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Dear Valued Client,
Our investment team has decided to make a couple of adjustments to our “Yield Models” that serve as cash reserve accounts for many of our clients.
In our “Defensive Yield” account models, we will be adding ultra-short bond funds that typically hold investment grade bonds with maturities less than one year. We will be adding the JPMorgan Ultra-Short Income ETF (JPST) and the JPMorgan Ultra-Short Municipal Income ETF (JMST) to our Defensive Yield and Tax-Sensitive Defensive Yield models, respectively. We will be pairing these funds with the existing money market funds in these models to add yield above what the money market funds are currently paying.
In our “Conservative Yield” account models, we will also be incorporating these two JPMorgan funds (JPST and JMST) with the objective of shortening the average bond maturity and increasing stability. With economic growth and inflation both possibly increasing this year, there is more uncertainty with the direction of interest rates. Therefore, our goal is to make sure these models are relatively stable while offering attractive yields.
You can expect these changes to occur at the end of the month and you should be able to see this activity on your January statements. We do not anticipate these trades to have negative tax consequences. These changes will automatically occur without any action needed from you but please reach out to your planning team with any questions.
Our investment team will continue to monitor the markets and the direction of interest rates to make further adjustments as necessary. Thank you for your continued trust in our team’s objective to manage your accounts in your best interest.
Sincerely,
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