Traditional Core Principles Client Presentation Client Name: - - PowerPoint PPT Presentation
Traditional Core Principles Client Presentation Client Name: Advisor Name and Company Date: Lindner Capital Advisors. A Registered Investment Advisor. 600 Village Trace, Building 23, Marietta, GA 30067 ID Creating a Successful Investment
Client Presentation
Lindner Capital Advisors. A Registered Investment Advisor. 600 Village Trace, Building 23, Marietta, GA 30067
Client Name: Advisor Name and Company Date:
At Lindner Capital, we construct portfolios based on sound academic and evidenced based principles.
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Where Most People Focus What Really Matters
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Advisor Use Only
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All Available Information
A company’s equity, its prospects for future earnings, and perceived risk
Price
Given all information, a stock’s current price offers the best approximation of actual value.
Source: Dimensional Fund Advisor Master Presentation dated September 2016 – slide 170
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Staying disciplined through rising and falling markets can pose a challenge, but it is crucial for long-term success.
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Benchmarks and LCA Portfolio S&P 500 TR USD S&P 500 Growth TR USD S&P 500 Value TR USD Russell 2000 TR USD Russell 2000 Growth TR USD Russell 2000 Value TR USD MSCI ACWI Ex USA TR Net USD MSCI EAFE TR Net USD Barclays US Agg Bond TR USD Barclays 1-3 Yr US Treasury TR USD LCA Traditional Retirement 65/35 * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Higher Return 22.8 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
46.0 20.3 5.8 23.5 9.1
31.8 24.5 2.1 17.3 34.5 12.4 0.6 6.1 2.5
40.8 18.3 5.5 20.8 7.3
31.6 15.1 1.6 16.8 32.8 6.0 0.6
0.0
38.6 15.7 4.9 18.4 7.1
27.2 15.1
16.4 32.4 5.6
31.8 14.3 4.7 15.8 7.0
26.5 15.1
16.0 32.0 4.9
28.7 11.7 4.6 13.9 5.5
21.9 13.1
14.6 22.8 4.2
25.7 10.9 4.2 13.4 2.0
21.2 11.2
14.6 18.3 2.4
24.9 6.1 4.0 11.0 1.3
20.6 7.8
13.5 15.3 0.6
4.1 4.3 2.4 4.3
5.9 6.5
4.2 0.4
Lower Return
1.9 0.9 1.6 3.9
0.8 2.4
0.4
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
Annual Returns
You never know which markets will
year to year. Some investors may be tempted to switch asset
Fear and Greed get the best of you.
Source: Morningstar * LCA Traditional Retirement 65/35 returns are net of all fees.
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Information provided by Dimensional Fund Advisors LP. Indices are not available for direct investment. Past performance is not a guarantee of future results.
In US dollars. 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. The information shown here is derived from such indices. Index descriptions available upon request. Eugene Fama and Ken French are members of the Board of Directors for and provide consulting services to Dimensional Fund Advisors LP. Source: Dimensional Fund Advisor Master Presentation dated September 2016 – slide 89
Small beat large 96% of the time.
MARKET beat T-BILLS
Overlapping Periods: January 1928–December 2015
VALUE beat GROWTH
Overlapping Periods: January 1928–December 2015
SMALL beat LARGE
Overlapping Periods: January 1928–December 2015
HIGH 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 time 78% of the time 85% of the time 96% of the time 1-Year 5-Year 10-Year 15-Year 61% of the time 77% of the time 88% of the time 97% of the time 1-Year 5-Year 10-Year 15-Year 57% of the time 64% of the time 72% of the time 82% of the time 1-Year 5-Year 10-Year 15-Year 71% of the time 92% of the time 100% of the time 100% of the time 1-Year 5-Year 10-Year 15-Year
US Markets - Historical Performance of Premiums over Rolling Periods
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The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
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. 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; US Inflation is the Consumer Price Index. CRSP data is provided by the Center for Research in Security Prices, University of Chicago. The S&P data is provided by Standard & Poor's Index Services Group. Bonds, T-bills, and inflation data provided by Morningstar. Past performance is no guarantee of future result
Growth of a Dollar, 1926–2015
(Compounded monthly)
$0 $1 $10 $100 $1,000 $10,000 $100,000 1926 1936 1946 1956 1966 1976 1986 1996 2006 2015
$16,743 US Small Cap Index $5,386 US Large Cap Index $132 Long-Term
$21 Treasury Bills $13 US Inflation (CPI)
Source: Dimensional Fund Advisor Master Presentation dated September 2016, slide 31
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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
40 countries and 15 asset classes.
based on the work of Nobel Prize winning academics.
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LCA Uses Riskalyze to Determine Your Appropriate Risk Score
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Lindner Capital Advisors, Inc.
SEC Registered Investment Advisor (RIA) Designs & Manages Portfolio
Custodian Fidelity, Schwab, TD Ameritrade, etc. Holds Assets
“The important thing about an investment philosophy is that you have one you can stick with.” David Booth
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Lindner Capital Advisors, Inc. (LCA) is an SEC registered investment advisor. The information contained in this document is confidential and is intended only for the use of the person to whom it is given and is not to be reproduced or redistributed without LCA’s consent. It is not a solicitation to invest in any specific investment product, nor is it intended to provide individualized investment advice. This presentation does not constitute an offer to sell or the solicitation of an
Asset allocation and diversification strategies do not assure a profit or protect against a loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be profitable. Each asset class has inherent risks associated with that asset class. Understanding these risks is critical to making reasonable risk/return comparisons and sound investment decisions. Each of LCA's strategies may make small-cap and micro-cap investments, which are subject to greater volatility than those in other asset categories. Each of LCA's strategies may invest in fixed-income investments, 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 to additional risks, such as currency fluctuation, confiscatory policy, political instability, or potential illiquidity. Investing in emerging markets may accentuate these risks. Inclusion of market index information is for informational purposes only and does not imply that a strategy will achieve similar returns. Index performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. An investor cannot invest directly in an index. The composition of an index does not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, investment guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which may change over time. Past performance is no guarantee of future performance, and LCA’s strategies, like most investment strategies, involve the risk of loss. Since no one manager is suitable for all types of investors, it is important to review investment objectives, risk tolerance, liquidity needs, tax consequences and any other considerations with a financial professional before choosing an investment style or manager. The information contained in this document has been compiled from sources deemed reliable and it is accurate to the best of our knowledge and belief. However, LCA cannot guarantee its accuracy, completeness, and validity and cannot be held liable for any errors or omissions.
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600 Village Trace, Building 23, Suite 300, Marietta, GA 30067 770-977-7779 | www.LindnerCapital.com Traditional CORE-PRES-A-120216