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PRESS RELEASE

Treasurer Malek Expands MOST 529 Investment Options to Address Risks in Chinese Markets

FOR IMMEDIATE RELEASE

Contact: Tianna Brooks, 573-751-5390

JEFFERSON CITY, MO – Missouri State Treasurer Vivek Malek today announced the introduction of a new international equity portfolio option for participants in Missouri’s MOST 529 Education Savings Plan. Developed through months of collaboration between the Treasurer’s Office and MOST 529 plan administrators, this option provides families with a low-cost international equity portfolio that excludes exposure to Chinese markets. The addition reflects Treasurer Malek’s commitment, as chairman of the Missouri Education Savings Program Board, to addressing growing concerns about regulatory opacity and systemic risk in China.

“Today, any one of the more than 200,000 participants in the MOST 529 program can choose to exclude exposure to Chinese equities in their international stock investment strategy,” said Treasurer Malek. “Previously, families seeking investment growth through international stocks often had little choice but to include China. Just because a Missourian wants higher returns doesn’t mean they should have to accept this risk.”

Why This Matters: Major investment firms have warned of significant risks tied to Chinese markets, including social, legal, regulatory, political, and economic uncertainties. These securities may also face U.S. sanctions, liquidity challenges, and complex legal issues due to intricate corporate structures.

“If I wouldn’t choose investments with exposure to China for my own children, why should our 529 program offer no alternative for Missouri families?” Treasurer Malek added. “Today, we’ve delivered that choice.”

Missouri Families can Review their Current Holdings and make Adjustments if Desired:

1. Log in to your MOST 529 account.
2. Navigate to the Investments or Portfolio section.
3. Review your holdings and performance.
4. Check the Holdings list for details on each investment.

If you see Vanguard Total International Stock Index Portfolio in your holdings, note that it currently allocates nearly 10% to Chinese equities. You now have the option to replace it with the Vanguard International Stock ex-China Portfolio. You may move money already in your MOST 529 account to a different mix of investment options within the MOST 529 Plan (i.e., make exchanges or reallocate) up to two times per calendar year.

Malek vs. China: A Track Record of Success

This milestone follows Treasurer Malek’s successful efforts to reduce exposure to Chinese investments:

1. Championed House Bill 147, creating a divestment policy that requires Missouri public retirement systems to withdraw investments from companies owned or controlled by foreign adversaries. 
2. Pushed Vanguard, the world’s second-largest investment firm, to launch its first-ever Emerging Markets fund designed to exclude Chinese equities. 
3. Secured action from MOSERS to divest from Chinese public equities, following Treasurer Malek’s recommendation.