GMO shifts to Thai stocks, reducing holdings in Indonesian stocks after MSCI issues a warning.

After MSCI warned in late January that Indonesia could be downgraded to a frontier market, Grantham Mayo Van Otterloo & Co is now shifting from Indonesian stocks to Thai stocks. The Boston-based investment firm quickly reduced its significant holdings in Indonesian stocks after the index institution issued the warning, said Warren Chiang, portfolio manager and quantitative expert at GMO. The company is now heavily increasing its holdings in Thai stocks, as the election victory of Thai Prime Minister Prayut Chan-o-cha is expected to bring political stability.