Chief Investment Officer of Pella Funds: Investors should consider positioning themselves in high-quality companies in China and Europe.

Pella Funds Chairman and Chief Investment Officer Jordan Cvetanovski stated that investors should consider high-quality companies in China and Europe, which have superior valuations. Despite the complex geopolitical situation that the market may face in the future, these companies may still perform well. Jordan Cvetanovski mentioned that in the past two to three months, Pella Funds has been looking for opportunities in China and has increased its investment allocation in the region to "over 10%." Due to the company's high focus on valuation, they are looking beyond the United States to regions such as Europe and Asia. He noted that the Chinese authorities are currently rolling out more fiscal stimulus measures to boost the economy, which is expected to provide a further boost to the returns on investments in China for the institution. Even if the authorities do not implement these stimulus measures, the investments selected by Pella Funds are expected to perform well in market fluctuations. Jordan Cvetanovski stated, "We anticipate that any stimulus measures by the Chinese government will be highly favorable to these companies, as they are undervalued and have low holdings by global asset managers." "We anticipate very strong returns, and we believe that now is actually the time to prepare for next year given concerns such as the tariff war." Jordan Cvetanovski mentioned that Chinese companies with valuation advantages and potential benefits from fiscal stimulus include: Midea Group Co., Ltd., HKEX, and AIA. He stated that Midea Group Co., Ltd is currently focusing on cutting-edge fields such as Siasun Robot & Automation; Pella Funds has been keeping an eye on HKEX for years and expects this Exchange listed in Hong Kong to benefit significantly from market prosperity and new stock issuances. He also added, "One of the region's highest quality companies is AIA, which has consistently maintained good performance year after year. If this insurance company were listed in the United States, its valuation would be 50% to 70% higher from day one." Jordan Cvetanovski also mentioned that Pella Funds has always been a loyal long holder of Taiwan Semiconductor, with the fund's interest in Taiwan Semiconductor mainly in the field of artificial intelligence. Opportunities in Europe Jordan Cvetanovski stated that Europe has experienced political turmoil, with the collapse of the governments in Germany and France bringing significant uncertainty to the regional market. However, he pointed out that traders' cautious attitude towards investing in Europe has provided a "great" opportunity for Pella Funds. Using the example of the French electrical equipment manufacturer Schneider Electric, Jordan Cvetanovski stated that despite recent political instability in France, the company's expected growth rate and profit margin are rising. It is reported that Schneider Electric has been looking to capitalize on Europe's digital transformation and the booming development of artificial intelligence, investing heavily in its data center business. In July this year, with record revenues and increased profit margins, the company raised its performance targets for 2024. Pella Funds recently purchased the UK engineering company Spirax Group. Jordan Cvetanovski stated that this company will benefit from the rebound in mining capital spending. He added, "These companies will once again benefit from the fiscal stimulus policies implemented by China. But it is important to note that it may not necessarily require Chinese stimulus to achieve this. The stock prices of these companies are currently quite cheap, and their performance is still growing. We can prove that the cost we pay is reasonable. But relatively speaking, we cannot currently prove that some valuations in the US market are reasonable."