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Police Officers_ Pension Board of Trustees - 09 Nov 2023 - Agenda - PdfCity of Atlantic Beach Agenda Police Officers' Pension Board of Trustees Meeting Thursday, November 9, 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. REPORTS 3.A. Expenditure report for the period ended September 30, 2023. 3 Police Pension Fund Expenditures 3.B. Recap of investment performance for the period ended September 30, 2023. 5 - 93 Atlantic Beach 3Q 2023 4. DISCUSSION WITH PENSION BOARD ATTORNEY 5. OLD BUSINESS 5.A. Requested actuarial cost of living adjustment studies 95 - 115 POPP COLA Studies 6. 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 115 Page 2 of 115 Agenda Item #3.A. 09 Nov 2023 City of Atlantic Beach Police Officers' Pension Fund Expenditures as of September 30, 2023 FY23 % Total Account Description FY23 Budget Expenditure Budget Plan Expenditures: Service Providers Administrative Expense (Actuary & Legal) $ 35,000 $ 15,071 43% Gabriel, Roeder & Smith ($3,250) Sugarman,Susskind, Braswell & Herrera P.A. ($2,127) Investment Expense 70,000 53,844 77% Subtotal: 105,000 68,914 66% Trustee Expenditures: Book, Subscription, Memberships Training Subtotal: Other Plan Expenditures: Insurance Subtotal: 7,000 7,000 3,850 3,850 0% (950) -14% (950) -14% 3,356 87% 3,356 87% Pension Office: Office Expenditures: COAB Internal Services: City Manager 595 595 100% Finance Department 5,426 5,426 100% Human Resources 3,225 3,225 100% Printing & Publishing 20 0% Subtotal: 9,266 9,246 100% Pension Benefits: Service Retired Pay 595,460 595,459 100% Disability Retired Pay 85,000 59,673 70% DROP Payout 40,000 Subtotal: 680,460 695,132 102% Pension Refunds: TOTAL: 25,000 40,296 161% $ 830,576 $ 815,995 98% Page 3 of 115 Page 4 of 115 City of Atlantic Beach General Employees' & Police Officers' Pension Plans Quarterly Performance Report As of September 30, 2023 David Wheeler, LIMA®, CFP®, CRPS® Managing Director - Wealth Management Institutional Consulting Director Alternative Investment Director Corporate Retirement Director David.A.Wheeler@msgraystone.com (813) 227-2178 Graystone Consulting from Morgan Stanley Timothy P. Haugaard, CIMA® Vice President - Wealth Management Institutional Consulting Analyst Timothy.P.Haugaard@msgraystone.com (386) 740-2001 441411411. 411-11 Graystone Consulting from Morgan Stanley Capital Markets Overview Page 3 WEALTH MANAGEMENT Moves Greater Than 1% in S&P 500 Index Since 1981 Greater than a 1% Move Up or Down YTD includes daily data through September o6, 2023 i6o 140 Down Up Long-term average: — 63.3 days 126 134 Morgan Stanley 122 2o2 1°5 I 117 120 95 109 100 92 96 81 79 I 82 76 82 65 64 8o 6o 68 75 72 55 59 6o 54 55 50 48 III I 41 40 128l 1 40 �930 29 27 20 17 13 1111181111 O 1il1111•1 II . 1 ei N M .t 111 V0 1s. CO O1 0 ei N m .t' V1 '0 1\ CO 01 0 ei N M .¢ Ill l0 n co 01 0 ei N M .t V1 l0 n OO al 0 ei N M CO co CO 00 CO CO CO CO CO 01 01 01 01 01 01 Ol al 01 Ol O O O O O O O 0 O O .1 ri ri .1 ,l ei 'i 4 'i 'i N N N 17N C7101 O1 0, O1 O1 O1 M 01 Cl 01 m 01 01 01 01 01 01 010 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1-0 N , 'i , rl 'i 'i ,i 'i ei ri .1 el 'i .i r1 'i ry 'i N N N N N N N N N N N N N N N N N N N N N N N }N D ao Source: Bloomberg, Morgan Stanley Wealth Management GIO 3 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 secGraystone Q financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. ll0 l Pa ALTHMANAGEMENTGLOBALINVESTMENTOFFICE 1 CHARTBOOK 1 HISTORICAL CONTEXT AROUND CORRECTIONS CO11Suntey g Z m from Morgan Stanley C N 0 w N W W . WEALTH MANAGEMENT Seven -Year Holding Period Returns S&P 500 7 -year Annualized Returns, monthly Monthly Data from December 1944 to August 31, 2023 30% 25% 20% 5% o% -5% —Less Than 2% 4.1% of —Between 2-7% 24% of periods Morgan Stanley Greater than 7% 72% of periods irlk\"\\)114' APIN.1% .tl0 00 O N .t t0 CO 0 N .t l0 00 0 N f f f Lf1 LA Lf1 Lf1 111 l0 l0 lO l0 t0 N m m m 01 01 01 01 01 01 01 01 01 01 01 01 ri ri ri ri ri ri ri ri ei ri ei ri ri ri ri .t l0 CO 0 N .t t.0 00 0 N .t ;0 00 0 N. N. N CO 00 00 CO CO 01 01 01 01 0, 0 01 m 01 01 01 01 01 01 01 m 01 01 m 0 ri ri ri ri ri ri ri ei ri ri ri ri ri N .t l0 CO 0 N .t l0 CO 0 N O O 0 0 ri N ri ri ri N N O O 0 0 0 0 O 0 0 0 0 IN N N N N N N N N N a D as all lD Source: Bloomberg and Morgan Stanley Wealth Management GIO m3 co 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 sec Q O financial instrument or to participate in anytrading strategy Please refer to important information, disclosures and qualifications at the end of this material Graystone ll0 0) ~' Consulting3 z '* I-� P8 ALTHMANAGEMENTGLOBALINVESTMENTOFFICEI CHARTBOOK I MONTHLY MARKETS LIBRARY f0 g from Morgan Stamey C N � O w N W W . WEALTH MANAGEMENT Headline CPI Inflation Remains Elevated Headline Consumer Price Index Monthly data as of August 31, 2023 25% 20 15 10 5 Fed raised rates off zero bound June 3.947 (3 months after CPI peak) ,. 0 Gv�n e s -5 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 1 Morgan Stanley Fed's Average Inflation Targeting as of 8/2o = 2.0% Fed raises off zero bound Covid vaccine Nov. US Recession Headline Consumer Price Index (CPI) YoY% Index 3.7% Long -Term Average Fed Target Avg. = 3.8% ami Go dct O Source: Bloomberg, Morgan Stanley Wealth Management Market Research & Strategy tD3 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 se`Q O financial instrument or to participate in anytrading strategy Please refer to important information disclosures and qualifications at the end of this material Graystone ll0 a) �' Consulting3 z '* I� P8 6MALTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 INFLATION g from Morgan Stanley C N � O W N W W . STT JO OT abed WEALTH MANAGEMENT US TreasuryYield Curve USTreasuryYield Curve As of September 04, 2023 6% 5% 4% 3% 2% r o% • �° y'4t',y: fit' 'fit' Morgan Stanley Market High on January 3, 2022 Market Low on October 13, 2022 Rates Bottom on June 3o, 2020 1 Year Ago —Current UST Source: Bloomberg, Morgan Stanley Wealth Management GIO 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 secGraystone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pa ALTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY Consulting -3 sulting3 g from Morgan Stanley STT Jo TT abed WEALTH MANAGEMENT USYieId Curve and Federal Funds Target Rate Daily Data as of August 31, 2023 4 3 2 1 0 -1 -2 -3 Morgan Stanley 5.33% ti°�A1 ti�A� ti°�y ti°�� ti°�h ,>9) ,,c) q y°� cy ti°�tioc ti09) ti0c \ yn0) 'Y? 'YoO" ti°oh ti°o1 tioo� do tioy� do do do do do NBER Recession —US Yield Curve (2 - los) (LHS) Fed Funds Effective Rate (RHS) 25% 20% 15% -0.76 5% o% D ao Source: FactSet, Morgan Stanley Wealth Management 010 3 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 secGraystone Q financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. lk0 l Pa dgALTHMANAGEMENTGLOBALINVESTMENTOFFICEl CHARTBOOK 1 MONTHLY MARKETS LIBRARY CO11Suntey g Z m from Morgan Stanley G 2 C N 0 W Nip W . STT JO ZT abed WEALTH MANAGEMENT Morgan Stanley Conference Board US Leading IndexTen Economic Indicators Conference Board US Leading IndexTen Economic Indicators Monthly data as of August 31, 2023 15% -20% O N .t 1.0 CO 1.0 1.0 1.0 l0 t0 C1 01 01 01 01 ei ei ei ei ei O N .- t0 00 0 N .t 1.0 00 0 N .t 1/40 00 0 00 00 00 00 00 01 01 0, G1 01 O 01 ▪ 01 01 01 m 01 01 01 01 m m 01 m 01 a1 0 ei vi ei ei ei ei el el el el el Tl TI II ei N Recession -7.3% N .t 1.0 CO 0 N .t '.0 00 0 N O 0 0 0 e'l e'l ei el ei N N O 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N 5/10 indicators were down in August Leading Indicator components include: average workweek, production workers, manufacturing, Jobless claims, new orders for manufacturers for consumer goods and materials, ISM index of new orders, New Orders for Manufacturers for Nondefense Capital Goods Excluding Aircraft, Build Permits for New Private Housing, S&P 50o Stock Index, Leading Credit Index, 10 Year Spread Yield Minus the Official Bank Rate, Average Consumer Expectations for Business Conditions. Source: Bloomberg and Morgan Stanley Wealth Management GIO 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 se G raystone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pa ALTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY Coi sulting3 g from Morgan Stanley STT JO £T abed WEALTH MANAGEMENT ISM Manufacturing PMI vs. Corporate Earnings ISM Purchasing Managers Index and New Orders Index vs. S&P 500 Operating Margins and EPS Growth As of August 31, 2023 ISM PMI vs. S&P 500 Operating Margin 17% 16% 15% so% 9% 1 A 8% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 recession — S&P 500 Operating Margin (left axis) — ISM Manufacturing PMI, advanced 3 quarters (right axis) 65 6o 55 a rn 50 45 N 40 35 ISM New Orders vs .S&P 500 EPS y/y % Change 70 0 > 6o 0 5o O 40 v Z In • 30 20 9U9r0 ply 00 oro ON ¢? 041 y0 '1. yw y 1 ry0 ¢� ¢� e� ¢� e� e� ¢� e� e� e� e� e� e� e� e� O O O O O O O O O O O O O O O —New orders—S&P 5oo EPS YoY% Change Morgan Stanley 6o% 40% v c 20% • PMI below 5o = contracting activity • Declining manufacturing activity does not bode well for corporate profitability or for equities • Corporate management teams typically do not cut costs enough to offset revenue declines -40% -6o% 0 Source: Bloomberg, Morgan Stanley Wealth Management GIO 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 secGraystone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pa ®LTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK I MONTHLY MARKETS LIBRARY Consulting -3 sulting3 g from Morgan Stanley STT JO tiT aged WEALTH MANAGEMENT US Employment Data US Unemployment Rate Monthly data as of August 31, 2023 12% 10% 8% 6% 4% 2% 1950 1960 1970 1980 1990 2000 2010 2020 .8% 3.0% Participation Rate Morgan Stan[ey Labor Force Participation Rate and Total Employment Monthly data as of August 31, 2023 —Labor Force Participation Rate (LHS) — Total People Employed (RHS) 69% 67% 65% 63% 6i% 59% 161 170 —US Unemployment Rate (U-3) 57" 1948 — US Short -Term Unemployment Rate (unemployed < 27 weeks) Total Nonfarm Payrolls Month -over -Month Net Change as of August 31, 2023 3,000 average since Dec -99 9,- 2,500 Aug -23 187 2,000 c 1,500 1,000 0.0 1- 500 i 0 -500 -1,000 2000 2003 2006 2009 2012 2015 2018 2021 1957 1966 1975 US Average Hourly Earnings Monthly Data as of August 31, 2023 9% 8% a t 7% e 6% >75% 4% 0 3% w } 2% 1984 1993 2002 2011 2020 1 v 50 People Employed (millions) Aug -23 4.3% 2007 2009 2011 2013 2015 2017 2019 2021 2023 Source: Haver Analytics, Bloomberg, Morgan Stanley Wealth Management GIO 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 securGraystone instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. iConsulting3 Page/EAOrH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 MONTHLY MARKETS LIBRARY from Morgan Stanley STT JO ST abed WEALTH MANAGEMENT Morgan Stanley Longer -Term Perspectives Consumer Confidence and S&P 500 12 -Month Forward Returns Consumer Sentiment Index- University of Michigan As of August 31, 2023 Recession Consumer Sentiment Index average 120 Sentiment cycle high and subsequent 12 -month S&P 500 Index Return 110 x ar1984 -a 3.5% c N • 100 0 0 a, c 'n\` nor 90 °, E N Nov 1980 �y Average: 85.4 o 8o -1o.1% 1r Sep 2001 �+ ' I I\II ��'7%Mar2003 . � 70 4 c 11 Jan 1992 lil 6o i Oct 1990 7'3% j Mar 1982 29.1% E 36.6% Sentiment cycle low and subsequent 50 12 -month S&P 500 Index Return • Consumer sentiment troughs around recessionary times • Consumer sentiment peaks after recessionary times Jan 2000 -2% Jan 2004 4.4% May 1980 19.2% 40 Jan -78 Jan -83 Jan -88 Jan -93 Source: Bloomberg, Morgan Stanley Wealth Management Global Investment Office 32.8% Iraq Oct 2005 Invasion 14.2% Hurricane Katrina • Jan -98 Jan -o3 d 1 Aug 2011 Nov 2008 15.4% 22.2% Soverign Debt Crisis Jan -o8 Jan -13 Mar 2018 7.3% Jan -18 Jun 2022 17.6% Inflation Jan -23 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 ser(raystone financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. This slide sourced from Market Performance Pa g 2LTH MANAGEMENT GLOBAL INVESTMENT OFFICE 1 CHARTBOOK 1 MARKET PERSPECTIVES - YTD THROUGH MAY Consul from Morgan Stamey STT JO 9T abed WEALTH MANAGEMENT Morgan Stanley S&P 50o Earnings Revisions and Forward Estimates FollowingYearS&P 500 Earnings Revisions Breadth (Up Revisions minus Down Revisions)/Total Revisions Data as of September 3o, 2023 50% 30% io% -i0% -30% -50% -70% Jan -98 Jan-oo Jan -oz Jan -o4 Jan -o6 Jan -o8 Jan-io S&P 500 Bottom -Up Forward EPS Estimates (rolling 12 months) Data as of October 02, 2023 260 240 220 200 180 160 140 120 100 Jan -12 Jan -14 Jan -i6 Jan -i8 Jan -2o Jan -22 8o Dec -10 Dec -ii. Dec -12 Dec -13 Dec -14 Dec -15 Dec -16 Dec -17 Dec -18 Dec -19 Dec -2o Dec -21 Dec -22 > (D Source: Bloomberg, FactSet, Morgan Stanley Wealth Management GIO 3 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 se (,raystone Q financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. This slide sourced from Market Performance 5 VD DJ l Pa 8LTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MARKET PERSPECTIVES - YTD THROUGH SEPTEMBER CO11Suntey g Z m from Morgan Stamey C N 0 w N W W . STT JO LT abed WEALTH MANAGEMENT MSCI US Equity Size and Style Performance Morgan Stanley As of September 29, 2023 3023 Performance 2023YTD Performance through September Current Fwd. P/E Vs. io-year Avg. P/E As of September 29, 2023 Value Blend Growth Value Blend Growth Value Blend Growth Large -2.3% -2.8% -3.2% Large -o.4% 15.3% 31.7% Large Mid -4.5% -4.9% -5.6% Mid -1.8% 2.o% 7.7D/0 Avg.: 14.8 Avg.: 28 Avg.: 23.2 Small -3.8% -4.9% -5.9% Small -o.5% 4.o% 8.6% Mid 1.4.1. 25.7 Performance Since Market Peak Performance Since Market Low (Jan. 2022) (Oct. 2022) Value Blend Growth Value Blend Growth Small Large -5.3% -8.o% -12.4% Large 12.7% 23.5% 33.2% Mid -25.4% -16.3% -19.o% Mid 7.1% 11.1% 17.3% Small -11.1% -14.6% -18.9% Small 7.3% io.6% 13.7% 1.3.3 1.6.1. Avg.: 15.3 24.2 Avg.: 18.5 Avg.: 24.8 12.4 17.0 Avg.: 17.2 27.4 Avg.: 21.3 Avg.: 28.6 Expensive: Above +1 Std. Dev. Neutral Cheap: Below -1 Std. Dev. D Source: FactSet, Morgan Stanley Wealth Management GIO. Indices used for this analysis include: MSCI US Large Value, MSCI US Large, MSCI US Large Growth, MSCI US Mid Value, MSCI Mid, MSCI Mid Growth, MSCI Small n) Value, MSCI Small, and MSCI Small Growth. Standard deviation (volatility) is a measure of the dispersion of a set of data from its mean. 3 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 se (,raystone Q financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. This slide sourced from Market Performance 5 l,0 !v Pa 4LTHMANAGEMENTGLOBALINVESTMENTOFFICE1 CHARTBOOK 1 MARKET PERSPECTIVES - YTD THROUGH SEPTEMBER Consulting -3 Z m g from Morgan Stanley C N O W N W W . STT JO 8T abed WEALTH MANAGEMENT Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. Morgan Stanley The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley Wealth Management has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. 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STT JO 6T abed WEALTH MANAGEMENT Morgan Stanley manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors including, but not limited to, manager turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha ranking. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. The proprietary Value Score methodology considers an active investment strategies' value proposition relative to its costs. From a historical quantitative study of several quantitative markers, Value Score measures perceived forward-looking benefit and computes (i) "fair value" expense ratios for most traditional investment managers across 40 categories and (2) managers' perceived "excess value" by comparing the fair value expense ratios to actual expense ratios. 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The whitepaper are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,098 applies to the Adverse Active Alpha system and/or methodology. The Global Investment Manager Analysis (GIMA) Services Only Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some — but not all — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA Status changes even though it may give notice to clients in other programs. 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Conflicts of Interest: GIMA's goal is to provide professional, objective evaluations in support of the Morgan StanleyWealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, our business is subject to various conflicts of interest. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan StanleyWealth CD Management or its affiliates. Such persons may have an ongoing business relationship with certain investment managers or mutual fund companies whereby they, Morgan Stanley Wealth Graystone _o 0 DISCLOSURES Consulting, Z '+ Page 16 from Morgan Stanley 0 O W N W . STT JO OZ abed WEALTH MANAGEMENT Morgan Stanley Management or its affiliates receive compensation from, or otherwise related to, those investment managers or mutual funds. For example, a Financial Advisor may suggest that GIMA evaluates an investment manager or fund in which a portion of his or her clients' assets are already invested. While such a recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management ("EVM") and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of other types of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan StanleyWealth Management, MS&Co., managers and their affiliates 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 affiliates receive compensation and fees in connection with these services. Morgan StanleyWealth 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 StanleyWealth Management, managers, MS & Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. Morgan Stanley charges each fund family we offer 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. ConsiderYour 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 offer 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 different from the asset allocation shown in this profile. 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 definitions referenced in this report please visit the following: httus://www.moraanstanlev.com/wealth-investmentsolutions/wmir-definitions 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.moraanstanlev.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 httus://www.moraanstanlev.com/wealth-investmentsolutions/cacm. Consulting Group is a business of Morgan Stanley. Morgan Stanley Pathway Program Asset Allocation Models There are model portfolios corresponding to five 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 specific to the Pathway program (based on program features and parameters, and any other requirements of Morgan StanleyWealth Management's Consulting Group). The Pathway Program Model Portfolios may therefore differ 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: (i) commodities (e .g., agricultural, energy and metals), currency, precious metals; (2) managed futures; (3) leveraged, inverse or inverse leveraged; (y) 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 offered 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 0g fD 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 Graystone a) DISCLOSURES Consulting, Z FTP Page 17 from Morgan Stanley 0 O W N W . STT JO TZ abed WEALTH MANAGEMENT Morgan Stanley other hand, mutual funds typically must meet daily client redemptions. This differing liquidity profile can have a material impact on the investment returns generated by a mutual fund or ETF pursuing an alternative investing strategy compared with a traditional hedge fund pursuing the same strategy. Nontraditional investment options and strategies are often employed by a portfolio manager to further a fund's investment objective and to help offset market risks. However, these features may be complex, making it more difficult to understand the fund's essential characteristics and risks, and how it will perform in different market environments and over various periods of time. They may also expose the fund to increased volatility and unanticipated risks particularly when used in complex combinations and/or accompanied by the use of borrowing or "leverage." 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.moraanstanlev.com. Please read it carefully before investing. Money Market Funds: You could lose money in money market funds. Although money market funds classified 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 si.00 per share, they cannot guarantee they will do so. The price of other money market funds will fluctuate 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 financial support to the Fund, and you should not expect that the sponsor will provide financial 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 diversified portfolio. Investors may benefit from greater diversification by exchanging a concentrated stock position for fund shares without triggering a taxable event. These funds are available only to qualified investors and may only be offered by Financial Advisors who are qualified 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 - Significant 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 differences in financial and accounting standards. These risks may be magnified 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 financial resources, product diversification and competitive strengths of larger companies. In addition, the securities of small- and mid -capitalization companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and credit risk of the issuer. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. In the case of municipal bonds, income is generally exempt from federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. Treasury Inflation Protection Securities' (TIPS) coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price 0M fD index (CPI). While the real rate of return is guaranteed, TIPS tend to offer a low return. Because the return of TIPS is linked to inflation, TIPS may significantly underperform versus conventional U.S. Graystone a) DISCLOSURES Consulting, z '* Page 18 from Morgan Stanley 0 4t O W N W . STT JO ZZ abed WEALTH MANAGEMENT Morgan Stanley Treasuries in times of low inflation. 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 diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. The companies identified and investment examples are for illustrative purposes only and should not be deemed a recommendation to purchase, hold or sell any securities or investment products. They are intended to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a client's account will be managed as described herein. Options and margin trading involve substantial risk and are not appropriate for all investors. Besides the general investment risk of holding securities that may decline in value and the possible loss of principal invested, closed-end funds may have additional risks related to declining market prices relative to net asset values (NAVs), active manager underperformance and potential leverage. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount from their NAV which may increase investors' risk of loss. The risk of loss due to this discount may be greater for investors expecting to sell their shares in a relatively short period after completion of the public offering. This characteristic is a risk separate and distinct from the risk that a closed-end fund's net asset value may decrease as a result of investment activities. NAV is total assets less total liabilities divided by the number of shares outstanding. At the time an investor purchases or sells shares of a closed-end fund, shares may have a market price that is above or below NAV. Portfolios that invest a large percentage of assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. 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: (i) 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) Conflicts 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 significant differences 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 indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to: Loss of all or a substantial portion of the investment due to leveraging, short -selling, or other speculative practices; Lack of liquidity in that there may be no secondary market for a fund; Volatility of returns; Restrictions on transferring interests in a fund; Potential lack of diversification and 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 differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates 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 differ materially from those reflected or contemplated in such forward-looking statements. Clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. 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 (s) 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. A majority of Alternative Investment managers reviewed and selected by GIMA pay or cause to be paid an ongoing fee for distribution from their management fees to Morgan StanleyWealth Management in connection with Morgan 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 StanleyWealth 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 StanleyWealth Management has a conflict of interest in offering alternative investments because Morgan StanleyWealth Management or our affiliates, CD in most instances, earn more money in your account from your investments in alternative investments than from other investment options. Graystone _ o 13. DISCLOSURES Consulting3 Z '+ Page 19 from Morgan Stanley 0 4t O W N W . STT JO EZ abed WEALTH MANAGEMENT Morgan Stanley It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and offer complete transparency as to membership and construction methodology. As such, some believe that hedge fund index returns have certain biases that are not present in traditional indexes. Some of these biases inflate index performance, while others may skew performance negatively. However, many studies indicate that overall hedge fund index performance has been biased to the upside. Some studies suggest performance has been inflated by up to 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 affect 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 difficult to quantify the effects precisely, investors should be aware that idiosyncratic factors may be giving hedge fund index returns an artificial "lift" or upwards bias. Hedge Funds of Funds and many funds of funds are private investment vehicles restricted to certain qualified private and institutional investors. They are often speculative and include a high degree of risk. Investors can lose all or a substantial amount of their investment. They may be highly illiquid, can engage in leverage and other speculative practices that may increase volatility and the risk of loss, and may be subject to large investment minimums and initial lockups. They involve complex tax structures, tax -inefficient investing and delays in distributing important tax information. Categorically, hedge funds and funds of funds have higher fees and expenses than traditional investments, and such fees and expenses can lower the returns achieved by investors. Funds of funds have an additional layer of fees over and above hedge fund fees that will offset returns. An investment in an exchange -traded fund involves risks similar to those of investing in a broadly based portfolio of equity securities traded on an exchange in the relevant securities market, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock and bond prices. An investment in a target date portfolio is subject to the risks attendant to the underlying funds in which it invests, in these portfolios the funds are the Consulting Group Capital Market funds. A target date portfolio is geared to investors who will retire and/or require income at an approximate year. The portfolio is managed to meet the investor's goals by the pre -established year or "target date." A target date portfolio will transition its invested assets from a more aggressive portfolio to a more conservative portfolio as the target date draws closer. An investment in the target date portfolio is not guaranteed at any time, including, before or after the target date is reached. Managed futures investments are speculative, involve a high degree of risk, use significant leverage, are generally illiquid, have substantial charges, subject investors to conflicts of interest, and are appropriate only for the risk capital portion of an investor's portfolio. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. Managed Futures are complex and not appropriate for all investors. Virtual Currency Products (Crvotocurrencies) 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 significantly below or above the net asset value of the product or fund at the time the investor submitted subscription materials. DISCLOSURES Page 20 Graystone _ Consulting3 from Morgan Stanley STT JO bZ abed WEALTH MANAGEMENT Morgan Stanley - 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 significant 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 significant 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 benefit 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 identified 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 offer, 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 verifiable 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 Graystone _ Consulting, from Morgan Stanley DISCLOSURES Page 21 SIT JO SZ abed WEALTH MANAGEMENT Assets versus the USD has in the past dropped more than 5o% in a single day. Other Digital Assets may be affected by such volatility as well. Morgan Stanley - 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 affiliates (collectively, "Morgan Stanley") may currently, or in the future, offer or invest in Digital Asset products, services or platforms. The proprietary interests of Morgan Stanley may conflict with your interests. - The foregoing list of considerations and risks are not and do not purport to be a complete enumeration or explanation of the risks involved in an investment in any product or fund investing or trading in Digital Assets. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. Past performance is no guarantee of future results. Actual results may vary. Rebalancing does not protect against a loss in declining financial 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 significantly different than those in any index referred to herein . Composite index results are shown for illustrative purposes only, generally do not represent the performance of a specific investment, may not, for a variety of reasons, be an appropriate comparison or benchmark for a particular investment and may not necessarily reflect the actual investment strategy or objective of a particular investment. Consequently, comparing an investment to a particular index may be of limited use. 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 affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, "Morgan Stanley") provide "investment advice" regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account ("Retirement Account"), Morgan Stanley is a "fiduciary" as those terms are defined 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 "fiduciary" under ERISA and/or the Code. For more information regarding Morgan Stanley's role with respect to a Retirement Account, please visit www.moraanstanlev.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. D d4 (D This material is not a financial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fiduciary either under the 3 Graystone Eu DISCLOSURES Consulting, Z '+ Page 22 from MorganStantey G m N O w N W W . STT JO 9Z abed WEALTH MANAGEMENT Morgan Stanley Employee Retirement Income Security Act of 2974 (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.moraanstanlev.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 defined under Section 3(21) of ERISA, to you with respect to certain retirement, welfare benefit, 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 fiduciary under ERISA and/or the Code. Morgan Stanley will only prepare a financial plan at your specific request using Morgan Stanley approved financial 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 financial plans nor constitute a financial planning service. A financial plan generally seeks to address a wide spectrum of a client's long-term financial 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 benefits. Morgan Stanley Smith Barney LLC ("Morgan Stanley") will only prepare a financial plan at a client's specific request using Morgan Stanley approved financial planning software. 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. 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 reflect 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 LifeViewAdvisor), 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 differences between brokerage and advisory relationships, you should consult your Financial Advisor, or review our "Understanding Your Brokerage and Investment Advisory Relationships," brochure available at httos://www.moraanstanlev.com/wealth-relationshiowithms/odfs/understandinavourrelationshio.odf We may act in the capacity of a broker or that of an advisor. 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HYPOTHETICAL MODEL PERFORMANCE (GROSS): Hypothetical model performance results do not reflect the investment or performance of an actual portfolio following a GIC Strategy, but simply reflect actual historical performance of selected indices on a real-time basis over the specified period of time representing the GIC's strategic and tactical allocations as of the date of this report. The past performance shown here is simulated performance based on benchmark indices, not investment results from an actual portfolio or actual trading. There can be large differences between hypothetical and actual performance results achieved by a particular asset allocation or trading strategy. Hypothetical performance results do not represent actual trading and are generally designed with the benefit of hindsight. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client -specific factors (such as investment vehicle selection, timing of contributions and withdrawals, restrictions and rebalancing schedules). Clients would not necessarily have obtained the performance results shown here if they had invested in accordance with any 0M fD 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 Graystone _ o 13. DISCLOSURES Consulting, z FTP,Page 23 from Morgan Stanley 0 4t O W N W . STT JO LZ abed WEALTH MANAGEMENT Morgan Stanley of the risk/return trade-off of different asset allocation constructs. The hypothetical performance results in this report are calculated using the returns of benchmark indices for the asset classes, and not the returns of securities, fund or other investment products. Models may contain allocations to Hedge Funds, Private Equity and Private Real Estate. The benchmark indices for these asset classes are not issued on a daily basis. When calculating model performance on a day for which no benchmark index data is issued, we have assumed straight line growth between the index levels issued before and after that date. FEES 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 reflected in the GIC Asset Allocation Models. The GIC Asset Allocation Models and any model performance included in this presentation are intended as educational materials. Were a client to use these models in connection with investing, any investment decisions made would be subject to transaction and other costs which, when compounded over a period of years, would decrease returns. Information regarding Morgan Stanley's standard advisory fees is available in the Form ADV Part 2, which is available at www.morganstanley.com/adv. The following hypothetical illustrates the compound effect fees have on investment returns: For example, if a portfolio's annual rate of return is 15% for 5 years and the account pays 5o basis points in fees per annum, the gross cumulative five-year return would be 202.2% and the five-year return net of fees would be 96.8%. Fees and/or expenses would apply to clients who invest in investments in an account based on these asset allocations, and would reduce clients' returns. The impact of fees and/or expenses can be material. Variable annuities are long-term investments designed for retirement purposes and may be subject to market fluctuations, investment risk, and possible loss of principal. 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Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, if taken prior to age 591/2, may be subject to a io% federal income tax penalty. Early withdrawals will reduce the death benefit and cash surrender value. Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment. Ultrashort-term fixed income asset class is comprised of fixed income securities with high quality, very short maturities. They are therefore subject to the risks associated with debt securities such as credit and interest rate risk. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Individual MLPs are publicly traded partnerships that have unique risks related to their structure. These include, but are not limited to, their reliance on the capital markets to fund growth, adverse ruling on the current tax treatment of distributions (typically mostly tax deferred), and commodity volume risk. The potential tax benefits from investing in MLPs depend on their being treated as partnerships for federal income tax purposes and, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV, and, as a result, the MLP fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. Physical precious metals are non-regulated products. Precious metals are speculative investments, which may experience short-term and long term price volatility. The value of precious metals investments may fluctuate and may appreciate or decline, depending on market conditions. Unlike bonds and stocks, precious metals do not make interest or dividend payments. Therefore, precious metals may not be appropriate for investors who require current income. Precious metals are commodities that should be safely stored, which may impose additional costs on the investor. REITs investing risks are similar to those associated with direct investments in real estate: property value fluctuations, lack of liquidity, limited diversification and sensitivity to economic factors such as 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; Graystone _ Consulting, from Morgan Stanley DISCLOSURES Page 24 STT JO 8Z abed WEALTH MANAGEMENT Morgan Stanley volatility (risk of loss); and leverage. Principal is returned on a monthly basis over the life of a mortgage-backed security. Principal prepayment can significantly affect the monthly income stream and the maturity of any type of MBS, including standard MBS, CMOs and Lottery Bonds. Asset-backed securities generally decrease in value as a result of interest rate increases, but may benefit less than other fixed-income securities from declining interest rates, principally because of prepayments. Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an investment decision. Credit ratings are subject to change. Duration, the most commonly used measure of bond risk, quantifies the effect of changes in interest rates on the price of a bond or bond portfolio. The longer the duration, the more sensitive the bond or portfolio would be to changes in interest rates. The majority of $25 and $3.000 par preferred securities are "callable" meaning that the issuer may retire the securities at specific prices and dates prior to maturity. Interest/dividend payments on certain preferred issues may be deferred by the issuer for periods of up to 5 to 3.0 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 s3.,000 share, unless otherwise specified. Current yield is calculated by multiplying the coupon by par value divided by the market price. The initial interest rate on a floating-rate security may be lower than that of a fixed-rate security of the same maturity because investors expect to receive additional income due to future increases in the floating security's underlying reference rate. The reference rate could be an index or an interest rate. However, there can be no assurance that the reference rate will increase. Some floating-rate securities may be subject to call risk. The market value of convertible bonds and the underlying common stock(s) will fluctuate and after purchase may be worth more or less than original cost. If sold prior to maturity, investors may receive more or less than their original purchase price or maturity value, depending on market conditions. Callable bonds may be redeemed by the issuer prior to maturity. Additional call features may exist that could affect yield. Some $25 or si000 par preferred securities are QDI (Qualified Dividend Income) eligible. Information on QDI eligibility is obtained from third party sources. The dividend income on QDI eligible preferreds qualifies for a reduced tax rate. Many traditional `dividend paying' perpetual preferred securities (traditional preferreds with no maturity date) are QDI eligible. In order to qualify for the preferential tax treatment all qualifying preferred securities must be held by investors for a minimum period — 93. days during a 28o day window period, beginning go days before the ex -dividend date. Companies paying dividends can reduce or cut payouts at any time. Nondiversification: For a portfolio that holds a concentrated or limited number of securities, a decline in the value of these investments would cause the portfolio's overall value to decline to a greater degree than a less concentrated portfolio. The indices selected by Morgan StanleyWealth Management to measure performance are representative of broad asset classes. Morgan StanleyWealth Management retains the right to change representative indices at any time. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing does not guarantee a profit or eliminate risk. Not all companies whose stocks are considered to be value stocks are able to turn their business around or successfully employ corrective strategies which would result in stock prices that do not rise as initially expected . Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, the investor should consider his financial ability to continue his purchases through periods of low price levels. This material is disseminated in the United States of America by Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of the Municipal Advisor Rule. This material, or any portion thereof, may not be reprinted, sold or redistributed without the written consent of Morgan Stanley Smith Barney LLC. © 2023 Morgan Stanley Smith Barney LLC. MemberSIPC. DISCLOSURES Page 25 Graystone _ Consulting3 from Morgan Stanley Quarter to Date STT JO 6Z abed City of Atlantic Beach General Employees' Pension Capital Markets Returns as of September 30, 2023 U.S. Equity Market % Returns for the Period Ending September 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 Dow Jones Industrial Average Russell 3000 Index Russell 3000 Value Index Russell 3000 Growth Index Russell 1000 Index Russell 1000 Value Index Russell 1000 Growth Index Russell Midcap Index Russell Midcap Value Index Russell Midcap Growth Index Russell 2000 Index Russell 2000 Value Index Russell 2000 Growth Index (3.27) (2.10) (3.25) (3.15) (3.34) (3.15) (3.17) (3.13) (4.68) (4.46) (5.22) (5.13) (2.96) (7.32) 13.07 2.73 12.39 1.66 23.77 13.01 1.79 24.98 3.91 0.54 9.88 2.54 (0.53) 5.24 S&P 500 Sector % Returns for the Period Ending September 30, 2023 Energy Communication Services Financials Health Care Materials Consumer Discretionary Industrials Technology Consumer Staples Real Estate Utilities 12.22 3.07 (1.13) (2.65) (4.76) (4.80) (5.16) (5.64) (5.97) (8.90) (9.25) 21.62 19.18 20.46 14.05 26.64 21.19 14.44 27.72 13.45 11.05 17.47 8.93 7.84 9.59 10.15 8.62 9.38 11.19 7.54 9.53 11.05 7.97 8.09 10.98 2.61 7.16 13.32 1.09 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 26 9.92 7.14 9.14 5.98 11.70 9.63 6.23 12.42 6.38 5.18 6.97 2.40 2.59 1.55 12.24 11.47 11.64 7.79 15.05 12.00 7.91 15.64 8.68 6.83 10.40 6.62 5.94 6.77 11.91 10.79 11.28 8.29 13.94 11.63 8.45 14.48 8.99 7.91 9.95 6.65 6.19 6.72 Graystone Consulting from Morgan Stanley STT JO OE abed City of Atlantic Beach General Employees' Pension Capital Markets Returns as of September 30, 2023 Developed Markets Equity % Returns for the Period Ending September 30, 2023 Quarter to Year to Date Date U.S. Dollar 12 Months 3 5 Quarter to Year to Years Years Date Date Local Currency 12 Months 35 Years Years Regional and Other Multi -Country Indices MSCI EAFE (4.11) 7.08 25.65 5.75 3.24 (1.20) 11.20 20.96 11.36 6.17 MSCI Europe (4.96) 7.96 28.84 7.23 3.96 (2.03) 8.88 20.27 10.88 6.08 MSCI Far East (2.29) 7.68 22.36 2.41 1.68 0.46 19.66 25.32 12.89 6.47 MSCI Pacific ex. Japan (4.75) (4.44) 10.58 4.15 1.78 (2.70) (0.90) 9.70 6.73 3.36 MSCI The World (3.36) 11.55 22.58 8.60 7.80 (2.52) 15.48 24.22 11.25 N/A MSCI World ex. U.S. (4.10) 6.73 24.00 6.07 3.44 (1.26) 10.45 19.81 11.24 6.24 National Indices MSCI Hong Kong MSCI Ireland MSCI Japan MSCI Singapore (11.08) (17.59) (2.58) (4.49) (3.40) (11.13) (17.31) (2.79) (4.17) (3.38) (7.52) 17.49 42.74 2.30 4.45 (4.70) 18.44 32.08 5.85 6.40 (1.45) 11.60 26.40 3.19 2.44 1.75 26.21 30.31 15.82 8.19 N/A N/A N/A N/A N/A 0.47 2.39 6.50 4.04 (1.22) Emerging Markets Equity % Returns for the Period Ending September 30, 2023 U.S. Dollar Local Currency Quarter to Year to 3 5 Quarter to Year to 3 Date Date 12 Months 12 Months Years Years Date Date Years 5 Years Regional and Other Multi -Country Indices MSCI EM National Indices MSCI China MSCI Malaysia MSCI Taiwan MSCI Thailand (2.79) 2.16 12.17 (1.34) 0.93 (1.29) 4.39 11.35 0.98 3.08 (1.83) (7.12) 5.44 (14.14) (4.02) (1.86) (6.08) 5.66 (13.50) (3.75) 4.49 (7.70) 5.25 (3.54) (4.84) 5.11 (1.62) 6.57 0.47 (2.41) (7.10) 11.81 22.65 7.38 11.15 (3.71) 17.43 24.70 11.33 12.39 (4.42) (13.63) 0.29 4.09 (4.73) (4.42) (13.63) 0.29 4.09 (4.73) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 27 Graystone Consulting from Morgan Stanley STT JO TE abed City of Atlantic Beach General Employees' Pension Capital Markets Returns as of September 30, 2023 Fixed Income % Returns for the Period Ending September 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 Bloomberg US Aggregate Barclays Credit Barclays Govt/Credit Barclays Government Barclays High Yield Barclays Intermediate Govt/Credit Barclays Long Govt/Credit Barclays Mortgage Backed Barclays Municipal 1.38 (3.23) (3.01) (2.99) (2.99) 0.46 (0.83) (9.37) (4.05) (3.95) 3.80 (1.21) 0.03 (0.85) (1.45) 5.87 0.66 (5.40) (2.27) (1.38) 4.71 0.64 3.47 0.93 (0.74) 10.28 2.20 (2.93) (0.17) 2.66 1.78 (5.21) (4.83) (5.32) (5.73) 1.75 (2.93) (11.90) (5.09) (2.30) 1.74 0.10 0.86 0.41 (0.03) 2.95 1.02 (1.21) (0.78) 1.05 1.56 (0.09) 0.73 0.09 (0.47) 3.79 0.62 (1.37) (0.64) 0.92 1.12 1.13 2.12 1.31 0.65 4.24 1.27 1.94 0.61 2.29 Global Fixed Income Merrill Lynch Global High Yield 0.07 5.36 12.71 (0.12) 1.84 2.86 3.30 Barclays Global Treasury ex. US (5.41) (3.46) 3.42 (10.29) (4.10) (3.38) (2.17) Barclays Capital Majors ex. U.S. (5.61) (6.12) 0.57 (11.53) (4.90) (4.46) (2.65) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 28 Graystone Consulting from Morgan Stanley STT JOZ£aged Graystone Consulting from Morgan Stanley Page 29 General Employees' Pension Plan Performance Reports STT JO EE abed City of Atlantic Beach General Employees' Pension Total Fund - Executive Summary as of September 30, 2023 Manager Performance Chart 24.0 16.0 E 8.0 0 v a o.o -8.0 -16.0 Manager Risk & Return 10.0 8.0 6.0 Current Fiscal 1 3 5 7 10 Since E 4.0 Quarter YTD Year Years Years Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund -2.25 13.48 13.48 5.82 5.42 6.77 6.88 7.07 03/01/2010 Policy Index -2.78 13.01 13.01 4.48 5.00 6.14 6.08 7.13 Differences 0.53 0.47 0.47 1.34 0.42 0.63 0.80 -0.06 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund Beginning Market Value 25,856 22,331 22,331 21,682 19,878 16,332 13,726 445 Net Contributions -1,500 -1,497 -1,497 -1,647 -1,647 -1,456 -685 11,875 Fees/Expenses -23 -92 -92 -298 -445 -589 -783 -981 Income 131 562 562 1,679 2,668 3,347 4,012 4,950 Gain/Loss -689 2,470 2,470 2,358 3,318 6,139 7,504 7,485 Ending Market Value 23,774 23,774 23,774 23,774 23,774 23,774 23,774 23,774 Modern Portfolio Statistics - 7 Years Total Fund Policy Index Return 6.77 6.14 Standard Deviation 12.08 10.96 Beta 1.09 1.00 03/01/2010 2.0 0.0 -2.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Risk (Standard Deviation %) Total Fund Co Policy Index . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -18.64 110.95 110.88 -18.89 100.00 100.00 Alpha 0.12 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 30 Sharpe Ratio 0.48 0.46 12.0 14.0 16.0 R -Squared 0.98 1.00 Graystone Consulting from Morgan Stanley STT JO VE abed City of Atlantic Beach General Employees' Pension Modern Portfolio Statistics - Since Inception as of September 30, 2023 Total Fund Policy Index Return 7.07 7.13 Standard Deviation 11.06 9.75 Beta 1.10 1.00 Maximum Up Down Drawdown Capture Capture -18.64 107.90 113.05 -18.89 100.00 100.00 Alpha -0.64 0.00 Sharpe Ratio 0.60 0.67 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 31 R -Squared 0.94 1.00 Inception Date 03/01/2010 03/01/2010 Graystone Consulting from Morgan Stanley 1 STT JO SE abed City of Atlantic Beach General Employees' Pension Asset Allocation Compliance As of September 30, 2023 Large Cap Equity $9,410.K (39.6%) 20.0% - 50.0% Mid-, Small, or Smid- Cap Equity $3,012.K (12.7%) 5.0% - 20.0% International Equity $2,987.7K (12.6%) 10.0% - 20.0% Fixed Income $6,113.9K (25.7%) 20.0% - 40.0% Alternative Investments $2,238.4K (9.4%) 1.0% - 15.0% Cash & Equivalents $7.1K (0.0%) 0.0% - 11.0% 1 6% 1 6% 1 130% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n Policy ■ Target , In Policy 1 Outside Policy The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 32 Graystone Consulting from Morgan Stanley STT JO 9E abed City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of September 30, 2023 Allocation Market Value ($) Current Fiscal Quarter YTD YTD Performance(%) 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Total Fund 23,773,681 100.00 -2.25 13.48 5.18 13.48 5.82 5.42 6.77 6.88 7.06 1, I l l Total Fund (net) Policy Index -2.34 13.06 - 2.78 13.01 4.90 13.06 5.98 13.01 5.40 4.48 5.01 5.00 6.36 6.14 6.42 6.08 6.59 6.87 Domestic Equity JP Morgan - Equity Income JP Morgan - Equity Income (net) Russell 1000 Value Columbia Mgmt - Select LC Grwth Columbia Mgmt - Select LC Grwth (net) Russell 1000 Gr Pioneer - Large Cap Growth Pioneer - Large Cap Growth (net) Russell 1000 Gr 4,224,636 17.77 1,035,035 1,994,035 Vanguard - S&P 500 Index ETF Vanguard - S&P 500 Index ETF (net) S&P 500 Total Return 1,186,739 Invesco - S&P 500 Equal Weight ETF Invesco - S&P 500 Equal Weight ETF (net) S&P 500 Equal Wtd S&P 500 Total Return Boston - SMID Value Boston - SMID Value (net) Russell 2500 VL 969,575 1,997,728 Riverbridge - SMID Growth Riverbridge - SMID Growth (net) Russell 2500 GR - 3.07 - 3.18 - 3.17 4.35 -5.14 - 5.25 - 3.13 8.39 -1.04 - 1.14 - 3.13 4.99 -3.22 - 3.22 -3.27 4.08 -4.89 - 4.94 - 4.90 - 3.27 8.40 -0.54 - 0.69 - 3.66 9.67 9.18 14.44 - 3.10 - 3.42 1.79 9.67 9.18 14.44 11.01 10.47 11.05 7.81 7.27 6.23 10.10 9.54 7.91 9.92 9.33 8.45 9.85 9.25 9.62 04/01/2010 28.96 19.50 28.96 0.90 8.14 11.97 10.75 11.70 04/01/2010 28.39 19.11 28.39 0.41 7.61 11.40 10.17 11.10 27.72 24.98 27.72 7.97 12.42 15.64 14.48 14.42 27.49 17.79 27.49 9.13 12.22 14.09 N/A 13.91 09/01/2016 26.97 17.43 26.97 8.63 11.67 13.52 N/A 13.35 27.72 24.98 27.72 7.97 12.42 15.64 N/A 15.50 21.60 13.09 21.60 10.12 N/A N/A N/A 11.61 09/01/2019 21.60 13.09 21.60 10.12 N/A N/A N/A 11.61 21.62 13.07 21.62 10.15 N/A N/A N/A 11.64 13.33 1.70 N/A N/A N/A N/A -1.00 06/01/2021 13.13 1.56 13.13 N/A N/A N/A N/A -1.17 13.64 1.79 13.64 N/A N/A N/A N/A -0.78 21.62 13.07 21.62 N/A N/A N/A N/A 2.45 17.04 6.13 17.04 17.15 6.32 8.30 7.44 8.38 04/01/2010 16.38 5.68 16.38 16.44 5.66 7.63 6.77 7.72 11.34 1.95 11.34 13.32 3.99 6.48 6.95 8.86 1,014,249 4.27 -6.63 9.75 9.35 9.75 -1.69 5.51 10.03 8.35 11.55 04/01/2010 -6.77 9.11 8.88 9.11 -2.30 4.86 9.34 7.66 10.87 -6.84 10.61 5.63 10.61 1.01 4.05 8.78 8.37 10.65 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 33 Graystone Consulting from Morgan Stanley STT JO LE abed City of Atlantic Beach General Employees' Pension Asset Allocation & Time Weighted Performance as of September 30, 2023 Allocation Market Value ($) Current Fiscal Quarter YTD YTD Performance(%) 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date International Equity Lazard - International Strategic Equity Lazard - International Strategic Equity (net) MSCI EAFE Net Vanguard - Total International Stock ETF Vanguard - Total International Stock ETF FTSE Global All Cap x US (Net) 1,526,363 6.42 1,461,364 6.15 - 6.56 - 6.56 - 4.11 19.76 19.76 25.65 4.65 4.65 7.08 19.76 19.76 25.65 2.61 2.61 5.75 N/A N/A N/A N/A N/A 2.64 09/01/2019 N/A N/A 2.64 N/A N/A 5.04 - 4.06 20.55 5.41 20.55 3.92 N/A N/A N/A 4.44 09/01/2019 - 4.06 20.55 5.41 20.55 3.92 N/A N/A N/A 4.44 - 3.35 20.19 5.32 20.19 3.96 N/A N/A N/A 4.42 Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income (net) BC Gov/Cr 1-3 Yr Sage Advisory - Int. Fixed Income Sage Advisory - Int. Fixed Income (net) BB US Intermediate Gov/Cr Alternatives Tortoise - MLP & Pipeline Tortoise - MLP & Pipeline (net) Alerian MLP Index Principal - REIT Principal - REIT (net) MSCI REIT Gross 1,807,973 7.60 0.98 0.91 0.73 4,305,943 18.11 -1.13 - 1.22 -0.83 3.48 3.20 2.78 2.44 2.23 1.87 3.48 3.20 2.78 N/A N/A N/A N/A N/A N/A N/A N/A 1.40 04/01/2022 N/A N/A 1.12 N/A N/A 0.41 2.37 0.66 2.37 -2.26 MM. 1.10 1.67 1.44 05/01/2013 1.99 0.38 1.99 -2.68 1.02 0.64 1.22 1.00 2.20 0.66 2.20 -2.93 1.02 0.62 1.27 1.05 1,360,233 5.72 3.25 18.23 8.08 18.23 31.08 N/A N/A N/A 8.02 09/01/2019 3.25 18.23 8.08 18.23 31.08 N/A N/A N/A 8.02 9.90 32.74 20.55 32.74 43.10 N/A N/A N/A 10.87 878,176 3.69 -6.26 1.41 1.41 N/A N/A N/A = 2.97 12/01/2020 - 6.38 0.87 -1.50 0.87 N/A N/A N/A N/A 2.38 - 7.02 3.18 -1.94 3.18 N/A N/A N/A N/A 3.24 Cash & Equivalents Deposit & Disbursement Account 6,816 0.03 CGA - Cash 305 0.00 4111 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 34 Graystone Consulting from Morgan Stanley STT JO 8E abed City of Atlantic Beach General Employees' Pension Asset Allocation & Net Dollar Weighted Performance (IRR) as of September 30, 2023 Current Quarter Fiscal YTD 1 Year 3 Years 4 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund -2.27 13.20 13.20 5.47 5.51 5.05 6.38 5.87 5.01 03/10/2010 Domestic Equity JP Morgan - Equity Income Columbia Mgmt - Select LC Grwth Pioneer - Large Cap Growth Vanguard - S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Boston - SMID Value Riverbridge - SMID Growth - 3.09 - 3.82 - 0.93 - 2.74 -4.94 -0.47 -6.21 International Equity Lazard - International Strategic Equity Vanguard - Total International Stock ETF Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income Sage Advisory - Int. Fixed Income 9.57 34.35 27.92 23.62 13.12 16.86 10.82 - 6.38 20.97 - 3.99 20.88 0.91 3.20 - 1.27 1.80 18.56 0.48 Alternative Investments Tortoise - MLP & Pipeline Principal - REIT 3.51 -6.55 9.57 34.35 27.92 23.62 13.12 16.86 10.82 20.97 9.38 1.69 8.79 16.15 N/A 16.85 -0.81 2.93 6.82 12.41 12.76 15.70 N/A 10.65 6.44 2.41 6.95 8.16 11.78 N/A N/A 7.92 4.90 N/A 20.88 5.16 4.72 N/A 3.20 N/A N/A N/A 9.11 12.41 13.60 N/A N/A 9.58 11.34 N/A N/A N/A 9.29 11.04 N/A N/A N/A 8.53 10.11 N/A N/A N/A 1.80 -2.71 -0.57 0.94 0.54 1.45 18.56 32.91 6.97 N/A N/A 0.48 N/A N/A N/A N/A The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 35 N/A N/A 8.71 11.73 13.43 0.00 -1.17 8.50 12.06 0.00 0.00 1.12 1.41 89.77 -0.61 03/31/2010 03/31/2010 08/31/2016 09/30/2019 05/31/2021 03/31/2010 03/31/2010 09/30/2019 09/27/2019 03/31/2022 04/30/2013 09/30/2019 11/30/2020 Graystone - Consulting from Morgan Stanley STT JO6£aged Graystone Consulting from Morgan Stanley Page 36 Police Officers' Pension Plan Performance Reports STT JO 017 abed City of Atlantic Beach Police Officers' Pension Total Fund - Executive Summary as of September 30, 2023 Manager Performance Chart 24.0 16.0 E 8.0 o.o -8.0 -16.0 Manager Risk & Return Current Fiscal 1 Quarter YTD Year 3 5 Years Years Manager Annualized Performance Total Fund Policy Index Current Quarter -2.36 12.99 -2.78 13.01 Differences 0.42 -0.02 Historic Asset Growth 7 Years 10 Since Years Inception Fiscal 1 3 5 7 10 Since YTD Year Years Years Years Years Inception Total Fund Beginning Market Value Net Contributions Fees/Expenses Income Gain/Loss Ending Market Value 12.99 13.01 -0.02 Current Fiscal Quarter YTD 5.71 4.48 1.23 5.38 6.66 5.00 6.14 0.38 0.52 6.94 6.08 0.86 6.94 6.87 0.07 Inception Date 04/01/2010 1 3 5 7 10 Since Year Years Years Years Years Inception 15,877 13,756 13,756 12,616 11,363 8,728 7,370 7,314 800 1,000 1,874 1,950 2,825 -14 -55 -55 -177 -261 -333 -431 -533 78 345 345 1,009 1,571 1,954 2,313 2,810 -453 1,441 1,441 1,240 1,815 3,265 4,286 3,073 15,488 15,488 15,488 15,488 15,488 15,488 15,488 15,488 Modern Portfolio Statistics - 7 Years Total Fund Policy Index Return 6.66 6.14 Standard Deviation 11.95 10.96 Beta 1.08 1.00 Inception Date 04/01/2010 Maximum Drawdown -18.56 -18.89 10.0 8.0 6.0 E 4.0 2.0 0.0 -2.0 -4.0 i -2.0 i 0.0 i 2.0 4.0 6.0 8.0 10.0 12.0 Risk (Standard Deviation %) Total Fund • Policy Index . 90 -Day T -Bills Up Capture 109.73 100.00 Down Capture 110.01 100.00 Alpha 0.08 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 37 Sharpe Ratio 0.47 0.46 14.0 R -Squared 0.98 1.00 Graystone Consulting from Morgan Stanley STT JO T17 abed City of Atlantic Beach Police Officers' Pension Modern Portfolio Statistics - Since Inception as of September 30, 2023 Total Fund Policy Index Return 6.94 6.87 Standard Deviation 10.21 9.73 Beta 1.00 1.00 Maximum Up Down Drawdown Capture Capture -18.56 100.64 99.93 -18.89 100.00 100.00 Alpha 0.09 0.00 Sharpe R -Squared Inception Ratio Date 0.63 0.91 04/01/2010 0.65 1.00 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 38 Graystone Consulting from Morgan Stanley STS JO Zti abed City of Atlantic Beach Police Officers' Pension Asset Allocation Compliance As of September 30, 2023 Large Cap Equity $6,119.3K (39.5%) 20.0% - 50.0% Mid-, Small, or Smid- Cap Equity $1,906.4K (12.3%) 5.0% - 20.0% International Equity $1,943.3K (12.5%) 10.0% - 20.0% Fixed Income $3,875.8K (25.0%) 20.0% - 40.0% Alternative Investments $1,464.5K (9.5%) 1.0% - 15.0% Cash & Equivalents $176.K (1.1%) 0.0% - 11.0% 1 6% 6% 1 1001 1 1 130% 33,, O% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n Policy ■ Target , In Policy 1 Outside Policy The prices, quotes, or statistics contained herein have been obtained from sources belived to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 39 Graystone Consulting from Morgan Stanley STT JO Et abed City of Atlantic Beach Police Officers' Pension Asset Allocation & Time Weighted Performance as of September 30, 2023 Allocation Market Value ($) Current Fiscal Quarter YTD YTD Performance(%) 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date Total Fund 0.00 -2.36 12.99 4.77 12.99 .66 6.94 10 Total Fund (net) Policy Index - 2.45 12.59 4.49 12.59 5.30 4.98 6.26 - 2.78 13.01 5.98 13.01 4.48 5.00 6.14 6.49 6.08 6.49 6.87 Domestic Equity JP Morgan - Equity Income JP Morgan - Equity Income (net) Russell 1000 Value 2,785,918 17.99 637,158 4.11 -2.91 9.97 -2.81 9.97 11.09 7.86 10.12 -3.02 9.47 -3.14 9.47 10.55 7.31 9.55 -3.17 14.44 1.79 14.44 11.05 6.23 7.91 9.98 9.40 8.45 9.92 9.32 9.62 04/01/2010 Columbia Mgmt - Select LC Grwth Columbia Mgmt - Select LC Grwth (net) Russell 1000 Gr - 4.81 - 4.92 - 3.13 29.14 28.57 27.72 19.71 19.30 24.98 29.14 1.13 8.19 12.02 28.57 0.64 7.65 11.45 27.72 7.97 12.42 15.64 10.87 11.86 04/01/2010 10.28 11.25 14.48 14.42 Pioneer - Large Cap Growth Pioneer - Large Cap Growth (net) Russell 1000 Gr 1 1,339,650 8.65 767,336 4.95 - 0.87 27.64 17.96 27.64 9.37 12.39 14.19 N/A 14.01 09/01/2016 - 0.98 27.12 17.59 27.12 8.86 11.84 13.62 N/A 13.45 - 3.13 27.72 24.98 27.72 7.97 12.42 15.64 N/A 15.50 Vanguard - S&P 500 Index ETF Vanguard - S&P 500 Index ETF (net) S&P 500 Total Return Invesco - S&P 500 Equal Weight ETF 589,212 3.80 Invesco - S&P 500 Equal Weight ETF (net) S&P 500 Equal Wtd S&P 500 Total Return Boston - SMID Value 1,250,506 8.07 Boston - SMID Value (net) Russell 2500 VL Riverbridge - SMID Growth 655,919 4.23 Riverbridge - SMID Growth (net) Russell 2500 GR -3.21 21.66 13.15 21.66 10.16 N/A N/A N/A 11.64 09/01/2019 -3.21 21.66 13.15 21.66 10.16 N/A N/A N/A 11.64 -3.27 21.62 13.07 21.62 10.15 N/A N/A N/A 11.64 -4.89 13.33 ME 1.70 1 13.33 N/A N/A N/A N/A I -0.99 06/01/2021 -4.94 13.13 1.56 13.13 N/A N/A N/A N/A -1.16 -4.90 13.64 1.79 13.64 N/A N/A N/A N/A -0.78 -3.27 21.62 13.07 21.62 N/A N/A N/A N/A 2.45 - 0.55 16.94 6.08 16.94 17.16 imilimm8.29 1.52 8.43 04/01/2010 - 0.69 16.28 5.63 16.28 16.45 5.68 7.61 6.85 7.76 - 3.66 11.34 1.95 11.34 13.32 3.99 6.48 6.95 8.86 -6.36 10.28 9.92 10.28 -1.51 5.53 10.03 - 6.50 9.64 9.45 9.64 -2.12 4.87 9.34 - 6.84 10.61 5.63 10.61 1.01 4.05 8.78 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 8.45 11.59 04/01/2010 7.77 10.91 8.37 10.65 Graystone Consulting from Morgan Stanley STT JO bti aged City of Atlantic Beach Police Officers' Pension Asset Allocation & Time Weighted Performance as of September 30, 2023 Allocation Market Value ($) Current Fiscal Quarter YTD YTD Performance(%) 1 3 5 7 10 Since Inception Year Years Years Years Years Inception Date International Equity Lazard - International Strategic Equity 994,702 6.42 -6.56 19.76 4.65 19.76 2.62 N/A N/A N/A 2.64 09/01/2019 Lazard - International Strategic Equity (net) -6.56 19.76 4.65 19.76 2.62 N/A N/A N/A 2.64 MSCI EAFE Net -4.11 25.65 7.08 25.65 5.75 N/A N/A N/A 5.04 Vanguard - Total International Stock ETF Vanguard - Total International Stock ETF (net) FTSE Global All Cap x US (Net) Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income (net) BC Gov/Cr 1-3 Yr Sage Advisory - Int. Fixed Income Sage Advisory - Int. Fixed Income (net) BB US Intermediate Gov/Cr 948,588 6.12 -4.06 20.65 5.49 N/A N/A N/A 4.47 09/01/2019 - 4.06 20.65 5.49 20.65 3.96 N/A N/A N/A 4.47 - 3.35 20.19 5.32 20.19 3.96 N/A N/A N/A 4.42 1,239,611 8.00 0.99 0.93 0.73 2,636,201 17.02 -1.12 -1.21 -0.83 3.52 3.24 2.78 2.38 2.00 2.20 2.45 2.25 1.87 0.69 0.41 0.66 3.52 3.24 2.78 2.38 2.00 2.20 N/A N/A N/A -2.25 -2.66 -2.93 N/A N/A N/A 1.45 1.00 1.02 N/A N/A N/A 1.08 0.62 0.62 N/A N/A N/A 1.74 1.29 1.27 1.43 1.16 0.41 04/01/2022 2.62 04/01/2010 2.16 1.90 Alternative Investments Tortoise - MLP & Pipeline Fund Tortoise - MLP & Pipeline Fund (net) Alerian MLP Index Principal - REIT Principal - REIT (net) MSCI REIT Gross 887,876 5.73 3.25 18.23 8.08 18.23 31.08 N/A N/A N/A 8.01 09/01/2019 3.25 18.23 8.08 18.23 31.08 N/A N/A N/A 8.01 9.90 32.74 20.55 32.74 43.10 N/A N/A N/A 10.87 576,593 1.46 -1.07 1.46 N/A N/A N/A W N/A 3.00 12/01/2020 - 6.35 0.92 -1.46 0.92 N/A N/A N/A N/A 2.41 - 7.02 3.18 -1.94 3.18 N/A N/A N/A N/A 3.24 Cash & Equivalents Deposit & Disbursement Account 175,689 1.13 CGA - Cash 342 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 41 Graystone Consulting from Morgan Stanley STT JO St abed City of Atlantic Beach Police Officers' Pension Asset Allocation & Dollar Weighted Performance (IRR) as of September 30, 2023 Current Quarter Fiscal 1 3 4 5 7 10 YTD Year Years Years Years Years Years Since Inception Inception Date Total Fund -2.45 12.59 12.59 5.04 5.12 4.82 6.04 5.58 3.49 03/31/2010 Domestic Equity JP Morgan - Equity Income Columbia Mgmt - Select LC Grwth Pioneer - Large Cap Growth Vanguard - S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Boston - SMID Value Riverbridge - SMID Growth - 3.35 8.99 8.99 9.01 6.58 6.76 8.89 8.69 -4.92 32.51 32.51 -0.08 10.44 7.35 11.36 10.34 -0.98 27.25 27.25 8.95 13.09 12.01 13.72 N/A -3.21 22.54 22.54 13.85 14.23 N/A N/A N/A -4.94 13.11 13.11 N/A N/A N/A N/A N/A -0.56 16.57 16.57 16.22 10.49 8.32 9.33 8.30 - 6.49 10.47 10.47 -1.58 5.60 4.87 10.13 9.33 8.42 11.41 13.57 0.00 -1.28 8.61 11.81 03/31/2010 03/31/2010 08/31/2016 09/30/2019 05/31/2021 03/31/2010 03/31/2010 International Equity Lazard - International Strategic Equity Vanguard - Total International Stock ETF - 6.45 19.66 19.66 3.16 2.53 N/A N/A N/A - 3.76 20.06 20.06 4.43 4.16 N/A N/A N/A 259.02 09/30/2019 0.00 09/27/2019 Fixed Income BlackRock - PPM Short -Term Taxable Fixed Income Sage Advisory - Int. Fixed Income 0.93 3.19 3.19 N/A N/A N/A N/A N/A - 1.21 1.87 1.87 -2.64 -0.60 0.86 0.56 1.50 1.20 03/31/2022 2.05 03/31/2010 Alternative Investments Tortoise - MLP & Pipeline Fund Principal - REIT 3.25 18.23 18.23 32.51 7.01 N/A N/A N/A -6.59 0.26 0.26 N/A N/A N/A N/A N/A The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 42 75.09 09/30/2019 -1.21 11/30/2020 Graystone Consulting from Morgan Stanley STT JO 917 abed City of Atlantic Beach Police Officers' Pension Compliance Checklist as of September 30, 2023 GUIDELINES In Compliance Allocation Large Cap Equity Allocation within specified range Small/Mid Cap Equity Allocation within specified range International Equity Allocation within specified range Fixed Income Allocation within specified range Total Alternatives within specified range Cash & Equivalents Allocation within specified range Prohibited Investments Is the portfolio compliant with the list of prohibited investments? Permitted Investments Is the portfolio compliant with the list of permitted investments? Yes Yes Yes Yes Yes Yes Yes Yes The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, Graystone the4_accuracy cannot be guaranteed. Consulting Page from Morvan Stanley STT JOLtiabed Graystone Consulting from Morgan Stanley Page 44 Manager Performance Analysis STT JO 817 abed City of Atlantic Beach Police Officers' Pension JP Morgan - Equity Income - Executive Summary as of September 30, 2023 Manager Performance Chart 30.0 20.0 E 10.0 0 0.0 -10.0 -20.0 Manager Risk & Return Current Fiscal 1 3 5 7 10 Since 0 Quarter YTD Year Years Years Years Years Inception p4 Manager Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date JP Morgan - Equity Income -2.91 9.97 9.97 11.09 7.86 10.12 9.98 9.92 04/01/2010 Russell 1000 Value -3.17 14.44 14.44 11.05 6.23 7.91 8.45 9.62 Differences 0.26 -4.47 -4.47 0.04 1.63 2.21 1.53 0.30 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date JP Morgan - Equity Income Beginning Market Value 2,577 2,520 2,520 1,719 1,372 1,154 1,292 708 Net Contributions 300 45 45 475 740 593 178 573 Fees/Expenses -3 -12 -12 -38 -54 -68 -90 -105 Income 18 79 79 200 285 360 433 482 Gain/Loss -107 154 154 429 442 746 972 1,128 Ending Market Value 2,786 2,786 2,786 2,786 2,786 2,786 2,786 2,786 Modern Portfolio Statistics Return Standard Deviation JP Morgan - Equity Income 9.92 14.78 Russell 1000 Value 9.63 15.02 Beta 0.95 1.00 04/01/2010 14.0 12.0 10.0 - 8.0 - 6.0 - 4.0 2.0 - 0.0 - -4.0 -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 %) • JP Morgan - Equity Income 0 Russell 1000 Value . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -24.17 98.13 95.42 -26.73 100.00 100.00 Alpha 0.71 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 45 Sharpe R -Squared Inception Ratio Date 0.66 0.94 04/01/2010 0.63 1.00 04/01/2010 Graystone Consulting from Morgan Stanley STT JO 617 abed City of Atlantic Beach Police Officers' Pension Columbia Mgmt - Select LC Grwth - Executive Summary as of September 30, 2023 Manager Performance Chart 45.0 30.0 E 15.0 2 o.o -15.0 -30.0 Manager Risk & Return 21.0 18.0 - 15.0 12.0 9.0 - Current Fiscal 1 3 5 7 10 Since 7 Quarter YTD Year Years Years Years Years Inception a 6.0 - Manager Annualized Performance 3.0 - Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Columbia Mgmt - Select LC Grwth -4.81 29.14 29.14 1.13 8.19 12.02 10.87 11.86 04/01/2010 Russell 1000 Gr -3.13 27.72 27.72 7.97 12.42 15.64 14.48 14.42 Differences -1.68 1.42 1.42 -6.84 -4.23 -3.62 -3.61 -2.56 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Columbia Mgmt - Select LC Grwth Beginning Market Value 670 721 721 889 627 508 1,372 710 Net Contributions - -275 -275 -250 -250 -342 -1,601 -1,279 Fees/Expenses -1 -3 -3 -13 -20 -26 -54 -69 Income 1 3 3 10 15 20 35 55 Gain/Loss -33 191 191 2 265 476 886 1,220 Ending Market Value 637 637 637 637 637 637 637 637 Modern Portfolio Statistics 04/01/2010 0.0 - - 3.0 - - 6.0 0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) • Columbia Mgmt - Select LC Grwth 0 Russell 1000 Gr . 90 -Day T -Bills Return Standard Beta Maximum Up Down Deviation Drawdown Capture Capture Columbia Mgmt - Select LC Grwth 11.86 18.84 1.09 -39.88 101.63 115.01 Russell 1000 Gr 14.43 16.10 1.00 -30.66 100.00 100.00 Alpha -3.15 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 46 Sharpe R -Squared Inception Ratio Date 0.65 0.87 04/01/2010 0.87 1.00 04/01/2010 Graystone Consulting from Morgan Stanley STT JO OS abed City of Atlantic Beach Police Officers' Pension Pioneer - Large Cap Growth - Executive Summary as of September 30, 2023 Manager Performance Chart 45.0 30.0 E 15.0 2 o.o -15.0 -30.0 Manager Risk & Return 24.0 20.0 - 16.0 - 12.0 Current Fiscal 1 3 5 7 Since 7 8.0 Quarter YTD Year Years Years Years Inception a 4.0 Manager Annualized Performance Current Fiscal 1 3 5 7 Since Inception Quarter YTD Year Years Years Years Inception Date Pioneer- Large Cap Growth -0.87 27.64 27.64 9.37 12.39 14.19 14.01 09/01/2016 Russell 1000 Gr -3.13 27.72 27.72 7.97 12.42 15.64 15.50 Differences 2.26 -0.08 -0.08 1.40 -0.03 -1.45 -1.49 Historic Asset Growth Current Fiscal 1 3 5 7 Since Inception Quarter YTD Year Years Years Years Inception Date Pioneer - Large Cap Growth 09/01/2016 Beginning Market Value 1,353 1,071 1,071 1,118 825 508 508 Net Contributions - -20 -20 -85 -85 7 7 Fees/Expenses -1 -5 -5 -17 -27 -34 -34 Income 3 11 11 32 52 71 71 Gain/Loss -15 282 282 292 574 787 787 Ending Market Value 1,340 1,340 1,340 1,340 1,340 1,340 1,340 Modern Portfolio Statistics Return Standard Deviation Pioneer - Large Cap Growth 14.01 16.17 Russell 1000 Gr 15.50 18.30 Beta 0.86 1.00 0.0 - - 4.0 - - 8.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) Pioneer - Large Cap Growth 0 Russell 1000 Gr . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -25.46 86.63 84.02 -30.66 100.00 100.00 Alpha 0.56 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 47 20.0 24.0 28.0 Sharpe R -Squared Inception Ratio Date 0.80 0.95 09/01/2016 0.80 1.00 09/01/2016 Graystone Consulting from Morgan Stanley STT JO TS abed City of Atlantic Beach Police Officers' Pension Vanguard - S&P 500 Index ETF - Executive Summary as of September 30, 2023 Manager Performance Chart 45.0 E 30.0 15.0 0.0 -15.0 Manager Risk & Return 18.0 15.0 12.0 9.0 Current Fiscal 1 3 Since 7 Quarter YTD Year Years Inception a 6.0 Manager Annualized Performance 3.0 Current Fiscal 1 3 Since Inception Quarter YTD Year Yeats Inception Date Vanguard - S&P 500 Index ETF -3.21 21.66 21.66 10.16 11.64 09/01/2019 0.0 - S&P 500 Total Return -3.27 21.62 21.62 10.15 11.64 Differences 0.06 0.04 0.04 0.01 0.00 Historic Asset Growth -3.0 Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Vanguard - S&P 500 Index ETF Beginning Market Value 793 729 729 1,041 Net Contributions - -116 -116 -585 -603 Fees/Expenses - - - - - Income - - - - - Gain/Loss -25 154 154 312 1,371 Ending Market Value 767 767 767 767 767 Modern Portfolio Statistics 09/01/2019 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) Vanguard - S&P 500 Index ETF 0 S&P 500 Total Return . 90 -Day T -Bills Return Standard Beta Maximum Up Down Deviation Drawdown Capture Capture Vanguard - S&P 500 Index ETF 11.64 18.95 1.01 -23.92 100.64 100.91 S&P 500 Total Return 11.64 18.81 1.00 -23.87 100.00 100.00 Alpha -0.07 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 48 20.0 24.0 28.0 Sharpe R -Squared Inception Ratio Date 0.59 1.00 09/01/2019 0.60 1.00 09/01/2019 Graystone Consulting from Morgan Stanley STT JO ZS abed City of Atlantic Beach Police Officers' Pension Invesco - S&P 500 Equal Weight ETF - Executive Summary as of September 30, 2023 Manager Performance Chart 30.0 20.0 E 10.0 0.0 ■ ■ Manager Risk & Return 4.0 3.2 - 2.4 - -10.0 1.6 - F Current Fiscal 1 Since 0.8 Quarter YTD Year Inception a Manager Annualized Performance -20.0 Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Invesco - S&P 500 Equal Weight ETF -4.89 13.33 13.33 -0.99 06/01/2021 S&P 500 Equal Wtd -4.90 13.64 13.64 -0.78 Differences 0.01 -0.31 -0.31 -0.21 Historic Asset Growth Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Invesco - S&P 500 Equal Weight ETF Beginning Market Value 620 520 520 580 Net Contributions - 1 1 27 Fees/Expenses - -1 -1 -2 Income 3 10 10 24 Gain/Loss -33 59 59 -40 Ending Market Value 589 589 589 589 Modern Portfolio Statistics Invesco - S&P 500 Equal Weight ETF S&P 500 Equal Wtd Return - 0.99 - 0.78 Standard Deviation 18.20 18.23 06/01/2021 Beta 1.00 1.00 0.0 - - 0.8 - - 1.6 -2.4 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) Invesco - S&P 500 Equal Weight ETF . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture - 20.69 99.61 100.43 - 20.68 100.00 100.00 Alpha -0.22 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 49 0 S&P 500 Equal Wtd 20.0 24.0 28.0 Sharpe R -Squared Inception Ratio Date - 0.09 1.00 06/01/2021 - 0.08 1.00 06/01/2021 Graystone Consulting from Morgan Stanley STT JO ES abed City of Atlantic Beach Police Officers' Pension Boston - SMID Value - Executive Summary as of September 30, 2023 Manager Performance Chart 30.0 20.0 E 10.0 0 0.0 -10.0 -20.0 Manager Risk & Return 0 Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Boston - SMID Value -0.55 16.94 16.94 17.16 6.34 8.29 7.52 8.43 04/01/2010 Russell 2500 VL -3.66 11.34 11.34 13.32 3.99 6.48 6.95 8.86 Differences 3.11 5.60 5.60 3.84 2.35 1.81 0.57 -0.43 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Boston - SMID Value Beginning Market Value 1,328 1,134 1,134 813 581 487 603 480 Net Contributions -70 -70 -70 -30 278 244 44 12 Fees/Expenses -2 -7 -7 -23 -30 -38 -47 -57 Income 5 25 25 65 90 108 120 137 Gain/Loss -11 169 169 425 332 449 531 678 Ending Market Value 1,251 1,251 1,251 1,251 1,251 1,251 1,251 1,251 Modern Portfolio Statistics Return Standard Deviation Boston - SMID Value 8.43 20.27 Russell 2500 VL 8.86 18.50 Beta 1.07 1.00 04/01/2010 12.0 10.0 - 8.0 - 6.0 - 4.0 2.0 - 0.0 - -2.0 - -4.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Risk (Standard Deviation %) Boston - SMID Value 0 Russell 2500 VL . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -38.76 103.05 104.88 -34.64 100.00 100.00 Alpha -0.72 0.00 28.0 32.0 Sharpe R -Squared Inception Ratio Date 0.46 0.95 04/01/2010 0.51 1.00 04/01/2010 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 50 Graystone Consulting from Morgan Stanley STT JO VS abed City of Atlantic Beach Police Officers' Pension Riverbridge - SMID Growth - Executive Summary as of September 30, 2023 Manager Performance Chart 20.0 Manager Risk & Return 18.0 10.0 15.0 E 0.0 1 12.0 a - 10.0 9.0 - 20.0 Current Fiscal 1 3 5 7 10 Since 7 6.0 Quarter YTD Year Years Years Years Years Inception 1:4 Manager Annualized Performance 3.0 Current Fiscal 1 3 5 7 10 Since Inception 0.0 - Quarter YTD Year Years Years Years Years Inception Date Riverbridge - SMID Growth -6.36 10.28 10.28 -1.51 5.53 10.03 8.45 11.59 04/01/2010 Russell 2500 GR -6.84 10.61 10.61 1.01 4.05 8.78 8.37 10.65 Differences 0.48 -0.33 -0.33 -2.52 1.48 1.25 0.08 0.94 Historic Asset Growth -6.0 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Rmerbndge - SMID Growth Beginning Market Value 701 656 656 856 706 485 616 231 Net Contributions - -65 -65 -165 -204 -210 -462 -246 Fees/Expenses -1 -4 -4 -15 -23 -30 -40 -46 Income 1 4 4 11 17 23 31 37 Gain/Loss -46 65 65 -31 159 388 512 680 Ending Market Value 656 656 656 656 656 656 656 656 Modern Portfolio Statistics Return Standard Deviation Riverbridge - SMID Growth 11.59 17.42 Russell 2500 GR 10.65 18.84 Beta 0.86 1.00 04/01/2010 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) Riverbridge - SMID Growth 0 Russell 2500 GR . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -35.28 92.14 84.27 -32.84 100.00 100.00 Alpha 2.22 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 51 20.0 24.0 28.0 Sharpe R -Squared Inception Ratio Date 0.67 0.87 04/01/2010 0.59 1.00 04/01/2010 Graystone Consulting from Morgan Stanley STT JO SS abed City of Atlantic Beach Police Officers' Pension Lazard - International Strategic Equity - Executive Summary as of September 30, 2023 Manager Performance Chart 45.0 0 30.0 15.0 o.o Manager Risk & Return 6.4 5.6 4.8 -15.0 4.0 F Current Fiscal 1 3 Since E 3.2 Quarter YTD Year Years Inception 1:4 Manager Annualized Performance -30.0 Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Lazard - International Strategic Equity -6.56 19.76 19.76 2.62 2.64 09/01/2019 MSCI EAFE Net -4.11 25.65 25.65 5.75 5.04 Differences -2.45 -5.89 -5.89 -3.13 -2.40 Historic Asset Growth Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Lazard - International Strategic Equity 09/01/2019 Beginning Market Value 1,187 860 860 984 Net Contributions -120 -39 -39 -81 -56 Fees/Expenses - - - Income - Gain/Loss -72 174 174 92 1,051 Ending Market Value 995 995 995 995 995 Modern Portfolio Statistics 2.4 1.6 - 0.8 0.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) • Lazard - International Strategic Equity Q MSCI EAFE Net . 90 -Day T -Bills Return Standard Beta Maximum Up Down Deviation Drawdown Capture Capture Lazard - International Strategic Equity 2.64 18.98 1.00 -30.68 95.38 103.87 MSCI EAFE Net 5.05 18.37 1.00 -27.30 100.00 100.00 Alpha -2.20 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 52 Sharpe R -Squared Inception Ratio Date 0.15 0.94 09/01/2019 0.27 1.00 09/01/2019 Graystone Consulting from Morgan Stanley STT JO 9S abed City of Atlantic Beach Police Officers' Pension Vanguard - Total International Stock ETF - Executive Summary as of September 30, 2023 Manager Performance Chart E Manager Risk & Return 45.0 5.6 30.0 15.0 0.0 - -15.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception 4.8 - 4.0 - 3.2 - a 2.4 Manager Annualized Performance 1.6 Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Vanguard - Total International Stock ETF -4.06 20.65 20.65 3.96 4.47 09/01/2019 FTSE Global All Cap x US (Net) -3.35 20.19 20.19 3.96 4.42 Differences -0.71 0.46 0.46 0.00 0.05 Historic Asset Growth Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Vanguard - Total International Stock ETF Beginning Market Value 1,159 774 774 856 Net Contributions -170 9 9 -23 -24 Fees/Expenses - - - - - Income - - - - - Gain/Loss -40 165 165 115 973 Ending Market Value 949 949 949 949 949 Modern Portfolio Statistics Vanguard - Total International Stock ETF FTSE Global All Cap x US (Net) Return Standard Deviation 4.47 18.46 4.42 18.04 09/01/2019 Beta 1.01 1.00 0.8 0.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) • Vanguard - Total International Stock ETF Q FTSE Global All Cap x US (Net) . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -27.74 103.32 103.65 -27.66 100.00 100.00 Alpha 0.04 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 53 Sharpe R -Squared Inception Ratio Date 0.24 0.98 09/01/2019 0.24 1.00 09/01/2019 Graystone Consulting from Morgan Stanley STT JO LS abed City of Atlantic Beach Police Officers' Pension BlackRock - PPM Short -Term Taxable Fixed Income - Executive Summary as of September 30, 2023 Manager Performance Chart Manager Risk & Return 6.0 4.8 4.0 - 4.0 3.2 - a 2.0 2.4 - 0.0 Current Fiscal 1 Since 4 1.6 - Quarter YTD Year Inception Manager Annualized Performance 0.8 - Current Fiscal 1 Since Inception Quarter YTD Year Inception Date BlackRock - PPM Short -Term Taxable Fixed Income 0.99 3.52 3.52 1.43 04/01/2022 BC Gov/Cr 1-3 Yr 0.73 2.78 2.78 0.41 Differences 0.26 0.74 0.74 1.02 Historic Asset Growth Current Fiscal 1 Since Inception Quarter YTD Year Inception Date BlackRock - PPM Short -Term Taxable Fixed Income Beginning Market Value 1,228 1,085 1,085 1,060 Net Contributions - 119 119 159 Fees/Expenses -1 -3 -3 -4 Income 9 29 29 36 Gain/Loss 3 10 10 -11 Ending Market Value 1,240 1,240 1,240 1,240 Modern Portfolio Statistics 04/01/2022 0.0 - -0.8 i -0.3 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 2.4 2.7 3.0 3.3 Risk (Standard Deviation %) ▪ BlackRock - PPM Short -Term Taxable Fixed Income • BC Gov/Cr 1-3 Yr . 90 -Day T -Bills Return Standard Beta Maximum Up Down Alpha Sharpe R -Squared Inception Deviation Drawdown Capture Capture Ratio Date BlackRock - PPM Short -Term Taxable Fixed Income 1.43 1.89 0.79 -1.35 94.28 62.62 1.10 -1.14 0.97 04/01/2022 BC Gov/Cr 1-3 Yr 0.41 2.34 1.00 -2.29 100.00 100.00 0.00 -1.35 1.00 04/01/2022 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 Graystone Consulting from Morgan Stanley STT JO 8S abed City of Atlantic Beach Police Officers' Pension Sage Advisory - Int. Fixed Income - Executive Summary as of September 30, 2023 Manager Performance Chart Manager Risk & Return 9.0 3.5 6.0 E 3.0 v a 0.0 -3.0 -6.0 • 3.0 - 2.5 - 2.0 - Current Fiscal 1 3 5 7 10 Since 7 Quarter YTD Year Years Years Years Years Inception p4 1.5 Manager Annualized Performance Current Fiscal 1 35 7 10 SinceInception Quarter YTD Year Years Years Years Years Inception Date Sage Advisory - Int. Fixed Income -1.12 138 2.38 -2.25 1.45 1.08 1.74 2.62 04/01/2010 BB US Agg Credit - Intermediate TR -0.92 3.82 3.82 -2.56 1.49 120 1.97 2.76 Differences -0.20 -1.44 -1.44 0.31 -0.04 -0.12 -0.23 -0.14 Historic Asset Growth Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Sage Advisory - Inc Fixed Income Beginning Market Value 2,668 2,389 2,389 2,529 1,855 1,971 2,916 1,459 Net Contributions - 200 200 310 682 579 -579 626 Fees/Expenses -3 -10 -10 -32 -54 -72 -99 -137 Income 15 65 65 176 296 397 593 822 Gain/Loss -45 -9 -9 -346 -144 -238 -194 -134 Ending Market Value 2,636 2,636 2,636 2,636 2,636 2,636 2,636 2,636 Modern Portfolio Statistics Return Standard Deviation Sage Advisory - Int. Fixed Income 2.62 3.26 BB US Agg Credit - Intermediate TR 2.76 3.74 04/01/2010 Beta 0.80 1.00 1.0 0.5 0.0 -1.2 -0.6 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 Risk (Standard Deviation %) Sage Advisory - Int. Fixed Income 0 BB US Agg Credit - Intermediate TR . 90 -Day T -Bills Maximum Up Down Drawdown Capture Capture -10.74 87.58 82.14 -12.79 100.00 100.00 Alpha 0.41 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 55 Sharpe R -Squared Inception Ratio Date 0.55 0.84 04/01/2010 0.52 1.00 04/01/2010 Graystone Consulting from Morgan Stanley STT JO 6S abed City of Atlantic Beach Police Officers' Pension Tortoise - MLP & Pipeline Fund - Executive Summary as of September 30, 2023 Manager Performance Chart 60.0 45.0 E B 30.0 15.0 0.0 Manager Risk & Return 15.0 12.0 9.0 F Current Fiscal 1 3 Since 7 6.0 Quarter YTD Year Years Inception a Manager Annualized Performance 3.0 Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Tortoise - MLP & Pipeline Fund 3.25 18.23 18.23 31.08 8.01 09/01/2019 Alerian MLP Index 9.90 32.74 32.74 43.10 10.87 Differences -6.65 -14.51 -14.51 -12.02 -2.86 Historic Asset Growth Current Fiscal 1 3 Since Inception Quarter YTD Year Years Inception Date Tortoise - MLP & Pipeline Fund Beginning Market Value 860 751 751 440 Net Contributions - - - -75 75 Fees/Expenses - - - - - Income - - - - - Gain/Loss 28 137 137 523 813 Ending Market Value 888 888 888 888 888 Modern Portfolio Statistics 09/01/2019 0.0 - -3.0 -20.0 -10.0 0.0 10.0 20.0 30.0 Risk (Standard Deviation %) • Tortoise - MLP & Pipeline Fund • Alerian MLP Index . 90 -Day T -Bills Return Standard Beta Maximum Up Down Deviation Drawdown Capture Capture Tortoise - MLP & Pipeline Fund 8.01 32.62 0.75 -49.35 80.67 87.03 Alerian MLP Index 10.87 42.18 1.00 -58.93 100.00 100.00 Alpha -1.10 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 56 40.0 50.0 60.0 Sharpe R -Squared Inception Ratio Date 0.37 0.93 09/01/2019 0.43 1.00 09/01/2019 Graystone Consulting from Morgan Stanley STT JO 09 abed City of Atlantic Beach Police Officers' Pension Principal - REIT - Executive Summary as of September 30, 2023 Manager Performance Chart 10.0 E a 5.0 0.0 -5.0 -10.0 -15.0 Current Fiscal 1 Since Quarter YTD Year Inception Manager Annualized Performance Current Fiscal 1 Since Inception Quarter YTD Year Inception Date Principal - REIT -6.22 1.46 1.46 3.00 12/01/2020 MSCI REIT Gross -7.02 3.18 3.18 3.24 Differences 0.80 -1.72 -1.72 -0.24 Historic Asset Growth Manager Risk & Return 3.9 3.6 - 3.3 - 3.0 - 2.7 - E a 2.4 2.1 1.8 1.5 Current Fiscal 1 Since Inception 1.2 Quarter YTD Year Inception Date -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Principal - REIT 12/01/2020 Risk (Standard Deviation %) Beginning Market Value 555 515 515 263 Net Contributions 60 60 60 330 • Principal - REIT 0 MSCI REIT Gross . 90 -Day T -Bills Fees/Expenses -1 -3 -3 -8 Income 6 21 21 49 Gain/Loss -43 -17 -17 -57 Ending Market Value 577 577 577 577 Modern Portfolio Statistics Principal - REIT MSCI REIT Gross Return 3.00 3.24 Standard Deviation 18.77 19.78 Beta 0.94 1.00 Maximum Up Down Drawdown Capture Capture - 26.09 94.63 95.21 - 28.26 100.00 100.00 Alpha -0.14 0.00 Sharpe R -Squared Inception Ratio Date 0.15 0.99 12/01/2020 0.17 1.00 12/01/2020 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 57 Graystone Consulting from Morgan Stanley STT JO T9 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans JPM US Equity Income - Manager Analysis as of September 30, 2023 Manager vs PSN Large Cap Value : Return Rank Calendar Year Return As of Sep 2023 30 0 c 20 ❑ 5th to 25th Percentile • 50 Percentile ■ 75 Percentile ■ 95 Percentile • JPMorgan Equity Income Russell 1000 Value • 25 Y 10 • 50 100 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS JPMorgan Equity Income (3.08) (2.95) 9.77 10.91 7.73 9.99 10.02 Russell 1000 Value (3.16) 1.79 14.44 11.05 6.23 7.92 8.45 Risk / Return: October 2013 - September 2023 15 = 10 5 0 • S 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO JPMorgan Equity Income 10.02 14.02 0.91 2.11 97.47 0.64 Russell 1000 Value 8.45 15.17 1.00 0.00 100.00 0.48 Manager vs Benchmark: Alpha • JPMorgan Equity Income JPMorgan Equity Income 2 0 -5 YTD 10/2018- 09/2023 1 Year 3 Years LA 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • JPMorgan Equity Income Russell 1000 Value 2022 2021 2020 2019 2018 201712016'2015 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 Lead Portfolio Manager: Ms. Clare A. Hart (Since: Jan 1999) 1,000 800 600 400 200 0 12/2002 12/2007 12/2012 12/2017 12/2022 January 2003 - December 2022 CUMULATIVE EXCESS CUMULATIVE EXCESS RETURN RETURN RETURN RETURN JPMorgan Equity Income 10.95 698.64 2.12 255.84 5 Years 7 Years 10 Years 15 Years Since Inception 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 1.87 3.47 3.00 3.12 3.20 2.07 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 1.67 1.47 Graystone Consulting from Morgan Stanley STT JO Z9 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Columbia Select Lrg Cap Grw SMA Cmp - Manager Analysis as of September 30, 2023 Manager vs PSN Large Cap Growth : Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Columbia Cap Adv Select ... Russell 1000 Growth d 0 25 50 75 100 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Columbia Cap Adv Select LCG SMA -C (4.79) 19.93 29.50 1.36 8.24 12.06 11.07 Russell 1000 Growth (3.13) 24.98 27.72 7.97 12.42 15.64 14.48 Risk / Return: October 2013 - September 2023 20 15 - --- 10 0 • 0 2 6 8 10 12 14 16 18 20 22 Standard Deviation eh) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Columbia Cap Adv Select LCG SMA -C 11.07 19.69 1.10 (3.88) 86.19 0.51 Russell 1000 Growth 14.48 16.67 1.00 0.00 100.00 0.80 Manager vs Benchmark: Alpha Pi • Columbia Cap Adv Select LCG SMA -C Columbia Cap Adv Select LCG SMA -C YTD 1 Year 3 Years Calendar Year Return 40 L' 20 0 E 20 d I 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Columbia Cap Adv Select LCG SMA -C Russell 1000 Growth 2022 2021 2020 2019 2018 20171 2016 12015 2014 2013 Columbia Cap Adv (31.18) 10.20 48.08 37.76 (3.85) 35.71 (8.28) 7.71 8.46 44.41 Select LCG SMA -C Russell 1000 Growth (29.14) 27.60 38.49 36.39 (1.51) 30.21 7.08 5.67 13.05 33.48 Lead Portfolio Manager: Mr. Thomas M. Galvin, CFA (Since: Jan 2003) 600 500 400 300 200 100 - 0 1/2012 V 12/2014 12/2016 12/2018 12/2020 12/2022 February 2012 - December 2022 RETURN Columbia Cap Adv Select LCG SMA -C CUMULATIVE RETURN 11.68 233.94 EXCESS CUMULATIVE RETURN EXCESS RETURN (2.04) (72.80) 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 (4.18) (4.45) (2.65) (3.46) (5.58) (4.70) (4.15) N/A The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 59 Graystone Consulting from Morgan Stanley ■ STT JO E9 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Amundi US Large Cap Growth - Manager Analysis as of September 30, 2023 Manager vs PSN Large Cap Growth : Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Amundi Asset Amundi Pio... Russell 1000 Growth Return Rank 0 25 50 75 100 1 Qtr YTD ■ 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Amundi Asset Amundi Pioneer C (0.56) 18.74 28.36 9.48 12.56 14.42 14.01 Russell 1000 Growth (3.13) 24.98 27.72 7.97 12.42 15.64 14.48 Risk / Return: October 2013 - September 2023 20 15 10 5 0 ■ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Standard Deviation (WO October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Amundi Asset Amundi Pioneer C 14.01 15.14 0.88 1.11 94.44 0.85 'Russell 1000 Growth 14.48 16.67 1.00 0.00 100.00 0.80 Manager vs Benchmark: Alpha 5 • Amundi Asset Amundi Pioneer C _a 0 Amundi Asset Amundi Pioneer C Calendar Year Return 40 20 L' 0 -20 V 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Amundi Asset Amundi Pioneer C Russell 1000 Growth 2022 2021 2020 2019 2018 201712016 2015 2014 2013 Amundi Asset (19.89) 24.55 28.14 35.20 0.42 24.08 4.80 7.56 15.19 34.32 Amundi Pioneer C Russell 1000 "^ t� (29.14) 27.60 38.49 36.39 (1.51) 30.21 7.08 5.67 13.05 33.48 Lead Portfolio Manager: Mr. Andrew Acheson (Since: Jan 2007) 1,000 800 600 400 200 0 7/2009 12/2011 12/2013 12/2015 12/2017 12/2019 12/2022 August 2009 - December 2022 Amundi Asset Amundi Pioneer C RETURN CUMULATIVE EXCESS CUMULATIVE EXCESS RETURN RETURN RETURN 14.17 492.10 (0.01) (1.01) YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018- 10/2017- 10/2016- 10/2015- 10/2014- 10/2013- 10/2012- 10/2011- 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 1.41 0.14 (0.24) (0.36) 1.74 0.62 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 0.71 1.75 Graystone Consulting from Morgan Stanley ■ 11 STT 10179 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Vanguard S&P 500 ETF - Manager Analysis as of September 30, 2023 Manager vs Large Blend Universe: Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Vanguard S&P 500 ETF (M... S&P 500 d 0 25 50 75 100 1 Qtr 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Vanguard S&P 500 ETF (MKT) (3.21) 13.10 21.61 10.15 9.88 12.20 11.86 1 Yr 3 Yrs co YTD S&P 500 (3.27) 13.07 21.62 10.15 9.92 12.24 11.91 Risk / Return: October 2013 - September 2023 15 10 5 0 • 0 1 Calendar Year Return 0 30 20 1. 0 10 E 10 cj 20 1 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Vanguard S&P 500 ETF (MKT) S&P 500 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 IVanguard S&P 500 ETF (M (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 Lead Portfolio Manager: (Since: ) 600 - 500 400 300 200 100 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) 10/2010 12/2012 12/2014 12/2016 12/2018 12/2020 12/2022 October 2013 - September 2023 November 2010 - December 2022 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO RETURN CUMULATIVE EXCESS CUMULATIVE EXCESS Vanguard S&P 500 ETF (MKT) 11.86 14.93 1.00 (0.02) 99.97 0.72 RETURN RETURN RETURN Vanguard S&P 500 12.31 310.59 (0.05) (2.12) S&P 500 11.91 14.96 1.00 0.00 100.00 0.72 ETF (MKT) Manager vs Benchmark: Alpha 0.05 0.00 • Vanguard S&P 500 ETF (MKT) Vanguard S&P 500 ETF (MKT) YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 (0.02) (0.02) 0.03 0.01 0.03 (0.02) 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 (0.11) (0.08) Graystone Consulting from Morgan Stanley STT JO S9 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Invesco S&P 500111 Equal Weight ETF - Manager Analysis as of September 30, 2023 Manager vs Large Blend Universe: Return Rank As of Sep 2023 0 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Invesco S&P 500® Equal ... S&P 500 EQUAL WEIGHTED Return Rank 0 25 - 50 75 100 1 Qtr YTD 1 QTR YTD 1 YR 3 YRS Invesco S&P 500® Equal Weight ETF (MKT) (4.90) 1.69 13.32 11.25 3 Yrs 5 Yrs 7 Yrs 10 Yrs S&P 500 EQUAL WEIGHTED 5 YRS 7 YRS 10 YRS 7.79 9.74 9.91 Calendar Year Return • 30 20> 10 - IInvesco S&P 500® 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Invesco S&P 500® Equal Weight ETF (MKT) S&P 500 EQUAL WEIGHTED 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Equal Weight ETF (MKT) (11.62) 29.41 12.71 28.91 (7.82) 18.51 14.50 (2.66) 14.06 35.53 (4.90) 1.79 13.64 11.45 7.97 9.95 10.20 S&P 500 EQUAL (11.45) 29.63 12.83 29.24 (7.64) 18.90 14.80 (2.20) 14.49 36.16 WEIGHTED Lead Portfolio Manager: (Since: ) 1,000 Risk / Return: October 2013 - September 2023 Ye 0 0 1 J 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Standard Deviation (%) 800 600 400 200 � N 0 5/2003 12/2008 12/2013 October 2013 - September 2023 June 2003 - December 2022 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Invesco S&P 500® Equal Neight ETF (MKT) 5&P 500 EQUAL WEIGHTED 10.20 16.32 1.00 0.00 100.00 0.56 9.91 16.28 1.00 (0.25) 99.98 0.54 Manager vs Benchmark: Alpha 0.0 • Invesco S&P 500® Equal Weight ETF (MKT) YTD Invesco S&P 500® Equal Weight ETF (MKT) 12/2018 12/2022 RETURN CUMULATIVE EXCESS CUMULATIVE RETURN RETURN EXCESS RETURN 10.28 580.13 (0.46) (58.11) 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 Invesco S&P 500® Equal Weight ETF (MKT) (0.16) (0.14) (0.19) (0.27) (0.26) 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 (0.31) (0.41) (0.47) Graystone Consulting from Morgan Stanley STT JO 99 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Boston Partners Small/Mid Cap Val Eq - Manager Analysis as of September 30, 2023 Manager vs PSN Small -Mid Value : Return Rank Calendar Year Return As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Boston Partners BP Smid Russell 2500 Value Return Rank 0 25 -- 50 50 75 100 - 111 • 3 Yrs 1 Qtr YTD 1 Yr 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Boston Partners BP Smid (0.63) 5.98 16.59 16.90 6.40 8.18 8.05 Russell 2500 Value (3.66) 1.95 11.34 13.32 3.99 6.48 6.95 Risk / Return: October 2013 - September 2023 10 -- 8- E 6 - Y 4 2 11 0 2 6 8 10 12 14 16 Standard Deviation (%) ■ 22 October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Boston Partners BP Smid 8.05 19.99 1.04 0.92 96.82 0.35 Russell 2500 Value 6.95 18.91 1.00 0.00 100.00 0.31 Manager vs Benchmark: Alpha m 5 • 0 - ■ Boston Partners BP Smid Boston Partners BP Smid YTD 20 5, • 0 E 20 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Boston Partners BP Smid Russell 2500 Value 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 I Boston Partners BP (9.12) 27.64 4.49 31.79 (18.56) 13.64 25.36 (3.06) 5.34 35.33 Smid Russell 2500 Value (13.08) 27.78 4.88 23.56 (12.36) 10.36 25.20 (5.49) 7.11 33.32 Lead Portfolio Manager: Mr. George Gumpert, CFA (Since: Jan 2000) 1,000 - 800 600 400 200 0 7/2001 12/2006 August 2001 - December 2022 Boston Partners BP Smid RETURN 12/2011 CUMULATIVE RETURN 9.91 656.66 1 Year 3 Years 10/2018- 10/2017- 10/2016- 09/2023 09/2022 09/2021 2.41 0.68 5 Years 7 Years 10/2015 - 09/2020 0.22 (0.32) 10/2014- 09/2019 10 Years 12/2016 12/2022 EXCESS CUMULATIVE EXCESS RETURN RETURN 1.41 182.79 15 Years Since Inception 10/2013 - 10/2012 - 10/2011 - 09/2018 09/2017 09/2016 0.16 (0.23) 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 0.88 0.81 Graystone Consulting from Morgan Stanley STT JO L9 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans SMID Cap Growth - Manager Analysis as of September 30, 2023 Manager vs PSN Small -Mid Growth : Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Riverbridge Part SMID Cap... Russell 2500 Growth Return Rank 0 25 50 75 100 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Riverbridge Part SMID Cap Growth (6.44) 9.91 10.50 (1.16) 5.75 10.36 9.28 1 Yr 3 Yrs 7 Yrs 1 Qtr YTD 5 Yrs Russell 2500 Growth (6.84) 5.63 10.61 1.01 4.05 8.78 8.37 Risk / Return: October 2013 - September 2023 15 10 5 0 • • 4 6 8 10 12 14 16 18 20 Standard Deviation (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Riverbridge Part SMID Cap Growth 9.28 17.41 0.86 1.91 88.37 0.47 Russell 2500 Growth 8.37 18.94 1.00 0.00 100.00 0.38 Manager vs Benchmark: Alpha • Riverbridge Part SMID Cap Growth s 5 a 0 Riverbridge Part SMID Cap Growth YTD 1 Year Calendar Year Return 40 L' 20 0 20 V 4 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Riverbridge Part SMID Cap Growth - Russell 2500 Growth 2022 2021 2020 2019 201812017 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 (26.21) 5.04 40.47 32.65 (7.47) 24.46 9.73 (0.19) 7.05 40.65 Lead Portfolio Manager: Mr. Ross Johnson (Since: Sep 2010) 800 600 400 200 1/2007 12/2009 12/2011 February 2007 - December 2022 RETURN Riverbridge Part SMID Cap Growth 12/2013 12/2015 12/2017 12/2019 12/2022 CUMULATIVE EXCESS CUMULATIVE RETURN RETURN EXCESS RETURN 10.41 383.46 2.10 127.55 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018- 10/2017- 10/2016- 10/2015- 10/2014- 10/2013- 10/2012- 10/2011- 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 2.10 3.21 5.56 5.83 4.61 1.54 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 64 0.70 2.08 Graystone Consulting from Morgan Stanley STT JO 89 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Lazard International Strategic Eq Instl - Manager Analysis as of September 30, 2023 Manager vs Foreign Large Blend Universe: Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile ■ 75 Percentile • 95 Percentile • Lazard International Strat... MSCI EAFE (Net) Return Rank 0 25 50 75 100 Calendar Year Return 30 5 20 0 E -10 - V 10 - 1 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs • Lazard International Strategic Eq Inst) MSCI EAFE (Net) 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Lazard International (6.56) I Lazard International Strategic Eq Instl 6.56 4.64 19.76 2.61 1.84 4.26 3.34 Strategic Eq Inst) (16.88)5.99 10.58 21.55 (10.35)27.85 (5.17)(1.70)(1.48)25.02 MSCI EAFE (Net) (4.11) 7.08 25.65 5.75 3.24 5.29 3.82 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: October 2013 - September 2023 1 • 0 0 1 2 1 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Lazard International 3.34 14.96 0.97 (0.28) 92.03 0.15 Strategic Eq Instl MSCI EAFE (Net) 3.82 14.87 1.00 0.00 100.00 0.18 Manager vs Benchmark: Alpha • Lazard International Strategic Eq Instl 2 0 a -2 Lazard International Strategic Eq Instl Lead Portfolio Manager: (Since: ) 350 -- 300 250 200 150 100 50 11/200512/2007 12/2009 12/2011 12/2013 12/2015 12/2017 12/2019 12/2022 December 2005 - December 2022 Lazard International Strategic Eq Instl RETURN CUMULATIVE EXCESS CUMULATIVE RETURN RETURN EXCESS RETURN 5.02 131.03 1.12 38.74 YTD 1 Year 3 Years 5 Years 7 Years 10 Years 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 (1.26) 0.65 0.15 0.20 0.73 1.03 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 65 0.79 3.23 Graystone Consulting from Morgan Stanley STT JO 69 abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Vanguard Total International Stock ETF - Manager Analysis as of September 30, 2023 Manager vs Foreign Large Blend Universe: Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • Vanguard Total Internatio... FTSE GLOBAL ALL CAP EX ... 0 25 50 d 75 100 Vanguard Total International Stock ETF (MKT) FTSE GLOBAL ALL CAP EX US INDEX 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 5 7 10 YRS YRS YRS YRS (4.05) 5.42 20.58 3.94 2.81 4.80 3.63 (3.26)i5.7920.79 4.45 3.17 5.25 4.02 Risk / Return: October 2013 - September 2023 4 E 3 a' 2 1 • 0 0 1 2 5 6 7 8 9 10 11 12 13 14 15 16 Standard Deviation (%) Calendar Year Return E 20 z 10 0 10 V 11 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Vanguard Total International Stock ETF (MKT) FTSE GLOBAL ALL CAP EX US INDEX 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Vanguard Total IInternational Stock ETF (16.09) 9.00 10.69 21.75 (14.43) 27.45 4.81 (4.19) (4.74) 14.61 (MKT) 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 Lead Portfolio Manager: (Since: ) 200 150 100 50 2/2011 12/2013 October 2013 - September 2023 March 2011 - December 2022 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO 3.63 15.00 1.01 (0.37) 97.97 0.17 4.02 14.77 1.00 0.00 100.00 0.20 Janguard Total International Stock ?F (MKT) FTSE GLOBAL ALL CAP EX US INDEX Manager vs Benchmark: Alpha • Vanguard Total International Stock ETF (MKT) 0 la TE -2 Vanguard Total International Stock ETF (MKT) Vanguard Total International Stock ETF (MKT) YTD 1 Year 3 Years 10/2018- 10/2017- 09/2023 09/2022 (0.34) (0.46) 12/2015 12/2017 12/2019 12/2022 RETURN CUMULATIVE EXCESS CUMULATIVE RETURN RETURN EXCESS RETURN 3.16 44.54 5 Years 7 Years (0.45) (7.68) 10 Years 15 Years Since Inception 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 (0.49) (0.33) (0.23) (0.30) 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 66 (0.06) 0.15 Graystone Consulting from Morgan Stanley STT JO OL abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Short Term Taxable Fixed Income SMA - Manager Analysis as of September 30, 2023 Manager vs PSN Short Term Fixed Income : Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile • 75 Percentile • 95 Percentile • BlackRock Short Term TFI Bloomberg U.S. Governme... BlackRock Short Term TFI d 0 25 50 75 100 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS 0.57 1.88 2.85 (0.47) 1.44 1.26 1.23 Calendar Year Return 2 0 g 2 E 4 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • BlackRock Short Term TFI Bloomberg U.S. Government/Credit: 1-3 Year 2022 12021 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 Bloomberg U.S. Government/Credit: 1-3 Year 0.73 1.87 2.77 (0.72) 1.21 0.99 1.02 /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: October 2013 - September 2023 1.3 1.2 1.1 1.0 0.9 • 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 Standard Deviation (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO BlackRock Short Term TFI 1.23 1.31 0.96 0.25 94.12 0.09 Bloomberg U.S. Government /Credit: 1-3 Year 1.02 1.33 1.00 0.00 100.00 (0.07) Manager vs Benchmark: Alpha • BlackRock Short Term TFI a 0.2 0.0 BlackRock Short Term TFI YTD Lead Portfolio Manager: Mr. Kevin Bormida (Since: Feb 1991) 120 115 110 105 100 95 7/2012 12/2014 12/2016 August 2012 - December 2022 BlackRock Short Term TFI NW IN 1 Year 3 Years RETURN CUMULATIVE RETURN 1.09 11.91 5 Years 7 Years 12/2018 12/2020 12/2022 EXCESS CUMULATIVE EXCESS RETURN RETURN 0.21 2.39 10 Years 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 0.28 0.35 0.35 0.36 0.33 0.23 0.04 0.07 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 67 Graystone Consulting from Morgan Stanley STT JO TL abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Intermediate Term Fixed Income - Manager Analysis as of September 30, 2023 Manager vs PSN CF Intermediate Fixed Income : Return Rank Calendar Year Return As of Sep 2023 E 5 zs 0 ❑ 5th to 25th Percentile • 50 Percentile ■ 75 Percentile • 95 Percentile • Sage Advisory Interm Tax... Bloomberg U.S. Governme... Sage Advisory Interm Taxable 0 E 50 75 ✓ 100 1 Qtr YTD 1 QTR YTD 1 YR 3 YRS 5 YRS' 7 YRS 10 YRS (0.96) 0.90 2.44 3 Yrs 5 Yrs 7 Yrs 10 Yrs Bloomberg U.S. Government/Credit: Intermediate (0.83) 0.65 2.20 Risk / Return: October 2013 - September 2023 2.0 1.8 - E 1.6 1.4 1.2 1.0 0.2 (2.32) 1.52 1.11 1.63 (2.93) 1.02 0.62 1.27 • • 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 (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Sage Advisory Interm Taxable 1.63 3.18 1.00 0.37 89.13 0.16 Bloomberg U.S. Government 1.27 3.00 1.00 0.00 100.00 0.05 /Credit: Intermediate Manager vs Benchmark: Alpha • Sage Advisory Interm Taxable n 0.5 a 0.0 Sage Advisory Interm Taxable YTD 1 Year 1 Sage Advisory Interm 4.21 190.82 0.29 20.37 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Sage Advisory Interm Taxable Bloomberg U.S. Government/Credit: Intermediate 2022 2021 2020 2019 2018 2017 2016 20151201412013 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: (8.24) (1.44) 6.43 6.80 0.88 2.14 2.08 1.07 3.13 (0.86) Lead Portfolio Manager: Mr. Robert G. Smith, III (Since: Dec 1996) 350 -- 300 250 200 150 100 50 1/1997 12/2002 12/2007 12/2012 12/2017 12/2022 February 1997 - December 2022 RETURN CUMULATIVE EXCESS CUMULATIVE EXCESS RETURN RETURN RETURN Taxable 3 Years 5 Years 7 Years 10 Years 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 0.48 0.57 0.42 0.13 0.39 0.41 15 Years Since Inception 10/2012 - 10/2011 - 09/2017 09/2016 0.31 0.51 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 68 Graystone Consulting from Morgan Stanley STT JO ZL abed City of Atlantic Beach General Employees' & Police Officers' Pension Plans Tortoise Energy Infrastructure TR Ins - Manager Analysis as of September 30, 2023 Manager vs Energy Limited Partnership Universe: Return Rank As of Sep 2023 ❑ 5th to 25th Percentile • 50 Percentile ■ 75 Percentile ■ 95 Percentile • Tortoise MLP & Pipeline Instl Alerian MLP 0 25 50 d 75 100 1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs 1 QTR YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS Tortoise MLP & Pipeline Instl 3.25 8.08 18.23 31.08 5.24 4.05 3.58 Alerian MLP 9.90 20.56 32.74 43.10 6.81 4.97 1.93 Risk / Return: October 2013 - September 2023 3 2 1 0 ■ 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Standard Deviation (%) October 2013 - September 2023 RETURN STD DEV BETA ALPHA R -SQUARED SHARPE RATIO Tortoise MLP & Pipeline Instl 3.58 25.27 0.78 1.66 89.14 0.10 Alerian MLP 1.93 30.75 1.00 0.00 100.00 0.03 Manager vs Benchmark: Alpha 0 t -10 • Tortoise MLP & Pipeline Instl Tortoise MLP & Pipeline Inst) YTD 1 Year 3 Years Calendar Year Return 40 20 0 • -20 E V EN - 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 • Tortoise MLP & Pipeline Instl Alerian MLP 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 I Tortoise MLP 22.13 40.81 (29.51) 18.39 (15.14) (1.03) 42.12 (35.80) 11.66 28.60 & Pipeline Inst) Alerian MLP 30.92 40.17 (28.69) 6.56 (12.42) (6.52) 18.31 (32.59) 4.80 27.58 Lead Portfolio Manager: (Since: ) 250 - 200 150 100 50 0 6/2011 12/2013 12/2015 July 2011 - December 2022 RETURN CUMULATIVE EXCESS CUMULATIVE EXCESS RETURN RETURN RETURN 12/2017 12/2019 12/2022 Tortoise MLP & Pipeline Instl 6.01 95.66 5 Years 7 Years 10 Years 3.16 57.57 15 Years Since Inception 10/2018 - 10/2017 - 10/2016 - 10/2015 - 10/2014 - 10/2013 - 10/2012 - 10/2011 - 09/2023 09/2022 09/2021 09/2020 09/2019 09/2018 09/2017 09/2016 (0.78) (0.01) 0.76 2.27 4.37 4.48 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 69 5.46 6.89 Graystone Consulting from Morgan Stanley STT JO EL aged Graystone Consulting from Morgan Stanley Page 70 Updated Values / Recommendations STT JO tiL abed City of Atlantic Beach General Employees' Pension Updated Values As of November 1, 2023 AL ° f Total Current Policy Target Current Policy Range Fiscal YTD Return Recommended Resulting Since 9/30/2023 $ Change ° Dollar Weighted- Net JP Morgan - Equity Income Columbia - Large Cap Growth Pioneer - Large Cap Growth Vanguard S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Total Large Cap Equity Boston - SMID Value Riverbridge- SMID Growth Total Mid-, Small, or Smid- Cap Equity Lazard - International Strategic Equity Vanguard Total International Stock ETF Total International Equity BlackRock - PPM Short -Term Taxable Fixed Income Sage - Fixed Income Total Fixed Income Tortoise - MLP & Pipeline Principal - REIT Total Alternative Investments CGA Cash Deposits & Disbursements Total Cash & Equivalents $4,143,210 $1,014,198 $2,001,247 $1,178,017 $932,629 $9,269,301 $1,924,046 $922,731 $2,846,776 $1,483,934 $1,426,140 $2,910,074 $1,813,296 $4,293,235 $6,106,531 $1,363,207 $852,420 $2,215,627 $506 $8,182 $8,688 17.74% 4.34% 8.57% 5.04% 3.99% 39.69% 8.24% 3.95% 12.19% 6.35% 6.11% 12.46% 7.76% 18.38% 26.14% 5.84% 3.65% 9.49% 0.00% 0.04% 0.04% 33.00% 20.00 - 50.00% 10.00% 5.00 - 20.00% 15.00% 10.00 - 20.00% 30.00% 20.00 - 40.00% 6.00% 1.00 - 15.00% 0.00 - 11.00% 6.00% 17.74% 4.34% 8.57% 5.04% 3.99% 39.69% 8.24% 3.95% 12.19% 6.35% 6.11% 12.46% 7.76% 18.38% 26.14% 5.84% 3.65% 9.49% 0.00% 0.04% 0.04% - 3.7% -9.0% - 2.8% - 2.4% 0.3% -0.3% 0.2% - 2.9% Total Fund $23,356,997 100.00% $0 100.00% -1.8% Dollar -Weighted Returns The portfolio returns are calculated on a dollar -weighted basis, accounting for deposits and cash flows upon receipt. The dollar -weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar -weighted return is the appropriate measurement to evaluate the fund's performance in relation to the statement of investment policy and guidelines. The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. Page 71 Graystone Consulting from Morgan Stanley STT JO SL abed City of Atlantic Beach Police Officers' Pension Updated Values As of November 1, 2023 AL ° f Total Current Policy Target Current Policy Range Fiscal YTD Return Recommended Resulting Since 9/30/2023 $ Change Dollar Weighted- Net JP Morgan - Equity Income Columbia - Large Cap Growth Pioneer - Large Cap Growth Vanguard S&P 500 Index ETF Invesco - S&P 500 Equal Weight ETF Total Large Cap Equity Boston - SMID Value Riverbridge- SMID Growth Total Mid-, Small, or Smid- Cap Equity Lazard - International Strategic Equity Vanguard Total International Stock ETF Total International Equity BlackRock - PPM Short -Term Taxable Fixed Income Sage - Fixed Income Total Fixed Income Tortoise - MLP & Pipeline Principal - REIT Total Alternative Investments CGA Cash Deposits & Disbursements Total Cash & Equivalents $2,732,167 $624,435 $1,343,573 $761,652 $566,771 $6,028,598 $1,204,286 $597,236 $1,801,523 $967,052 $925,725 $1,892,776 $1,243,301 $2,628,901 $3,872,202 $889,818 $559,635 $1,449,453 $518 $174,570 $175,088 17.95% 4.10% 8.83% 5.00% 3.72% 39.61% 7.91% 3.92% 11.84% 6.35% 6.08% 12.44% 8.17% 17.27% 25.44% 5.85% 3.68% 9.52% 0.00% 1.15% 1.15% 33.00% 20.00 - 50.00% 10.00% 5.00 - 20.00% 15.00% 10.00 - 20.00% 30.00% 20.00 - 40.00% 6.00% 1.00 - 15.00% 0.00 - 11.00% 6.00% 17.95% 4.10% 8.83% 5.00% 3.72% 39.61% 7.91% 3.92% 11.84% 6.35% 6.08% 12.44% 8.17% 17.27% 25.44% 5.85% 3.68% 9.52% 0.00% 1.15% 1.15% - 3.7% -9.0% - 2.8% - 2.4% 0.3% -0.3% 0.2% - 2.9% Total Fund $15,219,640 100.00% $0 100.00% -1.8% Dollar -Weighted Returns The portfolio returns are calculated on a dollar -weighted basis, accounting for deposits and cash flows upon receipt. The dollar -weighted or internal rate of return - IRR is the actual rate earned by the Fund. The dollar -weighted return is the appropriate measurement to evaluate the fund's performance in relation to the statement of investment policy and guidelines. The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. Page 72 Graystone Consulting from Morgan Stanley STT JO 9L aged Page 73 Important Notes About This Report PAST 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, risk tolerance 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 available in 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 11/4/2022 Graystone Consulting from Morgan Stantey STT JO LL aged Page 74 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 mutual funds, 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 the Fee 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 included in 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.morganstanlev.com/wealth/investmentsolutions/pdfs/adv/sotresoonse. pdf www.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 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 8L aged Page 75 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, and between the performance in Programs and performance outside the Programs, due to, among other things, investment and operational differences. 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, may engage 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's gross and net performance in its programs. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 6L aged Page 76 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 indices used in this report may not be the same indices used for comparative purposes in the profile for each investment manager, mutual fund and/or ETF that accompanies this report. Indices are unmanaged. They do not reflect any management, custody, transaction or 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 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 08 abed Page 77 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 the information 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 11/4/2022 Graystone Consulting from Morgan Stanley STT Jo T8 abed Page 78 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, and global 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 subject to 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 11/4/2022 Graystone Consulting from Morgan Stantey STT JO Z8a2ed Page 79 Important Notes About This Report (Cont'd) 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 or more, 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 to US 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. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO £8 aged Page 80 Important Notes About This Report (Cont'd) 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 MLPs entails 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. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT 10178 aged Glossary ALPHA: 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 of more 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 and forming 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 not refer 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 to asset 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. Page 81 CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO S8a2ed Page 82 Glossary (Cont'd) 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 and forming 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's benchmark index had negative returns and then (2) for those quarters, dividing the portfolio's annualized net performance by the benchmark 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 drawdown DRAWDOWN END DATE: The last date of the sub period used to calculate the maximum drawdown DRAWDOWN LENGTH: The number of periods (months or quarters depending on the periodicity of the data) the sub -period used to calculate the maximum drawdown DRAWDOWN RECOVERY DATE: Date at which the compounded returns regain the peak level that was reached before the drawdown began DRAWDOWN RECOVERY LENGTH: Number of periods it takes to reach the recovery level from maximum drawdown end date CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 98 aged Page 83 Glossary (Cont'd) 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 analyzed UNDER WATER LENGTH: Length of the time interval that begins with the high water mark and ends with the analysis period TO HIGH WATER MARK: The percentage of gain that the manager/fund needs to regain the peak level of the cumulative return series INFORMATION 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 successful result 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. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO L8a2ed Page 84 Glossary (Cont'd) 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 entire downside, 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 a more 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's R -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. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 88 aged Page 85 Glossary (Cont'd) 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, StyIeADVISOR 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. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stantey STT JO 68 aged Page 86 Glossary (Cont'd) STYLE BASIS: A set of indices that represent the broad asset category being utilized. The Style Basis is used in the equation that 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 Indexes STYLE 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 excess return, 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 the benchmark 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 an benchmark 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 11/4/2022 Graystone Consulting from Morgan Stantey Performance Appendix Performance Data below is net offees. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Account Name 10 Since Inception Years Years Years Inception Date BlackRock - PPM Short -Term Taxable Fixed Income 0.91 2.23 3.20 -- -- -- 1.04 03/24/2022 Boston - SMID Value -0.69 5.68 16.38 16.44 5.66 6.77 7.87 03/12/2010 CGA - Cash 0.66 781.20 781.72 -- -- -- -- 09/01/2019 Columbia Mgmt - Select LC Grwth -5.25 19.11 28.39 0.41 7.61 10.17 11.11 03/12/2010 Deposit & Disbursement Account 0.82 81.48 -- -- 03/10/2010 Invesco - S&P 500 Equal Weight ETF -4.94 1.56 13.13 -- -- -- -0.80 05/18/2021 JP Morgan - Equity Income -3.18 -3.42 9.18 10.47 7.27 9.33 9.26 03/12/2010 Lazard - Intemational Strategic Equity -6.56 4.65 19.76 2.61 -- 2.64 09/01/2019 Pioneer - Large Cap Growth -1.14 17.43 26.97 8.63 11.67 12.95 08/19/2016 Principal - REIT -6.38 -1.50 0.87 -- -- -- 2.03 11/18/2020 Riverbridge - SMID Growth -6.77 8.88 9.11 -2.30 4.86 7.66 10.69 03/12/2010 Sage Advisory - Int. Fixed Income -1.22 0.38 1.99 -2.68 1.02 1.22 0.97 04/24/2013 Tortoise - MLP & Pipeline 3.25 8.08 18.23 31.08 8.02 09/01/2019 Vanguard - S&P 500 Index ETF -3.22 13.09 21.60 10.12 11.61 09/01/2019 Vanguard - Total International Stock ETF -4.06 5.41 20.55 3.92 4.44 09/01/2019 All performance above are Time Weighted(TWR) performance STT JO 06 abed STT JO T6 abed 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 offuture 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 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 retums. 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 STT JO Z6 abed 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. 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Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek alternative -like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. 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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. 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STT JO E6 abed Page 94 of 115 G RS September 18, 2023 Ms. Brittany Percell Director of Finance City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Agenda Item #5.A. 09 Nov 2023 P: 954.527.1616 F: 954.525.0083 I www.grsconsulting.com Re: City of Atlantic Beach Police Officers' Retirement System (Plan) Supplemental Actuarial Valuation Report Dear Brittany: As requested, we have prepared the enclosed Supplemental Actuarial Valuation Report for the City of Atlantic Beach Police Officers' Retirement System (Plan) which measures the first-year financial impact of the proposed Plan changes as summarized below: Scenario 1: Implement a one-time Cost of Living Adjustment for current retirees of 1.00% for every full year elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 1.00% prospectively for current and future retirees. Scenario 2: Implement a one-time Cost of Living Adjustment for current retirees of 3.00% for every 5 full years elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 1.00% prospectively for current and future retirees. Scenario 3: Implement a one-time Cost of Living Adjustment for current retirees of 1.00% for every full year elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. Scenario 4: Implement a one-time Cost of Living Adjustment for current retirees of 3.00% for every 5 full years elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. The enclosed exhibits show the impact of the above changes on the City's contribution requirement, the Unfunded Actuarial Accrued Liability (UAAL), the funded ratio in the first year and the ultimate cost to the City in today's dollars (for this report, the ultimate cost is the change in the Actuarial Present Value of all Projected Benefits). Please note that the increase in the UAAL was amortized over 15 years in this analysis, rather than the 30 - year period which has been used by the Board to amortize plan changes in the past. Since the proposed plan changes significantly increase liabilities for current retirees and for benefits attributable to past years One East Broward Boulevard Suite 505 Ft. Lauderdale, Florida 33301-1804 Page 95 of 115 Agenda Item #5.A. 09 Nov 2023 Ms. Brittany Percell September 18, 2023 Page 2 of service, the shorter amortization period accelerates funding and limits the transfer of costs to future taxpayers. Summary of Findings The baseline results shown on the enclosed exhibits are from the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. As compared to these baseline results, the proposed benefit changes would have the impacts described on the following page. Scenario 1: • The first year required City contribution would increase by $306,822, or 13.54% of covered payroll. • The Funded Ratio would decrease by 13.4%, from 94.9% to 81.5%. • The ultimate cost of the proposed changes for current plan participants is measured by the change in the Actuarial Present Value of Projected Benefits, or approximately $3,056,000. This represents the increase in benefit payments expected to be funded by the City in today's dollars. This assumes all of the actuarial assumptions are met each year. Approximately $1,060,000 of this increase is attributable to the one-time Cost of Living Adjustment for current retirees. Scenario 2: • The first year required City contribution would increase by $254,247, or 11.22% of covered payroll. • The Funded Ratio would decrease by 11.0%, from 94.9% to 83.9%. • The ultimate cost of the proposed changes for current plan participants is measured by the change in the Actuarial Present Value of Projected Benefits, or approximately $2,482,000. This represents the increase in benefit payments expected to be funded by the City in today's dollars. This assumes all of the actuarial assumptions are met each year. Approximately $530,000 of this increase is attributable to the one-time Cost of Living Adjustment for current retirees. Scenario 3: • The first year required City contribution would increase by $554,846, or 24.49% of covered payroll. • The Funded Ratio would decrease by 21.1%, from 94.9% to 73.8%. • The ultimate cost of the proposed changes for current plan participants is measured by the change in the Actuarial Present Value of Projected Benefits, or approximately $5,410,000. This represents the increase in benefit payments expected to be funded by the City in today's dollars. This assumes all of the actuarial assumptions are met each year. Approximately $1,060,000 of this increase is attributable to the one-time Cost of Living Adjustment for current retirees. Scenario 4: R.5 • The first year required City contribution would increase by $497,866, or 21.97% of covered payroll. • The Funded Ratio would decrease by 18.9%, from 94.9% to 76.0%. • The ultimate cost of the proposed changes for current plan participants is measured by the change in the Actuarial Present Value of Projected Benefits, or approximately 4,789,000. This represents the increase in benefit payments expected to be funded by the City in today's dollars. This assumes all of the actuarial assumptions are met each year. Approximately $530,000 of this increase is attributable to the one-time Cost of Living Adjustment for current retirees. Page 96 of 115 Agenda Item #5.A. 09 Nov 2023 Ms. Brittany Percell September 18, 2023 Page 3 Other Cost Considerations • The enclosed figures measure the increase in the City's contribution requirement for the first year only, and assume that all of the actuarial assumptions are met. Future costs and contribution requirements can be significantly higher or lower depending on the extent to which Plan experience differs from that anticipated by the assumptions, increases or decreases are expected as part of the methodology used to determine contribution requirements, and if there are any future changes in assumptions, plan provisions, or applicable law. ■ Automatic COLAs which exceed the actual CPI increases can outpace investment returns and add to longer term financial stress for the Plan. ■ As of October 1, 2022, the Actuarial Value of Assets exceeds the Market Value of Assets by approximately $1,839,000. This difference will be gradually recognized over the next three years. In turn, the employer contribution will increase in the absence of offsetting gains. Additional Disclosures Please refer to the last page of this report for a discussion of risks associated with measuring the accrued liability and actuarially determined contribution. This report was prepared at the request of the Board and is intended for use by the Plan and those designated or approved by the Board. This report may be provided to parties other than the Plan only in its entirety and only with the permission of the Board. This report is intended to describe the financial effect on the Plan of the proposed changes under the scenarios detailed on the previous pages. Potential effects on other benefit plans were not considered. No statement in this report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to them. Determinations of financial results associated with the benefits described in this report, for purposes other than those identified herein may be significantly different. The calculations in this report are based upon information furnished by the Plan Administrator for the October 1, 2022 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We reviewed this information for internal and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The date of the valuation was October 1, 2022. This means that the results of the supplemental valuation indicate what the October 1, 2022 valuation would have shown if the proposed benefit changes had been in effect on that date. Supplemental valuations do not predict the result of future actuarial valuations. Rather, supplemental valuations give an indication of the cost of the benefit change only without comment on the complete end result of future valuations. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based on the assumptions, methods, and plan provisions outlined in the October 1, 2022 Actuarial Valuation Report and this report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions Page 97 of 115 Agenda Item #5.A. 09 Nov 2023 Ms. Brittany Percell September 18, 2023 Page 4 relevant to this Report are not described, or that conditions have changed since the calculations were made, you should contact the author of the report prior to relying on information in the report. This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, and with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Nicolas Lahaye and Dina Lerner are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuaries are independent of the plan sponsor. We will be pleased to answer any questions pertaining to this report. Sincerely, Gabriel, Roeder, Smith & Company Nicolas Lahaye, FSA, EA, MAAA, FCA Dina Lerner, FSA, EA, MAAA, FCA Consultant & Actuary Consultant & Actuary Enclosures This communication shall not be construed to provide tax advice, legal advice or investment advice. - Page 98 of 115 Plan Agenda Item #5.A. 09 Nov 2023 SUPPLEMENTAL ACTUARIAL VALUATION REPORT City of Atlantic Beach Police Officers' Retirement System Valuation Date October 1, 2022 Date of Report September 18, 2023 Report Requested by Board of Trustees Prepared by Nicolas Lahaye and Dina Lerner Group Valued All active and inactive participants of the Plan as of October 1, 2022. Benefit Provisions Being Considered for Change Scenario 1: Implement a one-time Cost of Living Adjustment for current retirees of 1.00% for every full year elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 1.00% prospectively for current and future retirees. Scenario 2: Implement a one-time Cost of Living Adjustment for current retirees of 3.00% for every 5 full years elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 1.00% prospectively for current and future retirees. Scenario 3: Implement a one-time Cost of Living Adjustment for current retirees of 1.00% for every full year elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. Scenario 4: Implement a one-time Cost of Living Adjustment for current retirees of 3.00% for every 5 full years elapsed since the date of benefit commencement, and an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. Participants Affected All current and future active and inactive Participants of the Plan (as described above). City of Atlantic Beach Police Officers' Retirement System 5 Page 99 of 115 Agenda Item #5.A. 09 Nov 2023 Actuarial Assumptions and Methods Same as the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. Some of the key assumptions/methods are: Investment Return Mortality Table Salary increase Cost Method 6.75% per year compounded annually, net of investment expenses Assumptions used by the Florida Retirement System (FRS) for Special Risk members in the FRS actuarial valuation as of July 1, 2021. Age based ranging from 4.5% to 18.5% (including 2.5% price inflation) Entry Age Normal Amortization Period for Any Change in Actuarial Accrued Liability The impact of the proposed plan changes on the actuarial accrued liability was amortized as a level percentage of payroll over a 15 -year period. In accordance with the requirements of Ch. 112.64(5)(a), F.S., the payroll growth rate used to amortize the unfunded actuarial accrued liabilities was 3.35% (the actual payroll growth rate over the last 10 years). Without the Ch. 112.64(5)(a), F.S. limitation the payroll growth rate would have been 3.5%. Summary of Data Used in Report See attached page entitled "Participant Data"; based on the data used for the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. Actuarial Impact of Proposed Changes See attached page(s). Special Risks Involved That the Plan Has Not Been Exposed to Previously None; please refer to the last page of this report for a discussion of risks associated with measuring the accrued liability and actuarially determined contribution. Other Cost Considerations • The enclosed figures measure the increase in the City's contribution requirement for the first year only, and assume that all of the actuarial assumptions are met. Future costs and contribution requirements can be significantly higher or lower depending on the extent to which Plan experience differs from that anticipated by the assumptions, increases or decreases are expected as part of the methodology used to determine contribution requirements, and if there are any future changes in assumptions, plan provisions, or applicable law. • Automatic COLAs which exceed the actual CPI increases can outpace investment returns and add to longer term financial stress for the Plan. • As of October 1, 2022, the Actuarial Value of Assets exceeds the Market Value of Assets by approximately $1,839,000. This difference will be gradually recognized over the next three years. In turn, the employer contribution will increase in the absence of offsetting gains. City of Atlantic Beach Police Officers' Retirement System 6 Page 100 of 115 Agenda Item #5.A. 09 Nov 2023 ACTUARIALLY DETERMINED EMPLOYER CONTRIBUTION (ADEC) A. Valuation Date October 1, 2022 October 1, 2022 October 1, 2022 October 1, 2022 October 1, 2022 1% Annual COLA 1% Annual COLA 2% Annual COLA 2%Annual COLA No COLA and Retiree Catch- and Retiree Catch- and Retiree Catch- and Retiree Catch - Up Increase of 1% Up Increase of 3% Up Increase of 1% Up Increase of 3% Per Year Retired Per 5 Years Retired Per Year Retired Per 5 Years Retired Baseline Scenario 1 Scenario 2 Scenario 3 Scenario 4 B. ADEC to Be Paid During Fiscal Year Ending 9/30/2024 9/30/2024 9/30/2024 9/30/2024 9/30/2024 C. Assumed Date(s) of Employer Contribution Monthly Monthly Monthly Monthly Monthly D. Annual Payment to Amortize Unfunded Actuarial Liability (UAL) if Paid on the Valuation Date $ 103,565 $ 336,321 $ 288,807 $ 506,936 $ 455,442 E. Employer Normal Cost (including Administrative Expenses) if Paid on the Valuation Date 303,073 347,600 347,600 401,131 401,131 F. ADEC if Paid on the Valuation Date: D + E 406,638 683,921 636,407 908,067 856,573 G. ADEC Adjusted for Frequency of Payments and Interest to Required Time of Contribution 449,957 756,779 704,204 1,004,803 947,823 H. Covered Payroll for Contribution Year $ 2,265,652 $ 2,265,652 $ 2,265,652 $ 2,265,652 $ 2,265,652 I. ADEC as % of Covered Payroll in Contribution Year: G - H 19.86 % 33.40 % 31.08 % 44.35 % 41.83 % J. Estimated Credit for State Revenue in Contribution Year* 144,821 144,821 144,821 144,821 144,821 K. Required Employer Contribution (REC) in Contribution Year: G -J 305,136 611,958 559,383 859,982 803,002 L. REC as %of Covered Payroll in Contribution Year: K=H 13.47 % 27.01 % 24.69 % 37.96 % 35.44 % M. Increase/(Decrease) in REC in Contribution Year N/A 306,822 254,247 554,846 497,866 N. Increase/(Decrease) in REC as a % of Covered Payroll in Contribution Year N/A 13.54 % 11.22 % 24.49 % 21.97 % *Chapter 185 Florida Statutes. The City contribution amount may need to be increased if the amount received under the provisions of Chapter 185, Florida Statutes, is not sufficient to meet the total employer contribution requirement. City of Atlantic Beach Police Officers' Retirement System 7 Page 101 of 115 A. Valuation Date B. Actuarial Present Value of All Projected Benefits for 1. Active Members a. Service Retirement Benefits b. Vesting Benefits c. Disability Benefits d. Preretirement Death Benefits e. Return of Member Contributions f. Tota I 2. Inactive Members a. Service Retirees & Beneficiaries b. Disability Retirees c. Terminated Vested Members d. Total 3. DROP Balances 4. Total for All Members C. Change in Actuarial Present Value of All Projected Benefits D. Actuarial Accrued (Past Service) Liability under Entry Age Normal* E. Plan Assets* 1. Market Value 2. Actuarial Value ACTUARIAL VALUE OF BENEFITS AND ASSETS October 1, 2022 No COLA Baseline $ 11,463,689 482,195 188,877 64,983 82,151 12,281,895 5,902,950 642,511 460,214 7,005,675 129,387 19,416,957 N/A 17,049,775 14,344,281 16,182,954 F. Unfunded Actuarial Accrued Liability (UAAL) 866,821 G. Increase/(Decrease) in UAAL N/A H. Actuarial Present Value of Projected Covered Payrol I 12,410,655 I. Actuarial Present Value of Projected Member Contributions 992,852 J. Funded Ratio (AVA basis): E2/D K. Increase/(Decrease) in Funded Ratio * Includes DROP balances. CRS 94.9 % N/A October 1, 2022 1%Annual COLA and Retiree Catch - Up Increase of 1% Per Year Retired Scenario 1 $ 12,694,961 535,344 207,798 72,960 82,151 13,593,214 7,402,837 842,563 504,657 8,750,057 129,387 22,472,658 3,055,701 19,860,568 14,344,281 16,182,954 3,677,614 2,810,793 12,410,655 992,852 81.5 % (13.4) % October 1, 2022 1% Annual COLA and Retiree Catch - Up Increase of 3% Per 5 Years Retired Scenario 2 $ 12,694,961 535,344 207,798 72,960 82,151 13,593,214 6,899,044 772,571 504,657 8,176,272 129,387 21,898,873 2,481,916 19,286,783 14,344,281 16,182,954 3,103,829 2,237,008 12,410,655 992,852 83.9 % (11.0) % October 1, 2022 2%Annual COLA and Retiree Catch - Up Increase of 1% Per Year Retired Scenario 3 $ 14,159,968 599,299 230,190 82,745 82,151 15,154,353 8,051,737 935,029 556,933 9,543,699 129,387 24,827,439 5,410,482 21,920,934 14,344,281 16,182,954 5,737,980 4,871,159 12,410,655 992,852 73.8 % (21.1) % Agenda Item #5.A. 09 Nov 2023 October 1, 2022 2% Annual COLA and Retiree Catch - Up Increase of 3% Per 5 Years Retired Scenario 4 $ 14,159,968 599,299 230,190 82,745 82,151 15,154,353 City of Atlantic Beach Police Officers' Retirement System 7,506,818 858,099 556,933 8,921,850 129,387 24,205,590 4,788,633 21,299,085 14,344,281 16,182,954 5,116,131 4,249,310 12,410,655 992,852 76.0 % (18.9) % 8 Page 102 of 115 A. Valuation Date B. Normal Cost for 1. Service Retirement Benefits 2. Vesting Benefits 3. Disability Benefits 4. Preretirement Death Benefits 5. Return of Member Contributions 6. Tota I for Future Benefits 7. Assumed Amount for Admin. Expenses 8. Total Normal Cost As %of Covered Payroll C. Expected Member Contribution As %of Covered Payroll D. Net Employer Normal Cost: B8 - C As % of Covered Payroll E. Increase in Net Employer Normal Cost As % of Covered Payroll `RS CALCULATION OF EMPLOYER NORMAL COST October 1, 2022 October 1, 2022 No COLA Baseline $ 320,853 57,822 20,380 4,049 23,583 426,687 41,745 468,432 I% Annual COLA and Retiree Catch - Up Increase of 1% Per Year Retired Scenario 1 $ 356,741 63,819 22,494 4,577 23,583 471,214 41,745 512,959 21.77 % 23.84 % October 1, 2022 I% Annual COLA and Retiree Catch - Up Increase of 3% Per 5 Years Retired Scenario 2 $ 356,741 63,819 22,494 4,577 23,583 471,214 41,745 512,959 23.84 October 1, 2022 2%Annual COLA and Retiree Catch - Up Increase of 1% Per Year Retired Scenario 3 $ 399,810 71,106 25,015 5,231 23,583 524,745 41,745 566,490 26.33 % Agenda Item #5.A. 09 Nov 2023 October 1, 2022 2% Annual COLA and Retiree Catch - Up Increase of 3% Per5 Years Retired Scenario 4 $ 399,810 71,106 25,015 5,231 23,583 524,745 41,745 566,490 26.33 % $ 165,359 $ 165,359 $ 165,359 $ 165,359 $ 165,359 7.69 % 7.69 % 7.69 % 7.69 % 7.69 % $ 303,073 $ 347,600 $ 347,600 $ 401,131 $ 401,131 14.09 % 16.15 % 16.15 % 18.64 % 18.64 % N/A N/A $ 44,527 $ 2.06 % 44,527 $ 98,058 $ 2.06 % 4.55 % City of Atlantic Beach Police Officers' Retirement System 98,058 4.55 % 9 Page 103 of 115 Agenda Item #5.A. 09 Nov 2023 PARTICIPANT DATA October 1, 2022 October 1, 2022 October 1, 2022 Baseline Scenarios 1 and 3 Scenarios 2 and 4 ACTIVE MEMBERS Number 26 26 26 Covered Annual Payroll $ 2,151,705 $ 2,151,705 $ 2,151,705 Average Annual Payroll $ 82,758 $ 82,758 $ 82,758 Average Age 43.5 43.5 43.5 Average Past Service 11.3 11.3 11.3 Average Age at Hire 32.2 32.2 32.2 RETIREES, BENEFICIARIES & DROP Number 18 18 18 Current Annual Benefits $ 595,460 $ 696,882 $ 646,534 Average Annual Benefit $ 33,081 $ 38,716 $ 35,919 Average Age 68.7 68.7 68.7 DISABILITY RETIREES Number 3 3 3 Current Annual Benefits $ 59,673 $ 71,947 $ 65,644 Average Annual Benefit $ 19,891 $ 23,982 $ 21,881 Average Age 64.6 64.6 64.6 TERMINATED VESTED MEMBERS Number 4 4 4 Annual Benefits $ 67,285 $ 67,285 $ 67,285 Average Annual Benefit $ 16,821 $ 16,821 $ 16,821 Average Age 50.5 50.5 50.5 CS City of Atlantic Beach Police Officers' Retirement System 10 Page 104 of 115 Agenda Item #5.A. 09 Nov 2023 Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution The determination of the accrued liability and the actuarially determined contribution requires the use of assumptions regarding future economic and demographic experience. Risk measures are intended to aid in the understanding of the effects of future experience differing from the assumptions used in the course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in the accrued liability and the actuarially determined contribution that result from the differences between actual experience and the actuarial assumptions. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions due to changing conditions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period, or additional cost or contribution requirements based on the Plan's funded status); and changes in Plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such future measurements. Examples of risk that may reasonably be anticipated to significantly affect the Plan's future financial condition include: 1. Investment risk — actual investment returns may differ from the either assumed or forecasted returns; 2. Contribution risk — actual contributions may differ from expected future contributions. For example, actual contributions may not be made in accordance with the Plan's funding policy or material changes may occur in the anticipated number of covered employees, covered payroll, or other relevant contribution base; 3. Salary and Payroll risk—actual salaries and total payroll may differ from expected, resulting in actual future accrued liability and contributions differing from expected; 4. Longevity risk — members may live longer or shorter than expected and receive pensions for a period of time other than assumed; 5. Other demographic risks — members may terminate, retire or become disabled at times or with benefits other than assumed resulting in actual future accrued liability and contributions differing from expected. The effects of certain trends in experience can generally be anticipated. For example, if the investment return is less (or more) than the assumed rate, the cost of the Plan can be expected to increase (or decrease). Likewise, if longevity is improving (or worsening), increases (or decreases) in cost can be anticipated. The computed contribution amounts may be considered as a minimum contribution that complies with the pension Board's funding policy and the State statutes. The timely receipt of the actuarially determined contributions is critical to support the financial health of the Plan. Users of this report should be aware that contributions made at the actuarially determined rate do not necessarily guarantee benefit security. Risk Assessment Risk assessment was outside the scope of this report. Risk assessment may include scenario tests, sensitivity tests, stochastic modeling, stress tests, and a comparison of the present value of accrued benefits at low-risk discount rates with the actuarial accrued liability. We are prepared to perform such assessment to aid in the decision-making process. City of Atlantic Beach Police Officers' Retirement System 11 Page 105 of 115 G RS October 26, 2023 Ms. Brittany Percell Director of Finance City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Agenda Item #5.A. 09 Nov 2023 P: 954.527.1616 F: 954.525.0083 I www.grsconsulting.com Re: City of Atlantic Beach Police Officers' Retirement System (Plan) Supplemental Actuarial Valuation Report Dear Brittany: As requested, we have prepared the enclosed Supplemental Actuarial Valuation Report for the City of Atlantic Beach Police Officers' Retirement System (Plan) which measures the first-year financial impact of the proposed Plan change as summarized below: Scenario 1: Implement an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. The enclosed exhibits show the impact of the above change on the City's contribution requirement, the Unfunded Actuarial Accrued Liability (UAAL), the funded ratio in the first year and the ultimate cost to the City in today's dollars (for this report, the ultimate cost is the change in the Actuarial Present Value of all Projected Benefits). Please note that the increase in the UAAL was amortized over 15 years in this analysis, rather than the 30 - year period which has been used by the Board to amortize plan changes in the past. Since the proposed plan change significantly increases liabilities for current retirees and for benefits attributable to past years of service, the shorter amortization period accelerates funding and limits the transfer of costs to future taxpayers. Summary of Findings The baseline results shown on the enclosed exhibits are from the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. As compared to these baseline results, the proposed benefit change would have the impacts described on the following page. Scenario 1: • The first year required City contribution would increase by $441,618, or 19.49% of covered payroll. • The Funded Ratio would decrease by 16.7%, from 94.9% to 78.2%. • The ultimate cost of the proposed change for current plan participants is measured by the change in the Actuarial Present Value of Projected Benefits, or approximately $4,175,000. This represents the increase in benefit payments expected to be funded by the City in today's dollars. This assumes all of the actuarial assumptions are met each year. One East Broward Boulevard Suite 505 Ft. Lauderdale, Florida 33301-1804 Page 106 of 115 Agenda Item #5.A. 09 Nov 2023 Ms. Brittany Percell October 26, 2023 Page 2 Other Cost Considerations • The enclosed figures measure the increase in the City's contribution requirement for the first year only, and assume that all of the actuarial assumptions are met. Future costs and contribution requirements can be significantly higher or lower depending on the extent to which Plan experience differs from that anticipated by the assumptions, increases or decreases are expected as part of the methodology used to determine contribution requirements, and if there are any future changes in assumptions, plan provisions, or applicable law. • Automatic COLAs which exceed the actual CPI increases can outpace investment returns and add to longer term financial stress for the Plan. • As of October 1, 2022, the Actuarial Value of Assets exceeds the Market Value of Assets by approximately $1,839,000. This difference will be gradually recognized over the next three years. In turn, the employer contribution will increase in the absence of offsetting gains. Additional Disclosures Please refer to the last page of this report for a discussion of risks associated with measuring the accrued liability and actuarially determined contribution. This report was prepared at the request of the Board and is intended for use by the Plan and those designated or approved by the Board. This report may be provided to parties other than the Plan only in its entirety and only with the permission of the Board. This report is intended to describe the financial effect on the Plan of the proposed change under the scenarios detailed on the previous pages. Potential effects on other benefit plans were not considered. No statement in this report is intended to be interpreted as a recommendation in favor of the change, or in opposition to them. Determinations of financial results associated with the benefits described in this report, for purposes other than those identified herein may be significantly different. The calculations in this report are based upon information furnished by the Plan Administrator for the October 1, 2022 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We reviewed this information for internal and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The date of the valuation was October 1, 2022. This means that the results of the supplemental valuation indicate what the October 1, 2022 valuation would have shown if the proposed benefit change had been in effect on that date. Supplemental valuations do not predict the result of future actuarial valuations. Rather, supplemental valuations give an indication of the cost of the benefit change only without comment on the complete end result of future valuations. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based on the assumptions, methods, and plan provisions outlined in the October 1, 2022 Actuarial Valuation Report and this report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions R.5 Page 107 of 115 Agenda Item #5.A. 09 Nov 2023 Ms. Brittany Percell October 26, 2023 Page 3 relevant to this Report are not described, or that conditions have changed since the calculations were made, you should contact the author of the report prior to relying on information in the report. This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, and with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Nicolas Lahaye and Dina Lerner are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuaries are independent of the plan sponsor. We will be pleased to answer any questions pertaining to this report. Sincerely, Gabriel, Roeder, Smith & Company Nicolas Lahaye, FSA, EA, MAAA, FCA Dina Lerner, FSA, EA, MAAA, FCA Consultant & Actuary Consultant & Actuary Enclosures This communication shall not be construed to provide tax advice, legal advice or investment advice. - Page 108 of 115 Plan SUPPLEMENTAL ACTUARIAL VALUATION REPORT City of Atlantic Beach Police Officers' Retirement System Valuation Date October 1, 2022 Date of Report October 26, 2023 Report Requested by Board of Trustees Prepared by Nicolas Lahaye and Dina Lerner Group Valued All active and inactive participants of the Plan as of October 1, 2022. Benefit Provisions Being Considered for Change Scenario 1: Implement an annual Cost of Living Adjustment of 2.00% prospectively for current and future retirees. Participants Affected All current and future active and inactive Participants of the Plan (as described above). Actuarial Assumptions and Methods Same as the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. Some of the key assumptions/methods are: Investment Return Mortality Table Salary increase Cost Method 6.75% per year compounded annually, net of investment expenses Assumptions used by the Florida Retirement System (FRS) for Special Risk members in the FRS actuarial valuation as of July 1, 2021. Age based ranging from 4.5% to 18.5% (including 2.5% price inflation) Entry Age Normal Amortization Period for Any Change in Actuarial Accrued Liability The impact of the proposed plan change on the actuarial accrued liability was amortized as a level percentage of payroll over a 15 -year period. In accordance with the requirements of Ch. 112.64(5)(a), F.S., the payroll growth rate used to amortize the unfunded actuarial accrued liabilities was 3.35% (the actual payroll growth rate over the last 10 years). Without the Ch. 112.64(5)(a), F.S. limitation the payroll growth rate would have been 3.5%. Agenda Item #5.A. 09 Nov 2023 City of Atlantic Beach Police Officers' Retirement System 4 Page 109 of 115 Agenda Item #5.A. 09 Nov 2023 Summary of Data Used in Report See attached page entitled "Participant Data"; based on the data used for the October 1, 2022 Actuarial Valuation Report dated May 17, 2023. Actuarial Impact of Proposed Changes See attached page(s). Special Risks Involved That the Plan Has Not Been Exposed to Previously None; please refer to the last page of this report for a discussion of risks associated with measuring the accrued liability and actuarially determined contribution. Other Cost Considerations • The enclosed figures measure the increase in the City's contribution requirement for the first year only, and assume that all of the actuarial assumptions are met. Future costs and contribution requirements can be significantly higher or lower depending on the extent to which Plan experience differs from that anticipated by the assumptions, increases or decreases are expected as part of the methodology used to determine contribution requirements, and if there are any future changes in assumptions, plan provisions, or applicable law. • Automatic COLAs which exceed the actual CPI increases can outpace investment returns and add to longer term financial stress for the Plan. • As of October 1, 2022, the Actuarial Value of Assets exceeds the Market Value of Assets by approximately $1,839,000. This difference will be gradually recognized over the next three years. In turn, the employer contribution will increase in the absence of offsetting gains. City of Atlantic Beach Police Officers' Retirement System 5 Page 110 of 115 Agenda Item #5.A. 09 Nov 2023 ACTUARIALLY DETERMINED EMPLOYER CONTRIBUTION (ADEC) A. Valuation Date October 1, 2022 October 1, 2022 No COLA 2% Annual COLA Baseline Scenario 1 B. ADECtoBePaidDuring Fiscal Year Ending 9/30/2024 9/30/2024 C. Assumed Date(s) of Employer Contribution Monthly Monthly D. Annual Payment to Amortize Unfunded Actuarial Liability (UAL) if Paid on the Valuation Date $ 103,565 $ 404,608 E. Employer Normal Cost (including Administrative Expenses) if Paid on the Valuation Date 303,073 401,131 F. ADEC if Paid on the Valuation Date: D + E 406,638 805,739 G. ADEC Adjusted for Frequency of Payments and Interest to Required Time of Contribution 449,957 891,575 H. Covered Payroll for Contribution Year $ 2,265,652 $ 2,265,652 I. ADEC as % of Covered Payroll in Contribution Year: G - H 19.86 % 39.35 % J. Estimated Credit for State Revenue in Contribution Year* 144,821 144,821 K. Required Employer Contribution (REC) in Contribution Year: G -J 305,136 746,754 L. REC as % of Covered Payroll in Contribution Year: K + H 13.47 % 32.96 % M. Increase/(Decrease) in REC in Contribution Year N/A 441,618 N. Increase/(Decrease) in REC as a % of Covered Payroll in Contribution Year N/A 19.49 % *Chapter 185 Florida Statutes. The City contribution amount may need to be increased if the amount received under the provisions of Chapter 185, Florida Statutes, is not sufficient to meet the total employer contribution requirement. City of Atlantic Beach Police Officers' Retirement System 6 Page 111 of 115 A. Valuation Date ACTUARIAL VALUE OF BENEFITS AND ASSETS October 1, 2022 October 1, 2022 No COLA 2% Annual COLA Baseline Scenario 1 B. Actuarial Present Value of All Projected Benefits for 1. Active Members a. Service Retirement Benefits $ 11,463,689 $ 14,159,968 b. Vesting Benefits 482,195 599,299 c. Disability Benefits 188,877 230,190 d. Preretirement Death Benefits 64,983 82,745 e. Return of Member Contributions 82,151 82,151 f. Tota I 12,281,895 15,154,353 2. Inactive Members a. Service Retirees & Beneficiaries 5,902,950 6,964,756 b. Disability Retirees 642,511 786,292 c. Terminated Vested Members 460,214 556,933 d. Tota I 7,005,675 8,307,981 3. DROP Balances 129,387 129,387 4. Total for All Members 19,416,957 23,591,721 C. Change in Actuarial Present Value of All Projected Benefits N/A 4,174,764 D. Actuarial Accrued (Past Service) Liability under Entry Age Normal* 17,049,775 20,685,216 E. Plan Assets* 1. Market Value 14,344,281 14,344,281 2. Actuarial Value 16,182,954 16,182,954 F. Unfunded Actuarial Accrued Liability (UAAL) 866,821 4,502,262 G. Increase/(Decrease) in UAAL N/A 3,635,441 H. Actuarial Present Value of Projected Covered Payroll 12,410,655 12,410,655 I. Actuarial Present Value of Projected Member Contributions 992,852 992,852 J. Funded Ratio (AVA basis): E2/D 94.9 % 78.2 % K. Increase/(Decrease) in Funded Ratio N/A (16.7) % * Includes DROP balances. GRS Agenda Item #5.A. 09 Nov 2023 City of Atlantic Beach Police Officers' Retirement System 7 Page 112 of 115 Agenda Item #5.A. 09 Nov 2023 CALCULATION OF EMPLOYER NORMAL COST A. Valuation Date October 1, 2022 October 1, 2022 No COLA 2% Annual COLA Baseline Scenario 1 B. Normal Cost for 1. Service Retirement Benefits $ 320,853 $ 399,810 2. Vesting Benefits 57,822 71,106 3. Disability Benefits 20,380 25,015 4. Preretirement Death Benefits 4,049 5,231 5. Return of Member Contributions 23,583 23,583 6. Total for Future Benefits 426,687 524,745 7. Assumed Amount for Admin. Expenses 41,745 41,745 8. Total Normal Cost 468,432 566,490 As % of Covered Payroll 21.77 % 26.33 C. Expected Member Contribution As % of Covered Payroll D. Net Employer Normal Cost: B8 - C As % of Covered Payroll E. Increase in Net Employer Normal Cost As % of Covered Payroll $ 165,359 $ 165,359 7.69 % 7.69 % $ 303,073 $ 401,131 14.09 % 18.64 % N/A $ 98,058 N/A 4.55 % City of Atlantic Beach Police Officers' Retirement System 8 Page 113 of 115 1 PARTICIPANT DATA October 1, 2022 October 1, 2022 Baseline Scenario 1 ACTIVE MEMBERS Number 26 26 Covered Annual Payroll $ 2,151,705 $ 2,151,705 Average Annual Payroll $ 82,758 $ 82,758 Average Age 43.5 43.5 Average Past Service 11.3 11.3 Average Age at Hire 32.2 32.2 RETIREES, BENEFICIARIES & DROP Number 18 18 Current Annual Benefits $ 595,460 $ 595,460 Average Annual Benefit $ 33,081 $ 33,081 Average Age 68.7 68.7 DISABILITY RETIREES Number 3 3 Current Annual Benefits $ 59,673 $ 59,673 Average Annual Benefit $ 19,891 $ 19,891 Average Age 64.6 64.6 TERMINATED VESTED MEMBERS Number 4 4 Annual Benefits $ 67,285 $ 67,285 Average Annual Benefit $ 16,821 $ 16,821 Average Age 50.5 50.5 I Agenda Item #5.A. 09 Nov 2023 City of Atlantic Beach Police Officers' Retirement System 9 Page 114 of 115 Agenda Item #5.A. 09 Nov 2023 Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution The determination of the accrued liability and the actuarially determined contribution requires the use of assumptions regarding future economic and demographic experience. Risk measures are intended to aid in the understanding of the effects of future experience differing from the assumptions used in the course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in the accrued liability and the actuarially determined contribution that result from the differences between actual experience and the actuarial assumptions. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions due to changing conditions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period, or additional cost or contribution requirements based on the Plan's funded status); and changes in Plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such future measurements. Examples of risk that may reasonably be anticipated to significantly affect the Plan's future financial condition include: 1. Investment risk — actual investment returns may differ from the either assumed or forecasted returns; 2. Contribution risk — actual contributions may differ from expected future contributions. For example, actual contributions may not be made in accordance with the Plan's funding policy or material changes may occur in the anticipated number of covered employees, covered payroll, or other relevant contribution base; 3. Salary and Payroll risk—actual salaries and total payroll may differ from expected, resulting in actual future accrued liability and contributions differing from expected; 4. Longevity risk — members may live longer or shorter than expected and receive pensions for a period of time other than assumed; 5. Other demographic risks — members may terminate, retire or become disabled at times or with benefits other than assumed resulting in actual future accrued liability and contributions differing from expected. The effects of certain trends in experience can generally be anticipated. For example, if the investment return is less (or more) than the assumed rate, the cost of the Plan can be expected to increase (or decrease). Likewise, if longevity is improving (or worsening), increases (or decreases) in cost can be anticipated. The computed contribution amounts may be considered as a minimum contribution that complies with the pension Board's funding policy and the State statutes. The timely receipt of the actuarially determined contributions is critical to support the financial health of the Plan. Users of this report should be aware that contributions made at the actuarially determined rate do not necessarily guarantee benefit security. Risk Assessment Risk assessment was outside the scope of this report. Risk assessment may include scenario tests, sensitivity tests, stochastic modeling, stress tests, and a comparison of the present value of accrued benefits at low-risk discount rates with the actuarial accrued liability. We are prepared to perform such assessment to aid in the decision-making process. City of Atlantic Beach Police Officers' Retirement System 10 Page 115 of 115