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Pension Funds Shun Bonds Just as Southeast Asia Needs Them Most

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The biggest state pension funds in Thailand and the Philippines are shifting money from bonds to stocks, which could push up the cost of government stimulus programs.

The Social Security Office and Government Service Insurance System said they’re increasing holdings of shares, while the head of Indonesia’s BPJS Ketenagakerjaan said he sees the nation’s stock index rising 14 percent by year-end. Rupiah, baht and peso notes have lost money since the end of January, after handing investors respective returns of 13 percent, 9.9 percent and 6.6 percent last year, Bloomberg indexes show.