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Pear Tree

Pear Tree Parent Rating

Average

Pear Tree, the mutual fund arm of wealth manager U.S. Boston Capital, has a restrained mission and a structure that fits its objectives.

Its limited number of funds, currently seven, are all subadvised — mainly by Polaris Capital Management, LLC, which runs four of the funds and more than 90% of Pear Tree’s USD 4.6 billion in assets under management as of April 30, 2023. Aside from its largest fund, Polaris Foreign Value, Pear Tree’s offerings invest in niche areas aiming to diversify a core portfolio. Pear Tree specializes in manager selection and due diligence, choosing subadvisors to run the strategies.

Pear Tree has adequately addressed shortcomings and corrected for past mistakes. In 2016, firm founders Willard Umphrey and Leon Okurowski tapped John McClellan to run the firm in the future to allay succession worries. In 2017, the firm cut fees across its funds and launched a less expensive R6 share class. After a capacity issue and an ensuing, unsuccessful attempt to switch strategies, Pear Tree will work only with experienced subadvisors for mutual funds and now requires a specified, reserved amount of capacity in a subadvisor’s strategy.

The firm’s newest offering, Pear Tree Essex Environmental Opportunities, showcases its approach. It acquired the fund from Essex, once the advisor and now the subadvisor. Essex now manages the niche strategy; Pear Tree provides the distribution expertise.

Pear Tree Investments

Market

US Open-end ex MM ex FoF ex Feeder

Total Net Assets

4.54 Bil

Investment Flows (TTM)

−541.79 Mil

Asset Growth Rate (TTM)

−11.98%

# of Share Classes

16
Morningstar Rating # of Share Classes
2
0
7
3
4
Not Rated 0

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