Buena Vista Investment Management

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Fund Selection Process

Buena Vista Investment Management utilizes a proprietary process to select mutual funds for use in our investment management programs.  Mutual funds are chosen based on a wide variety of characteristics.  We complete a detailed review of both quantitative and qualitative issues which helps us select funds that have consistent processes, philosophies and performance.  These unique high performing funds are added to client portfolios or Buena Vista managed portfolios based on specific risk and return parameters.

Our goal is both simple and complex – we attempt to identify and assemble the best mutual funds and mangers possible, from a universe of over 3,500 mutual funds.  Once a mutual fund has been selected for use in the Buena Vista Diversified Mutual Fund Program it is continually reviewed against its peer group and appropriate benchmarks to determine if continued use is appropriate. Our responsibility is to find the “best of the best”. 

Some of the steps used to identify the mutual funds for our portfolios are listed here:

Quantitative Screens (characteristics that can be easily measured)
Investment Performance:  We begin with performance.  To be considered one of the best, the fund’s historical track record must be above average.  We review three and five year annual periods as well as rolling period performance numbers against both relative benchmarks and peer group numbers.

Manager Tenure:  The best mutual fund managers have built solid reputations for themselves over time. Quality fund performance and quality managers typically go hand in hand.  We focus on funds that have had managers in place for at least four years.

Focused Holdings:  Our Diversified Mutual Program has been built on the theory that the use of multiple funds from varied fund families provides excellent diversification.  However, the use of multiple funds containing hundreds of securities can create too much diversification.  We are interested in managers who focus their investment holdings in a relatively small number of stocks.

Fund Volatility:  We design our portfolios based on the concept that we want our portfolios to generate quality returns, but we want to accomplish this goal with reasonable portfolio volatility.

Fund Size: A mutual fund growing assets very quickly can cause managers to change processes.  It is our position that using smaller funds brings unique benefits to our investment process.

Qualitative Screens (factors that are more difficult to measure)
Manager Accessibility:  We look for funds that will provide us direct access to the fund manager.  This accessibility helps us better understand fund strategies and security selection processes.

Risk Adjusted Returns:  Risk and return normally go hand in hand.  We focus on funds that have shown the ability to achieve above average returns while doing it with a minimum of risk to its investors.

Performance in All Markets Conditions:  Quality performance is generated in both up and down markets. We review performance in all market conditions prior to selecting a fund for use in our portfolios.


Buena Vista Investment Management reviews a host of statistical data before selecting mutual funds for use in client portfolios or in our Diversified Mutual Fund Program.  This data is divided into three distinct categories: Performance, Portfolio Details and Fund Rankings.

Performance: We utilize a five year time period to review fund performance. Performance is reviewed on an annual basis, multiple year periods and rolling periods to determine the continuity of performance numbers.  Consistent performance and management style is a priority for selection.

3 and 5 Year Performance Returns
5 Individual Year Performance Returns
Rolling Six Month and Annual Performance Returns
Performance in both up and down markets (special consideration to bear market performance)

Portfolio Details: We review a host of portfolio details before selecting a mutual fund for use.  The following categories are used to compare and contrast investment processes of high performing mutual funds.

Manager Tenure
Current Fund Assets and Historic Growth of Assets
Total Number of Portfolio Holdings
% of Assets in Top 10 Holdings
Portfolio Turnover
Standard Deviation
Alpha and Beta
Sharpe Ratio
Portfolio Overlap Comparison

Fund Rankings - Morningstar is a well respected company that analyzes and provides comparative data on over 4,000 mutual funds.  Buena Vista Investment Management uses this data to assist in its analysis of potential investment candidates.

Morningstar Star Ranking
Morningstar 3 and 5 Year Risk Ranking
Morningstar Return Ranking
3 Year Return Ranking vs. Peer Group


Buena Vista Investment Management utilizes outside sources, such as Morningstar, to obtain the necessary data to select mutual funds.  Buena Vista can not guarantee the accuracy of this data but will make a good faith effort to understand and analyze the data to determine if it appears accurate.

Buena Vista makes no guarantees as to how mutual funds will be selected and retained. Buena Vista in its sole discretion will determine which funds are to be included in our investment programs.

Buena Vista Investment Management may change it processes without prior notice.  It will make a good faith effort to notify all clients of any and all changes.  Buena Vista Investment Management can not take responsibility for non-clients that use this and other investment information created by Buena Vista to make their own investment decisions.


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