Strategic Alternative Portfolio Client Presentation ... · Risk and return are related. ... PepsiCo, Inc. PPG Industries, Inc. Sandia Corporation ... Strategy Strengths • Global

A Registered Investment Advisor

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

Strategic Alternative PortfolioClient 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.com

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Table of Contents

Introduction• Welcome

• Your Investment Team

Investment Strategy• Core Principles

• Strategic Alternative Portfolio Overview

• Lindner Capital’s Strategic Partner

• Benefits Of Alternative Investments

Portfolio Summary• Portfolio Allocations

• Strategy Strengths

• Fiduciary Responsibility

http://www.lindnercapital.com/


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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



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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), PIMCO, Equinox, 361 Capital, and

Angel Oak

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

First Clearing



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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.



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Approach Giving You the Best Odds of Success

Focus on What You Can Control



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Strategic Alternative Portfolio Overview

– Moderate growth strategy that seeks long-term growth of capital with an emphasis on minimizing downside volatility

– Investments are institutional mutual funds, comprised of 50-55%equity, 20-25% fixed income, and 25% alternatives

– DFA institutional funds- not available directly to retail market

– Portfolios consist of 10 - 13 funds

– Minimum account size is $100,000



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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, as of 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



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Dimensional Fund Advisors Partial Client List

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

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



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Diversified StrategicallyWith Alternatives

Asset allocations may vary from target allocations. Asset allocation does not guarantee future results, assure a profit or protect against loss. Investment in an individual 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.

Add dfa/QAM

corrrelation chart?

Source: Equinox Fund Management, Managed Futures: An Investment to Consider, December 2012 (page 3)



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Benefits of Managed Futures

- Reduce Portfolio Volatility

• Low to slightly negative correlation to stocks and bonds.

- Broad Global Diversification

• Participate in 150 different markets worldwide.

- Opportunity to Enhance Overall Portfolio Returns

• Research shows managed future returns have compared favorably with US stocks and bonds.

- Potential for Profit in any Economic Environment

• Managed futures can take advantage of price trends in rising or falling markets.

The statements above may be viewed as “forward-looking” statements or opinions based on current expectations, estimates, projections, and assumptions that by their nature, cannot take into account unknown risks and future uncertainties, which are difficult, if not impossible to predict. Such statements are not guarantees of any future performance or outcome. There is no guarantee any investment product will achieve its objectives, generate profits or avoid losses. Past performance is not indicative of future results.



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Five Worst Drawdowns in the S&P 500® TRI Since 1987 (as of December 31, 2012)

*The index does not encompass the whole universe of CTAs. The CTAs that comprise the index have submitted their information voluntarily. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

The selected periods are used for illustrative purposes only and may not correspond with the precise starting and ending dates surrounding any particular period of crisis, real or perceived.

Each of these asset classes has its own set of investment characteristics and risks, and investors should consider these risks carefully prior to making any investments.

See the section entitled "Important Consideration, Descriptions of Indices and Definitions of Terms" for definitions and fuller descriptions of each of the indices.

Managed Futures Returns During Five Worst Equity Drawdowns

S&P 500® Total Return Index.

Source: PerTrac Financial Solutions.

Barclay BTOP50 Index®.* Source: PerTrac

Financial Solutions.

Source: Equinox Fund Management, Managed Futures: An Investment to Consider, December 2012 (page 12)



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Portfolio Allocations



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Strategy Strengths

• Global Diversification

Own over 11,000 Securities, 40 Countries, 15 Asset Classes

• Use of Alternative investments

Potential to lower volatility and opportunity to enhance returns

• Fund expenses

Low average expense ratio: range 0.7% - 0.8%

• DFA Institutional Funds

Rated #1 in financial advisor loyalty, 2010 - 2012 by Cogent Research

• Fixed Income exposure

Short 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



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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



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Disclosures

Lindner Capital Advisors, Inc. (“LCA”) is an SEC registered investment advisor. Registration as an investment advisor does not constitute an endorsementof 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 target allocations.Performance and asset allocation does not guarantee future results, assure a profit or protect against loss. Investment in an individual fund or funds in asingle asset class may outperform or underperform an asset allocations fund. Share values will fluctuate and, when redeemed, may be worth more or lessthan the original cost.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be profitable. Eachasset class has inherent risks associated with that asset class. Understanding these risks is critical to making reasonable risk/return comparisons and soundinvestment decisions. Each of LCA’s strategies may make small and micro-cap investments, which are subject to greater volatility than those in other assetcategories. Each of LCA’s strategies may invest in sector funds, which may involve a greater degree of risk than an investment in other funds with greaterdiversification. 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 makeinternational 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.

Investments in commodities, futures and managed futures are speculative, involve substantial risk, and are not suitable for all investors. Investors should beaware that such investments may lead to large losses. Additionally, restrictions on redemptions may affect your ability to withdraw your participation.Further, there may be substantial fees and expenses. You should be aware that, in addition to normal investment risks, managed futures investments entailcertain risks, including but not limited to:

• Managed futures often engage in leveraging and other speculative investment practices that may increase the risk of investment loss.

• Managed futures can be highly illiquid.

• Managed futures are not required to provide periodic pricing or valuation information to investors.

• Managed futures may involve complex tax structures and delays in distributing important tax information.

• Managed futures are not subject to the same regulatory requirements as mutual funds.

• Managed futures often charge high fees.

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



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Disclosures

Index DisclosuresThe Barclay BTOP50 Index® (“BTOP50”): The Index seeks to replicate the overall composition of the managed futures industry with regard to tradingstyle and overall market exposure. The BTOP50 employs a top-down approach in selecting its constituents. The largest investable trading advisor programs,as measured by assets under management, are selected for inclusion in the BTOP50. In each calendar year the selected trading advisors represent, inaggregate, no less than 50% of the investable assets of the Barclay CTA Universe. To be included in the BTOP50, the following criteria must be met:

• Program must be open for investment.

• Manager must be willing to provide daily returns.

• Program must have at least two years of trading activity.

• Program’s advisor must have at least three years of operating history.

• The BTOP50’s portfolio will be equally weighted among the selected programs at the beginning of each calendar year and will be rebalanced annually.

1.The index does not encompass the whole universe of CTAs. The CTAs that comprise the index have submitted their information voluntarily. Investors cannotdirectly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Managed Futures programs in the Barclay BTOP50Index may be subject to leverage risk, volatility and risk of loss that may magnify with the use of leverage. Source: barclayhedge.com.

The S&P 500® Total Return Index is widely regarded as the best single gauge of the U.S. equities market. This world-renowned Index includes 500leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large cap segment of the market, with approximately 75%coverage of U.S. equities, it is also an ideal proxy for the total market. Total return provides investors with a price-plus-gross cash dividend return. Gross cashdividends are applied on the ex-date of the dividend. Source: standardandpoors.com.

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


Documents

Strategic Alternative Portfolio Client Presentation ... · Risk and return are related. ... PepsiCo, Inc. PPG Industries, Inc. Sandia Corporation ... Strategy Strengths • Global