Obama pension investments

The Truth-O-Meter Says:

Says Barack Obama has pension investments that include Chinese firms, and "investments through a Caymans trust."

Mitt Romney on Tuesday, October 16th, 2012 in debate comments

Romney says Obama also has investments in Chinese companies and through a Cayman Islands trust

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One of the many tense moments in the second presidential debate turned on a new topic in the race: President Barack Obama’s pension account.

Here’s how it came up: Early in the face-off, Obama scoffed at Mitt Romney’s pledge to crack down on unfair trading practices by China, saying Romney is currently invested in companies "that are building surveillance equipment for China to spy on its own folks."

Romney later explained that, yes, he understands that his blind trust has invested in foreign firms, including companies in China. Then he confronted Obama.

Romney: "Mr. President, have you looked at your pension? Have you looked at your pension?"

Obama: "You know, I don’t look at my pension. It’s not as big as yours so it doesn’t take as long. I don’t check it that often."

Romney: "Let me give you some advice. Look at your pension. You also have investments in Chinese companies. You also have investments outside the United States. You also have investments through a Caymans trust."..................

The Romney campaign told us it was referring to investments made by the Illinois State Board of Investment on behalf of the state employees’ retirement system there.

Obama, you may recall, was an Illinois state senator from 1997 to 2004 before winning election to the U.S. Senate. He is a participant in the General Assembly Retirement System in Illinois, said William Atwood, executive director of the Board of Investment, who confirmed that for us.

The Romney campaign pointed us to that pension fund’s holding in an entity that is part of Advent International. Advent has described itself as "one of the world’s most global private equity firms" and has buyout offices in 16 countries.

Atwood confirmed that the pension fund has invested $30 million in one of Advent’s limited partnerships, Advent International GPE VI-A. That partnership was organized in the Cayman Islands, Atwood said. Public filings back that up.

What about Romney’s broader claims, about Obama’s foreign investments?

The Illinois pension fund also has numerous foreign investments, including in Chinese companies, as part of its diversified portfolio, Atwood said..............

Our rating

Romney told Obama: "You also have investments in Chinese companies. You also have investments outside the United States. You also have investments through a Caymans trust."

It’s an accurate set of statements when you consider investments made by managers of the Illinois pension fund in which Obama has an account.

As we noted in reviewing previous claims about Romney’s investments in China, the investments involved are indirect and -- as far as anybody has said -- made without the knowledge of the account holder.

With that clarification, we rate Romney’s statement Mostly True.
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