Japan\\\'s vast public pension fund says to double stock investment

TOKYO, Oct 31 (AFP): Japan's public pension fund -- the world's biggest -- said Friday it will double the amount of equities in its investment portfolio, as it seeks higher returns to cope with a rapidly ageing population.
The unprecedented shift by the $1.26 trillion Government Pension Investment Fund (GPIF) will see stocks account for a combined 50 per cent of its portfolio, up from about 24 per cent now, pumping billions of dollars into domestic and overseas share markets.
"The new portfolio is designed to make the fund operate more effectively as the economy emerges from deflation," the fund's president Takahiro Mitani told a press conference in Tokyo.
"We're trying to generate long-term returns necessary for the fund's operation -- but with the least risk -- by diversifying its investment mix."
The new portfolio will see low-yielding domestic bonds account for 35 per cent of the fund, with another 15 per cent in foreign bonds, while 25 per cent each would be placed in domestic and foreign shares.