2. STEP I: RECEIVE REPORTS Michell Fujiio runs reports on the 2nd business day of the month and sends them to the AIR Supervisors, who then distribute to the PMs. Reports could include: IRM00A: 60-Day Reviews Due—This is for new accounts which are flagged for the required 60-day review. IRM002B: Annual Reviews Due—Lists all accounts due for annual reviews this cycle. IRM002A: Account Review Form—Provides account investment objective, asset allocation, signoff spaces for PM and Committee. The Asset Detail report should be attached to this report. This is the report which will need immediate attention for the AIR meeting. IRM002B: Asset Detail—Generated when an account has been flagged to have an exception or reportable asset. This report providees the account’s holdings information at the position level. IRM002C: Investment Policy Committee Exceptions IRM002D: Accounts in Compliance IRM004A: Review Aging Accounts (for the Admin and PM). Shows accounts with outstanding reviews in progress for more than 30 days. IRM006A: Corrective Actions Report—Lists accounts for which corrective actions have been entered and have not yet been completed. IRM002F: Accounts Holding Bonds with Less Than Acceptable Ratings—Lists accounts reviewed this cycle that hold bonds with less-than-acceptable ratings. The PM must attach documentation (e.g. Bloomberg printouts) or enter an explanation on the lines provided and must sign off on it. This report will be presented at the AIR meeting. If the IPC approves the explanation, the AIR Supervisor will stamp her approval. The assistant binds this report into the client’s Investment Review file.
3. STEP II: DETERMINE CODES PM reviews Exception Codes on the Account Review Form (ARF). In the space provided on the ARF, PM enters the Explanation and/or Corrective Action Codes. PM may use up to two explanations/corrective action codes for each exception. If none of the Explanation codes seems appropriate, the PM may enter “099,” which allows the PM to customize the explanation. However, spacing is limited, so the PM must be concise! Proper documentation must be attached if the PM enters an Explanation Code (e.g. printout of trades or client retention letter) It is the responsibility of the PM to close out a Corrective Action. If not, it will appear on the Review Aging Report the following month. The PM or analyst enters the codes into the AIR system via Screen 11. A copy of the AIR screen shot needs to be attached to the ARF and Asset Detail explanation code.
4. STEP III: AIR MEETING At the AIR meeting (held 1 week after the IPC meeting which takes place the 4 th Tuesday of the month), the PMs review their account exceptions and detail the corresponding explanations or corrective actions. Only accounts with exceptions are discussed at this meeting.
5. ALTERNATE STEP III: IF PM CANNOT ATTEND AIR MEETING If the PM cannot be present at the AIR meeting, the PM may be “represented” by another PM or assistant who will review the accounts, or the PM can meet with John Sawyer at a later date. John, acting on behalf of IPC, can approve the ARF. He will sign and send originals to the AIR Supervisor. The AIR Supervisor will approve it and send a copy to Shirley Morris and place the original into the client file.
6. STEP IV: WRAP UP If the ARF is approved, the PM and RM sign the reports. The PM gives reports to the AIR Supervisor who will stamp her approval and enter into the AIR system. The assitant binds this report into the client’s Investment Review file. If the Explanation/Corrective Action code is NOT approved by the IPC, the PM must take whatever action steps are recommended by the IPC in order to clear the exception. The PM must then re-submit the ARF at the following month’s AIR meeting; alternatively, the PM may present one-on-one to John Sawyer, who, acting on behalf of the IPC, is able to approve the ARF.
