{"id":625,"date":"2026-04-07T09:00:51","date_gmt":"2026-04-07T13:00:51","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/?p=625"},"modified":"2026-04-14T10:28:49","modified_gmt":"2026-04-14T14:28:49","slug":"investing-foundations-charging-fees-on-cash","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/investing-foundations-charging-fees-on-cash\/","title":{"rendered":"Investing Foundations &#8211; Charging Fees on Cash"},"content":{"rendered":"<p><strong>What We Believe<\/strong><\/p>\n<p>We believe advisory fees should reflect active oversight and management \u2014 not passive balances.<\/p>\n<p>Clients should clearly understand how fees apply across all components of their portfolio, including cash.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>The Background<\/strong><\/p>\n<p>In many advisory arrangements, management fees are applied to total assets under administration. This can include equities, fixed income, alternative strategies \u2014 and sometimes cash.<\/p>\n<p>Cash may be held for several reasons:<\/p>\n<p>\u2022 Short-term liquidity needs<br \/>\n\u2022 Working capital<br \/>\n\u2022 Pending investment deployment<br \/>\n\u2022 Income distributions<br \/>\n\u2022 Risk positioning during volatility<\/p>\n<p>In some structures, advisory fees are applied uniformly across all assets \u2014 including cash balances \u2014 regardless of whether those balances require active portfolio management.<\/p>\n<p>That approach may be administratively simple, but simplicity does not always equal alignment.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Why It Matters<\/strong><\/p>\n<p>Cash plays an important role in portfolio construction and liquidity management. However, it does not typically require the same level of active oversight as invested capital.<\/p>\n<p>When advisory fees apply to idle or transitional cash without distinction, clients may unknowingly pay active management fees on assets that are not actively deployed.<\/p>\n<p>Charging fees on cash is not inherently inappropriate. The key is clarity.<\/p>\n<p>Clients benefit from understanding:<\/p>\n<p>\u2022 Whether cash is included in fee calculations<br \/>\n\u2022 Whether certain cash vehicles are treated differently<br \/>\n\u2022 How working capital is structured<br \/>\n\u2022 How fee policy aligns with service delivery<\/p>\n<p>&nbsp;<\/p>\n<p><strong>The Bottom Line<\/strong><\/p>\n<p>Advisory fees should be intentional and transparent.<\/p>\n<p>If you are a client or a prospective client of Forseth &amp; Co. Wealth Strategies and would like to review how cash is treated within your portfolio \u2014 including whether management fees apply to cash balances and how that structure aligns with your expectations \u2014 we would welcome that discussion.<\/p>\n<p>We manage your wealth. You focus on living.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"margin-top: 0pt; padding-top: 0; margin-bottom: 10pt; padding-bottom: 0; line-height: 1.38;\"><span style=\"display: inline-block; height: 1em;\"><span style=\"display: none;\">.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In many advisory arrangements, management fees are applied to total assets under administration. This can include equities, fixed income, alternative strategies \u2014 and sometimes cash.<\/p>\n<p>Cash may be held for several reasons:<\/p>\n","protected":false},"author":193,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-625","post","type-post","status-publish","format-standard","hentry","category-investing-foundations"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/posts\/625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/users\/193"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/comments?post=625"}],"version-history":[{"count":6,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/posts\/625\/revisions"}],"predecessor-version":[{"id":802,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/posts\/625\/revisions\/802"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/media?parent=625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/categories?post=625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/forsethwealthstrategies\/wp-json\/wp\/v2\/tags?post=625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}