State Comptroller Elise Nieshalla announces deferred compensation plan divestment from China & ESG fund

Submitted

Indiana State Comptroller Elise Nieshalla commends the Indiana Deferred Compensation Committee (IDCC) for eliminating two funds, one with 4 percent exposure to Chinese entities and the other that prioritizes environmental, social and governance (ESG) matters over return on investment.

“These are positive steps to align public employees’ deferred compensation investments with the state laws governing our pensions,” Nieshalla said. “Protecting our investments from national security concerns and upholding fiduciary duty will always be top priorities.”

The IDCC oversees more than $2 billion in public employee supplemental retirement assets through the Hoosier START Plan. At its most recent IDCC quarterly meeting, chaired by Nieshalla, the committee voted to eliminate the American Funds EuroPacific Growth Fund due to Chinese investment exposure and transfer those dollars to the Fidelity Diversified International Fund.

The Committee also voted to eliminate the ESG-focused fund, Vanguard FTSE Social Index. Assets currently in the Fund will be moved to the State Street S&P 500 Index Fund.

Notifications will be sent to participants prior to the investment changes that are slated to occur later this year. Participants will have the opportunity to make investment election changes before the movement of assets.

Click here for more information regarding the Hoosier START plan.