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 Experience Where Most People Focus What Really Matters At Lindner Capital, we construct portfolios based on sound academic and evidenced based principles. 2

ID Our Core Beliefs Building blocks to investment success Core Principle Core Principle One Two • Markets Are Efficient • Diversification Is Key Core Principle Core Principle Three Four • Structure Explains • Discipline and Long Advisor Use Only Performance Term Investing 3

ID Core Principle One Markets are Efficient What Affects a Stock’s Current Price? A company’s All equity, its Available prospects Price Information for future earnings, and perceived risk 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 4

ID Core Principle Two Diversification Take the Guesswork out of Investing Annual Returns 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Higher 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 Return You never know 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 Benchmarks and LCA Portfolio which markets will S&P 500 TR USD 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 outperform from S&P 500 Growth TR USD 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 year to year. S&P 500 Value TR USD Russell 2000 TR USD -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 Russell 2000 Growth TR USD Some investors -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 Russell 2000 Value TR USD may be tempted to MSCI ACWI Ex USA TR Net USD -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 MSCI EAFE TR Net USD switch asset -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 Barclays US Agg Bond TR USD classes. Don’t let -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 Barclays 1-3 Yr US Treasury TR USD Fear and Greed get LCA Traditional Retirement 65/35 * -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 the best of you. Lower -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 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 Source: Morningstar * LCA Traditional Retirement 65/35 returns are net of all fees. Staying disciplined through rising and falling markets can pose a challenge, but it is crucial for long-term success. 5

Core Principle Three ID Structure Explains Performance US Markets - Historical Performance of Premiums over Rolling Periods Overlapping Periods: January 1928 – December 2015 Overlapping Periods: January 1928 – December 2015 Small beat large 96% of the time. MARKET beat T-BILLS VALUE beat GROWTH 15-Year 15-Year 96% of the time 97% of the time 10-Year 10-Year 85% of the time 88% of the time 5-Year 78% of the time 5-Year 77% of the time 1-Year 69% of the time 1-Year 61% of the time Market is Fama/French Total US Market Index. Value is Fama/French US Value Index. T-Bills is One-Month US Treasury Bills. Growth is Fama/French US Growth Index. There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods. 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods. Overlapping Periods: January 1928 – December 2015 Overlapping Periods: July 1963 – December 2015 HIGH PROFITABILITY 1 beat LOW PROFITABILITY SMALL beat LARGE 15-Year 82% of the time 15-Year 100% of the time 10-Year 72% of the time 10-Year 100% of the time 5-Year 5-Year 64% of the time 92% of the time 1-Year 1-Year 57% of the time 71% of the time Small is Dimensional US Small Cap Index. High is Dimensional US High Profitability Index. Large is S&P 500 Index. Low is Dimensional US Low Profitability Index. There are 877 overlapping 15-year periods, 937 overlapping 10-year periods, There are 451 overlapping 15-year periods, 511 overlapping 10-year periods, 997 overlapping 5-year periods, and 1,045 overlapping 1-year periods. 571 overlapping 5-year periods, and 619 overlapping 1-year periods. 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 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 6

4. Let Markets Work for You-USE INSTEAD?? ID Core Principle Four Discipline and Long Term Investing $100,000 Growth of a Dollar, 1926 – 2015 (Compounded monthly) $16,743 US Small Cap Index $10,000 $5,386 US Large Cap Index $1,000 $132 Long-Term Govt. Bonds Index $100 $21 Treasury Bills $10 $13 US Inflation (CPI) $1 $0 1926 1936 1946 1956 1966 1976 1986 1996 2006 2015 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 Source: Dimensional Fund Advisor Master Presentation dated September 2016, slide 31 7

ID LCA Portfolio Management Value and Small Cap Tilt • Global diversification with Taxable and over 12,000 securities, Retirement Options 40 countries and 15 Traditional asset classes. LCA Long Term Track Record • LCA’s Core Principles are (1996) based on the work of with Actual Performance Nobel Prize winning academics. Fixed Income - Short Duration and High Credit Quality 8

ID LCA Portfolio Options Based on your risk tolerance, investment objective & time horizon. 9

ID Your Risk Score = Your Portfolio LCA Uses Riskalyze to Determine Your Appropriate Risk Score 10

ID Your Investment Advisory Team CLIENT Financial Advisor 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 11