traditional portfolio series client presentation presented bya registered investment advisor 600...

A Registered Investment Advisor

600 Village Trace • Building 23, Suite 300 • Marietta , GA 30067 • (800) 229-4306 • www.lindnercapital.com1

Traditional Portfolio SeriesClient Presentation

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Presented by:

A Registered Investment Advisor600 Village Trace • Building 23, Suite 300 • Marietta , GA 30067 • (800) 229-4306 • www.LindnerCapital.com2

Table of Contents

Introduction• Welcome

• Your Investment Team

Investment Strategy• Core Principles

• Traditional Portfolio Series Overview

• Lindner Capital’s Strategic Partner

• Putting It All Together

Portfolio Summary• Portfolio Allocations

• Strategy Strengths

• Fiduciary Responsibility


Welcome

Thank you for your interest in Lindner Capital Advisors (LCA). The goal ofthis presentation is to introduce you to our company, our unique investmentstrategy, and our client service process.

Your Financial Advisor has partnered with LCA to offer you portfoliosdesigned to be truly consistent with key parameters, including your risktolerance, investment objective and time horizon.

Your Financial Advisor will assess your personal goals and objectives andassist you in selecting the appropriate portfolio to fit your investment needs.We thank you for the opportunity to introduce you to our program, and lookforward to helping you enjoy a long-term investment experience.

Sincerely,

Lindner Capital Advisors


Your Investment Team

Financial Advisor• Assess your personal goals and objectives and assist you in selecting a

portfolio• Monitor the progress of your portfolio• Handle your account servicing needs• Annual account review meetings

Lindner Capital Advisors• Manage your assets on discretionary basis• Federally Registered Investment Advisor (SEC)• Based in metro Atlanta; Founded in 1996

Investment Company Partners• Dimensional Fund Advisors (DFA), Goldman Sachs, PIMCO,

Angel Oak, iShares

Custodian Partners• Fidelity, Schwab, TD Ameritrade, National Financial Services (NFS),

First Clearing


Core Principles

• Markets work. Capital markets do a good job of fairly pricing all

available information and investor expectations about publicly

traded securities.

• Diversification is key. Comprehensive, global asset allocation

can neutralize the risks specific to individual securities.

• Risk and return are related. The reward for taking on

increased levels of risk is the potential to earn greater returns.

• Portfolio structure explains performance. The asset classes

that comprise a portfolio and the risk levels of those asset classes

are responsible for most of the variability of portfolio returns.


Approach Giving You the Best Odds of Success

Focus on What You Can Control


Traditional Portfolio Overview

– Portfolio options: 6 retirement & 6 taxable allocations

– Equity & fixed income asset categories

– Risk tolerances from very conservative to aggressive

– DFA institutional funds- not available directly to retail market

– Portfolios consist of 8 - 12 funds

– Minimum account: $100,000


FACTS ABOUT DIMENSIONAL

Lindner’s Strategic PartnerDimensional Fund Advisors (DFA)

Founded in 1981

Clients in more than 25 countries

Nine offices in 7 countries

24 hour market coverage

Over 650 employees

Investment Management is primary business

DFA an Institutional Fund Company- not available to retail markets- $287.2 Billion in global assets under management, June 30, 2013 #

- Global equities and fixed income - Rated #1 in financial advisor loyalty, 2010 - 2012 by Cogent Research * - Shared belief in Lindner’s core principles# Source: www.dfaus.com/firm/overview.html* Source: Ignites, DFA, American Funds Nab Top Advisor Scores; Mariana Lemann , July 5, 2012

Source: An Introduction to Dimensional Fund Advisors,

December 31, 2012

http://www.dfaus.com/firm/overview.html


Dimensional Fund Advisors Partial Client List

Source: www.dfaus.com/firmoverview

Public Funds

Arizona State Retirement SystemCalifornia Public Employees' Retirement SystemCity and County of San FranciscoCity of KalamazooCity of San DiegoCity of SeattleCounty of KalamazooFörsta AP-Fonden, SwedenIllinois Municipal Retirement FundIndiana Public Employees Retirement FundMarin County Employees‘ Retirement AssociationMaryland State Retirement AgencyMississippi Public Employees Retirement SystemMontana Board of InvestmentsNebraska Investment CouncilSouth Dakota Investment CouncilSt. Louis Public Schools Retirement SystemSt. Paul Teachers Retirement Fund AssociationUtah State Retirement Systems

Corporate

AT&T Inc.Boeing CorporationCitigroupExchange BankFurniture BrandsKellogg CompanyLubrizol CorporationMerckMLCPepsiCo, Inc.PPG Industries, Inc.Sandia CorporationSprint CorporationThe Timken CompanyTribune CompanyVerizon Communications, Inc.WellPoint Health NetworksTaft-Hartley FundsLocal 813 Affiliated Trust FundsNational Automatic Sprinkler Industry

Pension FundNational Electrical Benefit FundSouthern NevadaCulinary & BartendersPension FundUNITE General Fund & ILGWU FundsWestern Pennsylvania Teamsters and

Employers

Nonprofit Organizations

Baptist Foundation of AlabamaCalifornia Institute of TechnologyCalifornia Wellness FoundationCarnegie Mellon UniversityChicago Community FoundationGonzaga UniversityIdaho Community FoundationJ. Paul Getty TrustKansas HealthKansas University FoundationLucile Packard Foundation for Children's HealthMisericordia Home EndowmentNew Haven Community FoundationThe New Jersey Education AssociationNova Scotia Association of Health OrganizationThe Pennsylvania State UniversityPublic Policy Institute of CaliforniaSt. John's Hospital and Health CenterSan Francisco FoundationSimon Fraser UniversityToledo Community FoundationUnited Way of Palm Beach CountyUniversity of MiamiWallace FoundationWestern MichiganUniversity FoundationWinnipeg Foundation


The Effect of Index Reconstitution on Stock Prices

S&P 500 data source: Anthony Lynch and Richard Mendenhall, “New Evidence on Stock Price Effects Associated with Changes in the S&P 500 Index,” Journal of Business 70, no. 3 (July 1997): 351-83. MSCI EAFE Index data source: Rajesh Chakrabarti, Wei Huang, Narayanan Jayaraman, and Jinsoo Lee, “Price and Volume Effects of Changes in MSCI Indices: Nature and Causes,” Journal of Banking and Finance 29, no. 5 (May 2005): 1237-64. For illustrative purposes only. Past performance is not a guarantee of future results.

S&P 500 Index MSCI EAFE Index

One-Day Return after Announcement (%) 3.2 3.4

Run-Up to Effective Date (%) 3.8 4.5

Decay after Effective Date (%) -2.1 -2.6

Announcement Effective

Price

Time

• Stocks rise on announcement of inclusion.

• Index funds are forced to buy high on effective date.

• Buying and selling to track index changes reduces tracking error but generates transaction costs.

How is DFA Different?

Other Differentiators

• Security lending – reduces trading costs

• Patient trading strategies - reduces overall fund expenses

• Not available to retail publicSlide Source: DFA Slide Deck, Slide #94

10


Size and Value Effects Are Strong Around the World

11

In US dollars. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. US value and growth Research index data provided by Fama/ French. The S&P data are provided by Standard & Poor’s Index Services Group. CRSP data provided by the Center for Research in Security Prices, University of Chicago. International Value data provided by Fama/French from Bloomberg and MSCI securities data. International Small data compiled by Dimensional from Bloomberg, Style Research, London Business School, and Nomura Securities data. MSCI World ex USA Index is gross of foreign withholding taxes on dividends; copyright MSCI 2013, all rights reserved. Emerging Markets index data simulated by Fama/French from countries in the IFC Investable Universe; simulations are free-float weighted both within each country and across all countries. Asset class filters were applied to data retroactively, rebalanced annually, and with the benefit of hindsight. Asset class returns are not representative of indices or actual portfolios and do not reflect costs and fees associated with an actual investment. Actual returns may be lower.Values change frequently and past performance may not be repeated. There is always the risk that an investor may lose money. Small company risk: Securities of small firms are often less liquid than those of large companies. As a result, small company stocks may fluctuate relatively more in price. Emerging markets risk: Numerous emerging countries have experienced serious, and potentially continuing, economic and political problems. Stock markets in many emerging countries are relatively small, expensive, and risky. Foreigners are often limited in their ability to invest in, and withdraw assets from, these markets. Additional restrictions may be imposed under other conditions. Foreign securities and currencies risk: Foreign securities prices may decline or fluctuate because of: (a) economic or political actions of foreign governments, and/or (b) less regulated or liquid securities markets. Investors holding these securities are also exposed to foreign currency risk (the possibility that foreign currency will fluctuate in value against the US dollar).

Annual Index Data

Annualized Compound Returns (%)

US

Large

Value

S&P

500

US

Large

Growth

US

Small

Value

CRSP

6-10

US

Small

Growth

Intl.

Value

Intl.

Small

MSCI

World

ex US

Intl.

Growth

Emg.

Markets

Value

Emg.

Markets

Small

Emg.

Markets

“Market”

Emg.

Markets

Growth

US Large

Capitalization Stocks

1927–2012

US Small

Capitalization Stocks

1927–2012

Non-US Developed

Markets Stocks

1975–2012

Emerging

Markets Stocks

1989–2012

Average Return (%) 14.96 11.82 11.23 19.13 15.75 13.25 17.54 18.19 12.83 10.96 22.62 20.10 17.82 15.57

Standard Deviation (%) 26.87 20.30 20.33 31.55 30.66 33.06 24.48 27.93 21.41 21.81 41.40 39.97 35.67 34.01

Why LCA Employs a Value and Small Cap Tilt?

Chart Source: DFA Slide Deck, Slide #31


Annualized

Compound

Return

Annualized

Standard

Deviation

Model Portfolio 1 9.40% 11.05%





Barclays US

Govt./Credit

Bond

Index

S&P

500

Index

BofA

Merrill Lynch

One-Year US

Treasury

Note Index

US

Small

Cap

Index

US

Large

Value

Index

Targeted

Value

Index

Intl.

Large

Index

Intl.

Small

Index

Intl.

Large

Value

Index

Intl.

Small

Value

Index

Emerging

Markets

Blended

Index

Model Portfolio 1 40% 60%

Model Portfolio 2 60% 40%

Model Portfolio 3 30% 40% 30%

Model Portfolio 4 15% 40% 15% 15% 15%

Model Portfolio 5 7.5% 40% 7.5% 7.5% 7.5% 6% 6% 6% 6% 6%

Merrill Lynch One-Year US Treasury Note Index

S&P 500 Index

US Small Cap Index

US Large Value Index

Targeted Value Index

International Large Index

International Small Index

International Large Value Index

International Small Value Index

Emerging Markets Blended Index

Putting It All Together

Rebalanced annually. Barclays indices copyright Barclays 2013. The S&P data are provided by Standard & Poor’s Index Services Group. The Merrill Lynch Indices are used with permission; copyright 2013 Merrill Lynch, Pierce, Fenner & Smith Incorporated; all rights reserved. Dimensional Index data compiled by Dimensional. Emerging Markets Blended Index consists of 50% Fama/French Emerging Markets Index, 25% Fama/French Emerging Markets Small Cap Index, and 25% Fama/French Emerging Markets Value Index. Fama/French Emerging Markets, Fama/French Emerging Markets Value and Fama/French Emerging Markets Small Cap Index weightings allocated evenly between Dimensional International Small Cap Index and Fama/French International Value Index prior to January 1989 data inception. Dimensional International Small Cap Value Index weighting allocated to International Small Cap Index prior to July 1981 data inception. International Value weighting allocated evenly between International Small Cap and MSCI World ex USA Index prior to January 1975 data inception. Indexes are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Not to be construed as investment advice. Returns of model portfolios are based on back-tested model allocation mixes designed with the benefit of hindsight and do not represent actual investment performance. See cover page for additional information.

A Fully Diversified PortfolioQuarterly: 1973-2012Model Portfolio 5

Chart Source: DFA Slide Deck, Slide #11112


20/80 35/65 50/50

LCA Traditional Portfolio Allocations


65/35 80/20 95/5

LCA Traditional Portfolio Allocations


Traditional Portfolio Strategy Strengths

– Diversification

Own over 11,000 securities, 40 countries, 15 asset classes

– Fund expenses

Low average expense ratio: range 0.32% - 0.62%

– DFA institutional fundsRated #1 for financial advisor loyalty, 2010-12 by Cogent Research

– Fixed income exposureShort duration and high credit quality

“All the time and effort that people devote to picking the right fund, the hot hand,the great manager, have in most cases led to no advantage.” – Peter Lynch

Quote source: DFA Slide Deck, Slide #13.


Fiduciary Oversight

Independent recognition of an Investment Stewards conformity to all 23 Fiduciary Practices defined by the

Prudent Practices for Investment Stewards handbook

Certification for Global Fiduciary Standards of Excellence

ORGANIZE FORMALIZE IMPLEMENT

MONITOR


Disclosures

Lindner Capital Advisors, Inc. (“LCA”) is an SEC registered investment advisor. Registration as an investment advisor does not constitute anendorsement of the firm by the SEC nor does it indicate that the advisor has attained a particular level of skill or ability.

Performance & Asset AllocationNo chart, graph, or other figure provided should be used to determine which securities to buy or sell. Asset allocations may vary from targetallocations. Performance and asset allocation does not guarantee future results, assure a profit or protect against loss. Investment in anindividual fund or funds in a single asset class may outperform or underperform an asset allocations fund. Share values will fluctuate and,when redeemed, may be worth more or less than the original cost.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment strategy will beprofitable. Each asset class has inherent risks associated with that asset class. Understanding these risks is critical to making reasonablerisk/return comparisons and sound investment decisions. Each of LCA’s strategies may make small and micro-cap investments, which aresubject to greater volatility than those in other asset categories. Each of LCA’s strategies may invest in sector funds, which may involve agreater degree of risk than an investment in other funds with greater diversification. Each of LCA’s strategies may invest in fixed-incomeinvestments, which are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments,corporate events, tax ramifications, and other factors. Each of LCA’s strategies may make international investments, which are subject toadditional risks, such as currency fluctuation, confiscatory policy, political instability, or potential illiquidity. Investing in emerging marketsmay accentuate these risks.

Since no one manager is suitable for all types of investors, it is important to review investment objectives, risk tolerance, liquidity needs, taxconsequences and any other considerations with a financial professional before choosing an investment style or manager.

Terms of UseThis presentation is confidential and may not be disseminated or reproduced without LCA’s consent. This presentation is intended forinformational purposes only and is not intended to constitute investment advice or recommendations by LCA or any other party.

traditional portfolio series client presentation presented bya registered investment advisor 600...

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