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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3790
Pear Tree Funds
(Exact name of registrant as specified in charter)
55 Old Bedford Road, Lincoln, MA 01773
(Address of principal executive offices)
Willard L. Umphrey
Pear Tree Advisors, Inc.
55 Old Bedford Road, Lincoln, MA 01773
(Name and address of agent for service)
Registrant’s telephone number, including area code: (781) 676-5900
Date of fiscal year end: March 31
Date of reporting period: April 1, 2014 through September 30, 2014
ITEM 1. REPORTS TO SHAREOWNERS.
PEAR TREE FUNDS
Pear Tree Columbia Small Cap Fund
Pear Tree Quality Fund
Pear Tree PanAgora Dynamic Emerging Markets Fund
Pear Tree PanAgora Risk Parity Emerging Markets Fund
Pear Tree Polaris Foreign Value Fund
Pear Tree Polaris Foreign Value Small Cap Fund
SEMI-ANNUAL REPORT
September 30, 2014
TABLE OF CONTENTS
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President’s Letter
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1
|
|
Fund Expenses
|
2
|
|
Portfolio Manager Commentaries
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4
|
|
Pear Tree Columbia Small Cap Fund
|
4
|
|
Pear Tree Quality Fund
|
6
|
|
Pear Tree PanAgora Dynamic Emerging Markets Fund
|
8
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|
Pear Tree PanAgora Risk Parity Emerging Markets Fund
|
10
|
|
Pear Tree Polaris Foreign Value Fund
|
12
|
|
Pear Tree Polaris Foreign Value Small Cap Fund
|
14
|
|
Schedules of Investments
|
16
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|
Pear Tree Columbia Small Cap Fund
|
16
|
|
Pear Tree Quality Fund
|
21
|
|
Pear Tree PanAgora Dynamic Emerging Markets Fund
|
25
|
|
Pear Tree PanAgora Risk Parity Emerging Markets Fund
|
33
|
|
Pear Tree Polaris Foreign Value Fund
|
51
|
|
Pear Tree Polaris Foreign Value Small Cap Fund
|
54
|
|
Statements of Assets and Liabilities
|
58
|
|
Statements of Operations
|
62
|
|
Statements of Changes in Net Assets
|
64
|
|
Financial Highlights
|
70
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|
Notes to Financial Statements
|
82
|
|
Information for Shareholders
|
98
|
|
Management Contract and Advisory Contract Approval
|
99
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|
Service Providers
|
inside back cover
|
This report must be preceded or accompanied by a current Pear Tree Funds prospectus for individuals who are not current shareholders of the Funds. If you are not a shareholder of a Pear Tree Fund, you should read the prospectus carefully before investing because it contains more complete information on the Pear Tree Funds’ investment objectives, risks, charges and expenses. Please consider this information carefully. For a prospectus and other information, visit www.peartreefunds.com or call (800) 326-2151.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither Pear Tree Funds nor U.S. Boston Capital Corporation is a bank.
PEAR TREE FUNDS
Dear Fellow Shareholder,
We are pleased to provide you with the Pear Tree Funds’ Semi-Annual Report for the six-month period ended September 30, 2014 and to update you on recent market conditions and the performance of the Pear Tree Funds.
For current performance information, please visit our website at www.peartreefunds.com. We thank you for your continued confidence in the Pear Tree Funds. Please feel free to e-mail us at feedback@peartreefunds.com or call us at 800-326-2151 with any questions or for assistance on your account.
Sincerely,
/s/ Willard Umphrey
Willard Umphrey
President and Chairman
Any statements in this report regarding market or economic trends or the factors influencing the historical or future performance of the Pear Tree Funds are the views of the Funds’ Investment Manager and Sub-Advisers as of the date of this report. These views are subject to change at any time based upon market and other conditions, and Fund management and the subadvisors to the Funds disclaim any responsibility to update such views. These views may not be relied upon as investment advice or as an indication of trading intent on behalf of any Pear Tree Fund. Any references to specific securities are not recommendations of such securities and may not be representative of any Pear Tree Fund’s current or future investments.
Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
PEAR TREE FUNDS
FUND EXPENSES
We believe it’s important for Fund shareholders to have a clear understanding of fund expenses and the impact expenses have on investment returns. The following is important information about each Fund’s Expense Example, which appears below.
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution (12b-1) fees (on Ordinary Shares) and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on $1,000 being invested at the beginning of the period and held for the entire period from April 1, 2014 to September 30, 2014.
Actual Expenses
The first line for each Share Class for each Fund provides information about actual account returns and actual expenses. You may use the information in this line, together with the amount you invested for that Fund and Share Class, to estimate the expenses that you paid over the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000, then multiply the result by the number under the heading “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line for each Share Class for each Fund shows you hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.
The hypothetical account values and hypothetical expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information only to compare the ongoing expenses of investing in the Fund with the ongoing expenses of other funds. To do so, compare the Fund’s 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
PEAR TREE FUNDS
Expense Example for the 6 months ended September 30, 2014
|
Pear Tree Fund
|
Share Class
|
Total Return
Description
|
Beginning
Account Value
4/1/2014
|
Ending
Account Value
9/30/2014
|
Annualized
Expense
Ratio
|
Expenses Paid*
4/1/2014 –
9/30/2014
|
|
Small Cap
|
Ordinary
|
Actual
|
$1,000.00
|
$906.20
|
1.55%
|
$7.40
|
|
Hypothetical
|
$1,000.00
|
$1,017.30
|
1.55%
|
$7.83
|
||
|
Institutional
|
Actual
|
$1,000.00
|
$907.20
|
1.30%
|
$6.20
|
|
|
Hypothetical
|
$1,000.00
|
$1,018.56
|
1.30%
|
$6.57
|
||
|
Quality
|
Ordinary
|
Actual
|
$1,000.00
|
$1,039.80
|
1.28%
|
$6.56
|
|
Hypothetical
|
$1,000.00
|
$1,018.63
|
1.28%
|
$6.49
|
||
|
Institutional
|
Actual
|
$1,000.00
|
$1,041.20
|
1.03%
|
$5.28
|
|
|
Hypothetical
|
$1,000.00
|
$1,019.89
|
1.03%
|
$5.23
|
||
|
Emerging Markets
|
Ordinary
|
Actual
|
$1,000.00
|
$1,036.10
|
1.37%
|
$7.02
|
|
Hypothetical
|
$1,000.00
|
$1,018.18
|
1.37%
|
$6.96
|
||
|
Institutional
|
Actual
|
$1,000.00
|
$1,037.40
|
1.12%
|
$5.74
|
|
|
Hypothetical
|
$1,000.00
|
$1,019.44
|
1.12%
|
$5.69
|
||
|
Risk Parity
|
Ordinary
|
Actual
|
$1,000.00
|
$1,031.10
|
1.58%
|
$8.05
|
|
Emerging Markets
|
Hypothetical
|
$1,000.00
|
$1,017.14
|
1.58%
|
$8.00
|
|
|
Institutional
|
Actual
|
$1,000.00
|
$1,031.90
|
1.31%
|
$6.68
|
|
|
Hypothetical
|
$1,000.00
|
$1,018.49
|
1.31%
|
$6.64
|
||
|
Foreign Value
|
Ordinary
|
Actual
|
$1,000.00
|
$940.10
|
1.52%
|
$7.39
|
|
Hypothetical
|
$1,000.00
|
$1,017.46
|
1.52%
|
$7.68
|
||
|
Institutional
|
Actual
|
$1,000.00
|
$941.20
|
1.27%
|
$6.17
|
|
|
Hypothetical
|
$1,000.00
|
$1,018.71
|
1.27%
|
$6.41
|
||
|
Foreign Value
|
Ordinary
|
Actual
|
$1,000.00
|
$977.20
|
1.55%
|
$7.69
|
|
Small Cap
|
Hypothetical
|
$1,000.00
|
$1,017.29
|
1.55%
|
$7.84
|
|
|
Institutional
|
Actual
|
$1,000.00
|
$978.00
|
1.31%
|
$6.48
|
|
|
Hypothetical
|
$1,000.00
|
$1,018.52
|
1.31%
|
$6.61
|
|
*
|
“Expenses Paid” for each Fund share class relating to actual or hypothetical returns, is the amount equal to the product of (a) that Fund’s and Share Class’ average account value for the six-month period ended September 30, 2014, multiplied by (b) the corresponding “Annualized Expense Ratio” multiplied by (c) the fraction 183/365 (which reflects the six-month period covered by this report).
|
PEAR TREE COLUMBIA SMALL CAP FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
||
|
Net Assets Under Management
|
$102.2 Million
|
|
|
Number of Companies
|
76
|
|
|
Price to Book Ratio
|
3.4
|
|
|
Price to Earnings Ratio
|
27.7
|
|
|
Ordinary
|
Institutional
|
|
|
Total Expense Ratio (Gross)*
|
1.64%
|
1.39%
|
|
Total Expense Ratio (Net)*
|
1.64%
|
1.39%
|
|
Ticker Symbol
|
USBNX
|
QBNAX
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
||
Investment Commentary
For the semi-annual period ended September 30, 2014 the Pear Tree Columbia Small Cap Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the Russell 2000 Index. The Fund achieved a return of (9.38%) at net asset value compared to (5.47%) for the Index.
Market Conditions and Investment Strategies
Investors have witnessed a significant shift from small cap to large cap stocks over the past six months with the Russell 2000 Index down 5.5% while the S&P 500 Index is up 6.4%. The reason for this divergence is not clear and somewhat surprising to us as small cap stocks, which typically represent domestically focused companies, should benefit more than large caps at a time when the U.S. economy is strong relative to other economies around the world.
Looking at our return versus the benchmark for the period, our underperformance was primarily due to stock selection. Our largest detractor to performance was Bio Telemetry Inc., which makes remote cardio monitoring devices. Despite the stock falling 33% over this period, we believe the company is well positioned, fundamentally sound and executing according to plan. Our second largest detractor was Civeo Corp., a recent purchase which surprised investors with negative news in September. The company, which provides lodging for oil sands and mining customers in remote locations, announced that it would not be changing its corporate structure to a Real Estate Investment Trust as anticipated. As a result, the stock was punished, losing over half of its market value in one day. With our trust in management shattered, we exited the position.
On the positive side, Ambarella Inc. and International Rectifier Corp. gained over 63% and 43% respectively for the period and were the two largest contributors to our performance. Ambarella makes the video chip for the new GoPro video camera. Semiconductor company International Rectifier, which we bought earlier this year, was acquired in August by Infineon AG at a 41% premium.
Portfolio Changes
The Industrials, Financials and Energy sector weightings increased during the last six months, while the Information Technology, Consumer Discretionary, Health Care, Materials and Consumer Staples sectors declined. Changes in all other sectors were not material.
A Look Ahead
Recent volatility in small cap stocks has investors searching for a new catalyst to reverse the recent downtrend. Seasonally, May through October tends to be the weakest time for stocks and we are approaching the end of this period. We expect that declines in many small caps will once again attract investor interest. Our focus continues to be on investing in companies with unique positions and strong management teams that will perform well over a market cycle. We continue to be positive about the long term prospects for our portfolio of companies.
The Fund is co-managed by Robert von Pentz, CFA, and Rhys Williams, CFA of Columbia Partners, L.L.C. Investment Management.
PEAR TREE COLUMBIA SMALL CAP FUND
Top 10 Holdings
|
Percentage of total net assets
|
28.6
|
|
EPR Properties
|
4.8
|
|
Alliance Data Systems Corporation
|
3.5
|
|
Ambarella, Inc.
|
2.9
|
|
Ferro Corporation
|
2.8
|
|
Asbury Automotive Group, Inc.
|
2.6
|
|
IMAX Corporation
|
2.5
|
|
Proto Labs, Inc.
|
2.4
|
|
Kforce, Inc.
|
2.4
|
|
Canadian Solar, Inc.
|
2.4
|
|
Actua Corporation
|
2.2
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Financials
|
21.5%
|
|
Industrials
|
18.9%
|
|
Information Technology
|
16.2%
|
|
Consumer Discretionary
|
13.0%
|
|
Health Care
|
12.0%
|
|
Energy
|
8.2%
|
|
Materials
|
5.2%
|
|
Consumer Staples
|
2.7%
|
|
Utilities
|
0.5%
|
|
Telecommunication Services
|
0.0%
|
|
CASH + other assets (net)
|
1.8%
|
Value of a $10,000 Investment
Pear Tree Columbia Small Cap (PTSC) Ordinary Shares vs.
Russell 2000 Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
(7.71)%
|
(9.38)%
|
(2.34)%
|
12.33%
|
5.54%
|
9.89%
|
08/03/92
|
|
Institutional Shares1
|
(7.66)%
|
(9.28)%
|
(2.10)%
|
12.63%
|
5.88%
|
9.29%
|
01/06/93
|
|
Russell 20002
|
(7.36)%
|
(5.47)%
|
3.93%
|
14.29%
|
8.19%
|
9.60%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Russell 2000 Index is a market capitalization-weighted index of 2,000 small company stocks. It is widely recognized as representative of the general market for small company stocks. Index returns assume the reinvestment of dividends and, unlike Fund returns, do no reflect any fees or expenses. You cannot invest directly in an Index. The beginning date of the Index is 08/3/92.
Small company stocks may trade less frequently and in a limited volume, and their prices may fluctuate more than stocks of other companies. Small company stocks may therefore be more vulnerable to adverse developments than those of larger companies. The Fund may invest in issuers in the real estate industry. Changes in real estate values or economic downturns can have a significant negative effect on these issuers. The Fund may invest in foreign issuers that trade on U.S. stock exchanges. These issuers may be subject to special risks including different corporate governance rules and bankruptcy laws.
PEAR TREE QUALITY FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
|||
|
Net Assets Under Management
|
$128.1 Million
|
||
|
Number of Companies
|
85
|
||
|
Price to Book Ratio
|
4.2
|
||
|
Price to Earnings Ratio
|
16.1
|
||
|
Ordinary
|
Institutional
|
||
|
Total Expense Ratio (Gross)*
|
1.55%
|
1.31%
|
|
|
Total Expense Ratio (Net)*
|
1.30%
|
1.06%
|
|
|
Ticker Symbol
|
USBOX
|
QGIAX
|
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
|||
Investment Commentary
For the semi-annual period ended September 30, 2014, the Pear Tree Quality Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the S&P 500 (the “Index”). The Fund achieved a return of 3.98% at net asset value compared to 6.43% for the Index.
Market Conditions and Investment Strategies
The Fund’s investment manager currently chooses securities for the Fund by periodically selecting a mutual fund (the “Target Portfolio”) and monitoring the Target Portfolio’s holdings. The Fund’s investment adviser, at the direction of the investment manager, rebalances the Fund’s portfolio to correspond to the Target Portfolio’s most recent holdings as publicly reported. From April 1, 2014 to September 30, 2014, the Fund’s Ordinary Shares, when compared to the Target Portfolio, had a tracking error of 0.23. Zero means perfect tracking and one means no tracking.
Over the previous six months, the Financials sector was the largest positive contributor to the Fund’s performance, due to an underweight position. The Fund’s large overweight position in the Healthcare sector and Information Technology sector also contributed to performance.
The greatest detractor to performance came from stock selection in the Information Technology sector. Stock selection in Consumer Staples, Energy, Health Care, Industrials and Materials also detracted from performance.
Portfolio Changes
The Fund’s investment manager expects the Fund to have a relatively low turnover rate given the historical stability and relatively low turnover rate of the current Target Portfolio.
For the semi-annual period ending September 30, 2014, the Fund rebalanced the holdings twice to replicate the publicly disclosed holdings of the current target portfolio. The two rebalances resulted in the sale of twenty seven positions. Also as a result of the rebalances, the Fund opened new positions in fifteen companies; five Technology companies, three Industrial companies, three Consumer Discretionary companies, two Health Care companies, one Consumer Staples company and one Telecommunications Services company.
A Look Ahead
For the foreseeable future, the Fund’s investment manager expects the Target Portfolio to remain the same. For more information on the selection of the Target Portfolio(s), please see the Fund’s Prospectus.
The Fund’s target portfolio is GMO Quality Fund III (GQETX) and the Fund is managed by Robert von Pentz, CFA of Columbia Partners, L.L.C. Investment Management.
PEAR TREE QUALITY FUND
Top 10 Holdings
|
Percentage of total net assets
|
40.6%
|
|
Microsoft Corporation
|
5.5%
|
|
Philip Morris International, Inc.
|
4.9%
|
|
Johnson & Johnson
|
4.6%
|
|
Oracle Corporation
|
4.3%
|
|
Apple, Inc.
|
4.2%
|
|
International Business Machines
|
3.9%
|
|
Procter & Gamble Company (The)
|
3.7%
|
|
Chevron Corporation
|
3.6%
|
|
Coca-Cola Company (The)
|
3.0%
|
|
Cisco Systems, Inc.
|
2.9%
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Information Technology
|
34.4%
|
|
Health Care
|
23.5%
|
|
Consumer Staples
|
23.0%
|
|
Industrials
|
5.6%
|
|
Energy
|
5.3%
|
|
Consumer Discretionary
|
5.2%
|
|
Telecommunication Services
|
1.1%
|
|
Materials
|
0.9%
|
|
Utilities
|
0.3%
|
|
Financials
|
0.0%
|
|
CASH + other assets (net)
|
0.7%
|
Value of a $10,000 Investment
Pear Tree Quality (PTQ) Ordinary Shares vs.
S&P 500 Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
0.97%
|
3.98%
|
16.18%
|
13.65%
|
5.59%
|
9.13%
|
05/06/85
|
|
Institutional Shares1
|
1.08%
|
4.12%
|
16.50%
|
14.15%
|
5.86%
|
7.82%
|
03/25/91
|
|
S & P 5002
|
1.13%
|
6.43%
|
19.73%
|
15.70%
|
8.11%
|
10.89%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The S&P 500 Index is an unmanaged index of stocks chosen to their size industry characteristics. It is widely recognized as representative of stocks in the United States. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. You cannot invest directly in the Index. The beginning date for the Index is 05/29/85. S&P 500 Index is a registered mark of Standard & Poor’s.
Investing in foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. S&P 500 Index is the registered mark of Standard & Poor’s.
PEAR TREE PANAGORA DYNAMIC EMERGING MARKETS FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
|||
|
Net Assets Under Management
|
$152.7 Million
|
||
|
Number of Companies
|
201
|
||
|
Price to Book Ratio
|
1.5
|
||
|
Price to Earnings Ratio
|
10.6
|
||
|
Ordinary
|
Institutional
|
||
|
Total Expense Ratio (Gross)*
|
1.69%
|
1.44%
|
|
|
Total Expense Ratio (Net)*
|
1.69%
|
1.44%
|
|
|
Ticker Symbol
|
QFFOX
|
QEMAX
|
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
|||
Investment Commentary
For the semi-annual period ended September 30, 2014, the Pear Tree PanAgora Dynamic Emerging Markets Fund’s Ordinary Shares (the ”Fund”) outperformed its benchmark, The MSCI Emerging Markets Index (the “Index”). The Fund achieved a return of 3.61% at net asset value compared to 3.13% for the Index.
Market Conditions and Investment Strategies
On a country basis, the largest contributors were India 0.36% and Brazil 0.31%. Among holdings in India, the largest contributor was an overweight to Indiabulls Housing Finance Ltd., while among holdings in Brazil the largest contributor was an overweight to Itausa Investimentos Itau SA. The largest detractors were Taiwan (0.36%) and Thailand (0.13%). Among holdings in Taiwan the largest detractor was an overweight to Inventec Corporation, while among holdings in Thailand the largest detractor was an overweight to PTT Global Chemical Group.
On a sector basis, the largest contributors were Materials 0.92% and Financials 0.72%. Among holdings in Materials the largest contributor was an overweight to UPL Ltd., while among holdings in Financials the largest contributor was an overweight to Indiabulls Housing Finance Ltd. The largest detractors were Information Technology (0.71%) and Health Care (0.41%). Among holdings in Information Technology the largest detractor was an overweight to Kingsoft Corporation, while among holdings in Health Care the largest detractor was an underweight to Sun Pharmaceuticals Industries.
During the semi-annual period ending September 30, 2014, the proprietary Dynamic Alpha model of the Funds’ subadviser performed well — best-ranked alpha stocks outperformed the worst ranked alpha stocks. Our proprietary Valuation composite did not perform well — stocks with attractive valuations underperformed their more expensive peers. Our proprietary Quality composite performed well — stocks with strong business and management quality metrics outperformed lower quality peers. Our proprietary Momentum composite similarly performed well — stocks with positive market sentiment outperformed stocks with poor earnings momentum.
Portfolio Changes
There were no significant portfolio changes during the semi-annual period ending September 30, 2014.
A Look Ahead
As a quantitative investment firm, we tend not to provide strategy-specific forward looking commentary. We believe that our systematic investment approach ensures that we deliver a portfolio of our highest conviction of ideas to all of our clients.
The Fund’s portfolio is managed by Dmitri Kantsyrev Ph.D., CFA and Jane Zhou, Ph.D of PanAgora Asset Management, Inc.
PEAR TREE PANAGORA DYNAMIC EMERGING MARKETS FUND
Top 10 Holdings
|
Percentage of total net assets
|
38.2%
|
|
Pear Tree PanAgora Risk Parity
Emerging Markets
|
26.0%
|
|
Samsung Electronics Company, Ltd.
|
2.7%
|
|
China Mobile Limited
|
1.6%
|
|
Taiwan Semiconductor
Manufacturing Co., Ltd.
|
1.6%
|
|
Tencent Holdings Limited
|
1.3%
|
|
China Construction Bank Corporation
|
1.3%
|
|
Bank of China Ltd., H
|
1.0%
|
|
Sasol Ltd.
|
0.9%
|
|
CNOOC Limited
|
0.9%
|
|
PT Telekomunikasi Indonesia
Persero Tbk
|
0.9%
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Financials
|
18.3%
|
|
Information Technology
|
14.4%
|
|
Energy
|
8.0%
|
|
Consumer Discretionary
|
7.0%
|
|
Materials
|
7.0%
|
|
Telecommunication Services
|
6.1%
|
|
Consumer Staples
|
4.3%
|
|
Industrials
|
4.2%
|
|
Utilities
|
2.9%
|
|
Health Care
|
1.0%
|
|
Mutual Funds
|
26.0%
|
|
Exchange Traded Funds
|
0.3%
|
|
CASH + other assets (net)
|
0.5%
|
Top 10 Country Allocations
|
Percentage of total net assets
|
62.9%
|
|
Taiwan
|
11.3%
|
|
China
|
9.3%
|
|
South Korea
|
9.1%
|
|
South Africa
|
6.9%
|
|
Hong Kong
|
6.3%
|
|
Brazil
|
6.2%
|
|
India
|
6.0%
|
|
Russia
|
3.0%
|
|
Indonesia
|
2.5%
|
|
Malaysia
|
2.3%
|
Value of a $10,000 Investment
Pear Tree PanAgora Dynamic Emerging Markets (PTEM)
Ordinary Shares vs. MSCI EM Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
(3.57)%
|
3.61%
|
4.01%
|
5.24%
|
9.05%
|
5.92%
|
09/30/94
|
|
Institutional Shares1
|
(3.52)%
|
3.74%
|
4.29%
|
5.52%
|
9.36%
|
7.59%
|
04/02/96
|
|
MSCI EM2
|
(3.36)%
|
3.13%
|
4.66%
|
4.76%
|
11.03%
|
5.43%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International Emerging Markets (“MSCI EM”) Index is an unmanaged index comprised of stocks located in countries other than the United States. It is widely recognized as representative of the general market for emerging markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect fees or expenses. You cannot invest directly in an Index. The beginning date for the Index is 09/30/94.
3 “Top 10 Holdings”, “sector Allocation”, and “Top10 Country Allocation” reflect the direct and indirect (through the Fund’s investment in Pear Tree PanAgora Risk Parity Emerging Markets Fund) securities holdings.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
||
|
Net Assets Under Management
|
$41.6 Million
|
|
|
Number of Companies
|
593
|
|
|
Price to Book Ratio
|
1.8
|
|
|
Price to Earnings Ratio
|
16.2
|
|
|
Ordinary
|
Institutional
|
|
|
Total Expense Ratio (Net)
|
2.00%
|
1.59%
|
|
Ticker Symbol
|
RPEMX
|
EMPRX
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
||
Investment Commentary
For the semi-annual period ended September 30, 2014, the Pear Tree PanAgora Risk Parity Emerging Markets Fund’s Ordinary Shares (the ”Fund”) underperformed its benchmark, The MSCI Emerging Markets Index (the “Index”). The Fund achieved a return of 3.11% at net asset value compared to 3.13% for the Index.
Market Conditions and Investment Strategies
On a country basis, the largest detractors versus the benchmark were Taiwan (0.62%) and China (0.43%). among holdings in Taiwan, the largest detractor was an underweight to Hon Hai Precision Industries, while among holdings in China, the largest detractor was an underweight to China Mobile Ltd.. The largest contributors versus the benchmark were South Korea 0.75% and Thailand 0.66%. Among holdings in South Korea, the largest contributor was an underweight to Samsung Electronics, while among holdings in Thailand, the largest contributor was an overweight to True Corporation PLC.
On a sector basis, the largest detractors versus the benchmark were Energy (0.47%) and Telecom Services (0.23%). Among holdings in Energy, the largest detractor was an overweight to Petronas Dagangan Berhad, while among holdings in Telecom Services, the largest detractor was an underweight to China Mobile Ltd. The largest contributors versus the benchmark were Financials 0.71% and Consumer Discretionary 0.54%. Among holdings in Financials, the largest contributor was an overweight to Talaat Moustafa Group, while among holdings in Consumer Discretionary, the largest contributor was an underweight to Hyundai Motor Co.
Portfolio Changes
There were no significant portfolio changes during the semi-annual period ending September 30, 2014.
A Look Ahead
As a quantitative investment firm, we tend not to provide strategy-specific forward looking commentary. We believe that our systematic investment approach ensures that we deliver a portfolio of our highest conviction of ideas to all of our clients.
The Fund’s portfolio is managed by Edward Qian, Ph.D., CFA, Mark Barnes and Nicholas Alonso of PanAgora Asset Management, Inc.
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
Top 10 Holdings
|
Percentage of total net assets
|
10.0%
|
|
iPath MSCI India Index ETN
|
4.4%
|
|
Industries Qatar JSC
|
0.8%
|
|
Qatar Electricity & Water
Company Q.S.C.
|
0.8%
|
|
Universal Robina Corporation
|
0.6%
|
|
Jollibee Foods Corporation
|
0.6%
|
|
America Movil S.A.B. Series L (c)
|
0.6%
|
|
IHH Healthcare Berhad
|
0.6%
|
|
DP World Ltd.
|
0.6%
|
|
Empresa Nacional de
Telecomunicaciones S.A.
|
0.5%
|
|
Glow Energy PCL
|
0.5%
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Financials
|
18.8%
|
|
Telecommunication Services
|
11.2%
|
|
Consumer Staples
|
11.1%
|
|
Industrials
|
10.9%
|
|
Materials
|
10.2%
|
|
Consumer Discretionary
|
9.7%
|
|
Utilities
|
8.9%
|
|
Energy
|
7.5%
|
|
Health Care
|
4.8%
|
|
Information Technology
|
2.0%
|
|
Exchange Traded Funds
|
0.0%
|
|
Exchange Traded Notes
|
4.4%
|
|
Cash and Other Assets (Net)
|
0.5%
|
Top 10 Country Allocations
|
Percentage of total net assets
|
60.6%
|
|
Malaysia
|
8.8%
|
|
Indonesia
|
6.9%
|
|
Taiwan
|
6.7%
|
|
Mexico
|
6.1%
|
|
Philippines
|
5.7%
|
|
South Korea
|
5.7%
|
|
Thailand
|
5.7%
|
|
Chile
|
5.4%
|
|
South Africa
|
5.3%
|
|
China
|
4.3%
|
Value of a $10,000 Investment
Pear Tree PanAgora Risk Parity Emerging Markets
(PTRP) Ordinary Shares vs. MSCI EM Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
(1.85)%
|
3.11%
|
3.49%
|
5.43%
|
6/27/2013
|
||
|
Institutional Shares1
|
(1.84)%
|
3.19%
|
4.08%
|
5.91%
|
6/27/2013
|
||
|
MSCI EM2
|
(3.36)%
|
3.13%
|
4.66%
|
10.49%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International Emerging Markets (“MSCI EM”) Index is an unmanaged index comprised of stocks located in countries other than the United States. It is widely recognized as representative of the general market for emerging markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect fees or expenses. You cannot invest directly in an Index. The beginning date for the Index is 06/27/2013.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
PEAR TREE POLARIS FOREIGN VALUE FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
||
|
Net Assets Under Management
|
$1,581.3 Million
|
|
|
Number of Companies
|
52
|
|
|
Price to Book Ratio
|
1.8
|
|
|
Price to Earnings Ratio
|
15.7
|
|
|
Ordinary
|
Institutional
|
|
|
Total Expense Ratio (Gross)*
|
1.54%
|
1.28%
|
|
Total Expense Ratio (Net)*
|
1.54%
|
1.28%
|
|
Ticker Symbol
|
QFVOX
|
QFVIX
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
||
Investment Commentary
For the semi-annual period ended September 30, 2014, the Pear Tree Polaris Foreign Value Fund’s Ordinary Shares (the “Fund”) underperformed its benchmark, the MSCI EAFE Index (the “Index”). The Fund achieved a return of (5.99%) at net asset value compared to (1.74%) for the Index.
Market Conditions and Investment Strategies
Most of the Fund’s losses were in the September quarter, largely impacted by currency devaluation. In local currency terms, the MSCI EAFE Index advanced; however, the U.S. dollar appreciated against other currencies, resulting in lower returns for non-U.S. equities in dollar terms. As a result, both the Index and the Fund declined in the September quarter, effectively negating the positive performances achieved in the June quarter. For the semi-annual period, three of 10 sectors contributed to performance led by Utilities, Healthcare and Consumer Staples.
Hong Kong water utility Guangdong Investment was among the top contributors. The company instituted quarterly reporting, signaling greater transparency for investors, and announced wastewater expansion initiatives. Novartis led the healthcare sector, as investors welcomed the encouraging news about its investigational heart-failure drug.
The Consumer Staples sector was representative of most sectors’ performance, with a few companies adding to returns, offset by a handful of detractors. Meiji Holdings raised prices of butter and cheese, successfully passing on the higher regulatory costs to consumers. Greencore Group saw its stock price decline on negative news in the U.K. retail grocery market. The materials sector had double-digit gains from specialty fertilizer company, Yara International, offset by declines in other European materials companies. Positive performance by Infosys, an Indian information technology company, could not outpace the stock price decline of Germany ATM company Wincor Nixdorf.
In the Consumer Discretionary sector, French market research services provider Ipsos dropped after reporting 6-month operating profit fell 20% year-on-year. Declines at Trevi Finanzaria impacted industrials returns.
Portfolio Changes
During the semi-annual period, no positions were liquidated. Five new holdings were added to the portfolio, including two banks, Sparebank 1 SR and Sberbank. We added one Consumer Discretionary stock, Hong Kong-listed Rexlot, an operator in the Chinese lottery market. We also added two Materials companies, Yara International and LANXESS AG.
A Look Ahead
World economies continue to face headwinds, ranging from debt overhangs to high unemployment. Many European economies have yet to address these legacy issues, while also suffering from Euro devaluation against the U.S. dollar. Among BRIC (Brazil, Russia, India, China) countries, China and India remain relatively unscathed, while growth prospects for Russia diminish as the Ukraine crisis continues. Brazil, and much of its Latin America counterparts, has seen slow demand and low investment. One bright spot is the U.S., which continues to drive global growth. In such an environment, many foreign companies are reporting lackluster earnings and modest guidance. Our research seeks to pinpoint those undervalued companies that can weather economic volatility and thrive in a recovery. We have carefully assessed our holdings to ensure that fundamentals remain intact, and we will continue to add opportunistically to the portfolio.
The Fund is managed by Bernard R. Horn, Jr., Sumanta Biswas, CFA and Bin Xiao, CFA of Polaris Capital Management, LLC
PEAR TREE POLARIS FOREIGN VALUE FUND
Top 10 Holdings
|
Percentage of total net assets
|
22.9%
|
|
Meiji Holdings Co., Ltd.
|
2.4%
|
|
Methanex Corporation
|
2.4%
|
|
Teva Pharmaceuticals SP
|
2.4%
|
|
Greencore Group plc
|
2.4%
|
|
Deutsche Telekom AG
|
2.3%
|
|
Infosys Technologies Ltd.
|
2.3%
|
|
Novartis AG
|
2.2%
|
|
Barratt Developments plc
|
2.2%
|
|
Yara International ASA
|
2.2%
|
|
DnB Bank ASA
|
2.1%
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Materials
|
21.5%
|
|
Consumer Discretionary
|
15.2%
|
|
Financials
|
14.4%
|
|
Industrials
|
9.3%
|
|
Energy
|
7.5%
|
|
Consumer Staples
|
6.8%
|
|
Telecommunication Services
|
6.4%
|
|
Information Technology
|
6.1%
|
|
Health Care
|
4.7%
|
|
Utilities
|
1.8%
|
|
CASH + other assets (net)
|
6.3%
|
Top 10 Country Allocations
|
Percentage of total net assets
|
74.2%
|
|
Germany
|
15.6%
|
|
United Kingdom
|
15.1%
|
|
Japan
|
8.5%
|
|
Sweden
|
7.5%
|
|
France
|
6.6%
|
|
Norway
|
6.3%
|
|
Finland
|
4.7%
|
|
Ireland
|
4.2%
|
|
Italy
|
3.3%
|
|
Canada
|
2.4%
|
Value of a $10,000 Investment
Pear Tree Polaris Foreign Value (PTFV) Ordinary Shares
vs. MSCI EAFE Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
(7.75)%
|
(5.99)%
|
7.04%
|
9.84%
|
7.24%
|
6.89%
|
05/15/98
|
|
Institutional Shares1
|
(7.69)%
|
(5.88)%
|
7.36%
|
10.11%
|
7.48%
|
8.56%
|
12/18/98
|
|
MSCI EAFE2
|
(5.83)%
|
(1.74)%
|
4.70%
|
7.04%
|
6.80%
|
4.76%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The Morgan Stanley Capital International Europe, Australia, and Far East (“MSCI EAFE”) Index is an unmanaged index comprised of stocks located in countries other than the United States. It is widely recognized as representative of the general market for emerging markets. Index returns assume the reinvestment of dividends and, unlike Fund returns, do not reflect fees or expenses. You cannot invest directly in an Index. The beginning date for the Index is 05/29/98.
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
INVESTMENT PROFILE
All Data as of September 30, 2014
|
Fund Information
|
||
|
Net Assets Under Management
|
$272.6 Million
|
|
|
Number of Companies
|
66
|
|
|
Price to Book Ratio
|
1.9
|
|
|
Price to Earnings Ratio
|
14.7
|
|
|
Ordinary
|
Institutional
|
|
|
Total Expense Ratio (Gross)*
|
1.58%
|
1.33%
|
|
Total Expense Ratio (Net)*
|
1.58%
|
1.33%
|
|
Ticker Symbol
|
QUSOX
|
QUSIX
|
|
* per prospectus dated August 1, 2014. See financial highlights for total expense ratios for the six months ended September 30, 2014.
|
||
Investment Commentary
For the semi-annual period ended September 30, 2014, the Pear Tree Polaris Foreign Value Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the MSCI ACWI ex USA Small Cap Index (the “Index”). The Fund achieved a return of (2.28%) at net asset value compared to (3.20%) for the Index.
Market Conditions and Investment Strategies
Although the Fund outperformed the benchmark, it was still in absolute negative territory for the semi-annual period due largely to currency devaluation in the September quarter. Information Technology, Consumer Staples, Utilities and Financials were the positive sector contributors. Telecommunications and Industrials were the largest detractors.
In Information Technology, Hana Microelectronics’ share price was up after the company increased its semiconductor manufacturing to meet consumer electronics demands. KRBL, a basmati rice company, was the top contributor in Consumer Staples. The company benefited from strong demand, and was able to sell more tonnage at higher prices. All utilities holdings posted positive results, led by Manila Water Company. The Consumer Discretionary sector was representative of most sectors’ performance, with a few companies adding to returns, offset by a handful of detractors. Chinese publishing company Xinhua Winshare’s double-digit gains were counterbalanced by declines in IPSOS. In Materials, positive performance by Japanese chemical company Daicel could not outpace the stock price decline of USHA Martin. Positive performance by Shanghai Mechanical, Loomis AB and Austal Limited could not offset the Industrial sector declines. In particular, PKC Group dropped, with weak demand for electrical truck chassis in central/eastern Europe, compounded by reorganization and labor problems in Brazil. German telecom provider QSC AG was down after reporting lower profits.
Portfolio Changes
With an influx of new capital during the six-month period, the Fund purchased four new holdings including Prima Meat Packers, which imports and processes meat in Japan; DFDS, one of the largest ferry companies operating in the North Sea, Baltic countries and the British Channel; Hong Kong-listed Rexlot Holdings, an established operator in the fast-growing Chinese lottery development and distribution market; and Australian-based Programmed Maintenance Services Limited, a contract service business specializing in property maintenance, employment services and provisioning for the offshore oil and gas industry. No positions were liquidated.
A Look Ahead
With the exception of North America, namely the U.S., United Kingdom and some isolated smaller countries in Asia and Africa, most world economies have yet to see any positive growth momentum. Chinese growth rates (as indicated by a 7.3% GDP in the June quarter) are slowly gravitating downward towards what may be more sustainable levels, from previous highs based on unsustainable growth in credit and fixed asset investments. In the near term, this slowdown may result in further downside volatility in markets. Recent global market fluctuations have increased the already high proportion of small cap companies in our valuation screens, thereby providing us with good opportunities to add small cap companies that we believe can weather economic volatility and thrive in a recovery.
The Fund is managed by Bernard R. Horn, Jr., Sumanta Biswas, CFA and Bin Xiao, CFA of Polaris Capital Management, LLC
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
Top 10 Holdings
|
Percentage of total net assets
|
19.9%
|
|
Chugoku Marine Paints Ltd.
|
2.1%
|
|
Daicel Corporation
|
2.1%
|
|
Greencore Group plc
|
2.0%
|
|
Ratchaburi Electricity Generating
Holding PCL
|
2.0%
|
|
Dräegerwerk AG
|
2.0%
|
|
Freenet AG
|
2.0%
|
|
Vetropack Holding AG
|
2.0%
|
|
BML Inc.
|
1.9%
|
|
QSC AG
|
1.9%
|
|
Alternative Networks plc
|
1.9%
|
There is no guarantee that such securities will continue to be viewed favorably or held in the Fund’s portfolio.
Sector Allocation
|
Percentage of total net assets
|
100.0%
|
|
Consumer Discretionary
|
22.5%
|
|
Industrials
|
15.1%
|
|
Consumer Staples
|
12.3%
|
|
Information Technology
|
10.7%
|
|
Financials
|
9.6%
|
|
Telecommunication Services
|
7.7%
|
|
Materials
|
7.1%
|
|
Health Care
|
5.8%
|
|
Utilities
|
4.8%
|
|
CASH + other assets (net)
|
4.4%
|
Top 10 Country Allocations
|
Percentage of total net assets
|
71.3%
|
|
Japan
|
13.1%
|
|
United Kingdom
|
12.4%
|
|
Hong Kong
|
7.1%
|
|
India
|
7.1%
|
|
Germany
|
7.0%
|
|
Ireland
|
6.4%
|
|
Norway
|
5.6%
|
|
Thailand
|
5.2%
|
|
Sweden
|
3.9%
|
|
China
|
3.5%
|
Value of a $10,000 Investment
Pear Tree Polaris Foreign Value Small Cap (PTFVSC)
Ordinary Shares vs. MSCI ACWI ex USA Small Cap
Index
Average Annual Total Returns
|
3Q 2014
|
Six
Months
|
One Year
|
Five Year
|
Ten Year
|
Since
Inception
|
Inception
Date
|
|
|
Ordinary Shares
|
(5.23)%
|
(2.28)%
|
17.64%
|
11.08%
|
7.48%
|
5/1/2008
|
|
|
Institutional Shares1
|
(5.22)%
|
(2.20)%
|
17.86%
|
11.34%
|
7.71%
|
5/1/2008
|
|
|
MSCI ACWI ex USA Small Cap2
|
(6.72)%
|
(3.20)%
|
4.93%
|
8.70%
|
3.85%
|
________
|
1 Institutional Shares may only be purchased by certain categories of investors and are not subject to sales charges or distribution fees.
2 The MSCI ACWI ex USA Small Cap Index captures small cap representation across 23 developed markets and 21 emerging market countries
Investing in foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.
PEAR TREE COLUMBIA SMALL CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—98.2%
|
Shares
|
Value
|
|
|
AIRLINES—1.2%
|
||
|
Spirit Airlines, Inc. (a)
|
18,413
|
$ 1,273,075
|
|
AUTO COMPONENTS—0.7%
|
||
|
Motorcar Parts of America, Inc. (a)
|
27,115
|
737,799
|
|
BANKS—6.1%
|
||
|
Bryn Mawr Bank Corporation
|
7,620
|
215,875
|
|
Central Pacific Financial Corporation
|
88,268
|
1,582,645
|
|
CoBiz Financial, Inc.
|
109,341
|
1,222,432
|
|
F.N.B. Corporation
|
178,162
|
2,136,163
|
|
Pinnacle Financial Partners, Inc. (a)
|
29,852
|
1,077,657
|
|
6,234,772
|
||
|
BIOTECHNOLOGY—0.9%
|
||
|
Albany Molecular Research, Inc. (a)
|
41,343
|
912,440
|
|
BUILDING PRODUCTS—2.1%
|
||
|
Builders FirstSource, Inc. (a)
|
63,162
|
344,233
|
|
NCI Building Systems, Inc. (a)
|
40,485
|
785,409
|
|
Trex Company, Inc. (a)
|
29,250
|
1,011,172
|
|
2,140,814
|
||
|
CHEMICALS—4.2%
|
||
|
Cambrex Corporation (a)
|
79,414
|
1,483,454
|
|
Ferro Corporation (a)
|
197,866
|
2,867,078
|
|
4,350,532
|
||
|
COMMERCIAL SERVICES & SUPPLIES—4.7%
|
||
|
Acacia Research Corporation—Acacia Technologies (b)
|
18,469
|
285,900
|
|
Kforce, Inc.
|
125,952
|
2,464,881
|
|
WageWorks, Inc. (a)
|
8,402
|
382,543
|
|
Waste Connections, Inc.
|
33,829
|
1,641,383
|
|
4,774,707
|
||
|
COMMUNICATIONS EQUIPMENT—1.4%
|
||
|
Allot Communications Ltd. (a) (b)
|
84,010
|
959,394
|
|
Ubiquiti Networks, Inc.(b)
|
13,078
|
490,818
|
|
1,450,212
|
||
|
CONSTRUCTION & ENGINEERING—1.0%
|
||
|
Tutor Perini Corporation (a)
|
37,278
|
984,139
|
|
DIVERSIFIED FINANCIALS—3.6%
|
||
|
Cardtronics, Inc. (a)
|
62,980
|
2,216,896
|
|
Greenhill & Co., Inc.
|
10,625
|
493,956
|
|
Hercules Technology Growth Capital, Inc. (b)
|
68,068
|
984,263
|
|
3,695,115
|
||
|
ELECTRONIC EQUIPMENT—2.4%
|
||
|
Canadian Solar, Inc. (a)
|
67,431
|
2,412,007
|
|
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.9%
|
||
|
Applied Optoelectronics, Inc. (a)
|
52,224
|
840,806
|
|
Intersil Corporation
|
76,880
|
1,092,465
|
|
1,933,271
|
||
|
ENERGY EQUIPMENT & SERVICES—2.5%
|
||
|
Core Laboratories N.V.
|
12,081
|
1,768,054
|
|
Trina Solar Limited (a)(b)(c)
|
66,812
|
806,421
|
|
2,574,475
|
||
|
ENERGY EQUIPMENT & SUPPLIES—1.0%
|
||
|
PDC Energy, Inc. (a)
|
19,815
|
996,496
|
|
FOOD PRODUCTS—2.7%
|
||
|
Amira Nature Foods Ltd (a)(b)
|
82,051
|
1,284,919
|
|
Boulder Brands Inc. (a)
|
105,112
|
1,432,676
|
|
2,717,595
|
||
|
GAS UTILITIES—0.5%
|
||
|
Parsley Energy, Inc. (a)
|
25,588
|
545,792
|
|
HEALTH CARE EQUIPMENT & SUPPLIES—7.8%
|
||
|
Accuray Incorporated (a)(b)
|
180,164
|
1,307,991
|
|
BioTelemetry, Inc. (a)
|
149,276
|
1,001,642
|
|
LDR Holding Corporation (a)
|
44,612
|
1,388,771
|
|
Natus Medical, Inc. (a)
|
69,682
|
2,056,316
|
|
Spectranetics Corporation (The) (a)
|
34,787
|
924,291
|
|
ZELTIQ Aesthetics, Inc. (a)
|
58,697
|
1,328,313
|
|
8,007,324
|
||
|
HEALTH CARE PROVIDERS & SERVICES—0.8%
|
||
|
Catamaran Corporation (a)
|
18,417
|
776,277
|
|
HOTELS, RESTAURANTS & LEISURE—0.9%
|
||
|
National CineMedia, Inc.
|
63,678
|
923,968
|
|
HOUSEHOLD DURABLES—0.9%
|
||
|
Standard Pacific Corporation (a)
|
124,847
|
935,104
|
|
INSURANCE—0.7%
|
||
|
United Insurance Holdings Corporation
|
44,780
|
671,700
|
|
IT CONSULTING & SERVICES—3.5%
|
||
|
Alliance Data Systems Corporation (a)
|
14,512
|
3,602,894
|
|
MACHINERY—4.1%
|
||
|
H&E Equipment Services, Inc.
|
41,546
|
1,673,473
|
|
Proto Labs, Inc. (a)
|
36,085
|
2,489,865
|
|
4,163,338
|
||
|
MEDIA—6.7%
|
||
|
Cinemark Holdings, Inc.
|
41,016
|
1,396,185
|
|
Entravision Communications Corporation, Class A
|
269,612
|
1,067,663
|
|
IMAX Corporation (a)
|
91,266
|
2,506,164
|
|
Regal Entertainment Group (b)
|
96,995
|
1,928,261
|
|
6,898,273
|
||
|
METALS & MINING—1.0%
|
||
|
U.S. Silica Holdings, Inc.
|
16,121
|
1,007,724
|
|
OIL & GAS—4.7%
|
||
|
Bonanza Creek Energy, Inc. (a)
|
30,654
|
1,744,212
|
|
Callon Petroleum Company (a)
|
186,856
|
1,646,201
|
|
Carrizo Oil & Gas, Inc. (a)
|
8,140
|
438,095
|
|
Rex Energy Corporation (a)
|
75,995
|
962,857
|
|
4,791,365
|
||
|
PHARMACEUTICALS—2.5%
|
||
|
IGI Laboratories, Inc. (a)
|
56,723
|
528,659
|
|
Orexigen Therapeutics, Inc. (a)(b)
|
178,255
|
759,366
|
|
Tetraphase Pharmaceuticals, Inc. (a)
|
62,980
|
1,256,451
|
|
2,544,476
|
||
|
REAL ESTATE—11.1%
|
||
|
Brandywine Realty Trust
|
58,744
|
826,528
|
|
DuPont Fabros Technology, Inc.
|
51,777
|
1,400,050
|
|
Education Realty Trust, Inc.
|
149,177
|
1,533,539
|
|
EPR Properties
|
97,603
|
4,946,520
|
|
Hersha Hospitality Trust
|
294,580
|
1,876,475
|
|
Physicians Realty Trust
|
36,094
|
495,210
|
|
Terreno Realty Corporation
|
12,236
|
230,404
|
|
11,308,726
|
||
|
ROAD & RAIL—1.9%
|
||
|
ArcBest Corporation
|
14,489
|
540,440
|
|
Saia, Inc. (a)
|
24,832
|
1,230,674
|
|
Swift Transportation Company (a)
|
8,648
|
181,435
|
|
1,952,549
|
||
|
SEMICONDUCTOR EQUIPMENT & PRODUCTS—2.6%
|
||
|
Integrated Device Technology, Inc. (a)
|
70,600
|
1,126,070
|
|
Microsemi Corporation (a)
|
62,263
|
1,582,103
|
|
2,708,173
|
||
|
SOFTWARE & SERVICES—6.8%
|
||
|
Actua Corporation (a)
|
139,631
|
2,236,889
|
|
Ambarella, Inc. (a)(b)
|
67,600
|
2,952,092
|
|
Verint Systems, Inc. (a)
|
31,909
|
1,774,459
|
|
6,963,440
|
||
|
SPECIALTY RETAIL—3.3%
|
||
|
Asbury Automotive Group, Inc. (a)
|
42,010
|
2,706,284
|
|
Restoration Hardware Holdings, Inc. (a)
|
8,374
|
666,152
|
|
3,372,436
|
||
|
TEXTILES & APPAREL—0.5%
|
||
|
Kate Spade & Company (a)
|
21,491
|
563,709
|
|
TRADING COMPANIES & DISTRIBUTORS—1.5%
|
||
|
Air Lease Corporation
|
46,597
|
1,514,402
|
|
TOTAL COMMON STOCK
|
||
|
(Cost $83,684,648)
|
100,439,119
|
|
|
SHORT TERM INVESTMENTS—0.6%
|
||
|
Par Value
|
Value
|
|
|
State Street Bank & Trust Co., Repurchase Agreement 0.0%, 10/01/14, (Dated 09/30/14), Collateralized by $425,000 par U.S. Treasury Note-8.0% due 11/15/2021, Market Value $600,977, Repurchase Proceeds $588,561 (Cost $588,561)
|
$588,561
|
588,561
|
|
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED)—98.8%
|
||
|
(Cost $84,273,209)
|
101,027,680
|
|
|
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—9.7%
|
||
|
Money Market—9.7%
|
||
|
Western Asset Institutional Cash Reserves—Inst.
(Cost $9,967,763)
|
9,967,763
|
|
|
TOTAL INVESTMENTS—108.5%
(Cost $94,240,972)
|
110,995,443
|
|
|
OTHER ASSETS & LIABILITIES (NET)—(8.5)%
|
(8,776,487)
|
|
|
NET ASSETS—100%
|
$102,218,956
|
|
(a)
|
Non-income producing security
|
|
(b)
|
All or a portion of this security was out on loan.
|
|
(c)
|
ADR—American Depositary Receipts
|
|
The percentage of each investment category is calculated as a percentage of net assets.
|
PEAR TREE QUALITY FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—99.3%
|
Shares
|
Value
|
|
|
AEROSPACE & DEFENSE—1.3%
|
||
|
Precision Castparts Corp.
|
2,564
|
$ 607,360
|
|
United Technologies Corporation
|
9,815
|
1,036,464
|
|
1,643,824
|
||
|
BEVERAGES—3.0%
|
||
|
Coca-Cola Company (The)
|
90,141
|
3,845,415
|
|
BIOTECHNOLOGY—0.9%
|
||
|
Biogen Idec Inc. (a)
|
3,368
|
1,114,168
|
|
CHEMICALS—0.9%
|
||
|
Monsanto Company
|
9,946
|
1,119,025
|
|
COMMUNICATIONS EQUIPMENT—2.1%
|
||
|
QUALCOMM Incorporated
|
36,334
|
2,716,693
|
|
COMPUTERS & PERIPHERALS—9.6%
|
||
|
Apple, Inc.
|
52,983
|
5,338,037
|
|
EMC Corporation
|
48,672
|
1,424,143
|
|
International Business Machines
|
26,154
|
4,964,814
|
|
NetApp, Inc.
|
5,402
|
232,070
|
|
Teradata Corporation (a)
|
8,919
|
373,884
|
|
12,332,948
|
||
|
DISTRIBUTORS—0.3%
|
||
|
Genuine Parts Company
|
3,880
|
340,315
|
|
ELECTRICAL INSTRUMENTS—0.8%
|
||
|
Emerson Electric Co.
|
17,124
|
1,071,620
|
|
ELECTRONIC EQUIPMENT & INSTRUMENTS—0.2%
|
||
|
Amphenol Corporation
|
2,160
|
215,698
|
|
FOOD PRODUCTS—2.5%
|
||
|
Nestle, S.A. (c)
|
23,760
|
1,749,449
|
|
Unilever N.V. (c)
|
20,265
|
804,115
|
|
Unilever plc (c)
|
15,397
|
645,134
|
|
3,198,698
|
||
|
FOOD STAPLES & DRUG RETAILING—5.3%
|
||
|
Costco Wholesale Corporation
|
7,032
|
881,250
|
|
General Mills, Inc.
|
10,055
|
507,275
|
|
PepsiCo, Inc.
|
26,093
|
2,428,997
|
|
SYSCO Corporation
|
16,322
|
619,420
|
|
Wal-Mart Stores, Inc.
|
31,004
|
2,370,876
|
|
6,807,818
|
||
|
GAS UTILITIES—0.3%
|
||
|
Honeywell International Inc.
|
4,060
|
378,067
|
|
HEALTH CARE EQUIPMENT & SERVICES—8.6%
|
||
|
Baxter International, Inc.
|
11,930
|
856,216
|
|
Becton, Dickinson and Company
|
5,389
|
613,322
|
|
Covidien plc
|
10,136
|
876,865
|
|
Express Scripts Holding Company (a)
|
46,541
|
3,287,191
|
|
Humana Inc.
|
3,958
|
515,688
|
|
Medtronic, Inc.
|
21,634
|
1,340,226
|
|
Stryker Corporation
|
8,418
|
679,754
|
|
UnitedHealth Group, Inc.
|
23,229
|
2,003,501
|
|
Zimmer Holdings, Inc.
|
5,069
|
509,688
|
|
St. Jude Medical, Inc.
|
6,548
|
393,731
|
|
11,076,182
|
||
|
HEALTH CARE PROVIDERS & SERVICES—0.6%
|
||
|
WellPoint, Inc.
|
6,284
|
751,692
|
|
HOTELS, RESTAURANTS & LEISURE—1.8%
|
||
|
Compass Group PLC (a)(c)
|
15,396
|
247,414
|
|
McDonald’s Corporation
|
17,605
|
1,669,130
|
|
Starbucks Corporation
|
5,567
|
420,086
|
|
2,336,630
|
||
|
HOUSEHOLD PRODUCTS—6.0%
|
||
|
Church & Dwight Co., Inc.
|
3,119
|
218,829
|
|
Colgate-Palmolive Company
|
22,727
|
1,482,255
|
|
Kimberly-Clark Corporation
|
4,309
|
463,519
|
|
Procter & Gamble Company
|
56,388
|
4,721,931
|
|
Reckitt Benckiser Group plc
|
9,065
|
792,708
|
|
7,679,242
|
||
|
INDUSTRIAL CONGLOMERATES—1.7%
|
||
|
3M Company
|
15,136
|
2,144,469
|
|
IT CONSULTING & SERVICES—1.5%
|
||
|
Accenture plc
|
14,118
|
1,148,076
|
|
Cognizant Technology Solutions Corporation (a)
|
11,088
|
496,410
|
|
Paychex, Inc.
|
6,087
|
269,045
|
|
1,913,531
|
||
|
LEISURE EQUIPMENT & PRODUCTS—0.2%
|
||
|
Mattel, Inc.
|
7,914
|
242,564
|
|
MACHINERY—1.5%
|
||
|
Danaher Corporation
|
13,348
|
1,014,181
|
|
Dover Corporation
|
3,001
|
241,070
|
|
Illinois Tool Works, Inc.
|
8,654
|
730,571
|
|
1,985,822
|
||
|
OIL & GAS—5.3%
|
||
|
Chevron Corporation
|
38,706
|
4,618,400
|
|
Exxon Mobil Corporation
|
20,198
|
1,899,622
|
|
Rockwell Automation, Inc.
|
3,028
|
332,716
|
|
6,850,738
|
||
|
PHARMACEUTICALS & BIOTECHNOLOGY—13.4%
|
||
|
Abbott Laboratories
|
37,600
|
1,563,784
|
|
Allergan, Inc.
|
3,881
|
691,555
|
|
Amgen, Inc.
|
13,042
|
1,831,880
|
|
AstraZeneca plc (c)
|
35,731
|
2,552,622
|
|
Bristol-Myers Squibb Company
|
13,596
|
695,843
|
|
Eli Lilly and Company
|
18,736
|
1,215,030
|
|
GlaxoSmithKline plc (c)
|
16,137
|
741,818
|
|
Johnson & Johnson
|
55,801
|
5,947,828
|
|
Novartis AG (c)
|
21,251
|
2,000,357
|
|
17,240,717
|
||
|
RETAILING—0.5%
|
||
|
TJX Companies, Inc. (The)
|
11,419
|
675,662
|
|
SEMICONDUCTOR EQUIPMENTS & PRODUCTS—0.4%
|
||
|
Analog Devices, Inc.
|
5,169
|
255,814
|
|
Xilinx, Inc.
|
5,002
|
211,835
|
|
467,649
|
||
|
SOFTWARE & SERVICES—20.6%
|
||
|
Adobe Systems Incorporated (a)
|
7,258
|
502,181
|
|
Cisco Systems, Inc.
|
147,203
|
3,705,099
|
|
eBay, Inc. (a)
|
22,707
|
1,285,897
|
|
Google, Inc. (a)
|
6,021
|
3,542,817
|
|
Google, Inc. C (a)
|
4,450
|
2,569,252
|
|
Intuit Inc.
|
5,298
|
464,370
|
|
MasterCard Incorporated
|
13,650
|
1,009,008
|
|
Microsoft Corporation
|
152,917
|
7,089,232
|
|
Oracle Corporation
|
144,825
|
5,543,901
|
|
SAP AG (b)(c)
|
9,004
|
649,729
|
|
26,361,486
|
||
|
SPECIALTY RETAIL—0.9%
|
||
|
Bed Bath & Beyond Inc. (a)
|
16,928
|
1,114,370
|
|
TEXTILES & APPAREL—1.5%
|
||
|
Coach, Inc.
|
4,994
|
177,836
|
|
Nike, Inc. B
|
14,351
|
1,280,109
|
|
V.F. Corporation
|
6,930
|
457,588
|
|
1,915,533
|
||
|
TOBACCO—6.2%
|
||
|
British American Tobacco p.l.c. (c)
|
11,918
|
1,347,687
|
|
Philip Morris International, Inc.
|
75,151
|
6,267,594
|
|
Reynolds American, Inc.
|
5,951
|
351,109
|
|
7,966,390
|
||
|
TRADING COMPANIES & DISTRIBUTION—0.3%
|
||
|
W.W. Grainger, Inc.
|
1,382
|
347,781
|
|
WIRELESS TELECOMMUNICATIONS—1.1%
|
||
|
KDDI Corporation (a)(c)
|
43,613
|
653,323
|
|
NTT DOCOMO, Inc. (a)(b)(c)
|
44,782
|
749,651
|
|
1,402,974
|
||
|
TOTAL COMMON STOCK
|
127,257,721
|
|
|
(Cost $109,543,374)
|
||
|
Short Term Investments—0.6%
|
||
|
Par Value
|
Value
|
|
|
State Street Bank & Trust Co., Repurchase Agreement
.0%, 10/01/14, (Dated 09/30/14), Collateralized by 505,000 par U.S. Treasury Note-8.0% due 11/15/2021, Market Value $714,102, Repurchase Proceeds $698,983 (Cost $698,983)
|
$698,983
|
698,983
|
|
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED)—100%
|
||
|
(Cost $110,242,357)
|
127,956,704
|
|
|
Money Market—0.7%
|
||
|
Western Asset Institutional Cash Reserves—Inst.
(Cost $889,100)
|
889,100
|
889,100
|
|
TOTAL INVESTMENTS 100.6%
|
$128,845,804
|
|
|
(Cost $111,131,457)
|
||
|
OTHER ASSETS & LIABILITIES (NET)—(0.6%)
|
(748,333)
|
|
|
NET ASSETS—100%
|
$128,097,471
|
|
(a)
|
Non-Income producing security
|
|
(b)
|
All or a portion of this security is out on loan
|
|
(c)
|
ADR—American Depositary Receipts
|
PEAR TREE PANAGORA DYNAMIC EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—71.4%
|
Shares
|
Value
|
|
|
BRAZIL—4.7%
|
||
|
Ambev SA (c)
|
76,683
|
$ 502,274
|
|
Banco do Brasil S.A.
|
55,412
|
572,447
|
|
Cetip S.A. Mercados Organizados
|
54,600
|
675,533
|
|
CIA Paranaense de Energia (c)
|
29,309
|
400,654
|
|
Companhia Brasileira de Distribuicao SP (c)
|
17,093
|
745,426
|
|
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes
|
161,100
|
812,407
|
|
Energias do Brasil S.A.
|
80,700
|
329,522
|
|
JBS S.A.
|
219,300
|
819,353
|
|
KLABIN S.A.
|
110,100
|
532,292
|
|
Petroleo Brasileiro S.A.
|
65,183
|
459,129
|
|
Petroleo Brasileiro S.A. (c)
|
50,474
|
751,558
|
|
Sao Martinho S.A.
|
15,318
|
245,814
|
|
Vale S.A.
|
23,853
|
261,516
|
|
7,107,925
|
||
|
CHINA—9.3%
|
||
|
Agricultural Bank of China, Class H
|
673,000
|
298,150
|
|
Bank of China Ltd., H
|
3,550,392
|
1,586,599
|
|
China BlueChemical Ltd. H
|
536,000
|
232,625
|
|
China Construction Bank Corporation
|
2,859,422
|
2,006,948
|
|
China Life Insurance Co,. Limited
|
69,000
|
191,495
|
|
China Petroleum & Chemical Corporation
|
1,317,810
|
1,154,046
|
|
China Power International Development Ltd.
|
550,000
|
254,284
|
|
China Shenhua Energy Co., Ltd.
|
168,605
|
470,099
|
|
China Yuchai International Ltd.
|
11,788
|
218,550
|
|
Dah Sing Financial Holdings Ltd.
|
19,200
|
116,833
|
|
Datang International Power Generation Co., Ltd.
|
842,000
|
441,334
|
|
Dongfeng Motor Group Company Limited
|
564,881
|
928,259
|
|
Guangzhou Automobile Group Co Ltd H Shares
|
366,000
|
353,512
|
|
Guangzhou R&F Properties Co., Ltd. H
|
79,200
|
80,067
|
|
Huaneng Power International Inc. H
|
422,000
|
460,860
|
|
Industrial & Commercial Bank of China Ltd.
|
1,639,911
|
1,020,067
|
|
Jiangsu Expressway Co. Ltd.—H
|
156,000
|
163,736
|
|
NetDragon Websoft Inc.
|
52,500
|
86,272
|
|
Perfect World Co., Ltd. (c)
|
23,530
|
463,306
|
|
PetroChina Company Limited
|
935,778
|
1,199,105
|
|
Ping An Insurance Group H Share
|
109,000
|
819,786
|
|
Shanghai Electric Group Company Ltd. H
|
570,000
|
302,436
|
|
Sinotrans Ltd. H Shares
|
1,297,000
|
942,064
|
|
Zhejiang Expressway Co., Ltd.
|
434,000
|
440,989
|
|
14,231,422
|
||
|
COLOMBIA—0.2%
|
||
|
Ecopetrol S.A. (b)(c)
|
7,108
|
222,267
|
|
CZECH REPUBLIC—0.4%
|
||
|
CEZ A.S.
|
17,361
|
527,620
|
|
HONG KONG—6.3%
|
||
|
ANTA Sports Products, Ltd.
|
269,000
|
545,278
|
|
Central China Real Estate Ltd.
|
252,371
|
59,477
|
|
Champion Real Estate Investment Trust
|
504,000
|
209,650
|
|
China Mobile Limited
|
215,779
|
2,491,270
|
|
China Resources Cement Holdings Limited
|
630,000
|
431,632
|
|
Chongqing Rural Commercial Bank Co.
|
838,687
|
380,193
|
|
CNOOC Limited
|
816,218
|
1,398,039
|
|
Dongyue Group Ltd. (b)
|
410,000
|
153,652
|
|
GOME Electrical Appliances Holding Limited
|
3,955,000
|
646,862
|
|
KWG Property Holding Limited
|
568,919
|
400,774
|
|
Shanghai Industrial Holdings Limited
|
125,000
|
370,254
|
|
Soho China Limited
|
664,979
|
481,288
|
|
Tencent Holdings Limited
|
136,000
|
2,019,433
|
|
9,587,802
|
||
|
HUNGARY—0.4%
|
||
|
Richter Gedeon Nyrt
|
40,651
|
635,845
|
|
INDIA—6.0%
|
||
|
Apollo Tyres Ltd.
|
226,614
|
745,595
|
|
Bajaj Holdings & Investment Limited
|
8,740
|
197,273
|
|
Bank of Baroda
|
16,624
|
242,187
|
|
Bharat Petroleum Corporation Ltd.
|
38,113
|
405,969
|
|
Cairn India Ltd.
|
129,574
|
653,115
|
|
Chambal Fertilizers & Chemicals Ltd.
|
128,923
|
122,953
|
|
Housing Development Finance Corp Ltd.
|
18,189
|
310,267
|
|
Indiabulls Housing Finance Limited
|
158,659
|
1,040,429
|
|
Infosys Technologies Ltd. (b)(c)
|
6,102
|
369,110
|
|
Oil and Natural Gas Corp. Limited
|
66,101
|
436,196
|
|
Oil India Limited
|
16,727
|
164,941
|
|
Power Finance Corporation Limited
|
146,519
|
555,140
|
|
Reliance Industries Ltd.
|
11,098
|
169,633
|
|
Rural Electrification Corporation Limited
|
202,813
|
815,882
|
|
Sesa Sterlite Ltd.
|
230,598
|
1,018,574
|
|
Tata Consultancy Services Ltd.
|
3,299
|
146,198
|
|
Tata Steel Limited
|
113,839
|
843,470
|
|
United Phosphorus Limited
|
161,084
|
885,753
|
|
9,122,685
|
||
|
INDONESIA—2.5%
|
||
|
PT Adaro Energy Tbk
|
2,830,200
|
272,916
|
|
PT Bank Bukopin Tbk
|
909,600
|
53,374
|
|
PT Bank Negara Indonesia (Persero) Tbk
|
1,258,800
|
570,773
|
|
PT Bank Rakyat Indonesia Tbk
|
818,200
|
700,019
|
|
PT Matahari Putra Prima Tbk
|
733,200
|
189,543
|
|
PT PP London Sumatra Indonesia Tbk
|
2,678,440
|
417,648
|
|
PT Telekomunikasi Indonesia Persero Tbk
|
5,398,090
|
1,291,377
|
|
PT United Tractors Tbk
|
159,000
|
259,672
|
|
3,755,322
|
||
|
MALAYSIA—2.3%
|
||
|
British American Tobacco (Malaysia) Berhad
|
21,344
|
458,696
|
|
DiGi.Com Berhad
|
351,000
|
625,926
|
|
JCY International Berhad
|
341,400
|
66,084
|
|
Lafarge Malaysia Berhad
|
33,880
|
106,375
|
|
Malaysia Building Society Berhad
|
437,112
|
326,452
|
|
Petronas Chemicals Group Berhad
|
174,200
|
331,354
|
|
Telekom Malaysia Berhad
|
466,678
|
938,904
|
|
UMW Holdings Berhad
|
179,293
|
670,060
|
|
3,523,851
|
||
|
MEXICO—1.8%
|
||
|
America Movil S.A.B. de C.V., Series L
|
934,370
|
1,177,995
|
|
Controladora Comercial Mexicana S.A. de C.V.
|
29,400
|
110,146
|
|
Fomento Economico Mexicano S.A.B. (c)
|
1,125
|
103,556
|
|
GRUMA, S.A.B. de C.V., Series B (a)
|
75,307
|
806,421
|
|
Grupo Aeroportuario del Pacifico S.A.B. (c)
|
5,600
|
377,664
|
|
Grupo Financiero Banorte SAB de C.V.
|
11,100
|
71,095
|
|
Grupo Televisa S.A.B. (c)
|
3,324
|
112,617
|
|
2,759,494
|
||
|
PHILIPPINES—0.4%
|
||
|
Aboitiz Equity Ventures, Inc.
|
46,340
|
55,657
|
|
Alliance Global Group, Inc.
|
588,600
|
341,008
|
|
Universal Robina Corporation
|
47,920
|
199,678
|
|
596,343
|
||
|
POLAND—1.5%
|
||
|
Asseco Poland S.A.
|
6,825
|
96,018
|
|
KGHM Polska Miedz S.A.
|
25,074
|
957,586
|
|
PGE S.A.
|
132,280
|
837,445
|
|
Tauron Polska Energia S.A.
|
233,484
|
378,525
|
|
2,269,574
|
||
|
QATAR—0.6%
|
||
|
Commercial Bank of Qatar Q.S.C.
|
15,215
|
293,283
|
|
Doha Bank Q.S.C.
|
22,153
|
352,808
|
|
Ooredoo Q.S.C.
|
2,453
|
89,246
|
|
Qatar Electricity & Water Company Q.S.C.
|
1,095
|
57,128
|
|
Qatar National Bank SAQ
|
1,485
|
82,694
|
|
875,159
|
||
|
RUSSIA—3.0%
|
||
|
Gazprom (c)
|
180,222
|
1,268,763
|
|
LUKoil (c)
|
25,174
|
1,283,874
|
|
Mobile TeleSystems (c)
|
29,771
|
444,779
|
|
Norilsk Nickel Mining and Metallurgical Co. (c)
|
26,342
|
491,278
|
|
PhosAgro (d)
|
9,427
|
105,488
|
|
Severstal (b)(d)
|
96,989
|
967,950
|
|
Sistema JSFC (Reg S) (b)(d)
|
8,812
|
60,803
|
|
4,622,935
|
||
|
SINGAPORE—0.8%
|
||
|
ComfortDelGro Corporation Limited
|
189,000
|
355,597
|
|
DBS Group Holdings Ltd.
|
64,000
|
924,177
|
|
1,279,774
|
||
|
SOUTH AFRICA—6.9%
|
||
|
African Rainbow Minerals Limited
|
23,435
|
296,964
|
|
Barloworld Limited
|
42,061
|
344,091
|
|
Bidvest Group Limited
|
30,351
|
767,163
|
|
Coronation Fund Managers Ltd
|
34,953
|
298,771
|
|
FirstRand Limited
|
311,791
|
1,186,278
|
|
Investec Ltd.
|
37,239
|
312,515
|
|
Liberty Holdings Limited
|
41,956
|
457,223
|
|
Mediclinic International, Ltd.
|
53,242
|
433,159
|
|
Mondi Limited
|
17,427
|
285,256
|
|
MTN Group Limited
|
29,759
|
627,237
|
|
Naspers Limited N Shs
|
9,935
|
1,093,931
|
|
Nedbank Group Ltd
|
40,013
|
774,568
|
|
Netcare Limited
|
153,498
|
429,121
|
|
PPC, Ltd.
|
34,941
|
91,347
|
|
Reunert Limited
|
26,510
|
139,431
|
|
RMB Holdings Ltd.
|
161,113
|
807,916
|
|
Sasol Ltd.
|
26,039
|
1,412,490
|
|
Steinoff International Holdings Limited
|
146,933
|
702,763
|
|
Tongaat Hulett Limited
|
7,879
|
108,698
|
|
10,568,922
|
||
|
SOUTH KOREA—8.8%
|
||
|
Coway Co., Ltd.
|
8,969
|
716,500
|
|
Daishin Securities Company
|
9,781
|
104,275
|
|
Halla Climate Control Corp.
|
7,334
|
355,841
|
|
Hyosung Corporation
|
9,741
|
697,863
|
|
Hyundai Mobis Co.,Ltd.
|
443
|
107,890
|
|
Hyundai Motor Company Ltd.
|
2,501
|
451,495
|
|
Industrial Bank of Korea
|
45,960
|
694,681
|
|
Kia Motors Corporation
|
8,599
|
437,589
|
|
KT Corporation
|
10,020
|
325,692
|
|
KT&G Corporation
|
12,900
|
1,155,224
|
|
LG Display Co., Ltd. (a)
|
33,423
|
1,076,884
|
|
LG Electronics Inc.
|
8,904
|
554,364
|
|
Meritz Securities Co., Ltd.
|
49,888
|
186,977
|
|
Naver Corp.
|
247
|
188,893
|
|
POSCO
|
605
|
188,337
|
|
Samsung Electronics Company, Ltd.
|
3,162
|
3,547,792
|
|
Shinhan Financial Group Co., Ltd.
|
3,798
|
174,918
|
|
SK Hynix Inc. (a)
|
16,972
|
751,899
|
|
SK Networks Col, Ltd. (a)
|
50,205
|
504,310
|
|
SK Telecom Co., Ltd. (c)
|
17,436
|
529,008
|
|
Sungwoo Hitech Co., Ltd.
|
41,550
|
673,305
|
|
13,423,737
|
||
|
TAIWAN—11.3%
|
||
|
ASUSTeK Computer, Inc.
|
111,488
|
1,062,855
|
|
Chailease Holding Co., Ltd.
|
352,920
|
857,371
|
|
Chicony Electronics Co., Ltd.
|
117,055
|
350,170
|
|
Chunghwa Telecom Co., Ltd.
|
212,600
|
640,886
|
|
Farglory Land Development Co., Ltd.
|
143,302
|
168,884
|
|
Fubon Financial Holding Co., Ltd.
|
681,000
|
1,045,471
|
|
Hon Hai Precision Industry Co., Ltd.
|
372,074
|
1,174,217
|
|
Inventec Corporation
|
716,000
|
466,043
|
|
Kings Town Bank
|
90,000
|
99,558
|
|
Lite-On Technology Corp.
|
400,990
|
578,031
|
|
MediaTek, Inc.
|
44,000
|
651,622
|
|
Pegatron Corporation
|
484,416
|
891,773
|
|
Powertech Technology, Inc.
|
515,000
|
931,146
|
|
President Chain Store Corp.
|
134,915
|
966,862
|
|
Quanta Computer, Inc.
|
330,000
|
837,489
|
|
Radiant Opto-Electronics Corporation
|
202,409
|
801,798
|
|
Realtek Semiconductor Corporation
|
136,000
|
482,848
|
|
Simplo Technology Co., Ltd.
|
59,000
|
286,083
|
|
Taishin Financial Holding Co., Ltd.
|
900,000
|
421,605
|
|
Taiwan Semiconductor Manufacturing Co., Ltd.
|
603,270
|
2,379,803
|
|
TECO Electric & Machinery Co., Ltd.
|
602,983
|
619,445
|
|
United Microelectronics Corporation
|
2,365,401
|
979,768
|
|
Vanguard International Semiconductor Corp.
|
370,000
|
542,481
|
|
17,236,209
|
||
|
THAILAND—1.7%
|
||
|
Delta Electronics PCL
|
104,500
|
199,815
|
|
Delta Electronics PCL (e)
|
52,400
|
100,194
|
|
Electricity Generating PCL
|
52,679
|
268,066
|
|
Kiatnakin Bank PCL
|
169,100
|
220,338
|
|
Krung Thai Bank PCL
|
1,329,946
|
972,081
|
|
PTT Exploration & Production PCL (e)
|
70,100
|
345,906
|
|
PTT PCL (e)
|
19,800
|
219,831
|
|
Thanachart Capital PCL
|
302,000
|
346,939
|
|
2,673,170
|
||
|
TURKEY—1.9%
|
||
|
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.
|
194,493
|
203,001
|
|
Enka naat ve Sanayi A.S¸.
|
95,128
|
216,935
|
|
Eregli Demir ve Celik Fabrikalari T.A.S.
|
496,376
|
920,807
|
|
Tofas Turk Otomobil Fabrikasi A.S.
|
117,882
|
661,721
|
|
Turkiye Is Bankasi A.S.
|
394,211
|
874,776
|
|
2,877,240
|
||
|
UNITED ARAB EMERATES—0.6%
|
||
|
Abu Dhabi Commercial Bank
|
115,564
|
266,503
|
|
Aldar Properties PJSC
|
246,311
|
262,886
|
|
First Gulf Bank PJSC
|
88,320
|
450,876
|
|
980,265
|
||
|
TOTAL COMMON STOCK
|
||
|
(Cost $106,191,526)
|
108,877,561
|
|
|
Preferred Stock—1.8%
|
||
|
BRAZIL—1.5%
|
||
|
Banco Bradesco S.A.
|
35,889
|
510,565
|
|
Cia Energetica de Sao Paulo
|
39,200
|
419,051
|
|
Itau Unibanco Holding S.A.
|
53,370
|
738,114
|
|
Metalurgica Gerdau S.A.
|
55,900
|
322,983
|
|
Vale S.A., Class A
|
39,271
|
381,325
|
|
2,372,038
|
||
|
SOUTH KOREA—0.3%
|
||
|
Samsung Electronics Co. Ltd.
|
590
|
502,080
|
|
TOTAL PREFERRED STOCK
|
||
|
(Cost $3,806,813)
|
2,874,118
|
|
|
Exchange Traded Funds—0.3%
|
||
|
United States—0.3%
|
||
|
iShares MSCI Emerging Markets Index Fund
(Cost $409,528)
|
9,136
|
379,692
|
|
Mutual Funds—26.0%
|
||
|
United States—26.0%
|
||
|
Pear Tree PanAgora Risk Parity Emerging Markets Fund*
(Cost $37,979,929)
|
3,723,898
|
39,771,232
|
|
Short Term Investments—0.3%
|
||
|
Par Value
|
Value
|
|
|
State Street Bank & Trust Co., Repurchase Agreement
.0%, 10/01/14, (Dated 09/30/14), Collateralized by 375,000 par U.S. Treasury Note-8.0% due 11/15/2021, Market Value $530,274, Repurchase Proceeds $517,989 (Cost $517,989)
|
$517,989
|
517,989
|
|
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED)
|
||
|
(Cost $148,905,785)
|
152,420,592
|
|
|
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—0.7%
|
||
|
Money Market—0.7%
|
||
|
Western Asset Institutional Cash Reserves—Inst.
(Cost $1,052,608)
|
1,052,608
|
1,052,608
|
|
TOTAL INVESTMENTS—100.5%
|
||
|
(Cost $149,958,393)
|
153,473,200
|
|
|
OTHER ASSETS & LIABILITIES (Net)—(0.5%)
|
(761,199)
|
|
|
NET ASSETS—100%
|
$152,712,001
|
|
*
|
Investment in affiliated security. This Fund is advised by Pear Tree Advisors, Inc. which also serves as advisor to Pear Tree PanAgora Dynamic Emerging Markets Fund.
|
|
(a)
|
Non-income producing security.
|
|
(b)
|
All or a portion of this security was out on loan.
|
|
(c)
|
ADR—American Depositary Receipts
|
|
(d)
|
GDR—Global Depositary Receipts
|
|
(e)
|
NVDR—Non-Voting Depository Receipts
|
|
The percentage of each investment category is calculated as a percentage of net assets.
|
|
SECTOR ALLOCATIONS
(as a percentage of Total Net Assets)
|
|
|
Financials
|
18.3%
|
|
Information Technology
|
14.4%
|
|
Energy
|
8.0%
|
|
Consumer Discretionary
|
7.0%
|
|
Materials
|
7.0%
|
|
Telecommunication Services
|
6.1%
|
|
Consumer Staples
|
4.3%
|
|
Industrials
|
4.2%
|
|
Utilities
|
2.9%
|
|
Health Care
|
1.0%
|
|
Exchange Traded Funds
|
0.3%
|
|
Mutual Funds
|
26.0%
|
|
Cash and Other Assets (Net)
|
0.5%
|
PEAR TREE PANAGORA RISK PARITY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—92.4%
|
Shares
|
Value
|
|
|
BRAZIL—3.2%
|
||
|
América Latina Loġística
|
10,500
|
$ 27,268
|
|
Banco do Brasil S.A.
|
2,400
|
24,794
|
|
Banco Santander Brasil S.A. (c)
|
2,823
|
18,463
|
|
BR Properties S.A.
|
3,200
|
16,986
|
|
BRF S.A.
|
1,300
|
30,915
|
|
CCR S.A.
|
4,200
|
28,777
|
|
Cetip S.A. Mercados Organizados
|
2,200
|
27,219
|
|
CIA Paranaense de Energia (c)
|
1,619
|
22,132
|
|
Cielo S.A.
|
4,200
|
68,599
|
|
Companhia Brasileira de Distribuicao SP (c)
|
536
|
23,375
|
|
Companhia Energetica de Minas Gerais (c)
|
3,801
|
23,680
|
|
Companhia Siderurgica Nacl (b)(c)
|
4,201
|
14,914
|
|
Cosan S.A. Industria e Comercio
|
2,300
|
36,947
|
|
CPFL Energia S.A. (c)
|
686
|
10,667
|
|
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes
|
10,300
|
51,942
|
|
EcoRodovias Infraestrutura e Loġística S.A.
|
5,500
|
27,085
|
|
Embraer S.A. (c)
|
2,049
|
80,362
|
|
Gerdau S.A. (c)
|
1,224
|
5,875
|
|
Hypermarcas S.A. (a)
|
2,800
|
20,100
|
|
Kroton Educacional S.A.
|
4,892
|
30,722
|
|
Localiza Rent a Car S.A.
|
2,000
|
28,983
|
|
Lojas Americanas S.A.
|
11,375
|
53,415
|
|
Lojas Renner S.A..
|
1,000
|
29,024
|
|
Natura Cosméticos S.A.
|
1,300
|
19,630
|
|
Odontoprev S.A.
|
21,500
|
78,134
|
|
Petroleo Brasileiro S.A.
|
5,700
|
40,149
|
|
Porto Seguro S.A.
|
2,600
|
30,162
|
|
Qualicorp S.A. (a)
|
6,100
|
60,327
|
|
Raia Drogasil S.A.
|
4,400
|
37,622
|
|
Souza Cruz S.A.
|
2,100
|
16,893
|
|
Telefonica Brasil S.A. (c)
|
3,869
|
76,142
|
|
TIM Participacoes S.A. (c)
|
2,643
|
69,247
|
|
Totvs S.A.
|
4,100
|
62,329
|
|
Transmissora Alianca de Energia Eletrica S.A.
|
6,100
|
48,745
|
|
Ultrapar Participacoes S.A.
|
1,200
|
25,387
|
|
Vale S.A.
|
1,200
|
13,156
|
|
Via Varejo S.A. (a)
|
1,900
|
18,938
|
|
Weg S.A.
|
2,990
|
34,881
|
|
1,333,986
|
||
|
CHILE—5.2%
|
||
|
AES Gener S.A.
|
162,417
|
85,733
|
|
Aguas Andinas S.A.
|
138,946
|
81,015
|
|
Banco de Chile
|
823,845
|
101,475
|
|
Banco de Crédito e Inversiones
|
1,662
|
94,261
|
|
Banco Santander Chile (c)
|
4,438
|
98,035
|
|
CAP S.A.
|
8,628
|
91,519
|
|
Cencosud S.A.
|
25,242
|
74,624
|
|
Colbun S.A.
|
329,877
|
83,620
|
|
Compania Cervecerias Unidas S.A. (b)(c)
|
4,663
|
102,726
|
|
Corpbanca S.A. (c)
|
5,000
|
96,100
|
|
Empresa Nacional de Electricidad S.A. (c)
|
1,685
|
74,073
|
|
Empresa Nacional de Telecomunicaciones S.A.
|
19,694
|
223,303
|
|
Empresas CMPC S.A.
|
53,544
|
126,761
|
|
Empresas Copec S.A.
|
13,338
|
163,796
|
|
Enersis S.A. (c)
|
5,367
|
84,691
|
|
LATAM Airlines Group S.A. (a)
|
13,801
|
158,283
|
|
Quimica y Minera de Chile S.A. (c)
|
4,006
|
104,717
|
|
S.A.C.I. Falabella
|
28,026
|
211,238
|
|
Vina Concha y Toro S.A.
|
44,985
|
87,757
|
|
2,143,727
|
||
|
CHINA—4.3%
|
||
|
Air China Ltd H Shares
|
34,000
|
21,543
|
|
Aluminum Corporation of China Limited H Shares (a)(b)
|
114,000
|
46,393
|
|
Anhui Conch Cement Company Limited H (b)
|
5,000
|
15,905
|
|
Bank of Communications Co., Ltd. H
|
32,000
|
22,377
|
|
BBMG Corporation H
|
30,000
|
20,708
|
|
Beijing Capital International Airport Co., Ltd. H
|
34,000
|
26,009
|
|
Beijing Enterprises Holdings Limited
|
2,500
|
21,459
|
|
Belle International Holdings Limited
|
18,000
|
20,260
|
|
Brilliance China Automotive Holdings, Ltd.
|
8,000
|
13,929
|
|
BYD Co., Ltd. H Shares
|
2,500
|
16,629
|
|
China Agri-Industries Holdings Limited
|
45,000
|
17,096
|
|
China BlueChemical Ltd. H
|
50,000
|
21,700
|
|
China Coal Energy Co., Ltd. (b)
|
39,000
|
22,802
|
|
China Communications Construction Co., Ltd., Class H
|
15,000
|
10,818
|
|
China Communications Services Corporation Ltd. H
|
106,000
|
49,007
|
|
China Construction Bank Corporation
|
37,000
|
25,969
|
|
China International Marine Containers Group Co., Ltd. H
|
8,400
|
17,309
|
|
China Longyuan Power Group H
|
33,000
|
32,214
|
|
China National Building Material Co., Ltd. H
|
16,000
|
14,527
|
|
China Oilfield Services Limited H
|
24,000
|
63,362
|
|
China Petroleum & Chemical Corporation
|
52,000
|
45,538
|
|
China Pharmaceutical Group Limited
|
44,000
|
36,549
|
|
China Shenhua Energy Co., Ltd.
|
9,500
|
26,488
|
|
China Shipping Container Lines Co., Ltd. H (a)
|
42,000
|
11,196
|
|
China Taiping Insurance Holdings Co., Ltd. (a)
|
15,200
|
32,925
|
|
China Telecom Corporation Limited
|
178,000
|
109,116
|
|
CITIC Pacific Ltd. (b)
|
18,000
|
30,182
|
|
Datang International Power Generation Co., Ltd.
|
106,000
|
55,560
|
|
ENN Energy Holdings Ltd.
|
4,000
|
26,169
|
|
Fosun International
|
33,000
|
39,524
|
|
Haitian International Holdings Ltd.
|
16,000
|
36,307
|
|
Huaneng Power International Inc. H
|
42,000
|
45,868
|
|
Industrial & Commercial Bank of China Ltd.
|
64,000
|
39,810
|
|
Inner Mongolia Yitai Coal Co., Ltd., Class B
|
10,000
|
17,020
|
|
Jiangsu Expressway Co. Ltd.—H
|
20,000
|
20,992
|
|
Jiangxi Copper Company Limited
|
5,000
|
8,281
|
|
Kingboard Chemical Holdings, Ltd.
|
12,500
|
24,823
|
|
Kingsoft Corporation Ltd. (b)
|
11,000
|
26,179
|
|
People’s Insurance Co (Group) of China Ltd.
|
69,000
|
28,258
|
|
PetroChina Company Limited (b)(c)
|
279
|
35,854
|
|
Shandong Weigao Group Medical Polymer Co., Ltd.
|
36,000
|
35,745
|
|
Shanghai Electric Group Company Ltd. H
|
38,000
|
20,162
|
|
Shanghai Fosun Pharmaceutical Group Class H
|
12,000
|
38,635
|
|
Shanghai Pharmaceuticals Holding Co., Ltd.
|
27,700
|
67,850
|
|
Shenzhou International Group
|
6,000
|
19,240
|
|
Sino Biopharmaceutical Limited
|
40,000
|
39,974
|
|
Sino-Ocean Land Holdings Ltd.
|
49,000
|
25,747
|
|
Sinopec Shanghai Petrochemical Co., Ltd.
|
101,000
|
33,168
|
|
Sinopharm Group Co., Ltd. H
|
19,600
|
71,560
|
|
Tingyi (Cayman Islands) Holding Corporation
|
10,000
|
26,272
|
|
Tsingtao Brewery Co., Ltd.
|
4,000
|
28,461
|
|
Uni-President China Holdings Limited
|
17,000
|
17,077
|
|
Yanzhou Coal Mining Company Limited (b)
|
62,000
|
50,942
|
|
Zhejiang Expressway Co., Ltd.
|
20,000
|
20,322
|
|
Zhongsheng Group Holdings Ltd.
|
21,500
|
22,926
|
|
Zijin Mining Group Co., Ltd.
|
188,000
|
46,244
|
|
ZTE Corporation H
|
20,800
|
46,235
|
|
1,807,215
|
||
|
COLOMBIA—2.9%
|
||
|
Almacenes Exito S.A.
|
14,166
|
207,757
|
|
Cementos Argos S.A.
|
16,621
|
88,820
|
|
CEMEX Latam Holdings, S.A. (a)
|
15,979
|
142,315
|
|
Corporacion Financiera Colombiana S.A.
|
3,262
|
64,561
|
|
Ecopetrol S.A.
|
111,401
|
174,459
|
|
Grupo Argos S.A.
|
6,827
|
76,681
|
|
Grupo de Inversiones Suramericana SA
|
3,709
|
74,583
|
|
Interconexión Electrica S.A.
|
39,188
|
179,553
|
|
Isagen S.A. E.S.P.
|
147,496
|
200,698
|
|
1,209,427
|
||
|
CZECH REPUBLIC—0.8%
|
||
|
CEZ A.S.
|
4,364
|
132,627
|
|
Komercni Banka A.S.
|
571
|
135,759
|
|
Telefónica Czech Republic, A.S.
|
5,412
|
77,766
|
|
346,152
|
||
|
EGYPT—1.1%
|
||
|
Commercial International Bank
|
20,421
|
143,375
|
|
Global Telecom Holding S.A.E. (a)(d)
|
31,221
|
102,436
|
|
Talaat Moustafa Group (TMG) Holding
|
63,617
|
98,850
|
|
Telecom Egypt SAE
|
64,627
|
123,559
|
|
468,220
|
||
|
GREECE—1.2%
|
||
|
Alpha Bank A.E. (a)
|
35,657
|
27,645
|
|
Folli-Follie S.A.
|
1,701
|
63,254
|
|
Hellenic Telecommunication Organization S.A. (a)
|
5,073
|
66,619
|
|
Jumbo S.A. (a)
|
4,399
|
55,602
|
|
National Bank of Greece (a)
|
11,108
|
32,540
|
|
Opap S.A.
|
6,900
|
90,176
|
|
Public Power Corporation S.A. (a)
|
5,580
|
66,231
|
|
Titan Cement Company S.A.
|
4,109
|
102,731
|
|
504,798
|
||
|
HONG KONG—2.4%
|
||
|
AAC Technologies Holdings Inc. (b)
|
9,000
|
52,273
|
|
ANTA Sports Products, Ltd.
|
12,000
|
24,325
|
|
Beijing Enterprises Water Group Limited
|
48,000
|
32,268
|
|
Biostime International Holdings Ltd. (b)
|
22,000
|
68,848
|
|
China Gas Holdings Ltd.
|
20,000
|
33,175
|
|
China Merchants Holdings International Co., Ltd.
|
6,000
|
18,545
|
|
China Mobile Limited
|
5,000
|
57,727
|
|
China Resources Cement Holdings Limited
|
66,000
|
45,219
|
|
China Resources Enterprise
|
8,000
|
18,936
|
|
China Resources Gas Group Limited
|
12,000
|
32,454
|
|
China Resources Power Holdings Co., Ltd.
|
12,000
|
32,376
|
|
China Unicom (Hong Kong) Limited (c)
|
5,202
|
78,186
|
|
CNOOC Limited (c)
|
169
|
29,159
|
|
Franshion Properties (China) Ltd.
|
182,000
|
44,768
|
|
GCL-Poly Energy Holdings Ltd. (a)
|
70,000
|
25,873
|
|
Golden Eagle Retail Group Ltd.
|
13,000
|
15,118
|
|
Guangdong Investment Limited
|
48,000
|
56,067
|
|
Hanergy Solar Group Limited (a)(b)
|
188,000
|
34,622
|
|
Hengan International Group Co., Ltd.
|
2,500
|
24,550
|
|
Lee & Man Paper Manufacturing Ltd.
|
47,000
|
23,848
|
|
Lenovo Group Limited
|
26,000
|
38,707
|
|
Shanghai Industrial Holdings Limited
|
9,000
|
26,658
|
|
Sihuan Pharmaceutical Holdings Group Ltd.
|
76,000
|
57,355
|
|
Sun Art Retail Group Ltd. (b)
|
33,500
|
37,923
|
|
Tencent Holdings Limited
|
2,000
|
29,698
|
|
Want Want China Holdings Limited
|
29,000
|
36,152
|
|
Yingde Gases Group Co., Ltd.
|
25,500
|
24,006
|
|
998,836
|
||
|
HUNGARY—0.5%
|
||
|
MOL Hungarian Oil an Gas Nyrt.
|
1,311
|
64,182
|
|
OTP Bank Nyrt.
|
4,444
|
75,469
|
|
Richter Gedeon Nyrt
|
3,883
|
60,736
|
|
200,387
|
||
|
INDONESIA—6.9%
|
||
|
PT Adaro Energy Tbk
|
981,700
|
94,665
|
|
PT Astra Agro Lestari Tbk
|
50,400
|
95,133
|
|
PT Astra International Tbk
|
180,400
|
104,376
|
|
PT Bank Central Asia Tbk
|
71,500
|
76,723
|
|
PT Bank Danamon Indonesia Tbk
|
166,400
|
53,327
|
|
PT Bank Mandiri Tbk
|
56,900
|
47,047
|
|
PT Bank Negara Indonesia (Persero) Tbk
|
133,300
|
60,442
|
|
PT Bank Rakyat Indonesia Tbk
|
65,400
|
55,954
|
|
PT Bumi Serpong Damai Tbk
|
306,000
|
38,799
|
|
PT Charoen Pokphand Indonesia Tbk
|
196,800
|
68,480
|
|
PT Global Mediacom Tbk (a)
|
533,800
|
85,207
|
|
PT Gudang Garam Tbk
|
15,000
|
69,768
|
|
PT Indo Tambangraya Megah Tbk
|
56,400
|
120,229
|
|
PT Indocement Tunggal Prakarsa Tbk
|
69,700
|
123,269
|
|
PT Indofood CBP Sukses Makmur Tbk
|
70,800
|
65,948
|
|
PT Indofood Sukses Makmur Tbk
|
120,500
|
69,225
|
|
PT Jasa Marga (Persero) Tbk
|
290,000
|
153,508
|
|
PT Kalbe Farma Tbk
|
1,386,600
|
193,453
|
|
PT Lippo Karawaci Tbk
|
584,600
|
45,098
|
|
PT Matahari Department Store Tbk
|
44,000
|
58,588
|
|
PT Media Nusantara Citra Tbk
|
306,600
|
80,393
|
|
PT Perusahaan Gas Negara (Persero) Tbk
|
351,300
|
172,983
|
|
PT Semen Indonesia (Persero) Tbk
|
102,300
|
129,502
|
|
PT Surya Citra Media Tbk
|
236,200
|
74,146
|
|
PT Tambang Batubara Bukit Asam (Persero) Tbk
|
103,300
|
111,905
|
|
PT Telekomunikasi Indonesia Tbk (c)
|
2,884
|
138,720
|
|
PT Unilever Indonesia Tbk
|
32,200
|
84,034
|
|
PT United Tractors Tbk
|
93,100
|
152,047
|
|
PT XL Axiata Tbk
|
248,900
|
126,646
|
|
Tower Bersama Infrastructure
|
186,900
|
122,708
|
|
2,872,323
|
||
|
MALAYSIA—8.8%
|
||
|
AirAsia Berhad
|
77,200
|
59,538
|
|
Alliance Financial Group Berhad
|
35,600
|
54,152
|
|
AMMB Holdings Berhad
|
14,900
|
31,203
|
|
Astro Malaysia Holdings Berhad
|
74,100
|
75,670
|
|
Axiata Group Berhad
|
50,200
|
107,118
|
|
Berjaya Sports Toto Berhad
|
91,581
|
106,642
|
|
British American Tobacco (Malaysia) Berhad
|
3,700
|
79,515
|
|
Bumi Armada Berhad
|
177,450
|
102,775
|
|
CIMB Group Holdings Berhad
|
19,100
|
40,931
|
|
Dialog Group Berhad
|
151,756
|
79,567
|
|
DiGi.Com Berhad
|
69,100
|
123,224
|
|
Felda Global Ventures Holdings Berhad
|
106,400
|
114,492
|
|
Gamuda Berhad
|
33,700
|
49,515
|
|
Genting Berhad
|
46,900
|
135,675
|
|
Genting Malaysia Berhad
|
93,400
|
119,010
|
|
Genting Plantation Berhad
|
33,500
|
101,404
|
|
Hong Leong Bank Berhad
|
16,000
|
71,306
|
|
Hong Leong Financial Group Berhad
|
7,700
|
41,311
|
|
IHH Healthcare Berhad
|
152,100
|
235,534
|
|
IJM Corporation Berhad
|
20,600
|
40,629
|
|
IOI Corporation Berhad
|
77,100
|
113,047
|
|
IOI Properties Group Berhad
|
60,000
|
47,920
|
|
Kuala Lumpur Kepong Berhad
|
17,800
|
114,380
|
|
Malayan Banking Berhad
|
19,200
|
58,294
|
|
Malaysia Airports Holdings Berhad
|
24,400
|
55,710
|
|
Maxis Berhad
|
59,900
|
118,321
|
|
MISC Berhad
|
25,600
|
52,675
|
|
MMC Corporation Berhad
|
89,100
|
64,642
|
|
Petronas Chemicals Group Berhad
|
58,600
|
111,466
|
|
Petronas Dagangan Berhad
|
17,900
|
109,130
|
|
Petronas Gas Berhad
|
11,700
|
81,745
|
|
PPB Group Berhad
|
17,100
|
74,019
|
|
Public Bank Bhd
|
10,400
|
59,918
|
|
RHB Capital Berhad
|
15,900
|
42,797
|
|
SapuraKencana Petroleum Berhad
|
85,600
|
107,505
|
|
Sime Darby Berhad
|
24,800
|
69,172
|
|
Telekom Malaysia Berhad
|
72,600
|
146,063
|
|
Tenaga Nasional Berhad
|
29,100
|
109,818
|
|
UEM Sunrise Berhad
|
40,200
|
22,303
|
|
UMW Holdings Berhad
|
26,100
|
97,542
|
|
YTL Corporation Berhad
|
207,100
|
106,059
|
|
YTL Power International Berhad (a)
|
244,100
|
122,031
|
|
3,653,768
|
||
|
MEXICO—6.1%
|
||
|
Alfa S.A.B. de C.V., Series A
|
26,800
|
92,203
|
|
America Movil S.A.B. Series L (c)
|
9,702
|
244,490
|
|
Arca Continental S.A.B. de C.V.
|
8,500
|
58,360
|
|
Cemex S.A. de C.V. (a)(c)
|
4,015
|
52,356
|
|
Cemex S.A.B. CPO (a)
|
35,880
|
46,758
|
|
Coca-Cola FEMSA SAB de C.V. (c)
|
744
|
74,936
|
|
Compartamos, S.A.B de C.V.
|
46,700
|
99,982
|
|
Controladora Comercial Mexicana S.A. de C.V.
|
11,600
|
43,459
|
|
El Puerto de Liverpool S.A.B. de C.V.
|
14,500
|
167,701
|
|
Fibra Uno Administracion S.A. de C.V.
|
27,484
|
90,422
|
|
Fomento Economico Mexicano S.A.B. (c)
|
514
|
47,314
|
|
Genomma Lab Internacional SAB de C.V. (a)(b)
|
69,900
|
167,610
|
|
GRUMA, S.A.B. de C.V., Series B (a)
|
4,500
|
48,188
|
|
Grupo Aeroportuario del Pacifico S.A.B. (c)
|
1,395
|
94,079
|
|
Grupo Aeroportuario del Sureste, S. A. B. de C.V., Series B
|
4,900
|
63,232
|
|
Grupo Bimbo, S.A. de C.V.
|
17,700
|
51,326
|
|
Grupo Carso SAB de C.V., Series A1
|
11,600
|
67,758
|
|
Grupo Comercial Chedraui S.A. de C.V (b)
|
21,800
|
76,998
|
|
Grupo Financiero Banorte SAB de C.V.
|
13,200
|
84,545
|
|
Grupo Financiero Inbursa SAB de C.V.
|
31,100
|
88,932
|
|
Grupo Lala SAB de C.V.
|
21,500
|
52,675
|
|
Grupo Mexico S.A.B. de C.V., Series B
|
17,500
|
58,813
|
|
Grupo Televisa S.A.B. (c)
|
3,723
|
126,135
|
|
Industrias Penoles SAB de C.V.
|
2,970
|
68,118
|
|
Kimberly-Clark de Mexico S.A. de C.V., Class A
|
13,400
|
31,622
|
|
Mexichem SAB de C.V.
|
21,900
|
91,197
|
|
Minera Frisco S.A.B. De C.V. (a)(b)
|
32,600
|
59,914
|
|
OHL Mexico, S.A.B. de C.V. (a)(b)
|
23,200
|
62,973
|
|
Promotora Y Operadora de Infraestructura, S.A.B. de C.V. (a)
|
7,200
|
98,569
|
|
Santander Mexico SAB de C.V.
|
26,300
|
71,191
|
|
Wal-Mart de Mexico, S.A.B. de C.V.
|
30,500
|
76,769
|
|
2,558,625
|
||
|
PERU—0.9%
|
||
|
Companhia de Minas Buenaventura S.A. (c)
|
8,926
|
103,363
|
|
Credicorp Ltd.
|
934
|
143,266
|
|
Southern Copper Corporation
|
3,566
|
105,732
|
|
352,361
|
||
|
PHILIPPINES—5.7%
|
||
|
Aboitiz Equity Ventures, Inc.
|
69,300
|
83,233
|
|
Aboitiz Power Corporation
|
228,700
|
207,666
|
|
Alliance Global Group, Inc.
|
121,900
|
70,623
|
|
Ayala Corporation
|
4,530
|
74,697
|
|
Ayala Land Inc.
|
88,100
|
68,611
|
|
Bank of the Philippine Islands
|
36,516
|
79,741
|
|
BDO Unibank, Inc.
|
31,060
|
67,861
|
|
DMCI Holdings, Inc.
|
43,630
|
76,755
|
|
Energy Development Corporation
|
1,164,700
|
209,959
|
|
Globe Telecom, Inc.
|
4,665
|
168,710
|
|
International Container Terminal Services, Inc.
|
34,340
|
84,477
|
|
JG Summit Holdings, Inc.
|
68,350
|
88,184
|
|
Jollibee Foods Corporation
|
56,830
|
248,202
|
|
Megaworld Corporation
|
569,000
|
63,775
|
|
Metro Pacific Investments Corporation
|
720,600
|
78,680
|
|
Metropolitan Bank & Trust Company
|
44,425
|
85,925
|
|
Philippine Long Distance Telephone Company (c)
|
2,406
|
165,966
|
|
SM Investments Corporation
|
4,988
|
89,307
|
|
SM Prime Holdings, Inc.
|
241,300
|
93,987
|
|
Universal Robina Corporation
|
63,340
|
263,931
|
|
2,370,290
|
||
|
POLAND—4.3%
|
||
|
Alior Bank S.A. (a)
|
2,932
|
75,195
|
|
Bank Handlowy w Warszawie S.A.
|
979
|
36,945
|
|
Bank Pekao S.A.
|
612
|
35,881
|
|
Bank Zachodni WBK S.A.
|
285
|
33,986
|
|
Cyfrowy Polsat S.A.
|
20,528
|
171,420
|
|
ENEA S.A.
|
14,609
|
71,450
|
|
Energa S.A.
|
11,210
|
81,223
|
|
Eurocash S.A.
|
16,813
|
164,001
|
|
Grupa Azoty S.A.
|
4,328
|
80,998
|
|
Grupa LOTOS S.A. (a)
|
11,387
|
96,772
|
|
Jastrzębska Spółka Węglowa S.A. (a)
|
9,642
|
93,732
|
|
KGHM Polska Miedz S.A.
|
2,134
|
81,498
|
|
mBank S.A.
|
215
|
31,935
|
|
Orange Polska S.A.
|
50,359
|
177,120
|
|
PGE S.A.
|
13,573
|
85,929
|
|
PKO Bank Polski S.A.
|
2,502
|
29,957
|
|
Polski Koncern Naftowy ORLEN S.A.
|
8,872
|
110,487
|
|
Polskie Gornictwo Naftowe i Gazownictwo S.A.
|
60,254
|
92,045
|
|
PZU S.A.
|
282
|
40,993
|
|
Synthos S.A.
|
49,633
|
68,927
|
|
Tauron Polska Energia S.A.
|
65,807
|
106,687
|
|
1,767,181
|
||
|
QATAR—4.3%
|
||
|
Barwa Real Estate Company Q.S.C.
|
10,768
|
118,417
|
|
Commercial Bank of Qatar Q.S.C.
|
7,141
|
137,649
|
|
Doha Bank Q.S.C.
|
6,703
|
106,752
|
|
Industries Qatar Q.S.C.
|
6,457
|
330,133
|
|
Masraf Al Rayan Q.S.C.
|
8,473
|
129,590
|
|
Ooredoo Q.S.C.
|
5,116
|
186,133
|
|
Qatar Electricity & Water Company Q.S.C.
|
6,312
|
329,305
|
|
Qatar Islamic Bank SAQ
|
3,962
|
122,716
|
|
Qatar National Bank SAQ
|
3,076
|
171,290
|
|
Vodafone Qatar
|
29,069
|
168,499
|
|
1,800,484
|
||
|
RUSSIA—3.4%
|
||
|
ALROSA ao
|
87,600
|
78,686
|
|
Gazprom (c)
|
6,681
|
47,034
|
|
JSC RusHydro (c)
|
34,005
|
61,209
|
|
LUKoil (c)
|
529
|
26,979
|
|
Magnit OJSC (Reg S) (d)
|
3,116
|
179,980
|
|
MegaFon (d)
|
2,931
|
74,389
|
|
Mobile TeleSystems (c)
|
4,259
|
63,629
|
|
Moscow Exchange MICEX-RTS
|
46,070
|
67,521
|
|
Norilsk Nickel Mining and Metallurgical Co. (c)
|
3,515
|
65,555
|
|
NovaTek OAO (Reg S) (d)
|
458
|
47,724
|
|
OAO Rostelecom *
|
28,390
|
75,843
|
|
OC Rosneft OJSC (Reg S) (d)
|
9,315
|
54,279
|
|
RusHydro JSC
|
5,089,000
|
90,660
|
|
Sberbank
|
54,910
|
105,258
|
|
Severstal (d)
|
9,886
|
98,662
|
|
Sistema JSFC (Reg S) (d)
|
6,801
|
46,927
|
|
Surgutneftegaz (c)
|
4,786
|
31,923
|
|
Tatneft (a)(c)
|
1,220
|
43,078
|
|
Uralkali OJSC
|
23,500
|
83,266
|
|
VTB Bank OJSC
|
72,030,000
|
70,986
|
|
1,413,588
|
||
|
SOUTH AFRICA—5.3%
|
||
|
African Rainbow Minerals Limited
|
3,044
|
38,573
|
|
Anglogold Ashanti Ltd. (c)
|
3,117
|
37,404
|
|
Aspen Pharmacare Holdings Limited
|
2,605
|
77,526
|
|
Assore Ltd.
|
742
|
14,109
|
|
Barloworld Limited
|
13,711
|
112,167
|
|
Bidvest Group Limited
|
4,777
|
120,745
|
|
Discovery Ltd.
|
1,769
|
15,384
|
|
Exxaro Resources Ltd. (b)
|
10,631
|
120,648
|
|
Foschini Limited
|
4,520
|
46,851
|
|
Gold Fields Limited
|
3,713
|
14,518
|
|
Gold Fields Ltd. (c)
|
4,490
|
17,511
|
|
Growthpoint Properties Limited
|
21,002
|
45,767
|
|
Harmony Gold Mining Co., Ltd. (a)(c)
|
9,449
|
20,410
|
|
Impala Platinum Holdings Limited
|
2,939
|
22,614
|
|
Imperial Holdings Limited
|
5,534
|
85,137
|
|
Investec Ltd.
|
4,159
|
34,903
|
|
Life Healthcare Group Holdings Ltd.
|
20,143
|
79,346
|
|
Massmart Holdings Ltd.
|
4,531
|
49,189
|
|
Mediclinic International, Ltd.
|
9,731
|
79,168
|
|
MMI Holdings Ltd.
|
13,440
|
31,154
|
|
Mr Price Group Ltd.
|
4,456
|
83,678
|
|
MTN Group Limited
|
3,432
|
72,337
|
|
Nampak Ltd.
|
7,606
|
27,667
|
|
Naspers Limited N Shs
|
446
|
49,109
|
|
Netcare Limited
|
27,555
|
77,033
|
|
Northam Platinum, Ltd.
|
9,967
|
32,456
|
|
Pick n Pay Stores Ltd.
|
10,396
|
48,528
|
|
PPC, Ltd.
|
8,454
|
22,101
|
|
Redefine Properties Ltd.
|
26,601
|
22,867
|
|
Remgro Limited
|
1,906
|
38,437
|
|
RMI Holdings Ltd.
|
19,359
|
60,609
|
|
Sanlam Limited
|
7,618
|
43,995
|
|
Sappi Ltd.
|
8,232
|
32,383
|
|
Sasol Ltd.
|
1,809
|
98,130
|
|
Shoprite Holdings Ltd.
|
3,148
|
38,969
|
|
Spar Group Limited (The)
|
5,801
|
64,428
|
|
Steinoff International Holdings Limited
|
14,100
|
67,439
|
|
Tiger Brands Limited
|
2,360
|
65,837
|
|
Truworths International Ltd.
|
6,076
|
36,514
|
|
Vodacom Group (Proprietary) Limited
|
8,778
|
100,923
|
|
Woolworths Holdings Limited
|
9,145
|
56,543
|
|
2,203,107
|
||
|
SOUTH KOREA—5.5%
|
||
|
Amore Pacific Corporation
|
25
|
56,669
|
|
Amorepacific Group
|
56
|
62,036
|
|
BS Financial Group, Inc.
|
1,490
|
23,863
|
|
Celltrion Inc. (a)(b)
|
1,686
|
78,209
|
|
CJ CheilJedang Corp.
|
116
|
42,597
|
|
Daewoo International Corporation
|
420
|
14,945
|
|
Daewoo Securities Co., Ltd. (a)
|
1,770
|
18,031
|
|
DGB Financial Group Inc.
|
1,410
|
22,448
|
|
Dongbu Insurance Co., Ltd.
|
443
|
24,978
|
|
Doosan Heavy Industries & Construction Co., Ltd.
|
1,230
|
30,364
|
|
Doosan Infracore Co., Ltd. (a)
|
3,730
|
39,235
|
|
E-MART Co., Ltd.
|
102
|
22,280
|
|
GS Holdings Corp.
|
1,490
|
56,903
|
|
Hana Financial Group, Inc.
|
490
|
17,877
|
|
Hankook Tire Co. Ltd.
|
714
|
34,846
|
|
Hanwha Corporation
|
600
|
16,745
|
|
Hanwha Life Insurance Co., Ltd.
|
2,670
|
17,964
|
|
Hyosung Corporation
|
364
|
26,078
|
|
Hyundai Heavy Industries Co., Ltd.
|
248
|
32,315
|
|
Hyundai Marine & Fire Insurance, Co., Ltd.
|
912
|
25,150
|
|
Hyundai Mobis Co.,Ltd.
|
73
|
17,779
|
|
Hyundai Steel Co., Ltd.
|
364
|
25,595
|
|
Hyundai Wia Corp.
|
165
|
33,618
|
|
Industrial Bank of Korea
|
1,890
|
28,567
|
|
Kangwon Land Inc.
|
980
|
33,293
|
|
KB Financial Group Inc.
|
840
|
30,686
|
|
KJB Financial Group Co., Ltd. (a)
|
190
|
1,917
|
|
KNB Financial Group Co., Ltd. (a)
|
290
|
3,243
|
|
Korea Aerospace Industries, Ltd.
|
290
|
11,199
|
|
Korea Electric Power Corporation
|
1,830
|
83,588
|
|
Korea Gas Corporation (a)
|
1,464
|
76,304
|
|
Korea Kumho Petrochemical Co., Ltd.
|
401
|
26,638
|
|
Korea Zinc Co., Ltd.
|
64
|
23,653
|
|
KT Corporation (c)
|
7,023
|
113,843
|
|
KT&G Corporation
|
320
|
28,657
|
|
LG Chem Ltd.
|
141
|
34,139
|
|
LG Display Co., Ltd. (a)
|
800
|
25,776
|
|
LG Household & Healthcare
|
45
|
21,620
|
|
LG Innotek Co., Ltd. (a)
|
149
|
16,238
|
|
LG Uplus Corp.
|
6,740
|
78,881
|
|
Lotte Chemical Corporation
|
190
|
25,297
|
|
Lotte Confectionery Co. Ltd.
|
13
|
26,844
|
|
Lotte Shopping Co., Ltd.
|
52
|
15,572
|
|
Naver Corp.
|
43
|
32,884
|
|
NCSoft Corporation
|
286
|
36,453
|
|
Orion Corporation
|
42
|
34,826
|
|
Paradise Co., Ltd.
|
1,235
|
40,435
|
|
POSCO
|
77
|
23,970
|
|
Samsung C&T Corp.
|
560
|
40,119
|
|
Samsung Card Co, Ltd.
|
420
|
20,776
|
|
Samsung Electro-Mechanics Co., Ltd.
|
282
|
13,228
|
|
Samsung Electronics Company, Ltd.
|
14
|
15,708
|
|
Samsung Fire & Marine Insurance Co., Ltd.
|
74
|
19,810
|
|
Samsung Life Insurance Co., Ltd
|
183
|
18,382
|
|
Samsung SDI Company, Ltd.
|
390
|
45,274
|
|
Samsung Securities Co., Ltd.
|
380
|
15,881
|
|
Shinhan Financial Group Co., Ltd.
|
600
|
27,633
|
|
Shinsegae Co., Ltd.
|
84
|
17,473
|
|
SK C&C Co., Ltd.
|
221
|
50,786
|
|
SK Hynix Inc. (a)
|
700
|
31,012
|
|
SK Innovation Co., Ltd.
|
680
|
52,261
|
|
SK Telecom Co., Ltd. (c)
|
2,365
|
71,754
|
|
S-Oil Corp.
|
1,543
|
62,583
|
|
Woori Finance Holdings Co., Ltd. (a)
|
2,508
|
31,016
|
|
Woori Investment & Securities Co., Ltd.
|
3,347
|
37,427
|
|
Yuhan Co., Ltd.
|
504
|
88,836
|
|
2,275,007
|
||
|
TAIWAN—6.7%
|
||
|
Asia Cement Corporation
|
20,808
|
26,575
|
|
Asia Pacific Telecom Co., Ltd.
|
111,000
|
64,587
|
|
AU Optronics Corp. (c)
|
7,122
|
29,627
|
|
Cathay Financial Holding Co., Ltd.
|
13,453
|
21,913
|
|
Chang Hwa Commercial Bank
|
36,016
|
22,081
|
|
Cheng Shin Rubber Industry Co., Ltd.
|
36,900
|
81,395
|
|
China Airlines Ltd. (a)
|
162,000
|
54,320
|
|
China Life Insurance Co,. Limited
|
37,400
|
30,860
|
|
China Motor Corporation
|
22,000
|
19,599
|
|
China Steel Corporation
|
41,208
|
35,221
|
|
Chinatrust Financial Holding Co., Ltd.
|
27,739
|
18,648
|
|
Chunghwa Telecom Co., Ltd. (b)(c)
|
5,677
|
170,140
|
|
CTCI Corporation
|
22,000
|
37,463
|
|
Eclat Textile Co., Ltd.
|
4,160
|
37,812
|
|
EVA Airways Corporation (a)
|
89,000
|
47,105
|
|
Evergreen Marine Corporation (a)
|
46,000
|
26,992
|
|
Far Eastern Department Stores Ltd.
|
36,720
|
35,429
|
|
Far Eastern New Century Corporation
|
69,268
|
69,793
|
|
Far EasTone Telecommunications Co., Ltd.
|
54,000
|
103,493
|
|
Farglory Land Development Co., Ltd.
|
7,000
|
8,250
|
|
First Financial Holding Company Ltd.
|
74,900
|
45,182
|
|
Formosa Chemicals & Fiber Corporation
|
11,330
|
26,184
|
|
Formosa International Hotels Corporation
|
2,420
|
25,696
|
|
Formosa Petrochemical Corporation
|
55,000
|
133,434
|
|
Formosa Plastics Corporation
|
35,480
|
84,094
|
|
Formosa Taffeta Co., Ltd.
|
32,000
|
31,454
|
|
Fubon Financial Holding Co., Ltd.
|
14,000
|
21,493
|
|
Giant Manufacturing Co., Ltd.
|
4,000
|
31,164
|
|
Highwealth Construction Corp.
|
21,000
|
33,551
|
|
HIWIN Technologies Corp.
|
3,090
|
27,630
|
|
Hotai Motor Co., Ltd.
|
2,000
|
27,219
|
|
Hua Nan Financial Holdings Co., Ltd.
|
40,015
|
23,349
|
|
Lite-On Technology Corp.
|
15,075
|
21,731
|
|
Mega Financial Holding Co., Ltd.
|
23,751
|
19,481
|
|
Merida Industry Co., Ltd.
|
3,150
|
21,953
|
|
Nan Ya Plastics Corporation
|
29,100
|
63,711
|
|
Pou Chen Corporation
|
21,000
|
23,334
|
|
President Chain Store Corp.
|
17,000
|
121,830
|
|
Realtek Semiconductor Corporation
|
16,000
|
56,806
|
|
Ruentex Development Company Limited
|
23,000
|
37,162
|
|
Ruentex Industries Ltd.
|
31,000
|
68,992
|
|
ScinoPharm Taiwan Ltd.
|
65,603
|
134,572
|
|
Standard Foods Corporation
|
40,275
|
90,693
|
|
Synnex Technology International Corp.
|
18,000
|
24,852
|
|
Taishin Financial Holding Co., Ltd.
|
43,934
|
20,581
|
|
Taiwan Business Bank Co., Ltd. (a)
|
65,977
|
19,477
|
|
Taiwan Cement Corporation
|
16,000
|
23,827
|
|
Taiwan Cooperative Financial Holding Co., Ltd.
|
52,311
|
28,202
|
|
Taiwan Fertilizer Co., Ltd.
|
50,000
|
82,677
|
|
Taiwan Glass Industry Corporation
|
43,000
|
35,622
|
|
Taiwan Mobile Co., Ltd.
|
34,000
|
103,164
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. (c)
|
1,057
|
21,330
|
|
TECO Electric & Machinery Co., Ltd.
|
25,000
|
25,683
|
|
TSRC Corp.
|
25,200
|
30,237
|
|
U-Ming Marine Transport Corporation
|
41,000
|
62,404
|
|
Uni-President Enterprises Corporation
|
69,557
|
120,732
|
|
Walsin Lihwa Corporation (a)
|
69,000
|
22,683
|
|
Yang Ming Marine Transport Corporation (a)
|
63,000
|
27,441
|
|
Yuanta Financial Holding Co., Ltd.
|
32,800
|
16,174
|
|
Yulon Motor Co., Ltd.
|
12,000
|
17,949
|
|
2,795,053
|
||
|
THAILAND—5.7%
|
||
|
Advanced Info Service For Rg
|
20,900
|
145,027
|
|
Airports of Thailand PCL
|
16,500
|
121,619
|
|
Bangkok Bank PCL (e)
|
7,700
|
48,444
|
|
Bangkok Dusit Medical Services PLC
|
246,700
|
140,754
|
|
Banpu Public Company Limited
|
52,000
|
47,309
|
|
BEC World PCL
|
57,900
|
83,926
|
|
BTS Group Holdings PCL (b)
|
399,300
|
123,146
|
|
Bumrungrad Hospital PLC
|
27,700
|
112,765
|
|
Central Pattana PCL
|
35,600
|
51,053
|
|
Charoen Pokphand Foods PCL
|
150,100
|
140,032
|
|
CP ALL PCL
|
82,600
|
113,997
|
|
Glow Energy PCL
|
74,500
|
218,847
|
|
Home Product Center PCL
|
248,266
|
79,629
|
|
Indorama Ventures Public Company Limited
|
85,500
|
67,240
|
|
IRPC PCL
|
501,100
|
53,162
|
|
Kasikornbank PCL (e)
|
10,400
|
75,374
|
|
Krung Thai Bank PCL
|
72,200
|
52,772
|
|
Minor International PCL
|
100,900
|
115,137
|
|
PTT Exploration & Production PCL
|
16,300
|
80,432
|
|
PTT Global Chemical PCL
|
28,700
|
53,992
|
|
PTT PCL
|
7,100
|
78,828
|
|
Siam Cement Pub Co-for Reg
|
2,700
|
37,471
|
|
Siam Cement Public Company (e)
|
4,700
|
65,227
|
|
Siam Commercial Bank PCL
|
11,300
|
63,426
|
|
Thai Oil PCL
|
25,300
|
40,184
|
|
TMB Bank Public Company Limited
|
897,200
|
85,224
|
|
True Corp PCL (a)
|
249,589
|
91,599
|
|
2,386,616
|
||
|
TURKEY—4.0%
|
||
|
Akbank T.A.S.
|
11,515
|
37,470
|
|
Anadolu Efes Biracilik VE (a)
|
5,613
|
64,739
|
|
Arcelik A.S.
|
12,843
|
68,432
|
|
BIM Birlesik Magazalar A.S.
|
2,987
|
62,419
|
|
Coca-Cola Icecek A.S.
|
2,848
|
61,388
|
|
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.
|
24,832
|
25,918
|
|
Enka Ins¸aat ve Sanayi A.S¸.
|
32,264
|
73,577
|
|
Eregli Demir ve Celik Fabrikalari T.A.S.
|
78,577
|
145,765
|
|
Ford Otomotiv Sanayi A.S. (a)
|
8,984
|
103,029
|
|
Haci Omer Sabanci Holding A.S.
|
8,284
|
34,804
|
|
Koc¸ Holding A.S.
|
15,061
|
69,352
|
|
Koza Altin Isletmeleri A.S.
|
12,479
|
92,761
|
|
TAV Havalimanlari Holding A.S.
|
6,269
|
50,311
|
|
Tofas Turk Otomobil Fabrikasi A.S.
|
12,079
|
67,805
|
|
Tupras—Turkiye Petrol Rafinerileri A.S.
|
7,476
|
149,995
|
|
Turk Hava Yollari A.O. (a)
|
18,791
|
53,318
|
|
Turk Telekomunikasyon A.S.
|
37,251
|
98,182
|
|
Turkcell Iletisim Hizmetleri A.S. (a)(c)
|
7,788
|
102,334
|
|
Turkiye Garanti Bankasi A.S.
|
6,906
|
24,229
|
|
Turkiye Halk Bankasi A.S.
|
4,428
|
26,604
|
|
Turkiye Sise ve Cam Fabrikalari A.S.
|
60,578
|
76,777
|
|
Turkiye Vakiflar Bankasi T-d
|
14,604
|
27,027
|
|
Ulker Biskuvi Sanayi A.S.
|
12,485
|
82,677
|
|
Yapi ve Kredi Bankasi A.S.
|
31,666
|
62,075
|
|
1,660,988
|
||
|
United Arab Emerates—3.2%
|
||
|
Abu Dhabi Commercial Bank
|
58,017
|
133,793
|
|
Aldar Properties PJSC
|
94,558
|
100,921
|
|
Arabtec Holding Company PJSC
|
112,080
|
140,373
|
|
DP World Ltd.
|
11,321
|
234,911
|
|
Dubai Financial Market PJSC
|
100,998
|
92,395
|
|
Dubai Islamic Bank PSJ
|
63,465
|
143,420
|
|
Emaar Properties PJSC
|
41,914
|
131,807
|
|
First Gulf Bank PJSC
|
29,454
|
150,363
|
|
National Bank of Abu Dhabi PJSC
|
48,259
|
189,864
|
|
1,317,847
|
||
|
TOTAL COMMON STOCK
|
||
|
(Cost $37,348,606)
|
38,439,986
|
|
|
Preferred Stock—2.7%
BRAZIL—0.9%
|
||
|
AES Tiete S.A.
|
2,800
|
24,639
|
|
Banco Bradesco S.A.
|
3,100
|
44,101
|
|
Bradespar S.A.
|
6,800
|
49,757
|
|
Centrais Eletricas Brasileiras S.A.
|
3,900
|
16,084
|
|
Itausa-Investimentos Itau S.A.
|
6,380
|
24,150
|
|
Lojas Americanas S.A.
|
4,250
|
24,105
|
|
Metalurgica Gerdau S.A.
|
3,500
|
20,222
|
|
Oi S.A.
|
51,100
|
36,306
|
|
Petróleo Brasileiro S.A.
|
4,500
|
33,240
|
|
Suzano Papel e Celulose S.A.
|
12,700
|
51,028
|
|
Usiminas Usi Sd Mg (a)
|
4,500
|
11,705
|
|
Vale S.A., Class A
|
2,000
|
19,420
|
|
354,757
|
||
|
CHILE—0.2%
|
||
|
Embotelladora Andina S.A.
|
30,427
|
98,505
|
|
COLOMBIA—1.0%
|
||
|
Banco Davivienda S.A.
|
6,282
|
90,639
|
|
Bancolombia S.A..
|
5,889
|
83,512
|
|
Grupo Argos S.A.
|
8,530
|
94,964
|
|
Grupo Aval Acciones y Valores S.A.
|
96,196
|
66,161
|
|
Grupo de Inversiones Suramericana S.A.
|
4,154
|
83,244
|
|
418,520
|
||
|
RUSSIA—0.4%
|
||
|
AK Transneft OAO
|
27
|
58,902
|
|
Sberbank
|
44,010
|
64,012
|
|
Surgutneftegas OAO
|
68,900
|
47,707
|
|
170,621
|
||
|
SOUTH KOREA—0.2%
|
||
|
Hyundai Motor Company Ltd.
|
252
|
28,657
|
|
LG Chem Ltd.
|
149
|
23,157
|
|
Samsung Electronics Co. Ltd.
|
27
|
22,976
|
|
74,790
|
||
|
TOTAL PREFERRED STOCK
|
||
|
(Cost $1,227,853)
|
1,117,193
|
|
|
Exchange Traded Funds—0.0%
United States—0.0%
|
||
|
iShares MSCI Emerging Markets Index Fund
|
100
|
4,156
|
|
Vanguard FTSE Emerging Markets ETF (b)
|
544
|
22,690
|
|
(Cost $28,079)
|
26,846
|
|
|
Exchange Traded Notes—4.4%
|
||
|
United Kingdom—4.4%
|
||
|
iPath MSCI India Index ETN (a)
(Cost $1,365,443)
|
25,900
|
1,818,180
|
|
Short Term Investments—0.2%
|
||
|
|
Par Value
|
Value
|
|
State Street Bank & Trust Co., Repurchase Agreement
.0%, 10/01/14, (Dated 09/30/14), Collateralized by 70,000 par U.S. Treasury Note-8.0% due 11/15/2021, Market Value $98,984, Repurchase Proceeds $92,064 (Cost $92,064)
|
$92,064
|
$92,064
|
|
TOTAL INVESTMENTS (EXCLUDING INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED)
|
||
|
(Cost $40,062,045)
|
41,494,269
|
|
|
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED—3.4%
|
||
|
Money Market—3.4%
|
||
|
Western Asset Institutional Cash Reserves—Inst.
(Cost $1,401,525)
|
$1,401,525
|
$1,401,525
|
|
TOTAL INVESTMENTS—103.1%
|
42,895,794
|
|
|
(Cost $41,463,570)
|
||
|
OTHER ASSETS & LIABILITIES (Net)—(3.1%)
|
(1,271,994)
|
|
|
NET ASSETS—100%
|
$41,623,800
|
|
*
|
Fair valued by Valuation Committee as delegated by Pear Tree Funds Board of Trustees that represent 0.2% of net assets as of September 30, 2014.
|
|
(a)
|
Non-income producing security.
|
|
(b)
|
All or a portion of this security was out on loan.
|
|
(c)
|
ADR—American Depository Receipts
|
|
(d)
|
GDR—Global Depository Receipts
|
|
(e)
|
NVDR—Non-Voting Depository Receipts
|
|
The percentage of each investment category is calculated as a percentage of net assets.
|
|
SECTOR ALLOCATIONS
(as a percentage of Total Net Assets)
|
|
|
Financials
|
18.8%
|
|
Telecommunication Services
|
11.2%
|
|
Consumer Staples
|
11.1%
|
|
Industrials
|
10.9%
|
|
Materials
|
10.2%
|
|
Consumer Discretionary
|
9.7%
|
|
Utilities
|
8.9%
|
|
Energy
|
7.5%
|
|
Health Care
|
4.8%
|
|
Information Technology
|
2.0%
|
|
Exchange Traded Funds
|
0.0%
|
|
Exchange Traded Notes
|
4.4%
|
|
Cash and Other Assets (Net)
|
0.5%
|
PEAR TREE POLARIS FOREIGN VALUE FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—93.7%
|
Shares
|
Value
|
|
|
AUSTRALIA—1.8%
|
||
|
BHP Billiton plc (b)
|
509,500
|
$ 28,292,535
|
|
BELGIUM—1.9%
|
||
|
Solvay S.A.
|
192,547
|
29,637,428
|
|
CANADA—2.4%
|
||
|
Methanex Corporation
|
567,507
|
37,869,553
|
|
FINLAND—4.7%
|
||
|
Caverion Corporation
|
840,216
|
6,418,689
|
|
Kone OYJ, Class B
|
759,800
|
30,528,081
|
|
Konecranes OYJ
|
971,780
|
26,136,510
|
|
YIT OYJ
|
1,438,416
|
11,097,516
|
|
74,180,796
|
||
|
FRANCE—6.6%
|
||
|
Christian Dior S.A.
|
181,173
|
30,357,391
|
|
Imerys S.A.
|
420,183
|
30,974,379
|
|
Ipsos
|
588,780
|
15,021,453
|
|
Maurel et Prom (a)
|
1,853,506
|
26,107,400
|
|
Transgene S.A. (a)
|
159,360
|
1,750,647
|
|
104,211,270
|
||
|
GERMANY—15.6%
|
||
|
BASF SE
|
296,400
|
27,182,806
|
|
Deutsche Telekom AG
|
2,374,522
|
35,979,696
|
|
Freenet AG
|
1,235,439
|
32,143,560
|
|
Hannover Rueck SE
|
365,800
|
29,570,551
|
|
Lanxess AG
|
506,100
|
27,929,779
|
|
Muenchener Rueckvers AG
|
151,730
|
29,993,322
|
|
Symrise AG
|
603,150
|
32,116,557
|
|
Wincor Nixdorf AG
|
634,950
|
32,519,025
|
|
247,435,296
|
||
|
HONG KONG—2.4%
|
||
|
Guangdong Investment Limited
|
24,309,800
|
28,395,532
|
|
REXLot Holdings Limited
|
98,325,000
|
10,003,509
|
|
38,399,041
|
||
|
INDIA—2.3%
|
||
|
Infosys Technologies Ltd. (b)
|
594,545
|
35,964,027
|
|
IRELAND -4.2%
|
||
|
CRH plc
|
1,310,629
|
29,970,795
|
|
Greencore Group plc
|
9,817,304
|
37,257,925
|
|
67,228,720
|
||
|
ISRAEL—2.4%
|
||
|
Teva Pharmaceuticals SP (b)
|
697,619
|
37,497,021
|
|
ITALY—3.3%
|
||
|
GTECH SpA
|
1,277,265
|
30,336,806
|
|
Trevi Finanziaria SpA
|
3,087,826
|
21,892,866
|
|
52,229,672
|
||
|
JAPAN—8.5%
|
||
|
Asahi Group Holdings Ltd.
|
1,105,400
|
31,980,252
|
|
KDDI Corporation
|
547,600
|
32,918,412
|
|
Meiji Holdings Co., Ltd.
|
484,000
|
38,261,044
|
|
Showa Denko K.K.
|
23,365,000
|
30,677,547
|
|
133,837,255
|
||
|
NORWAY—6.3%
|
||
|
DnB Bank ASA
|
1,805,492
|
33,793,194
|
|
SpareBank 1 SR-Bank ASA
|
3,312,673
|
31,439,560
|
|
Yara International ASA
|
682,300
|
34,245,837
|
|
99,478,591
|
||
|
RUSSIA—0.6%
|
||
|
Sberbank of Russia (b)
|
1,312,300
|
10,325,177
|
|
SOUTH AFRICA—2.1%
|
||
|
Sasol Ltd.
|
604,135
|
32,771,398
|
|
SOUTH KOREA—1.8%
|
||
|
Samsung Electronics Company Ltd.
|
25,385
|
28,482,199
|
|
SWEDEN—7.5%
|
||
|
Duni AB
|
1,779,500
|
22,311,393
|
|
Investor AB, Class B
|
904,856
|
31,991,916
|
|
Loomis AB, Class B
|
1,104,048
|
31,585,527
|
|
Svenska Handelsbanken AB, Class A
|
681,500
|
32,054,260
|
|
117,943,096
|
||
|
SWITZERLAND—2.2%
|
||
|
Novartis AG
|
374,850
|
35,364,688
|
|
THAILAND—2.0%
|
||
|
Thai Oil PCL
|
20,021,200
|
31,799,284
|
|
UNITED KINGDOM—15.1%
|
||
|
Barratt Developments plc
|
5,428,822
|
34,875,546
|
|
BBA Aviation plc
|
3,573,770
|
18,837,381
|
|
Bellway plc
|
1,301,206
|
33,069,347
|
|
Persimmon plc
|
1,461,909
|
31,629,093
|
|
Rexam plc
|
3,860,727
|
30,794,147
|
|
Standard Chartered plc
|
1,545,747
|
28,591,983
|
|
Taylor Wimpey plc
|
17,972,146
|
32,879,076
|
|
Tullow Oil plc
|
2,659,788
|
27,802,286
|
|
238,478,859
|
||
|
TOTAL COMMON STOCK
|
||
|
(Cost $1,252,522,378)
|
1,481,425,906
|
|
|
SHORT TERM INVESTMENTS—5.7%
|
||
|
Par Value
|
Value
|
|
|
Money Market—5.7%
|
||
|
State Street Global Advisors FDS
(Cost $90,805,436)
|
$90,805,436
|
$90,805,436
|
|
TOTAL INVESTMENTS—99.4%
|
||
|
(Cost $1,343,327,814)
|
1,572,231,342
|
|
|
OTHER ASSETS & LIABILITIES (NET)—0.6%
|
9,116,877
|
|
|
NET ASSETS—100%
|
$1,581,348,219
|
|
(a)
|
Non-income producing security
|
|
(b)
|
ADR—American Depository Receipts
|
|
The percentage of each investment category is calculated as a percentage of net assets.
|
|
SECTOR ALLOCATIONS
(as a percentage of Total Net Assets)
|
|
|
Materials
|
21.5%
|
|
Consumer Discretionary
|
15.2%
|
|
Financials
|
14.4%
|
|
Industrials
|
9.3%
|
|
Energy
|
7.5%
|
|
Consumer Staples
|
6.8%
|
|
Telecommunication Services
|
6.4%
|
|
Information Technology
|
6.1%
|
|
Health Care
|
4.7%
|
|
Utilities
|
1.8%
|
|
Cash and Other Assets (Net)
|
6.3%
|
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
Common Stock—93.6%
|
Shares
|
Value
|
|
|
AUSTRALIA—1.5%
|
||
|
Austal Limited (a)
|
552,530
|
$ 627,461
|
|
Programmed Maintenance Services Limited
|
1,430,000
|
3,447,728
|
|
4,075,189
|
||
|
AUSTRIA—1.1%
|
||
|
Semperit AG Holding
|
66,300
|
3,055,670
|
|
BELGIUM—1.6%
|
||
|
Kinepolis Group
|
110,500
|
4,247,939
|
|
BRAZIL—1.8%
|
||
|
Equatorial Energia SA
|
487,637
|
4,938,096
|
|
CHINA—3.5%
|
||
|
China Hongxing Sports Limited (a)
|
10,258,400
|
80,420
|
|
Shanghai Mechanical & Electrical Industry Co. Ltd., Class B
|
2,248,563
|
4,879,382
|
|
Xinhua Winshare Publishing and Media Co., Ltd.
|
5,089,500
|
4,483,246
|
|
9,443,048
|
||
|
DENMARK—1.4%
|
||
|
DFDS A/S Copenhagen (a)
|
48,400
|
3,809,472
|
|
FINLAND—1.1%
|
||
|
PKC Group OYJ
|
150,200
|
3,036,416
|
|
FRANCE—2.5%
|
||
|
Bonduelle S.A.
|
134,800
|
3,446,791
|
|
Ipsos SA
|
136,767
|
3,489,316
|
|
6,936,107
|
||
|
GERMANY—5.0%
|
||
|
Freenet AG
|
208,000
|
5,411,728
|
|
QSC AG
|
1,856,139
|
5,228,897
|
|
Sixt SE
|
93,977
|
3,018,237
|
|
13,658,862
|
||
|
HONG KONG—7.1%
|
||
|
REXLot Holdings Limited
|
34,200,000
|
3,479,482
|
|
Samson Holding Ltd.
|
30,834,800
|
4,090,154
|
|
Texwinca Holdings Limited
|
3,728,200
|
3,202,480
|
|
VST Holdings Ltd.
|
15,775,360
|
4,733,654
|
|
VTech Holdings Limited
|
309,500
|
3,802,510
|
|
19,308,280
|
||
|
INDIA—7.1%
|
||
|
KRBL Ltd.
|
3,154,200
|
5,153,154
|
|
LIC Housing Finance Ltd.
|
759,900
|
3,998,826
|
|
NIIT Technologies Ltd.
|
628,575
|
4,075,153
|
|
South Indian Bank Ltd.
|
8,063,748
|
3,381,656
|
|
Usha Martin Group Ltd. (a)
|
7,077,298
|
2,687,219
|
|
19,296,008
|
||
|
IRELAND—6.5%
|
||
|
Glanbia plc
|
247,100
|
3,566,309
|
|
Greencore Group plc
|
1,458,198
|
5,534,048
|
|
IFG Group plc
|
1,737,985
|
3,467,394
|
|
UDG Healthcare plc
|
938,639
|
5,035,872
|
|
17,603,623
|
||
|
ITALY—2.7%
|
||
|
De’Longhi SpA
|
180,910
|
3,641,254
|
|
Trevi Finanziaria SpA
|
539,100
|
3,822,250
|
|
7,463,504
|
||
|
JAPAN—13.1%
|
||
|
Ain Pharmaciez, Inc.
|
172,000
|
3,926,947
|
|
BML, Inc.
|
166,800
|
5,262,166
|
|
Chugoku Marine Paints Ltd.
|
760,000
|
5,703,031
|
|
Daicel Corporation
|
512,700
|
5,567,592
|
|
DaiichiKosho Co., Ltd.
|
132,600
|
3,565,420
|
|
Higashi Nihon House Co., Ltd.
|
777,900
|
3,766,263
|
|
Prima Meat Packers Ltd.
|
1,702,000
|
4,236,572
|
|
Unipres Corporation
|
186,700
|
3,658,248
|
|
35,686,239
|
||
|
NORWAY—5.6%
|
||
|
ABG Sundal Collier Holding ASA
|
4,138,100
|
3,444,473
|
|
SpareBank 1 Nord-Norge
|
641,496
|
3,842,578
|
|
SpareBank 1 SMN
|
448,665
|
4,135,982
|
|
SpareBank 1 SR-Bank ASA
|
393,626
|
3,735,783
|
|
15,158,816
|
||
|
PHILIPPINES—1.0%
|
||
|
Manila Water Company, Inc.
|
4,081,170
|
2,682,737
|
|
SINGAPORE—3.2%
|
||
|
BreadTalk Group Ltd.
|
3,487,100
|
3,704,155
|
|
M1 Ltd.
|
1,817,200
|
5,071,521
|
|
8,775,676
|
||
|
SOUTH AFRICA—1.4%
|
||
|
Clicks Group Limited
|
639,630
|
3,790,149
|
|
SWEDEN—3.9%
|
||
|
Duni AB
|
264,000
|
3,310,035
|
|
Loomis AB
|
127,100
|
3,636,183
|
|
Nolato AB
|
160,600
|
3,637,839
|
|
10,584,057
|
||
|
SWITZERLAND—1.9%
|
||
|
Vetropack Holding AG
|
3,186
|
5,308,055
|
|
TAIWAN—3.0%
|
||
|
Holtek Semiconductor, Inc.
|
2,133,600
|
3,766,476
|
|
WT Microelectronics Co., Ltd.
|
2,801,400
|
4,507,915
|
|
8,274,391
|
||
|
THAILAND—5.2%
|
||
|
Hana Microelectronics PCL
|
3,552,780
|
4,629,297
|
|
Ratchaburi Electricity Generating Holding PCL
|
3,013,400
|
5,506,367
|
|
Thai Union Frozen Products PCL
|
1,785,974
|
4,075,931
|
|
14,211,595
|
||
|
UNITED KINGDOM—12.4%
|
||
|
Alternative Networks plc
|
677,200
|
5,195,037
|
|
BBA Aviation plc
|
706,433
|
3,723,616
|
|
Character Group plc
|
496,900
|
1,724,620
|
|
Clarkson plc
|
102,600
|
3,910,441
|
|
Galliford Try plc
|
193,828
|
3,979,796
|
|
Halfords Group plc
|
470,131
|
3,617,976
|
|
Restaurant Group plc (The)
|
349,700
|
3,700,724
|
|
Vitec Group plc
|
394,820
|
3,928,478
|
|
Wetherspoon (J.D.) plc
|
303,100
|
3,922,829
|
|
33,703,517
|
||
|
TOTAL COMMON STOCK
|
||
|
(Cost $211,566,283)
|
255,047,446
|
|
|
Preferred Stock—2.0%
|
||
|
GERMANY—2.0%
|
||
|
Dräegerwerk AG
|
||
|
(Cost $5,701,317)
|
61,900
|
5,479,094
|
|
Short Term Investments—4.2%
|
||
|
Par Value
|
Value
|
|
|
Money Market—4.2%
|
||
|
State Street Global Advisors FDS
|
||
|
(Cost $11,425,597)
|
$11,425,597
|
$11,425,597
|
|
TOTAL INVESTMENTS—99.8%
|
||
|
(Cost $228,693,197)
|
271,952,137
|
|
|
OTHER ASSETS & LIABILITIES (NET)—0.2%
|
690,827
|
|
|
NET ASSETS—100%
|
$272,642,964
|
|
(a)
|
Non-income producing security
|
|
The percentage of each investment category is calculated as a percentage of net assets.
|
|
SECTOR ALLOCATIONS
(as a percentage of Total Net Assets)
|
|
|
Consumer Discretionary
|
22.5%
|
|
Industrials
|
15.1%
|
|
Consumer Staples
|
12.3%
|
|
Information Technology
|
10.7%
|
|
Financials
|
9.6%
|
|
Telecommunication Services
|
7.7%
|
|
Materials
|
7.1%
|
|
Health Care
|
5.8%
|
|
Utilities
|
4.8%
|
|
Cash and Other Assets (Net)
|
4.4%
|
PEAR TREE FUNDS
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2014 (Unaudited)
|
Small Cap
|
Quality
|
|
|
Assets:
|
||
|
Investments at Value of Non-affiliated securities (Includes collateral from securities on loan of $9,967,763; $889,100; $1,052,608; $1,401,525; $0: $0, respectively* (Note 2)
|
$110,406,882
|
$128,146,821
|
|
Investments at Value of Affiliated Securities
|
—
|
—
|
|
Repurchase Agreements/Commercial Paper
|
588,561
|
698,983
|
|
Foreign Currency at Value (Cost $275,352 for Emerging Markets, $115,064 for Risk Parity, $390,568 for Foreign Value and $341,326 for Foreign Value Small Cap)
|
—
|
8,821
|
|
Cash
|
—
|
—
|
|
Dividends, Interest and Foreign Tax Reclaims Receivable
|
48,324
|
217,164
|
|
Receivable for Investments Sold
|
3,494,248
|
23,359
|
|
Receivable for Shares of Beneficial Interest Sold
|
666
|
—
|
|
Other Assets
|
22,772
|
12,681
|
|
Total Assets
|
$114,561,453
|
$129,107,829
|
|
Liabilities:
|
||
|
Payable for Investments Purchased
|
2,190,433
|
—
|
|
Payable for Shares of Beneficial Interest Repurchased
|
46,339
|
2,786
|
|
Payable for Compensation of Manager (Note 3)
|
87,847
|
72,300
|
|
Payable for Distribution Fees (Note 3)
|
20,136
|
24,689
|
|
Payable to Transfer Agent (Note 3)
|
18,645
|
21,483
|
|
Payable for Collateral Received for Securities Loaned
|
9,967,763
|
889,100
|
|
Payable for Foreign Capital Gain Tax
|
—
|
—
|
|
Other Accrued Expenses
|
11,334
|
—
|
|
Total Liabilities
|
$12,342,497
|
$1,010,358
|
|
Net Assets
|
$102,218,956
|
$128,097,471
|
|
*
|
Includes securities on loan to brokers with market value of , $9,707,242; $870,546; $966,315; $1,302,562; $0: $0, respectively.)
|
|
Emerging
Markets
|
Risk
Parity
|
Foreign
Value
|
Foreign Value
Small Cap
|
|
$113,183,979
|
$42,803,730
|
$1,572,231,342
|
$271,952,137
|
|
39,771,232
|
—
|
—
|
—
|
|
517,989
|
92,064
|
—
|
—
|
|
274,501
|
113,781
|
388,882
|
340,380
|
|
—
|
—
|
84,297
|
—
|
|
177,476
|
39,973
|
3,816,845
|
566,751
|
|
107,790
|
—
|
—
|
—
|
|
8,005
|
—
|
7,963,743
|
387,553
|
|
16,353
|
7,189
|
65,106
|
28,019
|
|
$154,057,325
|
$43,056,737
|
$1,584,550,215
|
$273,274,840
|
|
—
|
—
|
—
|
—
|
|
109,093
|
—
|
1,290,048
|
309,991
|
|
98,549
|
21,327
|
1,339,925
|
231,859
|
|
29,676
|
344
|
204,639
|
38,452
|
|
25,621
|
6,649
|
258,011
|
42,418
|
|
1,052,608
|
1,401,525
|
—
|
—
|
|
25,363
|
—
|
—
|
—
|
|
4,414
|
3,092
|
109,373
|
9,156
|
|
$1,345,324
|
$1,432,937
|
$3,201,996
|
$631,876
|
|
$152,712,001
|
$41,623,800
|
$1,581,348,219
|
$272,642,964
|
|
Small Cap
|
Quality
|
|
|
Net Assets Consist Of:
|
||
|
Shares of Beneficial Interest
|
$73,218,044
|
$97,523,786
|
|
Undistributed Net Investment Income
|
(521,291)
|
1,044,738
|
|
Accumulated Net Realized Gain/(Loss) on Investments and Foreign Denominated Assets, Liabilities and Currency
|
12,767,732
|
11,814,686
|
|
Unrealized Appreciation/(Depreciation) of Investments and Foreign Denominated Assets, Liabilities and Currency
|
16,754,471
|
17,714,261
|
|
Net Assets
|
$102,218,956
|
$128,097,471
|
|
Investments at Cost– Non-affiliated securities
|
$94,240,972
|
$111,131,457
|
|
Investments at Cost– Affiliated securities
|
$—
|
$—
|
|
Net assets
|
||
|
Ordinary Shares
|
$93,443,990
|
$117,703,766
|
|
Institutional Shares
|
$8,774,966
|
$10,393,705
|
|
Shares of Beneficial Interest Outstanding (Unlimited Number of Shares Authorized)
|
||
|
Ordinary Shares
|
3,732,806
|
6,253,042
|
|
Institutional Shares
|
308,274
|
526,845
|
|
Net Asset Value and Offering Price Per Share
|
||
|
Ordinary Shares
|
$25.03
|
$18.82
|
|
Institutional Shares
|
$28.46
|
$19.73
|
|
Emerging
Markets
|
Risk
Parity
|
Foreign
Value
|
Foreign Value
Small Cap
|
|
$163,773,236
|
$39,839,289
|
$1,585,949,270
|
$224,351,424
|
|
3,715,424
|
306,529
|
27,886,626
|
3,688,577
|
|
(18,260,258)
|
47,570
|
(261,227,708)
|
1,354,730
|
|
3,483,599
|
1,430,412
|
228,740,031
|
43,248,233
|
|
$152,712,001
|
$41,623,800
|
$1,581,348,219
|
$272,642,964
|
|
$111,978,464
|
$41,463,570
|
$1,343,327,814
|
$228,693,197
|
|
$37,979,929
|
$—
|
$—
|
$—
|
|
$136,796,139
|
$1,646,790
|
$966,434,212
|
$176,203,556
|
|
$15,915,862
|
$39,977,010
|
$614,914,007
|
$96,439,408
|
|
5,959,937
|
155,054
|
53,053,562
|
13,693,373
|
|
683,035
|
3,742,870
|
33,699,538
|
7,473,669
|
|
$22.95
|
$10.62
|
$18.22
|
$12.87
|
|
$23.30
|
$10.68
|
$18.25
|
$12.90
|
PEAR TREE FUNDS
STATEMENT OF OPERATIONS
6 Months Ended September 30, 2014 (Unaudited)
|
Small Cap
|
Quality
|
|
|
Investment Income:
|
||
|
Dividends*
|
$641,770
|
$1,489,618
|
|
Interest
|
—
|
—
|
|
Sec Lending Income
|
79,727
|
1,716
|
|
Total Investment Income
|
$721,497
|
$1,491,334
|
|
Expenses:
|
||
|
Compensation of Manager (Note 3)
|
545,970
|
638,450
|
|
Distribution Fees, Ordinary Shares (Note 3)
|
124,848
|
146,906
|
|
Administrative Fees (Note 3)
|
16,815
|
19,196
|
|
Custodian and Fund Accounting Fees
|
14,000
|
16,000
|
|
Regulatory and Compliance (Note 3)
|
5,300
|
6,030
|
|
Transfer Agent Fees (Note 3):
|
||
|
Ordinary Shares
|
82,750
|
96,687
|
|
Institutional Shares
|
7,658
|
8,320
|
|
Audit and Legal
|
6,979
|
7,940
|
|
Registration Fees
|
16,904
|
15,933
|
|
Insurance
|
1,797
|
2,051
|
|
Compensation of Trustees (Note 3)
|
3,436
|
3,913
|
|
Printing
|
3,910
|
4,412
|
|
Miscellaneous
|
3,478
|
3,978
|
|
Total Expenses Before Waivers/Reimbursements/Reductions
|
833,845
|
969,816
|
|
Waivers and/or Reimbursements of Expenses (Note 3)
|
—
|
(163,284)
|
|
Expenses, Net
|
$833,845
|
$806,532
|
|
Net Investment Income/(Loss)
|
$(112,348)
|
$684,802
|
|
Realized and Unrealized Gain/(Loss) on Investments,
|
||
|
Foreign Currency, and Foreign Translation:
|
||
|
Net Realized Gain/(Loss) (Note 2) on:
|
||
|
Investments
|
5,928,468
|
8,275,276
|
|
Foreign Denominated Assets, Liabilities, and Currency
|
—
|
(264)
|
|
Change in Unrealized Appreciation/(Depreciation) of:
|
||
|
Investments
|
(16,620,344)
|
(3,995,637)
|
|
Foreign Denominated Assets, Liabilities, and Currency
|
—
|
(87)
|
|
Net Realized and Unrealized Gain/(Loss)
|
(10,691,876)
|
4,279,288
|
|
Net Increase/(Decrease) in Net Assets From Operations
|
$(10,804,224)
|
$4,964,090
|
|
*
|
Dividends are net of foreign withholding taxes of $3,915: $13,398: $314,208: $75,371: $2,459,125, and $380,879 respectively.
|
|
Emerging
Markets
|
Risk Parity
|
Foreign
Value
|
Foreign Value
Small Cap
|
|
$2,733,614
|
$586,862
|
$28,314,014
|
$4,412,363
|
|
—
|
—
|
19,660
|
545
|
|
28,530
|
8,606
|
—
|
—
|
|
$2,762,144
|
$595,468
|
$28,333,674
|
$4,412,908
|
|
601,981
|
121,054
|
8,032,147
|
1,205,798
|
|
178,412
|
1,795
|
1,232,208
|
214,037
|
|
23,614
|
5,830
|
238,917
|
33,627
|
|
79,323
|
89,933
|
213,000
|
63,000
|
|
7,399
|
1,817
|
74,806
|
10,440
|
|
117,059
|
1,192
|
802,374
|
139,555
|
|
13,340
|
31,486
|
501,663
|
56,507
|
|
15,492
|
2,392
|
98,501
|
15,377
|
|
19,045
|
6,738
|
46,610
|
21,621
|
|
2,522
|
623
|
25,497
|
3,596
|
|
4,804
|
1,181
|
48,561
|
6,789
|
|
5,385
|
1,316
|
54,531
|
7,528
|
|
4,873
|
1,203
|
49,371
|
6,925
|
|
1,073,249
|
266,560
|
11,418,186
|
1,784,800
|
|
—
|
—
|
—
|
—
|
|
$1,073,249
|
$266,560
|
$11,418,186
|
$1,784,800
|
|
$1,688,895
|
$328,908
|
$16,915,488
|
$2,628,108
|
|
1,548,236
|
276,186
|
(30,548)
|
4,317,821
|
|
(32,608)
|
(7,711)
|
(189,367)
|
(104,992)
|
|
2,319,228
|
415,982
|
(118,000,800)
|
(14,832,390)
|
|
(7,417)
|
(2,699)
|
(194,507)
|
(10,263)
|
|
3,827,439
|
681,758
|
(118,415,222)
|
(10,629,824)
|
|
$5,516,334
|
$1,010,666
|
$(101,499,734)
|
$(8,001,716)
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS
|
__________ Small Cap _________
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended
March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$(112,348)
|
$(340,386)
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
5,928,468
|
18,094,547
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
(16,620,344)
|
7,230,917
|
|
Net increase/(decrease) from operations
|
$(10,804,224)
|
$24,985,078
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$—
|
|
Institutional shares
|
—
|
—
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
—
|
|
Institutional shares
|
—
|
—
|
|
Total distributions
|
$—
|
$—
|
|
Fund share transactions (Note 8)
|
(4,158,899)
|
(17,078,515)
|
|
Contributions to capital from investment manager/brokers
|
—
|
—
|
|
Increase/(decrease) in net assets
|
$(14,963,123)
|
$7,906,563
|
|
Net assets beginning of period
|
117,182,079
|
109,275,516
|
|
Net assets end of period*
|
$102,218,956
|
$117,182,079
|
|
* Includes undistributed net investment income/(loss) of:
|
$(521,291)
|
$(408,943)
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
________________ Quality ______________
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$684,802
|
$1,308,717
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
8,275,012
|
8,532,529
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
(3,995,724)
|
6,564,610
|
|
Net increase/(decrease) from operations
|
$4,964,090
|
$16,405,856
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$(1,155,444)
|
|
Institutional shares
|
—
|
(114,089)
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
—
|
|
Institutional shares
|
—
|
—
|
|
Total distributions
|
$—
|
$(1,269,533)
|
|
Fund share transactions (Note 8)
|
(1,768,772)
|
8,156,939
|
|
Contributions to capital from investment manager/brokers
|
—
|
—
|
|
Increase/(decrease) in net assets
|
$3,195,318
|
$23,293,262
|
|
Net assets beginning of period
|
124,902,153
|
101,608,891
|
|
Net assets end of period*
|
$128,097,471
|
$124,902,153
|
|
* Includes undistributed net investment income/(loss) of:
|
$1,044,738
|
$360,382
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
______ Emerging Markets _______
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended
March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$1,688,895
|
$2,206,715
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
1,515,628
|
10,946,643
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
2,311,811
|
(20,581,171)
|
|
Net increase/(decrease) from operations
|
$5,516,334
|
$(7,427,813)
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$(1,723,075)
|
|
Institutional shares
|
—
|
(218,189)
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
—
|
|
Institutional shares
|
—
|
—
|
|
Total distributions
|
$—
|
$(1,941,264)
|
|
Fund share transactions (Note 8)
|
(81,547)
|
1,214,076
|
|
Contributions to capital from investment manager/brokers
|
—
|
140
|
|
Increase/(decrease) in net assets
|
$5,434,787
|
$(8,154,861)
|
|
Net assets beginning of period
|
147,277,214
|
155,432,075
|
|
Net assets end of period*
|
$152,712,001
|
$147,277,214
|
|
* Includes undistributed net investment income/(loss) of:
|
$3,715,424
|
$2,022,217
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
_________ Risk Parity _________
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended
March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$328,908
|
$16,355
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
268,475
|
(76,843)
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
413,283
|
1,017,130
|
|
Net increase/(decrease) from operations
|
$1,010,666
|
$956,642
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$(244)
|
|
Institutional shares
|
—
|
(11,782)
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
(4,284)
|
|
Institutional shares
|
—
|
(166,488)
|
|
Total distributions
|
$—
|
$(182,798)
|
|
Fund share transactions (Note 8)
|
6,889,599
|
32,948,441
|
|
Contributions to capital from investment manager/brokers
|
—
|
1,250
|
|
Increase/(decrease) in net assets
|
$7,900,265
|
$33,723,535
|
|
Net assets beginning of period
|
33,723,535
|
—
|
|
Net assets end of period*
|
$41,623,800
|
$33,723,535
|
|
* Includes undistributed net investment income/(loss) of:
|
$306,529
|
$(22,379)
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
________ Foreign Value ________
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended
March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$16,915,488
|
$13,340,825
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
(219,915)
|
(17,992,938)
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
(118,195,307)
|
243,330,147
|
|
Net increase/(decrease) from operations
|
$(101,499,734)
|
$238,678,034
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$(6,913,696)
|
|
Institutional shares
|
—
|
(1,994,868)
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
—
|
|
Institutional shares
|
—
|
—
|
|
Total distributions
|
$—
|
$(8,908,564)
|
|
Fund share transactions (Note 8)
|
203,946,812
|
363,655,310
|
|
Contributions to capital from investment manager/brokers
|
1,478
|
283
|
|
Increase/(decrease) in net assets
|
$102,448,556
|
$593,425,063
|
|
Net assets beginning of period
|
1,478,899,663
|
885,474,600
|
|
Net assets end of period*
|
$1,581,348,219
|
$1,478,899,663
|
|
* Includes undistributed net investment income/(loss) of:
|
$27,886,626
|
$10,971,136
|
PEAR TREE FUNDS
STATEMENT OF CHANGES IN NET ASSETS (continued)
|
Foreign Value
__________ Small Cap ___________
|
||
|
Semi-Annual Ended
September 30, 2014
(Unaudited)
|
Year Ended
March 31, 2014
|
|
|
Increase (Decrease) in Net Assets:
|
||
|
Operations:
|
||
|
Net investment income/(loss)
|
$2,628,108
|
$1,644,980
|
|
Net realized gain/(loss) on investments
|
||
|
Foreign denominated assets, liabilities, and currency
|
4,212,829
|
(1,645,390)
|
|
Unrealized appreciation/(depreciation) of investments, foreign denominated assets, liabilities, and currency
|
(14,842,653)
|
32,438,804
|
|
Net increase/(decrease) from operations
|
$(8,001,716)
|
$32,438,394
|
|
Distributions to shareholders from:
|
||
|
Net investment income
|
||
|
Ordinary shares
|
$—
|
$(1,131,114)
|
|
Institutional shares
|
—
|
(360,329)
|
|
Net realized gains
|
||
|
Ordinary shares
|
—
|
—
|
|
Institutional shares
|
—
|
—
|
|
Total distributions
|
$—
|
$(1,491,443)
|
|
Fund share transactions (Note 8)
|
94,905,741
|
39,526,627
|
|
Contributions to capital from investment manager/brokers
|
—
|
—
|
|
Increase/(decrease) in net assets
|
$86,904,025
|
$70,473,578
|
|
Net assets beginning of period
|
185,738,939
|
115,265,361
|
|
Net assets end of period*
|
$272,642,964
|
$185,738,939
|
|
* Includes undistributed net investment income/(loss) of:
|
$3,688,577
|
$1,060,469
|
PEAR TREE COLUMBIA SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$27.62
|
$22.50
|
$20.36
|
$19.92
|
$16.45
|
$10.22
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
(0.03)
|
(0.08)
|
(0.03)
|
(0.08)
|
0.04
|
0.11
|
|
Net realized and unrealized gain/(loss) on securities
|
(2.56)
|
5.20
|
2.17
|
0.57
|
3.52
|
6.15
|
|
Total from Investment Operations
|
(2.59)
|
5.12
|
2.14
|
0.49
|
3.56
|
6.26
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
—
|
—
|
(0.05)
|
(0.09)
|
(0.03)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
—
|
—
|
(0.05)
|
(0.09)
|
(0.03)
|
|
Net Asset Value, End of Period
|
$25.03
|
$27.62
|
$22.50
|
$20.36
|
$19.92
|
$16.45
|
|
Total Return
|
(9.38)%
|
22.76%
|
10.51%
|
2.48%
|
21.69%
|
61.27%
|
|
Net Assets, End of Period (000’s)
|
$93,444
|
$107,370
|
$101,275
|
$95,870
|
$113,675
|
$99,444
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (c)
|
||||||
|
Gross
|
1.55%
|
1.53%
|
1.63%
|
1.67%
|
1.64%
|
1.65%
|
|
Net
|
1.55%
|
1.53%
|
1.63%
|
1.67%
|
1.64%
|
1.65%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
(0.23)%
|
(0.30)%
|
(0.16)%
|
(0.44)%
|
0.23%
|
0.81%
|
|
Portfolio Turnover
|
47%
|
67%
|
54%
|
53%
|
71%
|
50%
|
|
Instutional Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$31.37
|
$25.48
|
$23.00
|
$22.50
|
$18.56
|
$11.51
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
—
|
(0.02)
|
0.02
|
(0.04)
|
0.09
|
0.20
|
|
Net realized and unrealized gain/(loss) on securities
|
(2.91)
|
5.91
|
2.46
|
0.63
|
3.98
|
6.91
|
|
Total from Investment Operations
|
(2.91)
|
5.89
|
2.48
|
0.59
|
4.07
|
7.11
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
—
|
—
|
(0.09)
|
(0.13)
|
(0.06)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
—
|
—
|
(0.09)
|
(0.13)
|
(0.06)
|
|
Net Asset Value, End of Period
|
$28.46
|
$31.37
|
$25.48
|
$23.00
|
$22.50
|
$18.56
|
|
Total Return
|
(9.28)%
|
23.12%
|
10.78%
|
2.69%
|
21.98%
|
61.83%
|
|
Net Assets, End of Period (000’s)
|
$8,775
|
$9,812
|
$8,000
|
$6,242
|
$7,806
|
$7,146
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (c)
|
||||||
|
Gross
|
1.30%
|
1.28%
|
1.38%
|
1.42%
|
1.39%
|
1.41%
|
|
Net
|
1.30%
|
1.28%
|
1.38%
|
1.42%
|
1.39%
|
1.41%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
0.02%
|
(0.08)%
|
0.07%
|
(0.19)%
|
0.48%
|
1.35%
|
|
Portfolio Turnover
|
47%
|
67%
|
54%
|
53%
|
71%
|
50%
|
|
(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 QUALITY FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$18.10
|
$15.85
|
$14.33
|
$12.36
|
$11.37
|
$8.24
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(c)
|
0.10(b)
|
0.19(b)
|
0.16(b)
|
0.17(b)
|
0.09(b)
|
0.05
|
|
Net realized and unrealized gain/(loss) on securities
|
0.62
|
2.24
|
1.52
|
1.92
|
1.01
|
3.10
|
|
Total from Investment Operations
|
0.72
|
2.43
|
1.68
|
2.09
|
1.10
|
3.15
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.18)
|
(0.16)
|
(0.12)
|
(0.11)
|
(0.02)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.18)
|
(0.16)
|
(0.12)
|
(0.11)
|
(0.02)
|
|
Net Asset Value, End of Period
|
$18.82
|
$18.10
|
$15.85
|
$14.33
|
$12.36
|
$11.37
|
|
Total Return
|
3.98%
|
15.40%
|
11.85%
|
16.99%
|
9.78%(d)
|
38.30%(d)
|
|
Net Assets, End of Period (000’s)
|
$117,704
|
$114,857
|
$98,033
|
$92,557
|
$62,920
|
$54,213
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (e)
|
||||||
|
Gross
|
1.54%
|
1.55%
|
1.62%
|
1.66%
|
1.93%
|
2.10%
|
|
Net including dividend and interest expense for securities sold short
|
N/A
|
N/A
|
N/A
|
N/A
|
1.89%
|
2.10%
|
|
Net excluding dividend and interest expense for securities sold short
|
1.28%
|
1.30%
|
1.46%
|
1.51%
|
1.85%
|
1.92%
|
|
Ratio of net investment income (loss) to average net assets (c)
|
1.05%
|
1.13%
|
1.11%
|
1.28%
|
0.84%
|
0.50%
|
|
Portfolio Turnover Excluding Short Positions
|
28%
|
35%
|
40%
|
68%
|
283%(f)
|
191%(f)
|
|
Institutional Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$18.95
|
$16.58
|
$14.95
|
$12.85
|
$11.80
|
$8.54
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(c)
|
0.13(b)
|
0.25(b)
|
0.24(b)
|
0.25(b)
|
0.12(b)
|
0.08
|
|
Net realized and unrealized gain/(loss) on securities
|
0.65
|
2.35
|
1.59
|
1.99
|
1.06
|
3.22
|
|
Total from Investment Operations
|
0.78
|
2.60
|
1.83
|
2.24
|
1.18
|
3.30
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.23)
|
(0.20)
|
(0.14)
|
(0.13)
|
(0.04)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.23)
|
(0.20)
|
(0.14)
|
(0.13)
|
(0.04)
|
|
Net Asset Value, End of Period
|
$19.73
|
$18.95
|
$16.58
|
$14.95
|
$12.85
|
$11.80
|
|
Total Return
|
4.12%
|
15.74%
|
12.37%
|
17.57%
|
10.07%(d)
|
38.71%(d)
|
|
Net Assets, End of Period (000’s)
|
$10,393
|
$10,045
|
$3,576
|
$2,558
|
$809
|
$591
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (e)
|
||||||
|
Gross
|
1.29%
|
1.31%
|
1.35%
|
1.41%
|
1.71%
|
1.81%
|
|
Net including dividend and interest expense for securities sold short
|
N/A
|
N/A
|
N/A
|
N/A
|
1.67%
|
1.81%
|
|
Net excluding dividend and interest expense for securities sold short
|
1.03%
|
1.03%
|
1.01%
|
1.00%
|
1.63%
|
1.63%
|
|
Ratio of net investment income (loss) to average net assets (c)
|
1.31%
|
1.38%
|
1.58%
|
1.85%
|
1.08%
|
0.75%
|
|
Portfolio Turnover Excluding Short Positions
|
28%
|
35%
|
40%
|
68%
|
283%(f)
|
191%(f)
|
Note: This Fund changed its investment strategy on January 27, 2011.
|
(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)
|
The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements.
|
|
(e)
|
Ratios of expenses to average net assets:
|
|
|
—
|
Gross (total expenses before fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any).
|
|
|
—
|
Net (total expenses net fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any).
|
|
(f)
|
Portfolio turnover is calculated on long security positions only. Short positions are generally held for less than one year.
|
PEAR TREE PANAGORA DYNAMIC EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$22.15
|
$23.56
|
$22.67
|
$25.18
|
$21.23
|
$12.06
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.25
|
0.33
|
0.37
|
0.41
|
0.24
|
0.18
|
|
Net realized and unrealized gain/(loss) on securities
|
0.55
|
(1.45)
|
0.85
|
(2.44)
|
3.96
|
9.05
|
|
Total from Investment Operations
|
0.80
|
(1.12)
|
1.22
|
(2.03)
|
4.20
|
9.23
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.29)
|
(0.33)
|
(0.48)
|
(0.25)
|
(0.06)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.29)
|
(0.33)
|
(0.48)
|
(0.25)
|
(0.06)
|
|
Net Asset Value, End of Period
|
$22.95
|
$22.15
|
$23.56
|
$22.67
|
$25.18
|
$21.23
|
|
Total Return
|
3.61%
|
(4.77)%
|
5.41%
|
(7.80)%
|
19.86%
|
76.56%
|
|
Net Assets, End of Period (000’s)
|
$136,796
|
$131,920
|
$140,267
|
$145,201
|
$176,386
|
$205,727
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (c)
|
||||||
|
Gross
|
1.37%
|
1.60%
|
1.76%
|
1.76%
|
1.77%
|
1.74%
|
|
Net
|
1.37%
|
1.60%
|
1.76%
|
1.76%
|
1.77%
|
1.74%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.10%
|
1.50%
|
1.66%
|
1.80%
|
1.05%
|
0.99%
|
|
Portfolio Turnover
|
30%
|
61%
|
25%
|
56%
|
68%
|
120%
|
|
Institutional Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$22.46
|
$23.88
|
$22.97
|
$25.53
|
$21.48
|
$12.19
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.28
|
0.39
|
0.43
|
0.41
|
0.42
|
0.27
|
|
Net realized and unrealized gain/(loss) on securities
|
0.56
|
(1.46)
|
0.87
|
(2.42)
|
3.89
|
9.11
|
|
Total from Investment Operations
|
0.84
|
(1.07)
|
1.30
|
(2.01)
|
4.31
|
9.38
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.35)
|
(0.39)
|
(0.55)
|
(0.26)
|
(0.09)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.35)
|
(0.39)
|
(0.55)
|
(0.26)
|
(0.09)
|
|
Net Asset Value, End of Period
|
$23.30
|
$22.46
|
$23.88
|
$22.97
|
$25.53
|
$21.48
|
|
Total Return
|
3.74%
|
(4.52)%
|
5.69%
|
(7.56)%
|
20.14%
|
77.02%
|
|
Net Assets, End of Period (000’s)
|
$15,916
|
$15,358
|
$15,165
|
$15,569
|
$11,267
|
$26,247
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (c)
|
||||||
|
Gross
|
1.12%
|
1.35%
|
1.49%
|
1.52%
|
1.51%
|
1.50%
|
|
Net
|
1.12%
|
1.35%
|
1.49%
|
1.52%
|
1.51%
|
1.50%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.34%
|
1.74%
|
1.92%
|
1.81%
|
1.94%
|
1.48%
|
|
Portfolio Turnover
|
30%
|
61%
|
25%
|
56%
|
68%
|
120%
|
|
(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 PANAGORA RISK PARITY EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
Ordinary Shares
|
|
|
For the
six months
ended
September 30,
|
June 27,
2013*
through
March 31,
|
|
|
2014
|
2014
|
|
|
Net Asset Value, Beginning of Period
|
$10.30
|
$10.00
|
|
Income from Investment Operations:
|
||
|
Net investment income (loss) (a)(b)
|
0.07
|
(0.03)
|
|
Net realized and unrealized gain/(loss) on securities
|
0.25
|
0.40
|
|
Total from Investment Operations
|
0.32
|
0.37
|
|
Less Distributions:
|
||
|
Dividends from net investment income
|
—
|
—
|
|
Distributions from realized capital gains
|
—
|
(0.07)
|
|
Total Distributions
|
—
|
(0.07)
|
|
Net Asset Value, End of Period
|
$10.62
|
$10.30
|
|
Total Return
|
3.11%
|
3.68%***
|
|
Net Assets, End of Period (000’s)
|
$1,647
|
$652
|
|
Ratios and Supplemental Data:
|
||
|
Ratios of expenses to average net assets: (c)
|
||
|
Gross
|
1.58%
|
2.10%**
|
|
Net
|
1.58%
|
2.10%**
|
|
Ratio of net investment income (loss) to average net assets (b)
|
1.31%
|
(0.43)%**
|
|
Portfolio Turnover
|
24%
|
42%***
|
|
Institutional Shares
|
Institutional Shares
|
|
|
For the
six months
ended
September 30,
|
June 27,
2013*
through
March 31,
|
|
|
2014
|
2014
|
|
|
Net Asset Value, Beginning of Period
|
$10.35
|
$10.00
|
|
Income from Investment Operations:
|
||
|
Net investment income (loss) (a)(b)
|
0.09
|
0.01
|
|
Net realized and unrealized gain/(loss) on securities
|
0.24
|
0.41
|
|
Total from Investment Operations
|
0.33
|
0.42
|
|
Less Distributions:
|
||
|
Dividends from net investment income
|
—
|
—
|
|
Distributions from realized capital gains
|
—
|
(0.07)
|
|
Total Distributions
|
—
|
(0.07)
|
|
Net Asset Value, End of Period
|
$10.68
|
$10.35
|
|
Total Return
|
3.19%
|
4.19%***
|
|
Net Assets, End of Period (000’s)
|
$39,977
|
$33,071
|
|
Ratios and Supplemental Data:
|
||
|
Ratios of expenses to average net assets: (c)
|
||
|
Gross
|
1.31%
|
1.69%**
|
|
Net
|
1.31%
|
1.69%**
|
|
Ratio of net investment income (loss) to average net assets (b)
|
1.64%
|
0.09%**
|
|
Portfolio Turnover
|
24%
|
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).
|
PEAR TREE POLARIS FOREIGN VALUE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$19.38
|
$15.83
|
$13.64
|
$14.68
|
$12.45
|
$6.97
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.20
|
0.19
|
0.15
|
0.12
|
0.07
|
0.13
|
|
Net realized and unrealized gain/(loss) on securities
|
(1.36)
|
3.49
|
2.12
|
(1.09)
|
2.31
|
5.71
|
|
Total from Investment Operations
|
(1.16)
|
3.68
|
2.27
|
(0.97)
|
2.38
|
5.84
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.13)
|
(0.08)
|
(0.07)
|
(0.15)
|
(0.36)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.13)
|
(0.08)
|
(0.07)
|
(0.15)
|
(0.36)
|
|
Net Asset Value, End of Period
|
$18.22
|
$19.38
|
$15.83
|
$13.64
|
$14.68
|
$12.45
|
|
Total Return
|
(5.99)%
|
23.28%
|
16.73%
|
(6.55)%
|
19.17%(c)
|
84.05%(c)
|
|
Net Assets, End of Period (000’s)
|
$966,434
|
$908,108
|
$705,210
|
$386,011
|
$369,550
|
$369,626
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (d)
|
||||||
|
Gross
|
1.52%
|
1.54%
|
1.59%
|
1.64%
|
1.62%
|
1.62%
|
|
Net
|
1.52%
|
1.54%
|
1.59%
|
1.64%
|
1.62%
|
1.62%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.03%
|
1.11%
|
1.04%
|
0.93%
|
0.56%
|
1.17%
|
|
Portfolio Turnover
|
0%
|
3%
|
10%
|
18%
|
9%
|
24%
|
|
Institutional Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$19.39
|
$15.83
|
$13.63
|
$14.68
|
$12.45
|
$6.98
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.22
|
0.24
|
0.17
|
0.14
|
0.10
|
0.14
|
|
Net realized and unrealized gain/(loss) on securities
|
(1.36)
|
3.48
|
2.15
|
(1.09)
|
2.31
|
5.71
|
|
Total from Investment Operations
|
(1.14)
|
3.72
|
2.32
|
(0.95)
|
2.41
|
5.85
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.16)
|
(0.12)
|
(0.10)
|
(0.18)
|
(0.38)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total Distributions
|
—
|
(0.16)
|
(0.12)
|
(0.10)
|
(0.18)
|
(0.38)
|
|
Net Asset Value, End of Period
|
$18.25
|
$19.39
|
$15.83
|
$13.63
|
$14.68
|
$12.45
|
|
Total Return
|
(5.88)%
|
23.58%
|
17.07%
|
(6.34)%
|
19.48%(c)
|
84.12%(c)
|
|
Net Assets, End of Period (000’s)
|
$614,914
|
$570,792
|
$180,265
|
$98,109
|
$78,790
|
$68,067
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (d)
|
||||||
|
Gross
|
1.27%
|
1.28%
|
1.33%
|
1.39%
|
1.37%
|
1.37%
|
|
Net
|
1.27%
|
1.28%
|
1.33%
|
1.39%
|
1.37%
|
1.37%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.23%
|
1.37%
|
1.22%
|
1.07%
|
0.79%
|
1.29%
|
|
Portfolio Turnover
|
0%
|
3%
|
10%
|
18%
|
9%
|
24%
|
|
(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)
|
The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements.
|
|
(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 of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any).
|
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
|
Ordinary Shares
|
||||||
|
For the
six months
ended
September 30,
|
Period Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$13.17
|
$10.50
|
$9.02
|
$11.19
|
$10.28
|
$4.82
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.14
|
0.14
|
0.14
|
0.21
|
0.09
|
0.07
|
|
Net realized and unrealized gain/(loss) on securities
|
(0.44)
|
2.66
|
1.50
|
(1.29)
|
1.25
|
5.42
|
|
Total from Investment Operations
|
(0.30)
|
2.80
|
1.64
|
(1.08)
|
1.34
|
5.49
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.13)
|
(0.16)
|
(0.10)
|
(0.08)
|
(0.03)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
(0.99)
|
(0.35)
|
—
|
|
Total Distributions
|
—
|
(0.13)
|
(0.16)
|
(1.09)
|
(0.43)
|
(0.03)
|
|
Net Asset Value, End of Period
|
$12.87
|
$13.17
|
$10.50
|
$9.02
|
$11.19
|
$10.28
|
|
Total Return
|
(2.28)%
|
26.80%
|
18.34%
|
(8.20)%
|
13.12%(c)
|
114.00%(c)
|
|
Net Assets, End of Period (000’s)
|
$176,204
|
$138,321
|
$92,806
|
$72,737
|
$78,307
|
$124,971
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (d)
|
||||||
|
Gross
|
1.55%
|
1.58%
|
1.66%
|
1.70%
|
1.69%
|
1.64%
|
|
Net
|
1.55%
|
1.58%
|
1.66%
|
1.70%
|
1.69%
|
1.64%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.14%
|
1.23%
|
1.55%
|
2.14%
|
0.82%
|
0.82%
|
|
Portfolio Turnover
|
3%
|
4%
|
9%
|
22%
|
54%
|
14%
|
|
Institutional Shares
|
||||||
|
For the
six months
ended
September 30,
|
Years Ended March 31,
|
|||||
|
2014
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
|
Net Asset Value, Beginning of Period
|
$13.19
|
$10.51
|
$9.03
|
$11.21
|
$10.30
|
$4.82
|
|
Income from Investment Operations:
|
||||||
|
Net investment income (loss) (a)(b)
|
0.15
|
0.16
|
0.17
|
0.24
|
0.09
|
0.11
|
|
Net realized and unrealized gain/(loss) on securities
|
(0.44)
|
2.67
|
1.49
|
(1.30)
|
1.28
|
5.41
|
|
Total from Investment Operations
|
(0.29)
|
2.83
|
1.66
|
(1.06)
|
1.37
|
5.52
|
|
Less Distributions:
|
||||||
|
Dividends from net investment income
|
—
|
(0.15)
|
(0.18)
|
(0.13)
|
(0.11)
|
(0.04)
|
|
Distributions from realized capital gains
|
—
|
—
|
—
|
(0.99)
|
(0.35)
|
—
|
|
Total Distributions
|
—
|
(0.15)
|
(0.18)
|
(1.12)
|
(0.46)
|
(0.04)
|
|
Net Asset Value, End of Period
|
$12.90
|
$13.19
|
$10.51
|
$9.03
|
$11.21
|
$10.30
|
|
Total Return
|
(2.20)%
|
27.16%
|
18.59%
|
(7.99)%
|
13.40%(c)
|
114.55%(c)
|
|
Net Assets, End of Period (000’s)
|
$96,439
|
$47,418
|
$22,459
|
$20,567
|
$23,973
|
$8,103
|
|
Ratios and Supplemental Data:
|
||||||
|
Ratios of expenses to average net assets: (d)
|
||||||
|
Gross
|
1.31%
|
1.33%
|
1.41%
|
1.43%
|
1.44%
|
1.43%
|
|
Net
|
1.31%
|
1.33%
|
1.41%
|
1.43%
|
1.44%
|
1.43%
|
|
Ratio of net investment income (loss) to average net assets (b)
|
2.27%
|
1.47%
|
1.88%
|
2.45%
|
0.92%
|
1.27%
|
|
Portfolio Turnover
|
3%
|
4%
|
9%
|
22%
|
54%
|
14%
|
|
(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)
|
The total return would have been lower if certain fees had not been waived or if custodial fees had not been reduced by credits allowed by the custodian. See Note 3 to the financial statements.
|
|
(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 of fee waivers, reimbursements by the investment advisor, and custody earnings credits, if any).
|
PEAR TREE FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 2014 (unaudited)
1. Organization of the Trust
Pear Tree Funds, (the “Trust”) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust currently has six series (each a “Fund” and collectively the “Funds”) each with a distinct investment objective.
Pear Tree Columbia Small Cap Fund (“Small Cap”) seeks maximum long-term capital appreciation.
Pear Tree Quality Fund (“Quality”) seeks long-term growth of capital.
Pear Tree PanAgora Dynamic Emerging Markets Fund (“Emerging Markets”) seeks long-term growth of capital.
Pear Tree PanAgora Risk Parity Emerging Markets Fund (“Risk Parity”) seeks long-term growth of capital.
Pear Tree Polaris Foreign Value Fund (“Foreign Value”) seeks long-term capital growth and income.
Pear Tree Polaris Foreign Value Small Cap Fund (“Foreign Value Small Cap”) seeks long-term capital growth and income.
Each of the Funds is a “non-diversified company,” within the meaning of the 1940 Act, other than Emerging Markets.
Each Fund offers two classes of shares, designated as Ordinary Shares and Institutional Shares. The classes differ principally in their respective expense structure and minimum investment requirements. Each class of shares represents an interest in the same portfolio of investments of the respective Fund and has equal rights to voting (except as noted in the following sentence), redemptions, dividends and liquidation. Ordinary Shares bear distribution (Rule 12b-1) fees and have exclusive voting rights with respect to the distribution plan that has been adopted by Ordinary Share shareholders. There is no distribution plan for Institutional Shares.
At times, a Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making it more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors. To the extent that a Fund is permitted to invest in foreign markets, emerging markets or countries with limited or developing markets such investments may subject the Fund to a greater degree of risk than in the U.S. market or a developed market. Risks associated with these foreign and developing markets include political, social or economic factors and may affect the price of a Fund’s investments and income generated by these investments, as well as a Fund’s ability to repatriate such amounts. Information regarding each Fund’s principal risks is contained in the Funds’ prospectus. Please refer to the Funds’ prospectus when considering a Fund’s risks.
2. Significant Accounting Policies
Each Fund’s financial statements have been prepared in conformity with U.S. generally accepted accounting principles. Those principals require the management of the Funds to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income, expenses and gains and losses on investments during the reporting year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by each Fund in the preparation of its financial statements, which are consistent with those policies generally accepted in the investment company industry.
Security Valuation
Portfolio securities are valued each business day generally at the last reported sale price on the principal exchange or market on which they are traded. If on a business day there is no such reported sale, the securities generally are valued at the mean between the last reported bid and asked prices. For securities, where no such sales have been reported, a Fund may value such securities at the last reported bid price. In the event that there is information suggesting that valuation of such securities based upon bid and/or asked prices may not be accurate, a Fund may value such securities in good faith at fair value in accordance with procedures (the “Valuation Procedures”) established by the Funds’ Trustees (the “Trustees”), which may include a determination to value such securities at the last reported sales price. Short-term investments that mature in 60 days or less are valued at amortized cost. Securities quoted in foreign currencies are translated into U.S. dollars based upon the prevailing exchange rate at the time of valuation. Other assets and securities for which no quotations are readily available are valued at fair value as determined in good faith using the Valuation Procedures. As a result, changes in the value of those currencies in relation to the U.S. dollar may affect a Fund’s net asset value. Because foreign markets may be open at different times than when the New York Stock Exchange is open for regular trading, the value of a Fund’s shares may change on days when shareholders are not able to buy or sell them. If events materially affecting the values of a Fund’s foreign investments occur between the close of foreign markets and the close of regular trading on the New York Stock Exchange, these investments may be valued at their fair value as determined in good faith using the Valuation Procedures.
The Funds’ Valuation Procedures include fair valuation accounting standards that establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs used to develop the measurements of fair value. These inputs are summarized in the three broad levels listed below:
|
|
•
|
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that a Fund has the ability to access.
|
|
|
•
|
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
|
•
|
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing a Fund’s own assumptions about the assumptions a market participant would use in valuing the asset, liability, and would be based on the best information available.
|
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of the markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers in changing an investment’s assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2014:
|
Quoted Prices
In Active
Markets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
Market
Value at
September 30,
2014
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
|
Small Cap
|
||||
|
Common Stock*
|
$88,323,972
|
$—
|
$—
|
$88,323,972
|
|
Depository Receipts
|
806,421
|
—
|
—
|
806,421
|
|
Real Estate Inv. Trusts
|
11,308,726
|
—
|
—
|
11,308,726
|
|
Short Term Investments
|
9,967,763
|
588,561
|
—
|
10,556,324
|
|
Total
|
$110,406,882
|
$588,561
|
—
|
$110,995,443
|
|
Quality
|
||||
|
Common Stock*
|
115,116,422
|
—
|
—
|
$115,116,422
|
|
Depository Receipts
|
12,141,299
|
—
|
—
|
12,141,299
|
|
Short Term Investments
|
889,100
|
698,983
|
—
|
1,588,083
|
|
Total
|
$128,146,821
|
$698,983
|
—
|
$128,845,804
|
|
Emerging Markets
|
||||
|
Common Stock*
|
95,948,928
|
2,007,239
|
—
|
97,956,167
|
|
Common Stock Units
|
642,438
|
—
|
—
|
642,438
|
|
Depository Receipts
|
9,866,305
|
—
|
—
|
9,866,305
|
|
Mutual Funds
|
40,150,924
|
—
|
—
|
40,150,924
|
|
Preferred Stock
|
2,874,118
|
—
|
—
|
2,874,118
|
|
Real Estate Inv. Trusts
|
412,651
|
—
|
—
|
412,651
|
|
Short Term Investments
|
1,052,608
|
517,989
|
—
|
1,570,597
|
|
Total
|
$150,947,972
|
$2,525,228
|
—
|
$153,473,200
|
|
Risk Parity
|
||||
|
Common Stock*
|
32,086,581
|
2,197,571
|
—
|
34,284,152
|
|
Common Stock Units
|
157,900
|
—
|
—
|
157,900
|
|
Depository Receipts
|
3,812,959
|
—
|
—
|
3,812,959
|
|
Mutual Funds
|
1,845,026
|
—
|
—
|
1,845,026
|
|
Preferred Stock
|
1,117,193
|
—
|
—
|
1,117,193
|
|
Real Estate Inv. Trusts
|
184,975
|
—
|
—
|
184,975
|
|
Short Term Investments
|
1,401,525
|
92,064
|
—
|
1,493,589
|
|
Total
|
$40,606,159
|
$2,289,635
|
$—
|
$42,895,794
|
|
Foreign Value
|
||||
|
Common Stock*
|
1,337,547,862
|
31,799,284
|
—
|
1,369,347,146
|
|
Depository Receipts
|
112,078,760
|
—
|
—
|
112,078,760
|
|
Short Term Investments
|
90,805,436
|
—
|
—
|
90,805,436
|
|
Total
|
$1,540,432,058
|
$31,799,284
|
—
|
$1,572,231,342
|
|
Foreign Value Small Cap
|
||||
|
Common Stock*
|
240,755,431
|
14,211,595
|
80,420
|
255,047,446
|
|
Preferred Stock
|
5,479,094
|
—
|
—
|
5,479,094
|
|
Short Term Investments
|
11,425,597
|
—
|
—
|
11,425,597
|
|
Total
|
$257,660,122
|
$14,211,595
|
$80,420
|
$271,952,137
|
The following is a reconciliation of Level 3 assets for which unobservable inputs were used to determine fair value.
|
Risk Parity
Common Stock
|
Foreign Value
Small Cap
Common Stock
|
|
|
Balances as of 3/31/2014
|
$70,005
|
$81,523
|
|
Realized gain (loss)
|
$—
|
$—
|
|
Changed in unrealized appreciation (depreciation)
|
$5,838
|
$(1,103)
|
|
Purchases
|
$—
|
$—
|
|
Sales
|
$—
|
$—
|
|
Transfer out to Level 1
|
$(75,843)
|
$—
|
|
Balances as of 9/30/2014
|
$—
|
$80,420
|
|
*
|
Refer to Schedule of Investments for breakout by industry or country.
|
|
*
|
Transfers between Levels are recognized at the end of the reporting period.
|
|
*
|
Emerging Markets Fund transferred $1,762,399 out of Level 2 into Level 1. Risk Parity transferred $2,733,603 out of Level 2 into Level 1, and $75,843 out of Level 3 into Level 1. Small Cap, Quality, Foreign Value and Foreign Value Small Cap Funds had no transfers at period end.
|
|
*
|
Common stock labeled as Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
|
|
Emerging
Markets
|
Risk Parity
|
Foreign Value
|
Foreign Value
Small Cap
|
|
|
Banks
|
$972,081
|
$201,422
|
$—
|
$—
|
|
Chemicals
|
—
|
121,232
|
—
|
—
|
|
Construction Materials
|
—
|
37,471
|
—
|
—
|
|
Diversified Financials
|
567,277
|
—
|
—
|
—
|
|
Diversified Telecommunications
|
—
|
91,599
|
—
|
—
|
|
Electric Utilities
|
268,066
|
218,847
|
—
|
5,506,367
|
|
Electronic Equipment & Instruments
|
199,815
|
—
|
—
|
4,629,297
|
|
Food and Drug Retailing
|
—
|
140,032
|
—
|
—
|
|
Food Products
|
—
|
—
|
—
|
4,075,931
|
|
Health Care Providers & Services
|
253,519
|
—
|
—
|
|
|
Hotels, Restaurants & Leisure
|
—
|
115,137
|
—
|
—
|
|
Media
|
—
|
83,926
|
—
|
—
|
|
Multiline Retail
|
—
|
113,997
|
—
|
—
|
|
Oil & Gas
|
—
|
299,915
|
31,799,284
|
—
|
|
Real Estate
|
—
|
51,053
|
—
|
—
|
|
Specialty Retail
|
—
|
79,629
|
—
|
—
|
|
Transportation Infrastructure
|
—
|
244,765
|
—
|
—
|
|
Wireless Telecommunication Services
|
—
|
145,027
|
—
|
—
|
|
$2,007,239
|
$2,197,571
|
$31,799,284
|
$14,211,595
|
|
*
|
Common stock labeled as Level 3 balance consists of the market value of the associated Level 3 investments in the following industries:
|
|
Emerging
Markets
|
Risk Parity
|
Foreign Value
|
Foreign Value
Small Cap
|
|
|
Leisure Equipment & Products
|
$—
|
$—
|
$—
|
$80,420
|
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2014;
|
Common
Stock
|
Fair Value
Sept. 30, 2014
|
Valuation
Methodologies
|
Unobservable
Input (1)
|
Range
|
Impact to
Valuation
from a
Decrease
in Input (2)
|
|
Foreign Value Small Cap
|
$80,420
|
Market
Comparable
|
Comparability
Adjustment
|
100%
|
Decrease
|
|
1.
|
In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, and company specific developments.
|
|
2.
|
This column represents the directional change in the fair value of the Level 3 investments that would result from a decrease to the corresponding unobservable input. An increase to the observable input would have the opposite effect.
|
Offsetting Assets and Liabilities
The Funds have adopted financial reporting rules regarding offsetting assets and liabilities and related arrangements to enable users of their financial statements to understand the effect of those arrangements on their financial position. During the period ended September 30, 2014, the Funds were not subject to any master netting arrangements or similar agreements.
The table below shows the offsetting assets and liabilities relating to the repurchase agreement and the securities lending agreements shown on the Statement of Assets and Liabilities.
|
Gross Amounts
of Recognized
Assets
|
Gross Amounts
Offset in the
Statement of
Financial Position
|
Net Amounts
Presented in the
Statement of
Financial Position
|
Gross Amounts not offset in the
statement of Financial Position
|
|||
|
Repurchase
Agreements
|
Financial
Instruments
|
Collateral
Pledged
(Received)
|
Net
Amount
|
|||
|
Small Cap
|
$588,561
|
$—
|
$588,561
|
$588,561
|
$—
|
$—
|
|
Quality
|
698,983
|
—
|
698,983
|
698,983
|
—
|
—
|
|
Emerging Markets
|
517,989
|
—
|
517,989
|
517,989
|
—
|
—
|
|
Risk Parity
|
92,064
|
—
|
92,064
|
92,064
|
—
|
—
|
|
Gross Amounts
of Recognized
Liabilities
|
Gross Amounts
Offset in the
Statement of
Financial Position
|
Net Amounts
Presented in the
Statement of
Financial Position
|
Gross Amounts not offset in the
statement of Financial Position
|
|||
|
Security
Lending
|
Financial
Instruments
|
Collateral
Pledged
(Received)
|
Net
Amount
|
|||
|
Small Cap
|
$9,967,763
|
$—
|
$9,967,763
|
$9,967,763(a)
|
$—
|
$—
|
|
Quality
|
889,100
|
—
|
889,100
|
889,100(a)
|
—
|
—
|
|
Emerging Markets
|
1,052,608
|
—
|
1,052,608
|
1,052,608(a)
|
—
|
—
|
|
Risk Parity
|
1,401,525
|
—
|
1,401,525
|
1,401,525(a)
|
—
|
—
|
|
(a)
|
Collateral for securities on loan is included in the Schedule of Investments.
|
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Guarantees and Indemnifications
In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be minimal.
Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financials were issued. There were no events or transactions that occurred during the period that materially impacted the accounts or disclosures in the Funds’ financial statements.
Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date (the date the order to buy or sell is executed). Dividend income, less foreign taxes withheld, is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have passed are recorded as soon as a Fund becomes aware of the ex-dividend data in the exercise of reasonable diligence. Distributions received on securities that represent a return of capital or a capital gain is recorded as a reduction of cost of investments and/or as a realized gain. Each Fund estimates the components of distributions that may be considered nontaxable distributions or capital gain distributions for tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis. Each Fund’s investment income and realized and unrealized gains and losses are allocated among classes based upon the daily relative net assets.
Repurchase Agreements
The Funds’ custodian takes possession of securities collateralizing repurchase agreements through the federal book-entry system. Collateral is marked-to-market daily to confirm that the market value of the underlying assets remains sufficient to protect the Funds. The Funds may experience costs and delays in liquidating the collateral if the issuer defaults or enters into bankruptcy.
Counterparty Credit Risk
Some transactions in which a Fund may engage involve instruments that are not traded on an exchange. Rather, these instruments are traded between counterparties based on contractual relationships. As a result, a Fund is subject to the risk that the counterparty will not perform obligations under the related contract. Although a Fund expects to enter into transactions only with counterparties believed by the Fund’s investment manager or Sub-Advisor to be creditworthy, there can be no assurance that a counterparty will not default and that the Fund will not sustain a loss on a transaction as a result.
The purchase of participatory notes involves risk that is in addition to the risks normally associated with a direct investment in the underlying securities. A Fund is subject to the risk that the issuer of the participatory note (i.e., the issuing bank or broker-dealer), which is the only responsible party under the note, is unable or refuses to perform under the terms of the participatory note.
Foreign Currency Transactions
All monetary items denominated in foreign currencies are translated into U.S. dollars based on the prevailing exchange rate at the close of each business day. Income and expenses denominated in foreign currencies are translated at the prevailing rates of exchange when accrued or incurred.
Reported net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on investment transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments.
Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts to manage their exposure to fluctuations in certain foreign currencies. A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a set price. The forward currency contracts are valued at the forward rate and are marked-to-market daily. The change in market value is recorded by a Fund as an unrealized gain or loss. When the contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it is opened and the value at the time it is closed. In addition to the risks of financial investments mentioned above, risks arise from unanticipated movements in currency values.
There were no open foreign currency contracts held by any Fund at September 30, 2014.
Securities Lending
To generate additional income, each of Small Cap, Quality, Emerging Markets and Risk Parity use Securities Finance Trust Company (“eSecLending”) as lending agent. Small Cap , Quality , Emerging Markets and Risk Parity may each lend up to 30 percent of its assets pursuant to certain agreements (“Securities Lending Agreements”) requiring that the loan be continuously secured by cash or securities. Securities loaned are arranged by eSecLending with certain pre-approved borrowers, typically broker-dealers acting on behalf of their clients. The borrowers are required to provide cash or securities as collateral against loaned securities in the amount of 105 percent of the market value of borrowings for Emerging Markets and Risk Parity, and 102 percent of the borrowings for the Small Cap and Quality. Collateral is marked-to-market daily. Cash collateral is invested in a registered money market fund.
Risks such as delay in recovery of securities may occur should the borrower of the securities fail financially or should the value of the securities loaned increase above the value of the collateral received. eSecLending provides indemnification insurance via highly rated third party insurers to cover these potential risks.
At September 30, 2014, the following Funds had collateral and loans outstanding of:
|
Value of Collateral
|
Value of Loaned Securities
|
|
|
Small Cap
|
$9,967,763
|
9,707,242
|
|
Quality
|
889,100
|
870,546
|
|
Emerging Markets
|
1,052,608
|
966,315
|
|
Risk Parity
|
1,401,525
|
1,302,562
|
Expenses and Class Allocations
The majority of the expenses of the Funds are attributed to the individual Fund and Class for which they are incurred. Expenses that are not attributed to a specific Fund are allocated in proportion to the respective net assets of the Funds. Expenses allocable to a Fund are borne pro rata by the holders of both classes of shares of such Fund, except that 12b-1 Plan expenses will not be borne by the holders of Institutional Shares.
Distribution (12b-1) fees on Ordinary Shares are calculated based on the average daily net asset value attributable to the Ordinary Shares of the respective Fund. Institutional Shares are not subject to distribution (12b-1) fees. Shareholders of each class share all expenses and fees paid to the transfer agent, Pear Tree Institutional Services, for its services, which are allocated based on the net assets in each class and the ratable allocation of related out-of-pocket expenses. Income, common expenses and realized and unrealized gains and losses are calculated at the Fund level and allocated daily to each class of shares based on their respective percentage of adjusted net assets at the beginning of the day. (See Note 3.)
Distributions to Shareholders
Distributions to shareholders are recorded as of the ex-dividend date. Distributions paid by each Fund with respect to each class of shares are calculated in the same manner, at the same time, and in the same amount, except that Ordinary Shares incur distribution (12b-1) fees while Institutional Shares do not. Distributions from net investment income for each Fund, if any, are declared and paid annually. Distributions from net realized gains for each Fund, if any, are generally declared and paid annually.
3. Management Fee, Advisory Contracts and Other Affiliate Transactions
The Funds have entered into a management agreement (the “Management Agreement”) with Pear Tree Advisors, Inc. (the “Manager”). Compensation of the Manager, for management and administration of the Funds, including selection and monitoring of the portfolio advisors, is paid monthly based on the average daily net asset value of each Fund for the month. The annual rate of such fees is 1.00 percent of the average daily total net assets of each of the Funds except for Risk Parity an annual rate 0.60 percent of the average daily total net assets.
The Manager has agreed that from December 1, 2013 to July 31, 2015, it will waive such portion of the management fees that it would otherwise receive under the Management Agreement for serving as investment manager to Quality, such that the aggregate management fee that the Manager would receive during the waiver period for serving as the investment manager of Quality would be calculated using (a) an annual rate of 0.75 percent for the first $125 million of Quality’s net assets, and (b) an annual rate of 0.50 percent for Quality’s net assets in excess of $125 million. The Trustees of the Trust have the right to terminate this arrangement in their discretion.
In addition, under the Management Agreement, the Manager has agreed to reduce its compensation, and if necessary, assume expenses, with respect to Small Cap Fund to the extent that the total expenses of Small Cap Fund individually exceed 2 percent of average net assets for any fiscal year. Small Cap Fund expenses subject to this limitation are exclusive of brokerage, interest, taxes and extraordinary expenses, which include incremental custody costs associated with international securities. Expenses are calculated gross of custody credits, if applicable.
For the six months ended September 30, 2014, aggregate management fees exclusive of fee waivers and Fund reimbursements, from all Funds were $11,145,400.
The Manager has entered into sub-advisory contracts with the following sub advisors (collectively the “Sub-Advisors”) to provide investment sub-advisory services to the following Funds: Columbia Partners, L.L.C., Investment Management (Small Cap and Quality), PanAgora Asset Management, Inc. (Emerging Markets and Risk Parity), and Polaris Capital Management, LLC (Foreign Value and Foreign Value Small Cap).
For services rendered, the Manager pays to the Sub-Advisors of a Fund a fee based on a percentage of the average daily total net assets of the Fund. The fee for each Fund is determined separately. Currently, the fees paid by the Manager to the Sub-Advisors of the Funds are as follows:
|
Small Cap
|
0.47% of average daily total net assets
|
|
Quality
|
0.10% of the first $100 million and
|
|
0.08% of amounts in excess of $100 million but less than $250 million and
|
|
|
0.06% of amounts in excess of $250 million of average daily total net assets
|
|
|
Emerging Markets
|
0.47% of the first $300 million and
|
|
0.50% of amounts in excess of $300 million of average daily total net assets
|
|
|
Risk Parity
|
0.25% of the first $300 million and
|
|
0.30% of amounts in excess of $300 million but less than $600 million and
|
|
|
0.35% of amounts in excess of $600 million of average daily total net assets
|
|
|
Foreign Value
|
0.35% of the first $35 million and
|
|
0.40% of amounts in excess of $35 million but less than $200 million and
|
|
|
0.50% of assets in excess of $200 million of average daily total net assets
|
|
|
Foreign Value Small Cap
|
0.35% of the first $35 million and
|
|
0.40% of amounts in excess of $35 million but less than $200 million and
|
|
|
0.50% of amounts in excess of $200 million of average daily total net assets.
|
The Funds have entered into a distribution agreement (the “Distribution Agreement”) with U.S. Boston Capital Corporation (the “Distributor”). For its services under the Distribution Agreement, the Distributor receives the distribution (12b-1) fees, that is, 0.25 percent of the average daily net asset value of the Ordinary Shares of the Funds, payable monthly.
Holders of Institutional Shares pay no portion of the 12b-1 Plan expenses of the Funds and are not entitled to vote on matters involving the 12b-1 Plan. During the six months ended September 30, 2014 the aggregate distribution fees of the Funds were $1,898,206.
Transfer agent functions are provided to the Funds by Pear Tree Institutional Services, a division of the Manager (the “Transfer Agent”) pursuant to a transfer agent agreement (the “Transfer Agent Agreement”). The Transfer Agent Agreement provides for base fees that are payable to the Transfer Agent at an annual rate of 0.16 percent of the average daily total net asset value of each class of shares of the Funds and for reimbursement of out of pocket expenses. During the six months ended September 30, 2014, the aggregate fees of the Funds were $1,858,591.
Pursuant to an Administration Agreement, the Manager provides certain administrative services to the Funds. During the six months ended September 30, 2014, fees paid pursuant to this agreement were $337,999.
The Trustees have approved reimbursement to the Manager for a percentage of the compensation paid by the Manager to the Trust’s Chief Compliance Officer. For the six months ended September 30, 2014, the Trust reimbursed the Manager for the Chief Compliance Officer’s compensation in the amount of $105,792.
Custody and fund accounting services are provided by State Street. Custody credits generated by interest earned on un-invested cash balances maintained by the Funds are used to offset custodial expenses of the Funds.
For the six months ended September 30, 2014, each Trustee who was not an “interested person” of the Trust, as that term is defined in the 1940 Act, received a fee for serving in that role of $29,500, and each of the Chairman of the Trustees’ Audit Committee and the Lead Independent Trustee of the Trustees received an additional $3,000. Compensation for the services of the Trustee who was an interested person of the Trust during that period was paid by the Manager. All fees paid to the Trustees were allocated among the Funds in proportion to their respective net assets.
As of September 30, 2014,the market value of all securities of affiliated companies held in Emerging Markets Fund amounted to $39,771,232, representing 26.0% of net assets.
|
Share
Balance
3/31/14
|
Purchases
|
Sales
|
Share
Balance
9/30/14
|
Realized
Gain
(Loss)
|
Dividend
Income
|
Value at
9/30/14
|
Acquisition
Cost
|
|
3,179,734
|
544,164
|
—
|
3,723,898
|
—
|
$—
|
$39,771,232
|
$37,979,929
|
4. Purchases and Sales
During the six months ended September 30, 2014, purchases of investment securities other than U.S. Government obligations and short-term investments for Small Cap, Quality, Emerging Markets, Risk Parity, Foreign Value, and Foreign Value Small Cap, were $51,281,104, $35,153,492, $48,640,505, $16,483,003, $224,406,450, and $106,776,190 respectively. Sales of such securities for the Funds were $57,538,673, $36,478,964, $47,136,905, $9,383,496, $43,747, and $7,009,911 respectively.
5. Contingent Liability
The Trust maintains a joint fidelity bond with the Funds’ Transfer Agent through ICI Mutual Insurance Company (“ICI Mutual”). The annual premium is allocated among the Funds and the Transfer Agent. Additionally, the Funds have committed to ICI Mutual up to 300 percent of the annual premium, one-third of which was provided in cash, with each Fund’s pro rata portion recorded as an asset. The remainder is secured with an irrevocable letter of credit.
6. Concentration of Risk
The relatively large investments of Emerging Markets and Risk Parity in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of each Fund’s investments and the income they generate, as well as each Fund’s ability to repatriate such amounts.
7. Federal Income Taxes
It is the policy of the Funds to distribute all of their taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code (“IRC”) applicable to regulated investment companies. Therefore no Federal income tax provision is required.
The tax components of capital shown in the following tables represent: (1) losses or deductions the portfolios may be able to offset against income and gains realized in future years, (2) distribution requirements the portfolios must satisfy under the income tax regulations, and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Certain Funds had capital loss carryovers at March 31, 2014. The accumulated capital losses noted in the table may be available to offset future realized capital gains and thereby reduce future taxable gain distributions.
|
March 31, 2014
|
||||||
|
Portfolio
|
Capital Loss
Expires
March 31, 2017
|
Capital Loss
Expires
2018
|
Capital Loss
Expires
2019
|
Capital Loss
No Expiration
Short Term
|
Capital Loss
No Expiration
Long Term
|
Total
Capital Loss
|
|
Small Cap
|
$—
|
$—
|
$—
|
$—
|
$—
|
$—
|
|
Quality
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Emerging Markets
|
—
|
18,933,192
|
—
|
—
|
—
|
18,933,192
|
|
Risk Parity
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Foreign Value
|
73,956,484
|
131,156,114
|
10,547,106
|
—
|
39,035,597
|
254,695,301
|
|
Foreign Value Small Cap
|
—
|
—
|
—
|
452,699
|
2,279,694
|
2,732,393
|
As a result of the passage of the Registered Investment Company Modification Act of 2010 (“the Act”), losses incurred in fiscal year ended March 31, 2013 and beyond retain their character as short-term or long-term and have no expiration date and are utilized before capital losses incurred prior to the Act.
The Funds recognize the tax benefits of uncertain tax positions only where the position is ”more likely than not” to be sustained assuming examination by the tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2011-2013, or expected to be taken in the Funds’ 2014 tax returns. The Funds identify their major tax jurisdictions as U.S. Federal and Massachusetts State; however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
The primary differences between book and tax appreciation or depreciation of investments consist of wash sale loss deferrals, return of capital distributions by real estate investment trusts (“REITs”), mark to market on passive foreign investment companies (“PFICs”) held and foreign capital gains taxes accrued. The net tax appreciation/(depreciation) in the table below includes unrealized tax gain/(loss) on foreign currency and investments.
At September 30, 2014, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:
|
Portfolio
|
Tax Cost
|
Gross Unrealized
Gain
|
Gross Unrealized
Loss
|
Net Unrealized
Gain (Loss)
|
|
Small Cap
|
$84,715,456
|
$20,170,997
|
$(3,858,773)
|
$16,312,224
|
|
Quality
|
110,447,968
|
18,170,847
|
(662,111)
|
17,508,736
|
|
Emerging Markets
|
149,320,530
|
14,717,628
|
(11,617,565)
|
3,100,063
|
|
Risk Parity
|
40,087,888
|
3,908,471
|
(2,502,090)
|
1,406,381
|
|
Foreign Value
|
1,349,640,307
|
301,287,851
|
(78,696,817)
|
222,591,034
|
|
Foreign Value Small Cap
|
228,818,902
|
57,107,050
|
(13,973,815)
|
43,133,235
|
8. Transactions in Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
|
Six months ended
September 30, 2014
|
Year ended
March 31, 2014
|
|||
|
Shares
|
Dollars
|
Shares
|
Dollars
|
|
|
Small Cap
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
42,210
|
$1,114,059
|
207,644
|
$5,277,165
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
—
|
—
|
|
Shares redeemed
|
(196,824)
|
(5,156,095)
|
(822,157)
|
(22,348,313)
|
|
Net Change
|
(154,614)
|
(4,042,036)
|
(614,513)
|
(17,071,148)
|
|
Institutional Shares
|
||||
|
Shares sold
|
15,993
|
$481,077
|
12,410
|
$378,835
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
—
|
—
|
|
Shares redeemed
|
(20,544)
|
(597,940)
|
(13,518)
|
(386,202)
|
|
Net Change
|
(4,551)
|
(116,863)
|
(1,108)
|
(7,367)
|
|
Total Net Change For Fund
|
($4,158,899)
|
($17,078,515)
|
||
|
Quality
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
138,042
|
$2,559,377
|
537,932
|
$9,087,468
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
63,544
|
1,110,117
|
|
Shares redeemed
|
(229,932)
|
(4,259,459)
|
(440,986)
|
(7,508,887)
|
|
Net Change
|
(91,890)
|
(1,700,082)
|
160,490
|
2,688,698
|
|
Institutional Shares
|
||||
|
Shares sold
|
73,588
|
$1,424,527
|
408,428
|
$7,172,744
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
6,245
|
114,089
|
|
Shares redeemed
|
(76,884)
|
(1,493,217)
|
(100,210)
|
(1,818,592)
|
|
Net Change
|
(3,296)
|
(68,690)
|
314,463
|
5,468,241
|
|
Total Net Change For Fund
|
($1,768,772)
|
$8,156,939
|
||
|
Emerging Markets
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
491,913
|
$11,489,817
|
1,175,343
|
$25,995,414
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
70,627
|
1,594,063
|
|
Shares redeemed
|
(486,650)
|
(11,559,910)
|
(1,245,560)
|
(27,432,553)
|
|
Net Change
|
5,263
|
(70,093)
|
410
|
156,924
|
|
Institutional Shares
|
||||
|
Shares sold
|
59,332
|
$1,426,167
|
154,168
|
$3,421,496
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
9,313
|
212,884
|
|
Shares redeemed
|
(59,991)
|
(1,437,621)
|
(114,842)
|
(2,577,228)
|
|
Net Change
|
(659)
|
(11,454)
|
48,639
|
1,057,152
|
|
Total Net Change For Fund
|
($81,547)
|
$1,214,076
|
||
|
Risk Parity
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
95,626
|
$1,020,692
|
70,156
|
$753,840
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
438
|
4,528
|
|
Shares redeemed
|
(3,881)
|
(43,315)
|
(7,285)
|
(74,439)
|
|
Net Change
|
91,745
|
977,377
|
63,309
|
683,929
|
|
Institutional Shares
|
||||
|
Shares sold
|
547,520
|
$5,912,222
|
3,181,726
|
$32,122,316
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
17,174
|
178,270
|
|
Shares redeemed
|
—
|
—
|
(3,550)
|
(36,074)
|
|
Net Change
|
547,520
|
5,912,222
|
3,195,350
|
32,264,512
|
|
Total Net Change For Fund
|
$6,889,599
|
$32,948,441
|
||
|
Foreign Value
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
11,899,976
|
$229,958,338
|
21,931,311
|
$386,244,629
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
374,600
|
6,813,973
|
|
Shares redeemed
|
(5,709,504)
|
(109,128,570)
|
(19,985,661)
|
(354,918,248)
|
|
Net Change
|
6,190,472
|
120,829,768
|
2,320,250
|
38,140,354
|
|
Institutional Shares
|
||||
|
Shares sold
|
6,206,164
|
$119,998,211
|
19,059,639
|
$343,017,621
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
99,730
|
1,813,084
|
|
Shares redeemed
|
(1,950,336)
|
(36,881,167)
|
(1,105,857)
|
(19,315,749)
|
|
Net Change
|
4,255,828
|
83,117,044
|
18,053,512
|
325,514,956
|
|
Total Net Change For Fund
|
$203,946,812
|
$363,655,310
|
||
|
Foreign Value Small Cap
|
||||
|
Ordinary Shares
|
||||
|
Shares sold
|
5,402,280
|
$72,396,294
|
2,664,639
|
$32,447,208
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
94,569
|
1,108,351
|
|
Shares redeemed
|
(2,211,466)
|
(29,374,284)
|
(1,096,688)
|
(12,449,928)
|
|
Net Change
|
3,190,814
|
43,022,010
|
1,662,520
|
21,105,631
|
|
Institutional Shares
|
||||
|
Shares sold
|
4,162,910
|
$55,679,509
|
1,783,652
|
$22,200,645
|
|
Shares issued in reinvestment of distributions
|
—
|
—
|
30,571
|
358,593
|
|
Shares redeemed
|
(284,082)
|
(3,795,778)
|
(355,757)
|
(4,138,242)
|
|
Net Change
|
3,878,828
|
51,883,731
|
1,458,466
|
18,420,996
|
|
Total Net Change for Fund
|
$94,905,741
|
$39,526,627
|
||
PEAR TREE FUNDS
INFORMATION FOR SHAREHOLDERS (unaudited)
Quarterly Portfolio Disclosure
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (Call 1-800-SEC-0330 for more information). For a complete list of a fund’s portfolio holdings, you may also view the most recent monthly holdings report, semi-annual report or annual report on the Pear Tree Funds’ web site at www.peartreefunds.com.
Portfolio Proxy Voting Policies and Information
Information on the Funds’ proxy voting policies and on how the Pear Tree Funds voted proxies related to portfolio securities for the 12-month period ended June 30, 2014 is available without charge online at www.peartreefunds.com and at www.sec.gov. You may also call 1-800-326-2151 to request a free copy of the proxy voting information or the proxy voting policies.
Household Delivery of Fund Documents
With your consent, the Trust may send a single proxy statement, prospectus and shareholder report to your residence for you and any other member of your household who has an account with the Funds. If you wish to revoke your consent to this practice, you may do so by notifying the Fund’s transfer agent, by phone or in writing (see “For Account Information”). The mailing of separate proxy statements, prospectuses and shareholder reports will begin within 30 days after receiving your notice.
MANAGEMENT CONTRACT AND ADVISORY
CONTRACT APPROVAL (unaudited)
At an in-person meeting held on May 15, 2014, the Trustees, including the Independent Trustees, approved for an annual period the continuation of the Management Agreement and each subadvisory agreement with respect to a Fund (collectively, the “Fund Advisory Agreements”).
In considering the Fund Advisory Agreements, the Trustees received in advance of the meeting a variety of materials relating to the Funds, the Manager, and the subadvisers, including comparative performance, fee and expense information for peer groups of similar mutual funds prepared by an independent third-party provider of mutual fund data; performance information of a benchmark index for each Fund; with respect to each subadviser, comparative performance information for comparably managed accounts, as applicable; and other information provided by the Manager and each subadviser regarding the nature, extent, and quality of services provided by the Manager and the subadviser under their respective Agreements, as well as information regarding the Manager’s revenues and costs of providing services to each Fund and any compensation paid to affiliates of the Manager. Particular focus was given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Trustees note that the evaluation process with respect to the Manager and each subadviser is an ongoing one. In this regard, the Trustees also took into account discussions with management and information provided to the Trustees at prior meetings with respect to the services provided by the Manager and the subadvisers to the Funds, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the subadvisers with respect to the Funds. The Trustees also considered the nature, quality, and extent of non-advisory services, if any, to be provided to each Fund by the Manager’s affiliates, including distribution services.
Throughout the process, the Trustees asked questions of and requested additional information from the Manager and subadvisers. Throughout the process, the Independent Trustees were assisted by independent legal counsel. The Independent Trustees also received a memorandum from independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Fund Advisory Agreements and discussed the proposed continuation of the Fund Advisory Agreements in private sessions with their independent legal counsel at which no representatives of the Manager, the subadvisers or Trust management were present.
Approval of Management Contract
In approving the Management Agreement with respect to each Fund, the Trustees, including the Independent Trustees, considered a variety of factors, including those discussed below. The Trustees also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Trustees’ conclusions were based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Trustees’ ongoing regular review of the Funds’ performance and operations throughout the year.
Nature, Extent, and Quality of Services. Among the information received by the Trustees from the Manager relating to the nature, extent, and quality of services provided to the Funds, the Trustees reviewed information provided by the Manager relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Manager’s compliance and regulatory history, including its Form ADV. The Trustees also noted that on a regular basis they receive and review information from the Trust’s Chief Compliance Officer regarding the Funds’ compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Trustees also considered the Manager’s risk management processes. The Trustees considered that the Manager is responsible for the management of the day-to-day operations of the Funds, including general supervision of and coordination of the services provided by the subadvisers, and that the Manager is also responsible for monitoring and reviewing the activities of the subadvisers and other third-party service providers.
In considering the nature, extent, and quality of the services provided by the Manager, the Trustees also took into account their knowledge of the Manager’s management and the quality of the performance of the Manager’s duties through Trustees’ meetings, discussions, and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust.
In the course of their deliberations regarding the Management Agreement, the Trustees considered, among other things: (a) the skills and competency with which the Manager has in the past managed the Trust’s affairs and its subadvisory relationships, the Manager’s oversight and monitoring of the subadvisers’ investment performance and compliance programs, such as each subadviser’s compliance with applicable Fund policies and objectives; review of brokerage matters, including with respect to trade allocation and best execution; and the Manager’s timeliness in responding to performance issues; (b) the background, qualifications and skills of the Manager’s personnel; (c) the Manager’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments; (d) the Manager’s administrative capabilities, including its ability to supervise the other service providers for the Trust; (e) the financial condition of the Manager and whether it has the financial wherewithal to provide a high level and quality of services to the Trust; and (f) the Manager’s reputation and experience in serving as an investment adviser to the Trust.
The Trustees concluded that the Manager may reasonably be expected to continue to provide a high quality of services under the Management Agreement with respect to each Fund.
Investment Performance. In considering each Fund’s performance (other than Risk Parity Fund, which the Trustees determined that, because it was new, had an insufficient performance history for them to consider), the Trustees noted that they review at their regularly scheduled meetings information about the Funds’ performance results. In connection with the consideration of the Management Agreement, the Trustees: (a) reviewed information prepared by management regarding each Fund’s performance; (b) considered the comparative performance of a benchmark; (c) considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of mutual fund data (such report included a Fund’s ranking within a smaller group of peer funds and a Fund’s ranking within broader groups, or universes, of funds; and (d) took into account the Manager’s analysis of each Fund’s performance and its plans and recommendations regarding the Funds’ subadvisory arrangements generally.
The Trustees noted that for the most recent one-, three-, five-, and ten-year periods ended December 31, 2013:
|
|
•
|
Emerging Markets Fund was in the second, third, or fourth quintile of its performance group, and in the third or fourth quintile of its performance universe;
|
|
|
•
|
Foreign Value Fund was in the first or second quintile of each of its performance group and performance universe;
|
|
|
•
|
Foreign Value Small Cap Fund was in the second, third, or fifth quintile of its performance group, but in the first or third quintile of its performance universe over the same periods;
|
|
|
•
|
Quality Fund was in the first or second quintile of its performance group and performance universe over the most recent three-year period, that is, approximately the time when Quality Fund changed its investment strategy and investment subadviser to the current strategy and manager; and
|
|
|
•
|
Small Cap Fund was in the second or third quintile of its performance group, and fourth quintile of its performance universe.
|
The Trustees concluded that the performance of each Fund has generally been in line with or outperformed the historical performance of comparable funds.
Fees and Expenses. The Trustees reviewed comparative information prepared by an independent third-party provider of mutual fund data, including, among other data, each Fund’s actual management fees and total expenses as compared to similarly situated investment companies deemed to be comparable to the Fund. The Trustees considered each Fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the Fund’s ranking within a broader universe of funds.
The Trustees noted that at December 31, 2013:
|
|
•
|
Emerging Markets Fund’s actual management fees were slightly lower than its peer group median, and that its total expenses were slightly higher than its peer group median;
|
|
|
•
|
Foreign Value Fund’s actual management fees were slightly higher than its peer group median, and that its total expenses were higher than its peer group median;
|
|
|
•
|
Foreign Value Small Cap Fund’s actual management fees were lower than its peer group median, and that its total expenses were slightly higher than its peer group median;
|
|
|
•
|
Quality Fund’s actual management fees were higher than its peer group median, and that its total expenses were higher than its peer group median;
|
|
|
•
|
Risk Parity Fund’s actual management fees were substantially lower than its peer group medial, and that its total expenses were higher than its peer group median; and
|
|
|
•
|
Small Cap Fund’s actual management fees were higher than its peer group median, and that its total expenses were higher than its peer group median.
|
The Trustees took into account management’s discussion of each Fund’s expenses. The Trustees also took into account management’s discussion with respect to the investment management/subadvisory fee structure, including the amount of the investment management fee retained by the Manager after payment of the subadvisory fee. The Trustees noted that the Manager is currently waiving fees and/or reimbursing expenses with respect to Quality Fund. The Trustees also noted that the Manager pays the subadvisory fees of each Fund, and that such fees are negotiated at arm’s length with respect to the subadviser. The Trustees also noted management’s discussion of each Fund’s expenses, as well as certain actions taken over the past several years to reduce the Funds’ operating expenses. The Trustees considered any differences between the Manager’s and subadviser’s services to the Fund and the services they provide to other comparable clients or funds. The Trustees concluded that the advisory fee paid to the Manager with respect to each Fund is reasonable.
Profitability/Indirect Benefits. In considering the costs of the services to be provided and the profits to be realized by the Manager and its affiliates from the Manager’s relationship with the Trust, the Trustees: (a) reviewed financial information of the Manager; (b) reviewed and considered an analysis presented by the Manager regarding the net profitability to the Manager and its affiliates with respect to each Fund; (c) received and reviewed profitability information with respect to the Pear Tree Funds complex as a whole; (d) received information with respect to the Manager’s allocation methodologies used in preparing the profitability data; (e) considered that the Manager also provides administrative services to the Fund pursuant to an administrative services agreement; (f) noted that the Trust’s distributor also receives Rule 12b-1 payments to support distribution of the Funds; (g) noted that the Manager also derives reputational and other indirect benefits from providing advisory services to the Funds; (h) noted that the subadvisory fees for each Fund are paid by the Manager and are negotiated at arm’s length; and (i) considered that the Manager should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the entrepreneurial risk that it assumes as Manager.
Based upon its review, the Trustees concluded that the level of profitability, if any, of the Manager and its affiliates from their relationship with each Fund and the Funds, taken as a whole, was reasonable and not excessive.
Economies of Scale. In considering the extent to which economies of scale would be realized as the Funds grow and whether fee levels reflect these economies of scale for the benefit of Fund shareholders, the Trustees: (a) took into account management’s discussion of each Fund’s advisory fee structure, and (b) considered the effect of each Fund’s growth in size on its performance and fees. The Trustees also noted that if Fund assets increase over time, each Fund may realize other economies of scale, such as lower fees for administration and legal services.
Approval of Subadvisory Agreements
In making its determination with respect to approval of each subadvisory agreement, the Trustees reviewed: (a) information relating to each subadviser’s business, including current subadvisory services to each Fund managed by the subadviser; (b) the historical and current performance of the Fund that is the subject of the subadvisory agreement, and comparative performance information relating to a benchmark and comparable funds; (c) the subadvisory fee for the Fund, including any breakpoints, and comparative fee information, where available, prepared by an independent third-party provider of mutual fund data; and (d) information relating to the nature and scope of any material relationships and their significance to the Manager and the applicable subadviser.
Nature, Extent, and Quality of Services. With respect to the services provided by each subadviser, the Trustees received information provided to the Trustees by the subadviser, including the subadviser’s Form ADV, as well as took into account information presented throughout the past year. The Trustees considered the subadviser’s current level of staffing and its overall resources, as well as received information relating to the subadviser’s compensation program. The Trustees reviewed the subadviser’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the subadviser’s investment and compliance personnel who provide services to each Fund managed by that subadviser. The Trustees also considered, among other things, the subadviser’s compliance program and any disciplinary history. The Trustees also considered the subadviser’s risk assessment and monitoring process. The Trustees reviewed the subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Trustees noted that the Manager conducts regular, periodic reviews of the subadviser and its operations, including regarding investment processes and organizational and staffing matters. The Trustees also noted that the Trust’s Chief Compliance Officer conducts regular, periodic compliance reviews with the subadviser and presents reports to the Independent Trustees regarding the same, which include evaluating the regulatory compliance systems of the subadviser and procedures reasonably designed by it to assure compliance with the federal securities laws. The Trustees also took into account the financial condition of each subadviser.
The Trustees considered each subadviser’s investment process and philosophy. The Trustees took into account that the subadviser’s responsibilities include the development and maintenance of an investment program for each Fund that it manages that is consistent with the Fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Trustees also received information with respect to the subadviser’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadviser Compensation. In considering the cost of services to be provided by each subadviser and the profitability to the subadviser of its relationship with each Fund managed by that Subadviser, the Trustees noted that the fees under each subadvisory agreement are paid by the Manager and not the Funds.
The Trustees also relied on the ability of the Manager to negotiate the subadvisory agreement with each subadviser, none of which is affiliated with the Manager, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by a subadviser from its relationship with the Trust were not a material factor in the Trustees’ consideration of the subadvisory agreement.
The Trustees also received information and took into account any other potential conflicts of interest the Manager might have in connection with any subadvisory agreement.
In addition, the Trustees considered other potential indirect benefits that a subadviser and its affiliates may receive from the subadviser’s relationship with the Funds, such as reputational benefits.
Subadvisory Fees. The Trustees considered that each Fund pays an advisory fee to the Manager and that, in turn, the Manager pays a subadvisory fee to the Fund’s subadviser. The Trustees also took into account the subadvisory fees paid by the Manager to each subadviser with respect to the Fund to fees charged by the Fund’s subadviser to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadviser Performance. As noted above, the Trustees considered each Fund’s (other than Risk Parity Fund’s) performance as compared to the Fund’s peer group and a benchmark and noted that the Trustees review information about each Fund’s performance results at its regularly scheduled meetings. The Trustees noted the Manager’s expertise and resources in monitoring the performance, investment style, and risk-adjusted performance of the subadvisers. The Trustees were mindful of the Manager’s focus on each subadviser’s performance. The Trustees also noted the subadviser’s long-term performance record for similar accounts, as applicable.
The Trustees’ decision to approve each subadvisory agreement was based on a number of determinations, including the following: (a) each subadviser has extensive experience and demonstrated skills as a manager; (b) except as noted above, the performance of each Fund generally has been in line with or outperformed the historical performance of comparable funds and a benchmark and each Fund’s overall performance is satisfactory; and (c) the subadvisory fees are reasonable in relation to the level and quality of services being provided.
* * *
Based on the Trustees’ evaluation of all factors that the Trustees deemed to be material, including those factors described above, the Trustees, including the Independent Trustees, concluded that renewal of each Fund Advisory Agreement would be in the best interest of each Fund and its shareholders. Accordingly, the Trustees, and the Independent Trustees voting separately, approved each Fund Advisory Agreement for an additional one-year period.
NOTES
NOTES
NOTES
NOTES
SERVICE PROVIDERS
|
Manager
|
Pear Tree Advisors, Inc., 55 Old Bedford Road,
Suite 202, Lincoln, MA 01772
|
|
Subadvisers
|
Columbia Partners, L.L.C., Investment Management,
5425 Wisconsin Avenue, Suite 700, Chevy Chase, MD 20815
PanAgora Asset Management, Inc., 470 Atlantic Avenue,
8th Floor, Boston, MA 02210
Polaris Capital Management, LLC, 121 High Street,
Boston, MA 02110
|
|
Distributor
|
U.S. Boston Capital Corporation, 55 Old Bedford Road,
Suite 202, Lincoln, MA 01773
|
|
Custodian
|
State Street Bank and Trust Company, One Lincoln Street,
Boston, MA 02111
|
|
Fund Accountant
|
State Street Bank and Trust Company, One Lincoln Street,
Boston, MA 02111
|
|
Transfer Agent
|
Pear Tree Institutional Services, 55 Old Bedford Road,
Suite 202, Lincoln, MA 01773
|
|
Independent Registered
Public Accounting Firm
|
Tait, Weller & Baker LLP, 1818 Market Street, Suite 2400
Philadelphia, PA 19103
|
|
Legal Counsel
|
Nutter, McClennen & Fish, Seaport West, 155 Seaport
Boulevard, Boston, MA 02210
|
|
For Account Information
|
For Pear Tree Funds information, contact your financial adviser or, if you receive account statements directly from Pear Tree Funds, you can also call 1-800-326-2151. Telephone representatives are available from 8:30 a.m. to 4:30 p.m. Eastern Time. Or visit our website, www.peartreefunds.com
|
ITEM 2. Code of Ethics
Not applicable for report period.
ITEM 3. Audit Committee Financial Expert
Not applicable for report period.
ITEM 4. Principal Accountant Fees and Services
Not applicable for report period.
ITEM 5. Audit Committee of Listed Registrants
Not applicable.
ITEM 6. Schedule of Investments
Not applicable.
ITEM 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
ITEM 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
ITEM 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
ITEM 10 Submission of Matters to a Vote of Security Holders
Not applicable.
ITEM 11. Controls and Procedures
(a) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of such procedures provide reasonable assurance that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There has been no change in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. Exhibits
(a) Certifications pursuant to Rule 30a-2(a) by the chief executive and financial officers.
|
(b)
|
Certification pursuant to Rule 30a-2(b) and Section 906 by the chief executive and financial officers.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pear Tree Funds
By /s/ Willard L. Umphrey
Willard L. Umphrey, President
Date: November 26, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Willard L. Umphrey
Willard L. Umphrey, President
Date: November 26, 2014
By /s/ Leon Okurowski
Leon Okurowski, Treasurer
Date: November 26, 2014