David Herro, one of Morningstar’s Fund Managers of the Decade, says he expects emerging market economies to continue to thrive. But he’s not high on their stocks.

“Money has flooded into these areas, thereby making stocks in emerging markets relatively less attractive than those of developed markets,” Herro said on Bloomberg Television. “The growth story isn’t over, but the stock story has taken a pause because of valuation.”

Herro says he does expect emerging market growth to drive global economic growth for the next generation or two. And he likes companies with exposure to China that aren’t based in China. Big Chinese firms’ shares “are really wards of the state,” he said. “They’re not companies that have boards that are sitting around thinking how to make money for the owners.” A better way to profit from China’s growth, he says, is by focusing on European companies that have operations in China, like Danone and Nestle SA.