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 14, 2008
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 2008. 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 2008 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
COMPANY |
COUNTRY |
|
|
Alliance One International, Inc. |
United States |
Altria Group, Inc. |
United States |
AMCON Distributing Company |
United States |
Caribbean Cigar Company |
United States |
Core-Mark Holding Co., Inc. |
United States |
Delek Resources, Inc. |
United States |
iCommerce Group Inc. |
United States |
Lorillard, Inc. |
United States |
M&F Worldwide Corporation |
United States |
Noble Brands, Inc. |
United States |
North Atlantic Trading Company |
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 Corporation |
United States |
UST Inc. |
United States |
Vector Group, Ltd. |
United States |
Wellstone Filters, Inc. |
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-Tabac AD |
Bulgaria |
Plovdiv BT |
Bulgaria |
Shoumen BT |
Bulgaria |
Slantse Stara Zagora BT AD |
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 |
|
|
Adris Grupa d.d. |
Croatia |
Hrvatski Duhani DD |
Croatia |
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 |
|
|
Shanghai Industrial Holdings |
Hong Kong |
|
|
Godfrey Phillips India Ltd. |
India |
GTC Industries Ltd. |
India |
I.T.C. Ltd. |
India |
Kothari Products Limited |
India |
RDB Industries Limited |
India |
RTCL Ltd. |
India |
VST Industries Ltd. |
India |
|
|
PT B.A.T. Indonesia |
Indonesia |
PT Bentoel International 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 SAB de CV |
Mexico |
|
|
Khyber Tobacco Company Ltd. |
Pakistan |
Pakistan Tobacco Co. Ltd. |
Pakistan |
Sarhad Cigarette Industries Ltd. |
Pakistan |
|
|
Donskoy Tabak BRD |
Russia |
|
|
Distell Group Ltd. |
South Africa |
Remgro Limited |
South Africa |
|
|
KT&G Corporation |
South Korea |
|
|
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 |
Imperial Tobacco Group Plc |
United Kingdom |
Molins Plc |
United Kingdom |
|
|
British American Tobacco (Zambia) Plc |
Zambia |
|
|
British American Tobacco Zimbabwe Holdings Limited |
Zimbabwe |