Can't make this up...did someone have to decide if fed gubmnt employee funds should be able to invest in sanctioned companies. Is this compliance failure or ??? Chinese firms that threaten US security can get cash from federal employees Millions of federal employees can invest in Chinese companies sanctioned by the U.S. government via its flagship retirement plan, even though these companies have been branded a danger to national security or are accused of profiting from forced labor or other human rights abuses, Newsweek has learned Since June 2022, the federal government's employee retirement plan—the largest in the world with $720 billion in assets—has offered its 6.8 million members the option to invest some of their savings in an account containing about 5,000 mutual funds, some of which have holdings in Chinese companies that are on at least nine U.S. government sanctions or watch lists, according to an exclusive analysis for Newsweek by Washington D.C.-based consulting firm Kilo Alpha Strategies, using data from the Coalition for a Prosperous America
It sounds like you are able to invest in thousands of mutual funds similar to most brokerages. Some of these funds are probably index funds. I’m not a big fan of a government retirement plan limiting investment options based on political agendas. Next they will ban ESG funds, then funds with companies that have DEI, or don’t have sufficient DEI, etc.
That damn Trump......... Oh wait a minute. this has been since 2022. Oh well that damn orange god and his cult!!! I'm sure he is getting richer by it.
Yep, they opened up additional options for us but i'm satisfied with the standard index fund offerings they had before so did not look into directing my retirement investing into these other options.
5000 mutual funds offered, with mutual funds holding up to 1000 different stocks ... whatever investment was made in this company was probably very watered down ... but still a bad look for the program to not check for this and remove those mutual funds from their offerings... Edit ... I also wonder if these mutual funds are available to regular investors, can anyone do back door investments in sanctioned companies via mutual funds?
one would hope that the rules for any fund offered in the US stock market would be that they would be required to divest themselves of any sanctioned companies with x days of sanctions being announced
