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 2017. 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 2017 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 as of July 2017
COMPANY
COUNTRY
22nd Century Group, Inc.
United States
Alliance One International, Inc.
United States
Altria Group, Inc.
United States
AMCON Distributing Company
United States
American Heritage International Inc.
United States
Caesars Acquisition Company
United States
Core-Mark Holding Company, Inc.
United States
Electronic Cigarettes International Group, Ltd
United States
Gilla Inc.
United States
Healthier Choices Management Corp.
United States
Icon Vapor Inc.
United States
Medigreen Holdings Corporation
United States
Newgen Concepts 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
Turning Point Brands, Inc.
United States
Universal Corporation
United States
Vapor Corp.
United States
Vapor Hub International Inc.
United States
Vector Group Ltd.
United States
VPR Brands LP
United States
Wee-Cig International Corp
United States
Bangladesh Leaf Tobacco Co. Ltd.
Bangladesh
British American Tobacco Bangladesh Co. Ltd.
Bangladesh
Fabrika Duhana Sarajevo dd Sarajevo
Bosnia & Herzegovina
Bulgartabac Holding AD
Bulgaria
Gotse Delchev Tabac AD
Bulgaria
Nicotiana BT Holding AD
Bulgaria
Pazardzhik BTM AD
Bulgaria
Shumen Tabac AD
Bulgaria
Sila Holding Plc
Bulgaria
Slantse Stara Zagora Tabak
Bulgaria
Stara Planina Hold AD
Bulgaria
Yuri Gagarin AD
Bulgaria
George Weston Limited
Canada
Kimree Inc.
China
Mudanjiang Hengfeng Paper Co., Ltd.
China
Shenzhen Jinjia Color Printing Group Co., Ltd.
China
Shiner International Inc
China
Xinjiang Bai Hua Cun Co., Ltd.
China
Valorem S.A.
Columbia
Hrvatski Duhani dd
Croatia
CTO PCL
Cyprus
Philip Morris CR as
Czech Republic
Scandinavian Tobacco Group A/S
Denmark
Eastern Co SAE
Egypt
Christian Dior S.E.
France
Karelia Tobacco Company Inc SA
Greece
Century City International Holdings Limited
Hong Kong
China Flavors and Fragrances Co Ltd.
Hong Kong
Huabao International Holdings Ltd.
Hong Kong
Shanghai Industrial Holdings Limited
Hong Kong
Sheen Tai Holdings Group Co. Ltd.
Hong Kong
Godfrey Phillips India Limited
India
Golden Tobacco Ltd.
India
ITC Limited
India
NTC Industries Ltd.
India
Sinnar Bidi Udyog Ltd
India
Virat Crane Industries Ltd
India
VST Industries Limited
India
PT Bentoel Internasional Investama Tbk
Indonesia
PT Gudang Garam Tbk
Indonesia
PT Hanjaya Mandala Sampoerna Tbk
Indonesia
Wismilak Inti Makmur Tbk PT
Indonesia
Societe Ivoirienne des Tabacs SA
Ivory Coast
Carreras Ltd
Jamaica
ITOCHU Corporation
Japan
Japan Tobacco Inc.
Japan
Mitsubishi Corporation
Japan
Al-Eqbal Investment Company PSC
Jordan
Jordanian Duty Free Shops PSC
Jordan
Union Tobacco & Cigarette Industries Co PSC
Jordan
British American Tobacco Kenya Ltd
Kenya
Tutunski Kombinat AD Prilep
Macedonia
Press Corporation Ltd.
Malawi
7 Eleven Malaysia Holdings Bhd
Malaysia
Bright Packaging Industry Bhd
Malaysia
British American Tobacco (Malaysia) Berhad
Malaysia
Duvanski Kombinat ad Podgorica u stecaju
Montenegro
Schiphol Nederland B.V.
Netherlands
Khyber Tobacco Company Ltd.
Pakistan
Pakistan Tobacco Company Ltd.
Pakistan
Philip Morris (Pakistan) Limited
Pakistan
Jerusalem Cigarette Co Ltd
Palestinian Territory
LT Group, Inc.
Philippines
Kingdom Holding Company
Saudi Arabia
British American Tobacco Vranje ad Vranje
Serbia
Coka Duvanska Industrija ad Coka
Serbia
Duvanska industrija ad Bujanovac
Serbia
Philip Morris Operations a.d. Nis
Serbia
New Toyo International Holdings Ltd
Singapore
Hosken Consolidated Investments Limited
South Africa
KT&G Corporation
South Korea
Nongshim Holdings Co., Ltd.
South Korea
SK Chemicals Company, Ltd.
South Korea
Compania de Distribucion Integral Logista Holdings, S.A.