PERAC Memo #17 - 2009: Tobacco Company List
Tobacco Company List
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PERAC Memo #17/2009 transmits the updated April 2009 Tobacco Company List, superseding all prior versions, which retirement boards must use to comply with Chapter 119 of the Acts of 1997 barring new investments in companies deriving more than 15% of revenue from tobacco sales. Boards should distribute this list to their investment advisors (for MA public fund use only), apply the 15% test at the pooled-fund level when applicable, and — since PERAC audits portfolios for compliance — must consult with PERAC before divesting any holdings found in violation.
Full Text
MEMORANDUM #17, 2009 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: April 8, 2009 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 April 2009. 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 2009 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 APRIL 2009 COMPANY COUNTRY
Alliance One International, Inc. United States Altria Group, Inc. United States AMCON Distributing Company United States Caribbean Cigar Company United States Core-Mark Holding Co., Inc. United States iCommerce Group Inc. United States Lorillard, Inc. United States Noble Brands, Inc. United States North Atlantic Trading Company United States Philip Morris International, Inc. 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 Wellstone Filters, Inc. United States
Alpha Tobacco Manufacturing Co. Ltd. Bangladesh British American Tobacco Bangladesh Co. Ltd. Bangladesh
Huabao International Holdings Ltd. Bermuda
Souza Cruz SA Brazil
Asenovgrad BT Bulgaria Blagoevgrad BT Bulgaria Bulgartabac Holding Bulgaria Dupnitza BT Bulgaria Haskovo-Tabac AD Bulgaria Pleven Bulgartabac AD Bulgaria Shoumen BT Bulgaria Slantse Stara Zagora BT AD Bulgaria Sofia BT Bulgaria
Alimentation Couche-Tard Inc. Canada
Compania Chilena de Tabacos SA Chile
Mudanjiang Hengfeng Paper Co., Ltd. China
COMPANY COUNTRY
Adris Grupa d.d. Croatia Hrvatski Duhani DD Croatia 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
Shanghai Industrial Holdings Hong Kong
Godfrey Phillips India Ltd. India Golden Tobacco Ltd. India I.T.C. Ltd. India Kothari Products Limited India RDB Industries Limited India RTCL Ltd. India VST Industries Ltd. India
PT B.A.T. Indonesia Indonesia PT Bentoel International Investama Tbk Indonesia PT Gudang Garam Tbk Indonesia
Jerusalem Cigarette Israel
Societe Ivoirienne des Tabacs Ivory Coast
Carreras Limited Jamaica
FamilyMart Co. Ltd. Japan Japan Tobacco Inc. Japan Seven & I Holdings Co., Ltd. Japan
Al-Eqbal Company For Investment PLC Jordan Union Tobacco & Cigarette Industries Company Jordan
British American Tobacco Kenya, Ltd. Kenya
Reinet Investments S.C.A. Luxembourg
British American Tobacco Bhd Malaysia JT International Bhd Malaysia
COMPANY COUNTRY
Grupo Carso SAB de CV Mexico
Khyber Tobacco Company Ltd. Pakistan Pakistan Tobacco Co. Ltd. Pakistan
Donskoy Tabak BRD Russia
Distell Group Ltd. South Africa
KT&G Corporation South Korea
Miquel y Costas & Miquel SA Spain
Ceylon Tobacco Co. Ltd. Sri Lanka
Swedish Match Sweden
President Chain Store Corp. Taiwan Taisun Enterprise Co. Ltd. Taiwan Taiwan FamilyMart Co., Ltd. Taiwan Uni-President Enterprises Corp. 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