AUSTIN, TX. -- Tom Walsh, CFP® an Austin-based financial planner with Frontier Investment Management Company (FIMCO), believes the time has come to look outside the U.S. for better bond yields.
To that end, Walsh and FIMCO (www.frontierinvest.com)
The holding is one example of how Walsh, the president of the Austin Chapter of the Financial Planners Association, is constantly reviewing options to maximize returns for his clients.
Walsh believes that “the U.S. dollar could enter a period of secular decline. When reviewing the landscape of offerings, however, it became apparent that most international bond portfolios were playing a game of relative value and were very entrenched in the policies of old. Specifically, we found many portfolios heavily weighted to Japanese and mainstream European debt obligations that offered little margin of safety given the problems of those sovereigns.”
Walsh went on to describe how TBGAX “is very different” from other global bond managers.
“First, the portfolio is made up of 2 parts: a credit book (currently dominated by non-U.S. sovereign credits with investment-grade ratings), and a currency book. This structure allows the fund to generate capital return over and above the yield characteristics of the credit itself, and is done in a very risk-averse manner. The currency portfolio not only generates solid return but has the added benefit of providing a natural hedge to duration risk.
“Second, country selection (for credit and currency) seeks to capitalize on global interest rate and currency trends regardless of what traditionally constitutes a “safe-haven”
Looking at the bigger picture, Walsh added that his clients can benefit significantly from his association with FIMCO.
“Our money managers are able to explore opportunities on a timely basis,” said Walsh. “It then falls to me as FIMCO’s financial planner to determine what opportunities make sense, based on my individual clients’ needs and objectives.”
About Thomas B. Walsh, CFP®
Mr. Walsh is a Certified Financial Planner® and a Managing Director for Frontier. Tom works with clients to develop financial planning and wealth management strategies that fit their individual needs. Prior to joining Frontier in 2001, Tom was with Lincoln Financial Advisors for four years, also serving as a comprehensive financial planner. Prior to Lincoln Financial Mr. Walsh worked at Fidelity Investments as a Retirement Account Specialist. Mr. Walsh holds a Bachelor of Arts degree in Economics from the University of Texas at Austin. He is a member of the Financial Planners Associations of Dallas and Austin and a member of the National Association of Insurance and Financial Advisors. Tom is currently the President of the Financial Planners Association of Austin. Tom is also an active volunteer with the Junior Achievement of America educating young people about the importance of Financial Planning.
