Asset managers are increasingly concerned about companies with low tax bills, fearing significant financial risks. Firms like Federated Hermes Inc. and Mirova of Natixis Investment Managers now scrutinise stocks based on tax histories, sometimes leading to exclusions from portfolios. Companies with taxes under 15% of profits trigger a closer review. This concern is expected to escalate as governments, aiming to recover post-pandemic spending, look at corporate tax contributions more closely. The issue of tax avoidance, costing governments up to USD240bn annually, has led to an OECD agreement for a 15% minimum global corporate tax rate. Asset managers are adjusting portfolios, anticipating that companies not meeting this threshold could face margin impacts not yet reflected in their valuations.