(Adds details of members, background on allocations)
* At least 3 members of GPIF's panel will depart
* PM Abe wants GPIF to rely less on JGB investment
* Fin Min Aso says GPIF will "make move" in June
By Chikafumi Hodo and Takaya Yamaguchi
TOKYO, April 18 Japanese Prime Minister Shinzo
Abe's government plans to shake up the world's biggest pension
fund, replacing several key advisers in a sign that the premier
wants public funds to invest more aggressively, sources with
knowledge of the matter said.
The Government Pension Investment Fund's portfolio of $1.26
trillion is larger than the economy of Mexico.
At least three of the 10 members of the GPIF's Investment
Committee, including two considered cautious about Abe's call to
shift from bonds to riskier investments like stocks, will soon
leave the panel, the sources said.
Seki Obata, author of a book called, "Reflation is
Dangerous"; Takeshige Komoda, who represents labour unions that
want to protect their pensions; and long-serving member Masaharu
Usuki will not have their terms on the committee renewed when
they expire, the sources told Reuters.
Abe has been pressing the fund to put less money into
low-yielding bonds and seek higher returns from riskier
investments, in line with his policy of reviving the economy and
breaking Japan's risk-averse, deflationary mindset.
Government officials and committee members declined to
comment on the record about the closely guarded GPIF personnel
decisions. Chief Cabinet Secretary Yoshihide Suga said on Friday
that the matter is up to Health Minister Norihisa Tamura, who
appoints the committee members.
Tamura is expected to announce the reshuffle as soon as next
week, the sources said.
Obata, a former Finance Ministry bureaucrat, is an associate
professor at Keio University Business School and joined the
committee four years ago.
Komoda, a former senior transport ministry bureaucrat who
joined the committee two years ago, is the director general of
JTUC Research Institute for Advancement of Living Standards, a
think tank of Japan's top labour federation.
Usuki, a former banker who joined the committee in 2008, is
a professor at Nagoya City University's Graduate School of
The investment committee oversees GPIF's investment
performance and fund management activities and advises the GPIF
GPIF has started reviewing its new investment strategy. Last
month, it was set an investment target of 1.7 percent over the
nominal wage increases by an advisory panel of the Health
Founded in 2001, the public fund conducted the biggest
shake-up of its investment strategy last June by revising its
allocation targets to raise the core weighting for Japanese
stocks while lowering that for domestic bonds.
GPIF currently targets a core weighting of 12 percent in
Japanese stocks, 60 percent in domestic bonds, 11 percent in
foreign bonds, 12 percent in foreign stocks and 5 percent in
Dealers believe reform of the public fund is one pillar of
Abe's growth strategy, which is expected to be unveiled in June.
Japanese Finance Minister Taro Aso told parliament earlier
in the week that GPIF will "make a move" in the stock market
On April 4, the fund named 14 new active managers to
supervise its domestic equities investment and also added more
benchmarks to its strategy.
(Writing by William Mallard; Editing by Edmund Klamann and Hugh