Morningstar Says Korean Stocks Are EM’s Best Bet for Decade

A fund manager at Morningstar Wealth is selling Chinese and Japanese equities to increase exposure to South Korea, which he’s betting on to provide the best returns in both emerging and Asian markets over the next decade.

Korea’s key draws are technology stocks tied to the artificial intelligence boom and a newfound political will for corporate reforms, according to Mark Preskett, a London-based senior portfolio manager at the firm. He said he’s betting on annual returns from Korean stocks of 11%-12% in dollar terms over the next 10 years.