Japan has no plans to overhaul pension funds' asset allocation, sources say

(Corrects grammar in headline)By Tamiyuki KiharaTOKYO, July 13 : Japan has no immediate plans to change target asset allocations of its state pension funds but could work within existing allowable ranges to direct more investment to domestic assets, people with knowledge of government deliberations told Reuters.Finance Minister Satsuki Katayama said on Friday the government would seek ways to encourage pension funds, including the Government Pension Investment Fund's (GPIF), to make "substantially greater investments in Japanese financial assets." The remark sparked gains in the yen and bonds as investors bet billions of dollars could be channeled into Japanese markets through GPIF, the world's largest pension fund, which manages 293.6 trillion yen ($1.81 trillion) in assets as of March.Wh