MEMORANDUM #28, 2007

Commonwealth of Massachusetts | Public Employee Retirement Administration Commission
Five Middlesex Avenue, Suite 304, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 | www.mass.gov/perac
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Mary Ann Bradley | Paul V. Doane | Kenneth J. Donnelly | James M. Machado | Donald R. Marquis
Joseph E. Connarton, Executive Director


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 12 , 2007

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 2007.  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 2007 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

/rc


TOBACCO COMPANY LIST

JULY 2007

 

COMPANY

COUNTRY

 

 

Alliance One International, Inc.

United States

Altria Group, Inc.

United States

AMCON Distributing Company

United States

Caribbean Cigar Company

United States

Carolina Group

United States

China Direct, Inc.

United States

Core-Mark Holding Co., Inc.

United States

Delek Resources, Inc.

United States

iCommerce Group Inc.

United States

Loews Corporation

United States

M&F Worldwide Corporation

United States

Niche Resources, Inc.

United States

Noble Brands, Inc.

United States

North Atlantic Trading Company

United States

Pantry, Inc. (The)

United States

Reynolds American, Inc.

United States

Schweitzer-Mauduit International, Inc.

United States

Star Scientific, Inc.

United States

Universal Corporation

United States

UST Inc.

United States

Vector Group, Ltd.

United States

 

 

Alpha Tobacco Manufacturing Co. Ltd.

Bangladesh

British American Tobacco Bangladesh Co. Ltd.

Bangladesh

 

 

Souza Cruz SA

Brazil

 

 

Asenovgrad BT

Bulgaria

Blagoevgrad BT

Bulgaria

Bulgartabak Holding

Bulgaria

Dupnitza BT

Bulgaria

Haskovo BT

Bulgaria

Plovdiv BT

Bulgaria

Shoumen BT

Bulgaria

Sofia BT

Bulgaria

 

 

Alimentation Couche-Tard Inc.

Canada

Rothmans, Inc.

Canada

 

 


COMPANY

COUNTRY

 

 

Compania Chilena de Tabacos SA

Chile

 

 

Mudanjiang Hengfeng Paper Co., Ltd.

China

Shanghai Industrial Holdings

China

 

 

Compania Colombiana de Tabaco SA

Colombia

 

 

Adris Grupa d.d.

Coratia

Tvornica Duhana Zagreb

Croatia

 

 

Philip Morris CR AS

Czech Republic

 

 

Eastern Tobacco Company

Egypt

 

 

British American Tobacco (Ghana)

Ghana

 

 

Hellenic Duty Free Shops S.A.

Greece

Karelia Tobacco Co. SA

Greece

Keranis Holdings S.A.

Greece

 

 

Godfrey Phillips India Ltd.

India

GTC Industries Ltd.

India

I.T.C. Ltd.

India

Kothari Products Limited

India

RTCL Ltd.

India

VST Industries Ltd.

India

 

 

PT B.A.T. Indonesia

Indonesia

PT Bentoel Internasional Investama Tbk

Indonesia

PT Gudang Garam Tbk

Indonesia

 

 

Jerusalem Cigarette

Israel

 

 

Societe Ivoirienne des Tabacs

Ivory Coast

 

 

Carreras Group Ltd.

Jamaica

 

 

Japan Tobacco Inc.

Japan

Seven & I Holdings Co. Ltd.

Japan

 

 

International Tobacco & Cigarette Company Ltd.

Jordan

Union Tobacco

Jordan

 

 


COMPANY

COUNTRY

 

 

British American Tobacco Kenya, Ltd.

Kenya

 

 

British American Tobacco Bhd

Malaysia

JT International Bhd

Malaysia

 

 

Grupo Carso, SA de CV

Mexico

 

 

Khyber Tobacco Company Ltd.

Pakistan

Pakistan Tobacco Co. Ltd.

Pakistan

Sarhad Cigarette Industries Ltd.

Pakistan

 

 

Distell Group Ltd.

South Africa

Remgro Limited

South Africa

 

 

KT&G Corporation

South Korea

 

 

Altadis SA

Spain

Compania de Distribucion Integral Logista, SA

Spain

 

 

Ceylon Tobacco Co. Ltd.

Sri Lanka

 

 

Swedish Match

Sweden

 

 

Compagnie Financiere Richemont AG

Switzerland

 

 

President Chain Store Corporation

Taiwan

Taiwan FamilyMart Co., Ltd.

Taiwan

 

 

Tanzania Cigarette Company

Tanzania

 

 

West Indian Tobacco Company Ltd.

Trinidad and Tobago

 

 

British American Tobacco, Plc

United Kingdom

C.I. Traders Limited

United Kingdom

Imperial Tobacco Group Plc

United Kingdom

Molins Plc

United Kingdom

 

 

British American Tobacco (Zambia) Plc

Zambia

 

 

British American Tobacco Zimbabwe Holdings Limited

Zimbabwe

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