Recent class-action lawsuits have exposed a troubling trend in the brokerage industry—brokers are making substantial profits from client cash balances while offering clients minimal returns. Historically, brokers would automatically sweep idle cash into money market funds, ensuring clients earned a fair interest rate. Today, many firms have abandoned this client-friendly practice, leaving cash idle or invested in ways that disproportionately benefit the broker.

For instance, one brokerage firm recently earned a 5.24% return on client cash, but paid clients only 0.45%. This disparity has led to legal actions against major firms like Ameriprise Financial, Wells Fargo, and Charles Schwab, alleging breaches of fiduciary duty and unfair treatment.

Scharf Investments’ Commitment

At Scharf Investments, we believe your cash should work for you, not for the brokerage. That’s why we invest excess cash into high-yielding Treasuries, currently offering over a 5% return, ensuring you receive a fair and competitive rate on your cash.

Unlike many firms, we are committed to putting your interests first. Our approach ensures that your cash achieves the return you deserve and highlights our commitment to uphold our promise to always prioritize our clients’ needs first.