PERAC Memo #29 - 2011: Tobacco Company List
Tobacco Company List
View original on mass.gov →Summary
This memo transmits an updated Tobacco Company List (dated July/October 2011), which supersedes all prior lists and identifies companies deriving more than 15% of revenue from tobacco sales, in which retirement systems are barred from making new investments under Chapter 119 of the Acts of 1997 (applied also to pooled funds exceeding the 15% threshold).
Boards must forward the list to their investment advisors (or direct them to it on PERAC's website), noting it is restricted to use for Massachusetts public fund clients only. Since PERAC will audit portfolios for compliance, boards should review current holdings against this list and, if any prohibited investments are found, must consult with PERAC before prudently divesting to come into compliance.
Full Text
MEMORANDUM #29, 2011 Mennis M E M O R A N D U M TO: All Retirement Boards FROM: Joseph I. Martin, Deputy Executive Director RE: Tobacco Company List DATE: October 21, 2011 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 2011. 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 2011 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 contact this office. Enclosure TOBACCO COMPANY LIST OCTOBER 2011 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 2011. 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 2011 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 contact this office. Enclosure TOBACCO COMPANY LIST OCTOBER 2011 COMPANYCOUNTRY
Alliance One International, Inc.United States Altria Group, Inc.United States AMCON Distributing CompanyUnited States Core-Mark Holding Co., Inc.United States Lorillard, 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
British American Tobacco Bangladesh Co. Ltd.Bangladesh
Bosanac dd OrasjeBosnia & Herzegovina
FDS dd SarajevoBosnia & Herzegovina
Souza Cruz S.A.Brazil
Asenovgrad-Tabak AD AsenovgradBulgaria Blagoevgrad BT AD BlagoevgradBulgaria Bulgartabak Holding ADBulgaria Dupnitsa-Tabak ADBulgaria Gotse Delchev Tabak AD Gotse DelchevBulgaria Isperih BT AD IsperihBulgaria Nikotiana BT Holding AD SofiaBulgaria Pazardzhik BT AD PazardzhikBulgaria Pleven Bulgartabak ADBulgaria Shumen Tabak AD ShumenBulgaria
Sila Holding ADBulgaria Slantse Stara Zagora-Tabak ADBulgaria Sofia Bulgartabac ADBulgaria Stara Planina Hold ADBulgaria Yuriy Gagarin AD PlovdivBulgaria
British American Tobacco Chile Operaciones SAChile
Mudanjiang Hengfeng Paper Co., Ltd.China Shenzhen Jinjia Color Printing Group Co., Ltd.China
COMPANYCOUNTRY
Adris Grupa d.d.Croatia Hrvatski Duhani DDCroatia Tvornica Duhana Zagreb ddCroatia
Philip Morris CR ASCzech Republic
Eastern Company SAEEgypt
Karelia Tobacco Company Inc 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 NTC Industries Ltd.India Sinnar Bidi Udyog LtdIndia Virat Crane Industries LtdIndia VST Industries Ltd.India
Gudang Garam Tbk PTIndonesia PT Bentoel Internasional Investama TbkIndonesia PT Hanjaya Mandala Sampoerna TbkIndonesia
Jerusalem Cigarette Company LtdIsrael
Societe Ivoirienne des TabacsIvory Coast
Carreras LimitedJamaica
FamilyMart Co. Ltd.Japan ITOCHU CorporationJapan Japan Tobacco Inc.Japan Lawson, Inc.Japan Mitsubishi CorporationJapan
Al-Eqbal Company For Investment Co PLCJordan Union Advanced Industries Co. PLCJordan Union Tobacco & Cigarette IndustriesJordan
British American Tobacco Kenya, Ltd.Kenya
Tutunski Kombinat AD PrilepMacedonia
COMPANY COUNTRY
British American Tobacco BhdMalaysia JT International BhdMalaysia
Grupo Carso SAB de CVMexico
Duvanski kombinat AD PodgoricaMontenegro
Khyber Tobacco Company Ltd.Pakistan Pakistan Tobacco Co. Ltd.Pakistan Philip Morris (Pakistan) Ltd.Pakistan
British American Tobacco del Peru Holdings SAAPeru
Coka Duvanska Industrija ad CokaSerbia Dunavska Industrija ad BujanovacSerbia Philip Morris Operations ad NisSerbia
New Toyo International Holdings LimitedSingapore
KT&G CorporationSouth Korea
Pobis TNC Co., Ltd. SK Chemicals Company, Ltd.South Korea
Miquel y Costas & Miquel S.A.Spain
Ceylon Tobacco Co. Ltd.Sri Lanka
Swedish Match ABSweden
Taisun Enterprise Co. Ltd.Taiwan Taiwan FamilyMart Co., Ltd.Taiwan
Tanzania Cigarette CompanyTanzania
West Indian Tobacco Company Ltd.Trinidad and Tobago
Haci Omer Sabanci Holding A.S.Turkey
British American Tobacco Uganda LtdUganda
Booker Group PlcUnited Kingdom British American Tobacco, PlcUnited Kingdom Imperial Tobacco Group PlcUnited Kingdom
Cat Loi Joint Stock Co.Vietnam Ngan Son Joint Stock Co.Vietnam
COMPANYCOUNTRY
British American Tobacco (Zambia) PlcZambia
British American Tobacco Zimbabwe Holdings LimitedZimbabwe TSL LtdZimbabwe