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General Employees' Pension Board of Trustees - 10 Feb 2022 - Agenda - PdfCity of Atlantic Beach Agenda General Employees' Pension Board of Trustees Meeting Thursday, February 10, 2022 - 6:30 p.m. Commission Chamber City Hall, 800 Seminole Road Page(s) 1. CALL TO ORDER 2. COURTESY OF THE FLOOR TO VISITORS 3. APPROVAL OF MINUTES 3.A. Approve minutes of the November 18, 2021 regular meeting of the General Employees' Pension Board of Trustees. General Employees' Pension Board of Trustees - 18 Nov 2021 - Minutes - Pdf 3-5 4. REPORTS 4.A. Recap of investment performance for the period ended December 31, 2021 and subsequent activity. Atlantic Beach 4Q 2021 Report 7-89 4.B. Expenditure report for the period ended December 31, 2021. 91 General Employees Pension Fund Expenditures 4.C. Fund balance report for the period ended December 31, 2021. 93 General Employees Pension Fund Balance Report 5. DISCUSSION WITH PENSION BOARD ATTORNEY S.A. Items For Discussion 6. NEW BUSINESS 6.A. Change in Employment Status • Linda Lenhart • Luz Reyes 7. ADJOURNMENT This meeting will be live -streamed and videotaped. To access live or recorded videos, click on the Meeting Videos tab on the city's home page at www.coab.us. In accordance with the American with Disabilities Act and Section 286.26 of the Florida Statutes, persons with disabilities needing special accommodations to participate in this Page 1 of 93 General Employees' Pension Board of Trustees - 10 Feb 2022 meeting should contact City Clerk Donna Bartle at 247-5809 or at City Hall, 800 Seminole Road, Atlantic Beach, Florida not less than three (3) days prior to the date of this meeting. Page 2 of 93 Agenda Item #3.A. 10 Feb 2022 MINUTES General Employees' Pension Board of Trustees Meeting Thursday, November 18, 2021 - 6:30 PM Commission Chamber Present: Troy Stephens, Member Patty Drake, Member Ray Brandstaetter, Chair, General Employees' Pension Board of Trustees Jeff Newman, Member, General Employees' Pension Board of Trustees Absent: Nicholas Kenyon, Member Rob Miller, Alternate Member, General Employees' Pension Board of Trustees Also Present: Melissa Burns, Director of Finance Pedro Herrera, Board Attorney, Sugarman & Susskind, P.A. David A. Wheeler, Graystone Consulting Timothy P. Haugaard, Graystone Consulting 1. CALL TO ORDER 2. COURTESY OF THE FLOOR TO VISITORS 3. APPROVAL OF MINUTES A. Approve minutes of the August 12, 2021 regular meeting of the General Employees' Pension Board of Trustees. MOTION: Motion to approve minutes as presented. Motion: Ray Brandstaetter Second: Troy Stephens Troy Stephens (Seconded By) For Patty Drake For Ray Brandstaetter (Moved By) For Jeff Newman For Motion passed 4 to 0. 4. REPORTS A. Recap of investment performance for the period ended September 30, 2021 and subsequent activity. General Employees' Pension Board of Trustees November 18, 2021 Page 1 of 3 Page 3 of 93 Agenda Item #3.A. 10 Feb 2022 David Wheeler and Timothy Haugaard presented the 3rd Quarter 2021 Performance Report. The total value at the end of the quarter was $26,573,875.95. Quarter to Date (7/1/2021-9/30/2021) - (0.58)% Performance Since Inception (03/10/2010-9/30/2021) - 7.69% B. Expenditure report for the period ended September 30,2021. Report is for informational purposes only. No discussion occurred. C. Fund balance report for the period ended September 30,2021. Report is for informational purposes only. No discussion occurred. 5. DISCUSSION WITH PENSION BOARD ATTORNEY A. Items for discussion. Attorney Herrera reminded board members about their obligations regarding accepting gifts set forth by the Florida Ethics laws as they are considered public officials. Advised the board that the firm of Sugarman and Susskind will be making a charitable donation on the boards behalf as their holiday gift which has been valued at $25 or less, no reporting requirements are necessary. Attorney Herrera informed the board that the winter Trustees School through the FTPPA is scheduled for January 23-26, 2022 in Orlando. The Division of Retirement has not announced its training yet, but it is usually held in the spring. 6. NEW BUSINESS A. Discussion of cash flow needs. The General Employees' Pension Trust Fund has had several DROP payouts, and current retiree payments exceed the contributions being made, therefore additional cash is needed from investments to aid in the plan's cash flow, it is estimated that $150,000 will be needed to cover the cash deficit. David Wheeler suggested several areas in the plan's investments in order to raise the cash. MOTION: Motion to approve recommendations to raise $150,000 needed for cash. Motion: Ray Brandstaetter Second: Troy Stephens Troy Stephens (Seconded By) For Patty Drake For Ray Brandstaetter (Moved By) For General Employees' Pension Board of Trustees November 18, 2021 Page 2 of 3 Page 4 of 93 Agenda Item #3.A. 10 Feb 2022 Jeff Newman For Motion passed 4 to 0. 7. ADJOURNMENT There being no further discussion, Chair Brandstaetter declared the meeting adjourned at 7:09 p.m. Attest: Melissa Burns, Plan Administrator Ray Brandstaetter, Chair General Employees' Pension Board of Trustees November 18, 2021 Page 3 of 3 Page 5 of 93 Page 6 of 93 @ro (D 0 w City of Atlantic Beach General Employees' & Police Officers' Pension Plans Quarterly Performance Report As of December 31, 2021 David Wheeler, LIMA®, CFP®, CRPS® Managing Director - Wealth Management Institutional Consulting Director Alternative Investment Director Corporate Retirement Director David.A.Wheeler@msgraystone.com (813) 227-2178 Graystone Consulting - A A business of Morgan Stanley Timothy P. Haugaard, LIMA® Vice President - Wealth Management Institutional Consulting Analyst Timothy.P.Haugaard@msgraystone.com (386) 740-2001 Graystone Consulting' -10 v 00 fD 00 0 LA.) Table Of Contents Tab# Section Name 1 Capital Markets Overview 2 Police Officers' Pension Plan Performance Reports 3 General Employees' Pension Plan Performance Reports 4 Manager Performance Analysis 5 Updated Values / Recommendations Page # Page 3 Page 24 Page 32 Page 40 Page 76 Graystone Consulting' ro 0 l0 W Graystone Consulting- A business of Morgan Stanley Capital Markets Overview Page 3 Graystone Consulting WEALTH MANAGEMENT Morgan Stanley Equity Index Return Distribution Distribution of S&P 500 Index Returns Annual Data - December 1926 to December 2021 73% of years have had positive total returns 1931 2008 1937 2002 1974 1930 2001 1973 1966 1957 1941 2018 2000 1990 1981 1977 1969 1962 1953 1946 194o 1939 1934 1932 1929 2015 2011 2007 2005 1994 1993 1992 1987 1984 1978 1970 1960 1956 1948 1947 2020 2017 2016 2014 2012 2010 2006 2004 1988 1986 1979 1972 1971 1968 1965 1964 1959 1952 1949 1944 1926 2021 2009 2003 1999 1998 1996 1983 1982 1976 1967 1963 1961 1951 1943 1942 2019 2013 1997 1995 1991 1989 1985 198o 1975 1955 1950 1945 1938 1936 1927 1958 1935 1928 1954 1933 -40% to -5o% -3o% to -4o% -3o% to -2o% -10% to -2o% o% to -1o% o% to +10 % +10% to +2o% +2o% to +3o% +3o% to +4o% +4o% to +5o% +5o% to +6o% Performance Ranges (io% Increments) Source: Calculated by Morgan Stanley Wealth Management GIC using data provided by Morningstar. (c) 2020 Morningstar, Inc. All rights reserved. Used with permission. This information contained herein: (i) is proprietary to Morningstar and/or its content providers; (ii) may not be copied or distributed; and (iii) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu Grays tone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Consultingsm P ag5ALTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY WEALTH MANAGEMENT Morgan Stanley Intra -Year Advances and Declines S&P SooAnnual Returns and Intra -Year Draw Ups & Draw Downs As of December 31, 2021 70 50 45 43 38 39 40 39 39 34 33 34 35 3334 32 30 31 30 • 30 30 23242326 z4 z3 �5 �5 26 23 24 • 2120 21 21 20 ., 21 2121 21 20 19 1517 1715 1516 13 151413 1517 16 1j 17 14 15'" 1 1412,14 17 • • 1717 1 151011 10112 1210 • 3 17 8 •••10 I1I IIIII II 11. ISI �IIII I II1ihl 01 1 • 1O • •-2 •• 4•• 4• 4 • 4• •• 5 • • •• •• •• -6. 5•-3•• • •• •-6• 5 ••••_8_7. ••• 8 7• 1f11 _,• 7 -10 7 9• • • 8••-10• •"7. 8 9 -8-8 6 -B-11.-120 • •-8-7-8.10 • -10 7• $ -6 -16141314 -15 • -13 • -16 .14 •-�4 -16�4 1 • 1 13 • 14 i6• -12 • • -21 • 22 • • Z1$ 7 zo -19 17 • -19 -20 -30-26 23 • -27 -27 •30• -28 • -34 -34 67 68 -50 -38 • -31 • -49 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 ■Annual Return Median: ii% • Maximum Intra -year Decline Maximum Intra -year Rise Median: -i.s.% Median: 20% Source: Bloomberg, Morgan Stanley Wealth Management GIC. Intra -year declines are defined as the peak -to -trough decline during the year based on price return. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. P agALTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY Grays tone Consultingsm WEALTH MANAGEMENT Morgan Stanley Market Timing Is a Flawed and Costly Strategy Annualized Total Returns of S&P 500 (1990-2020) Days with Large Price Changes Tend to Cluster Together As of December 31, 2021 As of December 31, 2021 12% 9% -3% 10.7% Stay invested 7.3% 5.O% 3.0% 1.2% -0.4% -1.8% No Less 15 Less 3o Less 45 Less 6o Less 75 Less go Missed Best Best Best Best Best Best Days Days Days Days Days Days Days 4,750 4,500 4,250 4, 000 3,750 3500 3,250 3, 000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 2007 Days with big swings up tend to coincide with days with big swings down 2009 2011 2013 2015 2017 2019 2021 -S&P 500 Swings Below -2.5% Swings Above 2.5% Source: Bloomberg, FactSet, Morgan Stanley Wealth Management GIC. Note: Best days are defined as the days with the highest single -day returns in the S&P 500, Bloomberg. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Page°TALTHMANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 INTRO TO INVESTING Graystone Consultingsm WEALTH MANAGEMENT Morgan Stanley Over the Long Term, S&P 500 Has Grown Despite Negative Events S&P 500: Growth of $ioo January 1926— December 2021 61,000,000 $100,000 Vietnam War $10,000 Nixon Resigns '^ Cuban Missile c 61,000 Crisis Korean War $100 Great Depression World War II 1987 Crash Tech Boom September 11th 51,408,386 Covid-1g Crisis Financial Crisis $10 1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 zoos 2006 2011 2016 2021 Source: FactSet, Ibbotson, Calculated by Morgan Stanley Wealth Management GIC using data provided by Morningstar. (c) 2020 Morningstar, Inc. All rights reserved. Used with permission. This information contained herein: (i) is proprietary to Morningstar and/or its content providers; (ii) may not be copied or distributed; and (iii) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu Grays tone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pag ALTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY COriSUltingtM a) -17 DO (D 0 —h W WEALTH MANAGEMENT Morgan Stanley Cumulative Performance in a Rising Rate Regime (1945-'80) Cumulative Total Return of si from 1945-198o as of December 31, ig8o s (Logarithmic Scale) $1,000 Annualized Total Return % -S&P 500: 11.4% US Small Cap Stocks: 15.o% US Long -Term Government Bonds: 2.3% 5100 US Inflation: 4.5% US 3o Day Treasury Bills: 3.7% $10 Long-term bonds and T -Bills have had negative real returns X45 '46 '47 '48 X49 '50 X51 '52 '53 X54 '55 '56 '57 '58 '59 '6o '61 '62 '63 '64 '65 '66 '67 '68 '69 '7o '71 '72 '73 '74 '75 '76 '77 '78 '79 '8o $157 $50 55 54 $2 Source: Calculated by Morgan Stanley Wealth Management GIC using data provided by Morningstar. (c) zozo Morningstar, Inc. All rights reserved. Used with permission. This information contained herein: (i) is proprietary to Morningstar and/or its content providers; (ii) may not be copied or distributed; and (iii) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Aside from the S&P 500, all indices shown above are Ibbotson indices. The hypothetical si investment is for illustrative purposes only. It does not represent the performance of any specific investment. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. p a gg4A LTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY Grays tone ConsultingtM WEALTH MANAGEMENT Morgan Stanley US Equity Performance vs. Earnings Performance S&P 500 Index Level Vs. S&P 500 Operating Earnings Weekly Index Level and Operating Earnings as of December 31, 2021 4,500 4,100 3,700 3,300 2,900 2,500 2,100 1,700 1,300 900 500 100 -S&P 500 Index Level (left axis) -S&P 500 Earnings (right axis) Dec 31, 2021 Fwd. P/E = 21.4 4,766 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 300 250 200 150 100 50 0 Source: Bloomberg. Stocks Overvalued = equity performance outpaces earnings performance. Stocks Undervalued = earnings performance outpaces equity performance. Fairly Valued = stock performance and earnings performance are in line with one another. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pagdt ALTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY Grays tone ConsultingtM WEALTH MANAGEMENT Morgan Stanley Current Indicators Current Indicators: Growth Atlanta Fed GDPNow Forecast As of January 28, 2022 3o% 10% -io% -30% -50% 2012 0.05% i Global Purchasing Manager Indices As of December 31, 2021 55 50 45 40 35 30 2014 2016 2018 2020 2022 2010 2012 2014 2016 2018 2020 Comp. PMI: 54.3 Manuf. PMI: 54.2 Serv. PMI: 54.6 US Real Imports and Exports (Y/Y, 3M Average) As of November 30, 2021 25% 15% 2013 2015 2017 2019 Imports —Exports 2021 US Durable Goods Orders Ex -Transportation (Y/Y) As of December 31, 2021 25% 2009 2012 2015 2018 2021 Source: Bloomberg, Haver Analytics, EvercorelSl Investor Surveys, Commitments of Traders (COT) Report, Morgan Stanley Wealth Management GIC Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to bu financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pagel ®LTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 WEEKLY DIGEST Graystone Consultings"' WEALTH MANAGEMENT Morgan Stanley Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan StanleyWealth Management has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. 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In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a `Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved."The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. Certain investment products on either the Focus List or Approved List may also be recommended for the Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan StanleyWealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "Manager Selection Process." The Global Investment Committee is a group of seasoned investment professionals who meet regularly to discuss the global economy and markets. The committee determines the investment outlook that guides our advice to clients. They continually monitor developing economic and market conditions, review tactical outlooks and recommend model portfolio weightings, as well as produce a suite of strategy, analysis, commentary, portfolio positioning suggestions and other reports and broadcasts. The GIC Asset Allocation Models are not available to be directly implemented as part of an investment advisory service and should not be regarded as a recommendation of any Morgan Stanley investment advisory service. The GIC Asset Allocation Models do not represent actual trading or any type of account or any type of investment strategies and none of the fees or other expenses (e .g. commissions, mark-ups, mark-downs, advisory fees, fund expenses) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models which , when compounded over a period of years, would decrease returns. Adverse Active AlphaSM 2.0 is a patented screening and scoring process designed to help identify high-quality equity and fixed income managers with characteristics that may lead to future outperformance relative to index and peers. While highly ranked managers performed well as a group in our Adverse Active Alpha model back tests, not all of the managers will outperform. Please note that this data may be derived from back -testing, which has the benefit of hindsight. In addition, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. Our view is that Adverse Active Alpha is a good starting point and should be used in conjunction with other information. Morgan StanleyWealth Management's qualitative and quantitative investment manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors includina. but not limited to. manaaer Grays tone ConsultingsM DISCLOSURES Page 11 v Otl rD 00 0 -hW WEALTH MANAGEMENT Morgan Stanley turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha ranking. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. The proprietary Value Score methodology considers an active investment strategies' value proposition relative to its costs. From a historical quantitative study of several quantitative markers, Value Score measures perceived forward-looking benefit and computes (i) "fair value" expense ratios for most traditional investment managers across 4o categories and (2) managers' perceived "excess value" by comparing the fair value expense ratios to actual expense ratios. Managers are then ranked within each category by their excess value to assign a Value Score. Our analysis suggests that greater levels of excess value have historically corresponded to attractive subsequent performance. For more information on the ranking models, please see Adverse Active AlphaSM z.o: Scoring Active Managers According to Potential Alpha and Value Score: Scoring Fee Efficiency by Comparing Managers' "Fair Value" and Actual Expense Ratios. The whitepapers are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,098 applies to the Adverse Active Alpha system and/or methodology. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. For more information on AAA, please see the Adverse Active Alpha Ranking Model and Selecting Managers with Adverse Active Alpha whitepapers. The whitepaper are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,098 applies to the Adverse Active Alpha system and/or methodology. The Global Investment Manager Analysis (GIMA) Services Only Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some - but not all - of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA Status changes even though it may give notice to clients in other programs. 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For example, on an advisory account with a 2.5% annual fee, if the gross annual performance is 6.00%, the compounding effect of the fees will result in a net performance of approximately 3.38% after one year, io.5o% after three years, and i8.io%after five years. Conflicts of Interest: GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, our business is subject to various conflicts of interest. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan StanleyWealth Management or its affiliates. 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In addition, Morgan StanleyWealth Management, MS & Co., managers and their affiliates orovide a variety of services Grays tone Consultings' DISCLOSURES Page 12 WEALTH MANAGEMENT Morgan Stanley (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts , and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS & Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. 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This differing liquidity profile can have a material impact on the investment returns generated by a mutual fund or ETF pursuing an alternative investing strategy compared with a traditional hedge fund pursuing the same strategy. Nontraditional investment options and strategies are often employed by a portfolio manager to further a fund's investment objective and to help offset market risks. However, these features may be complex, making it more difficult to understand the fund's essential characteristics and risks, and how it will perform in different market environments and over various periods of time. They may also expose the fund to increased volatility and unanticipated risks particularly when used in complex combinations and/or accompanied by the use of borrowing or "leverage." The Morgan Stanley Digital Vault ("Digital Vault") is accessible to clients with dedicated Financial Advisors. Documents shared via the Digital Vault should be limited to those relevant to your Morgan Stanley account relationship. Uploading a document to the Digital Vault does not obligate us to review or take any action on it, and we will not be liable for any failure to act upon the contents of such document. Please contact your Financial Advisor or Branch Management to discuss the appropriate process for providing the document to us for review. If you maintain a Trust or entity account with us, only our certification form will govern our obligations for such account. Please refer to the Morgan Stanley Digital Vault terms and conditions for more information. Information related to your external accounts is provided for informational purposes only. It is provided by third parties, including the financial institutions where your external accounts are held. Morgan Stanley does not verify that the information is accurate and makes no representation or warranty as to its accuracy, timeliness, or completeness. Additional information about the features and services offered through Total Wealth View are available on the Total Wealth View site on Morgan Stanley Online and also in the Total Wealth View Terms and Conditions of Use. DISCLOSURES Page 13 Grays tone Consulting 0.) Ott rD N -h O 0 W WEALTH MANAGEMENT Morgan Stanley Mobile check deposits are subject to certain terms and conditions. Checks must be drawn on a U.S. Bank. Send Money with Zelle® is available on the Morgan Stanley Mobile App for iPhone and Android and on Morgan Stanley Online. Enrollment is required and dollar and frequency limits may apply. Domestic fund transfers must be made from an eligible account at Morgan Stanley Smith Barney LLC (Morgan Stanley) to a US -based account at another financial institution. Morgan Stanley maintains arrangements with JP Morgan Chase Bank, N.A. and UMB Bank, N.A. as NACHA-participating depository financial institutions for the processing of transfers on Zelle®. Data connection required, and message and data rates may apply, including those from your communications service provider. Must have an eligible account in the U.S. to use Zelle®. Transactions typically occur in minutes when the recipient's email address or U.S. mobile number is already enrolled with Zelle. See the Morgan Stanley Send Money with Zelle® terms for details. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. Morgan Stanley is not affiliated with Zelle®. Electronic payments arrive to the payee within 1-2 business days, check payments arrive to the payee within 5 business days. Same-day and overnight payments are available for an additional fee within the available payment timeframes. KEY ASSET CLASS CONSIDERATIONS AND OTHER RISKS Investing in the markets entails the risk of market volatility. The value of all types of investments, including stocks, mutual funds, exchange -traded funds ("ETFs"), closed-end funds, and unit investment trusts, may increase or decrease over varying time periods. To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting standards. These risks may be magnified in emerging markets and frontier markets. Small- and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. In addition, the securities of small- and mid -capitalization companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and credit risk of the issuer. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. In the case of municipal bonds, income is generally exempt from federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. Treasury Inflation Protection Securities' (TIPS) coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPI). While the real rate of return is guaranteed, TIPS tend to offer a low return. Because the return of TIPS is linked to inflation, TIPS may significantly underperform versus conventional U.S. Treasuries in times of low inflation. There is no guarantee that investors will receive par ifTIPS are sold prior to maturity. The returns on a portfolio consisting primarily of environmental, social, and governance -aware investments ("ESG") may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. The companies identified and investment examples are for illustrative purposes only and should not be deemed a recommendation to purchase, hold or sell any securities or investment products. They are intended to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a client's account will be managed as described herein. Options and margin trading involve substantial risk and are not appropriate for all investors. Besides the general investment risk of holding securities that may decline in value and the possible loss of principal invested, closed-end funds may have additional risks related to declining market prices relative to net asset values (NAVs), active manager underperformance and potential leverage. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount from their NAV which may increase investors' risk of loss. The risk of loss due to this discount may be greater for investors expecting to sell their shares in a relatively short period after completion of the public offering. This characteristic is a risk separate and distinct from the risk that a closed-end fund's net asset value may decrease as a result of investment activities. NAV is total assets less total liabilities divided by the number of shares outstanding. At the time an investor purchases or sells shares of a closed-end fund, shares may have a market price that is above or below NAV. Portfolios that invest a large percentage of assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to: Loss of all or a substantial portion of the investment due to leveraging, short -selling, or other speculative practices; Lack of liquidity in that there may be no secondary market for a fund; Volatility of returns; Restrictions on transferring interests in a fund; Potential lack of diversification and resultina hiaher risk due to Graystone Consulting DISCLOSURES Page 14 Otl rD N 0 LOW WEALTH MANAGEMENT Morgan Stanley concentration of trading authority when a single advisor is utilized; Absence of information regarding valuations and pricing; Complex tax structures and delays in tax reporting; Less regulation and higher fees than mutual funds; Risks associated with the operations, personnel, and processes of the manager; and Risks associated with cybersecurity. As a diversified global financial services firm, Morgan StanleyWealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan StanleyWealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan StanleyWealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan StanleyWealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2241 or a "debt research report" as defined by FINRA Rule 2242 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or Morgan Stanley & Co. LLC or its affiliates. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements. Clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. While the HFRI indices are frequently used, they have limitations (some of which are typical of other widely used indices). These limitations include survivorship bias (the returns of the indices may not be representative of all the hedge funds in the universe because of the tendency of lower performing funds to leave the index); heterogeneity (not all hedge funds are alike or comparable to one another, and the index may not accurately reflect the performance of a described style); and limited data (many hedge funds do not report to indices, and the index may omit funds, the inclusion of which might significantly affect the performance shown. The HFRI indices are based on information self-reported by hedge fund managers that decide on their own, at any time, whether or not they want to provide, or continue to provide, information to HFR Asset Management, L.L.C. Results for funds that go out of business are included in the index until the date that they cease operations. Therefore, these indices may not be complete or accurate representations of the hedge fund universe, and may be biased in several ways. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Individual funds have specific tax risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum , are distributed by Morgan StanleyWealth Management and certain of its affiliates, and (1) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley Wealth Management or any of its affiliates, (3) are not guaranteed by Morgan Stanley Wealth Management and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Wealth Management is a registered broker-dealer, not a bank. This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors or prospective investors, as applicable, receiving this material) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. Past performance is no guarantee of future results. Actual results may vary. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. In Consulting Group's advisory programs, alternative investments are limited to US -registered mutual funds, separate account strategies and exchange -traded funds (ETFs) that seek to pursue alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives and options, which can increase volatility and the risk of investment loss. Alternative investments are not appropriate for all investors. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker-dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. A majority of Alternative Investment managers reviewed and selected by GIMA pay or cause to be paid an ongoing fee for distribution from their management fees to Morgan StanleyWealth Management in connection with Morgan StanleyWealth Management clients that purchase an interest in an Alternative Investment and in some instances pay these fees on the investments held by investments held by brokerage clients. Morgan Stanley Wealth Management has a conflict of interest in offering alternative investments because Morgan StanleyWealth Management or our affiliates, in most instances, earn more money in your account from your investments in alternative investments than from other investment options. It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and offer complete transparency as to membership and construction methodology. As such, some believe that hedge fund index returns have certain biases that are not present in traditional indexes. Some of these biases inflate index performance, while others may skew performance negatively. However, many studies indicate that overall hedge fund index performance has been biased to the upside. Some studies suggest performance has been inflated by up to 26o basis points or more annually depending on the types of biases included and the time period studied. Although there are numerous potential biases that could affect hedge fund returns, we identify some of the more common ones throughout this paper. DISCLOSURES Page 15 Grays tone Consulting 0.) Oti rD NJ N 0 -h Lu WEALTH MANAGEMENT Morgan Stanley Self-selection bias results when certain manager returns are not included in the index returns and may result in performance being skewed up or down. Because hedge funds are private placements, hedge fund managers are able to decide which fund returns they want to report and are able to opt out of reporting to the various databases. Certain hedge fund managers may choose only to report returns for funds with strong returns and opt out of reporting returns for weak performers. Other hedge funds that close may decide to stop reporting in order to retain secrecy, which may cause a downward bias in returns. Survivorship bias results when certain constituents are removed from an index. This often results from the closure of funds due to poor performance, "blow ups," or other such events. As such, this bias typically results in performance being skewed higher. As noted, hedge fund index performance biases can result in positive or negative skew. However, it would appear that the skew is more often positive. While it is difficult to quantify the effects precisely, investors should be aware that idiosyncratic factors may be giving hedge fund index returns an artificial "lift" or upwards bias. Hedge Funds of Funds and many funds of funds are private investment vehicles restricted to certain qualified private and institutional investors. They are often speculative and include a high degree of risk. Investors can lose all or a substantial amount of their investment. They may be highly illiquid, can engage in leverage and other speculative practices that may increase volatility and the risk of loss, and may be subject to large investment minimums and initial lockups. They involve complex tax structures, tax -inefficient investing and delays in distributing important tax information. Categorically, hedge funds and funds of funds have higher fees and expenses than traditional investments, and such fees and expenses can lower the returns achieved by investors. Funds of funds have an additional layer of fees over and above hedge fund fees that will offset returns. An investment in an exchange -traded fund involves risks similar to those of investing in a broadly based portfolio of equity securities traded on an exchange in the relevant securities market, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock and bond prices. An investment in a target date portfolio is subject to the risks attendant to the underlying funds in which it invests, in these portfolios the funds are the Consulting Group Capital Market funds. A target date portfolio is geared to investors who will retire and/or require income at an approximate year. The portfolio is managed to meet the investor's goals by the pre -established year or "target date." A target date portfolio will transition its invested assets from a more aggressive portfolio to a more conservative portfolio as the target date draws closer. An investment in the target date portfolio is not guaranteed at anytime, including, before or after the target date is reached. Managed futures investments are speculative, involve a high degree of risk, use significant leverage, are generally illiquid, have substantial charges, subject investors to conflicts of interest, and are appropriate only for the risk capital portion of an investor's portfolio. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. Managed Futures are complex and not appropriate for all investors. Rebalancing does not protect against a loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Buying, selling, and transacting in Bitcoin or other digital assets, and related funds and products, is highly speculative and may result in a loss of the entire investment. Risks and considerations include but are not limited to: - Bitcoin and other digital assets have only been in existence for a short period of time and historical trading prices for Bitcoin and other digital assets have been highly volatile . The price of Bitcoin and other digital assets could decline rapidly, and investors could lose their entire investment. - Certain digital asset funds and products, including Bitcoin funds and products, allow investors to invest on a more frequent basis than investors may withdraw from the fund or product, and interests in such funds or products are generally not freely transferrable. This means that, particularly given the volatility of digital assets, including Bitcoin, an investor will have to bear any losses with respect to its investment for an extended period of time and will not be able to react to changes in the price of the digital asset once invested (for example, by seeking to withdraw) as quickly as when making the decision to invest. Such digital asset funds and products, including Bitcoin funds and products, are intended only for persons who are able to bear the economic risk of investment and who do not need liquidity with respect to their investments. - Given the volatility in the price of Bitcoin and other digital assets, the net asset value of a fund or product that invests in such assets at the time an investor's subscription for interests in the fund or product is accepted may be significantly below or above the net asset value of the product or fund at the time the investor submitted subscription materials. - Certain digital assets, apart from Bitcoin, are not intended to function as currencies but are intended to have other use cases. These other digital assets may be subject to some or all of the risks and considerations set forth herein, as well as additional risks applicable to such other digital assets. Buyers, sellers and users of such other digital assets should thoroughly familiarize themselves with such risks and considerations before transacting in such other digital assets. - The value of Bitcoin and other digital assets may be negatively impacted by future legal and regulatory developments, including but not limited to increased regulation of Bitcoin or such other digital assets. Any such developments may make Bitcoin or such other digital assets less valuable, impose additional burdens and expenses on a fund or product investing in such assets or imoact the ability Grays tone ConsultingsM DISCLOSURES Page 16 WEALTH MANAGEMENT Morgan Stanley of such a fund or product to continue to operate, which may materially decrease the value of an investment therein. - Due to the new and evolving nature of digital currencies and the absence of comprehensive guidance, many significant aspects of the tax treatment of digital assets including Bitcoin are uncertain. Prospective investors should consult their own tax advisors concerning the tax consequences to them of the purchase, ownership and disposition of Bitcoin and other digital assets, directly or indirectly through a fund or product, under U.S. federal income tax law, as well as the tax law of any relevant state, local or other jurisdiction. - Over the past several years, certain Bitcoin exchanges have experienced failures or interruptions in service due to fraud, security breaches, operational problems or business failure. Such events in the future could impact any fund's or product's ability to transact in Bitcoin if the fund or product relies on an impacted exchange and may also materially decrease the price of Bitcoin, thereby impacting the value of your investment, regardless of whether the fund or product relies on such an impacted exchange. - Although any digital asset product, including a Bitcoin-related product, and its service providers have in place significant safeguards against loss, theft, destruction and inaccessibility, there is nonetheless a risk that some or all of a product's digital asset, including Bitcoin, could be permanently lost, stolen, destroyed or inaccessible by virtue of, among other things, the loss or theft of the "private keys" necessary to access a product's digital asset, including Bitcoin. - Investors in funds or products investing or transacting in Bitcoin and/or other digital assets may not benefit to the same extent (or at all) from "airdrops" with respect to, or "forks" in, the Bitcoin (or other relevant digital asset's) blockchain, compared to investors who hold Bitcoin (or such other relevant digital asset) directly instead of through a fund or product. Additionally, a "fork" in the Bitcoin blockchain could materially decrease the price of Bitcoin. - Digital assets such as Bitcoin or other digital asset product is/are not legal tender, and is not backed by any government, corporation or other identified body, other than with respect to certain digital currencies that certain governments are or may be developing now or in the future (of which Bitcoin is not one). No law requires companies or individuals to accept digital currency as a form of payment (except, potentially, with respect to digital currencies developed by certain governments where such acceptance may be mandated). Instead, other than as described in the preceding sentences, Bitcoin's and other digital asset products' use is limited to businesses and individuals that are willing to accept them . If no one were to accept digital currencies, Bitcoin and other virtual currency products would very likely become worthless. - Platforms that buy and sell Bitcoin or other digital assets can be hacked, and some have failed. In addition, like the platforms themselves, digital wallets can be hacked, and are subject to theft and fraud. As a result, like other investors have, you can lose some or all of your holdings of digital assets, including Bitcoin. - Unlike US banks and credit unions that provide certain guarantees of safety to depositors, there are no such safeguards provided to digital assets, such as Bitcoin, held in digital wallets by their providers or by regulators. - Due to the anonymity Bitcoin and other digital assets offer, it has known use in illegal activity, including drug dealing, money laundering, human trafficking, sanction evasion and other forms of illegal commerce. Abuses could impact legitimate consumers and speculators; for instance, law enforcement agencies could shut down or restrict the use of platforms and exchanges, limiting or shutting off entirely the ability to use or trade Bitcoin or other digital asset products. - Bitcoin and other digital assets may not have an established track record of credibility and trust. Further, any performance data relating to Bitcoin, Bitcoin-related products or other digital asset products may not be verifiable as pricing models are not uniform. - Investors should be aware of the potentially increased risks of transacting in digital assets, including Bitcoin, relating to the risks and considerations, including fraud, theft, and lack of legitimacy, and other aspects and qualities of digital assets, before transacting in such assets. - The exchange rate of Bitcoin or other virtual currency products versus the USD historically has been very volatile and the exchange rate could drastically decline. For example, the exchange rate of Bitcoin versus the USD has in the past dropped more than 5o% in a single day. Bitcoin may be affected by such volatility as well. - Digital asset exchanges have limited operating and performance histories and are not regulated with the same controls or customer protections available to more traditional exchanges transacting equity, debt, and other assets and securities. There is no assurance that a person/exchange who currently accepts a digital asset as payment will continue to do so in the future. DISCLOSURES Page 17 Graystone ConsultingsM WEALTH MANAGEMENT Morgan Stanley - The regulatory framework of digital assets is evolving, and in some cases uncertain, and digital assets themselves may not be governed and protected by applicable securities regulators and securities laws, including, but not limited to, Securities Investor Protection Corporation coverage, or other regulatory regimes. - Morgan Stanley Smith Barney LLC or its affiliates (collectively, "Morgan Stanley") may currently, or in the future, offer or invest in digital asset products, services or platforms. The proprietary interests of Morgan Stanley may conflict with your interests. - The foregoing list of considerations and risks are not and do not purport to be a complete enumeration or explanation of the risks involved in an investment in the any product or fund investing or trading in Bitcoin and/or other digital assets. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. Past performance is no guarantee of future results. Actual results may vary. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley"), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanley.com/disclosures/dol. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. Annuities and insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC's licensed insurance agency affiliates. Indices are unmanaged and investors cannot directly invest in them. They are not subject to expenses or fees and are often comprised of securities and other investment instruments the liquidity of which is not restricted. A particular investment product may consist of securities significantly different than those in any index referred to herein. Composite index results are shown for illustrative purposes only, generally do not represent the performance of a specific investment, may not, for a variety of reasons, be an appropriate comparison or benchmark for a particular investment and may not necessarily reflect the actual investment strategy or objective of a particular investment. Consequently, comparing an investment to a particular index may be of limited use. This material is not a financial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fiduciary either under the Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of 1986, and any information in this report is not intended to form the primary basis for any investment decision by you, or an investment advice or recommendation for either ERISA or Internal Revenue Code purposes. Morgan Stanley Private Wealth Management will only prepare a financial plan at your specific request using Private Wealth Management approved financial planning signature. We may act in the capacity of a broker or that of an advisor. As your broker, we are not your fiduciary and our interests may not always be identical to yours. Please consult with your Private Wealth Advisor to discuss our obligations to disclose to you any conflicts we may from time to time have and our duty to act in your best interest. We may be paid both by you and by others who compensate us based on what you buy. Our compensation, including that of your Private Wealth Advisor, may vary by product and over time. Investment and services offered through Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC, Member SIPC. For index, indicator and survey definitions referenced in this report please visit the following: https://www.morganstanley.com/wealth-investmentsolutions/wmir-definitions GLOBAL INVESTMENT COMMITTEE (GIC) ASSET ALLOCATION MODELS: The Asset Allocation Models are created by Morgan Stanley Wealth Management's GIC. HYPOTHETICAL MODEL PERFORMANCE (GROSS): Hypothetical model performance results do not reflect the investment or performance of an actual portfolio following a GIC Strategy, but simply reflect actual historical performance of selected indices on a real-time basis over the specified period of time representing the GIC's strategic and tactical allocations as of the date of this report. The past performance shown here is simulated performance based on benchmark indices, not investment results from an actual portfolio or actual trading. There can be large differences between hypothetical and actual performance results achieved by a particular asset allocation or trading strategy. Hypothetical performance results do not represent actual trading and are generally designed with the benefit of hindsight. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client -specific factors (such as investment vehicle selection, timing of contributions and withdrawals, restrictions and rebalancing schedules). Clients would not necessarily have obtained the performance results shown here if they had invested in accordance with anv Grays tone ConsukingTM DISCLOSURES Page 18 v otl rD N —h In 0 WEALTH MANAGEMENT Morgan Stanley GIC Asset Allocation Model for the periods indicated. Despite the limitations of hypothetical performance, these hypothetical performance results allow clients and Financial Advisors to obtain a sense of the risk/return trade-off of different asset allocation constructs. The hypothetical performance results in this report are calculated using the returns of benchmark indices for the asset classes, and not the returns of securities, fund or other investment products. Models may contain allocations to Hedge Funds, Private Equity and Private Real Estate. The benchmark indices for these asset classes are not issued on a daily basis. When calculating model performance on a day for which no benchmark index data is issued, we have assumed straight line growth between the index levels issued before and after that date. FEES REDUCETHE PERFORMANCE OF ACTUAL ACCOUNTS: None of the fees or other expenses (e.g. commissions, mark-ups, mark-downs, fees) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models. The GIC Asset Allocation Models and any model performance included in this presentation are intended as educational materials. Were a client to use these models in connection with investing, any investment decisions made would be subject to transaction and other costs which, when compounded over a period of years, would decrease returns. Information regarding Morgan Stanley's standard advisory fees is available in the Form ADV Part 2, which is available at www.morganstanley.com/adv. The following hypothetical illustrates the compound effect fees have on investment returns: For example, if a portfolio's annual rate of return is 15% for 5 years and the account pays 5o basis points in fees per annum, the gross cumulative five-year return would be ioi.i%and the five-year return net of fees would be 96.8%. Fees and/or expenses would apply to clients who invest in investments in an account based on these asset allocations, and would reduce clients' returns. The impact of fees and/or expenses can be material. Variable annuities are long-term investments designed for retirement purposes and may be subject to market fluctuations, investment risk, and possible loss of principal. All guarantees, including optional benefits, are based on the financial strength and claims -paying ability of the issuing insurance company and do not apply to the underlying investment options. Optional riders may not be able to be purchased in combination and are available at an additional cost. Some optional riders must be elected at time of purchase. Optional riders may be subject to specific limitations, restrictions, holding periods, costs, and expenses as specified by the insurance company in the annuity contract. If you are investing in a variable annuity through a tax -advantaged retirement plan such as an IRA, you will get no additional tax advantage from the variable annuity. Under these circumstances, you should only consider buying a variable annuity because of its other features, such as lifetime income payments and death benefits protection. Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, if taken prior to age 5914 may be subject to a io%federal income tax penalty. Early withdrawals will reduce the death benefit and cash surrender value. Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment. Ultrashort-term fixed income asset class is comprised of fixed income securities with high quality, very short maturities. They are therefore subject to the risks associated with debt securities such as credit and interest rate risk. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Individual MLPs are publicly traded partnerships that have unique risks related to their structure. These include, but are not limited to, their reliance on the capital markets to fund growth, adverse ruling on the current tax treatment of distributions (typically mostly tax deferred), and commodity volume risk. The potential tax benefits from investing in MLPs depend on their being treated as partnerships for federal income tax purposes and, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV, and, as a result, the MLP fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. Physical precious metals are non-regulated products. Precious metals are speculative investments, which may experience short-term and long term price volatility. The value of precious metals investments may fluctuate and may appreciate or decline, depending on market conditions. Unlike bonds and stocks, precious metals do not make interest or dividend payments. Therefore, precious metals may not be appropriate for investors who require current income. Precious metals are commodities that should be safely stored, which may impose additional costs on the investor. REITs investing risks are similar to those associated with direct investments in real estate: property value fluctuations, lack of liquidity, limited diversification and sensitivity to economic factors such as Grays tone Consulting - DISCLOSURES Page 19 WEALTH MANAGEMENT Morgan Stanley interest rate changes and market recessions. Risks of private real estate include: illiquidity; a long-term investment horizon with a limited or nonexistent secondary market; lack of transparency; volatility (risk of loss); and leverage. Principal is returned on a monthly basis over the life of a mortgage-backed security. Principal prepayment can significantly affect the monthly income stream and the maturity of any type of MBS, including standard MBS, CMOs and Lottery Bonds. Asset-backed securities generally decrease in value as a result of interest rate increases, but may benefit less than other fixed-income securities from declining interest rates, principally because of prepayments. Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an investment decision. Credit ratings are subject to change. Duration, the most commonly used measure of bond risk, quantifies the effect of changes in interest rates on the price of a bond or bond portfolio. The longer the duration, the more sensitive the bond or portfolio would be to changes in interest rates. The majority of $25 and moo par preferred securities are "callable" meaning that the issuer may retire the securities at specific prices and dates prior to maturity. Interest/dividend payments on certain preferred issues may be deferred by the issuer for periods of up to 5 to 10 years, depending on the particular issue. The investor would still have income tax liability even though payments would not have been received. Price quoted is per $25 or $i,000 share, unless otherwise specified. Current yield is calculated by multiplying the coupon by par value divided by the market price. The initial interest rate on a floating-rate security may be lower than that of a fixed-rate security of the same maturity because investors expect to receive additional income due to future increases in the floating security's underlying reference rate. The reference rate could be an index or an interest rate. However, there can be no assurance that the reference rate will increase. Some floating-rate securities may be subject to call risk. The market value of convertible bonds and the underlying common stock(s) will fluctuate and after purchase may be worth more or less than original cost. If sold prior to maturity, investors may receive more or less than their original purchase price or maturity value, depending on market conditions. Callable bonds may be redeemed by the issuer prior to maturity. Additional call features may exist that could affect yield. Some $25 or si000 par preferred securities are QDI (Qualified Dividend Income) eligible. Information on QDI eligibility is obtained from third party sources. The dividend income on QDI eligible preferreds qualifies for a reduced tax rate. Many traditional 'dividend paying' perpetual preferred securities (traditional preferreds with no maturity date) are QDI eligible. In order to qualify for the preferential tax treatment all qualifying preferred securities must be held by investors for a minimum period -91 days during a 180 day window period, beginning go days before the ex -dividend date. Companies paying dividends can reduce or cut payouts at any time. Nondiversification: For a portfolio that holds a concentrated or limited number of securities, a decline in the value of these investments would cause the portfolio's overall value to decline to a greater degree than a less concentrated portfolio. The indices selected by Morgan Stanley Wealth Management to measure performance are representative of broad asset classes. Morgan Stanley Wealth Management retains the right to change representative indices at any time. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing does not guarantee a profit or eliminate risk. Not all companies whose stocks are considered to be value stocks are able to turn their business around or successfully employ corrective strategies which would result in stock prices that do not rise as initially expected . Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, the investor should consider his financial ability to continue his purchases through periods of low price levels. This material is disseminated in the United States of America by Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of the Municipal Advisor Rule. This material, or any portion thereof, may not be reprinted, sold or redistributed without the written consent of Morgan Stanley Smith Barney LLC. © 2022 Morgan Stanley Smith Barney LLC. MemberSIPC. DISCLOSURES Page 20 Graystone Consulting v CU of rD N 0lo City of Atlantic Beach General Employees' Pension Capital Markets Returns as of December 31, 2021 U.S. Equity Market % Returns for the Period Ending December 31, 2021 Quarter Year to Date 12 Months Three Years (annualized) Five Years (annualized) Seven Years (annualized) S&P 500 Index Dow Jones Industrial Average Russell 3000 Index Russell 3000 Value Index Russell 3000 Growth Index Russell 1000 Index Russell 1000 Value Index Russell 1000 Growth Index Russell Midcap Index Russell Midcap Value Index Russell Midcap Growth Index Russell 2000 Index Russell 2000 Value Index Russell 2000 Growth Index 11.03 7.87 9.28 7.54 10.89 9.78 7.77 11.64 6.44 8.54 2.85 2.14 4.36 0.01 28.70 20.95 25.66 25.37 25.85 26.46 25.16 27.60 22.58 28.34 12.73 14.82 28.27 2.83 28.70 20.95 25.66 25.37 25.85 26.46 25.16 27.60 22.58 28.34 12.73 14.82 28.27 2.83 26.07 18.49 25.79 17.65 33.21 26.21 17.64 34.07 23.29 19.62 27.46 20.02 17.99 21.16 18.47 15.51 17.97 11.00 24.56 18.43 11.16 25.32 15.10 11.22 19.83 12.02 9.07 14.53 14.93 13.33 14.55 9.71 19.02 14.84 9.73 19.58 12.23 9.96 14.92 10.76 9.45 11.66 S&P 500 Sector % Returns for the Period Ending December 31, 2021 Quarter Real Estate Technology Materials Consumer Staples Utilities Consumer Discretionary Health Care Industrials Energy Financials Communication Services 17.54 16.69 15.20 13.31 12.93 12.84 11.17 8.64 7.97 4.57 (0.01) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis P age 21 Graystone Consulting' rD oti N 00 0 Lk) City of Atlantic Beach General Employees' Pension Capital Markets Returns as of December 31, 2021 Develo .ed Markets E . ui % Returns for the Period Ending December 31, 2021 U.S. Dollar Local Currency Quarter Year o 12 Months DateYears Years Quarter Year to Date 12 Months 3 5 Years Years Regional and Other Multi -Country Indices MSCI EAFE MSCI Europe MSCI Far East MSCI Pacific ex. Japan MSCI The World MSCI World ex. U.S. National Indices MSCI Hong Kong MSCI Ireland MSCI Japan MSCI Singapore 2.69 5.66 (3.88) (0.09) 7.86 3.14 (3.55) 0.61 (3.94) (3.61) 11.26 11.26 13.54 9.55 16.30 16.30 14.90 10.14 1.48 1.48 10.74 8.62 4.68 4.68 9.70 8.31 22.35 22.35 22.32 15.64 12.63 12.63 14.07 9.63 (3.91) (3.91) 3.91 7.09 8.83 8.83 20.18 9.05 2.04 2.04 12.08 8.89 5.47 5.47 3.96 6.67 3.96 6.57 (1.27) (0.49) 8.21 4.28 (3.41) 2.54 (0.85) (3.89) 19.25 19.25 13.89 8.88 23.32 23.32 14.72 9.09 11.48 11.48 12.26 8.36 9.13 9.13 9.00 8.17 24.74 24.74 N/A N/A 19.88 19.88 14.19 8.97 (3.41) 17.09 13.81 7.87 (3.41) 17.09 13.81 7.87 3.78 7.20 20.39 9.44 13.90 8.61 3.67 5.28 Emerging Markets Equity % Returns for the Period Ending December 31, 2021 U.S. Dollar Local Currency Quarter Year to 3 5 Date 12 Months Years Years Quarter Year to Date 12 Months 3 5 Years Years Regional and Other Multi -Country Indices MSCI EM National Indices MSCI China MSCI Malaysia MSCI Taiwan MSCI Thailand (1.24) (2.22) (2.22) 11.32 10.26 (0.84) 0.14 0.14 12.35 10.89 (6.06) (21.64) (21.64) 7.91 9.52 (6.17) (21.58) (21.58) 7.43 9.41 1.80 (6.24) (6.24) (1.61) 2.28 1.30 (2.90) (2.90) (1.34) 0.77 8.48 26.81 26.81 35.35 23.96 7.72 24.87 24.87 30.69 20.23 3.04 (1.12) (1.12) (1.30) 4.22 3.04 (1.12) (1.12) (1.30) 4.22 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 22 Graystone Consulting' City of Atlantic Beach General Employees' Pension Capital Markets Returns as of December 31, 2021 Fixed Income % Returns for the Period Ending December 31, 2021 Quarter Year to Date 12 Months Three Years (annualized) Five Years (annualized) Ten Years (annualized) U.S. Fixed Income 90 -Day T -Bills Barclays Aggregate Barclays Credit Barclays Govt/Credit Barclays Government Barclays High Yield Barclays Intermediate Govt/Credit Barclays Long Govt/Credit Barclays Mortgage Backed Barclays Municipal Global Fixed Income Merrill Lynch Global High Yield Barclays Global Treasury ex. US Barclays Capital Majors ex. U.S. 0.01 0.01 0.22 0.18 0.15 0.69 (0.57) 2.15 (0.37) 0.72 (0.74) (2.19) (1.94) 0.05 (1.54) (1.08) (1.75) (2.27) 5.26 (1.44) (2.52) (1.04) 1.52 1.37 (9.81) (9.58) 0.05 (1.54) (1.08) (1.75) (2.27) 5.26 (1.44) (2.52) (1.04) 1.52 1.37 (9.81) (9.58) 0.96 4.79 7.17 5.50 4.06 8.81 3.86 10.62 3.01 4.73 7.59 1.76 1.20 1.11 3.57 5.05 3.99 3.07 6.28 2.91 7.39 2.50 4.17 5.82 2.76 2.27 0.60 2.90 4.45 3.13 2.14 6.82 2.38 5.72 2.28 3.72 6.50 0.99 0.05 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 23 Graystone Consulting' W Cu Oti co 0 0 up W Graystone Consulting- A business of Morgan Stanley Police Officers' Pension Plan Performance Reports Page 24 Graystone Consulting iL rD UJ 0 Lt) City of Atlantic Beach Police Officers' Pension Total Fund - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 24.0 18.0 E B 12.0 v �i 6.0 0.0 Manager 14.0 12.0 10.0 8.0 " 6.0 E a 4.0 . . O'C Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance 2.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund 4.30 4.30 14.84 15.77 11.20 9.40 9.36 8.78 04/01/2010 0.0 Policy Index 4.30 4.30 12.62 14.88 10.44 8.35 9.24 8.73 Differences 0.00 0.00 2.22 0.89 0.76 1.05 0.12 0.05 -2.0 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception -4.0 Quarter YTD Year Years Years Years Years Inception Date -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Risk (Standard Deviation %) ■ Total Fund 0 Policy Index . 90 -Day T -Bills 12.0 14.0 -4.0 Total Fund 04/01/2010 Beginning Market Value 15,462 15,462 14,086 10,333 8,753 6,131 8,074 7,314 Net Contributions 600 600 600 800 1,674 3,675 2,538 2,625 Fees/Expenses -16 -16 -62 -149 -223 -297 -383 -432 Income 183 183 367 884 1,352 1,596 2,010 2,261 Gain/Loss 492 492 1,730 4,853 5,165 5,615 4,481 4,954 Ending Market Value 16,721 16,721 16,721 16,721 16,721 16,721 16,721 16,721 Modern Portfolio Statistics - 7 Years Return Standard Beta Maximum Up Down Alpha Sharpe Deviation Drawdown Capture Capture Ratio R -Squared Total Fund 9.40 10.97 1.13 -16.85 114.05 114.81 -0.01 0.80 Policy Index 8.35 9.41 1.00 -14.67 100.00 100.00 0.00 0.81 0.95 1.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 25 Graystone Consulting' rD W NJ 0 W City of Atlantic Beach Police Officers' Pension Modern Portfolio Statistics - Since Inception as of December 31, 2021 Return Standard Deviation Beta Maximum Up Down Drawdown Capture Capture Alpha Sharpe Ratio R -Squared Inception Date Total Fund 8.78 9.42 Policy Index 8.73 8.99 0.99 -16.85 99.51 97.90 0.17 0.89 (I.89 04/01/2010 1.00 -14.67 100.00 100.00 0.00 0.92 1.00 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 26 Graystone Consulting' City of Atlantic Beach Police Officers' Pension Asset Allocation Compliance As of December 31, 2021 Large Cap Equity $7,059.6K (42.2%) 20.0% - 50.0% 33% Mid-, Small, or Smid- Cap Equity $2,339.7K (14.0%) 5.0% -20.0/o 10% International Equity $2,204.6K (13.2%) 10.0%- 20.0% • 15% Fixed Income $3,732.2K (22.3%) 20.0% - 40.0% I 130% Alternative Investments $1,372.8K (82%) 1.0% - 11.0% 1 6%I Cash & Equivalents 12.0K(0.1%) 0.0% - 11.0% 1 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ❑ Policy ■ Target , In Policy 1 Outside Policy Graystone The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. ConsultingSM Page 27 v oti rD UJ 0LSD W City of Atlantic Beach Police Officers' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) OA Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Total Fund 16,720,975 100.00 4.30 14.84 14.84 15.77 11.20 9.40 9.36 8.78 04/01/2010 Total Fund (net) Policy Index 4.20 14.37 14.37 15.33 10.78 8.95 8.88 8.32 4.30 12.62 12.62 14.88 10.44 8.35 9.24 8.73 Domestic Equity JP Morgan - Equity Income JP Morgan - Equity Income (net) Russell 1000 Value Columbia Mgmt - Select LC Grwth Columbia Mgmt - Select LC Grwth (net) Russell 1000 Gr Pioneer - Large. Cap Growth Pioneer - Large Cap Growth (net) Russell 1000 Gr Vanguard - S&P 500 Index ETF Vanguard - S&P 500 Index ETF (net) S&P 500 Total Return Invesco - S&P 500 Equal Weight ETF Invesco - S&P 500 Equal Weight ETF (net) S&P 500 Equal Wtd S&P 500 Total Return Boston - SMID Value Boston - SMID Value (net) Russell Midcap Growth Riverbridge - SMID Growth Riverbridge - SMID Growth (net) Russell 2000 Gr 2,903,162 17.36 8.94 8.80 7.77 26.44 25.78 25.16 26.44 25.78 25.16 18.89 18.28 17.64 13.90 13.30 11.16 12.75 12.14 9.73 13.65 13.01 12.97 11.89 11.26 11.70 04/01/2010 1,135,250 6.79 0.74 10.16 10.16 31.04 24.09 16.40 17.33 15.64 04/01/2010 0.61 9.60 9.60 30.38 23.46 15.80 16.67 15.00 11.64 27.60 27.60 34.07 25.32 19.58 19.79 17.94 1,424,553 8.52 10.44 25.02 25.02 28.89 21.51 N/A N/A 20.14 09/01/2016 10.30 24.39 24.39 28.23 20.88 N/A N/A 19.52 11.64 27.60 27.60 34.07 25.32 N/A N/A 23.86 940,808 5.63 11.46 28.74 28.74 N/A N/A N/A N/A 25.33 09/01/2019 11.46 28.74 28.74 N/A N/A N/A N/A 25.33 11.03 28.70 28.70 N/A N/A N/A N/A 25.24 655,801 3.92 8.94 N/A N/A N/A N/A N/A N/A 8.70 06/01/2021 8.89 N/A N/A N/A N/A N/A N/A 8.60 9.01 N/A N/A N/A N/A N/A N/A 8.92 11.03 N/A N/A N/A N/A N/A N/A 14.28 1,367,279 8.18 4.86 4.69 2.85 972,461 5.82 1.28 1.12 0.01 28.69 27.87 12.73 6.16 5.48 2.83 28.69 27.87 12.73 6.16 5.48 2.83 20.41 19.65 27.46 27.83 27.02 21.16 10.39 9.68 19.83 21.30 20.53 14.53 10.14 9.45 14.92 16.08 15.35 11.66 11.59 10.89 16.63 16.83 16.09 14.14 10.09 04/01/2010 9.41 15.37 16.27 04/01/2010 15.55 13.36 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 28 Graystone Consulting' v oti rD W U1 0LSD W City of Atlantic Beach Police Officers' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date International Equity Lazard - International Strategic Equity Lazard - International Strategic Equity (net) MSCI EAFE Net Vanguard - Total International Stock ETF Vanguard - Total International Stock ETF (net) FTSE Global All Cap x US (Net) 1,166,537 6.98 -0.78 - 0.78 2.69 6.02 6.02 N/A N/A N/A N/A 11.11 09/01/2019 6.02 6.02 N/A N/A N/A N/A 11.11 11.26 11.26 N/A N/A N/A N/A 13.13 1,038,098 6.21 2.04 8.98 8.98 N/A N/A N/A N/A 13.73 09/01/2019 2.04 8.98 8.98 N/A N/A N/A N/A 13.73 1.74 8.69 8.69 N/A N/A N/A N/A 13.77 Fixed Income Sage Advisory - Int. Fixed Income Sage Advisory - Int. Fixed Income (net) BC CR INTM TR AMG Beutel Goodman- Core Plus Fixed Income AMG Beutel Goodman- Core Plus Fixed Income (net) Barclays Aggregate Goldman Sachs - Emerging Markets Debt Goldman Sachs - Emerging Markets Debt (net) JPM EMBI Global 2,580,438 15.43 -0.47 - 0.59 - 0.55 922,314 5.52 -0.12 -0.12 0.01 229,467 1.37 -1.12 - 1.12 0.02 -0.88 -0.88 4.69 3.42 2.91 2.81 3.67 - 1.34 -1.34 4.19 2.93 2.40 2.33 3.20 - 1.03 -1.03 5.09 3.77 3.34 3.53 3.91 0.20 0.20 N/A N/A N/A N/A 2.47 0.20 0.20 N/A N/A N/A N/A 2.47 -1.54 -1.54 N/A N/A N/A N/A 2.30 04/01/2010 09/01/2019 - 3.05 -3.05 N/A N/A N/A N/A 2.36 09/01/2019 - 3.05 -3.05 N/A N/A N/A N/A 2.36 - 1.51 -1.51 N/A N/A N/A N/A 2.55 Alternative Investments Tortoise - MLP & Pipeline Fund Tortoise - MLP & Pipeline Fund (net) Alerian MLP Index Principal - REIT Principal - REIT (net) MSCI REIT Gross 672,642 4.02 0.89 0.89 0.55 40.81 40.81 N/A N/A N/A N/A 1.61 09/01/2019 40.81 40.81 N/A N/A N/A N/A 1.61 40.17 40.17 N/A N/A N/A N/A -1.48 700,156 4.19 14.79 40.99 40.99 N/A N/A N/A N/A 40.90 12/01/2020 14.62 40.15 40.15 N/A N/A N/A N/A 40.08 16.31 43.06 43.06 N/A N/A N/A N/A 43.40 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 29 Graystone Consulting' City of Atlantic Beach Police Officers' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Cash & Equivalents Deposit & Disbursement Account 10,921 0.07 CGA - Cash 1,088 0.01 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 30 Graystone Consulting' v Ott rD UJ 0 W City of Atlantic Beach Police Officers' Pension Asset Allocation & Dollar Weighted Performance (IRR) as of December 31, 2021 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 4.23 4.23 14.42 15.31 10.78 9.02 5.08 5.08 03/31/2010 Domestic Equity JP Morgan - Equity Income Columbia Mgmt - Select LC Grwth Pioneer - Large Cap Growth Vanguard - S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Boston - SMID Value Riverbridge - SMID Growth 8.85 0.55 10.27 11.43 8.92 4.67 1.13 8.85 0.55 10.27 11.43 8.92 4.67 1.13 24.91 9.53 24.16 29.97 N/A 28.04 4.84 18.50 30.31 28.21 N/A N/A 24.79 27.91 13.68 23.97 20.63 N/A N/A 13.46 20.52 11.88 11.13 N/A N/A N/A 10.70 13.97 12.06 15.12 N/A N/A N/A 12.55 16.04 10.73 13.22 19.45 0.00 8.67 10.68 15.59 03/31/2010 03/31/2010 08/31/2016 09/30/2019 05/31/2021 03/31/2010 03/31/2010 International Equity Lazard - International Strategic Equity Vanguard - Total International Stock ETF - 0.76 2.03 - 0.76 2.03 6.50 N/A 9.36 N/A N/A N/A N/A N/A N/A N/A 801.10 09/30/2019 0.00 09/27/2019 Fixed Income Sage Advisory - Int. Fixed Income AMG Beutel Goodman- Core Plus Fixed Income Goldman Sachs - Emerging Markets Debt - 0.58 - 0.11 -1.12 - 0.58 - 0.11 -1.12 -1.33 0.21 -3.05 4.14 N/A N/A 3.00 N/A N/A 2.67 N/A N/A 2.39 N/A N/A 3.13 0.00 0.00 03/31/2010 09/30/2019 09/30/2019 Alternative Investments Tortoise - MLP & Pipeline Fund Principal - REIT 0.89 14.67 0.89 14.67 42.16 N/A 39.74 N/A N/A N/A N/A N/A N/A N/A 141.61 09/30/2019 39.67 11/30/2020 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. P age 31 Graystone Consulting' 00 w ro co 0 lD w Graystone Consulting- A business of Morgan Stanley General Employees' Pension Plan Performance Reports Page 32 Graystone Consulting Ott rD UJ LD 0 LDW City of Atlantic Beach General Employees' Pension Total Fund - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 24.0 18.0 E B 12.0 v 6.0 0.0■ Manager 14.0 12.0 10.0 8.0 v6.0 E a 4.0 ■ i Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance 2.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund 4.24 4.24 14.75 15.86 11.16 9.52 9.61 8.89 03/01/2010 0.0 Policy Index 4.30 4.30 12.62 14.88 10.44 8.35 9.24 9.02 Differences -0.06 -0.06 2.13 0.98 0.72 1.17 0.37 -0.13 -2.0 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception -4.0 Quarter YTD Year Years Years Years Years Inception Date -2.0 0.0 ■ Total Fund 2.0 4.0 6.0 8.0 10.0 Risk (Standard Deviation %) 0 Policy Index . 90 -Day T -Bills 12.0 14.0 16.0 -4.0 Total Fund 03/01/2010 Beginning Market Value 26,574 26,574 24,216 17,999 16,463 11,422 11,138 445 Net Contributions -138 -138 -138 -137 54 2,184 3,510 13,384 Fees/Expenses -28 -28 -107 -257 -402 -547 -710 -813 Income 306 306 621 1,527 2,366 2,791 3,539 4,054 Gain/Loss 819 819 2,941 8,401 9,053 11,682 10,055 10,463 Ending Market Value 27,533 27,533 27,533 27,533 27,533 27,533 27,533 27,533 Modern Portfolio Statistics - 7 Years Return Standard Beta Maximum Up Deviation Drawdown Capture Down Alpha Capture Sharpe Ratio R -Squared Total Fund 9.52 11.10 1.15 -17.05 115.42 Policy Index 8.35 9.41 1.00 -14.67 100.00 116.09 0.01 100.00 0.00 0.80 0.81 0.95 1.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 33 Graystone Consulting' rD 0 0 LID City of Atlantic Beach General Employees' Pension Modern Portfolio Statistics - Since Inception as of December 31, 2021 Return Standard Deviation Beta Maximum Up Down Drawdown Capture Capture Alpha Sharpe Ratio R -Squared Inception Date Total Fund 8.89 10.44 1.12 -17.05 107.69 116.41 -1.03 0.82 0.93 03/01/2010 Policy Index 9.02 9.00 1.00 -14.67 100.00 100.00 0.00 0.95 1.00 03/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 34 Graystone Consulting' City of Atlantic Beach General Employees' Pension Asset Allocation Compliance As of December 31, 2021 Large Cap Equity 511,605.2K (42.1%) 20.0% - 50.0% Mid-, Small, or Smid- Cap Equity $3,810.6K (13.8%) 5.0% -20.0/o 10% International Equity $3,648.9K (13.2%) 10.0%- 20.0% • 15% Fixed Income $6,242.2K (22.7%) 20.0% - 40.0% I 130% Alternative Investments $2,225.7K (8.1°/o) 1.0%-11.0 % 1 6%1 Cash & Equivalents 12.5K (0.0%) 0.0% - 11.0% 1 I 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ❑ Policy ■ Target , In Policy 1 Outside Policy Graystone The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. ConsultingSM Page 35 -73 v cna rD N 0 W City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Total Fund 27,532,897 100.00 4.24 14.75 14.75 15.86 11.16 9.52 9.61 8.89 04/01/2010 Total Fund (net) Policy Index 4.14 14.28 14.28 15.42 10.73 9.05 9.11 8.40 4.30 12.62 12.62 14.88 10.44 8.35 9.24 8.73 Domestic Equity JP Morgan - Equity Income JP Morgan - Equity Income (net) Russell 1000 Value Columbia Mgmt - Select LC Grwth Columbia Mgmt - Select LC Grwth (net) Russell 1000 Gr Pioneer - Targe Cap Growth Pioneer - Large Cap Growth (net) Russell 1000 Gr Vanguard - S&P 500 Index ETF Vanguard - S&P 500 Index ETF (net) S&P 500 Total Return Invesco - S&P 500 Equal Weight ETF Invesco - S&P 500 Equal Weight ETF (net) S&P 500 Equal Wtd S&P 500 Total Return Boston - SMID Value Boston - SMID Value (net) Russell Midcap Growth Riverbridge - SMID Growth Riverbridge - SMID Growth (net) Russell 2000 Gr 4,724,499 17.16 8.95 8.81 7.77 26.51 25.85 25.16 26.51 25.85 25.16 18.95 18.33 17.64 13.95 13.36 11.16 12.78 12.16 9.73 13.59 12.95 12.97 11.83 11.21 11.70 04/01/2010 1,874,235 6.81 0.63 10.03 10.03 31.01 24.14 16.34 16.97 15.51 04/01/2010 0.50 9.47 9.47 30.35 23.51 15.75 16.33 14.88 11.64 27.60 27.60 34.07 25.32 19.58 19.79 17.94 2,353,361 8.55 10.36 24.72 24.72 28.77 21.46 N/A N/A 20.09 09/01/2016 10.22 24.09 24.09 28.11 20.83 N/A N/A 19.48 11.64 27.60 27.60 34.07 25.32 N/A N/A 23.86 1,573,835 5.72 11.45 28.68 28.68 N/A N/A N/A N/A 25.30 09/01/2019 11.45 28.68 28.68 N/A N/A N/A N/A 25.30 11.03 28.70 28.70 N/A N/A N/A N/A 25.24 1,079,302 3.92 8.93 N/A N/A N/A N/A N/A N/A 8.69 06/01/2021 8.88 N/A N/A N/A N/A N/A N/A 8.59 9.01 N/A N/A N/A N/A N/A N/A 8.92 11.03 N/A N/A N/A N/A N/A N/A 14.28 2,246,412 8.16 4.79 28.59 28.59 20.50 10.40 10.02 11.52 4.63 27.78 27.78 19.74 9.70 9.34 10.82 2.85 12.73 12.73 27.46 19.83 14.92 16.63 1,564,222 5.68 0.85 0.69 0.01 6.30 5.62 2.83 6.30 5.62 2.83 27.99 27.18 21.16 21.47 20.71 14.53 16.05 15.32 11.66 16.80 16.06 14.14 10.04 04/01/2010 9.36 15.37 16.29 04/01/2010 15.57 13.36 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 36 Graystone Consulting' -73 v oti rD w o_ UJ City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date International Equity Lazard - International Strategic Equity Lazard - International Strategic Equity (net) MSCI EAFE Net Vanguard - Total International Stock ETF Vanguard - Total International Stock ETF FTSE Global All Cap x US (Net) 1,931,663 1,717,280 7.02 - 0.81 - 0.81 2.69 6.24 2.01 2.01 1.74 5.99 5.99 11.26 8.92 8.92 8.69 5.99 5.99 11.26 N/A N/A N/A 8.92 N/A 8.92 N/A 8.69 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 11.10 11.10 13.13 09/01/2019 N/A 13.72 09/01/2019 N/A 13.72 N/A 13.77 Fixed Income Sage Advisory - Int. Fixed Income 4,304,992 15.64 -0.48 -0.89 -0.89 4.73 3.45 2.93 N/A 2.62 05/01/2013 Sage Advisory - Int. Fixed Income (net) BC CR INTM TR -0.59 -1.34 -1.34 4.23 2.96 2.43 N/A 2.17 -0.55 -1.03 -1.03 5.09 3.77 3.34 N/A 2.98 AMG Beutel Goodman - Core Plus Fixed Income 1,513,561 5.50 -0.12 0.21 0.21 N/A N/A N/A N/A 2.47 09/01/2019 AMG Beutel Goodman - Core Plus Fixed Income (net) -0.12 0.21 0.21 N/A N/A N/A N/A 2.47 Barclays Aggregate 0.01 -1.54 -1.54 N/A N/A N/A N/A 2.30 Goldman Sachs - Emerging Markets Debt Goldman Sachs - Emerging Markets Debt (net) JPM EMBI Global 423,597 1.54 -1.12 -3.05 -3.05 N/A N/A N/A N/A 2.10 09/01/2019 - 1.12 -3.05 -3.05 N/A N/A N/A N/A 2.10 0.02 -1.51 -1.51 N/A N/A N/A N/A 2.55 Alternatives Tortoise - MLP & Pipeline Tortoise - MLP & Pipeline (net) Alerian MLP Index Principal - REIT Principal - REIT (net) MSCI REIT Gross 1,104,935 1,120,748 4.01 0.89 0.89 0.55 4.07 14.77 14.60 16.31 40.81 40.81 40.17 41.03 40.18 43.06 40.81 40.81 40.17 N/A N/A N/A 41.03 N/A 40.18 N/A 43.06 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.61 1.61 -1.48 09/01/2019 N/A 40.94 12/01/2020 N/A 40.12 N/A 43.40 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 37 Graystone Consulting' rD 0 LIDW City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of December 31, 2021 Allocation Performance(%) Market Value ($) Current Quarter YTD 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Cash & Equivalents Deposit & Disbursement Account 0.00 CGA - Cash 255 0.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 38 Graystone Consulting' 7D cna rD Qn 0 W City of Atlantic Beach General Employees' Pension Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2021 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 4.14 4.14 14.28 15.40 10.72 10.70 7.05 6.70 03/10/2010 Domestic Equity JP Morgan - Equity Income Columbia Mgmt - Select LC Grwth Pioneer - Large Cap Growth Vanguard - S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Boston - SMID Value Riverbridge - SMID Growth 8.80 0.59 10.22 11.45 8.88 4.67 0.69 8.80 0.59 10.22 11.45 8.88 4.67 0.69 24.62 9.17 24.10 30.37 N/A 27.89 4.88 18.34 30.51 28.08 N/A N/A 24.47 27.73 13.45 23.25 20.82 N/A N/A 12.20 20.45 11.66 11.02 N/A N/A N/A 10.38 13.72 12.48 14.83 N/A N/A N/A 12.24 15.64 10.75 13.17 19.47 0.00 8.59 10.17 15.08 03/31/2010 03/31/2010 08/31/2016 09/30/2019 05/31/2021 03/31/2010 03/31/2010 International Equity Lazard - International Strategic Equity Vanguard - Total International Stock ETF - 0.80 2.01 - 0.80 2.01 6.10 N/A 9.64 N/A N/A N/A N/A N/A N/A N/A 0.00 09/30/2019 0.00 09/27/2019 Fixed Income Sage Advisory - Int. Fixed Income AMG Beutel Goodman - Core Plus Fixed Income Goldman Sachs - Emerging Markets Debt - 0.59 - 0.12 - 1.12 - 0.59 - 0.12 - 1.12 - 1.34 0.21 - 2.77 4.22 N/A N/A 2.80 N/A N/A 2.49 N/A N/A N/A N /A N/A 2.68 0.00 0.00 04/30/2013 09/30/2019 09/30/2019 Alternative Investments Tortoise - MLP & Pipeline Principal - REIT 1.00 14.60 1.00 14.60 42.22 N/A 39.68 N/A N/A N/A N/A N/A N/A N/A The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its. accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 39 173.58 09/30/2019 39.62 11/30/2020 Graystone Consulting' cra ro CT 0 l0 W Graystone Consulting- A business of Morgan Stanley Manager Performance Analysis Page 40 Graystone Consulting rD 0 LIDW City of Atlantic Beach General Employees' Pension JP Morgan - Equity Income - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 40.0 30.0 F, v 20.11 ix 10.0 0.0 Manager 18.0 15.0 12 0 9.0 v Z 6.0 pa 3.0 r Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception 0.0 Quarter YTD Year Years Years Years Years Inception Date JP Morgan - Equity Income 8.95 8.95 26.51 18.95 13.95 12.78 13.59 11.83 04/01/2010 Russell 1000 Value 7.77 7.77 25.16 17.64 11.16 9.73 12.97 11.70 -3.0 Differences 1.18 1.18 1.35 1.31 2.79 3.05 0.62 0.13 Historic Asset Growth -0 5 -(.ii -3.11 0.0 3.0 6.0 9.0 12.0 Risk (Standard Deviation %) • JP Morgan - Equity Income Q Russell 1000 Value . 90 -Day T -Bills 15.0 18.0 21.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date JP Morgan - Equity Income 04/01/2010 Beginning Market Value 4,342 4,342 3,201 2,339 2,329 3,152 1,559 1,346 Net Contributions - - 635 743 498 -755 230 397 Fees/Expenses -6 -6 -21 -49 -74 -105 -133 -147 Income 26 26 96 244 378 496 578 625 Gain/Loss 362 362 814 1,448 1,594 1,937 2,491 2,504 Ending Market Value 4,724 4,724 4,724 4,724 4,724 4,724 4,724 4,724 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Deviation Drawdown Capture Capture Sharpe R -Squared Ratio Inception Date JP Morgan - Equity Income 11.83 14.52 0.97 -24.18 99.13 97.58 0.49 Russell 1000 Value 11.71 14.50 1.00 -26.73 100.00 100.00 0.00 0.81 0.80 0.94 1.00 04/01/2010 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. P age 41 Grays tone Consulting' sv rD 0.0 00 o_ LID LA) City of Atlantic Beach General Employees' Pension Columbia - Large Cap Growth - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 60.0 45.0 F, va 30.0 15.0 0.0 Manager 28.0 24.0 20.0 .-. 16.0 12.0 a 8.0 4.0 . 1 1 1 Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date 0.0 Columbia Mgmt - Select LC Grwth 0.63 0.63 10.03 31.01 24.14 16.34 16.97 15.51 04/01/2010 Russell 1000 Gr 11.64 11.64 27.60 34.07 25.32 19.58 19.79 17.94 -4.0 Differences -11.01 -11.01 -17.57 -3.06 -1.18 -3.24 -2.82 -2.43 Historic Asset Growth -8.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) • Columbia Mgmt - Select LC Grwth 0 Russell 1000 Gr . 90 -Day T -Bills 20.0 24.0 28.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Columbia Mgmt - Select LC Grwth 04/01/2010 Beginning Market Value 1,896 1,896 1,854 916 843 5,894 1,547 1,347 Net Contributions -33 -33 -143 -143 -333 -5,646 -2,243 -2,212 Fees/Expenses -3 -3 -10 -23 -34 -77 -106 -121 Income 1 1 5 17 27 51 81 98 Gain/Loss 12 12 168 1,107 1,372 1,652 2,596 2,762 Ending Market Value 1,874 1,874 1,874 1,874 1,874 1,874 1,874 1,874 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Deviation Drawdown Capture Capture Sharpe R -Squared Ratio Inception Date Columbia Mgmt - Select LC Grwth 15.51 17.89 1.13 -20.14 102.99 120.48 -3.85 Russell 1000 Gr 17.96 14.64 1.00 -15.98 100.00 100.00 0.00 0.87 1.17 0.86 1.00 04/01/2010 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 42 Grays tone ConsultingsM v rD P LD 0 W City of Atlantic Beach General Employees' Pension Pioneer - Large Cap Growth - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 60.0 45.0 F, a30.0 v ai 15.0 0.0 Manager 35.0 30.0 25.0 20.0 F 15.0 p a 10.0 5.0 Current Fiscal 1 Quarter YTD Year Annualized Performance 3 5 Since Years Years Inception Current Fiscal Quarter YTD 1 3 5 Since Inception Year Years Years Inception Date 0.0 Pioneer - Large Cap Growth 10.36 10.36 Russell 1000 Gr 11.64 11.64 Differences -1.28 -1.28 Historic Asset Growth 24.72 28.77 21.46 20.09 09/01/2016 27.60 34.07 25.32 23.86 -5.0 -2.88 -5.30 -3.86 -3.77 -10.0 -9.0 -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 Risk (Standard Deviation %) Pioneer -Large Cap Growth Q Russell 1000 Gr . 90 -Day T -Bills 15.0 18.0 21.0 24.0 Current Fiscal Quarter YTD 1 3 5 Since Inception Year Years Years Inception Date Pioneer - Large Cap Growth Beginning Market Value 2,135 2,135 Net Contributions - - Fees/Expenses -3 -3 Income 4 4 Gain/Loss 217 217 Ending Market Value 2,353 2,353 Modern Portfolio Statistics 09/01/2016 1,896 1,119 914 911 - - - - -11 -25 -37 -38 17 49 79 83 450 1,211 1,398 1,398 2,353 2,353 2,353 2,353 Return Standard Beta Maximum Up Down Alpha Deviation Drawdown Capture Capture Sharpe R -Squared Ratio Inception Date Pioneer - Large Cap Growth 20.09 Russell 1000 Gr 23.88 14.22 0.86 -17.59 16.04 1.00 -15.98 85.56 86.55 -0.32 100.00 100.00 0.00 1.29 1.36 0.95 1.00 09/01/2016 09/01/2016 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 43 Graystone Consulting' v a, rD u1 0 0 LIDW City of Atlantic Beach General Employees' Pension Vanguard - S&P 500 Index ETF - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 45.0 30.0 36.0 30.0 E y �i 15.0 0.0 24.0 18.0 F E 12.0 Current Fiscal 1 Since # Quarter YTD Year Inception pr> 6.0 Manager Annualized Performance Current Fiscal 1 Since Inception 0.0 Quarter YTD Year Inception Date Vanguard - S&P 500 Index ETF 11.45 11.45 28.68 25.30 09/01/2019 -6.0 S&P 500 Total Return 11.03 11.03 28.70 25.24 Differences 0.42 0.42 -0.02 0.06 Historic Asset Growth -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 Since Inception Risk (Standard Deviation %) Quarter YTD Yeat Inception Date Vanguard - S&P 500 Index ETF 09/01/2019 • Vanguard - S&P 500 Index ETF 0 S&P 500 Total Return Beginning Market Value 1,413 1,413 2,364 - Net Contributions -1 -1 -1,268 -1,324 . 90 -Day T -Bills Fees/Expenses - - - - Income - - - - Gain/Loss 162 162 478 2,897 Ending Market Value 1,574 1,574 1,574 1,574 Modern Portfolio Statistics Standard Maximum Up Down Sharpe Inception Return Deviation Beta Return Capture Capture Alpha Ratio R -Squared Date Vanguard - S&P 500 Index ETF 25.30 17.81 1.00 12.79 100.20 100.51 -0.09 1.33 1.00 09/01/2019 S&P 500 Total Return 25.32 17.74 1.00 12.82 100.00 100.00 0.00 1.34 1.00 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting' Page 44 City of Atlantic Beach General Employees' Pension Invesco - S&P 500 Equal Weight ETF - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 16.0 12.0 C B 8.0 v : 4.0 0.0 Manager 14.0 12.0 10.0 8.0 F 6.0 a 4.0 2.0 8 Current Fiscal Since Quarter YTD Inception Annualized Performance Current Fiscal Since Inception Quarter YTD Inception Date 0.0 Invesco - S&P 500 Equal Weight ETF 8.93 8.93 8.69 06/01/2021 S&P 500 Equal Wtd 9.01 9.01 8.92 -2.0 Differences -0.08 -0.08 -0.23 Historic Asset Growth -4.0 -1.8 -1.2 -0.6 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4 Risk (Standard Deviation %) s Invesco - S&P 500 Equal Weight ETF 0 S&P 500 Equal Wtd . 90 -Day T -Bills Current Fiscal Since Inception Quarter YTD Inception Date Invesco - S&P 500 Equal Weight ETF 06/01/2021 Beginning Market Value 991 991 993 Net Contributions - - 1 Fees/Expenses - - -1 Income 3 3 9 Gain/Loss 85 85 77 Ending Market Value 1,079 1,079 1,079 Modern Portfolio Statistics Return Standard Alpha Beta Down Maximum R -Squared Sharpe Up Inception Deviation Capture Drawdown Ratio Capture Date Invesco - S&P 500 Equal Weight ETF 8.69 3.48 -0.04 1.01 101.72 -3.80 1.00 0.36 99.37 06/01/2021 S&P 500 Equal Wtd 8.92 3.45 0.00 1.00 100.00 -3.79 1.00 0.37 100.00 06/01/2021 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Grays tone Consulting' Page 45 City of Atlantic Beach General Employees' Pension Boston - SMID Value - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 45.0 30.0 a v a. 15.0 0.0 Manager 18.0 12.0 9.0 o 6.0 v 3.0 04 • Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date 0.0 Boston - SMID Value 4.79 4.79 28.59 20.50 10.40 10.02 11.52 10.04 04/01/2010 Russell 2500 VL 6.36 6.36 27.78 18.31 9.88 9.56 12.43 11.38 Differences -1.57 -1.57 0.81 2.19 0.52 0.46 -0.91 -1.34 -3.0 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception -6.0 Quarter YTD Year Years Years Years Years Inception Date -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) • Boston - SMID Value 0 Russell 2500 VL . 90 -Day T -Bills Boston -SMID Value 04/01/2010 -8.0 Beginning Market Value 2,171 2,171 1,786 979 1,529 796 1,013 912 Net Contributions -25 -25 -35 281 -213 334 -285 -210 Fees/Expenses -4 -4 -14 -28 -45 -62 -78 -87 Income 8 8 34 78 122 154 178 193 Gain/Loss 96 96 475 935 853 1,024 1,418 1,439 Ending Market Value 2,246 2,246 2,246 2,246 2,246 2,246 2,246 2,246 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe Deviation Drawdown Capture Capture Ratio R -Squared Inception Date Boston - SMID Value 10.04 20.04 1.10 -38.66 103.44 110.54 -1.99 0.56 Russell 2500 VL 11.39 17.76 1.00 -34.64 100.00 100.00 0.00 0.67 0.95 04/01/2010 1.00 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 46 Grays tone Consulting' oa rD U1 W 0 W City of Atlantic Beach General Employees' Pension Riverbridge - SMID Growth - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 45.0 30.0 E v 15.0 Manager '' f0.0 Z a 24.0 20.0 16.0 12.0 8.0 4.0 0.0 -4.0 -8.0 -8.0 • ' Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Riverbridge - SMID Growth 0.85 0.85 6.30 27.99 21.47 16.05 16.80 16.29 04/01/2010 Russell 2500 GR 0.20 0.20 5.05 25.09 17.65 13.78 15.75 14.73 Differences 0.65 0.65 1.25 2.90 3.82 2.27 1.05 1.56 Historic Asset Growth -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Risk (Standard Deviation %) • Riverbridge - SMID Growth 0 Russell 2500 GR . 90 -Day T -Bills 24.0 28.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YID Year Years Years Years Years Inception Date Riverbridge - SMID Growth 04/01/2010 Beginning Market Value 1,554 1,554 1,747 877 1,362 812 453 439 Net Contributions - - -260 -202 -1,019 -582 -571 -651 Fees/Expenses -3 -3 -11 -25 -42 -59 -71 -76 Income 1 1 6 18 32 46 57 61 Ga6a/Loss 12 12 82 896 1,231 1,348 1,696 1,791 Ending Market Value 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 Modern Portfolio Statistics Return Standard Beta Maximum Deviation Drawdown Up Down Alpha Capture Capture Sharpe R -Squared Ratio Inception Date Riverbridge - SMID Growth 16.29 16.47 0.85 -18.25 Russell 2500 GR 14.74 18.00 1.00 -23.72 93.61 81.28 3.44 100.00 100.00 0.00 0.97 0.86 0.83 1.00 04/01/2010 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 47 Graystone Consulting' City of Atlantic Beach General Employees' Pension Lazard - International Strategic Equity - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 24.0 16.0 .c. v 8.0 a 0.0 -8.0 Manager 18.0 15.0 12.0 9.0 F z 6.0 a 3.0 . 04 0 Current Fiscal 1 Since Quarter YTD Year Inception Annualized Performance Current Fiscal 1 Since Inception 0.0 Quarter YTD Year Inception Date Lazard - International Strategic Equity -0.81 -0.81 5.99 11.10 09/01/2019 -3.0 MSCI EAFE Net 2.69 2.69 11.26 13.13 Differences -3.50 -3.50 -5.27 -2.03 Historic Asset Growth -6.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) III Lazard -International Strategic Equity 0 MSCI EAFE Net . 90 -Day T -Bills Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Lazard - International Strategic Equity 09/01/2019 Beginning Market Value 1,947 1,947 1,855 - Net Contributions - - -35 -35 Fees/Expenses - - - - Income - - - - Gain/Loss -16 -16 112 1,967 Ending Market Value 1,932 1,932 1,932 1,932 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R -Squared Inception Deviation Drawdown Capture Capture Ratio Date Lazard - International Strategic Equity 11.10 19.38 1.06 -23.80 103.23 114.67 -2.42 0.62 0.97 09/01/2019 MSCI EAFE Net 13.17 17.92 1.00 -22.83 100.00 100.00 0.00 0.75 1.00 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting' Page 48 771 Ott rD L.n o_ lDW City of Atlantic Beach General Employees' Pension Vanguard - Total International Stock ETF - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 20.0 15.0 20.0 16.0 B 10.0 14.' 5.0 0.0 12.0 8.0 B Current Fiscal 1 Since a 4.0 Quarter YTD Year Inception Manager Annualized Performance 0.0 Current Fiscal 1 Since Inception Quarter YTD Year Inception Date -4.0 Vanguard - Total International Stock ETF 2.01 2.01 8.92 13.72 09/01/2019 FTSE Global All Cap x US (Net) 1.74 1.74 8.69 13.77 _8.0 Differences 0.27 0.27 0.23 -0.05 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Historic Asset Growth Risk (Standard Deviation %) Current Fiscal 1 Since Inception ■ Vanguard - Total International Stock ETF Quarter YTD Year Inception Date Vanguard - Total International Stock ETF 09/01/2019 Beginning Market Value 1,684 1,684 1,803 0 FTSE Global All Cap x US (Net) Net Contributions - - -245 -311 . 90 -Day T -Bills Fees/Expenses - - - - Income - - - - Gain/Loss 34 34 159 2,028 Ending Market Value 1,717 1,717 1,717 1,717 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R -Squared Inception Deviation Drawdown Capture Capture Ratio Date Vanguard - Total International Stock ETF 13.72 17.79 0.99 -24.47 99.44 99.39 0.05 0.79 0.99 09/01/2019 FTSE Global All Cap x US (Net) 13.81 17.83 1.00 -24.04 100.00 100.00 0.00 0.79 1.00 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting' Page 49 rD u1 O1 o_ Lk) City of Atlantic Beach General Employees' Pension Sage - Int. Fixed Income - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 9.0 6.0 E 3.0 y 0.0 -3.0 -6.0 Manager pa 3.5 E 1.7 1.0 0.5 0.0 -0.5 -0.8 6 . . • Current Fiscal 1 3 5 7 Since Quarter YTD Year Years Years Years Inception Annualized Performance Current Fiscal 1 3 5 7 Since Inception Quarter YTD Year Years Years Years Inception Date Sage Advisory - Int. Fixed Income -0.48 -0.48 -0.89 4.73 3.45 2.93 2.62 05/01/2013 BC Gov/Cr Intro -0.57 -0.57 -1.44 3.86 2.91 2.53 2.19 Differences 0.09 0.09 0.55 0.87 0.54 0.40 0.43 Historic Asset Growth -0.4 0.0 0.4 0.8 1.2 1.6 2.0 2.4 Risk (Standard Deviation %) ■ Sage Advisory - Int. Fixed Income 0 BC Gov/Cr Intm . 90 -Day T -Bills 2.8 3.2 3 Current Fiscal 1 3 5 7 Since Inception Quarter YTD Year Years Years Years Inception Date Sage Advisory - Int. Fixed Income 05/01/2013 Beginning Market Value 4,330 4,330 4,364 3,574 4,327 768 998 Net Contributions - - - 230 -606 2,872 2,419 Fees/Expenses -5 -5 -20 -59 -100 -129 -161 Income 22 22 98 319 555 687 904 Ga6a/Loss -43 -43 -137 241 129 107 145 Ending Market Value 4,305 4,305 4,305 4,305 4,305 4,305 4,305 Modern Portfolio Statistics Return Standard Beta Maximum Deviation Drawdown Up Down Alpha Capture Capture Sharpe R -Squared Ratio Inception Date Sage Advisory - Int. Fixed Income 2.62 2.42 1.00 -2.56 BC Gov/Cr Intm 2.19 2.23 1.00 -2.50 107.06 93.86 0.41 100.00 100.00 0.00 0.81 0.86 0.69 1.00 05/01/2013 05/01/2013 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 50 Graystone Consulting' City of Atlantic Beach General Employees' Pension AMG Beutel Goodman - Core Plus Fixed Income - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 4.0 2.0 4 0.0 a -2.0 -4.0 Manager 3.5 3.0 2.5 2.0 e,. E 1.5 pa 1.0 0.5 0.0 0.5 -2.7 0 D O Current Fiscal Quarter YTD Annualized Performance 1 Year Since Inception Current Quarter Fiscal 1 YTD Year Since Inception Inception Date AMG Beutel Goodman - Core Plus Fixed Income -0.12 Barclays Aggregate 0.01 Differences -0.13 Historic Asset Growth -0.12 0.21 0.01 -1.54 -0.13 1.75 2.47 09/01/2019 2.30 0.17 ■ Q . -1.8 -0.9 0.0 0.9 1.8 2.7 3.6 4.5 Risk (Standard Deviation %) AMG Beutel Goodman - Core Plus Fixed Income Barclays Aggregate 90 -Day T -Bills 5.4 6.3 7.2 8.1 9 Current Quarter Fiscal 1 YTD Year Since Inception Inception Date AMG Beutel Goodman - Core Plus Fixed Income Beginning Market Value 1,515 Net Contributions - Fees/Expenses Income - Gain/Loss -2 Ending Market Value 1,514 Modern Portfolio Statistics 1,515 1,510 - - - - -2 3 1,514 1,514 09/01/2019 _ - - 1,514 1,514 Return Standard Beta Deviation Maximum Drawdown Up Down Alpha Sharpe Capture Capture Ratio R -Squared Inception Date AMG Beutel Goodman - Core Plus Fixed Income Barclays Aggregate 2.47 2.31 6.20 1.15 3.07 1.00 -7.71 -3.57 133.92 149.31 -0.04 0.34 100.00 100.00 0.00 0.59 0.32 1.00 09/01/2019 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. P age 51 Graystone Consulting' v Ott rD u!1 00 0 W City of Atlantic Beach General Employees' Pension Goldman Sachs - Emerging Markets Debt - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 6.0 3.0 a2.4 -3.0 -6.0 Manager 3.6 3.0 2.4 5 1.8 B a 1.2 0.6 Co ■• Current Fiscal 1 Since Quarter YTD Year Inception Annualized Performance Current Fiscal 1 Since Inception Quarter YTD Year Inception Date 0.0 Goldman Sachs - Emerging Markets Debt -1.12 -1.12 -3.05 2.10 09/01/2019 JPM EMBI Global 0.02 0.02 -1.51 2.55 -0.6 Differences -1.14 -1.14 -1.54 -0.45 -(.0 Historic Asset Growth -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Risk (Standard Deviation %) ■ Goldman Sachs - Emerging Markets Debt 0 JPM EMBI Global . 90 -Day T -Bills Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Goldman Sachs - Emerging Markets Debt 09/01/2019 Beginning Market Value 428 428 436 Net Contributions - - - - Fees/Expenses - - - - Income - - - - Gain/Loss -5 -5 -12 424 Ending Market Value 424 424 424 424 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R -Squared Inception Deviation Drawdown Capture Capture Ratio Date Goldman Sachs - Emerging Markets Debt 2.10 13.75 1.28 -17.05 120.65 127.28 -0.90 0.19 0.99 09/01/2019 JPM EMBI Global 2.56 10.70 1.00 -13.26 100.00 100.00 0.00 0.24 1.00 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Grays tone Consulting' P age 52 City of Atlantic Beach General Employees' Pension Tortoise - MLP & Pipeline - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 60.0 40.0 a 20.0 0.0 -20.0 Manager 3.5 2.8 2.1 1 0.7 a 0.0 -0.7 0 Current Fiscal 1 Since Quarter YTD Year Inception Annualized Performance Current Fiscal 1 Since Inception Quarter YTD Year Inception Date 1.4 w. Tortoise - MLP & Pipeline 0.89 0.89 40.81 1.61 09/01/2019 Alerian MLP Index 0.55 0.55 40.17 -1.48 -2.1 Differences 0.34 0.34 0.64 3.09 Historic Asset Growth -2.1 -2u .n -10.0 0.0 10.0 20.0 30.0 40.0 50.0 (0)1 11.0 8010 Risk (Standard Deviation %) • Tortoise - MLP & Pipeline © Alerian MLP Index . 90 -Day T -Bills Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Tortoise - MLP & Pipeline 09/01/2019 Beginning Market Value 1,144 1,144 894 - Net Contributions -50 -50 -150 50 Fees/Expenses - - - - Income - - - - Gain/Loss 11 11 361 1,055 Ending Market Value 1,105 1,105 1,105 1,105 Modern Portfolio Statistics Standard Maximum Up Down Sharpe Inception Return Alpha R -Squared Deviation Beta Drawdown Capture Capture Ratio Date Tortoise - MLP & Pipeline 1.61 38.88 0.73 -49.35 76.30 75.89 0.72 0.25 0.95 09/01/2019 Alerian MLP Index -1.49 52.33 1.00 -58.93 100.00 100.00 0.00 0.24 1.00 09/01/2019 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting' Page 53 v rD 0 o_ W City of Atlantic Beach General Employees' Pension Principal - REIT - Executive Summary as of December 31, 2021 Manager Performance Chart Manager Risk & Return 60.0 45.0 60.0 50.0 F, a 30.0 15.0 0.0 40.0 30.0 0 CO�v Current Fiscal 1 Since ,ti () Quarter YTD Year Inception y tx Manager Annualized Performance Dm Current Fiscal 1 Since Inception Quarter YTD Year Inception Date 0.0 Principal - REIT 14.77 14.77 41.03 40.94 12/01/2020 MSCI REIT Gross 16.31 16.31 43.06 43.40 Differences -1.54 -1.54 -2.03 -2.46 40.0 Historic Asset Growth Current Fiscal 1 Since Inception -20.0 Quarter YTD Year Inception Date -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Principal - REIT 12/01/2020 Risk (Standard Deviation %) Beginning Market Value 978 978 459 446 Net Contributions - - 395 395 • Principal - REIT 0 MSCI REIT Gross . 90 -Day T -Bills Fees/Expenses -2 -2 -5 -5 Income 7 7 20 21 Gain/Loss 137 137 251 263 Ending Market Value 1,121 1,121 1,121 1,121 Modern Portfolio Statistics ReturnStandard Beta Maximum Up Down Alpha Sharpe R -Squared Inception Deviation Drawdown Capture Capture Ratio Date Principal - REIT 40.94 13.03 0.98 -5.17 96.33 104.52 -0.95 2.73 0.97 12/01/2020 MSCI REIT Gross 43.47 13.15 1.00 -5.51 100.00 100.00 0.00 2.85 1.00 12/01/2020 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting' Page 54 DJ o.a rD rn 0 Lk) Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs PSN Large Cap Growth Gross: Return Rank January 2012 - December 2021 (not annualized if less than 1 year) Calendar Year Return - �•l.rw w�• • Colunua Select LCGr(Gross) y e 5th to 7000 Granth 5th to 15th Growth le K ■ II _ • CquNra S led LC Gr (Gras) ■ Wsm 1000 Granth ■ Median to 75th Percentile ... ■ 25th to 96th Pe to Mile L ■ 75th to 95th Percentile ■ • ■ U �. - 10 Years ending 12/31/2021 1 quarter 1year 3years 5years 7years 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Columbia Select LC Gr (Gross) 0.78% 10.20% 31.00% 24.02% 16.42% 17.94% Columbia Select LC Gr (Gross) 10.20%4&08%37.76%-3.85% 35.71%-8.28% 7.71% 8.46%44.41%14.73% -2.76%24.72% Russell 1000 Growth 11.64% 27.60% 34.08% 25.32% 19.58% 19.79% I Russell 1000 Growth 27.60% 38.49% 36.39% -1.51% 30.21% 7.08% 5.67% 13.05% 33.48% 15.26% 2.64/0 16.71% Risk/ Retum: 10 Years ending 12/31/2021 Lead Portfolio Manager: T. Galvin Manager Tenure: May 2008 -December 2021 2. di �. .x ,Stardard ,�. ,«� ,e� 4r.Pp. Deua6Gn OK 2009 oar, eec21,13 Dec 2015 e.,,o„ o.:,1,„ os MI 10 Years ending 12/31/2021 Return smDev (4) Be Alpha vs. market Rsquarea vs. market Sharpe Ratio Portfolio Performance vs. Russell 1000 Growth °) Market (^4) (y,) May 2008 - December 2021 Annualized Cumulative Columbia Select LCGr(Gross) 17.94 18.06 1.16 -4.00 81.93 0.96 Annualized Return (%) Cumulative Return (%) Excess Return (%) Excess Return (%) Russell 1000 Growth 19.79 14.04 1.00 0.00 100.00 1.37 - Columbia Select LC Gr (Gross) 12.90 425.26 -1.79 -125.80 Manager vs Benchmark Alpha January2011 - Decerrber 2021(60 -Month Monng W rdons, Computed Yearly) ■ Co4mde Select LC Gr (Grins) ■ . ■Russell 1000 Growth Q_ ■ i -4111L Ail January 2011 - December 2021 Dec 2021 Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Cdurrtia Select LC Gr (Grass) -2.46% -3.22% -4.87% -4.57% -4.83% -6.11% -2.89% Graystone Consultings" Page 55 of 01a rD rn 0 W Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs PSN Large Cap Growth Gross: Return Rank Calendar Year Retum January 2012 - Decerrter 2021 (rot annualized if less than 1 yam) • Amend Pbneer FnMmtl. Gr (Gross) Y ♦ Russel 1000 Growth =■ ❑ 5th to 25th Percentie K : 4 ■,. �,.: Amend Pioneer Fntlmntl. Gr (Gross) ■ Russell 1000 Growth ■ 25th Remand° to Medan E ■ Med. to eentie - ■ M75th to 95th 5th 75th Per P ammen 1 .41 G G LI - 10 Years ending 12/31/2021 1 quarter 1year 3years 5years 7years 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Amundi Pioneer FndmMl. Gr (Gross) 10.04% 24.25% 29.13% 21.82% 17.13% 18.41 % Amudi Pioeer FndrstI.Gr(Gress) 24.25%28.20%35.19% 0.42% 24.08% 480% 7.56% 15.19%34.32%15.80°/ 7.59% 12.W% Russell 1000 Growth 11.64% 27.60% 34.08% 25.32% 19.58% 19.79% Russell 1000 Granth 27.60% 38.49% 36.39% -1.51% 30.21% 7.08% 5.67% 13.05% 33.48% 15.26% 2.64% 16.71% Risk/ Retum: 10 Years ending 12/31/2021 Lead Portfolio Manager. A. Acheson Manager Tenure: January 2007 - December 2021 � ray •� r• ,•� g' -- Standard Deoiabon Return g 12/31/2021 10 Years endinCumuative staDee Beta ha shar vs. Market Ras()Market 0 Growth PerfoCumulative (�) (%) Market Ratio January 2007 -December 2021 AnnualRuesdsell100 Amudi Pioneer Fla intl. Gr (Grass) 18.41 12.91 0.89 0.76 93.93 1.38 Annual Zed Return (%) Return (%) Excess Return (%) Excess Return (%) Russell 1000 Granth 19.79 14.04 1.00 0.00 100.00 1.37 Amundi Pioneer Fndmntl. Gr (Gross) 13.67 583.85 -0.05 -4.35 Manager oo Benchmark Alpha January 2008 - December 2021 (6040nth Moving Windows, Computed Yearly) • Amend Pioneer FMnMI. Gr (Gras) ■ Resell 1000 Growth Q _ January2008 -December 2021 Dec 2021 Dec 2020 Dec 2019 1 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Dec 2013 Dec 2012 Amundi Pioneer Fndmntl. Gr (Gross) -0.25% -0.50% 1.16% 0.92% 0.50% 1.35% 2.84% 2.16% 2.03% 2.24% Graystone Consultings'" Page 56 Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs Momingstar Large Blend: Retum Rank Calendar Year Retum — January 2015 - Decenter 2021 (not annualized if less than 1 )ear) 4n • Vanguard S&P 500 ETF (MKT) ,2• S&P 500 l0 25th PercoMie K . . . ❑5th VS &P 500a@.iartl S&P 500 ETF (MKT) ■ ■ Medan to 75th PercentBe ■75thto�thPerceMle [2'-' ■ 5th Percto9teto Medan ?li IL 7 Years ending 12/31/2021 1 quarter 1 year 3 years 5 years 7 years 2021 2020 2019 2018 2017 2016 2015 2014 Vanguard S&P 500ETF(MKT) 11.09% 28.78% 26.01% 18.40% 14.90% Vanguard S&P 500ETF (MKT) 28.78% 18.29% 31.35% -4.50% 21.77% 12.17% 1.31% 13.55% S&P 500 11.03% 28.71% 26.07% 18.47% 14.93% S&P 500 28.71% 18.40% 31.49% -4.38% 21.83% 11.96% 1.38% 13.69% Risk / Retum: 7 Years ending 12/31/2021 VOO va Index Since Inception: October 2010 - December 2021 3 ix o. 254 .. a. 8, Standard Devahm AMWIMMMIMIIIMMPMIIIIPIIFIIIIMIOIIIIO aw�,a o.�p„ 0.«,3 eK, , ,1,2019 o«021 7 Years ending 12/31/2021 Retur (°k)n Std Dev (%) Beta Alpha vs. Market RSguared vs. Market Sharpe Ratio... Portfolio Performance vs. S&P 500 Msrkat (6) l°�) October 2010 - December 2021 Annualized — Cumulative — Vang uard S&P 500 ETF (MKT) 14.90 14.44 1.00 0.02 99.96 0.97 Annualized Return (%)Return(%)Excess Cumulative Retum (%) Excess Return (%) S&P 500 14.93 14.48 1.00 0.00 100.00 0.97 Vanguard S&P 500 ETF (MKT) 15.80 420.80 -0.05 -2.35 Manager vs Benchmark: Std Dev of Excess Return (Tracking Error) January 2014 - Decenber 2021 (60 -Month Moving Vvindoes, Computed Yearly) • Vanguard S&P 500 ETF ((XT) ■ S&P 500 January2014 - Decenbcr 2021 Dec 2021 Dec 2020 Dec 2019 Dec 2018 Vanguard S&P 500 ETF (MKT) 7 0.31 % 0.30% 0.27% 0.27% Graystone Consulting' Page 57 Zephyr StyIeADVISOR Zephy r Sty leADVISOR: MSSB - Tampa, FL Manager vs Momingstar Large Blend: Retum Rank Calendar Year Retum January 2015 - Decanter 2021 (rot annualized if less than 1 )ear) :tyg o98PSug® 5,..00,ETFina) c ♦56P 505 FeaIWee9M1t K • We9rEF. MKrI •58,coEPm We. 2511 PercenWeb Metl • 'M 95b Fercenll:' ? E V - _ • 0 ,I 7 Years ending 12/31/2021 1 quarter 1 year 3 years 5 years 7 years 2021 2020 2019 2018 2017 2016 2015 2014 . coS9d. Equal WelgMErF(MT) 8.95 29.41 23.43 15.48 12.56 INESCO SP, mAE.WaorE,Fm+m 29.41% 12.71% 28.91% -7.82% 18.51% 14.50% -2.66% 14.06% sev5006ioelWeghr 9.01 29.63 23.64 15.73 12.85 5...EpxfWel* 29.63% 12.83% 29.24% -7.64% 18.90% 14.80% -2.20% 14.49% Risk/ Retum: 7 Years ending 12/31/2021 VOOvs. Index Return 9 3> 9 5 R 7 K Since Inception: May 2003 - December 2021 ,t0 �•� ,� Standard Deviation,,,,, AIMMIll o.p0 e.oo,o=«..,m„ 7 Years ending 12/31/2021 R turn (/) Std Dev Beta (%I Alpha RSquared es.(%,ket Ms.(% Sharpe Ratio Portfolio Performance vs. S&P 500 Equal Weight Market DC 'ket May 2003 - December 2021 Annualized Cumulative Invesco sePSoon Equal welgMEFIM(q 12.56 16.22 1.00 -0.24 99.97 0.72 Annualized Return (%) Cumulative Retum (%) Excess Return (%) Excess Return (%) 541.900rquelwelgM 12.85 16.25 1.00 0.00 100.00 0.74 Invesco S&P 500E Equal Wap t ETF (MKT) 12.10 742.93 -0.49 -71.05 Manager vs Benchmark: Std Dev of Excess Return (Tracking Error) January2014 - December 2021 (60 -Month Moving Windows, Ccnp ted Yearly) • Inan S&P 5009 Equal Weight ETF (MKT) • S&P 500 EqN Weft - January2014- December 2021 Dec 2021 Dec 2020 Dec 2019 Dec 2018 Invesco S&P 5000 Equal Weight ETF(NKT) 0.25% 0.25% 0.26% 0.25% Graystone Consulting' Page 58 of 01a rD rn u1 0 W Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs PSN Large Cap Value Gross: Retum Rank Calendar Year Return January 2012 - December 2021 (not annualized if less than 1 year) • • JPM Equity Income (Gross) y ♦ Russell 1000 Value 5th to 25th PercoNile IY ■ 25th ieto Median ■ Meto 75th Percentile to 95th ■ 75th l0 95th PercortleTh • .11 • lii ■JPM EgJty Income (Gross) ■ Russel 1000 Value r I 10 Years ending 12/31/2021 1 quarter 11 er 3years 5years 7years 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 JPM EquityIncome (Gross) 8.91 % 25.98% 18.72% 13.77% 11.70% 14.16% JPM Equity Income (Gross) 25.98% 4.34% 27.28% -3.78% 18.41% 15.69% -1.64% 14.53% 3255% 14.21% 9.07% 19.32% Russell 1000 Value 7.77% 25.16% 17.64% 11.16% 9.73% 12.97% Russell 1000 Value 25.16% 2.80% 26.54% -8.27% 13.66% 17.34% -3.83% 13.45% 32.53% 17.51% 0.39% 15.51% Risk/ Return: 10 Years ending 12/31/2021 Lead Portfolio Manager: C. Hart • Manager Tenure: December 2002 - December 2021 Standard Deuatim oK 10 Years ending 12/31/2021 Rawra �) Beta smoey ye. (� Alpha ye. Market R.squared y°. market Sharpe Ratlo Portfolio Performance vs. Russell 1000 Value Market (%) I%) Decanter 2002 -December 2021 Annualized Cumulative JPM Equity Income (Gross) 14.16 12.80 0.91 2.10 97.11 1.06 Annualized Retum (%)Return(%)Excess Cumulative Return (%) Excess Return (%) Russell 1000 Value 12.97 13.82 1.00 0.00 100.00 0.89 JPM EquityIncome (Gross) 11.49 696.72 2.02 235.17 Manager Vs Benchmark Alpha January2008- Decanter 2021 (60-Mcnth Moving 1Mrldons, Carpeted Yearly) ■ JPM EWXy Income (Gross) n ■ Russell 1000 Value . ,_......._ January 2008 - December 2021 I Dec 2021 Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Dec 2013 Dec 2012 JPM Equity Income (Gross) _ I 3.06% 2.65% 2.75% 2.45% 2.27% _ 1.17% _ _ 3.22% 4.13% _ 4.83% 3.75% Graystone Consulting' Page 59 Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs PSN Small -Mid Growth Gross: Retum Rank January 2012 - December 2021 (not annualized if less than 1 year) Calendar Year Retum - • Resseil 25 SMID GrGrowth (Grass) D 5th to 2500 Granth 5th to 25th Percentile K 4 25thPercentile to Medej■ Medanto75thPercentile .- ■75thto9ahPercantile ® ® • ■ FWedaidJe SMID Gr (Gross) ■ Russel' 2500 Growth 10 Years ending 12/31/2021 1 quarter 1year 3years 5years 7years 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Riverbridge SM ID Gr (Gross) 1.22% 6.86% 28.20% I 1 21.72% 16.49% 16.81% Riverbridge SMID Gr (Gross) 6.86% 47.87% 33.34% 0.42% 26.28% 8.56% 0.37% 3.92% 35.98% 14.92% 1224% 30.84% Russell 2500 Growth 0.20% 5.04% 25.09% 17.65% 13.78% 15.75% Russell 2500 Growth 504% 40.47%32.65% -7.47% 24.46% 9.73% i -0.19% 7.05% 40.65% 16.13%-1.57%28.86% Risk/ Retum: 10 Years ending 12/31/2021 tax- Lead Portfolio Manager: M. Thompson Manager Tenure: January 2007- Decerrber 2021 rex- -_... s� tor. .m sx 4% ex ox zx a4 ex 12%t4x tax tax - - Standard Deviation of mos oFmm -ao„ of �,s osam, 10 Years ending 12/31/2021 rteturn P� I std oev (�) Beta Alpha vs. Market Rsquarea vs. market sharps Ratio Portfolio Performance vs. Russell 2500 Growth Market (04) (i I January 2007 - December 2021 Annualized Cumulative Riverbridge SMID Gr (Gross) 16.81 15.29 0.83 3.39 85.98 1.06 Annualized Retum (%) Cumulative Return (%) Excess Return (%) Excess Return (%) Russell 2500 Growth 15.75 17.03 1.00 0.00 100.00 0.89 RiserbridgeSMID Gr (Gross) 14.11 624.45 2.82 226.77 Manager vs Benchmark Apha January2010 - December 2021 (60 -Mont Maung W ndom, Computed Yearly) 4, 2 ■ Russell . 250SMIDGr(Gross) • Russell 2500 GreMIO January 2010 -December 2021 Dec 2021 7 Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Riverbridge SMID Gr (Gross) 6.05% 5.55% 3.33% 1.85% 0.92% 0.68% 4.30% 6.02% Graystone Consultings" Page 60 DJ 0.a rD al 0 Lo) Zephyr StyIeADVISOR Zephyr Sty IeADVISOR: MSSB - Tampa. FL Manager vs PSN Small -Mid Value Gross: Retum Rank Calendar Year Return January 2012 - December 2021 (not annualized if less than 1 year) _ . • Boston 2500VsSMID Val (Gross) Y ♦ Li 5th to 2500 Value 5th to le [C Percetale ■ ® O ■ ■ ■ ❑ Boston 2:03PalnesVs SMID Val (Gross) ■Russell Z`AO Vsbe - - ri 4 1 srce 25th Percentile to Median j to • Median ■ 75th to to 9575th Percentile P. . 75th to 95,h Percentile K . O 10 Years ending 12/31/2021 1 quarter 1 year 3years 5years pears 10wars 2021 2020 2019 2018 2017 12016 2015 2014 2013 2012 2011 2010 Boston Partners SMD Val (Doss) 4.76% 27.64% 20.68% 10.22% 10.22% 13.32% Boston Partners SMID Val (Gross) 27.64% 4.49% 31.79%-18.56% 13.64% 25.36% -3.06% 5.34% 35.33% 23.97% -1.57% 18.07% Russell 2500 Value 6.36% 27.78% 18.31% 9.88% 9.56% 12.43% Russell 2500 Value 27.78% 4.88% 23.56%-12.36%10.36% 25.20% -5.49% 7.11% 33.32%I 19.21% -3.36% 24.82% t0 Risk/ Return: 10 Years ending 12/31/2021 Lead Portfolio Manager Tenure: July Manager: D. Dabora 2001 - December 2021 12% DIF E e� 71:0- w' a" 0 zw a� s% a 12r ter° 20w, - Standard Deviation 50164 OL00 00007 00166 0500„ Dec Decors 00477 owns 050401 10 Years ending 12/31/2021 Return 1%) Beta Alpha Std Dev (%) vs.nla�ket R -Squared vs.maiket Sharpe Ratio Portfolio Performance vs. Russell 2500 Value Market July 2001 - December 2021 Annualized Cumulative Boston Partners SMID Val (Gross) 13.32 18.55 1.08 0.11 97.10 0.69 Annualized Return (%) Cumulative Return (%) Excess Retum (%) Excess Return (%) Russell 2500 Value 12.43 17.00 1.00 0.00 100.00 0.70 - Boston Partners SMID Val (Gross) 10.85 726.74 1.24 170.86 Manager vs Benchmark: Alpha Januery2008- Decenber 2021 (60 -Month Mcing Wrxlone, Carpeted Yearly) • Boston Partners SMID VS (Gross) _ I. Russell 2500 VelueQ' .-_ January 2008 -December 2021 Dec 2021 Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Dec 2013 Dec 2012 BOstcn Partners SMID Val (Gross) -0.14% -0.08% 0.65% -0.72% I 0.97% 0.97% 1.72% 0.34% 3.31% 2.95% Graystone Consulting' P age 61 D.) o'a rD rn 00 0 LO W Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs Morningstar Foreign Large Blend: Return Rank Calendar Year Re um October 2003 - December 2021 (not annualized if less than 1 year) • Vanguard Total Ml Rook ETF s • (NAV) i! SN b25o Percena�IXUSNDIX ■ ■• O ■ Ff�GLOBHLIALLCA EX115 NUIX i. I to ■ 25hPercent. sam Frce.°Medan ? ■ NCtlienblaM1 F2rcenNe ■ >SNb 95b f6rPersi • N ■ ■ II _ ■ 7 Years ending 12/31/2021 1 quarter 11 ear 3years 5years 7years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 12010 Vaguad Teta I rt'I Stock ETF (NAV) 2.13% 8.69% 13.73% 9.93% 7.03% Vanguard Total Ml Sock EIF(NAM 8.69% 11.32% 21.58% -14.42% 27.52% 4.72% -4.28% -4.17% 15.16% 18.22% -14.57% 11.12% FTSE GLOBAL ALL CAP EX US INDEX 1.81% 9.13% 14.15% 10.23% 7.33% Flgoto6^LALLCAPIXUSNOIX 9.13% 11.54% 22.19%-14.36% 27.77% 5.04% -4.03% -3.12% 15.90% 17.92% -14.03%13.23% Risk/ Return: 7 Years ending 12/31/2021 VXUS vs Index Since Inception October 2003 - December 2021 re am . Standard Deviation 7 Years ending 12/31/2021 RC! j Std Bev Beta s. Alpha RSquared vs, market vs. market Sharpe Portf olio Performance vs. FTSE GLOBAL ALL CAP EX US INDEX market (%) 1%) October 2003 - December 2021 Annualized Cumulative Vanguard TaIrl Stack ETF(NAV) 7.03 14.52 0.99 -0.18 98.85 0.43( Annualized Retum%al ) Cumulative Return (%) Excess Retum (%) Excess Retum (%) FTSE GLOBAL ALL CAP EX US INDEX 7.33 14.65 1.00 0.00 100.00 0.44 Vanguard Total Intl Stock ETF (NAV) 7.35 264.88 -0.86 -57.18 Manager vs Benchmark Std Dev of Ecess Return (Tracking Error) Januany2015 - Decertber 2021 (60-Mcnth Maing Wlndoos, Computed Yearly) • Vanguard Total Intl Stock ETF (NAV) • FTSE GLOBAL ALL CAP EX US INDEX January 2015 - December 2021 Dec 2021 Dec 2020 Dec 2019 Vanguard Total Intl Stack ETF (NAV) 1.45% 1.72% 1.50% Graystone Consulting5M P age 62 0J 0'1.1 (D 0 l0 w Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs Morningstar Foreign Large Blend: Return Rank Calendar Year Return January 2012 - December 2021 (not annualized if less than 1 year) � -. a e Lazard Intl Eq lb th',eme d • MSCI EAFE (Nat) K ❑ 5th to25thtie ■ Lazard Id, Strategic Eq I ■MSCI EAFE (Net) to Me ■ M25th Percentile to Medan E ■Medan to 75th Perca.ntie ' • ■ 75th to 95th Pacenneertie a Li e. ■ �� 10 Years ending 12/31/2021 1 quarter 1year 3yeers 5ymars 7leers 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Lazard Intl Strategic Eq I -0.80% 5.99% 12.52% 10.31% 6.19% 8.89% Lazard Int' I Strategic Eql 5.99% 10.58% 21.55% -10.35% 27.85% -5.17% -1.70% -1.48% 25.02% 25.00% -9.70% 14.43% MSCI EAFE (Net) 2.69% 11.26% 13.54% 9.55% 6.76% 8.03% MSCI EAFE (Net) 11.26% 7.82% I 22.01% -13.79% 25.03% 1.00% -0.81% -4.90% 22.78% 17.32% -12.14% 7.75% Risk / Return: 10 Years ending 12/31/2021 Lead Portfolio Manager M. Little Manager Tenure: November 2005 - December 2021 re P A. Standard Deviation .5 ,,gym, I>maar owm„ gym„ o�.,� ��,,, ��a osa>r 10 Years ending 12/31/2021 R tura smDev Beta Alpha R -Squared „s. market vs. Market Sharpe Ratio Portfolio Performance vs. MSCI EAFE Net (Net) (�) (�) Market (%) (%) November 2005- December 2021 Annualized Cumllathe Lazard Intl Strategic Eq I 8.89 14.19 0.97 1.11 92.83 0.58 Annualized Return (%) Cumulative Return (%) s Renu n (%) Excess Return (%) MSCIEAFE(Net) 8.03 14.14 1.00 0.00 100.00 0.53 Lazard Int IStrategic Egl 6.70 185.44 1.41 55.16 Manager vs Benchmark Alpha January2009 - Decenter 2021 (60-MartMoving Windom, Computed Yearly) • Lazard Intl Strategic Eq 1 `8 • MSCI EAFE (Net) ¢- January2009- Decerrber2021 Dec2021 Dec2020 Dec2019 Dec2018 Dec2017 Dec2016 Dec2015 Dec2014 Dec2013 Lazard Intl Strategic Eq I 0.54% 0.56% 0.24% 0.50% 1.00% 1.61% 3.00% 4.28% 2.97% Grays tone Consultingsm Page 63 DJ rD 0 0 Lu Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager Ls Morningstar EnergyUrrited Partnership: Return Raik Calendar Year Retum Jarniary2015 - Decerrber 2021 (not annualized if less than 1 )ear) • Tortoise MIP 8 Pipelee Inst) o • ♦ Athlon MIP 5th la 25th Percentile K S. P'ipebne Iretl ■ 25th Percentile to Median ■ Alerian MMP ■ Median to 75th Percentile ■ 75th to 95th Percentile lir Illi IIIY _...... �.- 7 Years ending 12/31/2021 1 quarter 1 year 3)ears Spars 7)e8rs 2021 2020 2019 2018 2017 2016 2015 2014 Tortoise MLP&Pipeline lnstl 0.89% 40.81% 5.53% -0.26% -1.49% Tortoise MU, & Pipeline lnstl 40.81% -29.51% 18.39% -15.14% -1.03% 42.12% -35.80% 11.66% Medan MLP 0.55% 40.17% 2.12% -2.70% -5.06% NerianMLP 40.17% -28.69% 6.56% -12.42% -6.52% 18.31% -32.59% 4.80% Risk / Return: 7 Years ending 12/31/2021 Lead Portfolio Manager. Team Managed Manager Tenure: June 2011 - December 2021 ¢ a. 1aK Standard Dev iation �� - ng. 201 ��„ Ds�,7 adar., 7 Years ending 12/31/2021 Return StdDk Dev Beta Alpha RSquared „e. Market tee. Market Sharpe Portfolio Performance vs. Alerian MLP DC Market (%1 1%1 June 2011 - December 2021 Annualized Cumulative TartolseMLP &Pipelinelnstl -1.49 27.58 0.76 1.88 90.62 -0.08 Annualized Return % (%) Cumulative Return(%)Excess Return (%) Excess Return (%) Alerian MLP -5.06 34.45 1.00 0.00 100.00 -0.17 Tortoise MLP & Pipeline Inst 4.82 64.53 4.21 57.90 Manager 10 Benchmark Alpha January2015- Decen ter 2021 (60 -Month Wiring Wtndatis, Carprted Yearly) • Tortoise M -P & Pipeline Ins] • Ale]an MP 4 1 January 2015 - December 2021 Dec 2021 Dec 2020 Dec 2019 Tortoise MLP & Pipeline Inst) 0.58% 3.39% 4.58% Graystone Consulting' P age 64 Zephyr StyIeADVISOR Zephyr Sty leADVISOR: MSSB - Tampa, FL Manager vs PSN CF Intermediate Filed Income Gress: Return Rank Calendar Year Return January 2012 - December 2021 (not annualized if less than 1 year) • Sage h6rmTaxable(Gross) .,c ♦ 6h 1o2S lParcenrm U.SGov4Cretltl • 5X,b25cl ibrcenAb K •1:1 25MPoto7511ebrcedis,ille ? ■ Metlen b75N hE,cenik ■75P b 9511Porcmee K •: f M. _ r O �F ■age FiYrmTaxaMe(Goss) ■ e,Mtriaysherm .T.V•orec• ii 10 Years ending 12/31/2021 1 quarter 1 year 3 years 5 years 7 years 10 years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Sag elnterm Tarable(Gross) -0.49% -0.79% 4.75% 3.51% 2.98% 2.83% Sage Irterm Taxable (Gr o) -0.79% 7.83% 7.45% 0.75% 2.59% 2.09% 1.23% 2.99% -0.32% 4.89% 5.39% 6.13% Bbg. Badays Imam. U.S. Gorr/Crack -0.57% -1.44% 3.86% 2.91% 2.53% 2.38% eb9. Baclayss.Inem. U.S. Gwvaedt -1.44% 6.43% 6.80% 0.88% 2.14% 2.08% 1.07% a13% -0.86% 3.89% 5.80% 5.89% Risk/ Retum: 10 Years ending 12/31/2021 8 Lead Portfolio Manager: Members of Irnesfinent Ccnnittee (IC) Manager Tenure: January 1997 December 2021 _-.-------->:-'---- t,9, . �.. Standard Deviation en, e.,,as e,.mm e... r-,.,, a«zo,s o,.zoz, 10 Years ending 12/31/2021 R tare smDev �y) (�) Beta Alpha xe. Market Rsgeared a.(x•�ket Sharpe Ratio Portfolio Performance t Bbg. BC Interm. U.S. Govt/Credit rdarket January 1997 - December 2021 Annualized Cumulative Sage Intens Taxable (Gross) 2.83 2.39 1.00 0.45 81.51 0.93 Annualized Return (%) Cumulative Return (%) E1bess Return (%) Excess Return (%) Bbg. Barclays Inform. U.S. GeV/Credit 2.38 2.16 1.00 0.00 100.00 0.82 Sage IntermTanble(Gross) 4.74 218.07 0.30 22.20 Manager es Benchmark Alpha January2008 - Decerrber 2021(50 -Month Moving Wndoes, Computed Yearly) ._. _. __ • Sage !storm Taxable (Gross) n� ■Bbg Barclays Irhiam. U.S. GaNtredl I _ 1 1 IIII 1 -, .. January 2008 - December 2021 Dec 2021 Dec 2020 Dec 2019 I Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Dec 2013 Dec 2012 Sage Interm Taxable (Gross) 0.40% 0.26% 0.37% 1 0.22% 0.33% 0.45% 0.43% 0.46% 0.74% 0.53% Graystone ConsultingsM P age 65 Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB - Tampa, FL Manager vs Momingstar Intermediate Core: Retum Rank January 2015 - December 2021 (not annualized if less than 1 year) Calendar Year Return • . Bond l : ®usomberg Goolays USA... ♦ Bloomberg Barclays USAggregab • aMb25b Parolla Me tt c 0 Boom , Goodman Gore Plus aSand I ■ BoortLarg Barclays U.Bfggregab te is ■ median b MAI Percent. ■ 7.11aa enrleb Medan tt ■ ]SNb95b Porcenlla ■ 7 Years ending 12/31/2021 1 quarter 1ysar 3years 5years 7years 2021 2020 2019 2018 2017 2016 2015 2014 AMG Bald Gond/nen Core Paas Bad I -0.12% 0.21% 4.49% 3.58% 3.20% AMG Beutel Goodman Core Plus Bad 1 0.21% 5.24% 8.17% -0.32% I 4.86% 4.37% 0.18% 7.23% Bloernlerg Berdhya U.S. Agpegate 0.01% -1.54% 4.79% 3.57% 3.00% Bloomberg Barclays U.S. Aggregate -1.54% 7.51% 8.72% 0.01% 3.54% 2.65% 0.55% 5.97% Risk /Retum: 7Years ending 12/31/2021 ADUXvs. Index Manager Tenure: August 2011- Decenter 2021 1. 0 o„, a. �% * • 1 Standard Deviation 5510„919920„ 91.02 ,9 o0.20,5 %%20„ 9,209 0%2021 B wrn 7 Years ending 12/31/2021 �y,1 sm Dev t%1 sera Alpha B -Squared Sharpe vs. Market ver. market Baro Portfolio Performance vs. Bloomberg Barc ads U.S. Aggregate Market li 1 I°4I August 2011 - December 2021 Annualized Cumulative AMG BaGoodman Core Plus Bend I 3.20 4.12 0.83 0.74 39.96 0.57( Annualized Retum%ted ) Cumulative Retum (%) Excess Retum (%) Excess Return (%) Bloomberg Barleys U.S. Agate 3.00 3.12 1.00 0.00 100.00 0.69 Aran Beutel Goodman Core Plus Bondi 4.12 52.34 1.02 14.82 Manager vs Benchmark Alpha January2015- Decenter 2021 (60-MGrdh Moping Wlydem, Carpeted Yearly) • AMG Beutel Goodman Core Plus Bond I • Bloomberg Barclays U.S. Aggregate C o - January 2015 - December 2021 Dec 2021 Dec 2020 Dec 2019 AMG Beutel Goodman Cae Plus Bad I 0.31% 0.37% 0.99% Graystone Consultingsm P age 66 DJ 0'a rD UJ 0 Lk) Zephyr StyIeADVISOR Zephyr StyleADVISOR: MSSB-Tampa, FL Manager es Morningstar Emerging Mar -lets Bced: Return Rank Calendar Year Return January 2012 - December 2021 (not annualized if less than 1 year) sEM Debt !rat!s •irei Iilla ■Ie■th iPercantile ■ u 10 Years ending 12/31/2021 1 quarter 1 year 30ears 51mars 71ears 101ears 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Goldman Sachs EM Debt Instl -1.12% -3.05% 5.88% 3.71 % 4.21% 4.82% Goldman Sachs EM Debt Instl -3.05% 7.57% 13.81% -7.54% 9.30% 10.33% 0.88% 6.63% -6.00% 19.71% 6.93% 13.98% JPM EMBI Global 0.02% -1.51% 6.06% 4.47% 4.79% 4.95% JPM EMBI Global -1.51% 5.88% 14.42% -4.61% 9.32% 10.19% 1.23% 5.53% -6.58%18.54% 8.47%12.04% „• 41‘ Risk / Return: 10 Years ending 12/31/2021 _ 400 350 Lead Portfolio Manager: Finkelstein /Penfold Manager Tenure: January 2004 - December 2021 -. ". 300 250 200 100 4,66. x Standard Deaatiai 50 Deez000 De 200 0002001 D00 2009 D 01 Dec 201 0002015 O00 Oh7 Deez019 0002ort 10 Years ending 12/31/2021 R tu��rIn Std Dev Beta Alpha RSquared PA I e. v9. Market ve. Markel Sharpe Ratio Portfolio Performance vs. JPM EMBI Global Market (i ) PA I January 2004 - December 2021 Annualized Cumulative - Goldman Sachs EM Debt Instl 4.82 9.80 1.17 -0.88 96.62 0.43 Annualized (%) Cumulative Return (%) Excess Retum (%) Excess Return (%) JPM EMBI Global 4.95 8.20 1.00 0.00 100.00 0.53 Goldman Sachs EM Debt Inst) 7.22 251.02 0.45 25.86 Manager ve Benchmark Alpha January2008 - December 2021 (60 -Month Maung W ndvns, Cargrted Yearly) ■ Goldman Sachs EMDebt Inst! - 1111 ■ JPMEM31 Global < R� January2008 - December 2021 Dec 2021 Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Dec 2014 Dec 2013 Dec 2012 Goldman Sachs EM Debt Inst) -1.50% -1.64% -1.22% -0.47% 0.44% 0.60% 0.21% 0.35% -0.09% -3.33% Graystone Consulting' P age 67 rD 0 W Page 68 Disclosures Morgan Stanley Wealth Management Global Investment Committee Expected Return Estimates Methodology This tool incorporates a methodology for making hypothetical financial projections approved by the Global Investment Committee. Opinions expressed in this presentation may differ materially from those expressed by other departments or divisions or affiliates of Morgan Stanley Wealth Management. About Expected Return Estimates, Rate of Return, Standard Deviation, and Asset Class Indices Expected Return Estimates (EREs) What are EREs? Expected Return Estimates (ERES) represent one set of assumptions regarding rates of return for specific asset classes approved by the Global Investment Committee. How are EREs derived? EREs are derived using a proprietary methodology using a building block approach. Our EREs reflect expectations for a number of long-term economic and market -related factors we expect to influence capital market returns, such as population growth, productivity, earnings expectations, etc. Index returns are used for calculation of volatility and correlations. For most indices, we use data since 1994. Regarding several types of alternative investments such as hedged strategies, private equity and real estate, we apply significant statistical adjustments to historical returns in order to correct for distortions such as survivorship biases, selection biases, and returns measurement error (e.g. by consequence of stale prices in the illiquid asset classes). What else is important to know? It is important to remember that future rates of return can't be predicted with certainty and that investments that may provide higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time. This includes the potential loss of principal on your investment. Investors should carefully consider several important factors when making asset allocation decisions using projected investment performance data based on assumed rates of return on indices: Indices illustrate the investment performance of instruments that have certain similar characteristics and are intended to reflect broad segments of an asset class. Indices do not represent the actual or hypothetical performance of any specific investment, including any individual security within an index. Although some indices can be replicated, it is not possible to directly invest in an index. It is important to remember the investment performance of an index does not reflect deductions for investment charges, expenses, or fees that may apply when investing in securities and financial instruments such as commissions, sales loads, or other applicable fees. Also, the stated investment performance assumes the reinvestment of interest and dividends at net asset value without taxes, and also assumes that the portfolio is consistently "rebalanced" to the initial target weightings. Asset allocations which deviate significantly from the initial weightings can significantly affect the likelihood of achieving the projected investment performance. Another important factor to keep in mind when considering the historical and projected returns of indices is that the risk of loss in value of a specific asset, such as a stock, a bond or a share of a mutual fund, is not the same as, and does not match, the risk of loss in a broad asset class index. As a result, the investment performance of an index will not be the same as the investment performance of a specific instrument, including one that is contained in the index. Such a possible lack of "investment performance correlation" may also apply to the future of a specific instrument relative to an index. For these reasons, the ultimate decision to invest in specific instruments should not be premised on expectations that the historical or projected returns of indices will be the same as those for specific investments made. Graystone Consulting' Page 69 Disclosures Rates of Return, Standard Deviation and Asset Class Indices Standard deviation is a common risk measurement that estimates how much an investment's return will vary from its predicted average. Generally, the higher an investment's standard deviation, the more widely its returns will fluctuate, implying greater volatility. In the past, asset classes that have typically provided the highest returns have also carried greater risk. For purposes of this Presentation, the standard deviation for the asset classes shown below are calculated using data going back to 1994. It is important to note that the rates of return of the listed indices may be significantly different than the ERE or your own assumptions about the rates of return used in the Presentation. As always, keep in mind that past performance is no guarantee of future results. EREs are for illustrative purposes only and are not indicative of the future performance of any specific investment. Performance of an asset class within a portfolio is dependent upon the allocation of securities within the asset class and the weighting or the percentage of the asset class within that portfolio. Potential for a portfolio's loss is exacerbated in a downward trending market. A well -diversified portfolio is less vulnerable in a falling market. Asset allocation and diversification, however, do not assure a profit or protect against loss in a declining market. Asset class returns and standard deviations of returns projections are based on reasoned estimates of drivers of capital market returns and historical relationships. As with any return estimation discipline, the assumptions and inputs underlying the GIC's EREs may or may not reconcile with, or reflect, each investor's individual investment horizon, risk tolerance, capital markets outlook, and world view. For these reasons, and because return estimation methods are complicated, investors are encouraged to discuss returns estimation with a Morgan Stanley Financial Advisor/Private Wealth Advisor. As described, financial returns estimation involves developing a methodology for extracting expected returns and standard deviations of returns from historical data. Each returns estimation methodology is developed by selecting objective and subjective factors that vary among those developing the returns estimation model. The GIC has formulated several different methodologies and makes its return estimates available to Morgan Stanley customers. Differences exist between the various methodologies because different objective and subjective factors are incorporated into each methodology. These differences can include: the indices used as proxies for various asset categories and classes, the length of time historical index data is input into the calculations, and the resulting expected returns and volatility for each asset class. Each model may cover a greater or lesser number of asset classes than other models, the indices used to represent asset classes may be different for certain classes of assets in the models, and the GIC has more asset classes in the Alternative Investments asset category than are available in other models. Additionally, other differences may develop in the future as these methodologies are dynamic in nature and are likely to change over time. While Morgan Stanley Smith Barney LLC has not designed its returns estimation methodologies to match or address its inventory as a broker-dealer of financial products, an appearance of a conflict of interest could exist in which the GIC's EREs, if followed, guide investors in directions that support Morgan Stanley Smith Barney LLC's inventory. To the extent this is a concern to customers, they should request that a return estimation be prepared using a different third party methodology, either alone or in conjunction with a GIC model for comparison purposes. Your Financial Advisor/Private Wealth Advisor is available to explain the different returns estimation methodologies and can compare and contrast different models upon request. Return Series Adjustments A common way to forecast standard deviation, correlation and other risk metrics is to observe their average magnitude in historical return series data. We agree this is appropriate for traditional asset classes- cash, bonds and equities- and for 'alternative or absolute return' asset classes that are priced in liquid public markets and have consistent, transparent reporting requirements. However, we believe this approach dramatically understates the risk of hedged strategies and private investments, such as private equity and private real estate, while overstating their potential to diversify other risks in the portfolio. These asset classes have several pronounced biases due to voluntary reporting of performance to index providers and lack of liquidity in the underlying investments. The biases that arise include return smoothing, survivorship bias, selection bias, stale pricing and appraisal bias each of which has implications for reported risk, return and correlation of the investments (foremost amongst which is the artificial reduction of their actual risks). To address these challenges, the Global Investment Committee use econometric models to estimate the impact of each of these biases to create synthetic 'true' return series, based on the reported returns, from which we glean forecasts of the risk, return and correlation of these investments. The adjustments made are on balance conservative. They substantially increase forecasted risk, reduce forecasted return and decrease the diversification properties compared to what the historical averages of reported index returns suggest. Your Financial Advisor/Private Wealth Advisor is available to explain these methodological choices in greater detail upon request. IMPORTANT INFORMATION The Global Investment Committee (GIC) Asset Allocation Models represent asset allocation recommendations made by the GIC based on general client characteristics such as investable assets and risk tolerance. The GIC Asset Allocation Models are not representations of actual trading or any type of account, or any type of investment strategies and none of the fees or other expenses (e.g., commissions, mark-ups, mark-downs, advisory fees) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models. The GIC Asset Allocation Models are not intended to represent a client -specific suitability analysis or recommendation. The suitability of an asset allocation for a particular client must be based on the client's existing portfolio, investment objectives, risk profile and liquidity needs. Any such suitability determination could lead to asset allocation results that may differ materially from those presented herein. Each client should consult with his or her Financial Advisor/Private Wealth Advisor to determine whether the GIC Asset Allocation Models are relevant to the client's investment objectives. Graystone Consulting' rD rn 0 LID LJ Page 70 Disclosures Every client's financial circumstances, needs and risk tolerances are different. This Presentation ("Asset Allocation Review") is based on the information you provided to us, the assumptions you have asked us to make and the other assumptions indicated herein as of the date of the Presentation. This Presentation should be considered a working document that can assist you in achieving your investment objectives. You should carefully review the information and suggestions found in this Presentation and then decide on future steps. This Presentation does not constitute an offer to buy, sell, or recommend any particular investment or asset, nor does it recommend that you engage in any particular investment, manager or trading strategy. It reflects only allocations among broad asset classes. All investments have risks. The decisions as to when and how to invest are solely your responsibility. This Presentation does not purport to recommend or implement an investment strategy. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations in this Presentation. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. No investment analysis has the ability to accurately predict the future, eliminate risk or guarantee investment results. As investment returns, inflation, taxes, and other economic conditions vary from the assumptions used in this Presentation, your actual results will vary (perhaps significantly) from those presented in this Presentation. The assumed return rates in this Presentation are not reflective of any specific investment and do not include any transaction costs, management fees or expenses that may be incurred by investing in specific products. Such fees would reduce a client's returns. The actual returns of a specific investment may be more or less than the returns used in this Presentation. The return assumptions are based on historic rates of return of securities indices, which serve as proxies for the asset classes. Moreover, different forecasts may choose different indices as a proxy for the same asset class, thus influencing the return of the asset class. The return assumptions used in this are estimates based on models that employ fundamental macroeconomic and econometric data together with average annual returns for the index used as a proxy for each asset class to forecast returns prospectively. The portfolio returns are calculated by weighting the individual return assumptions disclosed herein for each asset class according to your portfolio allocation. During the preparation of this Presentation, your Financial Advisor/Private Wealth Advisor may have refined the asset allocation strategy to develop a strategy that optimizes the potential returns that could be achieved with the appropriate level of risk that you would be willing to assume. Morgan Stanley cannot give any assurances that any estimates, assumptions or other aspects of the Presentation will prove correct. It is subject to actual known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those shown. This Presentation speaks only as of the date of this Presentation. Morgan Stanley Smith Barney expressly disclaims any obligation or undertaking to update or revise any statement or other information contained herein to reflect any change in past results, future expectations or circumstances upon which that statement or other information is based. Hypothetical Portfolio Returns The proposed asset allocations (also referred to herein as Hypothetical Portfolios) in this report are hypothetical and do not reflect actual portfolios but simply reflect selected indices that are representative for asset classes in the GIC's current strategic allocations. Hypothetical performance results have inherent limitations. The past performance shown here is simulated performance based on benchmark indices, not investment results from an actual portfolio or actual trading. There can be large differences between hypothetical and actual performance results achieved by a particular asset allocation. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client -specific factors (such as investment vehicle selection, timing of contributions and withdrawals, restrictions and rebalancing schedules). Clients would not necessarily have obtained the performance results shown here if they had invested in accordance with any GIC asset allocation, idea or strategy for the periods indicated. Despite the limitations of hypothetical performance, these hypothetical performance results may allow clients and Financial Advisors to obtain a sense of the risk / return trade-off of different asset allocation constructs. The hypothetical returns are not intended to forecast potential returns but rather to help identify relative patterns of behavior among asset classes which, when put in different combinations, assume various levels of risk. Each analysis in this report contains simulations of performance. The calculation of the performance of these Hypothetical Portfolios begins with the applicable GIC Asset Allocation Model for a particular risk profile. The GIC has established eight model portfolios conforming to various risk tolerance levels. The least risky model corresponds to risk profile 1 with the most risky being risk profile 8. Thus, as the risk profile increases, so does the level of risk. Once the appropriate risk profile levels have been determined, your Financial Advisor/Private Wealth Advisor then customizes the GIC model based on each client's circumstances. The GIC models reflect historical performance of the indices used as proxies. Graystone Consulting' P age 71 Disclosures The calculation of the Hypothetical Portfolio returns assumes reinvestment of dividends, capital gains and interest but do not reflect any transaction costs, such as taxes, fees or charges, that would apply to actual investments. Such fees and charges would reduce performance. Hypothetical performance is shown for illustration purposes only, has inherent limitations and does not reflect actual performance, trading or decision making. The results may vary and reflect economic or market factors such as liquidity constraints or volatility, which have an important impact on decision making and actual performance. This hypothetical performance is likely to differ from actual practice in client accounts. Fees reduce the performance of actual accounts: Unless specified in the Client Fee Assumptions portion of this Appendix, none of the fees or other expenses (e.g. commissions, mark- ups, mark-downs, advisory fees) associated with actual trading or accounts are reflected in the GIC asset allocation strategy or ideas. Fees and/or expenses would apply to clients who invest in investments in an account based on these asset allocations, and would reduce clients' returns. The impact of fees and/or expenses can be material. Investing in the market entails the risk of market volatility. The value of all types of securities may increase or decrease over varying time periods. Indices are unmanaged and an investor cannot invest directly in an index. They are shown for illustration purposes only and do not show the performance of any specific investment. Reference to an index does not imply that the portfolio will achieve return, volatility or other results similar to the index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error target, all of which are subject to change over time. This report is not a financial plan and does not, in and of itself, create an investment advisory relationship between you and your Financial Advisor/Private Wealth Advisor to the extent that one did not exist. In providing you with this report, we are not providing services as a fiduciary either under the Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of 1986, and any information contained in this report is not intended to form the primary basis for any investment decision by you, or investment advice or a recommendation relating to the purchase or sale of any securities for either ERISA or Internal Revenue Code purposes. Morgan Stanley, its affiliates, and its Financial Advisors or Private Wealth Advisors do not provide legal or tax advice. We strongly recommend that you consult your own legal and/or tax adviser to determine whether the analyses in these materials apply to your personal circumstances. This material and any tax -related statements are not intended or written to be used and cannot be use or relied upon, by any taxpayer for the purpose of avoiding taxpayer penalties under either State or Federal tax laws. © 2019 Morgan Stanley Smith Barney LLC. Member SIPC. Graystone Consulting' v Ott rD 00 0 W Page 72 Important Morgan Stanley Disclosures Graystone Consulting"" ZEPHYR STYLE ADVISOR DISCLAIMER The following analysis is directed only to the client for whom the evaluation was prepared and is based on published investment manager rate of return data, capital market indices, custom (benchmarks, indices and universes), as well as software developed by Zephyr Associates. Investment manager rate of return data includes: Informa Plan Sponsor Network, Morgan Stanley (MSSB) Fiduciary Services, Morgan Stanley Global Investment Solutions, Collective Trust Funds and Consulting Group Capital Market Funds Databases. Capital markets index data includes: Capital market indices (supplied by Zephyr), Canadian indices (supplied by Zephyr), Salomon Brothers Fixed Income indices, Morgan Stanley Capital International indices, and Dow Jones Global indices. Zephyr StyIeADVISOR uses principles of William Sharpe's theory of returns -based style analysis. Returns -based style analysis assists in identifying investment style without examining the individual security holdings of a portfolio. StyIeADVISOR regresses the historical returns of the individual manager(s) against different style indices to identify the pattern of returns that the fund is most closely correlated to. MSSB does not recommend the use of returns -based style analysis without the supporting fundamental research of the fund (research attribution reports). The underlying data is believed to be reliable but accuracy and completeness cannot be assured. While the historical rates of return described in this report are believed to accurately reflect the overall nature of the portfolio, the constituent securities have not been reviewed. This evaluation is for informational purposes only and is not intended to be an offer, solicitation or recommendation with respect to the purchase or sale of any security or a recommendation of the services provided by any money management organization. Past results are not necessarily indicative of future performance. Gross Rates of Return The investment results depicted herein represent historical Gross performance before the deduction of investment management fees and are based on settlement date accounting methods. Annual, cumulative and annualized total returns are calculated assuming reinvestment of dividends and income plus capital appreciation. The client is referred applicable Morgan Stanley ADV brochures, available at www.smithbarney.com/adv or from your Financial Advisor. Actual returns will be reduced by expenses that may include management fees and cost of transactions. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, on an account with a 2% fee, if the gross performance is 10%, the compounding effect of the fees will result in a net performance of approximately 7.81%. This Report is for one-on-one client presentations only. International and Small Capitalization Securities To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing involving foreign, economic, political, and/or legal factors. International investing may not be for everyone. In addition, small capitalization securities may be more volatile than those of larger companies, but these companies may present greater growth potential. Graystone Consulting' cm rD CL tea, o= (D Cr N 3* N D Page 73 Important Morgan Stanley Disclosures Graystone Consulting"" This document has been prepared at your request for your personal use in order to assist you in evaluating asset allocation strategies, investment objectives and disciplines and various available investment products. It is not a recommendation of a particular program, portfolio, investment manager, fund or other investment product. It is not tax or legal advice. If you have asked us to do so, we have included one or more investment managers or funds that are not available in Morgan Stanley's investment advisory programs. Morgan Stanley does not recommend any such manager or fund and takes no responsibility for the accuracy of any information provided by such manager or fund. You should contact such managers or the sponsors of such funds directly for performance and other information. You should not use the document as the sole basis for investment decisions. Moreover, you should not use investment performance alone to make any investment decision. You should consider other factors such as the experience and investment style of an investment manager as compared to your individual investment objectives, risk tolerance and time horizons. Performance Information The investment results depicted herein represent historical Gross performance with no deduction for investment management fees or transaction costs. Such figures reflect the reinvestment of dividends. Actual returns will be reduced by such expenses. You should refer to Morgan Stanley's ADV brochure for full disclosure of Morgan Stanley's fees. As fees are deducted from an account on a quarterly basis, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, on an account with a 2% fee, if the gross performance is 10%, the compounding effect of the fees will result in a net performance of approximately 7.81%. You would not necessarily have obtained the performance results shown in the document if you had been invested with these managers or funds over the time periods illustrated. Actual performance of individual accounts will vary due to factors such as the timing of contributions and withdrawals, individual client restrictions, rebalancing schedules and fees. Moreover, the illustrations set forth in the document benefit from the availability of actual historical returns. Manager or funds that have not performed as well as those illustrated may not have been considered for inclusion in the document. Such hindsight is obviously not available to an investment adviser such as Morgan Stanley when making "real time" investment recommendations. SOURCE OF PERFORMANCE INFORMATION FOR FUNDS: For any fund shown in this report, the performance data is obtained from databases maintained by parties outside Morgan Stanley . This data has been included for your information, and has not been verified by Morgan Stanley in any way. See "Sources of Information" below. NET PERFORMANCE See the attached Morningstar profiles for each fund in the report for standardized fund performance (i.e. returns net of any maximum sales charges that apply if you purchase the fund outside of our investment advisory programs) and also returns net of the maximum annual investment advisory fees that apply if you purchase the fund in one of our investment advisory programs. You should carefully read the manager/fund profiles, which may contain more up-to-date performance information than in this report. Investment Options May be Managed by or Affiliated with Morgan Stanley This report may include investment options that are managed by or affiliated with Morgan Stanley . Morgan Stanley may have incentive to recommend such investment options to you because we may earn more compensation if you invest in these investment options than if you invest in other investment options. © 2012 Morningstar, Inc. All Rights Reserved. The data contained in this report relating to funds: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this data. Past performance is no guarantee of future results. ©2012 Morgan Stanley Smith Barney LLC. Member SIPC. Consulting Group and Investment Advisory Services are businesses of Morgan Stanley Smith Barney LLC. Graystone Consulting is a business unit of Morgan Stanley Smith Barney LLC. Graystone Consulting' Page 74 Important Morgan Stanley Disclosures Graystone Consulting"" Alpha: Alpha is a risk (beta adjusted) measurement. Officially, alpha measures the difference between a portfolio's actual returns and what it might be expected to deliver based on its level of risk. Higher risk generally means higher reward. A positive alpha means the fund has beaten expectations. A negative alpha means that the manager failed to match performance with risk. If two managers had the same return but one had a lower beta, that manager would have a higher alpha. StyIeADVISOR uses the standard intercept calculation. Beta: Beta represents the systematic risk of a portfolio and measures its sensitivity to a benchmark. A portfolio with a beta of one is considered as risky as the benchmark and would therefore provide expected returns equal to those of the market during both up and down periods. A portfolio with a beta of two would move approximately twice as much as the benchmark. Excess Return - The difference between the returns of two portfolios. Usually excess return is the difference between a manager's return and the return of a benchmark for that manager. In the context of a beta benchmark, excess return refers to the difference between a manager or market benchmark and Tbills. Down Capture Ratio: the ratio of the manager's overall performance to the benchmark's overall performance, considering only periods that are negative in the benchmark. Excess Returns: represent the average quarterly total returns of the manager relative to its benchmark. A manager with a positive Excess Return has on average outperformed its benchmark on a quarterly basis. This statistic is obtained by subtracting the benchmark return from the manager's return. Manager Style Graph: an attempt to depict how the manager's historical returns (not actual portfolio holdings) "track" a group of benchmarks. For example, Domestic Equity products will be presented versus Large and Small, Growth and Value benchmarks. If the R2 of the Style Benchmark is lower than 80%, then the attempt to measure the manager's style was problematic (this will often happen with non- diversified portfolios, or eclectic investment disciplines.) Moving Window: multiple data calculations can be done within a single span of time. For example, in a 5 year period you can display five 1 -year values with non -overlapping data, or you can display nine 3 -year values by moving each 3 -year "moving window" one quarter at a time. Each discrete time period, either overlapping or not, is referred to as a "moving window." Return: A compounded and annualized rate of return. R -Squared: (Correlation Squared) - A measure of how well two portfolios track each other. R -squared ranges between zero and 100%. An R -squared of 100% indicates perfect tracking, while an R -squared of zero indicates no tracking at all. R -squared is used in style analysis to determine how much information about a return series the style benchmark has been able to capture. The higher the R -squared, the better the benchmark. Graystone Consulting' v 0 fD 00 0 lD Page 75 Important Morgan Stanley Disclosures Grays Consultin'" Sharpe Ratio: The Sharpe Ratio, developed by Professor William F. Sharpe, is a measure of reward per unit of risk -- the higher the Sharpe Ratio, the better. It is a portfolio's excess return over the risk-free rate divided by the portfolio's standard deviation. The portfolio's excess return is its geometric mean return minus the geometric mean return of the risk-free instrument (by default, t -bills). Standard Deviation: quantifies the volatility associated with a given product. The statistic measures the quarterly variation in returns around the mean return. Style Benchmark: the blended benchmark that best matches the manager's returns (lowest tracking error.) Tracking Error: represents the Standard Deviation of the Excess Return and provides a historical measure of the variability of the manager's returns relative to its benchmark. Up Capture Ratio: measures the manager's overall performance to the benchmark's overall performance, considering only periods that are positive in the benchmark. Universe: a peer group of managed investment products with reasonably similar characteristics. Grays tone ConsultingsM Graystone Consulting- A business of Morgan Stanley Updated Values / Recommendations Page 76 Graystone Consulting v as rD co w 0 -htip City of Atlantic Beach Police Officers' Pension Updated Values As of February 2, 2022 6 Value % of Total Target Curre ecommended Resulting % Fiscal YTD Return Since 9/30/2021 Dollar Weighted- Net JP Morgan - Equity Income $2,937,522 18.05% 18.05% 10.1% Columbia - Large Cap Growth $1,008,483 6.20% 6.20% -10.8% Pioneer - Large Cap Growth $1,354,682 8.32% 8.32% 4.6% Vanguard S&P 500 Index ETF $905,876 5.57% 5.57% 7.2% Invesco - S&P 500 Equal Weight ETF $636,144 3.91% 3.91% 5.4% Total Large Cap Equity $6,842,706 42.04% 33.00% 20.00 - 50.00% 42.04% Boston - SMID Value $1,347,154 8.28% 8.28% 3.1% Riverbridge- SMID Growth $839,943 5.16% 5.16% -13.3% Total Mid-, Small, or Smid- Cap Equit $2,187,097 13.44% 10.00% 5.00 - 20.00% 13.44% Lazard - International Strategic Equity $1,135,895 6.98% 6.98% -3.4% Vanguard Total International Stock ETF $1,022,585 6.28% 6.28% 0.5% Total International Equit $2,158,480 13.26% 15.00% 10.00 - 20.00% 13.26% Sage - Fixed Income $2,544,787 15.63% 15.63% -2.0% AMG Mgrs DoubleLine - Core Fixed Income $902,641 5.55% 5.55% -2.3% Goldman Sachs Emerging Markets Debt $223,923 1.38% 1.38% -3.5% Total Fixed Income $3,671,351 22.55% 30.00% 20.00 -40.00% 22.55% Tortoise - MLP & Pipeline $751,706 4.62% 4.62% 12.8% Principal - REIT $656,625 4.03% 4.03% 7.2% Total Alternative Investments $1,408,331 8.65% 6.00% 1.00 - 11.00% 8.65% CGA Cash -$1,118 -0.01% -0.01% Deposits & Disbursements* $10,921 0.07% 0.07% Total Cash & Equivalents $9,803 0.06% 6.00% 0.00 - 11.00% 0.06% ITotal Fund 100.00% $0 100.00% 1.4% *Value as of 12/31/2021 Dollar -Weighted Returns The portfolio returns are calculated on a dollar -weighted basis, accounting for deposits and cash flows upon receipt. The dollar -weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar -weighted return is the appropriate measurement to evaluate the fund's performance in relation to the statement of investment policy and guidelines. The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. Page 77 Graystone Consulting' City of Atlantic Beach General Employees' Pension Updated Values As of February 2, 2022 6 Value % of Total Current Policy Target Gurre ecommended ^� Resulting °k Fiscal YTD Return Since 9/30/2021 Dollar Weighted- Net JP Morgan - Equity Income $4,778,938 17.83% 17.83% 10.1% Columbia - Large Cap Growth $1,662,860 6.20% 6.20% -10.7% Pioneer - Large Cap Growth $2,240,011 8.36% 8.36% 4.9% Vanguard S&P 500 Index ETF $1,515,398 5.65% 5.65% 7.3% Invesco - S&P 500 Equal Weight ETF $1,046,942 3.91% 3.91% 5.6% Total Large Cap Equity $11,244,149 41.95% 33.00% 20.00 - 50.00% 41.95% Boston - SMID Value $2,213,804 8.26% 8.26% 3.2% Riverbridge- SMID Growth $1,350,601 5.04% 5.04% -13.1% Total Mid-, Small, or Smid- Cap Equit $3,564,405 13.30% 10.00% 5.00 - 20.00% 13.30% Lazard - International Strategic Equity $1,880,923 7.02% 7.02% -3.4% Vanguard Total International Stock ETF $1,691,617 6.31% 6.31% 0.5% Total International Equit $3,572,540 13.33% 15.00% 10.00 - 20.00% 13.33% Sage - Fixed Income $4,245,470 15.84% 15.84% -2.0% AMG Mgrs DoubleLine - Core Fixed Income $1,481,277 5.53% 5.53% -2.3% Goldman Sachs Emerging Markets Debt $413,363 1.54% 1.54% -3.5% Total Fixed Income $6,140,110 22.91% 30.00% 20.00 -40.00% 22.91% Tortoise - MLP & Pipeline $1,234,811 4.61% 4.61% 12.7% Principal - REIT $1,050,801 3.92% 3.92% 7.4% Total Alternative Investments $2,285,612 8.53% 6.00% 1.00 - 11.00% 8.53% CGA Cash -$3,413 -0.01% -0.01% Deposits & Disbursements* $1 0.00% 0.00% Total Cash & Equivalents -$3,412 -0.01% 6.00% 0.00 - 11.00% -0.01% IIMINIMIIII $26,803,404 100.00% $0 100.00% 1.4% *Value as of 12/31/2021 Dollar -Weighted Returns The portfolio returns are calculated on a dollar -weighted basis, accounting for deposits and cash flows upon receipt. The dollar -weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar -weighted return is the appropriate measurement to evaluate the fund's performance in relation to the statement of investment policy and guidelines. The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. Page 78 Graystone Consulting' o.� 771 Ota rD 00 U1 0 -h lD U.) Performance Appendix Performance Data below is net offees. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Account Name QTD 1 3 5 10 Since Inception YTD Year Years Years Years Inception Date 0.21 0.21 -- -- -- 2.47 09/01/2019 27.78 27.78 19.74 9.70 10.82 9.52 03/12/2010 0.01 0.01 -- -- -- 0.30 09/01/2019 9.47 9.47 30.35 23.51 16.33 14.86 03/12/2010 1.28 1.28 1.46 1.27 1.36 1.91 03/10/2010 -3.05 -3.05 -- -- -- 2.10 09/01/2019 -- -- -- -- -- 9.47 05/18/2021 25.85 25.85 18.33 13.36 12.95 11.21 03/12/2010 5.99 5.99 -- -- -- 11.10 09/01/2019 24.09 24.09 28.11 20.83 -- 18.83 08/19/2016 40.18 40.18 -- -- -- 35.84 11/18/2020 5.62 5.62 27.18 20.71 16.06 15.33 03/12/2010 -1.34 -1.34 4.23 2.96 -- 2.12 04/24/2013 40.81 40.81 -- -- -- 1.61 09/01/2019 28.68 28.68 -- -- -- 25.30 09/01/2019 8.92 8.92 -- -- -- 13.72 09/01/2019 AMG Beutel Goodman - Core Plus Fixed Income -0.12 Boston - SMID Value 4.63 CGA - Cash 0.00 Columbia Mgmt - Select LC Grwth 0.50 Deposit & Disbursement Account 1.28 Goldman Sachs - Emerging Markets Debt -1.12 Invesco - S&P 500 Equal Weight ETF 8.88 JP Morgan - Equity Income 8.81 Lazard - International Strategic Equity -0.81 Pioneer - Large Cap Growth 10.22 Principal - REIT 14.60 Riverbridge - SMID Growth 0.69 Sage Advisory - Int. Fixed Income -0.59 Tortoise - MLP & Pipeline 0.89 Vanguard - S&P 500 Index ETF 11.45 Vanguard - Total International Stock ETF 2.01 All performance above are Time Weighted(TWR) performance Glossary of Terms Beta: A measure of the sensitivity of a portfolio's time weighted return (net of fees) against that of the market. A beta greater than 1.00 indicates volatility greater than the market. Consistency: The percentage of quarters that a product achieved a rate of retum higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Core: Refers to an investment strategy mandate that is blend of growth and value styles without a pronounced tilt toward either style. Cumulative Selection Return (Cumulative Return): Cumulative investment performance over a specified period of time. Distribution Rate: The most recent distribution paid, annualized, and then divided by the current market price. Distribution rate may consist of investment income, short-term capital gains, long-term capital gains, and/or return of capital. Down Market Capture: The ratio of average portfolio returns over the benchmark during periods of Active Contribution Return: The gain or loss percentage of an investment relative to the performance of the investment benchmark Active Exposure: The percentage difference in weight of the portfolio compared to its policy benchmark. Active Return: Arithmetic difference between the manager's retum and the benchmark's return over a specified time period. Actual Correlation: A measure of the correlation (linear dependence) between two variables X and Y, with a value between +1 and -1 inclusive. This is also referred to as coefficient of correlation. Alpha: A measure of a portfolio's time weighted return in excess of the market's return, both adjusted for risk. A positive alpha indicates that the portfolio outperformed the market on a risk-adjusted basis, and a negative alpha indicates the portfolio did worse than the market. Best Quarter: The highest quarterly return for a certain time period. Ilia rD 00 tT 0 -h lD W negative benchmark retum. Lower values indicate better product performance. Downside Risk: A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the value, the more risk the product has. Downside Semi Deviation: A statistical calculation that measures the volatility of returns below a minimum acceptable return. This return measure isolates the negative portion of volatility: the larger the number, the greater the volatility. Drawdown: A drawdown is the peak -to -trough decline during a specific period of an investment, fund or commodity. Excess over Benchmark: The percentage gain or loss of an investment relative to the investment's benchmark. Excess Return: Arithmetic difference between the manager's return and the risk-free return over a specified time period. Growth: A diversified investment strategy which includes investment selections that have capital appreciation as the primary goal, with little or no dividend payouts. These strategies can include reinvestment in expansion, acquisitions, and/or research and development opportunities. Growth of Dollar: The aggregate amount an investment has gained or lost over a certain time period, also referred to as Cumulative Return, stated in terms of the amount to which an initial dollar investment would have grown over the given time period. Investment Decision Process (IDP): A model for structuring the investment process and implementing the correct attribution methodologies. The IDP includes every decision made concerning the division of the assets under management over the various asset categories. To analyze each decision's contribution to the total return, a modeling approach must measure the marginal value of every individual decision. In this respect, the hierarchy of the decisions becomes very important. We therefore use the IDP model, which serves as a proper foundation for registering the decisions and relating them to each other. Information Ratio: Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Jensen's Alpha: The Jensen's alpha measure is a risk-adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market retum. This metric is also commonly referred to as alpha.. Kurtosis: A statistical measure that is used to describe the distribution, or skewness, of observed data around the mean, sometimes referred to as the volatility of volatility. Maximum Drawdown: The drawdown is defined as the percent retrenchment from a fund's peak to the fund's trough value. It is in effect from the time the fund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peak to the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). It measures the largest percentage drawdown that has occurred in any fund's data record. Modern Portfolio Theory (MPT): An investment analysis theory on how risk -averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Mutual Fund (MF): An investment program funded by shareholders that trade in diversified holdings and is professionally managed. Peer Group: A combination of funds that share the same investment style combined as a group for comparison purposes. Peer/ Plan Sponsor Universe: A combination of asset pools of total plan investments by specific sponsor and plan types for comparison purposes. Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transaction data for these assets are not processed or maintained by us. Common examples of these include life insurance, some annuities and some assets held externally. Performance Statistics: A generic term for various measures of investment performance measurement terms. Portfolio Characteristics: A generic term for various measures of investment portfolio characteristics. Preferred Return: A term used in the private equity (PE) world, and also referred to as a "Hurdle Rate." It refers to the threshold return that the limited partners of a private equity fund must receive, prior to the PE firm receiving its carried interest or "carry." Ratio of Cumulative Wealth: A defined ratio of the Cumulative Return of the portfolio divided by the Cumulative Return of the benchmark for a certain time period. Regression Based Analysis: A statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables Residual Correlation: Within returns -based style analysis, residual correlation refers to the portion of a strategy's return pattern that cannot be explained by its correlation to the asset -class benchmarks to which it is being compared. Return: A rate of investment performance for the specified period. Rolling Percentile Ranking: A measure of an investment portfolio's ranking versus a peer group for a specific rolling time period (i.e. Last 3 Years, Last 5 years, etc.). R -Squared: The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R -Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. SA/CF (Separate Account/Comingled Fund): Represents an acronym for Separate Account and Commingled Fund investment vehicles. Sector Benchmark: A market index that serves as a proxy for a sector within an asset class. Sharpe Ratio: Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance results in. Standard Deviation: A statistical measure of the range of a portfolio's performance; the variability of a return around its average retum over a specified time period. o.t t]ta 771 rD 00 0 -h lD U.) Total Fund Benchmark: The policy benchmark for a complete asset pool that could consist of multiple investment mandates. Total Fund Composite: The aggregate of multiple portfolios within an asset pool or household. Tracking Error: A measure of standard deviation for a portfolio's investment performance, relative to the performance of an appropriate market benchmark. Treynor Ratio: A ratio that divides the excess return (above the risk free rate) by the portfolio's beta to arrive at a unified measure of risk adjusted return. It is generally used to rank portfolios, funds and benchmarks. A higher ratio is indicative of higher returns per unit of market risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing market risk. Up Market Capture: The ratio of average portfolio returns over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Upside Semi Deviation: A statistical calculation that measures the volatility of returns above an acceptable retum. This retum measure isolates the positive portion of volatility: the larger the number, the greater the volatility. Value: A diversified investment strategy that includes investment selections which tend to trade at a lower price relative to its dividends, earnings, and sales. Common attributes are stocks that include high dividend, low price -to -book ratio, and/or low price -to -earnings ratio. Worst Quarter: The lowest rolling quarterly retum for a certain time period. Information Disclosures Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition and/or investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment. Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. The performance data shown reflects past performance, which does not guarantee future results. Investment return and principal will fluctuate so that an investor's shares when redeemed may be worth more or less than original cost. Please note, current performance may be higher or lower than the performance data shown. For up to date month-end performance information, please contact your Financial Advisor or visit the funds' company website. Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. The prospectus and, if available the summary prospectus, contains this and other information that should be read carefully before investing. Investors should review the information in the prospectus carefully. To obtain a prospectus, please contact your Financial Advisor or visit the funds' company website. Past performance is no guarantee of future results. Investing involves market risk, including possible loss of principal. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Small and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than those of larger, more established companies. Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds. The retum of principal in bond funds, and in funds with significant bond holdings, is not guaranteed. International securities' prices may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets. Alternative investments, including private equity funds, real estate funds, hedge funds, managed futures funds, and funds of hedge funds, private equity, and managed futures funds, are speculative and entail significant risks that can include losses due to leveraging or\other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and/or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and risks associated with the operations, personnel and processes of the advisor. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk; and MLP interests in the real estate sector are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions. Mortgage backed securities also involve prepayment risk, in that faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield -to -maturity of a mortgage-backed security and prepayment risk includes the possibility that a fund may invest the proceeds at generally lower interest rates. Tax managed funds may not meet their objective of being tax -efficient. Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. High yield fixed income securities, also known as `junk bonds", are considered speculative, involve greater risk of default and tend to be more volatile than o.� 771 Otl rD 00 00 0 -h lD U.) investment grade fixed income securities. Credit quality is a measure of a bond issuer's creditworthiness, or ability to repay interest and principal to bondholders in a timely manner. The credit ratings shown are based on security rating as provided by Standard & Poor's, Moody's and/or Fitch, as applicable. Credit ratings are issued by the rating agencies for the underlying securities in the fund and not the fund itself, and the credit quality of the securities in the fund does not represent the stability or safety of the fund. Credit ratings shown range from AAA, being the highest, to D, being the lowest based on S&P and Fitch's classification (the equivalent of Aaa and C, respectively, by Moody(s). Ratings of BBB or higher by S&P and Fitch (Baa or higher by Moody's) are considered to be investment grade -quality securities. If two or more of the agencies have assigned different ratings to a security, the highest rating is applied. Securities that are not rated by all three agencies are listed as "NR". "Alpha tilt strategies comprise a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward potentially outperforming the market in an effort to enhance overall investment returns. Tilt strategies are subject to significant timing risk and could potentially expose investors to extended periods of underperformance." Custom Account Index: The Custom Account Index is an investment benchmark based on your historical target allocations and/or manager selection that you may use to evaluate the performance of your account. The Custom Account index does take into consideration certain changes that may have occurred in your portfolio since the inception of your account, i.e., asset class and/or manager changes. However, in some circumstances, it may not be an appropriate benchmark for use with your specific account composition. For detailed report of the historical composition of this blend please contact your Financial Advisor. Peer Groups Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach. Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetrics.com/style-peer-groups Peer Group Ranking Methodology A percentile rank denotes the value of a product in which a certain percent of observations fall within a peer group. The range of percentile rankings is between 1 and 100, where 1 represents a high statistical value and 100 represents a low statistical value. The 30th percentile, for example, is the value in which 30% of the highest observations may be found, the 65th percentile is the value in which 65% of the highest observations may be found, and so on. Percentile rankings are calculated based on a normalized distribution ranging from 1 to 100 for all products in each peer group, where a ranking of 1 denotes a high statistical value and a ranking of 100 denotes a low statistical value. It is important to note that the same ranking methodology applies to all statistics, implying that a ranking of 1 will always mean highest value across all statistics. For example, consider a risk/return assessment using standard deviation as a measure of risk. A percentile ranking equal to 1 for retum denotes highest return, whereas a percentile ranking of 1 for standard deviation denotes highest risk among peers. In addition, values may be used to demonstrate quartile rankings. For example, the third quartile is also known as the 75th percentile, and the median is the 50th percentile. Alternatives Graystone Consulting is a business of Morgan Stanley Smith Barney LLC. ("Morgan Stanley") This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. This information is being provided as a service of your Graystone Institutional Consultant and does not supersede or replace your Morgan Stanley customer statement. The information is as of the date(s) noted and subject to daily market fluctuation. Your interests in Alternative Investments, which may have been purchased through us, are generally not held here, and are generally not covered by SIPC. The information provided to you: 1) is included as a service to you, valuations for certain products may not be available; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ("IRA"), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley IRA; and 2) if your Alternative Investment positon(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by SIPC. Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds. Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek alternative -like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your Ott rD 00 LD 0 —h t,p U.) assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending fmal valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:• Loss of all or a substantial portion of the investment due to leveraging, short - selling, or other speculative practices;. Lack of liquidity in that there may be no secondary market for a fund;. Volatility of returns;. Restrictions on transferring interests in a fund;• Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized;. Absence of information regarding valuations and pricing;. Complex tax structures and delays in tax reporting;. Less regulation and higher fees than mutual funds; and Risks associated with the operations, personnel, and processes of the manager. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker- dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of the additional fees paid to a placement agent by an investor (for Morgan Stanley placement clients, a one-time upfront Placement Fee of up to 3%, and for Morgan Stanley investment advisory clients, an annual advisory fee of up to 2.5%), which would result in a substantial reduction in the returns if such fees were incorporated. For most investment advisory clients, the program account will be charged an asset-based wrap fee every quarter ("the Fee"). In general, the Fee covers investment advisory services and reporting. In addition to the Fee, clients will pay the fees and expenses of any funds in which their account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and impact the valuations. Clients must understand that these fees and expenses are an additional cost and will not be included in the Fee amount in the account statements. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, for an account with an initial value of $100,000 and a 2.5% annual fee, if the gross performance is 5% per year over a three year period, the compounding effect of the fees will result in a net annual compound rate of retum of approximately 2.40% per year over a three year period, and the total value of the client's portfolio at the end of the three year period would be approximately $115,762.50 without the fees and $107,372.63 with the fees. Please see the applicable Morgan Stanley Smith Barney LLC Form ADV Part 2A for more information including a description of the fee schedule. It is available at www.morganstanley.com/ADV <http://www.morganstanley.com/ADV> <http://www.morganstanley.com/ADV> or from your Financial Advisor/Private Wealth Advisor. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker-dealer, not a bank. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. © 2018 Morgan Stanley Smith Bamey LLC. Member SIPC. Money Market Funds You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at $1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. Page 90 of 93 Agenda Item #4.B. 10 Feb 2022 City of Atlantic Beach General Employees' Pension Fund Expenditures as of December 31, 2021 FY22 % Total Account Description FY22 Budget Expenditure Budget Plan Expenditures: Service Providers Administrative Expense (Actuary & Legal) Gabriel, Roeder & Smith ($3,800) Sugarman & Susskind P.A. ($680) Investment Expense Subtotal: $ 37,000 $ 4,480 75,500 27,802 112,500 32,282 12% 37% 29% Trustee Expenditures: Book, Subscription, Memberships 800 750 94% Training 8,400 - 0% Subtotal: 9,200 750 8% Other Plan Expenditures: Insurance Subtotal: 4,188 4,188 245 6% 245 6% Pension Office: Office Expenditures: COAB Internal Services: City Manager 595 150 25% Finance Department 8,013 2,004 25% Human Resources 3,365 840 25% Printing & Publishing 50 0% Subtotal: 12,023 2,994 25% Pension Benefits: Service Retired Pay 1,178,031 290,644 25% Disability Retired Pay 48,000 11,715 24% Beneficiary Pay 174,226 41,699 24% DROP Pay - DB Plan - 65,789 Subtotal: 1,400,257 409,848 29% Pension Refunds 15,000 - 0% TOTAL: $ 1,553,168 $ 446,119 29% Page 91 of 93 Page 92 of 93 Agenda Item #4.C. 10 Feb 2022 City of Atlantic Beach General Employees' Pension Fund Fund Balance Report as of December 31, 2021 Beginning Balance Contributions to/from Investments Revenue Morgan Stanley Pooled Equity Account Total $ $ 26,559,727 $ 26,559,727 $ 150,000 Employer Contributions $ 273,480 $ - $ 273,480 Employee Contributions 23,354 - 23,354 Chapter 185 - - - Changes in Morgan Stanley Portfolio - 957,819 957,819 Total Revenues Expenditures $ 296,834 $ 957,819 $ 1,254,652 Administrative $ 36,271 $ - $ 36,271 Retiree Payments 409,848 - 409,848 Total Expenditures $ 446,119 $ Ending Balance - $ 446,119 $ 714.86 $ 27,517,546 $ 28,260,498 Page 93 of 93