Japan to shake up world\\\'s top pension fund for bolder investment

TOKYO, Apr 18 (Reuters): 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.