On Tuesday, Governor Kristi Noem led a letter with three of her fellow Republican governors to Mortimer Buckley, Chief Executive Officer of Vanguard. The letter encourages Vanguard to create an index fund that excludes China. You can read the letter here.
“As governors, we are responsible for protecting our people and recognizing financial security plays a significant role in their lives and livelihoods,” wrote Governor Noem and her colleagues. “We are deeply committed to ensuring that our state investments deliver the highest possible returns while insulating our states from financial risk. Such financial risk can often come from external factors and threats to our nation’s financial security – including the risk posed by the Chinese Communist Party.”
In response to earlier correspondence from Governor Noem, Vanguard indicated that it was exploring the option of creating a new emerging markets fund that excludes any investments in China.
In addition, Governor Noem sent a letter to the South Dakota Investment Council asking them to take advantage of such a product if it becomes available. The letter encourages the Investment Council to consider other asset managers in the meantime.
The Chinese Communist Party is increasing its efforts to infiltrate the Unites State by:
- Purchasing significantly more American land, particularly farmland, in order to control our food supply and collect critically important intelligence information in the process;
- Invading the homes of 150 million monthly active TikTok users in the United States and using the app to collect data off of our people’s devices;
- Brazenly sending a spy balloon across the American homeland with the intent of gathering intelligence on American military installations; and,
- Gaining entry, under the guise of diplomatic missions and exchange programs, into our universities, governments, and private sector institutions in an orchestrated attempt to manipulate our day-to-day lives.
“Because of these and other security threats, our states are looking for options to invest our taxpayer dollars in a way that does not financially benefit the Chinese Communist Party.” continued Governor Noem and the other governors. “We appreciate Vanguard’s attention to this matter and look forward to seeing how you are able to once again lead the industry through your attention to this critically important issue.”
Governor Noem was joined by the following Republican governors in issuing the statement:
Iowa Governor Kim Reynolds, Mississippi Governor Tate Reeves, and Texas Governor Greg Abbott.