As the world's biggest pension manager moves closer to putting more money in risky assets, the Liberal Democratic Party's deputy policy chief says the fund needs to change its governance first.

The Abe administration should submit a bill during the next Diet session to overhaul the structure of the ¥126.6 trillion Government Pension Investment Fund, Yasuhisa Shiozaki said in a speech in Tokyo on Tuesday.

With the fund working on a separate investment strategy review, discussion is needed on whether it is right to alter asset allocations before the law change, he said.