ACWI | MSCI - $50 Billion In Retired Military and Federal Employee Funds - Fiduciary Irresponsibility - Don't Meddle With The Primal Forces of Nature

Ed.'s note: We recently covered the Federal Retirement Thrift Investment Board (FRTIB). The FRTIB was established as an independent agency and manages the Federal Thrift Saving Plan that are the 401K savings and investment plans that serves roughly 6 million current and retired military and federal civilian employees. The FRTIB controls tens of billions of dollars. Michael Kennedy, who is the current managing director of the FRTIB and his management team, decided to redirect $50 billion of this savings to a new global investment vehicle known as the All Countries World Index (MSCI | ACWI | MSCI). The change to this index hopes to increase its returns on investments in Asian markets. The problem here is that by redirecting these investments to the ACWI, this would place investments in adversarial companies in China and Russia. The FRTIB board is in the final transition of these funds into the ACWI this month. This decision is insanity.

No China Bashing; Follow Capital Flows ($50 Billion) Channeled Into China Undermining America - FRTIB and ACWI - We've Reached Insanity

MSCI is now being scrutinized again with President Trump considering banning US$ billion in US federal savings from MSCI emerging market stocks including Chinese equities. The US is possibly confronting a potential military confrontation with China in the South China Sea and those who are magian the US federal savings and pensions are considering investing in adversarial Chinese companies through the MSCI emerging stock markets? What this means is that these investments of federal employees and retired military personnel will be placed in constituent companies of the ACWI that assist in the Chinese governments military activities, espionage, intellectual property theft, human rights abuses as well as many other Chinese companies that do not have basic financial transparency. None of these Chinese companies are in compliance with federal security laws. Chinese companies are being given preferential treatment over American corporate counterparts. What should also be scrutinized are private equity investments into the "Startup machine" Israel.
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Source: South China Morning Post

Trump weighs banning US$50 billion of US federal savings from holding MSCI emerging market stocks, including Chinese equities

• The US Thrift Savings Plan is scheduled to transfer US$50 billion of its international fund to mirror an MSCI All Country World Index, which captures equities in emerging markets including China

• Opponents of the transfer, including Republican Senator Marco Rubio of Florida, in recent weeks have engaged in a last-minute effort to stop it

2 May, 2020 | originally from Bloomberg

President Donald Trump speak at a campaign rally in North Charleston, South Carolina on February 28, 2020. Photo: AP

President Donald Trump is exploring blocking a government retirement fund from investing in Chinese equities considered a national security risk, a person familiar with the internal deliberations said.

The Thrift Savings Plan (TSP) – the federal government's retirement savings fund – is scheduled to transfer roughly US$50 billion of its international fund to mirror an MSCI All Country World Index, which captures emerging markets, including China.

The Federal Retirement Thrift Investment Board (FRTIB) overseeing the fund made a decision in 2017 that the money should be moved by mid-2020. Opponents of the transfer in recent weeks have engaged in a last-minute effort to stop it.

The action would possibly come in the form of an executive order, the person said. A senior administration official said no decision has been made at this time.

"Microsoft, Boeing, and Lockheed, among other major companies in the US, use the same index the TSP is implementing," said Kim Weaver, a spokeswoman for the TSP. "The TSP is simply moving to parity with other American 401(k)s. The FRTIB has long held the view that the Office of Foreign Asset Control is the appropriate arm of the federal government to determine legal foreign investments for all Americans."

The offshore yuan was among the biggest decliners in emerging markets Friday, weakening by the most in a month after the publishing of the report.

Please go to South China Morning Post to read the entire article.
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You have meddled with the primal forces of nature, Mr. Trump, the world is a business...