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Police Officers' Pension Board of Trustees - 10 Aug 2023 - Agenda - Pdf City of Atlantic Beach Agenda Police Officers' Pension Board of Trustees Meeting Thursday, August 10, 2023 - 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 May 18, 2023 regular meeting of the Police Officers' Pension Board of Trustees. May 18 2023 - Police Officers' Pension Board of Trustees Minutes 3 - 5 4. REPORTS 4.A. Recap of investment performance for the period ended June 30, 2023. Atlantic Beach 2Q 2023 7 - 89 4.B. Expenditure and Fund Balance reports for the period ended June 30, 2023 Police Pension Fund Balance Report Police Pension Fund Expenditures 91 - 93 5. DISCUSSION WITH PENSION BOARD ATTORNEY 6. OLD BUSINESS 7. NEW BUSINESS 8. 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 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 1 of 93 Page 2 of 93 Police Officers' Pension Board of Trustees May 18, 2023 MINUTES Police Officers' Pension Board of Trustees Meeting Thursday, May 18, 2023 - 6:30 PM Commission Chamber Present: Chase Jamison, Member John Miller, P-PBOT Member Tim Anderson, Member Robert (Bob) Liggero, P-PBOT Chair Absent: Ed Peck, Member Also Present: Melissa Burns, Director of Finance (DF) 1. CALL TO ORDER 2. COURTESY OF THE FLOOR TO VISITORS 3. APPROVAL OF MINUTES A. Approve minutes of the February 9th, 2022 regular meeting of the Police Officers' Pension Board of Trustees. MOTION: Motion to approve minutes as presented Motion: Tim Anderson Second: Robert (Bob) Liggero Chase Jamison For John Miller For Tim Anderson (Moved By) For Robert (Bob) Liggero (Seconded By) For Motion passed 4 to 0. 4. REPORTS A. Recap of investment performance for the period ended March 31, 2023. David Wheeler of Graystone Consultants presented the 1st Quarter 2023 Performance Report. The total market value at the end of the quarter was $15,332,000. Quarter to Date (01/01/2023 - 03/31/2023) - 3.51% Performance Since Inception (4/1/2010 - 3/31/2023) - 7.11% Page 1 of 3 Agenda Item #3.A. 10 Aug 2023 Page 3 of 93 Police Officers' Pension Board of Trustees May 18, 2023 Mr. Wheeler recommended some redistribution of funds to realize a better rate of return. MOTION: Motion to approve recommended changes. Motion: Tim Anderson Second: Robert (Bob) Liggero Chase Jamison For John Miller For Tim Anderson (Moved By) For Robert (Bob) Liggero (Seconded By) For Motion passed 4 to 0. B. Annual Actuarial Valuation Report as of October 1, 2022 Nicolas Lahaye of Gabriel, Roeder, Smith and Company presented the annual actuarial valuation report as of October 1, 2022. He highlighted the actuarially determined contribution that the City has to make in FY2024, and that the Police Officers' Pension Fund's current funded ratio is 94.9% up from 93.6% last year. MOTION: Motion to accept actuarial valuation report as presented. Motion: Tim Anderson Second: Robert (Bob) Liggero Chase Jamison For John Miller For Tim Anderson (Moved By) For Robert (Bob) Liggero (Seconded By) For Motion passed 4 to 0. C. Fund Balance and Expenditure Reports for the period ended March 31, 2023. 5. DISCUSSION WITH PENSION BOARD ATTORNEY Pedro Herrera of Sugarman, Susskind, Braswell and Herrera reminded the board that the Form 1 disclosure forms are due July 1. He also discussed the effects the ESG Legislation (House Bill 3) effect July 1, would have on the Board's investments. Specifically, investment decisions can only be made using pecuniary factors. 6. OLD BUSINESS A. Discussion on changing the target rate of return. Page 2 of 3 Agenda Item #3.A. 10 Aug 2023 Page 4 of 93 Police Officers' Pension Board of Trustees May 18, 2023 A discussion ensued regarding reducing the actuarial rate of return from 6.75% to 6.25% with Mr. Lahaye and Pension Board Attorney Herrera. MOTION: Motion to lower the actuarial rate of return from 6.75% to 6.25% to be in effect for the annaul actuarial valuation as of October 1, 2023. Motion: Tim Anderson Second: Robert (Bob) Liggero Chase Jamison For John Miller For Tim Anderson (Moved By) For Robert (Bob) Liggero (Seconded By) For Motion passed 4 to 0. 7. NEW BUSINESS None. 8. ADJOURNMENT There being no further discussion, Chair Liggero declared the meeting adjourned at 8:11 p.m. Attest: Brittany Percell, Plan Administrator Robert (Bob) Liggero, Chair Page 3 of 3 Agenda Item #3.A. 10 Aug 2023 Page 5 of 93 Page 6 of 93 City of Atlantic Beach General Employees' & Police Officers' Pension Plans Quarterly Performance Report As of June 30, 2023 David Wheeler, CIMAâ, CFPâ, CRPSâ Managing Director - Wealth Management Institutional Consulting Director Alternative Investment Director Corporate Retirement Director David.A.Wheeler@msgraystone.com (813) 227-2178 Timothy P. Haugaard, CIMAâ Vice President - Wealth Management Institutional Consulting Analyst Timothy.P.Haugaard@msgraystone.com (386) 740-2001 Agenda Item #4.A.10 Aug 2023Page 7 of 93 Capital Markets Overview Page 3 Agenda Item #4.A.10 Aug 2023Page 8 of 93 U.S. Equity Market % Returns for the Period Ending June 30, 2023 S&P 500 Sector % Returns for the Period Ending June 30, 2023 Quarter to Date Year to Date 12 Months Three Years (annualized) Five Years (annualized) Seven Years (annualized) Ten Years (annualized) S&P 500 Index 8.74 16.89 19.59 14.60 12.31 13.38 12.86 Dow Jones Industrial Average 3.97 4.94 14.23 12.30 9.59 12.25 11.26 Russell 3000 Index 8.39 16.17 18.95 13.89 11.39 12.86 12.34 Russell 3000 Value Index 4.02 4.97 11.22 14.38 7.79 8.87 9.09 Russell 3000 Growth Index 12.47 28.05 26.60 13.24 14.39 16.40 15.26 Russell 1000 Index 8.58 16.68 19.36 14.09 11.92 13.15 12.64 Russell 1000 Value Index 4.07 5.12 11.54 14.30 8.11 8.94 9.22 Russell 1000 Growth Index 12.81 29.02 27.11 13.73 15.14 16.91 15.75 Russell Midcap Index 4.76 9.01 14.92 12.50 8.46 10.12 10.32 Russell Midcap Value Index 3.86 5.23 10.50 15.04 6.84 8.20 9.03 Russell Midcap Growth Index 6.23 15.94 23.13 7.63 9.72 11.96 11.53 Russell 2000 Index 5.20 8.09 12.31 10.82 4.21 8.76 8.26 Russell 2000 Value Index 3.18 2.50 6.01 15.43 3.54 7.70 7.29 Russell 2000 Growth Index 7.05 13.55 18.53 6.10 4.22 9.31 8.83 Quarter to Date Technology 17.21 Consumer Discretionary 14.58 Communication Services 13.06 Industrials 6.49 Financials 5.33 Materials 3.31 Health Care 2.95 Real Estate 1.81 Consumer Staples 0.45 Energy (0.89) Utilities (2.53) City of Atlantic Beach General Employees' Pension Capital Markets Returns as of June 30, 2023 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 4 Agenda Item #4.A.10 Aug 2023Page 9 of 93 Developed Markets Equity % Returns for the Period Ending June 30, 2023 U.S. Dollar Local Currency Emerging Markets Equity % Returns for the Period Ending June 30, 2023 U.S. Dollar Local Currency Quarter to Date Year to Date 12 Months 3 Years 5 Years Regional and Other Multi-Country Indices MSCI EAFE 2.95 11.67 18.77 8.93 4.39 MSCI Europe 2.74 13.59 21.81 10.68 5.19 MSCI Far East 4.54 10.20 14.77 5.28 2.79 MSCI Pacific ex. Japan (1.80)0.32 5.85 6.54 2.66 MSCI The World 7.00 15.43 19.13 12.72 9.63 MSCI World ex. U.S.3.03 11.29 17.41 9.30 4.58 National Indices MSCI Hong Kong (5.05)(7.32)(9.03)(0.17)(1.29) MSCI Ireland 4.43 27.04 45.99 9.90 4.94 MSCI Japan 6.45 13.24 18.62 6.09 3.51 MSCI Singapore (5.55)1.12 N/A N/A N/A Quarter to Date Year to Date 12 Months 3 Years 5 Years 4.56 12.56 18.12 12.29 6.94 2.15 11.14 17.73 11.77 6.78 12.17 19.11 20.71 14.23 7.48 (1.18)1.85 7.75 7.47 4.06 10.22 18.46 21.94 14.69 N/A 4.25 11.86 17.33 12.29 6.96 (5.20)(6.96)(9.15)0.18 (1.31) 3.99 24.28 39.91 10.97 6.37 15.60 24.04 26.20 16.95 9.17 (4.10)1.91 7.29 2.78 (0.84) Quarter to Date Year to Date 12 Months 3 Years 5 Years Regional and Other Multi-Country Indices MSCI EM 1.04 5.10 2.22 2.72 1.32 National Indices MSCI China (9.65)(5.39)(16.69)(10.13)(5.14) MSCI Malaysia (8.37)(11.66)(6.40)(4.12)(4.97) MSCI Taiwan 4.82 20.36 13.50 16.00 14.37 MSCI Thailand (8.14)(9.63)1.99 0.49 (1.36) Quarter to Date Year to Date 12 Months 3 Years 5 Years 1.85 5.76 3.76 4.30 3.37 (8.91)(4.30)(15.61)(9.60)(4.90) (3.07)(6.40)(0.88)(1.35)(2.18) 7.22 21.96 18.88 18.11 14.86 (8.14)(9.63)1.99 0.49 (1.36) City of Atlantic Beach General Employees' Pension Capital Markets Returns as of June 30, 2023 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 5 Agenda Item #4.A.10 Aug 2023Page 10 of 93 Fixed Income % Returns for the Period Ending June 30, 2023 Quarter to Date Year to Date 12 Months Three Years (annualized) Five Years (annualized) Seven Years (annualized) Ten Years (annualized) U.S. Fixed Income 90-Day T-Bills 1.25 2.39 3.75 1.33 1.56 1.37 0.98 Bloomberg US Aggregate (0.84)2.09 (0.94)(3.97)0.77 0.44 1.52 Barclays Credit (0.31)3.13 1.40 (3.38)1.65 1.35 2.51 Barclays Govt/Credit (0.93)2.21 (0.70)(4.11)1.04 0.59 1.66 Barclays Government (1.35)1.59 (2.08)(4.71)0.46 (0.07)0.97 Barclays High Yield 1.75 5.38 9.07 3.12 3.34 4.52 4.43 Barclays Intermediate Govt/Credit (0.81)1.50 (0.09)(2.46)1.23 0.76 1.41 Barclays Long Govt/Credit (1.29)4.39 (2.56)(8.60)0.66 0.21 2.86 Barclays Mortgage Backed (0.64)1.86 (1.52)(3.73)0.03 0.03 1.13 Barclays Municipal (0.10)2.67 3.19 (0.58)1.84 1.46 2.68 Global Fixed Income Merrill Lynch Global High Yield 1.63 5.28 9.69 1.46 2.23 3.60 3.64 Barclays Global Treasury ex. US (1.62)2.06 (1.35)(7.22)(3.35)(2.47)(1.23) Barclays Capital Majors ex. U.S.(3.55)(0.54)(4.12)(8.62)(4.29)(3.62)(1.68) City of Atlantic Beach General Employees' Pension Capital Markets Returns as of June 30, 2023 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 6 Agenda Item #4.A.10 Aug 2023Page 11 of 93 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY PERSPECTIVES 25 35 45 55 65 75 2019 2019 2020 2021 2022 2023 New Orders ISM Manufacturing ISM Services -20%-15%-10%-5%0%5%10%15% 1960 1975 1990 2005 2020 Conference Board US Leading Index, Year-Over-Year Change Recession 14% 19% 24% 29% 34% 2009 2012 2016 2019 2023 NFIB Small Business Capital Expenditure Plans -150 -50 50 150 250 -100% -50% 0% 50% 100% 1977 1987 1997 2007 2017 Conference Board Consumer Confidence Expectations Less Present Situation (left axis) Two-Yr./10.Yr US Treasury Yield Curve (right axis)Basis PointsMost Recent Economic Data Still Suggests Economic Slowing Ahead 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 buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Source: Morgan Stanley Wealth Management GIC, Bloomberg as of June 30, 2023 Source: Morgan Stanley Wealth Management GIC, Bloomberg as of May 31, 2023 Source: Morgan Stanley Wealth Management GIC, Bloomberg as of May 31, 2023 Source: Morgan Stanley Wealth Management GIC, Bloomberg as of June 30, 2023 Page 7 Agenda Item #4.A.10 Aug 2023Page 12 of 93 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY MARKETS LIBRARY 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 buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Citi US Economic Surprise IndexConference Board Leading Economic Indicator Index -140 -100 -60 -20 20 60 100 140 180 220 260 2010Economic Releases vs. Consensus52.9 Data is better than expected Data is worse than expected $6 $10 $14 $18 $22 $26 $30 -4% 0% 4% 8% 12% 16% 1994 1998 2002 2006 2010 2014 2018 2022 US Nominal GDP ($ trillions)Year-over-Year GrowthYear-over-Year Growth (left axis)US Nominal GDP (right axis) 7% $26.5 109.7 64.4 20 50 80 110 140 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018 2022 recession Conference Board Consumer Confidence (SA, 1985=100) University of Michigan Consumer Sentiment (NSA, Q166=100) US Economic Indicators Source: Bloomberg, Haver Analytics, Morgan Stanley Wealth Management GIO. (1) Nominal GDP does not account for the effects of inflation. Consumer ConfidenceUS Nominal GDP1 Trillions of US Dollars as of Q1-2023 Daily data as of July 5, 2023 70 75 80 85 90 95 100 105 110 115 120 200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023recession LEI Index 106.7 Conference Board data as of June 30, 2023 and University of Michigan data as of June 30, 2023 Monthly data as of May 30, 2023 Page 8 Agenda Item #4.A.10 Aug 2023Page 13 of 93 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 buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | INFLATION -3% -1% 1% 3% 5% 7% 9% 11% 13% 15% 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Headline CPI (All Items)¹ Core CPI (All Items Less Food & Energy)² Core CPI Average since 1960 Core CPI Average since 1990 3% 4.8% 3.7% 2.6% US Inflation Metrics Source: Bureau of Labor Statistics, Haver, FactSet, Morgan Stanley Wealth Management GIO. (1) Headline CPI measures inflation that is not adjusted for food and energy prices; core CPI excludes food and energy prices. (2) Defined as Breakeven rate, which is the difference in yield between inflation-protected and nominal debt of the same maturity. Inflation Expectations2Consumer Price Indices1 Monthly data as of June 30, 2023 2.19% 2.11% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 10-Yr Inflation Expectations 5-Yr Inflation Expectations 2-Yr Inflation Expectations 2.23% Year-over-Year Percent Change as of June 2023 Page 9 Agenda Item #4.A.10 Aug 2023Page 14 of 93 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY PERSPECTIVES It's Been About Conviction in a “Soft Landing,” AI and Higher Multiples 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 buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Source: Morgan Stanley Wealth Management GIC, FactSet as of July 7, 2023 Source: Morgan Stanley Wealth Management GIC, Bloomberg as of June 30, 2023 220.21 246.07 $210 $220 $230 $240 $250 $260 $270 $280 Jan '22 Jul '22 Jan '23 Jul '23 S&P 500 Earnings Estimates 2022 2023 2024 19.4 31.8 0 10 20 30 40 50 60 70 15 16 17 18 19 20 21 22 23 24 2019 2020 2021 2022 2023 Forward 12-Month Price/Earnings Ratio S&P 500 Index (left axis) Top 10 of S&P 500 by Market Cap (right axis) Page 10 Agenda Item #4.A.10 Aug 2023Page 15 of 93 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY PERSPECTIVES Leaving Relative Valuations Dispersed; Creating Active Risk Management Opportunity 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 buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Source: Morgan Stanley & Co. Research, FactSet as of June 30, 2023 Source: Morgan Stanley & Co. Research, Bloomberg, FactSet as of July 10, 2023 Sector Fwd PE Median Delta Discretionary 27.1 22.4 21% Energy 10.8 16.3 -34% Financials 13.5 12.2 11% Health Care 17.1 15.5 10% Industrials 18.8 16.0 18% Materials 17.5 17.4 1% Real Estate 17.2 19.7 -13% Staples 20.1 19.6 2% Technology 27.5 18.3 50% Utilities 17.1 19.0 -10% S&P 500 19.1 17.0 13% Large Caps - S&P 500 0.3 0.5 0.7 0.9 1.1 1.3 1.5 2006 2009 2012 2015 2018 2021 Relative Forward 12-Month Price/Earnings Ratio vs S&P 500 Technology Energy Financials Page 11 Agenda Item #4.A.10 Aug 2023Page 16 of 93 Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. 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Separately, certain strategies managed or sub-advised by us or our afliates, including but not limited to MSIM and Eaton Vance Management (“EVM”) and its investment afliates, may be included in your account. See the conficts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conficts that may be relevant to GIMA’s evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their afliates provide a variety of services (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 afliates 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. Morgan Stanley Wealth Management, managers, MS & Co., and their afliates 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. Morgan Stanley charges each fund family we ofer a mutual fund support fee, also called a “revenue-sharing payment,” on client account holdings in fund families according to a tiered rate that increases along with the management fee of the fund so that lower management fee funds pay lower rates than those with higher management fees. Consider Your Own Investment Needs: The model portfolios and strategies discussed in the material are formulated based on general client characteristics including risk tolerance. This material is not intended to be an analysis of whether particular investments or strategies are appropriate for you or a recommendation, or an ofer to participate in any investment. Therefore, clients should not use this material as the sole basis for investment decisions. They should consider all relevant information, including their existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Such a determination may lead to asset allocation results that are materially diferent from the asset allocation shown in this profle. Talk to your Financial Advisor about what would be an appropriate asset allocation for you, whether Morgan Stanley Pathway Funds is an appropriate program for you. No obligation to notify – Morgan Stanley Wealth Management has no obligation to notify you when the model portfolios, strategies, or any other information, in this material changes. For index, indicator and survey defnitions referenced in this report please visit the following: https://www.morganstanley.com/wealth-investmentsolutions/wmir-defnitions The Morgan Stanley Pathway Funds, Firm Discretionary UMA Model Portfolios, and other asset allocation or any other model portfolios discussed in this material are available only to investors participating in Morgan Stanley Consulting Group advisory programs. For additional information on the Morgan Stanley Consulting Group advisory programs, see the applicable ADV brochure, available at www.morganstanley.com/ADV or from your Morgan Stanley Financial Advisor or Private Wealth Advisor. To learn more about the Morgan Stanley Pathway Funds, visit the Funds’ website at https://www.morganstanley.com/wealth-investmentsolutions/cgcm. Consulting Group is a business of Morgan Stanley. Morgan Stanley Pathway Program Asset Allocation Models There are model portfolios corresponding to fve risk-tolerance levels available in the Pathway program. Model 1 is the least aggressive portfolio and consists mostly of bonds. As the model numbers increase, the models have higher allocations to equities and become more aggressive. Pathway is a mutual fund asset allocation program. In constructing the Pathway Program Model Portfolios, Morgan Stanley Wealth Management uses, among other things, model asset allocations produced by Morgan Wealth Management's Global Investment Committee (the "GIC"). The Pathway Program Model Portfolios are specifc to the Pathway program (based on program features and parameters, and any other requirements of Morgan Stanley Wealth Management's Consulting Group). The Pathway Program Model Portfolios may therefore difer in some respects from model portfolios available in other Morgan Stanley Wealth Management programs or from asset allocation models published by the Global Investment Committee. The type of mutual funds and ETFs discussed in this presentation utilizes nontraditional or complex investment strategies and/or derivatives. Examples of these types of funds include those that utilize one or more of the below noted investment strategies or categories or which seek exposure to the following markets: (1) commodities (e.g., agricultural, energy and metals), currency, precious metals; (2) managed futures; (3) leveraged, inverse or inverse leveraged; (4) bear market, hedging, long-short equity, market neutral; (5) real estate; (6) volatility (seeking exposure to the CBOE VIX Index). Investors should keep in mind that while mutual funds and ETFs may, at times, utilize nontraditional investment options and strategies, they should not be equated with unregistered privately ofered alternative investments. Because of regulatory limitations, mutual funds and ETFs that seek alternative-like investment exposure must utilize a more limited investment universe. As a result, investment returns and portfolio characteristics of alternative mutual funds and ETFs may vary from traditional hedge funds pursuing similar investment objectives. Moreover, traditional hedge funds have limited liquidity with long “lock-up” periods allowing them to pursue investment strategies without having to factor in the need to meet client redemptions and ETFs trade on an exchange. On the DISCLOSURES Page 14 Agenda Item #4.A.10 Aug 2023Page 19 of 93 other hand, mutual funds typically must meet daily client redemptions. This difering liquidity profle 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 ofset market risks. However, these features may be complex, making it more difcult to understand the fund’s essential characteristics and risks, and how it will perform in diferent 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.” Please consider the investment objectives, risks, fees, and charges and expenses of mutual funds, ETFs, closed end funds, unit investment trusts, and variable insurance products carefully before investing. The prospectus contains this and other information about each fund. To obtain a prospectus, contact your Financial Advisor or Private Wealth Advisor or visit the Morgan Stanley website at www.morganstanley.com. Please read it carefully before investing. Money Market Funds: You could lose money in money market funds. Although money market funds classifed as government funds (i.e., money market funds that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., money market funds 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 money market funds will fuctuate and when you sell shares they may be worth more or less than originally paid. Money market funds 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 money market fund investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. The Fund’s sponsor has no legal obligation to provide fnancial support to the Fund, and you should not expect that the sponsor will provide fnancial support to the Fund at any time. Investors should carefully consider the investment objectives, risks, charges and expenses of a money market fund before investing. The prospectus contains this and other information about the money market fund. To obtain a prospectus, contact your Financial Advisor or visit the money market fund company’s website. Please read the prospectus carefully before investing. Exchange Funds are private placement vehicles that enable holders of concentrated single-stock positions to exchange those stocks for a diversifed portfolio. Investors may beneft from greater diversifcation by exchanging a concentrated stock position for fund shares without triggering a taxable event. These funds are available only to qualifed investors and may only be ofered by Financial Advisors who are qualifed to sell alternative investments. Before investing, investors should consider the following: - Dividends are pooled - Investors may forfeit their stock voting rights - Investment may be illiquid for several years - Investments may be leveraged or contain derivatives - Signifcant early redemption fees may apply - Changes to the U.S. tax code, which could be retroactive (potentially disallowing the favorable tax treatment of exchange funds) - Investment risk and potential loss of principal 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 diferences in fnancial and accounting standards. These risks may be magnifed in emerging markets and frontier markets. Some funds also invest in foreign securities, which may involve currency risk. There is no assurance that the fund will achieve its investment objective. Small- and mid-capitalization companies may lack the fnancial resources, product diversifcation 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 fxed income securities will fuctuate 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 Infation Protection Securities’ (TIPS) coupon payments and underlying principal are automatically increased to compensate for infation by tracking the consumer price index (CPI). While the real rate of return is guaranteed, TIPS tend to ofer a low return. Because the return of TIPS is linked to infation, TIPS may signifcantly underperform versus conventional U.S. DISCLOSURES Page 15 Agenda Item #4.A.10 Aug 2023Page 20 of 93 Treasuries in times of low infation. There is no guarantee that investors will receive par if TIPS 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 diversifed 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 identifed 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 ofered. There is a one-time public ofering 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 ofering. 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 fuctuation than those that diversify among a broad range of sectors. Structured Investments are complex and not appropriate for all investors. An investment in Structures Investments involve risks. These risks can include but are not limited to: (1) Fluctuations in the price, level or yield of underlying instruments, interest rates, currency values and credit quality, (2) Substantial or total loss of principal, (3) Limits on participation in appreciation of underlying instrument, (4) Limited liquidity, (5) Issuer credit risk and (6) Conficts of Interest. There is no assurance that a strategy of using structured product for wealth preservation, yield enhancement, and/or interest rate risk hedging will meet its objectives. Alternative investments may be either traditional alternative investment vehicles, such as hedge funds, fund of hedge funds, private equity, private real estate and managed futures or, non-traditional products such as mutual funds and exchange-traded funds that also seek alternative-like exposure but have signifcant diferences from traditional alternative investments. 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 indefnite 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 diversifcation 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. Further, opinions regarding Alternative Investments expressed herein may difer from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/afliates of Morgan Stanley Wealth Management. 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 difer materially from those refected or contemplated in such forward-looking statements. Clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. Alternative investments involve complex tax structures, tax inefcient investing, and delays in distributing important tax information. Individual funds have specifc 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 ofered pursuant to the terms of the applicable ofering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its afliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of Morgan Stanley or any of its afliates, (3) are not guaranteed by Morgan Stanley and its afliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker-dealer, not a bank. 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 Stanley Wealth Management in connection with Morgan Stanley Wealth Management clients that purchase an interest in an Alternative Investment and in some instances pay these fees on the investments held by advisory clients. Morgan Stanley Wealth Management rebates such fees that are received and attributable to an Investment held by an advisory client and retains the fees paid in connection with investments held by brokerage clients. Morgan Stanley Wealth Management has a confict of interest in ofering alternative investments because Morgan Stanley Wealth Management or our afliates, in most instances, earn more money in your account from your investments in alternative investments than from other investment options. DISCLOSURES Page 16 Agenda Item #4.A.10 Aug 2023Page 21 of 93 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 ofer 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 infate 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 infated by up to 260 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 afect hedge fund returns, we identify some of the more common ones throughout this paper. 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 difcult to quantify the efects precisely, investors should be aware that idiosyncratic factors may be giving hedge fund index returns an artifcial “lift” or upwards bias. Hedge Funds of Funds and many funds of funds are private investment vehicles restricted to certain qualifed 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-inefcient 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 ofset 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 fuctuations 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 any time, including, before or after the target date is reached. Managed futures investments are speculative, involve a high degree of risk, use signifcant leverage, are generally illiquid, have substantial charges, subject investors to conficts 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 diversifed portfolio. Managed Futures are complex and not appropriate for all investors. Virtual Currency Products (Cryptocurrencies) Buying, selling, and transacting in Bitcoin, Ethereum or other digital assets (“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: - Digital Assets have only been in existence for a short period of time and historical trading prices for Digital Assets have been highly volatile. The price of Digital Assets could decline rapidly, and investors could lose their entire investment. - Certain Digital Asset 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, 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, 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 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 signifcantly below or above the net asset value of the product or fund at the time the investor submitted subscription materials. DISCLOSURES Page 17 Agenda Item #4.A.10 Aug 2023Page 22 of 93 - Certain Digital Assets 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 Digital Assets. Buyers, sellers and users of such Digital Assets should thoroughly familiarize themselves with such risks and considerations before transacting in such Digital Assets. - The value of Digital Assets may be negatively impacted by future legal and regulatory developments, including but not limited to increased regulation of such Digital Assets. Any such developments may make such Digital Assets less valuable, impose additional burdens and expenses on a fund or product investing in such assets or impact the ability 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 signifcant aspects of the tax treatment of Digital Assets are uncertain. Prospective investors should consult their own tax advisors concerning the tax consequences to them of the purchase, ownership and disposition of 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 Digital Asset 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 Digital Assets if the fund or product relies on an impacted exchange and may also materially decrease the price of Digital Assets, 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 and its service providers have in place signifcant safeguards against loss, theft, destruction and inaccessibility, there is nonetheless a risk that some or all of a product’s Digital Asset 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. - Investors in funds or products investing or transacting in Digital Assets may not beneft to the same extent (or at all) from “airdrops” with respect to, or “forks” in, a Digital Asset’s blockchain, compared to investors who hold Digital Assets directly instead of through a fund or product. Additionally, a “fork” in the Digital Asset blockchain could materially decrease the price of such Digital Asset. - Digital Assets are not legal tender, and are not backed by any government, corporation or other identifed body, other than with respect to certain digital currencies that certain governments are or may be developing now or in the future. 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, Digital Asset products’ use is limited to businesses and individuals that are willing to accept them. If no one were to accept digital currencies, virtual currency products would very likely become worthless. - Platforms that buy and sell 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. - Unlike US banks and credit unions that provide certain guarantees of safety to depositors, there are no such safeguards provided to Digital Assets held in digital wallets by their providers or by regulators. - Due to the anonymity Digital Assets ofer, they have known use in illegal activity, including drug dealing, money laundering, human tracking, 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 of entirely the ability to use or trade Digital Asset products. - Digital Assets may not have an established track record of credibility and trust. Further, any performance data relating to Digital Asset products may not be verifable as pricing models are not uniform. - Investors should be aware of the potentially increased risks of transacting in Digital Assets 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 virtual currency products versus the USD historically has been very volatile and the exchange rate could drastically decline. For example, the exchange rate of certain Digital DISCLOSURES Page 18 Agenda Item #4.A.10 Aug 2023Page 23 of 93 Assets versus the USD has in the past dropped more than 50% in a single day. Other Digital Assets may be afected 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. - The regulatory framework of Digital Assets is evolving, and in some cases is 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 afliates (collectively, “Morgan Stanley”) may currently, or in the future, ofer or invest in Digital Asset products, services or platforms. The proprietary interests of Morgan Stanley may confict 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 any product or fund investing or trading in Digital Assets. Asset allocation and diversifcation do not assure a proft or protect against loss in declining fnancial markets. Past performance is no guarantee of future results. Actual results may vary. Rebalancing does not protect against a loss in declining fnancial markets. There may be a potential tax implication with a rebalancing strategy. Investors should consult with their tax advisor before implementing such a strategy. 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 signifcantly diferent 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 specifc investment, may not, for a variety of reasons, be an appropriate comparison or benchmark for a particular investment and may not necessarily refect the actual investment strategy or objective of a particular investment. Consequently, comparing an investment to a particular index may be of limited use. To obtain Tax-Management Services, a client must complete the Tax-Management Form, and deliver the signed form to Morgan Stanley. For more information on Tax-Management Services, including its features and limitations, please ask your Financial Advisor for the Tax Management Form. Review the form carefully with your tax advisor. Tax-Management Services: (a) apply only to equity investments in separate account sleeves of client accounts; (b) are not available for all accounts or clients; and (c) may adversely impact account performance. Tax-management services do not constitute tax advice or a complete tax-sensitive investment management program. There is no guarantee that tax-management services will produce the desired tax results. When Morgan Stanley Smith Barney LLC, its afliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” regarding a retirement or welfare beneft plan account, an individual retirement account or a Coverdell education savings account (“Retirement Account”), Morgan Stanley is a “fduciary” as those terms are defned under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or the Internal Revenue Code of 1986 (the “Code”), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide “investment advice”, Morgan Stanley will not be considered a “fduciary” under ERISA and/or the Code. For more information regarding Morgan Stanley’s role with respect to a Retirement Account, please visit www.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters. Lifestyle Advisory Services: Products and services are provided by third party service providers, not Morgan Stanley Smith Barney LLC (“Morgan Stanley”). Morgan Stanley may not receive a referral fee or have any input concerning such products or services. There may be additional service providers for comparative purposes. Please perform a thorough due diligence and make your own independent decision. This material is not a fnancial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fduciary either under the DISCLOSURES Page 19 Agenda Item #4.A.10 Aug 2023Page 24 of 93 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 be considered investment advice or a recommendation for either ERISA or Internal Revenue Code purposes and that (unless otherwise provided in a written agreement and/or as described at www.morganstanley.com/disclosures/dol) you remain solely responsible for your assets and all investment decisions with respect to your assets. Nevertheless, if Morgan Stanley or your Financial Advisor provides “investment advice,” as that term is defned under Section 3(21) of ERISA, to you with respect to certain retirement, welfare beneft, or education savings account assets for a fee or other compensation, Morgan Stanley and/or your Financial Advisor will be providing such advice in its capacity as a fduciary under ERISA and/or the Code. Morgan Stanley will only prepare a fnancial plan at your specifc request using Morgan Stanley approved fnancial planning software. The Morgan Stanley Goals-Planning System (GPS) includes a brokerage investment analysis tool. While securities held in a client’s investment advisory accounts may be included in the analysis, the reports generated from the GPS Platform are not fnancial plans nor constitute a fnancial planning service. A fnancial plan generally seeks to address a wide spectrum of a client’s long-term fnancial needs, and can include recommendations about insurance, savings, tax and estate planning, and investments, taking into consideration the client’s goals and situation, including anticipated retirement or other employee benefts. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) will only prepare a fnancial plan at a client’s specifc request using Morgan Stanley approved fnancial planning software. Investing in fnancial instruments carries with it the possibility of losses and that a focus on above-market returns exposes the portfolio to above-average risk. Performance aspirations are not guaranteed and are subject to market conditions. High volatility investments may be subject to sudden and large falls in value, and there could be a large loss on realization which could be equal to the amount invested. IMPORTANT: The projections or other information provided by the Morgan Stanley Goals Planning System regarding the likelihood of various investment outcomes (including any assumed rates of return and income) are hypothetical in nature, do not refect actual investment results, and are not guarantees of future results. Morgan Stanley does not represent or guarantee that the projected returns or income will or can be attained. A LifeView Financial Goal Analysis (“Financial Goal Analysis”) or LifeView Financial Plan (“Financial Plan”) is based on the methodology, estimates, and assumptions, as described in your report, as well as personal data provided by you. It should be considered a working document that can assist you with your objectives. Morgan Stanley makes no guarantees as to future results or that an individual’s investment objectives will be achieved. The responsibility for implementing, monitoring and adjusting your Financial Goal Analysis or Financial Plan rests with you. After your Financial Advisor delivers your report to you, if you so desire, your Financial Advisor can help you implement any part that you choose; however, you are not obligated to work with your Financial Advisor or Morgan Stanley. Important information about your relationship with your Financial Advisor and Morgan Stanley Smith Barney LLC when using LifeView Goal Analysis or LifeView Advisor. When your Financial Advisor prepares and delivers a Financial Goal Analysis (i.e., when using LifeView Goal Analysis), they will be acting in a brokerage capacity. When your Financial Advisor prepares a Financial Plan (i.e., when using LifeView Advisor), they will be acting in an investment advisory capacity with respect to the delivery of your Financial Plan. This Investment Advisory relationship will begin with the delivery of the Financial Plan and ends thirty days later, during which time your Financial Advisor can review the Financial Plan with you. To understand the diferences between brokerage and advisory relationships, you should consult your Financial Advisor, or review our “Understanding Your Brokerage and Investment Advisory Relationships,” brochure available at https://www.morganstanley.com/wealth-relationshipwithms/pdfs/understandingyourrelationship.pdf We may act in the capacity of a broker or that of an advisor. As your broker, we are not your fduciary and our interests may not always be identical to yours. Please consult with your Financial Advisor or Private Wealth Advisor to discuss our obligations to disclose to you any conficts 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 Financial Advisor or Private Wealth Advisor, may vary by product and over time. Investment and services ofered through Morgan Stanley Smith Barney LLC, Member SIPC. 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 refect the investment or performance of an actual portfolio following a GIC Strategy, but simply refect actual historical performance of selected indices on a real-time basis over the specifed 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 diferences 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 beneft of hindsight. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client-specifc 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 Model for the periods indicated. Despite the limitations of hypothetical performance, these hypothetical performance results allow clients and Financial Advisors to obtain a sense DISCLOSURES Page 20 Agenda Item #4.A.10 Aug 2023Page 25 of 93 of the risk/return trade-of of diferent 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 REDUCE THE 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 refected 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 efect fees have on investment returns: For example, if a portfolio’s annual rate of return is 15% for 5 years and the account pays 50 basis points in fees per annum, the gross cumulative fve-year return would be 101.1% and the fve-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 fuctuations, investment risk, and possible loss of principal. All guarantees, including optional benefts, are based on the fnancial 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 specifc limitations, restrictions, holding periods, costs, and expenses as specifed 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 benefts protection. Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal income tax penalty. Early withdrawals will reduce the death beneft and cash surrender value. Equity securities may fuctuate in response to news on companies, industries, market conditions and general economic environment. Ultrashort-term fxed income asset class is comprised of fxed 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 benefts 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 refected in the daily NAV, and, as a result, the MLP fund’s after-tax performance could difer signifcantly from the underlying assets even if the pre-tax performance is closely tracked. Investing in commodities entails signifcant risks. Commodity prices may be afected 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 fuctuate 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 fuctuations, lack of liquidity, limited diversifcation and sensitivity to economic factors such as 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; DISCLOSURES Page 21 Agenda Item #4.A.10 Aug 2023Page 26 of 93 volatility (risk of loss); and leverage. Principal is returned on a monthly basis over the life of a mortgage-backed security. Principal prepayment can signifcantly afect 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 beneft less than other fxed-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, quantifes the efect 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 $1000 par preferred securities are “callable” meaning that the issuer may retire the securities at specifc 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 $1,000 share, unless otherwise specifed. Current yield is calculated by multiplying the coupon by par value divided by the market price. The initial interest rate on a foating-rate security may be lower than that of a fxed-rate security of the same maturity because investors expect to receive additional income due to future increases in the foating 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 foating-rate securities may be subject to call risk. The market value of convertible bonds and the underlying common stock(s) will fuctuate 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 afect yield. Some $25 or $1000 par preferred securities are QDI (Qualifed Dividend Income) eligible. Information on QDI eligibility is obtained from third party sources. The dividend income on QDI eligible preferreds qualifes 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 90 days before the ex-dividend date. Companies paying dividends can reduce or cut payouts at any time. Nondiversifcation: 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 proft 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 proft 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 proft and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fuctuating price levels of such securities, the investor should consider his fnancial 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. © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. DISCLOSURES Page 22 Agenda Item #4.A.10 Aug 2023Page 27 of 93 Police Officers' Pension Plan Performance Reports Page 23 Agenda Item #4.A.10 Aug 2023Page 28 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics - 7 Years Historic Asset Growth Manager Annualized Performance 0.0 6.0 12.0 18.0 24.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Total Fund Policy Index 90-Day T-Bills -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Return (%)-4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 3.49 15.73 10.76 8.37 6.63 7.57 7.63 7.27 04/01/2010 Policy Index 3.79 16.23 10.89 6.93 6.30 7.05 6.83 7.23 Differences -0.30 -0.50 -0.13 1.44 0.33 0.52 0.80 0.04 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 04/01/2010 Beginning Market Value 15,356 13,756 14,387 12,003 10,328 8,429 5,144 7,314 Net Contributions ---800 1,674 1,877 3,912 2,825 Fees/Expenses -14 -40 -54 -174 -256 -328 -425 -519 Income 86 267 337 985 1,543 1,912 2,289 2,732 Gain/Loss 449 1,894 1,208 2,263 2,590 3,987 4,957 3,526 Ending Market Value 15,877 15,877 15,877 15,877 15,877 15,877 15,877 15,877 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Total Fund 7.57 11.84 1.08 -18.56 109.85 111.08 -0.02 0.56 0.98 Policy Index 7.05 10.84 1.00 -18.89 100.00 100.00 0.00 0.56 1.00 90-Day T-Bills 1.37 0.38 0.00 0.00 4.88 -4.45 1.37 N/A 0.00 as of June 30, 2023 Total Fund - Executive Summary City of Atlantic Beach Police Officers' Pension 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 24 Agenda Item #4.A.10 Aug 2023Page 29 of 93 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Total Fund 7.27 10.22 1.00 -18.56 100.58 100.15 0.05 0.66 0.91 04/01/2010 Policy Index 7.23 9.73 1.00 -18.89 100.00 100.00 0.00 0.69 1.00 04/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 2.92 -2.79 0.76 N/A 0.00 04/01/2010 City of Atlantic Beach Police Officers' Pension Modern Portfolio Statistics - Since Inception as of June 30, 2023 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 Agenda Item #4.A.10 Aug 2023Page 30 of 93 Policy Target In Policy Outside Policy City of Atlantic Beach Police Officers' Pension Asset Allocation Compliance As of June 30, 2023 6% 6% 30% 15% 10% 33% 0%10%20%30%40%50%60%70%80%90%100% Cash & Equivalents $175.K (1.1%) 0.0% - 11.0% Alternative Investments $1,415.1K (8.9%) 1.0% - 15.0% Fixed Income $3,896.7K (24.5%) 20.0% - 40.0% International Equity $2,345.6K (14.8%) 10.0% - 20.0% Mid-, Small, or Smid- Cap Equity $2,029.2K (12.8%) 5.0% - 20.0% Large Cap Equity $6,012.8K (37.9%) 20.0% - 50.0% The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 26 Agenda Item #4.A.10 Aug 2023Page 31 of 93 GUIDELINES In Compliance Allocation Large Cap Equity Allocation within specified range Yes Small/Mid Cap Equity Allocation within specified range Yes International Equity Allocation within specified range Yes Fixed Income Allocation within specified range Yes Total Alternatives within specified range Yes Cash & Equivalents Allocation within specified range Yes Prohibited Investments Is the portfolio compliant with the list of prohibited investments?Yes Permitted Investments Is the portfolio compliant with the list of permitted investments?Yes City of Atlantic Beach Police Officers' Pension Compliance Checklist as of June 30, 2023 The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed.Page 27 Agenda Item #4.A.10 Aug 2023Page 32 of 93 Allocation Market Value ($) % Performance(%) Current Quarter Fiscal YTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 15,877,489 100.00 3.49 15.73 7.31 10.76 8.37 6.63 7.57 7.63 7.27 04/01/2010 Total Fund (net)3.40 15.42 7.12 10.36 7.95 6.23 7.16 7.17 6.82 Policy Index 3.79 16.23 9.01 10.89 6.93 6.30 7.05 6.83 7.23 Domestic Equity JP Morgan - Equity Income 2,577,337 16.23 2.41 13.26 0.10 8.09 14.73 9.94 10.89 10.82 10.36 04/01/2010 JP Morgan - Equity Income (net)2.30 12.88 -0.12 7.61 14.16 9.38 10.31 10.21 9.76 Russell 1000 Value 4.07 18.18 5.12 11.54 14.30 8.11 8.94 9.22 10.08 Columbia Mgmt - Select LC Grwth 670,107 4.22 10.89 35.66 25.75 30.94 7.83 10.85 14.03 12.70 12.51 04/01/2010 Columbia Mgmt - Select LC Grwth (net)10.77 35.21 25.47 30.37 7.30 10.30 13.46 12.08 11.89 Russell 1000 Gr 12.81 31.85 29.02 27.11 13.73 15.14 16.91 15.75 14.98 Pioneer - Large Cap Growth 1,352,860 8.52 10.21 28.76 19.00 26.00 13.79 14.55 N/A N/A 14.70 09/01/2016 Pioneer - Large Cap Growth (net)10.10 28.37 18.75 25.48 13.25 13.99 N/A N/A 14.14 Russell 1000 Gr 12.81 31.85 29.02 27.11 13.73 15.14 N/A N/A 16.65 Vanguard - S&P 500 Index ETF 792,974 4.99 8.80 25.70 16.90 19.97 14.61 N/A N/A N/A 13.40 09/01/2019 Vanguard - S&P 500 Index ETF (net)8.80 25.70 16.90 19.97 14.61 N/A N/A N/A 13.40 S&P 500 Total Return 8.74 25.73 16.89 19.59 14.60 N/A N/A N/A 13.42 Invesco - S&P 500 Equal Weight ETF 619,516 3.90 3.92 19.16 6.93 13.52 N/A N/A N/A N/A 1.30 06/01/2021 Invesco - S&P 500 Equal Weight ETF (net)3.88 19.00 6.84 13.32 N/A N/A N/A N/A 1.12 S&P 500 Equal Wtd 3.99 19.49 7.03 13.76 N/A N/A N/A N/A 1.54 S&P 500 Total Return 8.74 25.73 16.89 19.59 N/A N/A N/A N/A 4.39 Boston - SMID Value 1,327,742 8.36 3.79 17.59 6.66 10.70 19.92 6.67 9.72 8.60 8.64 04/01/2010 Boston - SMID Value (net)3.64 17.09 6.36 10.07 19.18 6.01 9.03 7.91 7.97 Russell 2500 VL 4.37 15.57 5.83 10.37 16.07 5.32 7.97 8.02 9.34 Riverbridge - SMID Growth 701,475 4.42 6.76 17.77 17.38 17.74 3.12 9.11 11.94 10.48 12.38 04/01/2010 Riverbridge - SMID Growth (net)6.60 17.26 17.05 17.07 2.48 8.43 11.24 9.78 11.69 Russell 2500 GR 6.41 18.73 13.38 18.58 6.56 7.00 10.95 10.38 11.45 City of Atlantic Beach Police Officers' Pension as of June 30, 2023 Asset Allocation & Time Weighted Performance 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 Agenda Item #4.A.10 Aug 2023Page 33 of 93 City of Atlantic Beach Police Officers' Pension as of June 30, 2023 Asset Allocation & Time Weighted Performance Allocation Market Value ($) % Performance(%) Current Quarter Fiscal YTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date International Equity Lazard - International Strategic Equity 1,186,953 7.48 3.85 28.18 12.00 15.09 7.26 N/A N/A N/A 4.65 09/01/2019 Lazard - International Strategic Equity (net)3.85 28.18 12.00 15.09 7.26 N/A N/A N/A 4.65 MSCI EAFE Net 2.95 31.03 11.67 18.77 8.93 N/A N/A N/A 6.54 Vanguard - Total International Stock ETF 1,158,669 7.30 2.73 25.76 9.96 12.18 7.74 N/A N/A N/A 5.90 09/01/2019 Vanguard - Total International Stock ETF (net)2.73 25.76 9.96 12.18 7.74 N/A N/A N/A 5.90 FTSE Global All Cap x US (Net)2.45 24.35 8.97 12.31 7.44 N/A N/A N/A 5.64 Fixed Income BlackRock - PPM Short-Term Taxable Fixed Income 1,228,244 7.74 -0.14 2.50 1.45 1.76 N/A N/A N/A N/A 0.92 04/01/2022 BlackRock - PPM Short-Term Taxable Fixed Income (net)-0.21 2.29 1.31 1.49 N/A N/A N/A N/A 0.65 BC Gov/Cr 1-3 Yr -0.37 2.03 1.13 0.53 N/A N/A N/A N/A -0.09 Sage Advisory - Int. Fixed Income 2,668,456 16.81 -0.55 3.54 1.83 0.43 -1.61 1.77 1.30 2.00 2.76 04/01/2010 Sage Advisory - Int. Fixed Income (net)-0.64 3.25 1.64 0.05 -2.03 1.31 0.83 1.55 2.30 BB US Intermediate Gov/Cr -0.81 3.06 1.50 -0.09 -2.46 1.23 0.76 1.41 2.00 Alternative Investments Tortoise - MLP & Pipeline Fund 859,934 5.42 4.26 14.50 4.68 16.13 24.63 N/A N/A N/A 7.66 09/01/2019 Tortoise - MLP & Pipeline Fund (net)4.26 14.50 4.68 16.13 24.63 N/A N/A N/A 7.66 Alerian MLP Index 5.38 20.79 9.70 30.51 30.70 N/A N/A N/A 8.90 Principal - REIT 555,192 3.50 2.14 8.19 5.50 -0.72 N/A N/A N/A N/A 5.89 12/01/2020 Principal - REIT (net)2.01 7.76 5.22 -1.24 N/A N/A N/A N/A 5.29 MSCI REIT Gross 2.66 10.97 5.46 -0.09 N/A N/A N/A N/A 6.52 Cash & Equivalents Deposit & Disbursement Account 174,899 1.10 CGA - Cash 59 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 29 Agenda Item #4.A.10 Aug 2023Page 34 of 93 Current Quarter Fiscal YTD 1 Year 3 Years 4 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 3.40 15.42 10.36 7.68 5.90 6.06 6.97 6.29 3.80 03/31/2010 Domestic Equity JP Morgan - Equity Income 1.92 12.64 7.25 12.43 8.23 8.82 9.85 9.31 8.96 03/31/2010 Columbia Mgmt - Select LC Grwth 10.14 35.43 28.98 6.11 9.65 9.58 14.75 12.00 11.63 03/31/2010 Pioneer - Large Cap Growth 10.10 28.43 25.30 13.53 14.08 14.17 N/A N/A 14.24 08/31/2016 Vanguard - S&P 500 Index ETF 7.97 25.44 18.58 18.79 N/A N/A N/A N/A 0.00 09/30/2019 Invesco - S&P 500 Equal Weight ETF 3.88 19.00 13.32 N/A N/A N/A N/A N/A 1.02 05/31/2021 Boston - SMID Value 3.64 17.09 9.97 18.49 11.11 8.75 10.68 9.39 8.86 03/31/2010 Riverbridge - SMID Growth 6.60 17.61 17.19 2.94 6.82 8.66 11.86 11.22 12.39 03/31/2010 International Equity Lazard - International Strategic Equity 3.94 27.79 15.11 7.89 N/A N/A N/A N/A 290.74 09/30/2019 Vanguard - Total International Stock ETF 3.05 25.33 12.37 8.35 N/A N/A N/A N/A 0.00 09/27/2019 Fixed Income BlackRock - PPM Short-Term Taxable Fixed Income -0.22 2.23 1.44 N/A N/A N/A N/A N/A 0.64 03/31/2022 Sage Advisory - Int. Fixed Income -0.64 3.19 0.09 -2.01 0.07 1.22 0.80 1.88 2.20 03/31/2010 Alternative Investments Tortoise - MLP & Pipeline Fund 4.26 14.51 16.14 25.23 N/A N/A N/A N/A 80.24 09/30/2019 Principal - REIT 2.01 7.76 -1.24 N/A N/A N/A N/A N/A 1.80 11/30/2020 City of Atlantic Beach Police Officers' Pension as of June 30, 2023 Asset Allocation & Dollar Weighted Performance (IRR) 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 Agenda Item #4.A.10 Aug 2023Page 35 of 93 General Employees' Pension Plan Performance Reports Page 31 Agenda Item #4.A.10 Aug 2023Page 36 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics - 7 Years Historic Asset Growth Manager Annualized Performance 0.0 6.0 12.0 18.0 24.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Total Fund Policy Index 90-Day T-Bills -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Return (%)-4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 3.77 16.09 11.09 8.48 6.67 7.67 7.51 7.40 03/01/2010 Policy Index 3.79 16.23 10.89 6.93 6.30 7.05 6.83 7.49 Differences -0.02 -0.14 0.20 1.55 0.37 0.62 0.68 -0.09 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 03/01/2010 Beginning Market Value 24,939 22,331 23,359 20,606 19,005 15,772 9,085 445 Net Contributions -3 3 -147 44 48 5,017 13,375 Fees/Expenses -23 -69 -91 -294 -440 -583 -772 -958 Income 135 431 544 1,643 2,628 3,283 3,932 4,820 Gain/Loss 804 3,159 2,041 4,048 4,618 7,336 8,594 8,174 Ending Market Value 25,856 25,856 25,856 25,856 25,856 25,856 25,856 25,856 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Total Fund 7.67 11.97 1.09 -18.65 111.06 112.12 0.01 0.57 0.98 Policy Index 7.05 10.84 1.00 -18.89 100.00 100.00 0.00 0.56 1.00 90-Day T-Bills 1.37 0.38 0.00 0.00 4.88 -4.45 1.37 N/A 0.00 as of June 30, 2023 Total Fund - Executive Summary City of Atlantic Beach General Employees' Pension 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 32 Agenda Item #4.A.10 Aug 2023Page 37 of 93 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Total Fund 7.40 11.08 1.10 -18.65 107.91 113.88 -0.73 0.63 0.94 03/01/2010 Policy Index 7.49 9.74 1.00 -18.89 100.00 100.00 0.00 0.71 1.00 03/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 2.87 -2.79 0.76 N/A 0.00 03/01/2010 City of Atlantic Beach General Employees' Pension Modern Portfolio Statistics - Since Inception as of June 30, 2023 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 Agenda Item #4.A.10 Aug 2023Page 38 of 93 Policy Target In Policy Outside Policy City of Atlantic Beach General Employees' Pension Asset Allocation Compliance As of June 30, 2023 6% 6% 30% 15% 10% 33% 0%10%20%30%40%50%60%70%80%90%100% Cash & Equivalents $0.K (0.0%) 0.0% - 11.0% Alternative Investments $2,300.6K (8.9%) 1.0% - 15.0% Fixed Income $5,805.7K (22.5%) 20.0% - 40.0% International Equity $3,381.7K (13.1%) 10.0% - 20.0% Mid-, Small, or Smid- Cap Equity $3,390.3K (13.1%) 5.0% - 20.0% Large Cap Equity $10,971.4K (42.4%) 20.0% - 50.0% The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 34 Agenda Item #4.A.10 Aug 2023Page 39 of 93 Allocation Market Value ($) % Performance(%) Current Quarter Fiscal YTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 25,855,508 100.00 3.77 16.09 7.61 11.09 8.48 6.67 7.67 7.51 7.39 04/01/2010 Total Fund (net)3.68 15.77 7.41 10.68 8.05 6.26 7.25 7.05 6.91 Policy Index 3.79 16.23 9.01 10.89 6.93 6.30 7.05 6.83 7.23 Domestic Equity JP Morgan - Equity Income 4,610,599 17.83 2.24 13.14 -0.02 7.95 14.74 9.93 10.90 10.74 10.31 04/01/2010 JP Morgan - Equity Income (net)2.13 12.77 -0.24 7.47 14.17 9.37 10.32 10.13 9.70 Russell 1000 Value 4.07 18.18 5.12 11.54 14.30 8.11 8.94 9.22 10.08 Columbia Mgmt - Select LC Grwth 1,605,446 6.21 10.92 35.95 25.98 31.25 7.72 10.88 14.01 12.48 12.38 04/01/2010 Columbia Mgmt - Select LC Grwth (net)10.80 35.50 25.71 30.68 7.19 10.33 13.44 11.88 11.78 Russell 1000 Gr 12.81 31.85 29.02 27.11 13.73 15.14 16.91 15.75 14.98 Pioneer - Large Cap Growth 2,238,365 8.66 10.17 28.83 19.03 25.63 13.61 14.42 N/A N/A 14.63 09/01/2016 Pioneer - Large Cap Growth (net)10.05 28.44 18.79 25.12 13.07 13.85 N/A N/A 14.06 Russell 1000 Gr 12.81 31.85 29.02 27.11 13.73 15.14 N/A N/A 16.65 Vanguard - S&P 500 Index ETF 1,497,569 5.79 8.72 25.64 16.85 19.93 14.58 N/A N/A N/A 13.38 09/01/2019 Vanguard - S&P 500 Index ETF (net)8.72 25.64 16.85 19.93 14.58 N/A N/A N/A 13.38 S&P 500 Total Return 8.74 25.73 16.89 19.59 14.60 N/A N/A N/A 13.42 Invesco - S&P 500 Equal Weight ETF 1,019,468 3.94 3.93 19.16 6.93 13.52 N/A N/A N/A N/A 1.29 06/01/2021 Invesco - S&P 500 Equal Weight ETF (net)3.88 19.00 6.84 13.32 N/A N/A N/A N/A 1.12 S&P 500 Equal Wtd 3.99 19.49 7.03 13.76 N/A N/A N/A N/A 1.54 S&P 500 Total Return 8.74 25.73 16.89 19.59 N/A N/A N/A N/A 4.39 Boston - SMID Value 2,157,336 8.34 3.82 17.68 6.71 10.62 19.90 6.67 9.73 8.52 8.59 04/01/2010 Boston - SMID Value (net)3.67 17.18 6.41 9.99 19.17 6.00 9.04 7.83 7.93 Russell 2500 VL 4.37 15.57 5.83 10.37 16.07 5.32 7.97 8.02 9.34 Riverbridge - SMID Growth 1,232,981 4.77 6.57 17.54 17.11 17.38 3.04 9.16 11.99 10.40 12.36 04/01/2010 Riverbridge - SMID Growth (net)6.42 17.04 16.78 16.71 2.40 8.48 11.29 9.69 11.67 Russell 2500 GR 6.41 18.73 13.38 18.58 6.56 7.00 10.95 10.38 11.45 City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of June 30, 2023 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 35 Agenda Item #4.A.10 Aug 2023Page 40 of 93 City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of June 30, 2023 Allocation Market Value ($) % Performance(%) Current Quarter Fiscal YTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date International Equity Lazard - International Strategic Equity 1,798,315 6.96 3.87 28.18 12.00 15.11 7.26 N/A N/A N/A 4.65 09/01/2019 Lazard - International Strategic Equity (net)3.87 28.18 12.00 15.11 7.26 N/A N/A N/A 4.65 MSCI EAFE Net 2.95 31.03 11.67 18.77 8.93 N/A N/A N/A 6.54 Vanguard - Total International Stock ETF 1,583,251 6.12 2.70 25.66 9.88 12.09 7.70 N/A N/A N/A 5.87 09/01/2019 Vanguard - Total International Stock ETF 2.70 25.66 9.88 12.09 7.70 N/A N/A N/A 5.87 FTSE Global All Cap x US (Net)2.45 24.35 8.97 12.31 7.44 N/A N/A N/A 5.64 Fixed Income BlackRock - PPM Short-Term Taxable Fixed Income 1,791,646 6.93 -0.17 2.48 1.45 1.70 N/A N/A N/A N/A 0.89 04/01/2022 BlackRock - PPM Short-Term Taxable Fixed Income (net)-0.23 2.27 1.31 1.43 N/A N/A N/A N/A 0.61 BC Gov/Cr 1-3 Yr -0.37 2.03 1.13 0.53 N/A N/A N/A N/A -0.09 Sage Advisory - Int. Fixed Income 4,014,067 15.52 -0.56 3.54 1.81 0.39 -1.62 1.79 1.31 1.88 1.59 05/01/2013 Sage Advisory - Int. Fixed Income (net)-0.66 3.25 1.62 0.02 -2.04 1.34 0.85 1.44 1.15 BB US Intermediate Gov/Cr -0.81 3.06 1.50 -0.09 -2.46 1.23 0.76 1.41 1.16 Alternatives Tortoise - MLP & Pipeline 1,412,595 5.46 4.26 14.50 4.68 16.13 24.63 N/A N/A N/A 7.66 09/01/2019 Tortoise - MLP & Pipeline (net)4.26 14.50 4.68 16.13 24.63 N/A N/A N/A 7.66 Alerian MLP Index 5.38 20.79 9.70 30.51 30.70 N/A N/A N/A 8.90 Principal - REIT 888,032 3.43 2.14 8.18 5.49 -0.73 N/A N/A N/A N/A 5.87 12/01/2020 Principal - REIT (net)2.01 7.75 5.22 -1.26 N/A N/A N/A N/A 5.27 MSCI REIT Gross 2.66 10.97 5.46 -0.09 N/A N/A N/A N/A 6.52 Cash & Equivalents Deposit & Disbursement Account -0.00 CGA - Cash 45 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 36 Agenda Item #4.A.10 Aug 2023Page 41 of 93 Current Quarter Fiscal YTD 1 Year 3 Years 4 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 3.68 15.77 10.68 8.09 6.19 6.27 7.25 6.47 5.32 03/10/2010 Domestic Equity JP Morgan - Equity Income 2.13 12.77 7.46 12.71 8.35 8.93 9.95 9.83 9.17 03/31/2010 Columbia Mgmt - Select LC Grwth 10.80 35.50 30.68 7.88 11.16 10.37 15.36 12.46 11.90 03/31/2010 Pioneer - Large Cap Growth 10.05 28.44 25.12 13.07 13.69 13.85 N/A N/A 14.06 08/31/2016 Vanguard - S&P 500 Index ETF 8.30 25.71 19.46 21.07 N/A N/A N/A N/A 0.00 09/30/2019 Invesco - S&P 500 Equal Weight ETF 3.88 19.00 13.33 N/A N/A N/A N/A N/A 1.12 05/31/2021 Boston - SMID Value 3.67 17.18 9.99 19.01 11.16 8.24 11.24 9.53 8.69 03/31/2010 Riverbridge - SMID Growth 6.42 17.04 16.71 3.55 7.38 8.95 12.96 11.71 12.50 03/31/2010 International Equity Lazard - International Strategic Equity 3.87 28.17 15.11 7.35 N/A N/A N/A N/A 0.00 09/30/2019 Vanguard - Total International Stock ETF 2.70 25.66 12.09 9.09 N/A N/A N/A N/A 0.00 09/27/2019 Fixed Income BlackRock - PPM Short-Term Taxable Fixed Income -0.23 2.27 1.43 N/A N/A N/A N/A N/A 0.61 03/31/2022 Sage Advisory - Int. Fixed Income -0.66 3.25 0.02 -2.04 0.13 1.29 0.77 1.70 1.59 04/30/2013 Alternative Investments Tortoise - MLP & Pipeline 4.26 14.51 16.14 25.35 N/A N/A N/A N/A 95.75 09/30/2019 Principal - REIT 2.01 7.75 -1.26 N/A N/A N/A N/A N/A 2.33 11/30/2020 City of Atlantic Beach General Employees' Pension Asset Allocation & Net Dollar Weighted Performance (IRR) as of June 30, 2023 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 Agenda Item #4.A.10 Aug 2023Page 42 of 93 Manager Performance Analysis Page 38 Agenda Item #4.A.10 Aug 2023Page 43 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 32.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception JP Morgan - Equity Income Russell 1000 Value 90-Day T-Bills -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Return (%)-6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 24.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date JP Morgan - Equity Income 2.24 13.14 7.95 14.74 9.93 10.90 10.74 10.31 04/01/2010 Russell 1000 Value 4.07 18.18 11.54 14.30 8.11 8.94 9.22 10.08 Differences -1.83 -5.04 -3.59 0.44 1.82 1.96 1.52 0.23 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date JP Morgan - Equity Income 04/01/2010 Beginning Market Value 4,517 4,095 4,300 2,548 2,242 2,144 1,103 1,346 Net Contributions -3 -7 -10 731 921 486 955 385 Fees/Expenses -5 -15 -20 -61 -88 -113 -153 -180 Income 32 100 130 319 475 594 721 811 Gain/Loss 69 438 211 1,073 1,060 1,500 1,984 2,248 Ending Market Value 4,611 4,611 4,611 4,611 4,611 4,611 4,611 4,611 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date JP Morgan - Equity Income 10.31 14.80 0.95 -24.18 97.84 95.28 0.68 0.69 0.94 04/01/2010 Russell 1000 Value 10.09 15.06 1.00 -26.73 100.00 100.00 0.00 0.67 1.00 04/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 1.79 -1.93 0.77 N/A 0.00 04/01/2010 as of June 30, 2023 JP Morgan - Equity Income - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 44 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 15.0 30.0 45.0 60.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Columbia Mgmt - Select LC Grwth Russell 1000 Gr 90-Day T-Bills -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Columbia Mgmt - Select LC Grwth 10.92 35.95 31.25 7.72 10.88 14.01 12.48 12.38 04/01/2010 Russell 1000 Gr 12.81 31.85 27.11 13.73 15.14 16.91 15.75 14.98 Differences -1.89 4.10 4.14 -6.01 -4.26 -2.90 -3.27 -2.60 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Columbia Mgmt - Select LC Grwth 04/01/2010 Beginning Market Value 1,449 1,185 1,229 1,411 1,270 2,099 1,085 1,347 Net Contributions ----143 -333 -1,655 -1,463 -2,212 Fees/Expenses -2 -4 -6 -24 -36 -48 -103 -131 Income 2 5 6 18 27 38 68 107 Gain/Loss 156 420 376 344 678 1,172 2,018 2,495 Ending Market Value 1,605 1,605 1,605 1,605 1,605 1,605 1,605 1,605 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Columbia Mgmt - Select LC Grwth 12.38 19.12 1.11 -40.18 102.96 117.78 -3.44 0.67 0.88 04/01/2010 Russell 1000 Gr 14.99 16.13 1.00 -30.66 100.00 100.00 0.00 0.91 1.00 04/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 1.79 -1.41 0.75 N/A 0.00 04/01/2010 as of June 30, 2023 Columbia - Large Cap Growth - Executive Summary City of Atlantic Beach General Employees' Pension 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 40 Agenda Item #4.A.10 Aug 2023Page 45 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 15.0 30.0 45.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years Since Inception Pioneer - Large Cap Growth Russell 1000 Gr 90-Day T-Bills -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years Since Inception Inception Date Pioneer - Large Cap Growth 10.17 28.83 25.63 13.61 14.42 14.63 09/01/2016 Russell 1000 Gr 12.81 31.85 27.11 13.73 15.14 16.65 Differences -2.64 -3.02 -1.48 -0.12 -0.72 -2.02 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years Since Inception Inception Date Pioneer - Large Cap Growth 09/01/2016 Beginning Market Value 2,034 1,743 1,789 1,548 1,170 911 Net Contributions ------ Fees/Expenses -2 -6 -8 -28 -42 -51 Income 5 14 18 51 83 110 Gain/Loss 202 488 439 667 1,027 1,269 Ending Market Value 2,238 2,238 2,238 2,238 2,238 2,238 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Pioneer - Large Cap Growth 14.63 16.31 0.86 -25.69 86.73 85.94 0.20 0.84 0.95 09/01/2016 Russell 1000 Gr 16.65 18.41 1.00 -30.66 100.00 100.00 0.00 0.86 1.00 09/01/2016 90-Day T-Bills 1.40 0.38 0.00 0.00 2.87 -2.10 1.38 N/A 0.00 09/01/2016 as of June 30, 2023 Pioneer - Large Cap Growth - Executive Summary City of Atlantic Beach General Employees' Pension 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 41 Agenda Item #4.A.10 Aug 2023Page 46 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 10.0 20.0 30.0 40.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years Since Inception Vanguard - S&P 500 Index ETF S&P 500 Total Return 90-Day T-Bills -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Vanguard - S&P 500 Index ETF 8.72 25.64 19.93 14.58 13.38 09/01/2019 S&P 500 Total Return 8.74 25.73 19.59 14.60 13.42 Differences -0.02 -0.09 0.34 -0.02 -0.04 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Vanguard - S&P 500 Index ETF 09/01/2019 Beginning Market Value 1,383 1,192 1,254 1,950 - Net Contributions ---1 -1,298 -1,325 Fees/Expenses ----- Income ----- Gain/Loss 115 306 244 846 2,822 Ending Market Value 1,498 1,498 1,498 1,498 1,498 Return Standard Deviation Beta Maximum Return Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Vanguard - S&P 500 Index ETF 13.38 19.24 1.01 12.79 100.51 100.92 -0.12 0.68 1.00 09/01/2019 S&P 500 Total Return 13.43 19.10 1.00 12.82 100.00 100.00 0.00 0.69 1.00 09/01/2019 90-Day T-Bills 1.34 0.48 0.00 0.43 2.62 -1.95 1.34 N/A 0.00 09/01/2019 as of June 30, 2023 Vanguard - S&P 500 Index ETF - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 47 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 32.0 ReturnCurrent Quarter Fiscal YTD 1 Year Since Inception Invesco - S&P 500 Equal Weight ETF S&P 500 Equal Wtd 90-Day T-Bills 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year Since Inception Inception Date Invesco - S&P 500 Equal Weight ETF 3.93 19.16 13.52 1.29 06/01/2021 S&P 500 Equal Wtd 3.99 19.49 13.76 1.54 Differences -0.06 -0.33 -0.24 -0.25 Current Quarter Fiscal YTD 1 Year Since Inception Inception Date Invesco - S&P 500 Equal Weight ETF 06/01/2021 Beginning Market Value 981 856 898 993 Net Contributions -1 1 3 Fees/Expenses --1 -2 -4 Income 4 13 17 36 Gain/Loss 34 151 104 -9 Ending Market Value 1,019 1,019 1,019 1,019 Return Standard Deviation Alpha Beta Down Capture Maximum Drawdown R-Squared Sharpe Ratio Up Capture Inception Date Invesco - S&P 500 Equal Weight ETF 1.29 18.63 -0.24 1.00 100.44 -20.69 1.00 0.06 99.51 06/01/2021 S&P 500 Equal Wtd 1.54 18.67 0.00 1.00 100.00 -20.68 1.00 0.08 100.00 06/01/2021 90-Day T-Bills 1.88 0.57 1.87 0.00 -3.73 0.00 0.01 N/A 3.21 06/01/2021 as of June 30, 2023 Invesco - S&P 500 Equal Weight ETF - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 48 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 32.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Boston - SMID Value Russell 2500 VL 90-Day T-Bills -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Boston - SMID Value 3.82 17.68 10.62 19.90 6.67 9.73 8.52 8.59 04/01/2010 Russell 2500 VL 4.37 15.57 10.37 16.07 5.32 7.97 8.02 9.34 Differences -0.55 2.11 0.25 3.83 1.35 1.76 0.50 -0.75 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Boston - SMID Value 04/01/2010 Beginning Market Value 2,081 1,841 1,961 1,097 1,310 1,273 641 912 Net Contributions ---181 186 -213 255 -210 Fees/Expenses -3 -9 -12 -37 -51 -68 -88 -106 Income 9 31 41 105 148 194 220 252 Gain/Loss 71 294 167 811 564 971 1,130 1,310 Ending Market Value 2,157 2,157 2,157 2,157 2,157 2,157 2,157 2,157 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Boston - SMID Value 8.59 20.37 1.07 -38.66 102.99 106.31 -1.07 0.47 0.95 04/01/2010 Russell 2500 VL 9.35 18.50 1.00 -34.64 100.00 100.00 0.00 0.54 1.00 04/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 1.42 -1.75 0.77 N/A 0.01 04/01/2010 as of June 30, 2023 Boston - SMID Value - Executive Summary City of Atlantic Beach General Employees' Pension 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 44 Agenda Item #4.A.10 Aug 2023Page 49 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 32.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Riverbridge - SMID Growth Russell 2500 GR 90-Day T-Bills -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Riverbridge - SMID Growth 6.57 17.54 17.38 3.04 9.16 11.99 10.40 12.36 04/01/2010 Russell 2500 GR 6.41 18.73 18.58 6.56 7.00 10.95 10.38 11.45 Differences 0.16 -1.19 -1.20 -3.52 2.16 1.04 0.02 0.91 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Riverbridge - SMID Growth 04/01/2010 Beginning Market Value 1,159 1,054 1,056 1,255 1,370 1,301 310 439 Net Contributions ----152 -620 -1,019 -311 -651 Fees/Expenses -2 -5 -6 -26 -40 -57 -78 -86 Income 2 5 6 18 30 44 59 70 Gain/Loss 75 180 177 138 492 963 1,253 1,462 Ending Market Value 1,233 1,233 1,233 1,233 1,233 1,233 1,233 1,233 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Riverbridge - SMID Growth 12.36 17.44 0.86 -35.73 92.06 83.87 2.30 0.72 0.87 04/01/2010 Russell 2500 GR 11.46 18.85 1.00 -32.84 100.00 100.00 0.00 0.63 1.00 04/01/2010 90-Day T-Bills 0.76 0.33 0.00 0.00 1.33 -1.76 0.76 N/A 0.00 04/01/2010 as of June 30, 2023 Riverbridge - SMID Growth - Executive Summary City of Atlantic Beach General Employees' Pension 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 45 Agenda Item #4.A.10 Aug 2023Page 50 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 15.0 30.0 45.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years Since Inception Lazard - International Strategic Equity MSCI EAFE Net 90-Day T-Bills -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Lazard - International Strategic Equity 3.87 28.18 15.11 7.26 4.65 09/01/2019 MSCI EAFE Net 2.95 31.03 18.77 8.93 6.54 Differences 0.92 -2.85 -3.66 -1.67 -1.89 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Lazard - International Strategic Equity 09/01/2019 Beginning Market Value 1,731 1,403 1,562 1,486 - Net Contributions ----35 -35 Fees/Expenses ----- Income ----- Gain/Loss 67 395 236 347 1,833 Ending Market Value 1,798 1,798 1,798 1,798 1,798 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Lazard - International Strategic Equity 4.65 19.34 1.01 -30.69 97.17 103.72 -1.71 0.26 0.95 09/01/2019 MSCI EAFE Net 6.54 18.66 1.00 -27.30 100.00 100.00 0.00 0.36 1.00 09/01/2019 90-Day T-Bills 1.34 0.48 0.00 0.00 3.02 -1.96 1.33 N/A 0.01 09/01/2019 as of June 30, 2023 Lazard - International Strategic Equity - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 51 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 10.0 20.0 30.0 40.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years Since Inception Vanguard - Total International Stock ETF FTSE Global All Cap x US (Net) 90-Day T-Bills -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Vanguard - Total International Stock ETF 2.70 25.66 12.09 7.70 5.87 09/01/2019 FTSE Global All Cap x US (Net)2.45 24.35 12.31 7.44 5.64 Differences 0.25 1.31 -0.22 0.26 0.23 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Vanguard - Total International Stock ETF 09/01/2019 Beginning Market Value 1,542 1,260 1,413 1,474 - Net Contributions ----273 -311 Fees/Expenses ----- Income ----- Gain/Loss 42 323 171 382 1,895 Ending Market Value 1,583 1,583 1,583 1,583 1,583 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Vanguard - Total International Stock ETF 5.87 18.70 1.01 -27.76 103.69 103.53 0.19 0.33 0.98 09/01/2019 FTSE Global All Cap x US (Net)5.65 18.27 1.00 -27.66 100.00 100.00 0.00 0.32 1.00 09/01/2019 90-Day T-Bills 1.34 0.48 0.00 0.00 2.88 -2.44 1.34 N/A 0.00 09/01/2019 as of June 30, 2023 Vanguard - Total International Stock ETF - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 52 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 2.0 4.0 -2.0Return Current Quarter Fiscal YTD 1 Year Since Inception BlackRock - PPM Short-Term Taxable Fixed Income BC Gov/Cr 1-3 Yr 90-Day T-Bills -1.8 -0.9 0.0 0.9 1.8 2.7 3.6 4.5 Return (%)-0.8 -0.4 0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 3.6 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year Since Inception Inception Date BlackRock - PPM Short-Term Taxable Fixed Income -0.17 2.48 1.70 0.89 04/01/2022 BC Gov/Cr 1-3 Yr -0.37 2.03 0.53 -0.09 Differences 0.20 0.45 1.17 0.98 Current Quarter Fiscal YTD 1 Year Since Inception Inception Date BlackRock - PPM Short-Term Taxable Fixed Income 04/01/2022 Beginning Market Value 1,796 1,752 1,766 1,778 Net Contributions ---- Fees/Expenses -1 -4 -5 -6 Income 14 31 37 42 Gain/Loss -17 12 -7 -23 Ending Market Value 1,792 1,792 1,792 1,792 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date BlackRock - PPM Short-Term Taxable Fixed Income 0.89 2.04 0.80 -1.38 92.32 67.56 0.95 -1.11 0.97 04/01/2022 BC Gov/Cr 1-3 Yr -0.09 2.52 1.00 -2.29 100.00 100.00 0.00 -1.28 1.00 04/01/2022 90-Day T-Bills 3.11 0.49 0.05 0.00 40.87 -39.10 3.11 N/A 0.07 04/01/2022 as of June 30, 2023 BlackRock - PPM Short-Term Taxable Fixed Income - Executive Summary City of Atlantic Beach General Employees' Pension 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 48 Agenda Item #4.A.10 Aug 2023Page 53 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 3.0 6.0 -3.0 -6.0Return Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Sage Advisory - Int. Fixed Income BB US Intermediate Gov/Cr 90-Day T-Bills 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Return (%)-1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Sage Advisory - Int. Fixed Income -0.56 3.54 0.39 -1.62 1.79 1.31 1.88 1.59 05/01/2013 BB US Intermediate Gov/Cr -0.81 3.06 -0.09 -2.46 1.23 0.76 1.41 1.16 Differences 0.25 0.48 0.48 0.84 0.56 0.55 0.47 0.43 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Sage Advisory - Int. Fixed Income 05/01/2013 Beginning Market Value 4,041 3,888 4,013 4,271 4,368 4,400 2,363 998 Net Contributions -----606 -606 1,019 2,419 Fees/Expenses -4 -11 -15 -55 -93 -136 -183 -185 Income 30 79 98 295 524 746 1,063 1,046 Gain/Loss -53 59 -83 -497 -179 -390 -248 -264 Ending Market Value 4,014 4,014 4,014 4,014 4,014 4,014 4,014 4,014 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Sage Advisory - Int. Fixed Income 1.59 3.11 0.99 -10.79 105.36 94.37 0.44 0.22 0.92 05/01/2013 BB US Intermediate Gov/Cr 1.16 3.01 1.00 -11.32 100.00 100.00 0.00 0.08 1.00 05/01/2013 90-Day T-Bills 0.96 0.36 0.02 0.00 11.89 -12.75 0.94 N/A 0.02 05/01/2013 as of June 30, 2023 Sage - Int. Fixed Income - Executive Summary City of Atlantic Beach General Employees' Pension 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 49 Agenda Item #4.A.10 Aug 2023Page 54 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 15.0 30.0 45.0 ReturnCurrent Quarter Fiscal YTD 1 Year 3 Years Since Inception Tortoise - MLP & Pipeline Alerian MLP Index 90-Day T-Bills -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Return (%)-20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Tortoise - MLP & Pipeline 4.26 14.50 16.13 24.63 7.66 09/01/2019 Alerian MLP Index 5.38 20.79 30.51 30.70 8.90 Differences -1.12 -6.29 -14.38 -6.07 -1.24 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Tortoise - MLP & Pipeline 09/01/2019 Beginning Market Value 1,355 1,234 1,216 831 - Net Contributions ----150 50 Fees/Expenses ----- Income ----- Gain/Loss 58 179 196 731 1,363 Ending Market Value 1,413 1,413 1,413 1,413 1,413 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Tortoise - MLP & Pipeline 7.66 33.60 0.75 -49.35 82.70 87.02 -0.17 0.37 0.93 09/01/2019 Alerian MLP Index 8.90 43.46 1.00 -58.93 100.00 100.00 0.00 0.40 1.00 09/01/2019 90-Day T-Bills 1.34 0.48 0.00 0.00 1.16 -1.70 1.36 N/A 0.01 09/01/2019 as of June 30, 2023 Tortoise - MLP & Pipeline - Executive Summary City of Atlantic Beach General Employees' Pension 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 Agenda Item #4.A.10 Aug 2023Page 55 of 93 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 6.0 12.0 18.0 -6.0Return Current Quarter Fiscal YTD 1 Year Since Inception Principal - REIT MSCI REIT Gross 90-Day T-Bills -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Return (%)-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year Since Inception Inception Date Principal - REIT 2.14 8.18 -0.73 5.87 12/01/2020 MSCI REIT Gross 2.66 10.97 -0.09 6.52 Differences -0.52 -2.79 -0.64 -0.65 Current Quarter Fiscal YTD 1 Year Since Inception Inception Date Principal - REIT 12/01/2020 Beginning Market Value 871 824 899 446 Net Contributions ---395 Fees/Expenses -1 -3 -5 -12 Income 9 25 35 70 Gain/Loss 10 42 -42 -11 Ending Market Value 888 888 888 888 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Principal - REIT 5.87 19.12 0.95 -26.14 94.93 96.33 -0.36 0.31 0.99 12/01/2020 MSCI REIT Gross 6.51 20.03 1.00 -28.26 100.00 100.00 0.00 0.34 1.00 12/01/2020 90-Day T-Bills 1.52 0.55 0.00 0.00 2.12 -2.97 1.54 N/A 0.01 12/01/2020 as of June 30, 2023 Principal - REIT - Executive Summary City of Atlantic Beach General Employees' Pension 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 51 Agenda Item #4.A.10 Aug 2023Page 56 of 93 Manager vs : Return RankPSN Large Cap Value As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile JPMorgan Equity Income Russell 1000 Value 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS JPMorgan Equity Income 2.33 0.13 8.10 14.66 9.85 10.80 10.86 Russell 1000 Value 4.07 5.12 11.54 14.30 8.11 8.94 9.22 Calendar Year Return JPMorgan Equity Income Russell 1000 Value 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -10 0 10 20 30 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 JPMorgan Equity Income (1.36)25.98 4.34 27.28 (3.78)18.41 15.69 (1.64)14.53 32.55 Russell 1000 Value (7.54)25.16 2.80 26.54 (8.27)13.66 17.34 (3.83)13.45 32.53 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) 0 5 10 15 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO JPMorgan Equity Income 10.86 14.02 0.91 2.23 97.47 0.70 Russell 1000 Value 9.22 15.18 1.00 0.00 100.00 0.54 Lead Portfolio Manager: (Since: Ms. Clare A. Hart )Jan 1999 12/2002 12/2007 12/2012 12/2017 12/2022 0 200 400 600 800 1,000 January 2003 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN JPMorgan Equity Income 10.95 698.64 2.12 255.84 Manager vs Benchmark: Alpha JPMorgan Equity Income YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 JPMorgan Equity Income 2.25 3.61 2.81 3.09 2.91 2.00 1.43 2.81 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisJPM US Equity Income as of June 30, 2023 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 52 Agenda Item #4.A.10 Aug 2023Page 57 of 93 Manager vs : Return RankPSN Large Cap Growth As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Columbia Cap Adv Select … Russell 1000 Growth 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Columbia Cap Adv Select LCG SMA-C 10.90 25.96 30.90 8.05 10.89 14.06 13.52 Russell 1000 Growth 12.81 29.02 27.11 13.73 15.14 16.91 15.74 Calendar Year Return Columbia Cap Adv Select LCG SMA-C Russell 1000 Growth 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 0 20 40 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Columbia Cap Adv Select LCG SMA-C (31.18)10.20 48.08 37.76 (3.85)35.71 (8.28)7.71 8.46 44.41 Russell 1000 Growth (29.14)27.60 38.49 36.39 (1.51)30.21 7.08 5.67 13.05 33.48 Risk / Return: July 2013 - June 2023 0 2 4 6 8 10 12 14 16 18 20 22 Standard Deviation (%) 0 5 10 15 20 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Columbia Cap Adv Select LCG SMA-C 13.52 19.84 1.10 (3.00)85.52 0.63 Russell 1000 Growth 15.74 16.62 1.00 0.00 100.00 0.89 Lead Portfolio Manager: (Since: Mr. Thomas M. Galvin, CFA )Jan 2003 1/2012 12/2014 12/2016 12/2018 12/2020 12/2022 0 100 200 300 400 500 600 February 2012 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Columbia Cap Adv Select LCG SMA-C 11.68 233.94 (2.04)(72.80) Manager vs Benchmark: Alpha Columbia Cap Adv Select LCG SMA-C YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception -20 0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Columbia Cap Adv Select LCG SMA-C (4.33)(5.01)(1.72)(4.93)(3.86)(3.10)(3.38)N/A City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisColumbia Select Lrg Cap Grw SMA Cmp as of June 30, 2023 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 53 Agenda Item #4.A.10 Aug 2023Page 58 of 93 Manager vs : Return RankPSN Large Cap Growth As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Amundi Asset Amundi Pio… Russell 1000 Growth 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Amundi Asset Amundi Pioneer C 9.83 19.41 26.11 13.73 14.69 15.19 14.93 Russell 1000 Growth 12.81 29.02 27.11 13.73 15.14 16.91 15.74 Calendar Year Return Amundi Asset Amundi Pioneer C Russell 1000 Growth 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 0 20 40 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Amundi Asset Amundi Pioneer C (19.89)24.55 28.14 35.20 0.42 24.08 4.80 7.56 15.19 34.32 Russell 1000 Growth (29.14)27.60 38.49 36.39 (1.51)30.21 7.08 5.67 13.05 33.48 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Standard Deviation (%) 0 5 10 15 20 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Amundi Asset Amundi Pioneer C 14.93 15.13 0.89 0.89 94.63 0.92 Russell 1000 Growth 15.74 16.62 1.00 0.00 100.00 0.89 Lead Portfolio Manager: (Since: Mr. Andrew Acheson )Jan 2007 7/2009 12/2011 12/2013 12/2015 12/2017 12/2019 12/2022 0 200 400 600 800 1,000 August 2009 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Amundi Asset Amundi Pioneer C 14.17 492.10 (0.01)(1.01) Manager vs Benchmark: Alpha Amundi Asset Amundi Pioneer C YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception -10 0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Amundi Asset Amundi Pioneer C 1.17 (0.10)(0.05)(0.41)1.53 0.31 0.96 2.31 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisAmundi Pioneer Concentrated Growth as of June 30, 2023 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 54 Agenda Item #4.A.10 Aug 2023Page 59 of 93 Manager vs : Return RankLarge Blend Universe As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Vanguard S&P 500 ETF (M… S&P 500 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Vanguard S&P 500 ETF (MKT)8.72 16.85 19.43 14.61 12.22 13.34 12.83 S&P 500 8.74 16.89 19.59 14.60 12.31 13.38 12.86 Calendar Year Return Vanguard S&P 500 ETF (MKT)S&P 500 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 -10 0 10 20 30 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Vanguard S&P 500 ETF (MKT)(18.19)28.78 18.29 31.35 (4.50)21.77 12.17 1.31 13.55 32.39 S&P 500 (18.11)28.71 18.40 31.49 (4.38)21.83 11.96 1.38 13.69 32.39 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) 0 5 10 15 20 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Vanguard S&P 500 ETF (MKT)12.83 14.91 1.00 (0.01)99.96 0.80 S&P 500 12.86 14.93 1.00 0.00 100.00 0.80 Lead Portfolio Manager: (Since: ) 10/2010 12/2012 12/2014 12/2016 12/2018 12/2020 12/2022 0 100 200 300 400 500 600 November 2010 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Vanguard S&P 500 ETF (MKT)12.31 310.59 (0.05)(2.12) Manager vs Benchmark: Alpha Vanguard S&P 500 ETF (MKT) YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception -0.1 0.0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Vanguard S&P 500 ETF (MKT)(0.06)(0.00)0.04 (0.03)0.02 0.00 (0.10)(0.02) City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisVanguard S&P 500 ETF as of June 30, 2023 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 55 Agenda Item #4.A.10 Aug 2023Page 60 of 93 Manager vs : Return RankLarge Blend Universe As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Invesco S&P 500® Equal … S&P 500 EQUAL WEIGHTED 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Invesco S&P 500® Equal Weight ETF (MKT)3.92 6.93 13.50 15.61 10.01 11.21 11.19 S&P 500 EQUAL WEIGHTED 3.99 7.03 13.76 15.82 10.21 11.45 11.48 Calendar Year Return Invesco S&P 500® Equal Weight ETF (MKT)S&P 500 EQUAL WEIGHTED 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -10 0 10 20 30 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Invesco S&P 500® Equal Weight ETF (MKT)(11.62)29.41 12.71 28.91 (7.82)18.51 14.50 (2.66)14.06 35.53 S&P 500 EQUAL WEIGHTED (11.45)29.63 12.83 29.24 (7.64)18.90 14.80 (2.20)14.49 36.16 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Standard Deviation (%) 0 5 10 15 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Invesco S&P 500® Equal Weight ETF (MKT)11.19 16.24 1.00 (0.24)99.98 0.63 S&P 500 EQUAL WEIGHTED 11.48 16.27 1.00 0.00 100.00 0.65 Lead Portfolio Manager: (Since: ) 5/2003 12/2008 12/2013 12/2018 12/2022 0 200 400 600 800 1,000 June 2003 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Invesco S&P 500® Equal Weight ETF (MKT)10.28 580.13 (0.46)(58.11) Manager vs Benchmark: Alpha Invesco S&P 500® Equal Weight ETF (MKT) YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0.0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Invesco S&P 500® Equal Weight ETF (MKT)(0.17)(0.17)(0.20)(0.25)(0.28)(0.32)(0.42)(0.46) City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisInvesco S&P 500® Equal Weight ETF as of June 30, 2023 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 56 Agenda Item #4.A.10 Aug 2023Page 61 of 93 Manager vs : Return RankPSN Small-Mid Value As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Boston Partners BP Smid Russell 2500 Value 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Boston Partners BP Smid 3.78 6.65 10.26 19.66 6.66 9.61 9.21 Russell 2500 Value 4.37 5.83 10.37 16.07 5.32 7.97 8.02 Calendar Year Return Boston Partners BP Smid Russell 2500 Value 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 0 20 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Boston Partners BP Smid (9.12)27.64 4.49 31.79 (18.56)13.64 25.36 (3.06)5.34 35.33 Russell 2500 Value (13.08)27.78 4.88 23.56 (12.36)10.36 25.20 (5.49)7.11 33.32 Risk / Return: July 2013 - June 2023 0 2 4 6 8 10 12 14 16 18 20 22 Standard Deviation (%) 0 5 10 15 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Boston Partners BP Smid 9.21 20.07 1.05 0.91 96.93 0.41 Russell 2500 Value 8.02 18.87 1.00 0.00 100.00 0.37 Lead Portfolio Manager: (Since: Mr. George Gumpert, CFA )Jan 2000 7/2001 12/2006 12/2011 12/2016 12/2022 0 200 400 600 800 1,000 August 2001 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Boston Partners BP Smid 9.91 656.66 1.41 182.79 Manager vs Benchmark: Alpha Boston Partners BP Smid YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0 2 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Boston Partners BP Smid 1.28 0.88 0.54 (0.52)0.13 0.88 1.37 0.71 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisBoston Partners Small/Mid Cap Val Eq as of June 30, 2023 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 57 Agenda Item #4.A.10 Aug 2023Page 62 of 93 Manager vs : Return RankPSN Small-Mid Growth As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Riverbridge Part SMID Cap… Russell 2500 Growth 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Riverbridge Part SMID Cap Growth 6.77 17.48 17.89 3.53 9.39 12.30 11.11 Russell 2500 Growth 6.41 13.38 18.58 6.56 7.00 10.95 10.38 Calendar Year Return Riverbridge Part SMID Cap Growth Russell 2500 Growth 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 0 20 40 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Riverbridge Part SMID Cap Growth (31.56)6.88 47.90 33.09 0.44 26.27 8.58 0.37 3.90 35.98 Russell 2500 Growth (26.21)5.04 40.47 32.65 (7.47)24.46 9.73 (0.19)7.05 40.65 Risk / Return: July 2013 - June 2023 0 2 4 6 8 10 12 14 16 18 20 Standard Deviation (%) 0 5 10 15 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Riverbridge Part SMID Cap Growth 11.11 17.37 0.86 2.01 88.23 0.58 Russell 2500 Growth 10.38 18.95 1.00 0.00 100.00 0.50 Lead Portfolio Manager: (Since: Mr. Ross Johnson )Sep 2010 1/2007 12/2009 12/2011 12/2013 12/2015 12/2017 12/2019 12/2022 0 200 400 600 800 February 2007 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Riverbridge Part SMID Cap Growth 10.41 383.46 2.10 127.55 Manager vs Benchmark: Alpha Riverbridge Part SMID Cap Growth YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0 10 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Riverbridge Part SMID Cap Growth 3.10 2.64 4.86 6.38 4.16 1.05 0.74 4.10 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisSMID Cap Growth as of June 30, 2023 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 58 Agenda Item #4.A.10 Aug 2023Page 63 of 93 Manager vs : Return RankForeign Large Blend Universe As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Lazard International Strat… MSCI EAFE (Net) 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Lazard International Strategic Eq Instl 3.87 12.00 15.11 7.26 3.48 5.60 5.00 MSCI EAFE (Net)2.95 11.67 18.77 8.93 4.39 6.88 5.41 Calendar Year Return Lazard International Strategic Eq Instl MSCI EAFE (Net) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -10 0 10 20 30 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Lazard International Strategic Eq Instl (16.88)5.99 10.58 21.55 (10.35)27.85 (5.17)(1.70)(1.48)25.02 MSCI EAFE (Net)(14.45)11.26 7.82 22.01 (13.79)25.03 1.00 (0.81)(4.90)22.78 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) 0 2 4 6 8 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Lazard International Strategic Eq Instl 5.00 15.08 0.97 (0.16)92.27 0.27 MSCI EAFE (Net)5.41 14.98 1.00 0.00 100.00 0.30 Lead Portfolio Manager: (Since: ) 11/2005 12/2009 12/2011 12/2013 12/2015 12/2017 12/2019 12/2022 50 100 150 200 250 300 350 December 2005 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Lazard International Strategic Eq Instl 5.02 131.03 1.12 38.74 Manager vs Benchmark: Alpha Lazard International Strategic Eq Instl YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0 5 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Lazard International Strategic Eq Instl (0.78)0.84 (0.55)(0.33)0.72 0.85 1.00 3.24 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisLazard International Strategic Eq Instl as of June 30, 2023 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 59 Agenda Item #4.A.10 Aug 2023Page 64 of 93 Manager vs : Return RankForeign Large Blend Universe As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Vanguard Total Internatio… FTSE GLOBAL ALL CAP EX … 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Vanguard Total International Stock ETF (MKT)2.69 9.87 12.08 7.72 3.73 6.42 5.08 FTSE GLOBAL ALL CAP EX US INDEX 2.68 9.35 12.89 7.94 3.97 6.78 5.40 Calendar Year Return Vanguard Total International Stock ETF (MKT)FTSE GLOBAL ALL CAP EX US INDEX 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -10 0 10 20 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Vanguard Total International Stock ETF (MKT) (16.09)9.00 10.69 21.75 (14.43)27.45 4.81 (4.19)(4.74)14.61 FTSE GLOBAL ALL CAP EX US INDEX (15.83)9.13 11.54 22.19 (14.36)27.77 5.04 (4.03)(3.12)15.90 Risk / Return: July 2013 - June 2023 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) 0 2 4 6 8 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Vanguard Total International Stock ETF (MKT)5.08 15.08 1.01 (0.31)97.97 0.27 FTSE GLOBAL ALL CAP EX US INDEX 5.40 14.81 1.00 0.00 100.00 0.30 Lead Portfolio Manager: (Since: ) 2/2011 12/2013 12/2015 12/2017 12/2019 12/2022 50 100 150 200 March 2011 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Vanguard Total International Stock ETF (MKT)3.16 44.54 (0.45)(7.68) Manager vs Benchmark: Alpha Vanguard Total International Stock ETF (MKT) YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception -1 0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Vanguard Total International Stock ETF (MKT)(0.25)(0.20)(0.36)(0.29)(0.33)(0.26)(0.25)(0.37) City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisVanguard Total International Stock ETF as of June 30, 2023 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 60 Agenda Item #4.A.10 Aug 2023Page 65 of 93 Manager vs : Return RankPSN Short Term Fixed Income As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile BlackRock Short Term TFI Bloomberg U.S. Governme… 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS BlackRock Short Term TFI (0.29)1.30 1.02 (0.56)1.43 1.18 1.23 Bloomberg U.S. Government/Credit: 1-3 Year (0.37)1.13 0.53 (0.88)1.13 0.89 0.99 Calendar Year Return BlackRock Short Term TFI Bloomberg U.S. Government/Credit: 1-3 Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -4 -2 0 2 4 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 BlackRock Short Term TFI (3.26)(0.29)3.60 4.45 1.73 1.34 1.09 0.77 0.90 0.55 Bloomberg U.S. Government /Credit: 1-3 Year (3.69)(0.47)3.33 4.03 1.60 0.84 1.28 0.65 0.77 0.64 Risk / Return: July 2013 - June 2023 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 Standard Deviation (%) 0.9 1.0 1.1 1.2 1.3 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO BlackRock Short Term TFI 1.23 1.31 0.96 0.28 94.19 0.19 Bloomberg U.S. Government /Credit: 1-3 Year 0.99 1.32 1.00 0.00 100.00 0.01 Lead Portfolio Manager: (Since: Mr. Kevin Bormida )Feb 1991 7/2012 12/2014 12/2016 12/2018 12/2020 12/2022 95 100 105 110 115 120 August 2012 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN BlackRock Short Term TFI 1.09 11.91 0.21 2.39 Manager vs Benchmark: Alpha BlackRock Short Term TFI YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0.0 0.5 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 BlackRock Short Term TFI 0.34 0.33 0.33 0.35 0.24 0.22 0.06 0.09 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisShort Term Taxable Fixed Income SMA as of June 30, 2023 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 61 Agenda Item #4.A.10 Aug 2023Page 66 of 93 Manager vs : Return RankPSN CF Intermediate Fixed Income As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Sage Advisory Interm Tax… Bloomberg U.S. Governme… 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Sage Advisory Interm Taxable (0.47)1.88 0.43 (1.57)1.81 1.29 1.81 Bloomberg U.S. Government/Credit: Intermediate (0.81)1.50 (0.10)(2.46)1.23 0.76 1.41 Calendar Year Return Sage Advisory Interm Taxable Bloomberg U.S. Government/Credit: Intermediate 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -5 0 5 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Sage Advisory Interm Taxable (8.14)(0.79)7.83 7.45 0.75 2.59 2.09 1.23 2.99 (0.32) Bloomberg U.S. Government/Credit: Intermediate (8.24)(1.44)6.43 6.80 0.88 2.14 2.08 1.07 3.13 (0.86) Risk / Return: July 2013 - June 2023 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.2 3.4 Standard Deviation (%) 0.5 1.0 1.5 2.0 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Sage Advisory Interm Taxable 1.81 3.16 1.00 0.40 89.01 0.26 Bloomberg U.S. Government /Credit: Intermediate 1.41 2.99 1.00 0.00 100.00 0.15 Lead Portfolio Manager: (Since: Mr. Robert G. Smith, III )Dec 1996 1/1997 12/2002 12/2007 12/2012 12/2017 12/2022 50 100 150 200 250 300 350 February 1997 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Sage Advisory Interm Taxable 4.21 190.82 0.29 20.37 Manager vs Benchmark: Alpha Sage Advisory Interm Taxable YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 0.0 0.5 1.0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Sage Advisory Interm Taxable 0.54 0.52 0.39 (0.02)0.33 0.41 0.35 0.43 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisIntermediate Term Fixed Income as of June 30, 2023 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 62 Agenda Item #4.A.10 Aug 2023Page 67 of 93 Manager vs : Return RankEnergy Limited Partnership Universe As of Jun 2023 5th to 25th Percentile 50 Percentile 75 Percentile 95 Percentile Tortoise MLP & Pipeline Instl Alerian MLP 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 0 25 50 75 100Return Rank1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Tortoise MLP & Pipeline Instl 4.26 4.68 16.14 24.63 4.73 4.98 3.77 Alerian MLP 5.38 9.70 30.51 30.70 6.16 3.72 0.90 Calendar Year Return Tortoise MLP & Pipeline Instl Alerian MLP 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 -20 0 20 40 Cumulative Return (%)2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Tortoise MLP & Pipeline Instl 22.13 40.81 (29.51)18.39 (15.14)(1.03)42.12 (35.80)11.66 28.60 Alerian MLP 30.92 40.17 (28.69)6.56 (12.42)(6.52)18.31 (32.59)4.80 27.58 Risk / Return: July 2013 - June 2023 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Standard Deviation (%) 0 1 2 3 4 5 ReturnJuly 2013 - June 2023 RETURN STD DEV BETA ALPHA R-SQUARED SHARPE RATIO Tortoise MLP & Pipeline Instl 3.77 25.32 0.78 2.67 88.90 0.11 Alerian MLP 0.90 30.71 1.00 0.00 100.00 (0.00) Lead Portfolio Manager: (Since: ) 6/2011 12/2013 12/2015 12/2017 12/2019 12/2022 0 50 100 150 200 250 July 2011 - December 2022 RETURN CUMULATIVE RETURN EXCESS RETURN CUMULATIVE EXCESS RETURN Tortoise MLP & Pipeline Instl 6.01 95.66 3.16 57.57 Manager vs Benchmark: Alpha Tortoise MLP & Pipeline Instl YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception -10 0 Alpha07/2018 - 06/2023 07/2017 - 06/2022 07/2016 - 06/2021 07/2015 - 06/2020 07/2014 - 06/2019 07/2013 - 06/2018 07/2012 - 06/2017 07/2011 - 06/2016 Tortoise MLP & Pipeline Instl (0.81)1.49 1.65 0.22 3.20 6.76 5.06 5.11 City of Atlantic Beach General Employees' & Police Officers' Pension Plans - Manager AnalysisTortoise Energy Infrastructure TR Ins as of June 30, 2023 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 63 Agenda Item #4.A.10 Aug 2023Page 68 of 93 Updated Values / Recommendations Page 64 Agenda Item #4.A.10 Aug 2023Page 69 of 93 RecommendedResulting$ Change%JP Morgan - Equity Income$2,656,861 16.39%$300,00018.24%Columbia - Large Cap Growth$683,649 4.22%4.22%Pioneer - Large Cap Growth$1,384,920 8.54%8.54%Vanguard S&P 500 Index ETF$819,469 5.06%5.06%Invesco - S&P 500 Equal Weight ETF$638,593 3.94%3.94%Total Large Cap Equity$6,183,492 38.15% 33.00% 20.00 - 50.00% $300,00040.00%Boston - SMID Value$1,398,435 8.63%($70,000)8.20%Riverbridge- SMID Growth$715,363 4.41%4.41%Total Mid-, Small, or Smid- Cap Equity$2,113,798 13.04% 10.00% 5.00 - 20.00%($70,000) 12.61%Lazard - International Strategic Equity$1,192,481 7.36%($120,000) 6.62%Vanguard Total International Stock ETF$1,189,454 7.34%($170,000) 6.29%Total International Equity$2,381,934 14.70% 15.00% 10.00 - 20.00% ($290,000) 12.91%BlackRock - PPM Short-Term Taxable Fixed Income$1,232,135 7.60%7.60%Sage - Fixed Income$2,664,946 16.44%16.44%Total Fixed Income$3,897,081 24.04% 30.00% 20.00 - 40.00%24.04%Tortoise - MLP & Pipeline$890,096 5.49%5.49%Principal - REIT$567,206 3.50%$60,0003.87%Total Alternative Investments$1,457,302 8.99% 6.00% 1.00 - 15.00%$60,0009.36%CGA Cash$283 0.00%0.00%Deposits & Disbursements$174,149 1.07%1.07%Total Cash & Equivalents$174,432 1.08% 6.00% 0.00 - 11.00%1.08% Total Fund$16,208,039 100.00%$0100.00%Dollar-Weighted Returns The portfolio returns are calculated on a dollar-weighted basis, accounting for deposits and cash flows upon receipt. The dollar-weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar-weighted return is the appropriate measurement to evaluate the fund’s performance in relation to the statement of investment policy and guidelines./ !"#$%$& &’()*+,-.%*& &’Value% of TotalCurrent Policy Target Current Policy RangeThe prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed.Page 65Agenda Item #4.A.10 Aug 2023 Page 70 of 93 RecommendedResulting$ Change%JP Morgan - Equity Income$4,496,622 17.03%18.06%Columbia - Large Cap Growth$1,188,977 4.50%($75,000)4.47%Pioneer - Large Cap Growth$2,221,457 8.41%($75,000)8.62%Vanguard S&P 500 Index ETF$1,395,697 5.29%($125,000)5.10%Invesco - S&P 500 Equal Weight ETF$1,050,872 3.98%4.22%Total Large Cap Equity$10,353,625 39.21% 33.00% 20.00 - 50.00% ($275,000) 40.47%Boston - SMID Value$2,139,648 8.10%($100,000)8.19%Riverbridge- SMID Growth$1,106,392 4.19%4.44%Total Mid-, Small, or Smid- Cap Equity$3,246,040 12.29% 10.00% 5.00 - 20.00%($100,000) 12.63%Lazard - International Strategic Equity$1,707,803 6.47%($65,000)6.60%Vanguard Total International Stock ETF$1,625,316 6.16%($60,000)6.29%Total International Equity$3,333,120 12.62% 15.00% 10.00 - 20.00% ($125,000) 12.88%BlackRock - PPM Short-Term Taxable Fixed Income$1,797,331 6.81%7.22%Sage - Fixed Income$4,353,314 16.49%17.48%Total Fixed Income$6,150,645 23.29% 30.00% 20.00 - 40.00%24.70%Tortoise - MLP & Pipeline$1,462,141 5.54%($100,000)5.47%Principal - REIT$907,270 3.44%$50,0003.84%Total Alternative Investments$2,369,411 8.97% 6.00% 1.00 - 15.00%($50,000)9.31%CGA Cash$240 0.00%0.00%Deposits & Disbursements$951,639 3.60%($950,000)0.01%Total Cash & Equivalents$951,880 3.60% 6.00% 0.00 - 11.00%($950,000)0.01% Total Fund$26,404,720 100.00%($1,500,000)100.00%Dollar-Weighted Returns The portfolio returns are calculated on a dollar-weighted basis, accounting for deposits and cash flows upon receipt. The dollar-weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar-weighted return is the appropriate measurement to evaluate the fund’s performance in relation to the statement of investment policy and guidelines. !"#$%$& &’()*+,-.%*& &’Value% of TotalCurrent Policy Target Current Policy RangeThe prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed.Page 66Agenda Item #4.A.10 Aug 2023 Page 71 of 93 Important Notes About This ReportPAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ACTUAL INDIVIDUAL ACCOUNT RESULTS WILL DIFFER FROM THE PERFORMANCE SHOWN IN THIS REPORT.INVESTMENT DECISIONS: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment disciplines or investment managers/funds based on performance alone. Consider, in addition to performance results,other relevant information about each investment manager or fund, as well as matters such as your investment objectives, risktolerance and investment time horizon.SOURCE OF PERFORMANCE INFORMATION FOR INVESTMENT MANAGERS AVAILABLE IN CONSULTING AND EVALUATION SERVICES OR SELECT UMA: Each investment manager included in this report that participates in one or more of the Consulting and Evaluation Services or Select UMA programs ("Programs") has a track record of investing assets in the relevant investment discipline. The investment manager's gross performance track record shown in this report consists of its gross performance in either the Morgan Stanley or the Smith Barney form of the Select UMA program (if that investment manager was in the Select UMA program) for periods for which sufficient data is available. If the strategy or similar strategies are available in both the Morgan Stanley and Smith Barney forms of the program, this profile presents the composite for the strategy that is closest to the strategy currently offered in the Select UMA program. If both strategies are equally close, the profile shows the longer of the two composites. For other periods, the gross performance track record is provided by the investment manager and consists of accounts managed by the investment manager in the same or a similar investment discipline, whether at Morgan Stanley or elsewhere (and may include institutional accounts, retail accounts and/or pooled investment vehicles such as mutual funds).Morgan Stanley Smith Barney LLC offers investment program services through a variety of investment programs, which are opened pursuant to written client agreements. Each program offers investment managers, funds and features that are not availablein other programs; conversely, some investment managers, funds or investment strategies may be available in more than one program. Morgan Stanley’s investment advisory programs may require a minimum asset level and, depending on a client’s specific investment objectives and financial position, may not be appropriate for the client. Please see the applicable program disclosure document for more information, available at www.morganstanley.com/ADV or from your Financial Advisor. The investment management services of Morgan Stanley Smith Barney LLC and investment vehicles managed by Morgan Stanley Smith Barney LLC or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above-market returns exposes the portfolio to above-average risk. Performance aspirations are not guaranteed and are subject to market conditions. CRC 5082012 11/4/2022Page 67Agenda Item #4.A.10 Aug 2023 Page 72 of 93 Important Notes About This Report (Cont’d)Generally, investment advisory accounts are subject to an annual asset-based fee (the “Fee”) which is payable monthly in advance(some account types may be billed differently). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor.In addition, each account that is invested in a program that is eligible to purchase certain investment products, such as mutualfunds, will also pay a Platform Fee (which is subject to a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program may also pay a separate Sub-Manager fee, if applicable. If your account is invested in mutual funds or exchange traded funds (collectively “funds”), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund’s share price. These fees and expenses are an additional cost to you and would not be included in theFee amount in your account statements. The advisory program you choose is described in the applicable Morgan Stanley Smith Barney LLC ADV Brochure, available at www.morganstanley.com/ADV. Morgan Stanley or Executing Sub-Managers, as applicable, in some of Morgan Stanley’s Separately Managed Account (“SMA”) programs may effect transactions through broker-dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub-Manager fees. Those costs will be includedin the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub-Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub-Managers concerning trade execution away from Morgan Stanley is summarized at: http://www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdfwww.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morganstanley.com/ADV, or contact your Financial Advisor / Private Wealth Advisor.CRC 5082012 11/4/2022Page 68Agenda Item #4.A.10 Aug 2023 Page 73 of 93 Important Notes About This Report (Cont’d)There may be differences between the performance in the different forms of the Select UMA program, in different Programs, andbetween the performance in Programs and performance outside the Programs, due to, among other things, investment and operationaldifferences. For example:• Institutional accounts included in related performance may hold more securities than the Program accounts, participate in initial public offerings (IPOs) and invest directly in foreign securities (rather than in ADRs).• Mutual funds included in related performance may hold more securities than the Program accounts, may participate in IPOs, mayengage in options and futures transactions, and are subject to certain regulatory limitations.• Performance results in Select UMA accounts could differ from that in Consulting and Evaluation Services accounts because Select UMA accounts may hold fewer securities, and have automatic rebalancing, wash sale loss and tax harvesting features.You should read the investment manager profile accompanying this report for each investment manager. The investment manager profile gives further details on the sources of performance information for a particular investment manager, as well as other calculations of the manager's performance returns (such as performance net of fees and expenses). SOURCE OF PERFORMANCE INFORMATION FOR OTHER INVESTMENT MANAGERS: For any investment managers shown in this report that are not available in the Consulting and Evaluation Services or Select UMA programs, 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. The gross performance shown in this report for these managers could differ materially from their gross performance in investment advisory programs offered by firms other than Morgan Stanley. If you have invested with any such manager through another firm, we recommend that you seek information from that firm on the manager’sgross and net performance in its programs.CRC 5082012 11/4/2022Page 69Agenda Item #4.A.10 Aug 2023 Page 74 of 93 Important Notes About This Report (Cont’d)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.BENCHMARK INDICES: Depending on the composition of your account and your investment objectives, the indices shown in this report may not be appropriate measures for comparison purposes and are therefore presented for illustration only. The indicesused in this report may not be the same indices used for comparative purposes in the profile for each investment manager, mutualfund and/or ETF that accompanies this report. Indices are unmanaged. They do not reflect any management, custody, transactionor other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Performance of selected indices may be more or less volatile than that of any investment manager/fund shown in this report. Past performance of indices does not guarantee future results. You cannot invest directly in an index.MANAGERS AND FUNDS APPROVED IN MORGAN STANLEY WEALTH MANAGEMENT PROGRAMS: Morgan Stanley Wealth Management approves certain managers and funds offered in its investment advisory programs:• Morgan Stanley Wealth Management's Global Investment Manager Analysis (“GIMA") team approves managers and funds offered in Consulting and Evaluation Services and Select UMA.• Managers and funds offered in Institutional Consulting Group and Graystone Consulting programs may be approved by GIMA, approved by Morgan Stanley Wealth Management using another process, or not approved by Morgan Stanley Wealth Management.• Morgan Stanley Wealth Management does not approve managers in the Investment Management Services consulting program.CRC 5082012 11/4/2022Page 70Agenda Item #4.A.10 Aug 2023 Page 75 of 93 Important Notes About This Report (Cont’d)If you invest in a manager or fund that is not approved by Morgan Stanley Wealth Management, you are responsible for selecting and/or retaining that manager or fund, and Morgan Stanley Wealth Management does not recommend or monitor that manager or fund. For more information on the approval process in any program, see the applicable ADV brochure, available at www.MorganStanley.com/ADV or from your Financial Advisor or Private Wealth Advisor. If you have any questions about whether or how Morgan Stanley Wealth Management has approved a manager or fund shown in this report, please ask our Financial Advisor or Private Wealth Advisor.SHARE CLASSES OF FUNDS SHOWN IN THIS REPORT: The share class of a fund shown in this report may differ from the share class available in any Morgan Stanley Wealth Management investment advisory program in which you invest. The performance of the share class in which you invest may differ from that of the share class shown in this report.REINVESTMENT: The performance results shown in this report assume that all dividends, accrued income and capital gains were reinvested. SOURCES OF INFORMATION: Although the statements of fact in this report have been obtained from, and are based on, sources that Morgan Stanley believes to be reliable, Morgan Stanley makes no representation as to the accuracy or completeness of theinformation from sources outside Morgan Stanley. Any such information may be incomplete and you should not use it as the sole basis for investment decisions. It is important to consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. A copy of the prospectus may be obtained from your Financial Advisor or Private Wealth Advisor. Please read the prospectus carefully before investing in the fund.CRC 5082012 11/4/2022Page 71Agenda Item #4.A.10 Aug 2023 Page 76 of 93 Important Notes About This Report (Cont’d)KEY ASSET CLASS RISK CONSIDERATIONS: Investing in securities entails risk including the risk of losing principal. There is no assurance that the investment disciplines and investment managers/funds selected will meet their intended objectives.Commodities – Diversified: The commodities markets may fluctuate widely based on a variety of factors including changes in supply and demand relationships; governmental programs and policies; national and international political and economic events; war and terrorist events; changes in interest and exchange rates; trading activities in commodities and related contracts; pestilence; weather; technological change; and the price volatility of a commodity. In addition to commodity risk, commodity-linked notes may be subject to special risks, such as risk of loss of interest and principal, lack of a secondary market and risk of greater volatility that do not affect traditional equity and debt securities.Commodities - Precious Metals: The prices of Commodities - Precious Metals tend to fluctuate widely and in an unpredictable manner, and have historically experienced extended periods of flat or declining prices. The prices of Commodities - Precious Metals are affected by several factors, including global supply and demand, investors' expectations with respect to the rate of inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, andglobal or regional political, economic or financial events and situations.Fixed Income: Fixed income securities are subject to certain inherent risks such as credit risk, reinvestment risk, call risk, and interest rate risk. Fixed income securities are sensitive to changes in prevailing interest rates. When interest rates rise, the value of fixed income securities generally declines. Accordingly, managers or funds that invest in fixed income securities are subjectto interest rate risk and portfolio values can decline in value as interest rates rise and an investor can lose principal.High Yield Fixed Income: As well as being subject to risks relating to fixed income generally (see “Fixed Income”), high yield or "junk" bonds are considered speculative, have significantly higher credit and default risks (including loss of principal), and may be less liquid and more volatile than investment grade bonds. Clients should only invest in high yield strategies if this is consistent with their risk tolerance, and high yield investments should comprise only a limited part of a balanced portfolio. CRC 5082012 11/4/2022Page 72Agenda Item #4.A.10 Aug 2023 Page 77 of 93 International/Emerging Market: International investing (including investing in particular countries or groups of countries) should be considered only one component of a complete and diversified investment program. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as foreign political, currency, economic and market risks. In addition, the securities markets of many emerging markets are substantially smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other more developed countries. Further, a portfolio that focuses on a single country may be subject to higher volatility than one that is more diversified. Preferred Securities: Preferred securities are generally subject to the same risks as apply to fixed income securities. (See “Fixed Income.”) However, preferred securities (especially equity preferred securities) may rank below traditional forms of debt for the purposes of repayment in the event of bankruptcy. Many preferred securities are “callable” meaning that the issuer may retire the securities at specific prices and dates prior to maturity. If a preferred security is called, the investor bears the risk of reinvesting proceeds at a potentially lower return. Investors may not receive regular distributions on preferred securities. For example,dividends on equity preferred securities may only be declarable in the discretion of the issuer's board and may not be cumulative. Similarly, interest payments on certain debt preferred securities may be deferred by the issuer for periods of up to 10 years ormore, in which case the investor would still have income tax liability even though payments would not have been received.Real Estate: Real estate investments are subject to special risks, including interest rate and property value fluctuations as well as risks related to general and local conditions.Small and Mid Cap: Investments in small-to medium-sized corporations are generally more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the broad equity market. Hedged and Alternatives Strategies: In most Consulting Group investment advisory program, alternative investments are limited toUS registered open-end mutual funds, separate account strategies, and 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 suitable for all investors.Important Notes About This Report (Cont’d)CRC 5082012 11/4/2022Page 73Agenda Item #4.A.10 Aug 2023 Page 78 of 93 Managed Futures: Involve a high degree of risk, often involve leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies whose interests (limited partnership or limited liability company units) are generally traded on securities exchanges like shares of common stock. Investment in MLPsentails different risks, including tax risks, than is the case for other types of investments. Currently, most MLPs operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Depending on the ownership vehicle, MLP interests are subject to varying tax treatment.Important Notes About This Report (Cont’d)CRC 5082012 11/4/2022Page 74Agenda Item #4.A.10 Aug 2023 Page 79 of 93 GlossaryALPHA: Synonym of 'value added', linearly similar to the way beta is computed, alpha is the incremental return on a portfolio when the market is stationary. In other words, it is the extra expected return due to non-market factors. This risk-adjusted measurement takes into account both the performance of the market as a whole and the volatility of the portfolio. A positive alpha indicates that a portfolio has produced returns above the expected level at that level of risk, and vice versa for a negative alpha.ANNUALIZED RETURN: The constant rate of return that, compounded annually, would yield the same overall return for a period ofmore than one year as the actual return observed for that period.ANNUALIZED EXCESS RETURN: Excess return represents the difference between the manager’s return and the return of a benchmark for that manager. Annualized excess return is calculated by taking the annualized return of the original series andforming the difference between the two. A positive annualized excess return implies that the manager outperformed the benchmark over the time period shown.BEST AND WORST PERIOD RETURNS: The best period return for a time window is simply the maximum of the returns for that period inside this window. Similarly, the worst period return for a time window is the minimum of the returns for that period inside this window. To calculate the best one-year return for a return series, the program moves a one-year time window along the series and calculates the compound return for each of these windows. The best one-year return is the maximum of the returns thus found.Similarly, the worst one-year return is the minimum of the returns thus found. Therefore, best and worst one-year returns do notrefer to calendar years.BETA: The measure of a portfolio's risk in relation to the market (for example, the S&P 500) or to an alternative benchmark or factors. Roughly speaking, a portfolio with a beta of 1.5 will have moved, on average, 1.5 times the market return. According toasset pricing theory, beta represents the type of risk, systematic risk, which cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the portfolio does not frequently trade; and (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of co movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market.CRC 5082012 11/4/2022Page 75Agenda Item #4.A.10 Aug 2023 Page 80 of 93 CORRELATION: Statistical method to measure how closely related the variances of two series are. Assets that are highly correlated would be expected to react in similar ways to changing market conditions. CUMULATIVE RETURN: The total return on an investment over a specified time period.CUMULATIVE EXCESS RETURN: Excess return represents the difference between the manager’s return and the return of a benchmark for that manager. Cumulative excess return is calculated by taking the cumulative return of the original series andforming the difference between the two. A positive cumulative excess return implies that the manager outperformed the benchmark over the time period shown.DOWNSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio’sbenchmark index had negative returns and then (2) for those quarters, dividing the portfolio’s annualized net performance by thebenchmark index’s performance. For investors, the lower the downside capture ratio, the better. For example, a downside capture ratio of 90% means that the portfolio’s losses were only 90% of the market’s losses (as represented by the benchmark index).DOWNSIDE DEVIATION: Similar to Standard Deviation, but Downside Deviation captures the range of expected returns only on the down side [when the returns fall below the minimum acceptable return (MAR)].DRAWDOWN (MAXIMUM DRAWDOWN): The Maximum loss (compounded, not annualized) that the manager incurred during any sub-period of the time period shown.DRAWDOWN BEGIN DATE: the first date of the sub-period used to calculate the maximum drawdownDRAWDOWN END DATE: The last date of the sub period used to calculate the maximum drawdownDRAWDOWN LENGTH: The number of periods (months or quarters depending on the periodicity of the data) the sub-period used to calculate the maximum drawdownDRAWDOWN RECOVERY DATE: Date at which the compounded returns regain the peak level that was reached before the drawdown beganDRAWDOWN RECOVERY LENGTH: Number of periods it takes to reach the recovery level from maximum drawdown end dateGlossary (Cont’d)CRC 5082012 11/4/2022Page 76Agenda Item #4.A.10 Aug 2023 Page 81 of 93 EXCESS RETURN: The difference between the returns of two portfolios. Usually excess return is the difference between a portfolio's return and the return of a benchmark for that portfolio.GAIN TO LOSS RATIO: Divides the average gain in an up period by the average loss in a down period. A higher Gain to Loss Ratio is more favorable. HIGH WATER MARK: The High Water Mark represents the peak level of the manager’s return, as represented by the peak of the cumulative return series.HIGH WATER MARK DATE: The date which the High Water Mark was reached.UNDER WATER LOSS: Loss incurred between the high water mark date and the end of the period analyzedUNDER WATER LENGTH: Length of the time interval that begins with the high water mark and ends with the analysis periodTO HIGH WATER MARK: The percentage of gain that the manager/fund needs to regain the peak level of the cumulative return seriesINFORMATION RATIO: Measures the active return of the manager divided by the manager's active risk. Active return is the annualized differences of the manager and the benchmark index, while active risk is measured by tracking error. The higher the information ratio, the better. An information ratio of 0 implies that a manager/fund (or benchmark index, if applicable) has provided a return that is equivalent to the risk of the benchmark return.MAR: Stands for “Minimum Acceptable Return.” This represents the lowest return possible that could be considered a successfulresult of the investment. In most cases, the MAR will either be defined as 0 (meaning no negative return) or as the return of a cash benchmark (meaning the investment had a higher return that simply keeping the investment amount in the relatively safe investment of money market funds). Please refer to the specific chart/statistic to see the specific MAR used in the illustration.Glossary (Cont’d)CRC 5082012 11/4/2022Page 77Agenda Item #4.A.10 Aug 2023 Page 82 of 93 MANAGER STYLE (RETURNS BASED STYLE ANALYSIS): A measure for analyzing the style of a portfolio's returns when compared with the quarterly returns on a number of selected style indices (the “Style Basis”). These style indices represent distinct investment styles or asset classes such as large cap value, large cap growth, small cap growth, small cap value, government bonds, or cash equivalents asset classes. Style analysis uses a calculation procedure that finds the combination of selected indices that best tracks (i.e. that has the highest correlation to) a given manager’s return series. This allows the advisor to capture an accurate picture of the investment style of the manager without viewing the underlying holdings. OMEGA: A measure of volatility designed to capture the entire return distribution (useful for investments that do not have normal return distributions), the Omega is tied to a MAR (see above) and shows the ratio of the entire upside performance to the entiredownside, with the MAR representing the dividing line between upside and downside. (e.g. If MAR = 0.00%, any positive return is captured in the upside and any negative return is captured in the downside).PAIN INDEX: Represents the frequency, the depth, and the width of the manager/fund’s drawdowns. The Pain Index captures the information for every period in which the manager/fund is negative. A higher Pain Index indicates that the manager/fund had amore negative result when considering not just the depth (lowest return) but also the frequency of negative returns (frequency) and the amount of time that the return remained negative (width).PAIN RATIO: A risk/return ratio which uses the Pain Index as the measure of risk. The higher the Pain Ratio, the better the risk-adjusted return of the portfolio.ROLLING WINDOW: Indicates that the chart or statistic was evaluated using periodic smaller windows of data on a rolling basis. As an example, a 20 Quarter Rolling Window (Annual Roll) over a 10 year period indicates that 5 year (20 quarter) periods of time were evaluated from the start date, moving forward one year at a time, for the duration of the 10 year period, resulting in 5 “windows”. Evaluating data this way allows us to remove end point bias and determine a measure of consistency in performance.R-SQUARED: Used to show how much of a portfolio's variability can be accounted for by the market. For example, if a portfolio'sR-Squared is 0.79, then 79% of the portfolio's variability is due to market conditions. As R-Squared approaches 100%, the portfolio is more closely correlated with the market. Glossary (Cont’d)CRC 5082012 11/4/2022Page 78Agenda Item #4.A.10 Aug 2023 Page 83 of 93 SHARPE RATIO: Developed by William F. Sharpe, this calculation measures a ratio of return to volatility. It is useful in comparing two portfolios or stocks in terms of risk-adjusted return. The higher the Sharpe Ratio, the better the risk-adjusted return of the portfolio. It is calculated by first subtracting the risk free rate (Citigroup 3-month T-bill) from the return of the portfolio, then dividing by the standard deviation of the portfolio. Using Sharpe ratios to compare and select among investment alternatives can be difficult because the measure of risk (standard deviation) penalizes portfolios for positive upside returns as much as the undesirable downside returns.SINGLE COMPUTATION: For a single computation chart, StyleADVISOR calculates the information over the entire time period shown as a single data point. AS an example, in a chart showing 10 years of performance, a “Single Computation” would represent the statistic shown over the entire 10 year window. STANDARD DEVIATION: A statistical measure of the degree to which the performance of a portfolio varies from its average performance during a specified period. The higher the standard deviation, the greater the volatility of the portfolio’s performance returns relative to its average return. A portfolio’s returns can be expected to fall within plus or minus one standard deviation, relative to its average return, two-thirds of the time, and fall within plus or minus two standard deviations relative to its average return, 95% of the time. For example, if a portfolio had a return of 5% and a standard deviation of 13% then, if future volatility of returns is similar to historical volatility (which may not be the case): About two-thirds of the time, the future returns could be expected to fall between -8% and 18% (being 5% +/- 13%)About 95% of the time, the future returns could be expected to fall between -21% and 31% (being 5% +/- 26%).In performance measurement, it is generally assumed that a larger standard deviation means that great risk was taken to achieve the return. Glossary (Cont’d)CRC 5082012 11/4/2022Page 79Agenda Item #4.A.10 Aug 2023 Page 84 of 93 Glossary (Cont’d)STYLE BASIS: A set of indices that represent the broad asset category being utilized. The Style Basis is used in the equationthat calculates the Manager Style (see definition). The “Manager Style” chart shows the specific benchmarks utilized in the Style Basis. The following Style Bases would be appropriate for the asset classes shown below:–Domestic Equity: Russell Generic Corners; Russell 6 Way Style basis; S&P Pure Style Basis–International Equity: MSCI Regional Style Basis; MSCI World Ex USA Style Basis; MSCI International Equity Style Basis; S&P Regional International Indexes, S&P International 4 Way Style Basis–Global Equity: MSCI World Style Basis; MSCI World Regional Indexes; MSCI Global Equity Style Basis–Fixed income: Citigroup Corporate Bond Indexes; BofA Merrill Lynch Fixed Income Indexes; Citigroup Govt Fixed Income Indexes; Global Bond IndexesSTYLE BENCHMARK: A unique benchmark calculated for each manager/fund based on the Returns Based Style Analysis described above. The “Asset Allocation” chart in Zephyr shows the specific weightings used for the Style Benchmark for each manager or fund.TRACKING ERROR: A measurement that indicates the standard deviation of the difference between a selected market index and a portfolio’s returns. The portfolio's returns are then compared to the index's returns to determine the amount of excessreturn, which produces a tracking error. A low tracking error indicates that the portfolio is tracking the selected index closely or has roughly the same returns as the index.UPSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio’s benchmark index had positive returns and then (2) for those quarters, dividing the portfolio’s annualized net performance by thebenchmark index’s performance. A percentage less than 100% indicates that the portfolio “captured” less performance than the benchmark index, while a percentage greater than 100% indicates the portfolio captured more performance than the benchmark index. For investors, the higher the upside capture ratio, the better. For example, if the annualized performance of anbenchmark index during “up” markets (when its returns were zero or positive) is 20.8% and the portfolio’s annualized performance during the same period is 16.8%, then the portfolio’s upside capture ratio is 16.8%/20.8% = 80.7%, meaning the portfolio “captured” 80.7% of the upside performance of the index. Stated another way, the portfolio in this example performed almost 20% worse than the market during up periods.VARIANCE: A measure of how spread out a distribution is. It is computed as the average squared deviation of each number from its mean. CRC 5082012 11/4/2022Page 80Agenda Item #4.A.10 Aug 2023 Page 85 of 93 Account Name YTD 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Performance Appendix QTD Performance Data below is net of fees. 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. BlackRock - PPM Short-Term Taxable Fixed Income 1.31 1.43 ------0.55 03/24/2022-0.23 Boston - SMID Value 6.41 9.99 19.17 6.00 7.83 8.08 03/12/20103.67 CGA - Cash 775.38 779.37 --------09/01/2019767.64 Columbia Mgmt - Select LC Grwth 25.71 30.68 7.19 10.33 11.88 11.78 03/12/201010.80 Deposit & Disbursement Account 80.00 ----------03/10/20100.00 Invesco - S&P 500 Equal Weight ETF 6.84 13.32 ------1.45 05/18/20213.88 JP Morgan - Equity Income -0.24 7.47 14.17 9.37 10.13 9.71 03/12/20102.13 Lazard - International Strategic Equity 12.00 15.11 7.26 ----4.65 09/01/20193.87 Pioneer - Large Cap Growth 18.79 25.12 13.07 13.85 --13.64 08/19/201610.05 Principal - REIT 5.22 -1.26 ------4.78 11/18/20202.01 Riverbridge - SMID Growth 16.78 16.71 2.40 8.48 9.69 11.48 03/12/20106.42 Sage Advisory - Int. Fixed Income 1.62 0.02 -2.04 1.34 1.44 1.12 04/24/2013-0.66 Tortoise - MLP & Pipeline 4.68 16.13 24.63 ----7.66 09/01/20194.26 Vanguard - S&P 500 Index ETF 16.85 19.93 14.58 ----13.38 09/01/20198.72 Vanguard - Total International Stock ETF 9.88 12.09 7.70 ----5.87 09/01/20192.70 All performance above are Time Weighted(TWR) performance Agenda Item #4.A.10 Aug 2023Page 86 of 93 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. Composites are the aggregate of multiple portfolios within as asset pool. 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. 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 return 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. 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 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 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 Agenda Item #4.A.10 Aug 2023Page 87 of 93 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 return 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. Money Market Funds You could lose money in Money Market Funds. Although MMF's classified as government funds (i.e. MMFs that invest 99.5% of total assets in cash and or securities backed by the US 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. MFFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchase, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. Alternatives 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. 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 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 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 final 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. 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 return 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 Agenda Item #4.A.10 Aug 2023Page 88 of 93 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 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. © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. 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. This information is as of the date(s) noted and subject to daily fluctuation.Agenda Item #4.A.10 Aug 2023Page 89 of 93 Page 90 of 93 City of Atlantic Beach Police Officers' Pension Fund Fund Balance Report as of June 30, 2023 Pooled Equity Morgan Stanley Account Total Beginning Balance 427,225$ 15,346,060$ 15,773,285$ Contribution to/from Investments 8,086 8,086$ Revenue Employer Contributions 370,655$ -$ 370,655$ Employee Contributions 169,484 - 169,484 Chapter 185 - - - Changes in Morgan Stanley Portfolio - 518,508 518,508 Total Revenues 540,139$ 518,508$ 1,058,647$ Expenditures Administrative 59,062$ -$ 59,062$ Retiree Payments 571,645 - 571,645 Total Expenditures 630,708$ -$ 630,708$ Ending Balance 344,742$ 15,864,568$ 17,470,725$ Agenda Item #4.B. 10 Aug 2023 Page 91 of 93 Page 92 of 93 City of Atlantic Beach Police Officers' Pension Fund Expenditures as of June 30, 2023 Account Description FY23 Budget FY23 Expenditure % Total Budget Plan Expenditures: Service Providers Administrative Expense (Actuary & Legal)35,000$ 10,130$ 29% Gabriel, Roeder & Smith ($6,830) Sugarman,Susskind, Braswell & Herrera P.A. ($3,300) Investment Expense 70,000 39,489 56% Subtotal:105,000 49,618 47% Trustee Expenditures: Book, Subscription, Memberships - - 0% Training 7,000 (950) -14% Subtotal:7,000 (950) -14% Other Plan Expenditures: Insurance 3,850 3,356 87% Subtotal:3,850 3,356 87% Pension Office: Office Expenditures: COAB Internal Services: City Manager 595 450 76% Finance Department 5,426 4,068 75% Human Resources 3,365 2,520 75% Printing & Publishing 20 - 0% Subtotal:9,406 7,038 75% Pension Benefits: Service Retired Pay 595,460 446,594 75% Disability Retired Pay 85,000 44,755 53% DROP Payout 40,000 Subtotal:680,460 531,349 78% Pension Refunds:25,000 40,296 161% TOTAL:830,716$ 630,708$ 76% Agenda Item #4.B. 10 Aug 2023 Page 93 of 93