholder approval. Quality Fund will notify
shareholders at least 60 days prior to any such change.
Principal
Investment Strategies
Under
normal market conditions, Quality Fund invests at least 80 percent of its net
assets (plus any borrowings for investment purposes) in equity securities of
U.S. issuers. Quality Fund principally invests in stocks of large-cap companies,
that is, companies with a market capitalization of greater than $5 billion at
time of purchase. The market capitalization of the companies in Quality Fund's
portfolio changes over time; Quality Fund will not automatically sell or cease
to purchase stock of a company it already owns just because the company's market
capitalization falls outside this range.
To
manage Quality Fund's portfolio, Quality Fund's investment manager, in
consultation with its sub-adviser, periodically selects what it believes is a
well-managed mutual fund (the "target portfolio") and then purchases and sells
Quality Fund assets such that Quality Fund's portfolio generally holds the same
securities and in the same percentages as the target portfolio as of the end of
the target portfolio's most recent fiscal quarter. In order for a mutual
fund to be a potential target portfolio, the mutual fund must:
· |
Invest
principally in stocks of large U.S.
companies; |
· |
Be
required to disclose publicly within 60 days of its quarter end its
portfolio holdings as of the end of the
quarter; |
· |
Be
managed by an investment adviser that is unaffiliated with Quality Fund's
investment manager or sub-adviser; and |
· |
Typically,
allow only very large institutional investors to invest directly in the
target portfolio. |
In
selecting a target portfolio for Quality Fund, Quality Fund's investment manager
considers, among other things, whether the:
· |
Target
portfolio may easily be replicated by Quality
Fund; |
· |
Quality
Fund's purchases and sales of portfolio securities may potentially impact
the management of the target portfolio; |
· |
Target
portfolio's investment objective and investment policies are compatible
with Quality Fund's investment objective and investment
policies; |
· |
Target
portfolio historically has a low rate of
turnover; |
· |
Target
portfolio historically has had strong
performance; |
· |
Target
portfolio's investment adviser has a solid reputation within the financial
services industry; and |
· |
Target
portfolio's investment adviser generally uses a quantitative investment
approach to manage the target portfolio. |
If
Quality Fund's assets significantly increase, Quality Fund may select more than
one target portfolio. From time to time, a target portfolio may invest in
non-U.S. securities. In such cases, Quality Fund typically invests in
American Depositary Receipts (or ADRs), which represent interests in such
securities.
Quality
Fund's current target portfolio is GMO Quality Fund Class III (ticker symbol:
GQETX). Neither the Fund nor its investment manager is affiliated with the
target portfolio or its investment manager.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by
investing in Quality Fund. In addition to the risks common to all Pear
Tree Funds (see "—Investment Risks Common to All Pear Tree Funds"), below is a
description of the principal risks of investing in Quality Fund.
Difficulty
in Comparing Fund Performance with Target Portfolio Performance.
Quality Fund performance typically does not mirror the target portfolio's
performance. Among other things, the holdings of the target portfolio may
change significantly during the period between the end of a quarter and the time
when those changes are publicly disclosed. At such times, it is likely
that Quality Fund is unaware of the changes, and as a result, may not be able to
avoid a loss or benefit from a repositioning of its portfolio that has been
anticipated by the target portfolio's investment adviser. In addition, the
target portfolio may have lower expenses relative to its assets than Quality
Fund.
Inability
to Conduct Due Diligence on Target Portfolio's Investment Adviser.
Neither Quality Fund's investment manager nor sub-adviser has an
agreement with a target portfolio's investment adviser. As a result, they
may be able to perform only limited due diligence on the target portfolio's
investment adviser to determine, among other things, whether the investment
adviser is adhering to the target portfolio's investment guidelines and whether
the risks disclosed in the target portfolio's offering documents (e.g., its
prospectus and statement of additional information) reflect the risks of the
target portfolio.
Potential
Impact on Target Portfolio. Quality Fund's purchases and sales of
securities for its own portfolio may adversely impact the management of a target
portfolio and thus, Quality Fund itself.
Accuracy
of Target Portfolio Information. Quality Fund relies on each target
portfolio to disclose publicly accurate information about its portfolio holdings
on or before the deadlines required for such disclosure. Any failure by a target
portfolio to file accurate and timely portfolio information could affect the
performance of Quality Fund.
Large-
and Mid-Capitalization Securities. Securities issued by large-
and mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the
high growth rates of successful smaller companies, especially during strong
economic periods, and may be unable to respond as quickly to competitive
challenges.
Foreign
Securities. To the extent Quality Fund holds foreign securities
(primarily through ADRs), financial information concerning those entities may be
more limited than information generally available from U.S. issuers or not
available. Non-U.S. equity markets in which those foreign securities are
principally traded may have limited liquidity, and be subject to complex rules,
arbitrary rules or both.
Quality
Fund also may have a limited ability to protect its investment under foreign
property and securities laws, and may have difficulty from time to time
converting local currency into U.S. dollars. Moreover, the value of
foreign instruments tends to be adversely affected by local or regional
political and economic developments, as well as changes in exchange rates.
For emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries.
Non-Diversification.
Quality Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a
decline in the value of the securities of one issuer could have a significant
negative effect on Quality Fund.
Sector.
Quality Fund may at any one time have significant investments in one or
more specific industry sectors to the extent that Quality Fund's benchmark is
concentrated in specific industry sectors, although Quality Fund does not have a
policy to concentrate in any specific industry sector. To the extent that
Quality Fund has significant investments in a specific sector, it is subject to
risk of loss as a result of adverse economic, business or other developments to
that sector in addition to general market risks.
Pear
Tree PanAgora Emerging Markets Fund
Investment
Objective
Long-term
growth of capital. There is no guarantee that Emerging Markets Fund will
achieve its objective. Emerging Markets Fund's investment objective may be
changed by its Trustees and without shareholder approval. Emerging Markets
Fund will notify shareholders at least 60 days prior to any such change.
Principal
Investment Strategies
Under
normal market conditions, Emerging Markets Fund invests at least 80 percent of
its net assets (plus borrowings for investment purposes) in equity securities,
including depository receipts, warrants and rights, of emerging markets issuers.
Emerging Markets Fund defines an emerging market issuer as an issuer having a
country classification assigned by MSCI from a country included in the MSCI
Emerging Markets® Index ("MSCI
EM"). As of June 1, 2017, the countries included in the MSCI EM Index
were: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary,
India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines,
Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United
Arab Emirates.
Emerging
Markets Fund generally invests in at least eight countries and three or more
broad geographic regions, such as Latin America, Asia or Europe. Emerging
Markets Fund also may invest greater than 25 percent of its assets in a
particular region, and it may invest in companies of any capitalization. In
addition to emerging markets securities, Emerging Markets Fund also may invest
in forward foreign currency exchange contracts.
Emerging
Markets Fund allocates its assets approximately equally between two risk-parity
sub-strategies that are proprietary to Emerging Markets Fund's sub-adviser: an
alternative beta risk-parity sub-strategy and a smart beta risk-parity
sub-strategy. A risk-parity strategy is an investment strategy that generally
attempts to balance risks across specifically identified factors rather than
rely on the securities' market weights reflected in a benchmark.
By
using the two risk parity strategies, Emerging Markets Fund hopes to reduce the
risk that market momentum would cause to a particular group of securities from
becoming a disproportionately large percentage of Emerging Markets Fund's
portfolio, thus causing the risks associated with that group of securities from
becoming disproportionately significant when compared to Emerging Markets Fund's
other risks. Concentrated risk exposure typically would increase Emerging
Markets Fund's susceptibility to a significant drop in its net asset value if
the risk is realized. The alternative beta risk-parity sub-strategy attempts to
balance risks from exposures to various countries, sectors, and issuers. The
smart beta risk-parity sub-strategy attempts to balance risks by targeting
factors, such as measures of a security's quality, value, and market momentum.
Emerging Markets Fund currently invests in Pear Tree PanAgora Risk Parity
Emerging Markets Fund to achieve its alternative beta risk-parity
exposure.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by investing in
Emerging Markets Fund. In addition to the risks common to all Pear Tree Funds
(see "—Investment Risks Common to All Pear Tree Funds"), below is a description
of the principal risks of investing in Emerging Markets Fund.
Foreign
Securities, including Emerging Markets Securities. Financial information
concerning foreign issuers may be more limited than information generally
available from U.S. issuers or not available. Non-U.S. equity markets in which
Emerging Markets Fund invests may have limited liquidity, and be subject to
complex rules, arbitrary rules or both. Emerging Markets Fund also may have a
limited ability to protect its investment under foreign property and securities
laws, and may have difficulty from time to time converting local currency into
U.S. dollars. Moreover, the value of foreign instruments tends to be adversely
affected by local or regional political and economic developments, as well as
changes in exchange rates. Emerging Markets Fund from time to time
also may have assets concentrated in a specific geographic region and/or an
individual country depending on the country weights of the MSCI EM, thus
exposing Emerging Markets Fund to the specific risks of that region or
country.
For
emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries. The events that lead
to those greater risks include political instability, immature economic and
financial institutions, local economies typically dependent on one or several
natural resources, local property and securities laws that lack clarity or
certainty, generally limited market liquidity, local ownership rules, currency
exchange restrictions and restrictions on the repatriation of investment income
and capital. Certain emerging markets are closed in whole or part to the direct
purchase of equity securities by foreigners.
In
these markets, Emerging Markets Fund may be able to invest in equity securities
solely or primarily through foreign government authorized pooled investment
vehicles. These securities could be more expensive because of additional
management fees charged by the underlying pools. In addition, such pools may
have restrictions on redemptions, limiting the liquidity of the
investment.
Active
Management Risk. The sub-adviser's judgments about the attractiveness,
value, or potential appreciation of Emerging Markets Fund's investments may
prove to be incorrect. If the securities selected and strategies employed by
Emerging Markets Fund fail to produce the intended results, Emerging Markets
Fund could underperform other funds with similar objectives and investment
strategies.
New
Investment Sub-Strategy. The Emerging Markets Fund's "smart beta"
risk-parity sub-strategy has only been recently developed by the Emerging
Markets Fund's sub-adviser. The Emerging Markets Fund's sub-adviser has
not yet been used the sub-strategy to manage client assets and thus, there is no
historical performance record to evaluate whether the sub-strategy has achieved
its goals. There is a risk that that sub-strategy may not perform as
intended in any or all types of markets.
Investments
in Another Mutual Fund. To the extent that Emerging Markets Fund
invests in another mutual fund, its investment performance would be directly
related to the investment performance of the other fund. Emerging Markets
Fund also would bear its proportionate share of any management and other fees
paid by the other mutual fund in addition to the investment management and other
fees paid by Emerging Markets Fund. As a result, shareholders of Emerging
Markets Fund would be subject to some duplication of fees.
Large-
and Mid-Capitalization Securities. Securities issued by large- and
mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the high growth
rates of successful smaller companies, especially during strong economic
periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies because small companies often have limited product lines and
few managerial or financial resources. As a result, the performance of Emerging
Markets Fund may be more volatile than a fund that invests only in large- and
mid-cap stocks.
Growth
and Value Stock Investing. Different investment styles periodically come
into and fall out of favor with investors, depending on market conditions and
investor sentiment. As Emerging Markets Fund holds stocks with both growth and
value characteristics, from time to time it could underperform stock funds that
take a strictly growth or value approach to investing. Growth stocks generally
are more volatile than the overall stock market and can have sharp price
declines as a result of earnings disappointments. Value stocks generally carry
the risk that the market may not recognize their intrinsic value or that they
are actually appropriately priced at a low level.
Forward
and Currency Contracts. Forward and currency contracts are subject to the
risks inherent in most derivative contracts. In addition, they also may be
subject to certain non-market based risks that are difficult to predict, such as
governmental, trade, fiscal, monetary and exchange control programs and
policies. Currency contracts also may be subject to national and international
political and economic events. Under certain market conditions, Emerging Markets
Fund could lose more than the amount it originally invested. Emerging Markets
Fund also may find that under certain market conditions, it may be difficult or
impossible to liquidate a position.
Sector.
Emerging Markets Fund may at any one time have significant investments in
one or more specific industry sectors to the extent that Emerging Markets Fund's
benchmark is concentrated in specific industry sectors, although Emerging
Markets Fund does not have a policy to concentrate in any specific industry
sector. To the extent that Emerging Markets Fund has significant investments in
a specific sector, it is subject to risk of loss as a result of adverse
economic, business or other developments to that sector in addition to general
market risks.
Pear
Tree PanAgora Risk Parity Emerging Markets Fund
Investment
Objective
Long-term
growth of capital. There is no guarantee that Risk Parity Fund will
achieve its objective. Risk Parity Fund's investment objective may be
changed by its Trustees and without shareholder approval. Risk Parity Fund
will notify shareholders at least 60 days prior to any such change.
Principal
Investment Strategy
Under
normal market conditions, Risk Parity Fund invests at least 80 percent of its
net assets (plus borrowings for investment purposes) in common stocks, including
depository receipts, warrants and rights, of emerging markets issuers.
Risk Parity Fund defines an emerging market issuer as an issuer having a country
classification assigned by MSCI from a country included in the MSCI Emerging
Markets Index ("MSCI
EM"). As of June 1, 2017, the countries included in the MSCI EM
Index were: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the
Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and
the United Arab Emirates.
Risk
Parity Fund generally invests in at least eight countries and three or more
broad geographic regions, such as Latin America, Asia or Europe. Risk
Parity Fund may invest greater than 25 percent of its assets in a particular
region, but not in a single country in that region. Risk Parity Fund may
invest in companies of any capitalization. In addition to emerging markets
securities, Risk Parity Fund also may invest in forward foreign currency
exchange contracts and other derivatives in order to attempt to mitigate the
adverse effects of foreign currency fluctuations.
To
manage Risk Parity Fund's assets, its sub-adviser employs its proprietary,
multi-factor risk parity strategy. A risk-parity strategy is an investment
strategy that generally attempts to balance risks across specifically identified
factors rather than rely on the securities' market weights
reflected
in a benchmark. The risk parity strategy employed to manage Risk Parity
Fund's assets follows a disciplined and systematic investment approach based on
the philosophy of risk diversification. The strategy targets factors
with proven long-term payoffs, such as value, quality, and momentum, using a
proprietary portfolio construction methodology that seeks to avoid all
unintended risk concentrations. The sub-adviser believes that the benefits
of this strategy to Risk Parity Fund come from two distinct sources: efficient
capture of the factor premia, and portfolio downside protection. Efficient
capture of the factor premia is a result of persistent intended factor exposure
and avoidance of unintended factor exposure. Downside protection is the
result of diversification across important risk dimensions.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by
investing in Risk Parity Fund. Below is a description of the principal risks of
investing in Risk Parity Fund.
Market
Risk. Risk Parity Fund's strategy, while attempting to limit
risks from sudden and substantial market corrections following market "bubbles,"
is unlikely to benefit from market momentum preceding a correction. Risk
Parity Fund also may underperform against its benchmark and broad market indices
if certain types of securities it holds (e.g., growth stocks, value stocks,
international stocks) are then-out of favor with investors.
Foreign
Securities, including Emerging Markets Securities. Financial
information concerning foreign issuers may be more limited than information
generally available from U.S. issuers or not available. Non-U.S. equity markets
in which Risk Parity Fund invests may have limited liquidity, and be subject to
complex rules, arbitrary rules or both. Risk Parity Fund also may
have a limited ability to protect its investment under foreign property and
securities laws, and may have difficulty from time to time converting local
currency into U.S. dollars. Moreover, the value of foreign
instruments tends to be adversely affected by local or regional political and
economic developments, as well as changes in exchange rates.
For
emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries. The events
that lead to those greater risks include political instability, immature
economic and financial institutions, local economies typically dependent on one
or several natural resources, local property and securities laws that lack
clarity or certainty, generally limited market liquidity, local ownership rules,
currency exchange restrictions and restrictions on the repatriation of
investment income and capital. Certain emerging markets are closed in
whole or part to the direct purchase of equity securities by
foreigners. In these markets, Risk Parity Fund may be able to invest
indirectly in equity securities solely or primarily through pooled investment
vehicles. These securities could be more expensive because of
additional management fees charged by the pools. In addition, such pools may
have restrictions on redemptions, limiting the liquidity of the
investment.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Risk Parity Fund's
investments may prove to be incorrect. If the securities selected and strategies
employed by Risk Parity Fund fail to produce the intended results, Risk Parity
Fund could underperform other funds with similar objectives and investment
strategies.
Large-
and Mid-Capitalization Securities. Securities issued by large-
and mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the
high growth rates of successful smaller companies, especially during strong
economic periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies because small companies often have limited product lines and
few managerial or financial resources. As a result, the performance of Risk
Parity Fund may be more volatile than a fund that invests only in large- and
mid-cap stocks.
Forward
and Currency Contracts. Forward and currency contracts are
subject to the risks inherent in most derivative contracts. In
addition, they also may be subject to certain non-market based risks that are
difficult to predict, such as governmental, trade, fiscal, monetary and exchange
control programs and policies. Currency contracts also may be subject
to national and international political and economic events. Under
certain market conditions, Risk Parity Fund could lose more than the amount it
originally invested. Risk Parity Fund also may find that under
certain market conditions, it may be difficult or impossible to liquidate a
position.
Non-Diversification. Risk
Parity Fund is "non-diversified," which means that it may from time to time
invest a higher percentage of its assets in a smaller number of
issuers. As a result, a decline in the value of the securities of one
issuer could have a significant negative effect on Risk Parity
Fund. It also may be considered more risky for Risk Parity Fund to
hold large positions in a single issuer because of the possibility of exercising
control over the issuer.
Sector.
Risk Parity Fund may at any one time have significant investments in one
or more specific industry sectors to the extent that the MSCI EM, Risk Parity
Fund's benchmark, is concentrated in specific industry sectors. Risk
Parity Fund, however, does not have a policy to concentrate in any specific
industry sector, and thus, it may not invest in the securities of an issuer if
that investment would cause Risk Parity Fund to invest more than 25 percent of
its assets in any one industry. To the extent that Risk Parity Fund
has significant investments in a specific sector, it is subject to risk of loss
as a result of adverse economic, business or other developments to that sector
in addition to general market risks.
Pear
Tree Polaris Foreign Value Fund
Investment
Objective
Long-term
growth of capital and income. There is no guarantee that Foreign Value Fund will
achieve its objective. Foreign Value Fund's investment objective may be
changed by its Trustees and without shareholder approval. Foreign Value
Fund will notify shareholders at least 60 days prior to any such change.
Principal
Investment Strategies
Under
normal market conditions, Foreign Value Fund invests at least 80 percent of its
net assets (plus borrowings for investment purposes) in equity securities,
warrants, and rights derivative of or convertible into common stocks, in each
case issued by foreign markets issuers. Foreign Value Fund defines a foreign
markets issuer to be an issuer that derives at least 50 percent of its gross
revenues or profits from goods or services produced in non-U.S. markets or from
sales made in non-U.S. markets. Equity securities include securities such
as depositary receipts and participatory notes that derive their values from
common stocks.
Generally,
Foreign Value Fund invests in foreign markets issuers in Europe, Australia, and
the larger capital markets of the Far East. Foreign Value Fund, however,
also may invest without limit in emerging markets issuers, that is, an issuer
organized under the laws of, or whose securities are traded in, a country
included in the MSCI Emerging Markets Index ("MSCI
EM"). As of June 1, 2017, the countries included in the MSCI EM
Index were: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the
Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and
the United Arab Emirates. Foreign Value Fund generally will be invested in
issuers in fifteen or more foreign countries and fifteen or more industry
sectors (as well as a collective investment fund that invests at least 80
percent of its net assets in similar securities issued by other foreign markets
issuers). However, Foreign Value Fund may be invested in securities from any
country (other than the U.S.), any industry sector, or of any capitalization,
provided that the securities meet the sub-adviser's investment criteria.
Foreign
Value Fund looks worldwide (other than the U.S.) for undervalued
securities. Foreign Value Fund's investment strategy has two premises:
country and industry factors are important determinants of security prices, and
global market fluctuations produce mispriced stocks. Foreign Value Fund's
sub-adviser believes that although global markets have proven generally
efficient over time, investor behavior creates volatility. The sub-adviser
also believes that that volatility should lead to inefficiently priced
securities, that is, securities that may not adequately reflect a company's
long-term fundamental valuation and/or future cash flows.
In
managing Foreign Value Fund's assets, its sub-adviser uses primarily a bottom-up
fundamental research investment process. The sub-adviser's investment
process begins with an investment universe of approximately 40,000 stocks, which
are screened monthly to identify those securities that the sub-adviser believes
represent the best opportunities for Foreign Value Fund. The result is a
portfolio of securities representing 50 to 100 companies, which are equally
weighted at purchase. Investments typically are held for three to five
years.
Foreign
Value Fund's sub-adviser may utilize options in an attempt to improve the
risk/return profile of Foreign Value Fund's returns. Selling/writing call
options is designed to provide income to Foreign Value Fund (i.e., the writer of
the call option is paid a premium, but is obligated to sell a security at a
target price). Purchasing put options (i.e., the purchaser has the right to sell
a security at a target price) is designed to protect Foreign Value Fund from
dramatic downward movements in a security, effectively locking in a minimum sale
price
for
that security. The extent of the sub-adviser's use of options may vary over time
based on the sub-adviser's assessment of market conditions and other
factors. Foreign Value Fund may also buy and sell forward foreign currency
exchange contracts in connection with its investments.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by
investing in Foreign Value Fund. In addition to the risks common to all
Pear Tree Funds (see "—Investment Risks Common to All Pear Tree Funds"), below
is a description of the principal risks of investing in Foreign Value
Fund.
Foreign
Securities, including Emerging Markets Securities. Financial
information concerning foreign issuers may be more limited than information
generally available from U.S. issuers or not available. Non-U.S. equity
markets in which Foreign Value Fund invests may have limited liquidity, and be
subject to complex rules, arbitrary rules or both. Foreign Value Fund also
may have a limited ability to protect its investment under foreign property and
securities laws, and may have difficulty from time to time converting local
currency into U.S. dollars. Moreover, the value of foreign instruments
tends to be adversely affected by local or regional political and economic
developments, as well as changes in exchange rates.
For
emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries. The events that
lead to those greater risks include political instability, immature economic and
financial institutions, local economies typically dependent on one or several
natural resources, local property and securities laws that lack clarity or
certainty, generally limited market liquidity, local ownership rules, currency
exchange restrictions and restrictions on the repatriation of investment income
and capital. Certain emerging markets are closed in whole or part to the
direct purchase of equity securities by foreigners. In these markets,
Foreign Value Fund may be able to invest in equity securities solely or
primarily through foreign government authorized pooled investment
vehicles. These securities could be more expensive because of additional
management fees charged by the underlying pools. In addition, such pools
may have restrictions on redemptions, limiting the liquidity of the
investment.
Value
Stock Investing. Different investment styles periodically come into
and fall out of favor with investors, depending on market conditions and
investor sentiment. As Foreign Value Fund holds stocks with value
characteristics, from time to time it could underperform stock funds that take a
strictly growth approach to investing. Value stocks generally carry the
risk that the market may not recognize their intrinsic value or that they are
actually appropriately priced at a low level.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Foreign Value Fund's
investments may prove to be incorrect. If the securities selected and strategies
employed by Foreign Value Fund fail to produce the intended results, Foreign
Value Fund could underperform other funds with similar objectives and investment
strategies.
Large-
and Mid-Capitalization Securities. Securities issued by large- and
mid-cap companies tend to be less volatile than securities issued by smaller
companies. Larger companies, however, may not be able to attain the high
growth rates of successful smaller companies, especially during strong economic
periods, and may be unable to respond as quickly to competitive
challenges.
Small-
and Micro-Capitalization Securities. Investments in small- and
micro-capitalization companies typically present greater risks than investments
in larger companies because small companies often have limited product lines and
few managerial or financial resources. As a result, the performance of Foreign
Value Fund may be more volatile than a fund that invests only in large- and
mid-cap stocks.
Currency
and Option Contracts. Currency and Options contracts are subject to
the risks inherent in most derivative contracts. In addition, currency
contracts also may be subject to national and international political and
economic events. Options contracts, including options on futures
contracts, also are subject to the risks
of a leveraged transaction, that is, a move against Foreign Value Fund's open
position could cause Foreign Value Fund to lose its premium, initial margin and
any additional funds deposited to establish or maintain the position, and
Foreign Value Fund may be required to deposit a substantial amount of additional
market funds on short notice to maintain the position. Under certain
market conditions, Foreign Value Fund investing in an option contact could lose
more than the amount it originally invested. Foreign Value Fund also may
find that under certain market conditions, it may be difficult or impossible to
liquidate an open option contract.
Investments
in Another Collective Investment Fund. To the extent that Foreign
Value Fund invests in another collective investment fund, its investment
performance would be directly related to the investment performance of the other
fund. Foreign Value Fund also would bear its proportionate share of any
management and other fees paid by the other collective investment fund in
addition to the investment management and other fees paid by Foreign Value
Fund. As a result, shareholders of Foreign Value Fund would be subject to
some duplication of fees.
Non-Diversification.
Foreign Value Fund is "non-diversified", which means that it may invest a higher
percentage of its assets in a smaller number of issuers. As a result, a
decline in the value of the securities of one issuer could have a significant
negative effect on Foreign Value Fund.
Sector.
Foreign Value Fund may at any one time have significant investments in
one or more specific industry sectors to the extent that Foreign Value Fund's
benchmark is concentrated in specific industry sectors, although Foreign Value
Fund does not have a policy to concentrate in any specific industry sector. To
the extent that Foreign Value Fund has significant investments in a specific
sector, it is subject to risk of loss as a result of adverse economic, business
or other developments to that sector in addition to general market risks.
Pear
Tree Polaris Foreign Value Small Cap Fund
Investment
Objective
Long-term
growth of capital and income. There is no guarantee that Foreign Value
Small Cap Fund will achieve its objective. Foreign Value Small Cap Fund's
investment objective may be changed by its Trustees and without shareholder
approval. Foreign Value Small Cap Fund will notify shareholders at least
60 days prior to any such change.
Principal
Investment Strategies
Under
normal market conditions, Foreign Value Small Cap Fund invests at least 80
percent of its net assets (plus borrowings for investment purposes) in equity
securities, warrants, and rights derivative of or convertible into common
stocks, in each case issued by foreign markets issuers. Foreign Value Small Cap
Fund defines a foreign markets issuer to be an issuer that derives at least 50
percent of its gross revenues or profits from goods or services produced in
non-U.S. markets or from sales made in non-U.S. markets. Foreign Value Small Cap
Fund considers a small-cap company to be a company having a market
capitalization at time of purchase between $50 million to $3 billion.
Equity securities include securities such as depositary receipts and
participatory notes that derive their values from common stocks.
Generally,
Foreign Value Small Cap Fund invests in foreign markets issuers in Europe,
Australia, and the larger capital markets of the Far East. Foreign Value
Small Cap Fund, however, also may invest without limit in emerging markets
issuers, that is, an issuer organized under the laws of, or whose securities are
traded in, a country included in the MSCI Emerging Markets Index ("MSCI
EM"). As of June 1, 2017, the countries included in the MSCI EM
Index were: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the
Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and
the United Arab Emirates. Foreign Value Small Cap Fund generally will be
invested in issuers in fifteen or more foreign countries. However, Foreign Value
Small Cap Fund may be invested in securities from any country (other than the
U.S.), any industry sector, or of any capitalization, provided that the
securities meet the sub-adviser's investment criteria.
Foreign
Value Small Cap Fund looks worldwide (other than the U.S.) for undervalued
small-cap securities. Foreign Value Small Cap Fund's investment strategy
has two premises: country and industry factors are important determinants of
security prices, and global market fluctuations produce mispriced stocks.
Foreign Value Small Cap Fund's sub-adviser believes that although global markets
have proven generally efficient over time, investor behavior creates
volatility. The sub-adviser also believes that that volatility should lead
to inefficiently priced securities, that is, securities that may not adequately
reflect a company's long-term fundamental valuation and/or future cash
flows.
In
managing Foreign Value Small Cap Fund's assets, its sub-adviser uses primarily a
bottom-up fundamental research investment process. The sub-adviser's
investment process begins with an investment universe of approximately 40,000
stocks, which are screened monthly to identify those securities that the
sub-adviser believes represent the best opportunities for Foreign Value Small
Cap Fund. The result is a portfolio of securities representing 50 to 100
companies, which are equally weighted at purchase. Investments typically are
held for three to five years.
Foreign
Value Small Cap Fund's sub-adviser may utilize options in an attempt to improve
the risk/return profile of Foreign Value Small Cap Fund's returns.
Selling/writing call options is designed to provide income to Foreign Value
Small Cap Fund (i.e., the writer of the call option is paid a premium, but is
obligated to sell a security at a target price). Purchasing put options (i.e.,
the purchaser has the right to sell a security at a target price) is designed to
protect Foreign Value Small Cap Fund from dramatic downward movements in a
security, effectively locking in a minimum sale price for that security. The
extent of the sub-adviser's use of options may vary over time based on the
sub-adviser's assessment of market conditions and other factors. Foreign
Value Small Cap Fund may also buy and sell forward foreign currency exchange
contracts in connection with its investments.
Principal
Investment Risks
All
investments carry a certain amount of risk. You may lose money by
investing in Foreign Value Small Cap Fund. In addition to the risks common
to all Pear Tree Funds (see "—Investment Risks Common to All Pear Tree Funds"),
below is a description of the principal risks of investing in Foreign Value
Small Cap Fund.
Foreign
Securities, including Emerging Markets Securities. Financial
information concerning foreign issuers may be more limited than information
generally available from U.S. issuers or not available. Non-U.S. equity
markets in which Foreign Value Small Cap Fund invests may have limited
liquidity, and be subject to complex rules, arbitrary rules or both.
Foreign Value Small Cap Fund also may have a limited ability to protect its
investment under foreign property and securities laws, and may have difficulty
from time to time converting local currency into U.S. dollars. Moreover,
the value of foreign instruments tends to be adversely affected by local or
regional political and economic developments, as well as changes in exchange
rates.
For
emerging market equity securities, these risks tend to be greater than for
securities of issuers located in more developed countries. The events that
lead to those greater risks include political instability, immature economic and
financial institutions, local economies typically dependent on one or several
natural resources, local property and securities laws that lack clarity or
certainty, generally limited market liquidity, local ownership rules, currency
exchange restrictions and restrictions on the repatriation of investment income
and capital. Certain emerging markets are closed in whole or part to the
direct purchase of equity securities by foreigners. In these markets,
Foreign Value Small Cap Fund may be able to invest in equity securities solely
or primarily through foreign government authorized pooled investment
vehicles. These securities could be more expensive because of additional
management fees charged by the underlying pools. In addition, such pools
may have restrictions on redemptions, limiting the liquidity of the
investment.
Value
Stock Investing. Different investment styles periodically come into
and fall out of favor with investors, depending on market conditions and
investor sentiment. As Foreign Value Small Cap Fund holds stocks with
value characteristics, from time to time it could underperform stock funds that
take a strictly growth approach to investing. Value stocks generally carry
the risk that the market may not recognize their intrinsic value or that they
are actually appropriately priced at a low level.
Small-Capitalization
Securities. Investments in small-capitalization companies typically
present greater risks than investments in larger companies because small
companies often have limited product lines and few managerial or financial
resources. As a result, the performance of Foreign Value Small Cap Fund may be
more volatile than a fund that invests only in large- and mid-cap stocks.
Currency
and Option Contracts. Currency and Options contracts are subject to
the risks inherent in most derivative contracts. In addition, currency
contracts also may be subject to national and international political and
economic events. Options contracts, including options on futures
contracts, also are subject to the risks
of a leveraged transaction, that is, a move against Foreign Value Small
Cap
Fund's open position could cause Foreign Value Small Cap Fund to lose its
premium, initial margin and any additional funds deposited to establish or
maintain the position, and Foreign Value Small Cap Fund may
be required to deposit a substantial amount of additional market funds on short
notice to maintain the position. Under certain market conditions,
Foreign Value Small Cap Fund
investing in an option contact could lose more than the amount it originally
invested. Foreign Value Small Cap Fund also
may find that under certain market conditions, it may be difficult or impossible
to liquidate an open option contract.
Active
Management Risk. The sub-adviser's judgments about the
attractiveness, value, or potential appreciation of Foreign Value Small Cap
Fund's investments may prove to be incorrect. If the securities selected and
strategies employed by Foreign Value Small Cap Fund fail to produce the intended
results, Foreign Value Small Cap Fund could underperform other funds with
similar objectives and investment strategies.
Investments
in Another Collective Investment Fund. To the extent that Foreign
Value Small Cap Fund invests in another collective investment fund, its
investment performance would be directly related to the investment performance
of the other fund. Foreign Value Small Cap Fund also would bear its
proportionate share of any management and other fees paid by the other
collective investment fund in addition to the investment management and other
fees paid by Foreign Value Small Cap Fund. As a result, shareholders of
Foreign Value Small Cap Fund would be subject to some duplication of fees.
Non-Diversification.
Foreign Value Small Cap Fund is "non-diversified", which means that it may
invest a higher percentage of its assets in a smaller number of issuers.
As a result, a decline in the value of the securities of one issuer could have a
significant negative effect on Foreign Value Small Cap Fund.
Sector.
Foreign Value Small Cap Fund may at any one time have significant
investments in one or more specific industry sectors to the extent that Foreign
Value Small Cap Fund's benchmark is concentrated in specific industry sectors,
although Foreign Value Small Cap Fund does not have a policy to concentrate in
any specific industry sector. To the extent that Foreign Value Small Cap Fund
has significant investments in a specific sector, it is subject to risk of loss
as a result of adverse economic, business or other developments to that sector
in addition to general market risks.
Principal
Investment Strategies Common to all Pear Tree Funds
The
following principal investment strategies are common to all Pear Tree
Funds:
Securities
Lending. To earn additional income, a Pear Tree Fund may lend its
securities to brokers, dealers and other institutional investors in an amount
not to exceed one-third of the value of its total assets via a securities
lending program through the securities lending agent. When the Pear Tree
Fund lends its securities, it typically receives back collateral in the form of
cash or high quality securities. Cash collateral typically is invested by
the Pear Tree Fund in a money market fund, with the Pear Tree Fund splitting the
income received from the money market fund with the securities lending
agent. Collateral in the form of securities typically is held by the Pear
Tree Fund's custodian, and the Pear Tree Fund receives a premium for loaning its
securities. That premium also is split with the securities lending
agent. The Pear Tree Fund returns the collateral when its lent securities
are returned, or, in the event the lent securities are not returned, the
collateral is retained or sold by the Pear Tree Fund to compensate it for its
loss.
Should
a borrower of securities fail financially, the lending Pear Tree Fund may
experience delays in recovering the securities or exercising its rights in the
collateral. Loans are made only to borrowers that are deemed by the
securities lending agent to be of good financial standing. In a loan
transaction, a Pear Tree Fund that accepts cash collateral also will bear the
risk of any decline in value of securities acquired with cash collateral,
including shares of money market funds that intend to maintain a stable share
price.
Derivatives.
Each Pear Tree Fund, other than Emerging Markets Fund and Risk Parity Fund, may
invest in derivatives for the purpose of hedging the value of the portfolio or
to establish a position in the future. Emerging Markets Fund may invest in
derivatives for cash-equitization purposes (such as to manage temporary cash
positions). Risk Parity Fund may invest in derivatives in order to attempt
to mitigate the adverse effects of foreign currency fluctuations. Each
Pear Tree Fund's investments in derivative instruments are subject to a number
of risks. Many derivatives are instruments negotiated with a single
counterparty, and thus, may not be resold, may be terminated only subject to
penalty, and may be subject to non-performance by the counterparty. In part
because of their complexity, many derivatives also involve the risk of
mispricing or improper valuation, as well as the risk that the value of the
derivative may not increase or decrease as expected. Certain derivatives
also allow them to leverage their portfolios, and thus, could lose more than the
principal amount it invested in those derivatives.
Cash
Management. From time to time, a Pear Tree Fund will hold some of
its assets as cash and/or cash equivalent financial instruments. Any cash
or cash equivalent position held by a Pear Tree Fund typically is as a result of
uninvested proceeds of a prior investment, uninvested cash received from new
subscriptions, or uninvested cash being held to meet anticipated
redemptions. Cash equivalent instruments include repurchase agreements and
interests in money market funds and other investment funds intended for
short-term liquid investments. Except when a Pear Tree Fund employs a
temporary defensive position or anticipates significant fund redemptions, it is
not the policy of the Pear Tree Funds to maintain a significant portion of its
assets as cash or cash equivalent instruments.
Temporary
Defensive Positions. From time to time, a Pear Tree Fund may take
temporary defensive positions that are inconsistent with the Pear Tree Fund's
principal investment strategies in attempting to respond to adverse market,
economic, political or other conditions. When taking a defensive position, the
Pear Tree Fund may not achieve its investment objective.
Principal
Investment Risks Common to All Pear Tree Funds
The
following are principal risks that are common to the Pear Tree Funds as well as
most equity funds:
· |
Market,
Industry and Specific Holdings. The share price of a Pear Tree Fund
may fall because of weakness in the stock markets, generally, weakness
with respect to a particular industry in which the Pear Tree Fund has
significant holdings, or weaknesses associated with one or more specific
companies in which the Pear Tree Fund may have substantial
investments. The stock markets generally may decline because of
adverse economic and financial developments in the U.S. and abroad.
Industry or company earnings may deteriorate because of a variety of
factors, including maturing product lines, changes in technologies, new
competition and changes in management. Such weaknesses typically
lead to changes in investor expectations of future earnings and a lack of
confidence in current stock prices. Downward pressures on stock prices
accelerate if institutional investors, who comprise a substantial portion
of the market, also lose confidence in current
prices. |
· |
Liquidity.
Some Pear Tree Fund portfolio holdings may be subject to legal or
contractual restrictions on resale, making them difficult to sell,
especially in a timely manner. Adverse market or economic conditions
may result in limited or no trading market for other securities held by a
Pear Tree Fund. Under any of these conditions, it may be difficult for a
Pear Tree Fund selling one of these securities to receive a sales price
comparable to the value assigned to the security by the Pear Tree Fund, or
if the Pear Tree Fund continues to hold the security in its portfolio, to
determine the value of the security. |
Certain
types of securities, once sold, may not settle for extended periods of time, in
which case the selling Pear Tree Fund would not receive the sales proceeds to
meet its obligations, including shareholder redemption request, or reinvest in
additional portfolio securities.
· |
Investment
Strategies. Each Pear Tree Fund pursues its investment
objective using a specific investment strategy or, in the case of Emerging
Markets Fund, two investment strategies. An investment strategy
generally is a set of principles or rules that are designed to assist the
Fund in selecting its portfolio securities. For the most part, the
principles or rules comprising a Fund's investment strategy involve a
tradeoff between principles or rules that are intended to help the Fund
consistently increase the value of its portfolio, and principles or rules
that are intended to prevent the Fund from losing all or substantially all
of its value. For all Pear Tree Fund investment strategies,
there are risks that a strategy will not perform as anticipated, or that
market and other conditions under which the investment strategy is
expected to perform as anticipated, will not
occur. |
Changes
in Policies
Each
Pear Tree Fund's policy of investing at least 80 percent of its net assets (less
borrowings for investment purposes) in a particular type of investment may not
be revised unless that Pear Tree Fund's shareholders are notified at least 60
days in advance of the proposed change.
Disclosure
of Portfolio Holdings
A
description of the Pear Tree Funds' policies and procedures with respect to the
disclosure of the Pear Tree Funds' portfolio securities is available in the Pear
Tree Funds' Statement of Additional Information.
Pear
Tree Advisors, Inc., 55 Old Bedford Road, Suite 202, Lincoln, MA 01773 (the
"Manager") is responsible for day-to-day management of the business and affairs
of the Pear Tree Funds subject to oversight by the Board.
The
Manager
The
Manager is a privately held financial services firm providing Management and
administrative services and facilities to the Pear Tree Funds. As of June 30,
2017, the Manager had approximately $3.03 billion in assets under
management.
The
Manager may, subject to the approval of the Board, choose the investments of the
Pear Tree Funds itself or select sub-advisers (each, a "Sub-Adviser")
to execute the day-to-day investment strategies of the Pear Tree Funds. The
Manager currently employs the Sub-Advisers to make the investment decisions and
portfolio transactions for the Pear Tree Funds and supervises the Sub-Advisers'
investment programs.
Day-to-day
responsibility for investing Pear Tree Fund' assets currently is provided by the
Sub-Advisers described below. The Pear Tree Funds and the Manager have
received an exemptive order from the Securities and Exchange Commission that
permits the Manager, subject to certain conditions, to enter into or amend an
advisory contract with unaffiliated Sub-Advisers with respect to any Pear Tree
Fund without obtaining shareholder approval. With Board approval, the
Manager may employ a new unaffiliated Sub-Adviser for the Pear Tree Fund, change
the terms of the advisory contract with an unaffiliated Sub-Adviser, or enter
into new advisory contracts with a Sub-Adviser. The Manager retains
ultimate responsibility to oversee the Sub-Advisers to the Pear Tree Funds and
to recommend their hiring, termination, and replacement. Shareholders of
the Pear Tree Fund continue to have the right to terminate the advisory contract
applicable to the Pear Tree Fund at any time by a vote of the majority of the
outstanding voting securities of the Pear Tree Fund. Shareholders will be
notified if the Sub-Adviser is removed or replaced or if there has been any
material amendment to an advisory contract.
The
Sub-Advisers and Portfolio Management
The
Sub-Advisers provide portfolio management and related services to each Pear Tree
Fund, including trade execution.
The
Statement of Additional Information provides additional information about each
portfolio manager's compensation, other accounts managed by each portfolio
manager and each portfolio manager's ownership of shares of his or her
Fund.
Pear
Tree Quality Fund.
Sub-Adviser.
Columbia Partners, L.L.C., Investment Management ("Columbia"),
5425 Wisconsin Avenue, Suite 700, Chevy Chase, Maryland 20815 serves as
the Sub-Adviser to Pear Tree Quality Fund. As of June 30, 2017,
Columbia had approximately $1.68 billion in assets under management for
individual, pension plan and endowment accounts. The Manager is
responsible for determining the actual composition of the Quality Fund
portfolio, and the Columbia portfolio manager is primarily responsible for the
day-to-day management of Quality Fund.
Portfolio
Management.
Portfolio
manager |
Portfolio
manager experience in this Fund |
Primary
title(s) with Sub-Adviser, primary
role and investment experience |
Robert
A. von Pentz, CFA |
Since
2011 |
Chairman
of the Firm's Management Committee, Senior Equity Portfolio Manager
Investment
professional since 1984 |
Pear
Tree PanAgora Emerging Markets Fund and Pear Tree PanAgora Risk Parity Emerging
Markets Fund
Sub-Adviser.
PanAgora Asset Management, Inc. ("PanAgora"),
470 Atlantic Avenue, Boston, Massachusetts 02110, serves as the Sub-Adviser to
Emerging Markets Fund and Risk Parity Fund. As of June 30, 2017, PanAgora
had approximately $48.9 billion in assets under management in portfolios of
institutional pension and endowment funds, among others. Putnam
Investments, LLC is a control person of PanAgora. The portfolio managers
for each of Emerging Markets Fund and Risk Parity Fund are jointly and primarily
responsible for the portfolio management of that Fund.
Portfolio
Management.
Pear
Tree PanAgora Emerging Markets Fund and Pear Tree PanAgora Risk Parity
Fund
Portfolio
manager |
Portfolio
manager experience in these Funds |
Primary
title(s) with Sub-Adviser, primary
role and investment experience |
Edward
Qian, Ph.D., CFA |
Emerging
Markets Fund since 2013
Risk
Parity Fund since 2016 |
Chief
Investment Manager and Head of Research, Multi Asset Investment
professional since 1998; Dr. Qian joined PanAgora in 2007.
|
Mark
Barnes, Ph.D. |
Emerging
Markets Fund since 2013
Risk
Parity Fund since 2016 |
Director,
Multi-Asset. Mr. Barnes joined PanAgora in 1998. |
Nicholas
Alonso, CFA |
Emerging
Markets Fund since 2013
Risk
Parity Fund since 2016 |
Director,
Multi-Asset. Mr. Alonso joined PanAgora in 2010. Prior to
joining PanAgora, Mr. Alonso worked for Mellon Capital Management
(2007-2010) where he was a Quantitative Analyst primarily responsible for
research and management. |
Pear
Tree Polaris Small Cap Fund, Pear Tree Polaris Foreign Value Fund and Pear Tree
Polaris Foreign Value Small Cap Fund
Sub-Adviser.
Polaris Capital Management, LLC ("Polaris"),
121 High Street, Boston, Massachusetts 02110, serves as the Sub-Adviser to Small
Cap Fund, Foreign Value Fund and Foreign Value Small Cap Fund. As of June
30, 2017, Polaris had approximately $9 billion in assets under management for
institutional clients and affluent individuals.
The
portfolio managers for each of Small Cap Fund, Foreign Value Fund and Foreign
Value Small Cap Fund are jointly and primarily responsible for the portfolio
management of that Fund.
Portfolio
Management.
Portfolio
manager |
Portfolio
manager experience in these Funds |
Primary
title(s) with Sub-Adviser, primary
role and investment experience |
Bernard
R. Horn, Jr. |
Small
Cap Fund since 2015; Lead Portfolio Manager
Foreign
Value Fund since 1998 (Fund inception); Lead Portfolio Manager
Foreign
Value Small Cap Fund since 2008 (Fund inception); Lead Portfolio
Manager |
President
and Chief Investment Officer since 1998.
Founder
and Portfolio Manager since 1995.
Investment
professional since 1980. |
Sumanta
Biswas, CFA |
Small
Cap Fund since 2015
Foreign
Value Fund since 2004
Foreign
Value Small Cap Fund since 2008 (Fund inception) Assistant Portfolio
Manager |
Vice
President and Assistant Portfolio Manager since 2004.
Investment
professional since 1996; 1996 to 2000 as an officer for the Securities and
Exchange Board of India; in 2001 as an intern for Delta Partners; 2002 to
2004 as an Analyst for Polaris. |
Bin
Xiao, CFA |
Small
Cap Fund since 2015
Foreign
Value Fund since 2008
Foreign
Value Small Cap Fund since 2008 |
Assistant
Portfolio Manager since 2012
Analyst
with Polaris since 2006.
Internship
at HSBC Global Investment Banking in 2005, internship at Polaris in
2004/2005. 2002 to 2004 as a software architect and project manager at PNC
Financial Service Group (PFPC), following positions as an information
systems engineer and software engineer at Vanguard Group and RIT Research
Corporation respectively.
MBA
MIT's Sloan School of Management 2006; M.S. degree computer science
Rochester Institute of Technology 2000; undergraduate degree Beijing
Institute of Technology in China in 1998. |
Jason
M. Crawshaw |
Small
Cap Fund since 2016
(Mr.
Crawshaw is not a portfolio manager of Foreign Value Fund or Foreign Value
Small Cap Fund) |
Assistant
Portfolio Manager since 2015.
Analyst
with Polaris since 2014.
Investment
professional since 1994; 1994 to 1996, First Corp Merchant Bank, Equity
Analyst for internal, hedge fund; 1996 to 1997, Coronation Securities,
Equity Analyst/Assistant Portfolio Manager for internal hedge fund; 1998
to 2001, Equinox Holdings, Portfolio Manager for long/short small cap
equity portfolio; 2002 to 2006, Brait Specialized Funds, Portfolio Manager
for long/short small cap equity portfolio; 2007 to 2013, Liberty Square
Asset Management, Managing Director and Portfolio Manager for boutique
international hedge fund/asset manager. |
Management
and Sub-Advisory Fees
As
compensation for services rendered for fiscal year ended March 31, 2017, each
Pear Tree Fund paid the Manager as follows.
|
Average
Daily Net Assets of the Fund |
Contractual
Investment Advisory Fee (%) (annual rate) |
Actual
Advisory Fee Rate |
All
Funds (excluding Small Cap Fund and Risk Parity Fund) |
All |
1.00% |
1.00%
|
|
|
|
|
Small
Cap Fund
Risk
Parity Fund |
All
$0
– 300 Million
$300
– 600 Million
$600
Million or more |
0.80%
0.60%
0.65%
0.70% |
0.80%*
0.60%
|
*Prior
to January 1, 2015, the sub-advisory fee payable to the Sub-Adviser to Small Cap
Fund was based on a rate of 1.00% of the average daily net assets of that
fund.
Sub-Advisory
Fees
From
the management fee, the Manager pays the expenses of providing investment
advisory services to the Pear Tree Funds, including the fees of the Sub-Advisers
of each individual Pear Tree Fund.
Trustee
Approval
The
Pear Tree Funds' Semi-Annual report for the semi-annual period ended September
30, 2016 contains a detailed discussion of the factors considered by the Trustee
and their conclusions in approving the management contract and advisory
contracts for all Funds.
Fee
Waivers/Expense Limitation.
Pear
Tree Quality Fund. The Manager has 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 Quality
Fund, such that the aggregate management fee that the Manager would receive
during the waiver period for serving as the investment manager of Quality Fund
would be calculated using (a) an annual rate of 0.75 percent for the first $125
million of Quality Fund's net assets, and (b) an annual rate of 0.50 percent for
Quality Fund's net assets in excess of $125 million. This fee waiver only
may be terminated with the approval of the Trustees. For the year ended
March 31, 2017, the Manager waived fees in the aggregate amount of
$299,896.
Pear
Tree PanAgora Emerging Markets Fund. The Manager has 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. This fee
waiver only may be terminated with the approval of the Trustees.
In
addition, the Manager has contractually agreed to waive its management fee with
respect to that portion of Emerging Markets Fund's net assets that are invested
in Risk Parity Fund. This fee waiver shall be in effect for as long as
Emerging Markets Fund invests in Risk Parity Fund, and it only may be terminated
with the approval of the Trustees.
For
the fiscal year ended March 31, 2017, the Manager waived fees in the aggregate
amount of $143,371.
Pear
Tree Polaris Small Cap Fund, Pear Tree Polaris Foreign Value Fund; and Pear Tree
Polaris Foreign Value Small Cap Fund. The Manager, in its capacity as
transfer agent to Pear Tree Funds, has contractually agreed until July 31, 2018
to waive such portion of the fees that it would otherwise receive for serving as
transfer agent under its agreement with Pear Tree Funds such that the aggregate
transfer agent fee with respect to Institutional Shares of each of Small Cap
Fund, Foreign Value Fund, and Foreign Value Small Cap Fund would be calculated
using an annual rate of 0.04 percent of the Fund's net assets attributable to
Institutional Shares. This fee waiver with respect to any of those Funds
only may be terminated with the approval of the Trustees. The aggregate
transfer agent fee with respect to Ordinary Shares and R6 Shares, if any, of
each Fund remains unchanged.
Pear
Tree Polaris Foreign Value Fund; Pear Tree Polaris Foreign Value Small Cap Fund.
The Manager has 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 each of
Foreign Value Fund and Foreign Value Small Cap Fund such that the aggregate
management fee that the Manager would receive during the waiver period for
serving as the investment manager of each of Foreign Value Fund and Foreign
Value Small Cap Fund would be calculated using an annual rate of 0.90 percent of
the Fund's net assets. This fee waiver with respect to either Fund only
may be terminated with the approval of the Trustees.
All
Funds. The Manager, in its capacity as transfer agent to Pear Tree Funds,
has contractually agreed until July 31, 2018 to waive such portion of the fees
that it would otherwise receive for serving as transfer agent under its
agreement with Pear Tree Funds such that the aggregate transfer agent fee with
respect to Institutional Shares of each Fund would be calculated using an annual
rate of 0.04 percent of the Fund's net assets attributable to its Institutional
Shares. This fee waiver with respect to any Fund only may be terminated
with the approval of the Trustees. The aggregate transfer agent fee with
respect to Ordinary Shares and R6 Shares, if any, of each Fund remains
unchanged.
Distributor
and Distribution Plan
U.S.
Boston Capital Corporation (the "Distributor")
is the distributor (or principal underwriter) of all Pear Tree Fund's
shares.
Each
Fund has adopted a distribution plan under Rule 12b-1 to pay for the marketing
and distribution of the Fund's Ordinary Shares and for services provided to
shareholders of the Fund's Ordinary Shares as described above. Rule
12b-1 fees are paid out of the Fund's assets on an on-going basis, which will
increase the cost of your investment and cost more than other types of sales
charges. The distribution fee is not directly tied to the
Distributor's expenses. If the Distributor's expenses exceed the Distributor's
fee, the Fund is not required to reimburse the Distributor for the excess
expenses; if the Distributor's fee exceeds the Distributor's expenses, the
Distributor may realize a profit.
Additional
Payments to Financial Intermediaries. The Manager and its affiliates
(including the Distributor) may make payments to certain financial
intermediaries that sell Ordinary and Institutional Pear Tree Fund shares for
certain administrative services, including record keeping and sub-accounting
shareholder accounts, to the extent that the Pear Tree Funds do not pay for
these costs directly. They also may make payments to certain financial
intermediaries that sell Ordinary and Institutional Pear Tree Fund shares in
connection with client account maintenance support, statement preparation and
transaction processing. The types of such payments may include payment of ticket
charges per purchase or exchange order placed by a financial intermediary,
payment of networking fees in connection with certain mutual fund trading
systems, or one-time payments for ancillary services such as setting up funds on
a financial intermediary's mutual fund trading system.
The
Manager and its affiliates also may make payments, out of their own assets based
on sales or assets attributable to the intermediary, or such other criteria
agreed to by the Manager. Such payments will not impact the total operating
expenses of any Pear Tree Fund. The intermediaries to which payments may
be made are determined by the Manager. These payments, often referred to as
"revenue sharing payments," may be in addition to other payments such as Rule
12b-1 fees and may provide an incentive, in addition to any sales charge, to
these firms to actively promote the Pear Tree Funds or to provide marketing or
service support to the Pear Tree Funds. In some circumstances, these
payments may create an incentive for an intermediary or its employees or
associated persons to recommend or sell shares of a Pear Tree Fund. Please
contact your financial intermediary for details about revenue sharing payments
it may receive.
No
dealer compensation is paid from fund assets on sales of R6 Shares. R6
Shares do not carry sales commissions, pay Rule 12b-1 fees, or make payments to
financial intermediaries to assist in the Distributor's efforts to promote the
sale of Pear Tree Fund shares. Neither the Manager nor its affiliates make
any type of administrative or service payments in connection with investments in
R6 Shares.
Each
Pear Tree Fund offers two classes of shares: Ordinary Shares and Institutional
Shares, and two Pear Tree Funds, Foreign Value Fund and Foreign Value
Small Cap Fund, also offer R6 Shares. All Pear Tree Fund shares are
offered without any sales charge. Each share class has its own fee
structure. Only Ordinary Shares are subject to a 12b-1 plan, which permits
a Pear Tree Fund to pay fees for the sale, distribution and service of its
Ordinary Shares. As described below, Institutional Shares and R6 Shares
generally are available only to limited classes of purchasers.
Your
financial representative can help you decide which share class you are eligible
to purchase and which is best for you. Please call 1-800-326-2151
for more information.
At
this time the Pear Tree Funds do not accept applications for purchases of shares
from foreign persons (that is, persons who are not U.S. citizens or resident
aliens).
Ordinary
Shares
Ordinary
Shares of each Pear Tree Fund are available to any person who is a U.S. citizen
or resident alien. The minimum initial investment in the Ordinary Shares
of each Pear Tree Fund is generally $2,500. However, you may open an
account and make an investment of as little as $1,000 if the account:
· |
Participates
in the Pear Tree Funds' Automatic Investment
Plan; |
· |
Is
for the benefit of a minor in accordance with a Uniform Transfers or Gifts
to Minors Act; or |
· |
Is
a traditional or Roth individual retirement account (IRA), Coverdell
Education Savings Account, Simplified Employee Pension (SEP-IRA) plan,
Salary Reduction Simplified Employee Pension (SARSEP) plan, Savings
Incentive Match Plan for Employees Individual Retirement Accounts (SIMPLE
IRA), 529 college savings plan, or a Keogh Plan
(HR-10). |
Each
Pear Tree Fund, at its sole discretion, may waive these minimum initial amounts
for one or more investors. You may make subsequent purchases in any
amount, although Pear Tree Funds, at its discretion, reserves the right to
impose a minimum on subsequent purchases at any time.
Class
Cost Structure
· |
No
sales charge applies; all of your money goes to work for you right
away |
· |
Subject
to a distribution (12b-1) fee of 0.25
percent |
· |
Transfer
agency and fund administration fees contemplate that the Manager or an
affiliate may have to make administrative or service payments to financial
intermediaries |
Institutional
Shares
Institutional
Shares are offered to investors who meet eligibility and minimum investment
amount requirements. The minimum initial investment amount may be invested in
one or more of the Pear Tree Funds. Pear Tree Funds, at its sole discretion, may
accept investments in an aggregate amount of at least $1 million from other
classes of investors. In addition, Pear Tree Funds, in its sole discretion, may
waive or lower minimum investment amount requirements with respect to any
investor. There is no minimum additional investment amount.
Class
Cost Structure
· |
No
sales charge applies; all of your money goes to work for you right
away |
· |
No
distribution (12b-1) fee applies |
· |
Transfer
agency and fund administration fees contemplate that the Manager or an
affiliate may have to make administrative or service payments to financial
intermediaries |
Minimum
Initial Investment |
Eligible
Classes of Institutional Share Investors |
$1
million or more in at least one Pear Tree Fund account |
· Any
employee benefit plan with at least $10,000,000 in plan assets and 200
participants, that either has a separate trustee vested with investment
discretion and certain limitations on the ability of plan beneficiaries to
access its plan investments without incurring adverse tax consequences or
which allows its participants to select among one or more investment
options, including one or more Pear Tree Funds.
· A
bank or insurance company purchasing shares for its own
account.
· An
insurance company separate account.
· A
bank, trust company, credit union, savings institution or other depository
institution, its trust department or a common trust fund purchasing for
non-discretionary customers or accounts. |
$1
million or more aggregated in one or more Pear Tree Fund accounts |
· A
private foundation that meets the requirements of Section 501(c)(3) of the
Internal Revenue Code.
· An
endowment or organization that meets the requirements of Section 509(a)(1)
of the Internal Revenue Code.
· A
family trust, testamentary trust or other similar arrangement purchasing
Institutional Shares through or upon the advice of a single fee-paid
financial intermediary other than the Manager or Distributor.
Provided,
that the investor is purchasing Pear Tree Fund shares through a
broker/dealer pursuant to an agreement with the
Distributor. |
None |
· A
mutual fund wrap program that offers allocation services, charges an
asset-based fee to its participants for asset allocation and/or offers
advisory services, and meets trading and operational requirements under an
agreement with the Distributor or authorized clearing entity; You
should ask your investment firm if it offers and you are eligible to
participate in such a mutual fund program and whether participation in the
program is consistent with your investment goals. The intermediaries
sponsoring or participating in these mutual fund programs also may offer
their clients other classes of shares of the Pear Tree Funds and investors
may receive different levels of services or pay different fees depending
upon the class of shares included in the program. Investors should
consider carefully any separate transaction and other fees charged by
these programs in connection with investing in each available share class
before selecting a share class. Neither the Pear Tree Fund, nor the
Manager, nor the Distributor receives any part of the separate fees
charged to clients of such intermediaries.
· A
registered investment adviser that charges an asset-based investment
advisory fee for its investment advisory services and is purchasing Pear
Tree Fund shares on behalf of its investment advisory
clients.
· A
state, county, city, or any instrumentality, department, authority, or
agency of one of these types of entities, or a trust, pension,
profit-sharing or other benefit plan for the benefit of the employees of
one of these types of entities, provided that the investor is prohibited
by applicable law from paying a sales charge or commission when it
purchases shares of any registered investment management company;
or
· An
officer, partner, trustee, director, or employee of Pear Tree Funds, any
affiliate of Pear Tree Funds, and Sub-Adviser, and any affiliate of any
Sub-Adviser (a "Fund
Employee"), the spouse or child of a Fund Employee, a Fund Employee
acting as custodian for a minor child, any trust, pension, profit-sharing
or other benefit plan for the benefit of a Fund Employee or spouse and
maintained by one of the above entities, the employee of a broker-dealer
with whom the Distributor has a sales agreement or the spouse or child of
such employee. |
R6
Shares (Foreign
Value Fund or Foreign Value Small Cap Fund only)
R6
Shares are offered to investors who meet eligibility and minimum investment
amount requirements. The minimum initial investment amount may be invested in
one or more of the Foreign Value Fund or Foreign Value Small Cap Fund. Pear Tree
Funds, at its sole discretion, may accept investments in an aggregate amount of
at least $100,000 from other classes of investors. In addition, Pear Tree
Funds, in its sole discretion, may waive or lower minimum investment amount
requirements with respect to any investor. There is no minimum additional
investment amount.
Class
Cost Structure
· |
No
sales charge applies; all of your money goes to work for you right
away |
· |
No
distribution (12b-1) fee applies |
· |
Transfer
agency and fund administration fees less than similar fees applied to
Ordinary and Institutional Shares; the Manager or an affiliate is not
expected to make administrative or service payments to financial
intermediaries |
Minimum
Initial Investment |
Eligible
Classes of R6 Share Investors |
$100,000
or more in at least one Pear Tree Fund account |
· A
qualified defined contribution plan or nonqualified, tax advantaged
deferred compensation retirement (457) plan that allows its participants
to select among one or more investment options, including one or more Pear
Tree Funds.
· A
defined benefit plan, endowment, foundation, investment company,
corporation, insurance company, trust company, or other type of
institutional investor. |
None |
· A
Fund Employee, the spouse or child of a Fund Employee, a Fund Employee
acting as custodian for a minor child, any trust, pension, profit-sharing
or other benefit plan for the benefit of a Fund Employee or spouse and
maintained by one of the above entities, the employee of a broker-dealer
with whom the Distributor has a sales agreement or the spouse or child of
such employee. |
Making
an Initial Investment
You
must provide the Pear Tree Funds with a completed Account Application for all
initial investments, a copy of which may be obtained by calling 1-800-326-2151,
or online at www.peartreefunds.com.
Transaction
Privileges. If you wish to have telephone exchange or telephone
redemption privileges for your account, you must elect these options on the
Account Application. You
should carefully review the Application and particularly consider the discussion
in this Prospectus regarding the Pear Tree Funds' policies on exchanges of Fund
shares and processing of redemption requests. Some accounts, including
IRA accounts, require a special Account Application. See Investment
Through Tax Deferred Retirement Plans. For further information, including
assistance in completing an Account Application, call the Pear Tree Funds'
toll-free number 1-800-326-2151. Generally,
shares may not be purchased by facsimile request or by electronic
mail.
Identity
Verification, including USA Patriot Act and Anti-Money
Laundering (AML) Restrictions.
To help the government fight the funding of terrorism and money laundering
activities, the USA Patriot Act and other federal law requires all financial
institutions, including the Pear Tree Funds' distributor, to obtain, verify and
record information that identifies each person who opens an account. Federal
law also requires the Pear Tree Funds to implement policies and procedures
reasonably designed to prevent, detect and report money laundering and other
illegal activity. When you open an account, you will need to supply
your name, address, date of birth, and other information that will allow the
Pear Tree Fund to identify you. The Pear
Tree Funds, consistent with applicable federal law, may redeem your shares and
close your account; suspend, restrict or cancel purchase and redemption orders;
process redemption requests and withhold your proceeds; and take other action if
it is unable to verify your identity within a reasonable time or conduct
required due diligence on your account or as otherwise permitted by its
anti-money laundering policies and procedures. If your account must
be closed, your redemption price will be the net asset value on the date of
redemption.
Investments
by Check. You may purchase shares of the Pear Tree Funds by sending a
check payable in U.S. dollars to the Pear Tree Funds specifying the name(s) of
the Pear Tree Fund(s) and amount(s) of investment(s), together with the
appropriate Account Application (in the case of an initial investment) to:
Pear
Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
Massachusetts 01773
If
you buy shares with a check that does not clear, your account may be subject to
extra charges to cover collection costs. Third party checks, cashier's checks
and money orders will not be accepted. Purchases made by check must wait 15 days
prior to being liquidated, unless they clear prior to that time.
Minimum
Account Size
Each
Pear Tree Fund requires that you maintain a minimum account size, currently 50
shares for Ordinary Shares and Institutional Shares. If you hold fewer than the
required minimum number of shares in your account, the Pear Tree Fund reserves
the right to notify you that it intends to sell your shares and close your
account. You will be given 30 days from the date of the notice to make
additional investments to avoid having your shares sold and your account closed.
This policy does not apply to R6 Shares and accounts of certain qualified
retirement plans.
Automatic
Investment Plan
You
may participate in the Automatic Investment Plan for the Pear Tree Funds by
completing the appropriate section of the Account Application and enclosing a
minimum investment of $1,000 per Fund. You must also authorize an automatic
withdrawal of at least $100 per account from your checking or similar account
each month to purchase shares of a Pear Tree Fund. You may cancel the Plan at
any time, but your request must be received two business days before the next
automatic withdrawal (generally the 20th of each month) to become effective for
that withdrawal. Requests received fewer than two business days before a
scheduled withdrawal will take effect with the next scheduled withdrawal.
The Pear Tree Funds or the Transfer Agent may terminate the Automatic Investment
Plan at any time.
Investments
by Wire
If
you wish to buy shares by wire, please contact the Transfer Agent at 1-800-326-2151
or your dealer or broker for wire instructions. For new accounts, you must
provide a completed Account Application before, or at the time of, payment. To
ensure that a wire is credited to the proper account, please specify your name,
the name(s) of the Pear Tree Fund(s) and class of shares in which you are
investing, and your account number. A bank may charge a fee for wiring
funds.
Subsequent
Investments
If
you are buying additional shares in an existing account, you should identify the
Pear Tree Fund and your account number. If you wish to make additional
investments in more than one Fund, you should provide your account numbers and
identify the amount to be invested in each Pear Tree Fund. You may pay for all
purchases with a single check. There are no minimum investment
requirements applicable for subsequent investments any class of shares of any
Pear Tree Fund.
Investments
through Tax-Deferred Retirement Plans
Pear
Tree Funds are available for investment through various tax-deferred retirement
vehicles. Please call 1-800-326-2151
for assistance. These types of investments may be subject to
specific fees.
Confirmation
Statements
The
transfer agent maintains an account for each investment firm or individual
shareholder and records all account transactions. You will be sent confirmation
statements showing the details of your transactions as they occur.
You
can exchange all or a portion of your shares between Funds within the same
class, subject to the applicable minimum. You may not exchange from one class of
shares to another class of shares of the same or a different Fund unless you
also meet the requirements of the share class into which you want to exchange
your existing shares. There is no fee for exchanges.
The
exchange privilege is available only in states where shares of the shares of the
Pear Tree Fund being acquired may legally be offered and sold. Not all
Pear Tree Funds, and not all share classes of a Pear Tree Fund, may be
registered in all states.
Exchanges
might produce a gain or loss, as the case may be, for tax purposes.
You
can make exchanges in writing or by telephone, if applicable. Exchanges will be
made at the net asset values per share of the shares being exchanged next
determined after the exchange request is received in good order by Pear Tree
Funds. If exchanging by telephone, you must call prior to the close of regular
trading on the NYSE (ordinarily 4:00 p.m., Eastern time). The Transfer Agent
will only honor a telephone exchange if you have elected the telephone exchange
option on your Account Application.
Generally,
shares will not be exchanged by facsimile request or by electronic mail.
Written
Request for Redemption
You
can redeem all or any portion of your shares by submitting a written request for
redemption signed by each registered owner of the shares exactly as the shares
are registered. The request must clearly identify the account number and the
number of shares or the dollar amount to be redeemed.
If
you redeem more than $100,000, or request that the redemption proceeds be paid
to someone other than the shareholder of record, or sent to an address other
than the address of record, your signature must be guaranteed. The use of
signature guarantees is designed to protect both you and the Pear Tree Funds
from the possibility of fraudulent requests for redemption.
Generally,
shares will not be redeemed by facsimile request or by electronic mail.
Requests
should be sent to:
Pear
Tree Funds
Attention:
Transfer Agent
55
Old Bedford Road, Suite 202
Lincoln,
Massachusetts 01773
Telephone
Redemption
If
you have elected the telephone redemption option on your Account Application,
you can redeem your shares by calling the Transfer Agent at 1-800-326-2151
provided that you have not changed your address of record within the last thirty
days. You must make your redemption request prior to the close of regular
trading on the NYSE (ordinarily 4:00 p.m., Eastern time). Once you make a
telephone redemption request, you may not cancel it. The Pear Tree Funds,
the Manager, the Distributor, and the Transfer Agent will not be liable for any
loss or damage for acting in good faith on exchange or redemption instructions
received by telephone reasonably believed to be genuine. The Pear Tree
Funds employ reasonable procedures to confirm that instructions communicated by
telephone are genuine. It is the Pear Tree Funds' policy to require some form of
personal identification prior to acting upon instructions received by telephone,
to provide written confirmation of all transactions effected by telephone, and
to mail the proceeds of telephone redemptions only to the redeeming
shareholder's address of record.
Automatic
Withdrawal Plan
You
may request withdrawal of a specified dollar amount (a minimum of $100) on
either a monthly, quarterly or annual basis. You may establish an Automatic
Withdrawal Plan by completing the Automatic Withdrawal Form, which is available
by calling 1-800-326-2151.
You may stop your Automatic Withdrawal Plan at any time. Additionally, the Pear
Tree Funds or the Transfer Agent may choose to stop offering the Automatic
Withdrawal Plan.
You
can directly redeem shares of a Pear Tree Fund by written request, by telephone
(if elected in writing) and by automatic withdrawal. Redemptions will be made at
the per share net asset value of such shares next determined after the
redemption request is received in good order by the Pear Tree Fund.
Good
order means that:
• |
You
have provided adequate instructions |
• |
There
are no outstanding claims against your
account |
• |
There
are no transaction limitations on your
account |
Medallion
signature guarantees and other requirements
You
are required to obtain a medallion signature guarantee when you are:
• |
Requesting
certain types of transfers or exchanges or sales of fund shares in excess
of $100,000 |
• |
Requesting
a redemption within 30 days of changing your account registration or
address |
• |
Requesting
a redemption, exchange or transfer to someone other than the account
owner(s). |
Please
call 1-800-326-2151
if you have questions on whether a signature guarantee is needed.
You
can obtain a signature guarantee from most broker-dealers, banks, credit unions
(if authorized under state law) and federal savings and loan associations. You
cannot obtain a signature guarantee from a notary public.
The
Transfer Agent will accept redemption requests only on days the NYSE is open.
The Transfer Agent will not accept requests for redemptions that are subject to
any special conditions or which specify a future or past effective date, except
for certain notices of redemptions exceeding $250,000 (see Payment
of Redemption Amount).
Payment
of Redemption Proceeds
The
Pear Tree Funds normally will send redemption proceeds on the second business
day after your request is received and in good order and processed, but in any
event within seven days, regardless of the method the Pear Tree Funds uses to
make such payment. However, if the shares to be redeemed represent an
investment made by check or through the Automatic Investment Plan, the Pear Tree
Funds reserve the right to hold the redemption check until monies have been
collected by the Pear Tree Fund from the customer's bank. The Pear Tree
Funds may also delay payment of redemption proceeds from shares purchased by
check until the check clears, which may take seven business days or
longer.
The
Pear Tree Funds may suspend this right of redemption and may postpone payment
for more than seven days only when the NYSE is closed for other than customary
weekends and holidays, or if permitted by the rules of the Securities and
Exchange Commission during periods when trading on the NYSE is restricted or
during any emergency which makes it impracticable for the Pear Tree Funds to
dispose of their securities or to determine fairly the value of their net
assets, or during any other period permitted by order of the Securities and
Exchange Commission.
Under
normal circumstances, a Pear Tree Fund would expect to meet most redemption
requests using cash in its portfolio, or selling portfolio assets to generate
cash. For redemptions in amounts in excess of $250,000, or 1 percent of a
Pear Tree Fund's net assets, whichever is less, each Pear Tree Fund reserves the
right to pay redemptions proceeds in-kind, that is, by distributing to the
redeeming shareholder portfolio securities rather than cash.
During
periods of stressed market conditions, a significant portion of each Pear Tree
Fund portfolio has comprised, and Pear Tree Funds would continue to expect that
it would comprise, mostly liquid securities (that is, securities that could be
sold at the prices then used in determining the Pear Tree Fund's net asset
value). At such times, each Pear Tree Fund would continue to meet
redemption requests using available cash or the cash proceeds from the sale of
liquid securities. If, however, a significant portion of a Pear Tree
Fund's portfolio were to comprise illiquid investments or investments that have
extended settlement periods, the Pear Tree Fund would likely limit cash
redemptions and pay redemption proceeds in kind.
You
may purchase shares of each class of a Pear Tree Fund at the per share net asset
value of shares of such class next determined after your purchase order is
received in good order by the Pear Tree Fund. Orders received prior to the close
of regular trading on the New York Stock Exchange ("NYSE")
(ordinarily 4:00 p.m., Eastern time), will receive that day's closing
price. The Pear Tree Funds will accept orders for purchases of shares on
any day on which the NYSE is open for regular trading. The offering of
shares of the Pear Tree Funds, or of any particular Fund, may be suspended from
time to time, and the Pear Tree Funds reserve the right to reject any specific
order.
Net
asset value for one Fund share is the value of that share's portion of all of
the net assets in the Pear Tree Fund. Each Pear Tree Fund calculates its net
asset value by adding the value of the Pear Tree Fund's investments, cash, and
other assets, subtracting its liabilities, and then dividing the result by the
number of shares outstanding.
Net
asset value per share of each class of shares of a Pear Tree Fund will be
determined as of the close of regular trading on the NYSE (ordinarily 4:00 p.m.,
Eastern time) on each day on which the NYSE is open for regular trading.
Currently, the NYSE is closed Saturdays, Sundays, and the following holidays:
New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday,
Memorial Day, the Fourth of July, Labor Day, Thanksgiving and Christmas.
In
determining a Pear Tree Fund's net asset value for purposes of selling,
redeeming and exchanging Pear Tree Fund shares, as well as for complying with
limitations on portfolio holdings, Pear Tree Fund assets are valued primarily on
the basis of market quotations, valuations provided by independent pricing
services or, if quotations are not readily available or the market value has
been materially affected by events occurring after the closing of an exchange or
market and before the calculation of a Pear Tree Fund's net asset value (e.g., a
significant event), at fair value as determined in good faith in accordance with
procedures approved by the Board. Significant events which may materially
affect market values may include a halt in trading for an individual security,
significant fluctuations in domestic or foreign markets, or the unexpected close
of a securities exchange or market as a result of natural disaster, an act of
terrorism or significant governmental action.
For
certain securities, where no sales have been reported, a Pear Tree Fund may
value such securities at the last reported bid price. Short-term investments
that mature in sixty-days (60) or less are valued at amortized cost.
Derivatives are valued using their present market value or fair value (i.e.,
"marked-to-market") rather than their notional value.
Emerging
Markets Fund, Risk Parity Fund, Foreign Value Fund and Foreign Value Small Cap
Fund hold most of their assets in securities that are primarily listed and
traded on a foreign exchange. Because foreign markets may be open at different
times than the NYSE, the value of a Pear Tree Fund's shares may change on days
when shareholders are not able to buy or sell them. Many securities markets and
exchanges outside the U.S. close before the close of the NYSE and before the
time the net asset value for a Pear Tree Fund is calculated. Occasionally,
events affecting the value of foreign securities or currencies may occur between
the close of the market on which the security trades and the close of the NYSE
which will not be reflected in the computation of a Pear Tree Fund's net asset
value. If events materially affecting the value of a Pear Tree Fund's securities
occur during such a period, then such securities may be valued at their fair
value as determined in good faith in accordance with procedures approved by the
Board.
Household
Delivery of Fund Documents
The
Pear Tree Funds will 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 Pear Tree Funds. If you wish to revoke your consent to this
practice, you may do so by notifying the Pear Tree Funds, by phone or in writing
(see "How to contact us"). The Pear Tree Funds will begin mailing separate
proxy statements, prospectuses and shareholder reports to you within 30 days
after receiving your notice.
Privacy
The
Pear Tree Funds have a policy that protects the privacy of your personal
information. A copy of the Pear Tree Funds' privacy notice was given to you at
the time you opened your account. The Pear Tree Funds will send you a copy
of the privacy notice each year as part of the Annual Report to Shareholders.
You may also obtain the privacy notice by calling the transfer agent or through
the Pear Tree Funds' website.
Excessive
Trading
Frequent
trading into and out of a Pear Tree Fund can disrupt portfolio management
strategies, harm a Pear Tree Fund's performance by forcing the Pear Tree Fund to
hold excess cash or to liquidate certain portfolio securities prematurely and
increase expenses for all investors, including long-term investors who do not
generate these costs. An investor may use short-term trading as a strategy, for
example, if the investor believes that the valuation of a Pear Tree Fund's
portfolio securities for purposes of calculating its net asset value does not
fully reflect the then current fair market value of those holdings. The
Pear Tree Funds investing in foreign securities or small cap securities may have
increased exposure to the risks of short term trading.
Each
Pear Tree Fund discourages, and does not take any intentional action to
accommodate, excessive and short-term trading practices, such as market timing.
Although there is no generally applied standard in the marketplace as to what
level of trading activity is excessive, we may consider trading in a Pear Tree
Fund's shares to be excessive for a variety of reasons, such as if:
• |
You
sell shares within a short period of time after the shares were
purchased; |
• |
You
make two or more purchases and redemptions within a short period of
time; |
• |
You
enter into a series of transactions that is indicative of a timing pattern
or strategy; or |
• |
We
reasonably believe that you have engaged in such practices in connection
with other mutual funds. |
The
Board has adopted policies and procedures with respect to frequent purchases and
redemptions of Fund shares by Pear Tree Fund investors. Pursuant to these
policies and procedures, we monitor selected trades periodically in an effort to
detect excessive short-term trading. If we determine that an investor or a
client of a broker has engaged in excessive short-term trading that we believe
may be harmful to a Pear Tree Fund, we will ask the investor or broker to cease
such activity and we will refuse to process purchase orders (including purchases
by exchange) of such investor, broker or accounts that we believe are under
their control. In determining whether to take such actions, we seek to act in a
manner that is consistent with the best interests of each Pear Tree Fund's
shareholders. While we use our reasonable efforts to detect excessive trading
activity, there can be no assurance that our efforts will be successful or that
market timers will not employ tactics designed to evade detection. If we are not
successful, your return from an investment in a Pear Tree Fund may be adversely
affected.
Frequently,
Pear Tree Fund shares are held through omnibus accounts maintained by financial
intermediaries such as brokers and retirement plan administrators, where the
holdings of multiple shareholders, such as all the clients of a particular
broker, are aggregated. Our ability to monitor trading practices by investors
purchasing shares through omnibus accounts is limited and dependent upon the
cooperation of the financial intermediary in observing the Pear Tree Funds'
policies.
Each
Pear Tree Fund may reject: (i) a purchase or exchange order before its
acceptance or (ii) an order prior to issuance of shares. The Pear Tree Fund may
also restrict additional purchases or exchanges in an account. Each of these
steps may be taken, for any reason, without prior notice, including transactions
that a Pear Tree Fund believes are requested on behalf of market timers. Each
Pear Tree Fund reserves the right to reject any purchase request by any investor
or financial institution if the Pear Tree Fund believes that any combination of
trading activity in the account or related accounts is potentially disruptive to
the Pear Tree Fund. A prospective investor whose purchase or exchange order is
rejected will not achieve the investment results, whether gain or loss, that
would have been realized if the order were accepted and an investment made in
the Pear Tree Fund. The Pear Tree Funds and their agents may make
exceptions to these policies if, in their judgment, a transaction does not
represent excessive trading or interfere with the efficient management of a Pear
Tree Fund's portfolio, such as purchases made through systematic purchase plans
or payroll contributions.
The
Pear Tree Funds may impose further restrictions on trading activities by market
timers in the future. The Pear Tree Funds' prospectus will be amended or
supplemented to reflect any material additional restrictions on trading
activities intended to prevent excessive trading.
Investing
Through a Broker or Other Financial Intermediary
The
Pear Tree Funds have authorized one or more brokers or other financial
intermediaries to receive on their behalf purchase, exchange, and redemption
orders. Such brokers and other financial intermediaries are authorized to
designate other intermediates to receive purchase and redemption orders on the
Pear Tree Funds' behalf. Each Pear Tree Fund will be deemed to have
received a purchase, exchange or redemption order when an authorized broker or
financial intermediary or, if applicable, such person's designee receives the
order. Customer orders will be priced at the applicable Pear Tree Fund's
net asset value next computed after the orders are received by an authorized
broker or financial intermediary or such person's authorized designee.
Investors that effect transactions through a broker, financial intermediary or a
designee may be charged a fee by the broker, financial intermediary or
designee.
Each
Pear Tree Fund reserves the right to:
• |
Charge
a fee for exchanges or to modify, limit or suspend the exchange privilege
at any time without notice. A Pear Tree Fund will provide 60 days' notice
of material amendments to or termination of the exchange
privilege. |
• |
Revise,
suspend, limit or terminate the account options or services available to
shareholders at any time, except as required by the rules of the
Securities and Exchange Commission; |
• |
Charge
a fee for wire transfers of redemption proceeds or other similar
transaction processing fees; and |
• |
Suspend
transactions in Pear Tree Fund shares when trading on the NYSE is closed
or restricted, when the Securities and Exchange Commission determines an
emergency or other circumstance exist that makes it impracticable for the
Pear Tree Funds to sell or value their portfolio
securities. |
Dividends
and Distributions
Each
Pear Tree Fund's policy is to pay at least annually as dividends substantially
all of its net investment income and to distribute annually substantially all of
its net realized capital gains, if any, after giving effect to any available
capital loss carryover. Normally, distributions are made once a year in
December.
All
distributions will be automatically reinvested in additional shares of the Pear
Tree Fund you own unless you elect to have dividends, capital gains, or both
paid by check. If you elect to have dividends, capital gains or both paid by
check, you will be sent a check for your dividends, capital gains and other
distributions if the total distribution is at least $10. If the distribution is
less than ten dollars, it may be automatically reinvested in additional shares
of the same class of the Pear Tree Fund you own. All distributions, whether
received in shares or by check, are taxable and must be reported by you on your
federal income tax returns.
If
you elect to receive distributions paid in cash by check and (a) the U.S. Postal
Service advises us that it could not deliver your check, or (b) your
distribution check remains uncashed for more than six months after the date of
issuance, the Pear Tree Funds may elect to cancel your check and in your name
invest an amount equal to the amount of the cancelled check in additional shares
of the Pear Tree Fund that made the distribution at the current day's NAV.
Taxes
The
tax discussion in this Prospectus is only a summary of certain U.S. federal
income tax issues generally affecting each Pear Tree Fund and its
shareholders. The following assumes that a Fund's shares will be
treated as capital assets in the hands of each
shareholder. Circumstances among investors will vary, so you are
encouraged to consult with your own tax advisor regarding the impact of an
investment in the Fund with respect to your specific tax situation prior to
making an investment in the Fund. Each Pear Tree Fund will distribute
all, or substantially all, of its net investment income and net capital gains to
its respective shareholders each year. Although no Fund will be taxed
on amounts it distributes, most shareholders will be taxed on amounts they
receive.
For
mutual funds generally, dividends from net investment income (other than
qualified dividend income, as described below) and distributions of net
short-term capital gains are taxable to shareholders of the fund as ordinary
income under federal income tax laws, whether paid in cash or in additional
shares. Distributions from net long-term gains recognized by a fund
are taxable as long term taxable gains regardless of the length of time a
shareholder has held the shares and whether the distribution is paid in cash or
additional shares. All such distributions to certain individuals,
trusts and estates may be subject also to the Medicare net investment income tax
at a rate of 3.8 percent, depending upon the adjusted gross income of the
recipient.
Under
current U.S. federal income tax law, distributions of earnings from qualifying
dividends received by a Pear Tree Fund from domestic corporations and qualified
foreign corporations will be taxable to non-corporate shareholders at the same
rate as long-term capital gains, which is currently 20 percent, instead of at
the ordinary income rate, provided certain requirements are
satisfied.
Distributions,
whether received as cash or reinvested in additional shares, may be subject to
federal income taxes. Dividends and distributions may also be subject to state
or local taxes. Depending on the tax rules in the state in which you
live, a portion of the dividends paid by a Pear Tree Fund attributable to direct
obligations of the U.S. Treasury and certain agencies may be exempt from state
and local taxes.
Selling
or exchanging your Fund shares is a taxable event and may result in capital gain
or loss. A capital gain or capital loss may be realized from an
ordinary redemption of shares or an exchange of shares between two mutual
funds. Any capital loss incurred on the sale or exchange of Fund
shares held for six months or less will be treated as a long-term loss to the
extent of long-term capital gain dividends received with respect to such
shares. Additionally, any loss realized on a sale, redemption or
exchange of shares of a Pear Tree Fund may be disallowed under "wash sale" rules
to the extent the shares disposed of are replaced with other shares of the same
Fund within a period of 61 days beginning 30 days before and ending 30 days
after the shares are disposed of, such as pursuant to a dividend reinvestment in
shares of the Fund. If disallowed, the loss will be reflected in an adjustment
to the tax basis of the shares acquired. You are responsible for any tax
liabilities generated by your transactions. The wash sale rules are not
applicable with respect to money market fund shares.
You
will be notified after each calendar year of the amount of income, dividends and
net capital gains distributed. You will also be advised of the percentage of the
dividends from a Pear Tree Fund, if any, that is exempt from federal income tax
and the portion, if any, of those dividends that is a tax preference item for
purposes of the alternative minimum tax. If you purchase shares of a
Pear Tree Fund through a financial intermediary, that entity will provide this
information to you.
Each
Pear Tree Fund intends to elect to be taxed each year as a regulated investment
company. A regulated investment company generally is not subject to
tax at the fund level with respect to income and gains from investments that are
distributed to shareholders. However, should a Pear Tree Fund fail to
qualify as a regulated investment company, it would be subject to taxation at
the fund level and therefore, would have less income available for
distribution.
Each
Pear Tree Fund is required to withhold a legally determined portion, currently
28 percent, of all taxable dividends, distributions and redemption proceeds
payable to any non-corporate shareholder that does not provide the Pear Tree
Fund with the shareholder's correct taxpayer identification number or
certification that the shareholder is not subject to backup
withholding. This is not an additional tax but can be credited
against your tax liability. Shareholders that invest in a Pear Tree Fund through
a tax-deferred account, such as a qualified retirement plan, generally will not
have to pay tax on dividends until they are distributed from the
account. These accounts are subject to complex tax rules, and you
should consult your tax adviser about investing through such an account.
Foreign
Income Taxes. Investment income received by a Pear Tree Fund from
sources within foreign countries may be subject to foreign income taxes withheld
at the source. The U.S. has entered into tax treaties with many
foreign countries which would entitle a Pear Tree Fund to a reduced rate of such
taxes or exemption from taxes on such income. It is impossible to
determine the effective rate of foreign tax for Risk Parity Fund in advance
since the amount of the assets to be invested within various countries is not
known.
If
more than 50 percent in value of a Pear Tree Fund's total assets at the close of
any taxable year consists of securities of foreign corporations (which is
likely), the Pear Tree Fund may file an election with the Internal Revenue
Service (the "Foreign
Election") that may permit you to take a credit (or a deduction) for
foreign income taxes paid by the Pear Tree Fund. A Pear Tree Fund may
be subject to certain holding period requirements with respect to securities
held to take advantage of this credit. If the Foreign Election is
made by the Pear Tree Fund, and you choose to use the foreign tax credit, you
would include in your gross income both dividends you receive from the Pear Tree
Fund and your allocable share of foreign income taxes paid by the Pear Tree
Fund. You would be entitled to treat the foreign income taxes paid as
a credit against your U.S. federal income taxes, subject to the limitations set
forth in the Internal Revenue Code with respect to the foreign tax credit
generally. Alternatively, you could treat your allocable share of the
foreign income taxes paid by the Pear Tree Fund as an itemized deduction from
adjusted gross income in computing taxable income rather than as a tax credit.
It is anticipated that each Pear Tree Fund will qualify to make the Foreign
Election; however, a Pear Tree Fund cannot be certain that it will be eligible
to make such an election or that you will be eligible for the foreign tax
credit.
Fund
distributions also may be subject to state, local and foreign taxes, which are
not addressed in this Prospectus or the Statement of Additional
Information.
PEAR
TREE FUNDS
These
tables detail the financial performance of each Pear Tree Fund described in this
prospectus for each of the past five years, if applicable. These tables
include total return information showing how much an investment in an Ordinary
Share or Institutional Share of a Pear Tree Fund has increased or decreased each
period (assuming reinvestment of all dividends and distributions). Certain
information reflects financial results for a single Pear Tree Fund share.
No information is provided for R6 Shares of Small Cap Fund, Quality Fund,
Emerging Markets Fund, or Risk Parity Fund because no shares were not offered or
sold during the periods covered by the financial highlights for those Pear Tree
Funds below.
The
financial statements of each Pear Tree Fund as of March 31, 2017, have been
audited by Tait, Weller & Baker LLP, the Pear Tree Funds' independent
registered public accounting firm. The financial highlights for the prior fiscal
periods were also audited by Tait, Weller & Baker LLP, whose reports, along
with each Pear Tree Fund's financial statements and related notes, was included
in Pear Tree Funds' annual reports for those periods. Copies of Pear Tree Funds'
most recent annual report and semi-annual report are available upon
request.
FINANCIAL
HIGHLIGHTS FOR PEAR TREE POLARIS SMALL CAP FUND |
(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 (000s) |
$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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (000s) |
$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). |
|
|
FINANCIAL
HIGHLIGHTS FOR PEAR TREE QUALITY FUND |
|
(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 (000s) |
$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 Excluding Short Positions |
31% |
|
35% |
|
49% |
|
35% |
|
40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (000s) |
$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 Excluding Short Positions |
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). |
FINANCIAL
HIGHLIGHTS FOR PEAR TREE PANAGORA EMERGING MARKETS FUND |
(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 (000s) |
$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% |
|
|
|
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 (000s) |
$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. |
FINANCIAL
HIGHLIGHTS FOR PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS |
(For
a share outstanding throughout each period) |
|
Ordinary
Shares |
|
Years
Ended March 31 |
|
2017 |
|
2016 |
|
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 (000s) |
$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%*** |
|
|
Institutional
Shares |
|
|
Years
Ended March 31 |
|
|
2017 |
|
2016 |
|
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 (000s) |
$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). |
FINANCIAL
HIGHLIGHTS FOR PEAR TREE POLARIS FOREIGN VALUE FUND |
(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 (000s) |
$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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (000s) |
$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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6
Shares |
|
For
the period February 6, 2017 to 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 (000s) |
|
|
$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). |
|
|
|
FINANCIAL
HIGHLIGHTS FOR PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND |
(For
a share outstanding throughout each period) |
|
Ordinary
Shares |
|
Period
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 (000s) |
$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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (000s) |
$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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6
Shares |
|
For
the period February 6, 2017 to 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 (000s) |
|
|
$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).
|
PEAR
TREE FUNDS
More
information about the Pear Tree Funds may be obtained free upon request.
The
Pear Tree Funds' Statement of Additional Information and annual and semi-annual
reports to shareholders include additional information about the Pear Tree
Funds. The Pear Tree Funds' annual report discusses the market
conditions and investment strategies that significantly affected each Pear Tree
Fund's performance during its last fiscal years. The Statement of
Additional Information is incorporated by reference into this Prospectus, which
means it is part of this Prospectus for legal purposes. The Pear Tree
Funds also file their complete schedules of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The
Pear Tree Funds' most recent portfolio holdings, as filed on Form N-Q, are also
available at www.peartreefunds.com.
If
you have questions about the Pear Tree Funds or your account, or you wish to
obtain free copies of the Pear Tree Funds' current Statement of Additional
Information or annual or semiannual reports, please contact your financial
adviser or contact us by mail, by telephone or on the Internet.
By
Mail: |
|
Pear
Tree Institutional Services 55
Old Bedford Road
Suite
202 Lincoln,
MA 01773 |
|
By
Telephone: 800-326-2151 On
the Internet: www.peartreefunds.com |
|
You
may review and obtain copies of the Pear Tree Funds' Statement of Additional
Information, financial reports, Forms N-Q and other information at the SEC's
Public Reference Room in Washington, D.C. You may also access reports and other
information about the Pear Tree Funds on the EDGAR database on the SEC's
Internet site at http://www.sec.gov. You may get copies of this information,
after payment of a duplication fee, by electronic request at the following
e-mail address:
[email protected], or by writing the SEC's Public Reference
Section, Washington, D.C. 20549-1520. Please call the SEC at 1-202-551-8090 for
information about the operation of the Public Reference Room. You may need to
refer to the Pear Tree Funds' file number.
Investment
Company Act File No. 811-03790
Distributed
by U.S. Boston Capital Corporation, member FINRA, SIPC