Divestment Annual Report - Pennsylvania Treasury

More documents

Recommendations

Info

Annual Report of Activities Pursuant to Act 44 of 2010 September 30, 2012 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 ______________________________________________________________ 11 Methodology Used to Determine Scrutinized Companies __________________________________________ 11 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. __________ 12 Table 2: List of Prohibited Investments _______________________________________________________ 14 Table 3: Change Log for Scrutinized Lists _____________________________________________________ 17 Engagement and Company Correspondence _____________________________________________________ 19 Table 4: Date of Written Notice Informing the Scrutinized Companies as to Their Status _________________ 19 Table 5: Correspondence from Companies Initially Determined as Directly Held by One or More of the Four Funds _________________________________________________________________________________ 20 Table 6: Correspondence from Companies Initially Determined as Not Directly Held by One or More of the Four Funds _________________________________________________________________________________ 20 Divestment Process and Activities _____________________________________________________________ 21 Timeline B: Scrutinized Company Divestment Timeline ___________________________________________ 21 Table 7: Current Divestment Schedule of Scrutinized Companies ___________________________________ 22 Investment Transactions Related to Scrutinized Companies _________________________________________ 24 Table 8: Investment Sales of Scrutinized Companies for the period ending June 30, 2012 ________________ 24 Cost of Investments ________________________________________________________________________ 26 Table 9: Costs and Losses (Gains) of Investments for the period ending June 30, 2011, by category of expense _____________________________________________________________________________________ 27 Table 10: Cost and Losses (Gains) of Investments for the period ending June 30, 2011, by fund __________ 27 Table 11: Cost and Losses (Gains) of Investments for the period ending June 30, 2012, by category of expense _____________________________________________________________________________________ 28 Table 12: Cost and Losses (Gains) of Investments for the period ending June 30, 2012, by fund __________ 28 Conclusion _______________________________________________________________________________ 30 Appendix A: Letter Sent to U.S. Attorney General Eric Holder and Acknowledgement ______________________ 31 Appendix B: Letter Templates for Scrutinized Companies ___________________________________________ 34 Appendix C: Reimbursement Methodology _______________________________________________________ 38 Appendix D: Securities Held by Funds __________________________________________________________ 40 Page 3 of 136
Annual Report of Activities Pursuant to Act 44 of 2010 September 30, 2012 Introduction On July 2, 2010, Governor Ed Rendell signed Act 44 of 2010 (hereafter “the Act” or “Act 44”). Act 44 requires that Pennsylvania’s public funds compile and publish lists of “scrutinized companies.” These lists comprise companies identified as having prohibited business operations in Iran or Sudan (as defined by Act 44). Furthermore, the Act prohibits Pennsylvania public funds from acquiring the securities of scrutinized companies in the future and requires them to divest the securities of scrutinized companies that fail to take action required by the Act with respect to their scrutinized activities within a specified period of time. Because they face the same responsibilities, the Pennsylvania Treasury Department, the State Employees’ Retirement System, the Public School Employees’ Retirement System, and the Pennsylvania Municipal Retirement System (“the Four Funds”) have chosen to work together to comply with the Act. The Four Funds are coordinating their activities through the Pennsylvania Treasury Department. This report is submitted on behalf of the Four Funds and has been prepared pursuant to the reporting requirements found in Act 44. Page 4 of 136
Page 1 and 2: September 30, 2012
Page 3: Annual Report of Activities Pursuan
Page 7 and 8: Annual Report of Activities Pursuan
Page 55 and 56:
Annual Report of Activities Pursuan
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137:
show all

Divestment Annual Report - Pennsylvania Treasury

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?