PERAC Memo #30 - 2010: Tobacco Company List
Tobacco Company List
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PERAC Memorandum #30/2010 transmits the updated July 2010 Tobacco Company List, which replaces all prior lists and takes effect immediately upon receipt, 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 violations arising within pooled funds assessed as a whole). Boards must forward the list to their investment advisors (or direct them to PERAC's website) and note it applies solely to Massachusetts public fund clients; boards found holding non-compliant investments during PERAC's audit must divest prudently and are required to consult with PERAC before taking any divestment action.
Full Text
MEMORANDUM #30, 2010 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: July 21, 2010 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 July 2010. 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 2010 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 TOBACCO COMPANY LIST JULY 2010 COMPANYCOUNTRY
Alliance One International, Inc.United States Altria Group, Inc.United States AMCON Distributing CompanyUnited States Caribbean Cigar CompanyUnited States Core-Mark Holding Co., Inc.United States Lorillard, Inc.United States Noble Brands, Inc.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 CorporationUnited States Vector Group, Ltd.United States Wellstone Filters, Inc.United States
Alpha Tobacco Manufacturing Co. Ltd.Bangladesh British American Tobacco Bangladesh Co. Ltd.Bangladesh
Souza Cruz SABrazil
Asenovgrad BTBulgaria Blagoevgrad BTBulgaria Bulgartabac HoldingBulgaria Haskovo-Tabac ADBulgaria Pleven Bulgartabac ADBulgaria Shumen BTBulgaria Sila Holding ADBulgaria Slantse Stara Zagora BT ADBulgaria Sofia BTBulgaria
Alimentation Couche-Tard Inc.Canada
Compania Chilena de Tabacos SAChile
Mudanjiang Hengfeng Paper Co., Ltd.China
Adris Grupa d.d.Croatia Hrvatski Duhani DDCroatia
Tvornica Duhana ZagrebCroatia
Philip Morris CR ASCzech Republic COMPANYCOUNTRY
Eastern Tobacco CompanyEgypt
Hellenic Duty Free Shops S.A.Greece Karelia Tobacco Co. SAGreece
Huabao International Holdings Ltd.Hong Kong Shanghai Industrial HoldingsHong Kong
Godfrey Phillips India Ltd.India Golden Tobacco Ltd.India I.T.C. Ltd.India Kothari Products LimitedIndia RDB Industries LimitedIndia RTCL Ltd.India
VST Industries Ltd.India
PT B.A.T. IndonesiaIndonesia PT Bentoel International Investama TbkIndonesia PT Gudang Garam TbkIndonesia
Jerusalem CigaretteIsrael
Societe Ivoirienne des TabacsIvory Coast
Carreras LimitedJamaica
FamilyMart Co. Ltd.Japan Japan Tobacco Inc.Japan Seven & I Holdings Co., Ltd.Japan
Al-Eqbal Company For Investment PLCJordan Union Tobacco & Cigarette Industries CompanyJordan
British American Tobacco Kenya, Ltd.Kenya
British American Tobacco BhdMalaysia JT International BhdMalaysia
Grupo Carso SAB de CVMexico
Khyber Tobacco Company Ltd.Pakistan Pakistan Tobacco Co. Ltd.Pakistan
KT&G CorporationSouth Korea
Miquel y Costas & Miquel SASpain
COMPANYCOUNTRY
Ceylon Tobacco Co. Ltd.Sri Lanka
Swedish Match ABSweden
President Chain Store Corp.Taiwan Taisun Enterprise Co. Ltd.Taiwan Taiwan FamilyMart Co., Ltd.Taiwan Uni-President Enterprises Corp.Taiwan
Tanzania Cigarette CompanyTanzania
West Indian Tobacco Company Ltd.Trinidad and Tobago
British American Tobacco, PlcUnited Kingdom Imperial Tobacco Group PlcUnited Kingdom Molins PlcUnited Kingdom
British American Tobacco (Zambia) PlcZambia
British American Tobacco Zimbabwe Holdings LimitedZimbabwe