TO: All Retirement Boards

FROM: Thomas J. O’Donnell, Compliance Officer

RE: Tobacco Company List

DATE: March 27, 2013

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 2013.  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 2013 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 2013
CompanyCountry
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 Inc.United States
Star Scientific, Inc.United 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 VT Holding AD SofiaBulgaria
Pazardzhik BT Menidzhmant AD PazardzhikBulgaria
Pleven - Bulgartabak AD PlevenBulgaria
Shumen Tabac AD ShumenBulgaria
Sila Holding ADBulgaria
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 Inc.China
Adris Grupa ddCroatia
Hrvatski Duhani ddCroatia
Tvornica Duhana Zagreb ddCroatia
Philip Morris CR ASCzech Republic
Eastern Company SAEEgypt
Karelia Tobacco Company Inc SAGreece
Dragonite International LimitedHong Kong
Huabao International Holdings Ltd.Hong Kong
Shanghai Industrial Holdings LimitedHong 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
PT Bentoel International Investama TbkIndonesia
PT Gudang Garam TbkIndonesia
PT Hanjaya Mandala Sampoerna TbkIndonesia
Jerusalem Cigarettes Co LtdIsrael
Societe Ivoirienne des Tabacs SAIvory Coast
Carreras LimitedJamaica
FamilyMart Co. Ltd.Japan
ITOCHU CorporationJapan
Japan Tobacco Inc.Japan
Lawson, Inc.Japan
Mitsubishi CorporationJapan
Aleqbal Investment Co PLCJordan
Jordanian Duty Free Shops PLCJordan
Union Advanced Industries Co. PLCJordan
Union Tobacco & Cigarette Industries CoJordan
British American Tobacco Kenya LtdKenya
Tutunski Kombinat AD PrilepMacedonia
Press Corporation Ltd.Malawi
British American Tobacco (Malaysia) BerhadMalaysia
JT International BerhadMalaysia
Grupo Carso, S.A.B. de C.V. `Mexico
Duvanski Kombinat AD Podgorica u stecajuMontenegro
Khyber Tobacco Company Ltd.Pakistan
Pakistan Tobacco Company Ltd.Pakistan
Philip Morris (Pakistan) Ltd.Pakistan
British American Tobacco del Peru Holding SAAPeru
BAT Vranje ad VranjeSerbia
Duvanska ad CokaSerbia
Duvanska industrija ad BujanovacSerbia
Philip Morris Operations ad NisSerbia
New Toyo International Holdings LimitedSingapore
KT&G CorporationSouth Korea
Nongshim Holdings Co., Ltd.South Korea
SK Chemical 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 Ltd.Tanzania
West Indian Tobacco Company Ltd.Trinidad and Tobago
Haci Omer Sabanci Holding A.S.Turkey
British American Tobacco UgandaUganda
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