UPDATE 1-Japan Post not thinking about changing JGB investment stance - CEO

Wed Aug 27, 2014 4:09am EDT

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(Adds CEO comments, background)

TOKYO Aug 27 (Reuters) - Japan Post Holdings Co is not thinking of changing its stance on investment in Japanese government bonds (JGBs), its chief executive said on Wednesday.

"We are holding a massive amount (of JGBs), so we would never consider making a significant change. Such a move would hurt us by impacting the market," Japan Post CEO Taizo Nishimuro told reporters.

In addition to delivering mail and parcels, state-owned Japan Post runs insurance and banking operations that manage massive amounts of money in markets, mostly in Japanese government bonds.

At the end of June, Japan Post's banking unit held about 121.2 trillion yen ($1.2 trillion) in JGBs, accounting for 60 percent of its total assets. Its insurance unit held 50 trillion yen in JGBs, also about 60 percent of its assets.

Japan Post's two financial units have been in spotlight for any hint of shift in their JGB-heavy investment stance following Japan's giant public pension fund's move toward boosting domestic stock investment to secure higher returns amid ultra-low interest rates. ($1 = 103.9100 Japanese yen) (Reporting by Taiga Uranaka; Editing by Chris Gallagher and Miral Fahmy)

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