Q: what are your thoughts about ZMMK? what are the risks?
Is it better to store cash in a HISA ?
Same as JPST what are the risks and this is in US dollar only?
you think JPST is safe ?
Is it better to store cash in a HISA ?
Same as JPST what are the risks and this is in US dollar only?
you think JPST is safe ?
5i Research Answer:
We think ZMMK is a good income investment that is quite low risk. Since it primarily holds money market securities, it is slightly higher risk vs a fund that primarily holds government securities like T-Bills. Risks are increased credit risk (although still very low) being exposed to corporations vs government backed securities, and rate risk with a declining yield.
A HISA will offer a lower yield and while it is lower risk, we think the greater yield captured in a money market or T-Bill ETF is more worth it.
JPST has similar risks, but may be considered higher risk as it also invests in 37% of the fund in securities with an average life of 1-3 years. It is only available in USD to what we can tell. We have no problems with it.