The LCA Advantage · Risk Assessment System. Quantitatively Pinpoint Risk. Eliminate the...

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The LCA Advantage

2016

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Agenda

Balancing act How we can help

Managing client expectations

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“Big enough to deliver, small enough to care”

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Quantifying the Value of Your Advice

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Assign a value to your services & know what it’s worth to your clients

Experience Market Knowledge

Strategic & Financial Planning

Behavior Coaching Advice

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Lindner Capital Advisors?

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Big Enough to DELIVER Small Enough to CARE

○ Quick Response Times○ No Phone Trees○ Strong Service Team○ Personal Operations Assistant○ Direct Access to Portfolio Managers○ Access to Senior Management○ Experienced Wholesaling Team

○ CEFEX Certified○ Morningstar Workstation○ Riskalyze○ Orion Performance Reporting○ LaserApp Forms ○ Docusign Secure eSignature○ Infinata○ The Advisor Lab

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How Lindner can help you grow your business

Technology Back Office Support

Sales & Marketing

Portfolio Management

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Technology

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RiskalyzeRiskalyze is transforming the industry by empowering investment advisors to capture a quantitative measurement of client risk tolerance, and use that data to win new clients, capture and meet expectations and quantify suitability.

Risk Assessment System

Quantitatively Pinpoint RiskEliminate the stereotypes that have made risk tolerance useless. Use leading scientific theory to objectively pinpoint an investor’s Risk Number™.

Meet Client ExpectationsSet portfolio return expectations using risk rather than average return, leading to better-informed and happier clients.

Analyze Portfolio RiskOur powerful portfolio analytics engine calculates the Risk Number™ of each portfolio to match it with investor risk preference.

Retirement MappingDon’t wonder if a client’s risk preference will allow them to achieve their goals—calculate their probability and build a map to success.

Bring Clients AboardUse powerful risk analytics to compare prospect risk preference with their actual risk—and watch ACAT forms get signed faster than you’ve ever seen before.

Stress TestingStress test portfolios for a variety of stock and bond market scenarios—one click to revisit an interest rate jump or the 2008 market crash.

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RiskalyzeRisk Assessment System

CLICK TO PLAY

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http://vimeo.com/81455705

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InfinataHigh Net Worth Insight

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Advisor LabThe Advisor Lab tool helps advisors efficiently identify prospective 401(k) clients, generate insightful reports and prepare effective sales presentations quickly and affordably.

401(k) prospecting tool

Search plans in your area

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Back Office Support

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LCA Back OfficeDedicated support to help with the day-to-day activities

• Client intake form – LCA prepares all paperwork for you

• Real time, performance reporting system (Gain/Loss, Mgmt fees, Performance, etc.)

• One on one relationship with operational assistant

• TD Ameritrade, Schwab, Fidelity custodial options

• Platform and Sub-advisor solutions• Billing & fees, trading and quarterly

statements

How much time do you spend on this?

What is the value of your time?

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Sample LCA ReportsData on demand

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Sales & Marketing

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LCA Sales & Marketing Team

Easy-to-use marketing tools & materials to help you attract prospects, close new business, and deliver better communication.

Deliver a new level of client experience with less effort

• Client ready material & videos

• Access to DFA conferences

• Client event ideas

• Discovery Toolbox

• Customizable presentations

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Portfolio Management

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LCA Portfolio Management

Many people invest by…

“I have a proven system to picking winning stocks”

“I got a hot tip from my neighbor. It’s a slam dunk!”

“The experts on TV say the market will keep going down. It’s different this time.”

Trying to predict the market, acting on impulse, tips and hunches, or being swayed by the media

There is a different way to invest….

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Lindner and

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A different approach

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.”

- Peter Lynch

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Lindner’s Core Beliefs

Our Core Beliefs Complement Your Success

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Core Principle One

• Markets Are Efficient

Core Principle Two

• Diversification Is Key

Core Principle Three

• Structure Explains Performance

Core Principle Four

• Risk and Return Are Related

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Core Principle OneMarkets are Efficient

Given all information, a stock’s current price offers the best approximation of actual value.

All Available Information

A company’s equity, its prospects for future earnings, and perceived risk

Price

Source: Dimensional Fund Advisors, Investment Principles, March 2016, slide 5

Core Principle One

What Affects a Stock’s Current Price?

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Diversification Helps Take the Guesswork out of Investing

By holding a globally diversified portfolio, investors are positioned to capture returns wherever they occur.

Core Principle Two

Source: Morningstar

Higher Return

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201522.8 14.0 10.3 48.5 22.3 16.6 26.7 16.7 6.7 41.5 29.1 7.8 18.1 43.3 14.9 5.5

11.6 8.4 5.9 47.3 20.9 13.5 26.3 11.2 5.2 34.5 26.9 4.7 17.7 38.8 13.7 1.4

8.1 8.4 -9.4 46.0 20.3 5.8 23.5 9.1 -26.2 31.8 24.5 2.1 17.3 34.5 12.4 0.6

6.1 2.5 -11.4 40.8 18.3 5.5 20.8 7.3 -28.9 31.6 15.1 1.6 16.8 32.8 6.0 0.6

-2.4 0.0 -15.0 38.6 15.7 4.9 18.4 7.1 -33.8 27.2 15.1 -0.5 16.4 32.4 5.6 -0.8

-3.0 -9.2 -15.9 31.8 14.3 4.7 15.8 7.0 -34.9 26.5 15.1 -2.9 16.0 32.0 4.9 -1.4

-9.1 -11.7 -20.5 28.7 11.7 4.6 13.9 5.5 -37.0 21.9 13.1 -4.2 14.6 22.8 4.2 -2.7

-14.2 -11.9 -20.9 25.7 10.9 4.2 13.4 2.0 -38.5 21.2 11.2 -4.9 14.6 18.3 2.4 -3.1

-15.3 -12.7 -22.1 24.9 6.1 4.0 11.0 1.3 -39.2 20.6 7.8 -5.5 13.5 15.3 0.6 -4.4

-22.1 -19.7 -23.6 4.1 4.3 2.4 4.3 -1.6 -43.4 5.9 6.5 -12.1 4.2 0.4 -3.9 -5.7

-22.4 -21.4 -30.3 1.9 0.9 1.6 3.9 -9.8 -45.5 0.8 2.4 -13.7 0.4 -2.0 -4.9 -7.5

Lower Return

Difference between Top and Bottom

45.3 35.5 40.5 46.6 21.3 15.0 22.7 26.4 52.2 40.6 26.7 21.6 17.6 45.3 19.8 13.0

Benchmarks and LCA Portfolio

S&P 500 TR USDS&P 500 Growth TR

USDS&P 500 Value TR

USDRussell 2000 TR USDRussell 2000 Growth

TR USDRussell 2000 Value

TR USDMSCI ACWI Ex USA

TR Net USDMSCI EAFE TR Net

USDBarclays US Agg Bond

TR USDBarclays 1-3 Yr US Treasury TR USDLCA Traditional

Retirement 65/35 *

You never know which markets will outperform from year to year.

Annual Returns

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Small beat large 96% of the time.

MARKET beat T-BILLS

Overlapping Periods: January 1928–December 2015VALUE beat GROWTH

Overlapping Periods: January 1928–December 2015

SMALL beat LARGE

Overlapping Periods: January 1928–December 2015HIGH PROFITABILITY1 beat LOW PROFITABILITY

Overlapping Periods: July 1963–December 2015

Market is Fama/French Total US Market Index. T-Bills is One-Month US Treasury Bills. There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods.

Value is Fama/French US Value Index. Growth is Fama/French US Growth Index. There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods.

Small is Dimensional US Small Cap Index. Large is S&P 500 Index. There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods.

High is Dimensional US High Profitability Index. Low is Dimensional US Low Profitability Index. There are 451 overlapping 15-year periods, 511 overlapping 10-year periods, 571 overlapping 5-year periods, and 619 overlapping 1-year periods.

69% of the time78% of the time


1-Year

5-Year

10-Year

15-Year



1-Year

5-Year

10-Year

15-Year



1-Year

5-Year

10-Year

15-Year



1-Year

5-Year

10-Year

15-Year

Information provided by Dimensional Fund Advisors LP.Indices are not available for direct investment. Past performance is not a guarantee of future results.1. Profitability is a measure of current profitability, based on information from individual companies’ income statements. In USD. Based on rolling annualized returns using monthly data. Rolling multiyear periods overlap and are not independent. This statistical dependence must be considered when assessing the reliability of long-horizon return differences. Dimensional Index data compiled by Dimensional. Fama/French data provided by Fama/French. The S&P data is provided by Standard & Poor's Index Services Group. Eugene Fama and Ken French are members of the Board of Directors for and provide consulting services to Dimensional Fund Advisors LP. Index descriptions available upon request.

Structure Explains PerformanceHistorical Performance of Premiums over Rolling Periods in US Markets

Core Principle Three

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Risk and Return Are RelatedThe Capital Markets Have Rewarded Long-Term Investors

Core Principle Four

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 no guarantee of future results. US Small Cap Index is the CRSP 6–10 Index; US Large Cap Index is the S&P 500 Index; Long-Term Government Bonds Index is 20-year US government bonds; Treasury Bills are One-Month US Treasury bills; Inflation is the Consumer Price Index. CRSP data provided by the Center for Research in Security Prices, The S&P data are provided by Standard & Poor’s Index Services Group. University of Chicago. Bonds, T-bills, and inflation data © Stocks, Bonds, Bills, and Inflation Yearbook™, Ibbotson Associates, Chicago (annually updated work by Roger G. Ibbotson and Rex A. Sinquefield).

Monthly growth of wealth ($1), 1926–2015

$16,743 US Small Cap Index

$5,386 US Large Cap Index

$135 Long-TermGovernment Bonds Index

$21 Treasury Bills$13 Inflation (CPI)

$0

$1

$10

$100

$1,000

$10,000

$100,000

1926 1936 1946 1956 1966 1976 1986 1996 2006

Source: Dimensional Fund Advisors, Investment Principles, March 2016, slide 20

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Dimensional Fund Advisors

Origins Video

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http://cdnapi.kaltura.com/index.php/extwidget/preview/partner_id/1581781/uiconf_id/20490561/entry_id/1_hcy2sbbe/embed/dynamic

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Traditional (DFA)

Value and Small Cap Tilt

Taxable and Retirement Options

Long Term Track Record (1996) with Actual Performance

Fixed Income - Short Duration and High Credit Quality

Contemporary

Defensive

Tactical Economic

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Completive analysis to win new business

Access to portfolio management team

Monte Carlo analysis

Proposal and risk score assistance

Institutional proposals and RFP’s

Freedom of choice that allows your clients to select their preferred custodian—from Fidelity, TD Ameritrade, Charles Schwab, and more.

Fiduciary Oversight

Certification for Global Fiduciary Standards of Excellence

Independent recognition of an Investment Advisor’s conformity to the Fiduciary Practices defined by the Prudent Practices for Investment Advisors handbook

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ORGANIZE FORMALIZE IMPLEMENT

MONITOR

Committed to Excellence.LCA is the only TAMP to receive an award for being CEFEX certified for 10 years.


Headwinds & TailwindsLong term outlook

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Managing client expectations

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Cycle of Investor Emotions

Many investors follow their emotions

RESIST THE URGE. Don’t allow your emotional state to influence buy and sell decisions during changing market conditions.

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Focus on what you can control

What you can control:

1. Reducing expenses2. Diversifying portfolios3. Minimizing taxes4. Staying disciplined

No one can reliably forecast the market’s direction or predict which stock or investment manager will outperform.

Time is Money

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Where do you spend the majority of your time?

VS

Learn more about how we can help, Contact a Regional Director today.

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Let us help

[email protected]

Disclosures

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Lindner Capital Advisors, Inc. (LCA) is an SEC registered investment advisor. The information contained in this document is informational and foreducational purposes only. It is intended for the use of the person to whom it is given and is not to be reproduced or redistributed without LCA’s consent. Itis not a solicitation to invest in any specific investment product, nor is it intended to provide individualized investment advice. This presentation does notconstitute an offer to sell or the solicitation of an offer to buy any securities, nor will any sale of a security occur in any jurisdiction where such an offer,solicitation or sale would be unlawful.

Past performance is no guarantee of future performance, and LCA’s strategies, like most investment strategies, involve the risk of loss. Since no onemanager is suitable for all types of investors, it is important to review investment objectives, risk tolerance, liquidity needs, tax consequences and any otherconsiderations with a financial professional before choosing an investment style or manager.

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Lindner Capital Advisors, Inc.600 Village Trace, Building 23, Suite 300, Marietta, GA 30067

770-977-7779 | www.LindnerCapital.com

A Registered Investment Advisor

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