PERAC Memo #41 - 2007: Tobacco Company List
Tobacco Company List
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This memo transmits PERAC's updated October 2007 Tobacco Company List, replacing all prior versions, identifying companies deriving more than 15% of revenue from tobacco sales in which retirement systems are prohibited from making new investments under Chapter 119 of the Acts of 1997 (including pooled funds that fail the 15% test at the aggregate level). Boards must forward the list to their investment advisors (noting it is restricted to Massachusetts public fund use only) and ensure portfolio compliance; any non-compliant holdings identified through PERAC's audit process must be divested prudently, but only after consulting with PERAC before taking action.
Full Text
MEMORANDUM #41, 2007 M E M O R A N D U M TO: All Retirement Boards FROM: Robert A. Dennis, Investment Director RE: Tobacco Company List DATE: October 22, 2007 On October 22, 1997 PERAC Memo #37/1997 informed you of the adoption of Chapter 119 of the Acts of 1997. That statute prohibits retirement systems from making any new investments in stocks, securities, or other obligations of any company which derives more than 15% of its revenue from the sale of tobacco products. On December 18, 1997 PERAC sent Memo #48 regarding the implementation of Chapter 119 and the first Tobacco Company List. Enclosed please find a Tobacco Company List dated October 2007. This list replaces any other Tobacco Company List previously sent to your board and is effective upon receipt by the retirement boards. Most of these companies appeared on previous lists and such investments were prohibited from the time the companies first appeared on the list. Please forward a copy to your investment advisors or inform them that this list is available on the PERAC Home Page under the Investment Unit’s 2007 Memo Index. In communicating with your investment advisors, please inform them that the Tobacco Company List is only for their Massachusetts public fund clients and that any other use of the list is strictly prohibited. As part of its audit process, PERAC will assess the portfolio of each board to determine compliance. That review will determine if the board, after January 13, 1998, has purchased stock, securities, or other obligations of any company which derives more than 15% of its revenue from the sale of tobacco products. In the event a portfolio is not in compliance, the board must bring the portfolio into compliance by divesting in a prudent manner. Prior to taking any action, the board shall consult with PERAC. In applying the statute to pooled funds, PERAC will assess the 15% rule against the entire pool as the board is purchasing shares in the pool not the individual holdings of the pool. Thus a pooled fund, if in violation of this standard, will be included on the list. If you have any questions, please call Robert Dennis at 617-666-4446 ext. 922. Enclosure /rc TOBACCO COMPANY LIST OCTOBER 2007 Alliance One International, Inc. United States Altria Group, Inc. United States AMCON Distributing Company United States Caribbean Cigar Company United States Carolina Group United States China Direct, Inc. United States Core-Mark Holding Co., Inc. United States Delek Resources, Inc. United States iCommerce Group Inc. United States Loews Corporation United States M&F Worldwide Corporation United States Noble Brands, Inc. United States North Atlantic Trading Company United States Pantry, Inc. (The) United States Reynolds American, Inc. United States Schweitzer-Mauduit International, Inc. United States Star Scientific, Inc. United States Universal Corporation United States UST Inc. United States Vector Group, Ltd. United States Alpha Tobacco Manufacturing Co. Ltd. Bangladesh British American Tobacco Bangladesh Co. Ltd. Bangladesh
Souza Cruz SA Brazil
Asenovgrad BT Bulgaria Blagoevgrad BT Bulgaria Bulgartabak Holding Bulgaria Dupnitza BT Bulgaria Haskovo BT Bulgaria Plovdiv BT Bulgaria Shoumen BT Bulgaria Sofia BT Bulgaria
Alimentation Couche-Tard Inc. Canada Rothmans, Inc. Canada
COMPANY COUNTRY
Compania Chilena de Tabacos SA Chile
Mudanjiang Hengfeng Paper Co., Ltd. China
Adris Grupa d.d. Coratia Tvornica Duhana Zagreb Croatia
Philip Morris CR AS Czech Republic
Eastern Tobacco Company Egypt
British American Tobacco (Ghana) Ghana
Hellenic Duty Free Shops S.A. Greece Karelia Tobacco Co. SA Greece Keranis Holdings S.A. Greece
Shanghai Industrial Holdings Hong Kong
Godfrey Phillips India Ltd. India GTC Industries Ltd. India I.T.C. Ltd. India Kothari Products Limited India RTCL Ltd. India VST Industries Ltd. India
PT B.A.T. Indonesia Indonesia PT Bentoel Internasional Investama Tbk Indonesia PT Gudang Garam Tbk Indonesia
Jerusalem Cigarette Israel
Societe Ivoirienne des Tabacs Ivory Coast
Carreras Group Ltd. Jamaica
Japan Tobacco Inc. Japan Seven & I Holdings Co. Ltd. Japan
International Tobacco & Cigarette Company Ltd. Jordan Union Tobacco Jordan
COMPANY COUNTRY
British American Tobacco Kenya, Ltd. Kenya
British American Tobacco Bhd Malaysia JT International Bhd Malaysia
Grupo Carso, SA de CV Mexico
Khyber Tobacco Company Ltd. Pakistan Pakistan Tobacco Co. Ltd. Pakistan Sarhad Cigarette Industries Ltd. Pakistan
Distell Group Ltd. South Africa Remgro Limited South Africa
KT&G Corporation South Korea
Altadis SA Spain Compania de Distribucion Integral Logista, SA Spain
Ceylon Tobacco Co. Ltd. Sri Lanka
Swedish Match Sweden
Compagnie Financiere Richemont AG Switzerland
President Chain Store Corporation Taiwan Taiwan FamilyMart Co., Ltd. Taiwan
Tanzania Cigarette Company Tanzania
West Indian Tobacco Company Ltd. Trinidad and Tobago
British American Tobacco, Plc United Kingdom Imperial Tobacco Group Plc United Kingdom Molins Plc United Kingdom
British American Tobacco (Zambia) Plc Zambia
British American Tobacco Zimbabwe Holdings Limited Zimbabwe