Indiana Removed China-Linked Assets From State Plan

The Hoosier START plan cut China exposure to align with state law and increased the state match for participants.

Updated on Sept. 30, 2026 in Investing

Isometric editorial illustration of a brass scale balancing golden discs against a single steel cube, representing financial realignment. — The Indiana Deferred Compensation Committee transitioned the $2.6 billion Hoosier START plan to new investment funds to eliminate exposure to China-linked assets. AI Illustration. Upload story photo >

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The Indiana Deferred Compensation Committee transitioned the $2.6 billion Hoosier START plan to an international fund with no China exposure as of July 31, 2026. This move was paired with a negotiation to lower administrative costs for state employees.

Why it matters

The committee sought to align plan holdings with state law and mitigate risks associated with foreign market exposure. Furthermore, the plan secured reduced administrative fees and finalized a path to nearly double the state match for participants.

The plan now utilizes the Fidelity Institutional Asset Management Diversified International ex-China Class D fund with a 0.52% fee. Additionally, the state match is scheduled to increase from $15 to $28 per paycheck by summer 2027.

The players

Indiana Deferred Compensation Committee

This body oversees the investment options and administrative policies for the state's deferred compensation programs.

Nationwide

Nationwide is a major insurance and financial services company that provides record-keeping and administrative services for retirement plans.

Fidelity Institutional Asset Management

Fidelity is a global investment firm that manages institutional assets and retirement plan portfolios for public and private sector clients.

The details

The committee eliminated the American Funds EUPAC option entirely due to its holdings in China. To facilitate the shift, the board also ended third-party ESG-driven proxy voting on target date funds and renegotiated the service contract with Nationwide.

July 31, 2026: Fidelity replaced the international fund option.
Week of September 27, 2026: Committee voted to search for target date funds.
Summer 2027: Increased state match amount begins.

Administration
Sept. 27
Indiana Schools Cut Staff After Tax Reforms
Employment
Sept. 28
Indiana Unemployment Rate Fell to 3.3 Percent
Philanthropy
Sept. 22
Brad Gerstner Foundation Funded Indiana Child Accounts

Market Dynamics

State retirement systems are increasingly decoupling their investment portfolios from specific foreign markets to ensure compliance with localized mandates. This trend reflects a broader shift toward prioritizing regional legal alignment over traditional global diversification strategies.

Participants will see lower record-keeping fees, directly increasing the net value of their account contributions. Additionally, employees can anticipate a higher state match of $28 per paycheck starting in the summer of 2027.

The takeaway

Retirement plan participants should periodically review their fund allocations to ensure they align with updated institutional policies. Staying informed on upcoming changes to state matching programs is essential for long-term financial planning.