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Jump to full article: National Post (ca), 2008-07-29
Author: Gordon Keast, National Post
Intro: At the same time Ottawa is trying to get Canadians to stop smoking through ads, high taxes, age restrictions and dire health warnings on every cigarette pack, the Canada Pension Plan Investment Board (CPPIB), the federal Crown corporation that manages the assets of the Canada Pension Plan, is pouring hundreds of millions of dollars into tobacco stocks. As of March 31, 2008, its tobacco holdings had a market value of more than $490-million. . . .
like it or not, part of your premiums have been used to buy huge stakes in some of the world's biggest tobacco companies. These holdings include $165-million stake in Philip Morris International and a $72-million investment in Altria, which controls half the U. S. cigarette market.
Your CPP contributions have also been used to buy $38-million worth of British American Tobacco, the world's #2 tobacco firm (behind Altria Group) and a company that sells nearly 855 billion cigarettes in more than 190 countries annually. Other sizable holdings include Japan Tobacco ($42-million), Imperial Tobacco ($25-million),Carolina Group ($24-million), Korea Tobacco ($21-million), Reynolds American ($12-million) and Canada's largest tobacco company, Rothman's ($57-million). . . .
investing public money in tobacco stocks is a bit like second-hand smoke, it's both annoying and a serious health hazard that racks up billions in health care costs. Maybe it's time for the Canada Pension Plan to give up smoking.
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