Investor Presentation: S. Korea Strategy and Industrials

Research evidence excerpt

Investor Presentation: S. Korea Strategy and Industrials

FoundationM

SectorA Mix ofAllocationSecular Growth and Quality Defensives

Sector Allocation

A Mix of Secular Growthand Quality Defensives

Sector Allocation MSCI Korea Growth vs. Value Spread and US Rates (RHS)

Current Ranking Prior Ranking

(Jan.1,2010=100) MSCI Korea Growth vs. Value (%)

1212 UST 2y (RHS)

1010 250 Fed Policy Rate (upper, RHS) 6

9 9

8 8

7 7

6 6 200 5

5 5

4 4

3 3

2 2

1 1 150 4

100 3

Industrials IT Care Banks Financials Svc. DiscCons Staples Materials Energy Utilities Comm. Health Components Cons 50 2

&

Non-bank Auto

0 1

Overweight Equal-weight Underweight -50 0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: Morgan Stanley Research. Source: WiseFN,Bloomberg, Morgan Stanley Research.

Morgan Stanley Research 43