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Japan LDP proposes Y10 trln wealth fund for pension
(For more stories on the Japanese economy, click [ID:nECONJP])
TOKYO, July 3 (Reuters) - Japan should set up a 10 trillion yen ($94.49 billion) sovereign wealth fund using public pension funds to seek higher returns, a ruling Liberal Democratic Party panel said in its interim report on Thursday.
Inspired by sovereign wealth funds in Asia, the Middle East and Norway, some LDP lawmakers have been keen to develop a Japan model for such a fund to contribute to the nation's coffers and help make Tokyo more of a global financial centre.
The idea is to more effectively manage part of Japan's 150 trillion yen state-run Government Pension Investment Fund (GPIF) by hiring more outside professionals. But it is still unclear if the proposal will bear fruit.
The panel members themselves have said that many lawmakers within their party remain cautious about the idea of establishing such a fund that would expose the public's pension funds to more risky investment. ($1=105.83 yen) (Reporting by Yoko Nishikawa)
