Vista Financial Advisors

Investing in Tomorrow. Today.
Separately Managed Accounts

OVERVIEW

Separately Managed Accounts (SMA) offered through Vista Financial Advisors provide access to Institutional Caliber Portfolio Management while maintaining transparency of holdings and trades with direct ownership of securities in your account, flexibility to restrict purchase of specific securities, and tax management to address specific tax needs.

ACCOUNT PROCESS

SMA accounts are custodied through Schwab Institutional whereby Vista acts as Money Manager over various Managed Account Strategies.  To establish an SMA through Schwab Institutional, investors must complete a set of new account forms specifying their desired strategy for investment.

Once all account forms are completed and approved through Schwab Institutional, a “funding” account plus separate accounts for each strategy must be established and maintained. This allows for more efficient transaction and performance reporting as well as the ability to maintain one account designated specifically for the chosen SMA strategy, and a “funding” account with all the standard features of a brokerage account including bill-paying, deposits, withdrawals and individual investing outside of the SMA account.

The SMA structure allows clients the flexibility to monitor and track multiple investment strategies performance while providing much greater transparency into the underlying holdings within each portfolio strategy.  Establishing SMAs will increase a Client’s overall number of accounts, however choices are available for bundled or combined statements, comprehensive statements, or e-statements and e-confirms.  Clients should choose these preferences at the time the account is established, although the choice can be made or changed at anytime.

TRADING FEE STRUCTURE

Clients may choose from two different fee structures when establishing managed accounts with Schwab Institutional – your more traditional Transaction Based fee structure, or an Asset Based fee structure.  Your choice depends primarily on the frequency of trading activity in any proposed strategy.  For example, transaction based fees may be more appropriate for strategies with a moderate level of trading frequency, as asset based fees may be more appropriate for more frequent trading strategies.  You should review Schwab’s pricing schedule, as well as consult with your Vista portfolio manager to help you determine the best choice for your specific SMA strategy.

PORTFOLIO MANAGEMENT FEE STRUCTURE

Vista offers two fee structures for the management of your portfolio – a Tiered Asset Based fee structure or a Tiered Performance Based fee structure.  Please consult with your Vista portfolio manager to establish the fee structure appropriate for your investing needs.

SEPARATELY MANAGED ACCOUNT STRATEGIES

There are presently four separate and distinct portfolio strategies offered through Vista on Schwab Institutional’s Managed Account Platform:

  • Vista Full Spectrum Diversification Portfolio Strategy

Available to investors who are focused on greater annual return potential while maintaining net worth protection through diversification. Vista’s proprietary Broad Spectrum Diversification strategy goes well beyond conventional definitions of diversification.  This global approach deploys client portfolios across a broad universe of uniquely positioned “catalyst groups” often referred to as non-correlated asset classes.  Because these categories operate independently of one another, our clients attain the benefits of “true diversification” vs. “multiplication.”

This approach has proven itself during up markets, down markets, inflationary periods, deflationary periods, and unstable political and economic conditions such as the recent global financial crisis, during which Vista portfolios have produced consistent performance with low volatility.  Our clients enjoy the greater safety, stability and superior performance for which the Vista approach is known.

  • Vista Long/Short Strategy

A market-neutral portfolio strategy designed for investors that desire produce greater than average returns while maintaining much lower volatility and market exposure than typical stock-picking or market-timing strategies.  Individual stock positions are selected based on specific criteria encompassing both industry and sector ratings established through Vista’s proprietary program for investment selection to determine both the most attractive choices (Long Positions) and least attractive choices (Short Positions).

Additional enhancements are made to improve the relative upside potential of selected positions versus the overall downside risk to create a superior Long/Short Strategy.

  • Vista High Dividend Stock Portfolio

Vista’s High Dividend Stock Portfolio seeks long-term capital appreciation and current income.  The High Dividend Portfolio invests, under normal circumstances, in primarily dividend paying common stocks of medium- and large capitalization companies.

The High Dividend Portfolio generally invests substantially all of its assets in individual common stocks with a similar weighting in each stock in the portfolio at the time of original purchase.  This approach avoids the overweighting of any one security being purchased at any given time.  Vista may sell portfolio stocks at anytime if they are no longer attractive based on their growth potential, dividend yield or price.  Vista’s High Dividend Stock Portfolio is a non-diversified, purely directional approach.

  • Vista Multi-Strategy Fund

Vista’s Multi-Strategy Fund seeks to produce substantial growth opportunities while investing multiple strategies across various sectors.  Its flexibility provides Vista the freedom to seek out any investment believed to offer the most attractive return potential in any given market environment.  The Multi-Strategy Fund invests in a broad range of strategies utilizing equities and options.  It is non-diversified.