Should Federal Pension Funds Invest in China? Some Lawmakers Don’t Think So

Two years ago, the Federal Retirement Thrift Investment Board, which oversees federal pensions, decided to switch its international investment bucket to the MSCI All Country World ex-U.S. Investable Market Index.  The new bucket allocates 7.5% to China-listed stocks, and that’s a problem for a group of bi-partisan Senators including Kirsten Gillibrand and Marco Rubio.

The Senators think it’s out of line for federal employees to be investing money in companies that are trying to displace American firms, and to invest in a country that has maintained unfair trade practices with the U.S. for almost two decades.

Describing the move to the new allocation, Senator Rubio said:

…it amounts to “effectively funding the Chinese government and Communist Party’s efforts to undermine U.S. economic and national security.”

The Senators have sponsored a bill that would stop the new allocation.

 

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