A couple of points: While we are completely comfortable with ZLC as a corporate bond fund, it is important to note that bonds can act very differently than 'cash', which is what a GIC and HISA are. Bonds can and have declined, just ask any investor in 2022 or 2023. If cash is needed for a defined purpose, or one wants 0% risk, we would not switch to bonds. They are fine for part of a fixed income allocation, or even ALL of an allocation, but investors need to understand that a bond fund is very different than cash. Two, ZLC is corporate bonds, and these two can act differently at times from government bonds. In a recession, even if rates move lower, corporate bond spreads can widen and losses can occur. We do think rates will move lower, and we do think bonds and bond funds offer decent potential from today's levels. But we would keep risks in mind here as well. A partial swap is probably the better move here, to keep some cash allocation.
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