PRESS RELEASE
Missouri State Treasurer Vivek Malek Disappointed in MOSERS Board for Rejecting His Effort to Move State Pension Fund Investments Out of Communist China
FOR IMMEDIATE RELEASE JEFFERSON CITY, MO – Missouri State Treasurer Vivek Malek issued the following statement about Thursday’s rejection by the MOSERS Board of his motion to divest state employee pension funds from investments in Communist China: “I am deeply
disappointed by this failure of the Missouri State Employees’ Retirement System
Board of Trustees. Not only is Communist China America’s adversary – China is
just a bad investment. As the State Treasurer of Missouri, it is my duty to
ensure that the State’s investments provide taxpayers with the best rate of
return possible. This is especially important when it comes to safeguarding the
value of our hard-working state retirees’ pensions. It is risky to have our
Missouri state retirees’ pension funds tied up in Communist China, because
China’s overt aggressive actions and alliances could create dangerous economic
fallout. With deflation,[1] its
shrinking workforce,[2]
and a slow recovery from the pandemic, Communist China is the wrong investment.
On top of all that, China gave us the COVID19 pandemic,[3]
floated spy balloons over Missouri,[4]
and is responsible for the flood of Fentanyl coming across the border.[5]
Communist China also allies itself with Russia, and other bad actors on
the international stage – and I note that MOSERS acted last year to disinvest
in Russia.[6][7]
And, senior U.S. military officials have argued China is preparing to
invade Taiwan,[8]
which could escalate conflict. It is my hope that the MOSERS Board will
reconsider its position and do the right thing.” Research by MOSERS
investment advisor Verus indicates multiple risks of investments in China, including
its continuing economic deflation, and that investments in Emerging Markets
ex-China (or without China) have outperformed Emerging Markets with China
during the last several years. Treasurer Malek’s motion that was rejected would
have allowed the MOSERS Board to set divestment from Communist China as a
priority as its asset allocation study approaches, culminating with a vote
setting new portfolio benchmarks in February 2024. ### [1]
https://www.reuters.com/world/china/chinas-oct-consumer-prices-fall-faster-than-expected-2023-11-09/ [2]
https://www.brookings.edu/articles/chinas-shrinking-population-and-constraints-on-its-future-power/ [3]
https://www.dni.gov/files/ODNI/documents/assessments/Declassified-Assessment-on-COVID-19-Origins.pdf [4]
https://www.defense.gov/News/News-Stories/Article/Article/3288543/f-22-safely-shoots-down-chinese-spy-balloon-off-south-carolina-coast/ [5]
https://www.justice.gov/opa/pr/justice-department-announces-eight-indictments-against-china-based-chemical-manufacturing [6]
https://www.uscc.gov/research/chinas-position-russias-invasion-ukraine#:~:text=February%2025%2C%202023,the%20Kremlin's%20efforts%20in%20Ukraine
