PERAC Memo #9 - 2011: Tobacco Company List

MEMORANDUM #09, 2011 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: January 19, 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 January 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 call Robert Dennis at 617-666-4446 ext. 922. Enclosure TOBACCO COMPANY LIST JANUARY 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 Wellstone Filters, Inc.United States

Alpha Tobacco Manufacturing Co. Ltd.Bangladesh BLTCBangladesh British American Tobacco Bangladesh Co. Ltd.Bangladesh

Bosanac dd OrasjeBosnia & Herzegovina

FDS dd SarajevoBosnia & Herzegovina

Souza Cruz SABrazil

Asenovgrad BTBulgaria Blagoevgrad BTBulgaria Bulgartabac HoldingBulgaria Dupnitsa-tabak AD DupnitsaBulgaria Gotse Delchev-Tabak AD Gotse DelchevBulgaria Isperih-BT AD IsperihBulgaria Nikotiana BT Holding AD SofiaBulgaria Pazardzhik BT AD PazardzhikBulgaria Pleven-BT ADBulgaria Plovdiv Yuriy Gagarin BT AD PlovdivBulgaria Shoumen BTBulgaria Sila Holding ADBulgaria Slantse Stara Zagora BT ADBulgaria Sofia BTBulgaria Stara Planina Hold PlcBulgaria

COMPANYCOUNTRY

Compania Chilena de Tabacos SAChile

Mudanjiang Hengfeng Paper Co., Ltd.China Shenzhen Jinjia Color Printing Group Co LtdChina

Adris Grupa d.d.Croatia Hrvatski Duhani DDCroatia Tvornica Duhana ZagrebCroatia

Philip Morris CR ASCzech Republic

Eastern Tobacco CompanyEgypt

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 Raghunath International LtdIndia RDB Industries LimitedIndia RTCL Ltd.India Sinnar Bidi Udyog LtdIndia Virat Crane Industries LtdIndia VST Industries Ltd.India

PT Bentoel International Investama TbkIndonesia PT Gudang Garam TbkIndonesia PT Hanjaya Mandala Sampoerna TbkIndonesia

Jerusalem CigaretteIsrael

Societe Ivoirienne des TabacsIvory Coast

Carreras LimitedJamaica Lascelles deMercado & Company Ltd.Jamaica

Familymart Co. Ltd.Japan ITOCHU CorporationJapan Japan Tobacco Inc.Japan LAWSON, INC.Japan

Al-Eqbal Company For Investment PLCJordan Union Advanced Industries Co. PLCJordan Union Tobacco & Cigarette Industries CompanyJordan

COMPANYCOUNTRY

British American Tobacco Kenya, Ltd.Kenya

Tutunski Kombinat AD PrilepMacedonia

British American Tobacco BhdMalaysia

JT International BhdMalaysia

Grupo Carso SAB de CVMexico

Duvanski kombinat AD PodgoricaMontenegro

Khyber Tobacco Company Ltd.Pakistan Lakson Tobacco Co. Ltd.Pakistan Pakistan Tobacco Co. Ltd.Pakistan

British American Tobacco del Peru Holdings SAAPeru

Coka Duvanska Industrija ad CokaSerbia Dunavska Industrija ad BujanovacSerbia Duvanska industrija Nis Fabrika duvana ad Nis u sastavu Philip MorrisSerbia

New Toyo International Holdings LimitedSingapore

KT&G CorporationSouth Korea 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

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