Delphi Private Advisors Offers New California Municipal Fund to Market

SAN DIEGO, November 15, 2017 (Newswire.com) - Delphi Private Advisors announced today that it added Dimensional Fund Advisors LP’s (Dimensional) new DFA California Municipal Real Return Portfolio to its investment options available for California-based clients.   

For several years prior to the launch of this fund, Delphi had been researching ways to manage risk in the fixed income portion of their portfolios in a way that could be responsive to inflation and rising interest rates as well as be tax aware without sacrificing yield or credit quality.

Recognizing how difficult it is to optimize the risk/return tradeoff in a low-yield environment led us to look for new ways to innovate without moving completely away from traditional fixed income asset classes. Specifically, higher inflation can result in higher interest rates, and can also erode the purchasing power of our clients' portfolios. For a specific subset of our clients, it is important to seek to reduce inflation risk in their portfolios. Our research led us to believe that a high-quality intermediate duration California municipal bond portfolio that seeks to provide inflation protection would be our best option. When our search found no such products on the market, we spoke to Dimensional about an investment solution that could meet these needs.

Darren Reinig, Delphi's Chief Investment Officer

“Recognizing how difficult it is to optimize the risk/return tradeoff in a low-yield environment led us to look for new ways to innovate without moving completely away from traditional fixed income asset classes. Specifically, higher inflation can result in higher interest rates, and can also erode the purchasing power of our clients’ portfolios,” said Darren Reinig, Delphi’s Chief Investment Officer.  “For a specific subset of our clients, it is important to seek to reduce inflation risk in their portfolios. Our research led us to believe that a high-quality intermediate duration California municipal bond portfolio that seeks to provide inflation protection would be our best option. When our search found no such products on the market, we spoke to Dimensional about an investment solution that could meet these needs.”

In addition to the tax efficiency of the investment product, cost was also an important consideration to Delphi. Treasury Inflation-Protected Securities (TIPS), while cost effective, generate taxable ordinary income for investors. Delphi wanted a cost-effective solution that combined the tax benefits of California municipal bonds along with tax-aware inflation protection. The DFA California Municipal Bond Real Return Portfolio was designed to meet these needs.

“We are excited to announce the DFA California Municipal Bond Real Return Portfolio,” said Dave Butler, Co-Chief Executive Officer and Head of Global Financial Services at Dimensional. “We’re proud to be able to offer this fund to firms like Delphi Private Advisors that aim to provide their clients with investment solutions that meet their specific investment objectives.”

David Plecha, Senior Portfolio Manager at Dimensional, added, “At Dimensional, portfolio design and implementation are inextricably linked. Our research and portfolio management teams worked to design a low-cost, high-quality offering that we believe accomplishes the needs of investment firms like Delphi and their California-based clients.”

For more information on Delphi Private Advisors, please visit: DelphiPrivate.com

About Delphi Private Advisors

Based in San Diego, CA, Delphi Private Advisors is a registered investment advisory firm providing institutional-caliber wealth management services to private families. With a focus on tax efficiency, risk-adjusted returns, and transparency, Delphi works to create thoughtfully engineered and managed portfolios. Delphi adheres to a fiduciary standard in an effort to help our clients preserve the wealth that their families have worked so hard to build.

About Dimensional Fund Advisors

Dimensional Fund Advisors is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, they help investors pursue higher expected returns through advanced portfolio design and careful implementation. With clients around the world, Dimensional has 12 offices in eight countries and global assets under management of US$548 billion as of September 30, 2017. Learn more at us.dimensional.com.

Dimensional Fund Advisors LP is not affiliated with Delphi Private Advisors.

If you would like more information about this topic, please contact Gary Hirschfeld at 858-222-8050 or email at [email protected].