Protecting Pennsylvania's Investments Act - Pennsylvania Treasury

Annual Report of Activities Pursuant to Act 44 of 2010 September 30, 2011
Table of Contents
Introduction ____________________________________________________________ 4
Primary Requirements of Act 44 _____________________________________________ 5
Definition of a Scrutinized Company __________________________________________ 6
Independence of South Sudan and Impact on Act 44 _____________________________ 8
Activities Timeline ________________________________________________________ 9
Timeline A: Fund Activities Timeline ________________________________________ 9
Response of Certain Public Funds ____________________________________________ 10
Methodology Used to Determine Scrutinized Companies ________________________ 10
Table 1a: Most Recent List of Scrutinized Companies Determined as Having
Involvement in Sudan. __________________________________________________ 11
Table 1b: Most Recent List of Scrutinized Companies Determined as Having
Involvement in Iran. ____________________________________________________ 13
Table 2: List of Prohibited Investments _____________________________________ 15
Table 3: Change Log for Scrutinized Lists ____________________________________ 19
Engagement and Company Correspondence ____________________________________ 21
Table 4: Date of Written Notice Informing the Scrutinized Companies as to
Their Status ___________________________________________________________ 21
Table 5: Correspondence from Companies Initially Determined as Directly Held
by One or More of the Four Funds __________________________________________ 24
Table 6: Correspondence from Companies Initially Determined as Not Directly
Held by One or More of the Four Funds _____________________________________ 25
Divestment Process and Activities____________________________________________ 26
Timeline B: Scrutinized Company Divestment Timeline _________________________ 26
Table 7: Current Divestment Schedule of Scrutinized Companies _________________ 27
Investment Transactions Related to Scrutinized Companies _______________________ 29
Table 8: Investment Transactions Related to Scrutinized Companies ______________ 29
Cost of Investments ______________________________________________________ 30
Conclusion ______________________________________________________________ 31
Appendix A: Letter Sent to U.S. Attorney General Eric Holder and Acknowledgement ___ 32
Appendix B: Letter Templates for Scrutinized Companies _________________________ 35
Appendix C: Securities Held by Funds ________________________________________ 39
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