PERAC Memo #30 - 2010: Tobacco Company List

Tobacco Company List

View original on MA State Library

Summary

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