BlackRock warns of scrutiny for tax holiday cash
World’s largest investor warns companies will be probed for repatriated cash use, and voices concern at continuing high levels of share buybacks.
Larry Fink, BlackRock. Photo: Shutterstock
BlackRock, the world's largest investor with $5trn under management, has warned US companies that they will be closely scrutinised for what they do with cash repatriated under the terms of a tax holiday expected to be introduced by Donald Trump.
The warning came in the annual letter to company leaders from BlackRock's chief executive Larry Fink. He expressed concern about the continuing high levels of share buybacks and its impact on long-term company growth. He pointed out that for the 12 months ending in the third quarter of 2016, dividend and buyback values in the S&P 500 exceeded the index's operating profit.
"While we certainly
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