Fiduciary Reporting serves two functions:
- It tells the client if the portfolio is being managed properly and expertly; and
- It documents fiduciary oversight, a necessary requirement if fiduciaries are to claim relief of liability offered either by statute (ERISA 405(d)(1) and ERISA 404(c)), or by common law (largely based on case law arising from the Third Restatement of Trusts).
Heintzberger | Payne Advisors prepares three types of fiduciary reports. The first type of report focuses on the portfolio in its entirety and its compliance to the guidelines of a Statement of Investment Policy ("SIP"). A second report is devoted to the performance of managers or funds employed within the portfolio, again addressing guidelines set forth in the SIP. A third report acts as an executive summary, affording a quick visual review of the compliance of all of the portfolio's managers and funds. Key performance data is color-coded as green, yellow or red to allow fiduciaries to focus in on those managers whose performance needs close scrutiny or is in violation of the SIP.
All three reports are updated monthly and posted online for client access. Within 10 business days of the end of each calendar quarter, these reports are mailed in hard copy to the client. The report package includes, among other additional information of interest to the client, a written statement signed by a Principal of Heintzberger | Payne Advisors as to the compliance of portfolio activity to the guidelines set forth in the SIP. Fiduciaries should retain these written reports for their documentation of their responsibility to conduct proper oversight of Heintzberger | Payne Advisors as an Investment Manager. (Heintzberger | Payne Advisors archives copies of all quarterly reports it has mailed on the website so that they are available for the client to download .)