Japan LDP calls for Y10 trln wealth fund-report

NEW YORK, July 1 (Reuters) - Japan's Liberal Democratic Party is set to call for a 10 trillion yen sovereign wealth fund using public pension funds, the Nihon Keizai Shimbun financial daily reported on Wednesday.

The LDP proposal envisions a government asset manager handling the public pension fund's assets, the report said, without quoting sources.

The report comes amid calls for Japan's $1.44 trillion state-run Government Pension Investment Fund (GPIF) to diversify its holdings, including investments in alternative assets, to seek higher returns.

An LDP panel had called for such a fund in June, saying it would help the nation's coffers and help the city become a more global financial center.

But some in the government are opposed to more risk-taking by the GPIF, the world's largest pension fund, concerned that such an attempt could lead to unexpected losses. (Reporting by Ritsuko Ando; editing by Gary Crosse)