Japan GPIF's infrastructure investment abroad to be less than 1 pct of assets-govt panel

TOKYO Thu Dec 12, 2013 9:17pm EST

TOKYO Dec 13 (Reuters) - Investment by Japan's Government Pension Investment Fund (GPIF) in infrastructure projects abroad will amount to less than 1 percent of its 120 trillion yen ($1.16 trillion) fund, Takatoshi Ito, a government advisory panel member, told reporters on Friday.

GPIF, the world's biggest public pension fund, will start buying inflation-linked Japanese government bonds (JGBs) from April and will join Canada's OMERS in investing in infrastructure projects abroad, people familiar with the process had said earlier on Friday.

The fund is under pressure to overhaul its portfolio, which is heavily weighted towards very low-yielding straight JGBs, as part of Prime Minister Shinzo Abe's drive to boost returns to help support Japan's burgeoning elderly population. Abe also wants to channel the nation's vast pools of financial assets towards riskier investments and more productive uses. ($1 = 103.0250 Japanese yen) (Reporting by Noriyuki Hirata; Writing by Shinichi Saoshiro; Editing by Chang-Ran Kim)

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