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, IncUnited 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 IncUnited States
Reynolds American Inc.United States
Schweitzer Mauduit International Inc.United States
Smokefree Innotec 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 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
Adris Grupa ddCroatia
Hrvatski Duhani ddCroatia
Tvornica Duhana Zagreb ddCroatia
Philip Morris CR ASCzeh 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
Press Corporation Ltd.Malawai
British American Tobacco (Malaysia) BerhadMalaysia
JT International BerhadMalaysia
Duvanski Kombinat ad Podgorica u stecajuMontenegro
Khyber Tobacco Company Ltd.Pakistan
Pakistan Tobacco Company LtdPakistan
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
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