The world's biggest retirement fund should put half its $1.2 trillion of assets in stocks and increase its yearly return goal to 5 percent, according to the head of a panel advising lawmakers on overhauling public pensions.
The Government Pension Investment Fund should reduce its bond holdings to about 40 percent within two years, Takatoshi Ito said in an interview Friday in Tokyo.
The fund had a combined 68 percent of its assets in domestic and foreign debt as of Sept. 30. GPIF needs to raise the annual return it seeks, currently 4.1 percent, to fund retirement payouts for the world's oldest population, Ito said.