PERAC Memo #3 - 2012: Tobacco Company List

MEMORANDUM #03, 2012 Gregory R. 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: January 6, 2012 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 2012. 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 2012 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 JANUARY 2012

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

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 Nicotiana BT Holding AD SofiaBulgaria Pazardzhik BT AD PazardzhikBulgaria Pleven BulgartabakBulgaria 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 Seven & I Holdings Co., Ltd.Japan

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

COMPANYCOUNTRY

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 ADSerbia

New Toyo International Holdings LimitedSingapore

KT&G CorporationSouth Korea Nongshim Holdings Co., Ltd.South Korea Pobis TNC Co., Ltd.South 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

Booker Group PlcUnited Kingdom British American Tobacco, PlcUnited Kingdom Imperial Tobacco Group PlcUnited Kingdom

Cat Loi Joint Stock Co.Vietnam Cong Ty Co Phan Ngan SonVietnam COMPANYCOUNTRY

British American Tobacco (Zambia) PlcZambia

British American Tobacco Zimbabwe Holdings LimitedZimbabwe TSL LtdZimbabwe