TO: All Retirement Boards

FROM: Thomas J. O’Donnell, Compliance Officer

RE: Tobacco Company List

DATE: March 29, 2012

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 2012.  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 2012 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 2012
CompanyCountry
Alliance One International, Inc.United States
Altria Group, Inc.United States
AMCON Distributing CompanyUnited States
Core-Mark Holding Co., Inc.United States
Lorillard, Inc.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 CorporationUnited States
Vector Group, Ltd.United States
British American Tobacco Bangladesh Co. Ltd.Bangladesh
FDS dd SarajevoBosnia & Herzegovina
Souza Cruz S.A.Brazil
Asenovgrad-Tabak AD AsenovgradBulgaria
Blagoevgrad BT AD BlagoevgradBulgaria
Bulgartabak Holding ADBulgaria
Gotse Delchev Tabak AD Gotse DelchevBulgaria
Isperih BT AD IsperihBulgaria
Nicotiana BT Holding AD SofiaBulgaria
Pazardzhik BT AD PazardzhikBulgaria
Pleven BulgartabakBulgaria
Shumen Tabak AD ShumenBulgaria
Sila Holding ADBulgaria
Slantse Stara Zagora-Tabak ADBulgaria
Sofia Bulgartabac ADBulgaria
Stara Planina Hold ADBulgaria
Yuriy Gagarin AD PlovdivBulgaria
British American Tobacco Chile Operaciones SAChile
Mudanjiang Hengfeng Paper Co., Ltd.China
Shenzhen Jinjia Color Printing Group Co., Ltd.China
Adris Grupa d.d.Croatia
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
Shanghai Industrial HoldingsHong 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
Gudang Garam Tbk PTIndonesia
PT Bentoel Internasional Investama TbkIndonesia
PT Hanjaya Mandala Sampoerna TbkIndonesia
Jerusalem Cigarette Company LtdIsrael
Societe Ivoirienne des TabacsIvory Coast
Carreras LimitedJamaica
FamilyMart Co. Ltd.Japan
ITOCHU CorporationJapan
Japan Tobacco Inc.Japan
Lawson, Inc.Japan
Mitsubishi CorporationJapan
Al-Eqbal Company For Investment Co PLCJordan
Union Advanced Industries Co. PLCJordan
Union Tobacco & Cigarette IndustriesJordan
British American Tobacco Kenya, Ltd.Kenya
Tutunski Kombinat AD PrilepMacedonia
Press Corporations Ltd.Malawi
British American Tobacco BhdMalaysia
JT International BhdMalaysia
Grupo Carso, S.A.B. de C.V.Mexico
Duvanski Kombinat AD PodgoricaMontenegro
Khyber Tobacco Company Ltd.Pakistan
Pakistan Tobacco Co. Ltd.Pakistan
Philip Morris (Pakistan) Ltd.Pakistan
British American Tobacco del Peru Holdings SAAPeru
Coka Duvanska Industrija ad CokaSerbia
Dunavska Industrija ad BujanovacSerbia
Philip Morris Operations ADSerbia
New Toyo International Holdings LimitedSingapore
KT&G CorporationSouth Korea
Nongshim Holdings Co., Ltd.South Korea
Pobis TNC Co., Ltd.South Korea
SK Chemicals Company, Ltd.South Korea
Miquel y Costas & Miquel S.A.Spain
Cetlon Tobacco Co. PLCSri Lanka
Swedish Match ABSweden
Taisun Enterprise Co. Ltd.Taiwan
Taiwan FamilyMart Co., Ltd.Taiwan
Tanzania Cigarette CompanyTanzania
West Indian Tobacco Company Ltd.Trinidad and Tobago
Haci Omer Sabanci Holding A.S.Turkey
British American Tobacco Uganda LtdUganda
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
British American Tobacco (Zambia) PlcZambia
British American Tobacco Zimbabwe Holdings LimitedZimbabwe
TSL LtdZimbabwe