TO:           All Retirement Boards

FROM:     Thomas J. O’Donnell, Compliance Officer

RE:           Tobacco Company List

DATE:      December 17, 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 January 2015.  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.

Tobacco Company List - January 2015
Alliance One International Inc.United States
Altria Group, Inc.United States
AMCON Distributing CompanyUnited States
Core-Mark Holding Company Inc.United States
Electronic Cigarettes International Group Ltd.United States
Icon Vapor Inc.United States
Lorillard Tobacco CompanyUnited States
Philip Morris International Inc.United States
Rapid Fire Marketing, Inc.United States
Reynolds American Inc.United States
Schweitzer Mauduit International Inc.United States
Smokefree Innotec Inc.United States
Universal CorporationUnited States
Vapor Corp.United States
Vaporin Inc.United States
Vector Group Ltd.United States
Wee-Cig International CorpUnited States
Bangladesh Leaf Tobacco Co. Ltd.Bangladesh
British American Tobacco Bangladesh Co. Ltd.Bangladesh
Fabrika Duhana Sarajevo dd SarajevoBosnia & Herzegovina
Souza Cruz S.ABrazil
Bulgartabak Holding ADBulgaria
Gotse Delchev Tabak AD Gotse DelchevBulgaria
Isperih BT AD IsperihBulgaria
Nicotiana BT Holding AD SofiaBulgaria
Pazardzhik-BT ADBulgaria
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
Mudanjian 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 Co SAEEgypt
Christian Dior S.AFrance
Karelia Tobacco Company Inc. SAGreece
Huabuo International Holdings Ltd.Hong Kong
Godfrey Phillips India LimitedIndia
Golden Tobacco Ltd.India
ITC LimitedIndia
NTC Industries Ltd.India
Sinnar Bidi Udyog Ltd.India
Virat Crane Industries Ltd.India
VST Industries LimitedIndia
PT Bentoel Internasional Investama TbkIndonesia
PT Gudang Garam TbkIndonesia
PT Hanjaua Mandala Sampoerna TbkIndonesia
Wismilak Inti Makmur Tbk PTIndonesia
YZ Queenco Ltd.Israel
Societe Ivoirienne des Tabacs SAIvory Coast
Carrerars Ltd.Jamaica
ITOCHU CorporationJapan
Japan Tobacco Inc.Japan
Mitsubishi CorporationJapan
Al-Eqbal Investment Company PSCJordan
Jordanian Duty Free Shops PSCJordan
Union Tobacco & Cigarette Industries Co PSCJordan
British American Tobacco Kenya Ltd.Kenya
Tutunski Kombinat AD PrilepMacedonia
Press Corporation Ltd.Malawi
Bright Packaging Industry BhdMalaysia
British American Tobacco (Malaysia) BerhadMalaysia
Sime Darby BhdMalaysia
Duvanski Kombinat ad Podgorica u stecajuMontenegro
British American Tobacco Holdings (The Netherlands) B.VNetherlands
Khyber Tobacco Company Ltd.Pakistan
Pakistan Tobacco Company Ltd.Pakistan
Philip Morris (Pakistan) LimitedPakistan
Jerusalem Cigarette Co. Ltd.Palestinian Territory
British American Tobacco del Per 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 Ltd.Singapore
KT&G CorporationSouth Korea
Nongshim Holdings Co., Ltd.South Korea
SK Chemicals Company, Ltd.South Korea
Miquel y Costas & Miquel, S.ASpain
Ceylon Tobacco Company PLCSri Lanka
Swedish Match ABSweden
Taisun Enterprise Co. Ltd.Taiwan
Taiwan FamilyMart Co., Ltd.Taiwan
Tanzania Cigarette Company Ltd.Tanzania
The West Indian Tobacco Company Ltd.Trinidad and Tobago
Bizim toptan Satis Magazalari ASTurkey
Haci Omer Sabanci Holding ASTurkey
Tav Havalimanlari Holding A.STurkey
British American Tobacco UgandaUganda
Booker Group PlcUnited Kingdom
British American Tobacco PlcUnited Kingdom
Imperial Tobacc 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 Ltd.Zimbabwe