PIERRE, S.D.(Press Release) – Governor Kristi Noem has announced the next steps that she is taking in her effort to stop state taxpayer dollars from being sent to nations that hate us, like Communist China. Governor Noem wrote to the United States Congress asking them to pass legislation endorsing state efforts to divest from China.
“I am requesting that Congress pass legislation to authorize state and local governments to divest assets or prohibit the investment of assets in China,” Governor Noem wrote in her letter to Congress, which can be found here. “Congress has an opportunity to prioritize our nation’s security. States stand ready to act, and legislation endorsing divestments from China would be a great tool to help us do that.”
Governor Noem also wrote to Vanguard asking them to create an emerging markets fund that does not include investments in Communist China.
“I am requesting that Vanguard create a new emerging markets fund that does not include China. This would provide states the opportunity to safely invest our state trust fund and pension dollars without exposure to the threat of the CCP,” Governor Noem wrote in her letter to Vanguard, which can be found here.
According to the review conducted by the South Dakota Investment Council (SDIC), no internally managed funds are invested in Chinese companies any longer. The SDIC has already divested from three Chinese companies.
Approximately 1.3% of the SDIC’s portfolio is invested in Chinese companies through an emerging markets index ETF. Another 0.7% of the portfolio is invested in Chinese real estate through external real estate and private equity partnership funds.
Governor Noem has called on the SDIC to provide alternative options for these investments.