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Portfolio Series
Picking Winning Mutual Funds is Hard Work
A Registered Investment Advisor
600 Village Trace, Building 23 | Marietta, GA | 30067
“Big enough to deliver,
small enough to care”
Portfolio Series
by Kendall Borchardt, AIF® and Leo Rose, AIF®
One of our favorite pieces produced by DFA every year is called The US Mutual Fund Landscape Report. The purpose of this report is to analyze the performance of all mutual funds over certain time periods and compare them to their respective benchmark. It spells out the potential obstacles investors face when trying to outperform the market.
The report illustrates equity and fixed income performance over certain time periods. It also shows that
the funds that did outperform did not have a high likelihood of continuing that outperformance.
The US Mutual Fund Landscape Report is broad by nature, so we were curious to see how DFA’s own
funds compared considering that only 17% of all equity mutual funds survived and outperformed their
benchmark for the trailing 15-year period ending 12/31/2015. Fixed income mutual funds fared even
worse over the same time period.
DFA had 24 equity and 3 fixed income mutual funds that had a 15 year track record as of December 31,
2015. In the chart below, you will see the percentage of these funds that actually beat their benchmark.
Percentage of funds that beat respective benchmark 15-year period ending December 31, 2015
Equity Fixed Income
DFA funds 88% 100%
All funds 17% 7%
Source: Morningstar and The US Mutual Fund Landscape Report
The 3 DFA equity funds that underperformed their benchmark for the 15 year annualized period missed
by:
1. DFA Large Cap International I - missed by 7 bps 2. DFA US Large Company I - missed by 3 bps 3. DFA Emerging Markets I - missed by 12 bps
Portfolio Series
DFA funds are the cornerstone of our model portfolios. We’ve continued to use DFA funds for our nearly 20-year history (November 1996) not only for their investment philosophy, but also for their ability to deliver consistent results for long-term investors. Lindner Capital Advisors provides access to portfolios predominately using Dimensional Fund Advisors (DFA)—one of the most respected providers of institutional funds and advanced portfolio designs. Based on Modern Portfolio Theory (MPT), DFA’s approach is rooted in the ideas of Eugene Fama, a leading thinker and economist known for his work on portfolio theory, asset pricing and stock market behavior, and the recipient of the 2013 Nobel Prize in Economics.
Which mutual funds outperform their benchmarks over time?
Wes Crill, PhD, walks through Dimensional’s annual analysis
of a representative sample of the mutual fund industry and
reveals key findings from the research.
Kendall Borchardt VP of Sales and Marketing
After working directly with clients for several years, Kendall
made a shift to the fee based “wholesaling” side of the
business. Kendall joined Lindner Capital Advisors in June 2009
and is currently a Regional Director. Her time is spent working
with financial advisors and helping them grow a simple,
elegant and consistent business model. She consults advisors
with ideas to strengthen HNW relationships, drive client
acquisition, broaden their referral network, identify HNW
client and strategic business leads as well as hold creative
marketing events. She also assists advisors who want to grow
a 401(k) business.
678.480.7054 | [email protected]
Leo Rose Portfolio Analyst
As a part of the Portfolio Management Team, Leo focuses on
assisting and educating financial advisors with implementing
asset allocation models for their retail and retirement plan
clients. Leo is a member of the LCA Investment Committee
which is responsible for monitoring and recommending
changes, if necessary, to the LCA model portfolios. Leo has
been instrumental in developing the LCA ERISA program by
meeting with ERISA attorneys, drafting documents, designing
investment policy statements, constructing portfolios, and
preparing presentations for advisors to use with clients who
desire to establish a qualified plan for their employees.
770.977.7779 | [email protected]
About the authors…
Lindner Capital Advisors, Inc. (LCA) is an SEC registered investment advisor. The information contained in this document is informational
and for educational 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. 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 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 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.
©2016 Lindner Capital Advisors, Inc. All rights reserved.
LI_MFL_201608 (08/16)
A Registered Investment Advisor
600 Village Trace, Building 23 | Marietta, GA | 30067
“Big enough to deliver,
small enough to care”
Portfolio Series
About LCA…
Lindner Capital Advisor, Inc. is a federally Registered Investment Advisor based in suburban
Atlanta, Georgia, with representation throughout the United States. Our investment platform
provides access to institutional fund strategies and exclusive money managers that are not
readily available to the retail market. Our portfolios are designed to be consistent with a client’s
unique investment objectives, individual time horizon, and tolerance for risk.
To learn more, visit www.lindnercapital.com
770.977.7779 | [email protected]
