(The Center Square) – The governors of South Dakota, Mississippi, Iowa and Texas are asking investment management company Vanguard to create an investment fund that doesn’t include China.
“Many of our states utilize Vanguard as an asset manager for our state investment dollars,” the governors said in the letter. “Vanguard has distinguished itself among its competitors in part by charging significantly lower fees, allowing states like ours to give more money back to our people.”
The letter is signed by South Dakota Gov. Kristi Noem, Iowa Gov. Kim Reynolds, Mississippi Gov. Tate Reeves, and Texas Governor Greg Abbott.
Vanguard officials said in January the company is considering a new emerging markets fund without any investments from China, according to the letter.
Noem wrote a separate letter to the South Dakota Investment Council asking it to move funds to another investment manager if Vanguard doesn’t provide China-free options.
“The CCP (Chinese Communist Party) poses a significant threat to our nation, and in turn, to our state,” Noem said in the letter. “They have been ramping up their efforts to infiltrate the United States and are targeting states in order to do so.”
Vanguard did not respond to a request for comment from The Center Square.
“As governors, we are responsible for protecting our people and recognizing financial security plays a significant role in their lives and livelihoods,” the governors said in a joint statement. “We are deeply committed to ensuring that our state investments deliver the highest possible returns while insulating our states from financial risk”