GOP Senator demand NO Mutual Fund Window

[James48843]

GOP Senators Issue a Last-Minute Demand that the TSP Delay Mutual Fund Window


With just a week before the federal government’s 401(k)-style retirement savings program begins offering mutual funds to its participants, some lawmakers warned it could lead to federal employees investing in China.

By ERICH WAGNER | MAY 27, 2022

A group of six Republican senators this week urged the federal government’s 401(k)-style retirement savings program to cancel implementation of a mutual fund window over fears that it could lead to federal workers unwittingly investing in Chinese corporations.

But there is just one issue with the request: it came as the Thrift Savings Plan had already begun the transition to a new service provider that would enable the mutual fund window, and just a week before the new system and its features, which also include a mobile app and other innovations, is scheduled to come online.

Beginning June 1, TSP participants will be able to invest a portion of their retirement savings in one of at least 5,000 mutual funds, including those that are focused on environmental, social and corporate governance issues. Most elements of the TSP’s website are currently in the midst of a blackout as the transition to a new recordkeeper occurs.

In a Tuesday letter to the Federal Retirement Thrift Investment Board, which administers the TSP, Sens. Marco Rubio, R-Fl., Rick Scott, R-Fl., Josh Hawley, R-Mo., Tom Cotton, R-Ark., Roger Marshall, R-Kan., and Rob Portman, R-Ohio, urged the agency to cancel or postpone offering mutual funds to TSP participants over the possibility that those funds could include investments in “Chinese entities.”

“We write to convey urgent concern with regard to the Federal Retirement Thrift Investment Board’s decision to open a new ‘mutual fund window’ beginning next month for federal Thrift Savings Plan participants,” they wrote. “Such a move could expose billions of dollars in retirement savings of U.S. federal employees and service members to Chinese companies, including ones currently sanctioned by the U.S. government for human rights abuses and otherwise blacklisted for the threat they pose to U.S. national security.”



More: https://www.govexec.com/pay-benefit...s-demand-tsp-delay-mutual-fund-window/367520/

 

[James48843]

I’m going to keep my political opinions to myself, but suffice it to say, these GOP Senators, trying to sabotage the new TSP system THE WEEK it is supposed to take effect, will not be getting any support from me.

And that is as kind as I can say it and still kit get booted off TSPTALK.

 

[Ltrman61]

Are they wrong? No, they are not. The ESG crap alone should have been addressed months ago. Companies pushing ESG crap can't get enough investors from the general public so they slide it into TSP to push their agenda onto Federal employees. Crony Capitalism at its worst.

 

[tctang75]

Having lost 100% of a Chinese ETF years ago, I'll never touch anything Chinese again, unless it's on the buffet line.

 

[Boghie]

This is as stupid as it gets...

And, I am mostly politically aligned with these clowns.

Just absolutely stupid. Stupid timing (this has been in-process for a year), stupid idea (your favorite US company does business and buys things from China anyway), and stoopid stunt (it ain't going to happen).

 

[nasa1974]

Have these Senator's not been reading their TSP emails?

 

[Boghie]

Have these Senator's not been reading their TSP emails?

Their staff had and was probably good-to-go with the changes.

Senators rarely, if ever, read the stuff they pontificate or vote on. They just blather and vote.

All I want to say to the failed lawyers populating our elected offices is:

Get off my TSP

 

[Ltrman61]

Having lost 100% of a Chinese ETF years ago, I'll never touch anything Chinese again, unless it's on the buffet line.

I agree 100%! And this did not just come up....these senators have been fighting against this for more than a year. I find it ridiculous that numerous companies are divesting from Russia and getting pats on the back for doing so, while the Biden administration is incentivizing government employees to DIRECTLY invest in CCP companies. When they ( TSP board) tried to do this with the I fund under Trump, he put a stop to it. Yeah...let's invest in our greatest adversary....what could go wrong? And people wonder why China eats our lunch and buys more and more of our land.

 

[Bullitt]

How many funds are we really talking there that invest direct in mainland China? There are 4,800+ on the spreadsheet TSPtalk linked. I count 19 China funds listed below.

I haven't looked too close, but these funds probably invest directly on Chinese exchanges which means there is very limited information about what you are invested in. Many tech companies are dual use and audits are less reliable than the ones done at Enron. I checked the holdings for TRCLX since I consider T Rowe a respectable company and the top ten holdings are listed on Chinese exchanges.

MATTHEWS CHINA INSTL	MICFX
FIDELITY® CHINA REGION	FHKCX	China Region
AMG VERITAS CHINA I	MIMFX	China Region
MATTHEWS CHINA DIVIDEND INSTL	MICDX	China Region
BLACKROCK CHINA A OPPORTUNITIES INSTL	CHILX	China Region
WILLIAM BLAIR CHINA GROWTH I	WICGX	China Region
ABRDN CHINA A SHARE EQUITY INST	GOPIX	China Region
T. ROWE PRICE CHINA EVOLUTION EQUITY I	TRCLX	China Region
COLUMBIA GREATER CHINA INST3	CGCYX	China Region
GOLDMAN SACHS CHINA EQUITY INSTL	GSAIX	China Region
MORGAN STANLEY CHINA EQUITY PORTFOLIO IS	MAKSX	China Region
INVESCO GREATER CHINA R5	IACFX	China Region
EATON VANCE GREATER CHINA GROWTH I	EICGX	China Region
MATTHEWS CHINA SMALL COMPANIES INSTL	MICHX	China Region
WCM CHINA QUALITY GROWTH INSTITUTIONAL	WCMCX	China Region
WASATCH GREATER CHINA INS	WGGCX	China Region
TEMPLETON CHINA WORLD R6	FCWRX	China Region
GUINNESS ATKINSON CHINA & HONG KONG	ICHKX	China Region
OBERWEIS CHINA OPPORTUNITIES INSTL	OCHIX	China Region

[TD="width: 214"]China Region[/TD]

Between Emerging Markets, Emerging Bonds, Emerging Currency, I count around 220 funds. Many of those certainly have Chinese exposure, but without digging deeper, you can't say for certain.

 

[Bullitt]

I find it ridiculous that numerous companies are divesting from Russia and getting pats on the back for doing so, while the Biden administration is incentivizing government employees to DIRECTLY invest in CCP companies. When they ( TSP board) tried to do this with the I fund under Trump, he put a stop to it.

If you go thru this list you'll see there are a few funds in our selection that have significant exposure to Russia.

https://www.cnbc.com/2022/03/02/the-10-stock-and-bond-funds-with-the-biggest-russia-exposure.html

 

[Boghie]

I agree 100%! And this did not just come up....these senators have been fighting against this for more than a year. I find it ridiculous that numerous companies are divesting from Russia and getting pats on the back for doing so, while the Biden administration is incentivizing government employees to DIRECTLY invest in CCP companies. When they ( TSP board) tried to do this with the I fund under Trump, he put a stop to it. Yeah...let's invest in our greatest adversary....what could go wrong? And people wonder why China eats our lunch and buys more and more of our land.

Just wondering...

How many C-Fund entities (S&P500 companies) have exposure to either the Chinese market, Chinese manufacturing, or Chinese investment?

Expiring minds want to know. Answer, all/most of them. You have as much chance of investing outside Chinese exposure as you have investing outside U.S. exposure. Almost no chance if you are investing in something like our C-Fund or our I-Fund. Out of the 4500 stocks in the S-Fund you will find some that do not have a Chinese footprint - maybe...


Personally, I will potentially peruse the mutual funds window but I will likely determine that an emerging markets fund is not of much interest. Why limit my choices? However, I think it best to make such investments outside TSP where I think I can reduce the fees. Those fees seem high, but whatever. Basically, I have little need to invest in the third world. Maybe I can get ambitious and review the options for REIT, commodity, and maybe some other categories to add some safety to my allocation. We shall see.