UPDATE 1-NY state pension fund hits $126 billion

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NEW YORK, Nov 16 (Reuters) - New York State's pension fund rebounded 18.3 percent to $126 billion in the first half of the current fiscal year, with the gains driven by stronger returns in domestic and international stocks, the state's comptroller said.

Comptroller Thomas DiNapoli said the latest tally was encouraging, especially after last year's steep declines.

Still, "a solid six month's performance does not compensate for the damage done last year," DiNapoli said in a conference call with reporters.

The Common Retirement Fund, the pension fund's formal name, fell 26 percent to just under $110 billion in the fiscal year that ended on March 31, 2009.

The fund's all-time high of $154 billion was hit in March 2007, about one month after DiNapoli, a Democrat, was sworn in as comptroller.

DiNapoli replaced the former Democratic comptroller, Alan Hevesi, who resigned and pleaded guilty to a felony for misusing state drivers.

DiNapoli said he did not anticipate "any dramatic shifts" in how the pension fund allocates money among asset classes after a review is concluded. For details on the current allocations, please click on: here. (Reporting by Joan Gralla; Editing by Padraic Cassidy)