PERAC Memo #15 - 2014: Tobacco Company List

MEMORANDUM #15, 2014 Gregory R. Mennis M E M O R A N D U M TO: All Retirement Boards FROM: Thomas J. O’Donnell, Compliance Officer RE: Tobacco Company List DATE: April 8, 2014 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 April 2014. 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 2014 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

APRIL 2014 COMPANYCOUNTRY

22nd Century Group, Inc.United States Alliance One International Inc.United States Altria Group, Inc.United States AMCON Distributing CompanyUnited States Core-Mark Holding Company, Inc.United States Lorillard, Inc.United States Philip Morris International Inc.United States Reynolds American Inc.United States Schweitzer Mauduit International Inc.United States Smokefree Innotec IncUnited States Universal CorporationUnited States Vapor Corp.United States Vector Group Ltd.United States

British American Tobacco Bangladesh Co. Ltd.Bangladesh

Fabrika Duhana Sarajevo dd SarajevoBosnia & Herzegovina

Souza Cruz S.A.Brazil

Bulgartabak Holding ADBulgaria Gotse Delchev Tabak AD Gotse DelchevBulgaria Isperih BT AD IsperihBulgaria Nicotiana BT Holding AD SofiaBulgaria Pazardzhik BT Menidzhmant AD PazardzhikBulgaria Shumen Tabac AD ShumenBulgaria Sila Holding PlcBulgaria Slantse Stara Zagora Tabak AD Stara ZagoraBulgaria Sofia Bulgartaback AD SofiaBulgaria Stara Planina Hold AD SofiaBulgaria Yuri Gagarin AD PlovdivBulgaria

British American Tobacco Chile Operaciones SAChile

Mudanjiang Hengfeng Paper Co., Ltd.China Shenzhen Jinjia Color Printing Group Co., Ltd.China Shiner International IncChina

COMPANYCOUNTRY

Adris Grupa ddCroatia 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

Godfrey Phillips India Ltd.India Golden Tobacco Ltd.India ITC LimitedIndia NTC Industries Ltd.India Sinnar Bidi Udyog LtdIndia

Virat Crane Industries LtdIndia VST Industries LimitedIndia

PT Bentoel Internasional Investama TbkIndonesia PT Gudang Garam TbkIndonesia PT Hanjaya Mandala Sampoerna TbkIndonesia Wismilak Inti Makmur PTIndonesia

Jerusalem Cigarette Co LtdIsrael

Societe Ivoirienne des Tabacs SAIvory Coast

Carreras LtdJamaica

ITOCHU CorporationJapan Japan Tobacco Inc.Japan Mitsubishi CorporationJapan

Jordanian Duty Free Shops PSCJordan

Sharikat Al Eqbal Lil Istethmar M.En.MJordan Union Tobacco & Cigarette Industries Co PLCJordan

British American Tobacco Kenya LtdKenya

Tutunski Kombinat AD PrilepMacedonia

COMPANYCOUNTRY

Press Corporation Ltd.Malawi

British American Tobacco (Malaysia) BerhadMalaysia JT International BerhadMalaysia

Duvanski Kombinat ad Podgorica u stecajuMontenegro

Khyber Tobacco Company Ltd.Pakistan Pakistan Tobacco Company Ltd.Pakistan Philip Morris (Pakistan) LimitedPakistan

British American Tobacco del Peru Holding SAAPeru

LT Group Inc.Philippines

BAT Vranje ad VranjeSerbia Duvanska ad CokaSerbia Duvanska industrija ad BujanovacSerbia Philip Morris Operations a.d. NisSerbia

New Toyo International Holdings LtdSingapore

KT&G CorporationSouth Korea Nongshim Holdings Co., Ltd.South Korea SK Chemicals Company, Ltd.South Korea

Miquel y Costas & Miquel, S.A.Spain

Ceylon Tobacco Company PLCSri Lanka

Swedish Match ABSweden

Taisun Enterprise Co. Ltd.Taiwan Taiwan FamilyMart Co., Ltd.Taiwan

Tanzania Cigarette Company LtdTanzania

West Indian Tobacco Company Ltd.Trinidad and Tobago

Bizim Toptan Satis Magazalari ASTurkey Haci Omer Sabanci Holding A.S.Turkey

British American Tobacco UgandaUganda

COMPANYCOUNTRY

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 Hoang Long GroupVietnam

British American Tobacco Zambia PlcZambia

British American Tobacco Zimbabwe Holdings LtdZimbabwe