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03-16-2021 Agenda
On iY �BASTIAjv HOME OF PELICAN ISLAND PUBLIC NOTICE — POLICE PENSION BOARD MEETING March 16, 2021 THE POLICE PENSION BOARD WILL HOLD A REGULAR QUARTER MEETING TUESDAY, MARCH 16, 2021AT 10:00 A.M. A QUOREM OF THE BOARD MEMBERS MUST BE IN ATTENDANCE. PARTICIPANTS MAY ATTEND USING ZOOM. THE PUBLIC CAN ACCESS THE MEETING VIRTUALLY VIA ZOOM BY FOLLOWING THE DIRECTIONS SHOWN AT THE BOTTOM OF THIS AGENDA. HOWEVER THE PUBLIC IS ADVISED TO CHECK THE CITY WEBSITE FOR UP-TO-DATE INFORMATION ON ANY CHANGES TO THE MANNER IN WHICH THE MEETING WILL BE HELD AND THE LOCATION. AGENDA A. CALL TO ORDER Acting Chairperson B. ROLL CALL Acting Chairperson C. VOTE TO EXCUSE ABSENT BOARD MEMBER(S) Acting Chairperson D. APPROVAL OF MINUTES: 1. December 15, 2021 Regular Quarterly Meeting Acting Chairperson E. OLD BUSINESS 1. Approval of Payments: Ken Killgore, Plan Administrator a. Highland Capital — October to December — Value, Growth, ADR $ 7,938.54 b. Highland Capital — October to December —Fixed Income $ 3,408.30 C. Boston Partners — October to December $ 2,448.37 d. Fiera Capital — October to December $ 2,969.75 e. Renaissance — October to December $ 2,445.13 f. Brookfield Public Securities Group — October to December $ 537.98 g. Morgan Stanley Global Banking Operations - July to December $ 6,750.00 h. Foster & Foster — Actuarial Report, Benefit Calculations, Filings $14,415.00 i. Klausner, Kaufrnan, Jensen & Levinson — Dec./Jan./Feb. $ 7,582.50 j. City of Sebastian — Janet Graham 12/15/2020 Meeting $ 162.00 k. City of Sebastian — January to March $ 6,000.00 1. Salem Trust — October to December $ 7,470.00 2. Presentation of Study on the Anticipated Long-term Rate of Return Douglas Lozen, Foster & Foster F. PUBLIC INPUT Acting Chairperson 1. The Public can submit questions and or comments to the Plan Administrator's email at kkilleorencitvofsebastian.or2. Entails will be read aloud during this time. G. NEW BUSINESS 1. Report from Investment Monitor Scott Owens, Morgan Stanley 2. Report from Investment Manager — Highland Capital Todd Wishnia, Highland Capital 3. Election Process to Replace the Police Officer Board Member Ken Killgore, Plan Administrator and Bonni S. Jensen, Board Attorney H. LEGAL UPDATES — Klausner, Kaufman, Jensen & Levinson Bonni S. Jensen, Board Attorney I. BOARD MEMBER REPORTS AND COMMENTS Acting Chairperson J. PLAN ADMINISTRATOR REPORTS AND COMMENTS Ken Killgore, Plan Administrator 1. Annual State Pension Report was filed. 2. Ordinance 0-21-02 on IRS Plan Amendments was approved by City Council 3. Budget Report, Calendar of Board Activities and Other Administrative Matters K. NEXT SCHEDULED QUARTERLY MEETING: June 15, 2021 Acting Chairperson ADJOURN Please note: In accordance with Florida Statue 286.0105: any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at kkilleore(n),citvofsebastian.ore or telephone 772-388-8205. Please click the link below to join the meeting: httDs://us02web.zoom.us/i/82849711036?owd=Ml N6eWdKeEll UFohUm9WaUZLROZXZzO9 Meeting ID: 828 4971 1036 Passcode: 829497 One tap mobile +19294362866„82849711036#,,,,"829497# US (New York) +13017158592„82849711036#,,,,"829497# US (Washington DC) Dial by your location +1 929 436 2866 US (New York) +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) Meeting ID: 828 4971 1036 Passcode: 829497 Find your local number: httos://us02web.zoom.us/u/kuMeTNw9r \ P.Vt I %Iitq IIP 11111It, I l bon ni(a),robertdklausner.com February 19, 2021 Florida Clients Re: Klausner & Kaufman, P.A. d/b/a Klausner, Kaufman, Jensen & Levinson, a partnership of professional service corporations Registration for E-Verify Dear Clients: Please accept this letter attesting to our registration with the Federal E-Verify program. This system will be used to verify the work authorization status of any person hired after January 1, 2021. If you need any additional information, please contact me. /Sincerely yours, i� Bonni S. Jensen For the Firm 00179703.WPD;1 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916-1202 • FAX: (954) 916-1232 www.klausnerkaufman.com .......... A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS: ATTORNEYS ATLAW MEMORANDUM TO: Board of Trustees FROM: Bonni S. Jensen Fund Legal Counsel DATE: February 2021 SUBJECT: IRS Mileage Rate for 2021 This is to inform you that the Internal Revenue Service ("IRS") released its updated Standard Mileage Rate for 2021. The new rate is 56 cents per mile for miles driven after January 1, 2021. This is down 1.5 cent from last year. As you know from previous years, the mileage rate can fluctuate within the same year. We will do our best to keep you and the administrator informed. You can find the current rate at the link below. https://www. i rs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021. If you have any questions, please do not hesitate to contact us. BSJ/dze Enclosure E-Copy: Administrator 00180241.WPD;1 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916-1202 - FAX: (954) 916-1232 www.klausnerkaufman.com MEMORANDUM TO: All Pension Plans FROM: KLAUSNER, KAUFMAN, JENSEN & LEVINSON RE: Best Practices for Locating Missing or Nonresponsive Participants and Beneficiaries DATE: February 2021 In 2017, the IRS released guidelines on some ways to locate missing participants who are due a benefit or a refund of contributions from your Fund. The Department of Labor (DOL) has recently gathered some "best practices" which supplements the original guidance from the IRS. While the Department of Labor does not govern your Fund, we thought that these best practices would be helpful. Overall, the DOL has found that establishing uniform policies and procedures is a proven method to minimize and mitigate the problem of missing or nonresponsive participants. Documenting what steps have been taken is necessary for compliance with the safe harbor. If a retirement plan has not completed and documented the steps they have taken, it may be challenged for violation of the required minimum distribution (RMD) standards for failing to commence or make a distribution payment to a participant or beneficiary to whom payment is due. Please contact our office if you need any assistance in the search or documentation process. All Pension Plans Memo Required Minimum Distributions- Best Practices for Locating Missing or Nonresponsive Participants and Beneficiaries Page 2 1. MAINTAINING ACCURATE CENSUS INFORMATION • Contacting participants, both current and retired, and beneficiaries on a periodic basis to confirm or update their contact information, including cell phone numbers and email addresses. Consider requesting social media contact information and next of kin/emergency contact information. • Including contact information change requests in plan communications along with a reminder to advise the retirement plan of any changes in contact information. • Following up on undeliverable mail/email and uncashed checks. • Provide an online platform for members to update contact information and provide prompts to confirm contact information upon login. • In the case of a change in plan administrator, addressing the transfer of appropriate plan information and relevant employment records (e.g. next of kin information and emergency contacts). 2. IMPLEMENTING EFFECTIVE COMMUNICATION STRATEGIES • Using plain language and offering non-English language assistance when appropriate. • Stating upfront and prominently what the communication is about — e.g., eligibility to start payment of pension benefits, a request for updated contact information, etc. • Clearly marking envelopes and correspondence with the retirement plan or sponsor name and indicating that the communication relates to pension benefit rights. All Pension Plans Memo Required Minimum Distributions- Best Practices for Locating Missing or Nonresponsive Participants and Beneficiaries Page 3 3. MISSING PARTICIPANT SEARCHES • Checking related retirement plan and employer records for participant, beneficiary and next of kin/emergency contact information. While the retirement plan may not possess current contact information, it is possible that the employer's payroll records or the records maintained by another of the employer's plans, such as a group health plan, may have more up -to date information. If there are privacy concerns, the person engaged in the search can request that the employer or other plan fiduciary forward a letter from the plan to the missing participant or beneficiary. • Checking with designated retirement plan beneficiaries (e.g., spouse, children) and the employee's emergency contacts (in the employer's records) for updated contact information. • Using free online search engines, public record databases (such as those for licenses, mortgages and real estate taxes), obituaries, and social media to locate individuals. • Using a commercial locator service, a credit-reporting agency, or a proprietary internet search tool to locate individuals. • Attempting contact via United States Postal Service (USPS) certified mail, or private delivery service with similar tracking features if less expensive than USPS certified mail, to the last known mailing address. • Attempting contact via other available means such as email addresses, telephone and text numbers, and social media. All Pension Plans Memo Required Minimum Distributions- Best Practices for Locating Missing or Nonresponsive Participants and Beneficiaries Page 4 • If participants are nonresponsive over a period of time, using death searches (e.g., Social Security Death Index) as a check and, to the extent such search confirms a participant's death, redirecting communications to beneficiaries. • Reaching out to the colleagues of missing participants by, for example, contacting employees who worked closely with the participant or by publishing a list of "missing" participants on the employer's intranet, in email notices to existing employees, or in communications with other retirees who are already receiving benefits. Similarly, for unionized employees, some have reached out to the union's local offices and through union member communications to find missing retirees. • Registering missing participants on public and private pension registries with privacy and cyber security protections (e.g., National Registry of Unclaimed Retirement Benefits), and publicizing the registry through emails, newsletters, and other communications to existing employees, union members, and retirees. • Searching regularly using some or all of the above steps. 4. DOCUMENTING PROCEDURES AND ACTIONS • Documenting key decisions and the steps and actions taken to implement the policies. • For retirement plans that use third party administrators or record keepers to maintain plan records and handle participant communications, ensuring the administrator or record keeper is performing agreed upon services, and working with the administrator or record keeper to identify and correct shortcomings in the plan's recordkeeping and communication practices, including establishing procedures for obtaining relevant information held by the employer. Name of Pension Fund Address Dear Service Provider: Effective January 1, 2021, Florida Statute §448.095 became effective. This new law requires all contractors dealing with public entities such as the Board of Trustees to register with and use the Department of Homeland Security's E-Verify system to assure that newly hired employees of your company are U.S. citizens or otherwise legally permitted to perform services in the State of Florida. The law will apply to all new contracts and all employees hired on or after January 1, 2021. After you have completed the registration process, please notify the Fund of your compliance. Attached to this letter is additional information on how to register including a memorandum from the Fund's counsel. Please feel free to contact us with any questions. Sincerely, (Plan Administrator or Chairperson) IrU G 00's v A To: All Florida Pension Clients From: Klausner Kaufman Jensen & Levinson Subject: New Florida Law Requirement §448.095 - Registration and Use of E-Verify Date: January 8, 2021 Effective January 1, 2021, a new law went into effect (see attached copy of Florida Statutes §448.095) with two requirements which are applicable for public retirement plans: • Public Employers are required to register with and use the free E-Verify system to verify the work authorization status of all newly hired employees; and • Contracts entered into by Public Employers must contain a provision requiring the parties to use the E-Verify system. Pursuant to the definition of "Public Employer" in Section 448.095(1)(i), the new law applies to the Pension Fund because it is an entity within the State (or municipal) government that enters into contracts with persons or entities for services in exchange for remuneration. Therefore, all new contracts with Service Providers (referred to in the law as "Contractors") should contain a sentence that the Contractor will register with and use the E-Verify system to verify the work authorization status of all employees hired after 1/l/2021 and, if applicable require any Subcontractor to do the same. Additionally, the Pension Fund itself will need to register with E-Verify. Attached is the E-Verify enrollment checklist. Here is a link to enroll on the E-Verify website: htti)s://www.e-verifv.aov/em-plovers/enrollina-in-e-verifv Service Providers should be notified of the requirements of the new law by providing a copy of this memo. A sample letter is attached. This memo should be placed on the next available agenda for discussion by the Board. 1 /6/2021 Enrollment Checklist E-Verify and myE-Verify are Temporarily Unavailable. For more information read our news release (/node/5753).. ENROLLMENT CHECKLIST Enrolling in E Verify is easy. This checklist helps you prepare. Before you enroll, you must decide: • Who will electronically sign the E-Verifv memorandum of understanding _(MOU)_(PDF, 92.83 KB), .(/sites/default/filesleverify/memos/MOUforEVerifyEmptoyer.pdf). on behalf of your company? • Which hiring sites will participate in E-Verify? • If you are a federal contractor with the FARE Verify clause, which employees will you verify? • Which company location(s) will access E-Verify? • Who in your company will have access to E-Verify? • Who in your company should be a program administrator? • Review the Ustem requirements f emp�ers/enrolling-in-e-verifyi/stem-requirements) To enroll, you will need to know: • Contact information for your company's E-Verify memorandum of understanding (MOU) signatory (name, phone number, fax number and e-mail address) • Company name • Doing business as' name (optional) • Data Universal Numbering System (DUNS) number (optional) • The physical address of the location from which your company will access E-Verify (including county) • Company mailing address (if different from the physical address) • Employer identification number (also called a Federal Tax ID Number) • Total number of employees for all of your company's hiring sites that will participate in E-Verify (you'll choose from a range of numbers) • Parent organization (optional) • Administrator name (E-Verify corporate account) (optional) • The first three digits of your company's primary North American Industry Classification System (NAICS) code (if you don't know it, we'll help you find it when you enroll) • The number of hiring sites that will participate in E-Verify in each state For all registered users, you must be ready to provide: • Name • Phone Number https://www.e-verify.gov/employers/enrolling-in-e-verify/enrollment-checklist 1/2 1/6/2021 Enrollment Checklist • Fax Number (optional) • Email address ENROLLING IN E-Verify IS EASY! WANT TO LEARN MORE? E-Verify ENROLLMENT (/employers/enrolling-in-e-verify) Last Updated Date: 04/10/2018 httpsJ/www.e-verify.gov/employers/enrolling-in-e-verify/enrollment-checklist 2/2 ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossec 2020664er 1 2 An act relating to the verification of employment 3 eligibility; amending s. 288.061, F.S.; prohibiting 4 the approval of certain economic development incentive 5 applications after a specified date; requiring an 6 awardee to repay certain moneys within a specified 7 timeframe under certain circumstances; creating s. 8 448.095, F.S.; providing definitions; requiring public 9 employers, contractors, and subcontractors to register 10 with and use the E-Verify system; prohibiting such 11 entities from entering into a contract unless each 12 party to the contract registers with and uses the E- 13 Verify system; requiring a subcontractor to provide a 14 contractor with a certain affidavit; requiring a 15 contractor to maintain a copy of such affidavit; 16 authorizing the termination of a contract under 17 certain conditions; providing that such termination is 18 not a breach of contract; authorizing a challenge to 19 such termination; providing certain liability for 20 contractors if a contract is terminated; requiring 21 private employers to verify the employment eligibility 22 of newly hired employees beginning on a specified 23 date; providing an exception; providing acceptable 24 methods for verifying employment eligibility; 25 requiring a private employer to maintain certain 26 documentation for a specified time period; providing 27 specified immunity and nonliability for private 28 employers; creating a rebuttable presumption for 29 private employers; requiring private employers to Page 1 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 30 provide copies of certain documentation, upon request, 31 to specified persons and entities for certain 32 purposes; prohibiting specified persons and entities 33 from making a determination as to whether a person is 34 an unauthorized alien; requiring a specified affidavit 35 from certain private employers; providing for the 36 suspension or permanent revocation of certain licenses 37 under certain circumstances; providing construction; 38 providing an effective date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Subsection (6) of section 288.061, Florida 43 Statutes, is renumbered as subsection (7), and a new subsection 44 (6) is added to that section to read: 45 288.061 Economic development incentive application 46 process.- 47 (6) Beginning July 1, 2020, the executive director may not 48 approve an economic development incentive application unless the 49 application includes proof to the department that the applicant 50 business is registered with and uses the E-Verify system, as 51 defined in s. 448.095, to verify the work authorization status 52 of all newly hired employees. If the department determines that 53 an awardee is not complying with this subsection, the department 54 must notify the awardee by certified mail of the department's 55 determination of noncompliance and the awardee's right to appeal 56 the determination. Upon a final determination of noncompliance, 57 the awardee must repay all moneys received as an economic 58 development incentive to the department within 30 days after the Page 2 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 59 final determination. 60 Section 2. Section 448.095, Florida Statutes, is created to 61 read: 62 448.095 Employment eligibility.- 63 (1) DEFINITIONS. —As used in this section, the term: 64 (a) "Agency" means any agency, department, board, or 65 commission of this state or a county or municipality in this 66 state that issues a license to operate a business in this state. 67 (b) "Contractor" means a person or entity that has entered 68 or is attempting to enter into a contract with a public employer 69 to provide labor, supplies, or services to such employer in 70 exchange for salary, wages, or other remuneration. 71 (c) "Department" means the Department of Economic 72 Opportunity. 73 (d) "Employee" means a person filling an authorized and 74 established position who performs labor or services for a public 75 or private employer in exchange for salary, wages, or other 76 remuneration. 77 (e) "E-Verify system" means an Internet -based system 78 operated by the United States Department of Homeland Security 79 that allows participating employers to electronically verify the 80 employment eligibility of newly hired employees. 81 (f) "Legal alien" means a person who is or was lawfully 82 present or permanently residing legally in the United States and 83 allowed to work at the time of employment and remains so 84 throughout the duration of that employment. 85 (g) "License" means a franchise, a permit, a certificate, 86 an approval, a registration, a charter, or any similar form of 87 authorization required by state law and issued by an agency for Page 3 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 88 the purpose of operating a business in this state. The 89 term includes, but is not limited to: 90 1. An article of incorporation. 91 2. A certificate of partnership, a partnership 92 registration, or an article of organization. 93 3. A grant of authority issued pursuant to state or federal 94 law. 95 4. A transaction privilege tax license. 96 (h) "Private employer" means a person or entity that 97 transacts business in this state, has a license issued by an 98 agency, and employs persons to perform labor or services in this 99 state in exchange for salary, wages, or other remuneration. The 100 term does not include: 101 1. A public employer; 102 2. The occupant or owner of a private residence who hires: 103 a. Casual labor, as defined in s. 443.036, to be performed 104 entirely within the private residence; or 105 b. A licensed independent contractor, as defined in federal 106 laws or regulations, to perform a specified portion of labor or 107 services; or 108 3. An employee leasing company licensed under part XI of 109 chapter 468 that enters into a written agreement or 110 understanding with a client company which places the primary 111 obligation for compliance with this section upon the client 112 company. In the absence of a written agreement or understanding, 113 the employee leasing company is responsible for compliance with 114 this section. Such employee leasing company shall, at all times, 115 remain an employer as otherwise defined in federal laws or 116 regulations. Page 4 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 117 (i) "Public employer" means an entity within state, 118 regional, county, local, or municipal government, whether 119 executive, judicial, or legislative, or any public school, 120 community college, or state university that employs persons who 121 perform labor or services for that employer in exchange for 122 salary, wages, or other remuneration or that enters or attempts 123 to enter into a contract with a contractor. 124 (j) "Subcontractor" means a person or entity that 125 provides labor, supplies, or services to or for a contractor 126 or another subcontractor in exchange for salary, wages, or 127 other remuneration. 128 (k) "Unauthorized alien" means a person who is not 129 authorized under federal law to be employed in the United 130 States, as described in 8 U.S.C. s. 1324a(h)(3). The term shall 131 be interpreted consistently with that section and any 132 applicable federal rules or regulations. 133 (2) PUBLIC EMPLOYERS, CONTRACTORS, AND SUBCONTRACTORS.- 134 (a) Beginning January 1, 2021, every public employer, 135 contractor, and subcontractor shall register with and use the 136 E-Verify system to verify the work authorization status of all 137 newly hired employees. A public employer, contractor, or 138 subcontractor may not enter into a contract unless each party 139 to the contract registers with and uses the E-Verify system. 140 (b)l. If a contractor enters into a contract with a 141 subcontractor, the subcontractor must provide the contractor 142 with an affidavit stating that the subcontractor does not 143 employ, contract with, or subcontract with an unauthorized 144 alien. 145 2. The contractor shall maintain a copy of such affidavit Page 5 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 146 for the duration of the contract. 147 (c)l. A public employer, contractor, or subcontractor who 148 has a good faith belief that a person or entity with which it is 149 contracting has knowingly violated s. 448.09(1) shall terminate 150 the contract with the person or entity. 151 2. A public employer that has a good faith belief that a 152 subcontractor knowingly violated this subsection, but the 153 contractor otherwise complied with this subsection, shall 154 promptly notify the contractor and order the contractor to 155 immediately terminate the contract with the subcontractor. 156 3. A contract terminated under subparagraph 1. or 157 subparagraph 2. is not a breach of contract and may not be 158 considered as such. 159 (d) A public employer, contractor, or subcontractor may 160 file an action with a circuit or county court to challenge a 161 termination under paragraph (c) no later than 20 calendar days 162 after the date on which the contract was terminated. 163 (e) If a public employer terminates a contract with a 164 contractor under paragraph (c), the contractor may not be 165 awarded a public contract for at least 1 year after the date on 166 which the contract was terminated. 167 (f) A contractor is liable for any additional costs 168 incurred by a public employer as a result of the termination of 169 a contract. 170 (3) PRIVATE EMPLOYERS.- 171 (a) Beginning January 1, 2021, a private employer shall, 172 after making an offer of employment which has been accepted by a 173 person, verify such person's employment eligibility. A private 174 employer is not required to verify the employment eligibility of Page 6 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 175 a continuing employee hired before January 1, 2021. However, if a 176 person is a contract employee retained by a private employer, the 177 private employer must verify the employee's employment eligibility 178 upon the renewal or extension of his or her 179 contract. 180 (b) A private employer shall verify a person's employment 181 eligibility by: 182 1. Using the E-Verify system; or 183 2. Requiring the person to provide the same documentation 184 that is required by the United States Citizenship and 185 Immigration Services on its Employment Eligibility Verification 186 form (Form I-9) . 187 188 The private employer must retain a copy of the documentation 189 Provided under this subparagraph for at least 3 years after the 190 person's initial date of employment. 191 (c) A private employer that complies with this subsection 192 may not be held civilly or criminally liable under state law for 193 hiring, continuing to employ, or refusing to hire an 194 unauthorized alien if the information obtained under paragraph 195 (b) indicates that the person's work authorization status was 196 not that of an unauthorized alien. 197 (d) For purposes of this subsection, compliance with 198 paragraph (b) creates a rebuttable presumption that a private 199 employer did not knowingly employ an unauthorized alien in 200 violation of s. 448.09(1). 201 (e) For the purpose of enforcement of this section, the 202 following persons or entities may request, and a private 203 employer must provide, copies of any documentation relied upon Page 7 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 204 by the private employer for the verification of a person's 205 employment eligibility, including, but not limited to, any 206 documentation required under paragraph (b): 207 1. The Department of Law Enforcement. 208 2. The Attorney General. 209 3. The state attorney. 210 4. The statewide prosecutor. 211 212 A person or entity that makes a request under this paragraph 213 must rely upon the federal government to verify a person's 214 employment eligibility and may not independently make a final 215 determination as to whether a person is an unauthorized alien. 216 (f) If a private employer does not comply with paragraph 217 (b), the department shall require the private employer to 218 Provide an affidavit to the department stating that the private 219 employer will comply with paragraph (b), the private employer 220 has terminated the employment of all unauthorized aliens in this 221 state, and the employer will not intentionally or knowingly 222 employ an unauthorized alien in this state. If the private 223 employer does not provide the required affidavit within 30 days 224 after the department's request, the appropriate licensing agency 225 shall suspend all applicable licenses held by the private 226 employer until the private employer provides the department with 227 the required affidavit. For purposes of this paragraph, the 228 licenses that are subject to suspension under this paragraph are 229 all licenses that are held by the private employer specific to 230 the business location where the unauthorized alien performed 231 work. If the private employer does not hold a license specific 232 to the business location where the unauthorized alien performed Page 8 of 9 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2020 Legislature CS for CS for CS for SB 664, 2nd Engrossed 2020664er 233 work, but a license is necessary to operate the private 234 employer's business in general, the licenses that are subject to 235 suspension under this paragraph are all licenses that are held by 236 the private employer at the private employer's primary place of 237 business. 238 (g) For any private employer found to have violated 239 paragraph (f) three times within any 36 month period, the 240 appropriate licensing agency shall permanently revoke all 241 licenses that are held by the private employer specific to the 242 business location where the unauthorized alien performed work. 243 If the private employer does not hold a license specific to the 244 business location where the unauthorized alien performed work, 245 but a license is necessary to operate the private employer's 246 business in general, the appropriate licensing agency shall 247 permanently revoke all licenses that are held by the private 248 employer at the private employer's primary place of business. 249 (4) CONSTRUCTION. —This section shall be enforced without 250 regard to race, color, or national origin and shall be construed 251 in a manner so as to be fully consistent with any applicable 252 federal laws or regulations. 253 Section 3. This act shall take effect July 1, 2020. Page 9 of 9 CODING: Words stricken are deletions; words underlined are additions. FOSTER & FOSTER March 10, 2021 Board of Trustees City of Sebastian Police Officers' Retirement System Re: City of Sebastian Police Officers' Retirement System Actuarial Analysis of Investment Return Dear Board: As requested, we have performed a special actuarial analysis to determine the impact on the Plan's liabilities and funding requirements associated with decreasing the investment return assumption to 7.00%. The impact on the City's funding requirements, determined as of October 1, 2020 (using results of the October 1, 2020 Actuarial Valuation), is shown on the attached schedule. Please note that all assumptions and methods used are the same as in the October 1, 2020 valuation except for the reduction in the investment return assumption. The increase in the Unfunded Actuarial Accrued Liability is amortized as a level percentage of pay (using the current 1.51 % payroll growth assumption) over 15 years. Future actuarial measurements may differ significantly from the current measurements presented in this report for a variety of reasons including: changes in applicable laws, changes in plan provisions, changes in assumptions, or plan experience differing from expectations. Due to the limited scope of the analysis, we did not perform an analysis of the potential range of such future measurements. The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. In addition to this document (with attachment), all the sections of the October 1, 2020 actuarial valuation report are considered an integral part of the actuarial opinion. If you have any questions, please let me know. Sincerely, tt— Dougl s H. Lo n, E , MAAA Enclosure 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 • (239) 433-5500 • Fax (239) 481-0634 • www.foster-foster.com City of Sebastian Police Officers' Retirement System Actuarial Analysis of Proposed Assumption Change Determined as of October 1, 2020 GASB 67 Net Pension Assumption Liability (est.) Funded Ratio Z 7.20% Investment Return 4,056,050 81.7% 7.00% Investment Return 4,579,422 79.8% Annual City Contribution (est.) % Payroll Dollars ' Increase/(Decrease) 24.7% 633,000 n/a 27.4% 703,000 70,000 ' Estimated City dollar requirement based on payroll under the assumed retirement age. z Actuarial Asset Value divided by Entry Age Normal Actuarial Accrued Liability. Foster & Foster, Inc. 3/10/2021 City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2020 Three Years Five Years Seven Years Quarter Year to Date 12 Months (annualized) (annualized) (annualized) S&P 500 Index 12.15 18.40 18.40 14.18 15.22 12.92 Dow Jones Industrial Average 10.73 9.72 9.72 9.90 14.65 11.81 Russell 3000 Index 14.68 20.89 20.89 14.49 15.43 12.76 Russell 3000 Value Index 17.22 2.88 2.88 5.89 9.74 8.05 Russell 3000 Growth Index 12.41 38.26 38.26 22.50 20.67 17.12 Russell 1000 Index 13.69 20.96 20.96 14.82 15.60 13.04 Russell 1000 Value Index 16.25 2.80 2.80 6.07 9.74 8.20 Russell 1000 Growth Index 11.39 38.49 38.49 22.99 21.00 17.53 Russell Midcap Index 19.91 17.10 17.10 11.61 13.40 10.96 Russell Midcap Value Index 20.43 4.96 4.96 5.37 9.73 8.22 Russell Midcap Growth Index 19.02 35.59 35.59 20.50 18.66 14.79 Russell 2000 Index 31.37 19.96 19.96 10.25 13.26 9.34 Russell 2000 Value Index 33.36 4.64 4.64 3.72 9.65 6.25 Russell 2000 Growth Index 29.61 34.63 34.63 16.19 16.36 12.08 Energy 27.77 Financials 23.22 Industrials 15.68 Materials 14.47 Communication Services 13.82 Technology 11.81 Consumer Discretionary 8.04 Health Care 8.03 Utilities 6.54 Consumer Staples 6.35 Real Estate 4.94 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 2 Graystone Consuhings" City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2020 ReLyional and Other Multi -Country Indices MSCI EAFE MSCI Europe MSCI Far East MSCI Pacific ex. Japan MSCI The World MSCI World ex. U.S. National Indices MSCI Hong Kong MSCI Ireland MSCI Japan MSCI Singapore ReLyional and Other Multi -Country Indices MSCI EM National Indices MSCI China MSCI Malaysia MSCI Taiwan MSCI Thailand U.S. Dollar Quarter Year to 12 Months y ears Date Years Local Currency Quarter Year Date 12 Months y ars YeS 16.05 7.81 7.81 4.28 7.45 11.40 1.28 1.28 3.48 6.32 15.61 5.38 5.38 3.55 6.78 10.31 (1.71) (1.71) 3.28 6.22 15.43 12.84 12.84 5.68 8.86 13.17 7.92 7.92 3.10 6.06 20.07 6.55 6.55 4.20 8.96 14.32 0.40 0.40 4.31 8.04 14.07 16.50 16.50 11.15 12.82 13.35 14.95 14.95 N/A N/A 15.85 7.59 7.59 4.22 7.64 11.16 1.57 1.57 3.62 6.52 15.46 5.83 5.83 2.48 8.43 15.51 5.35 5.35 2.22 8.44 13.01 15.50 15.50 6.14 5.73 8.31 5.97 5.97 5.48 4.63 15.29 14.91 14.91 6.45 9.04 12.79 9.17 9.17 3.40 5.75 18.88 (7.40) (7.40) (1.16) 5.85 15.09 (8.99) (8.99) (1.53) 4.38 .. Ending2020 U.S. Dollar Local Currency Year to 3 5 Year to 3 5 Quarter 12 Months Quarter 12 Months Date Years Years Date Years Years 19.77 18.69 18.69 6.56 13.22 16.09 19.50 19.50 8.53 13.02 11.21 29.67 29.67 9.22 15.25 10.67 28.27 28.27 8.78 15.13 10.08 3.66 3.66 (1.53) 2.79 6.56 1.94 1.94 (1.73) 1.45 23.21 42.02 42.02 21.55 22.51 19.53 33.12 33.12 19.25 18.75 25.48 (11.44) (11.44) (2.69) 9.57 25.48 (11.44) (11.44) (2.69) 9.57 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Graystone Page 3 Consuhings" City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2020 Rived Tinenme % Returns for the .d Ending December 31, 2020 Three Years Five Years Ten Years Quarter Year to Date 12 Months (annualized) (annualized) (annualized) U.S. Fixed Income 90-Day T-Bills 0.03 0.58 0.58 1.56 1.16 0.60 Barclays Aggregate 0.67 7.51 7.51 5.34 4.44 3.84 Barclays Credit 2.79 9.35 9.35 6.80 6.44 5.40 Barclays Govt/Credit 0.82 8.93 8.93 5.97 4.98 4.19 Barclays Government (0.79) 7.94 7.94 5.17 3.76 3.26 Barclays High Yield 6.44 7.05 7.05 6.21 8.57 6.79 Barclays Intermediate Govt/Credit 0.48 6.44 6.44 4.67 3.64 3.11 Barclays Long Govt/Credit 1.68 16.12 16.12 9.80 9.35 8.16 Barclays Mortgage Backed 0.25 3.87 3.87 3.71 3.05 3.01 Barclays Municipal 1.82 5.21 5.21 4.64 3.91 4.63 Global Fixed Income Merrill Lynch Global High Yield 7.52 8.04 8.04 5.90 8.48 6.63 Barclays Global Treasury ex. US 5.07 11.30 11.30 4.66 5.28 2.40 Barclays Capital Majors ex. U.S. 4.25 9.59 9.59 4.39 4.78 1.65 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 4 Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Total Fund - Executive Summary as of December 31, 2020 Manager Performance Chart 20.0 15.0 y 10.0 v 5.0 0.0 Current Fiscal 1 3 5 7 Since Quarter YTD Year Years Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 7 Inception Quarter YTD Year Years Years Years 02/01/2011 Total Fund 11.62 11.62 12.64 8.46 9.44 7.86 7.93 Policy Index 1 12.39 12.39 13.57 9.52 10.11 8.57 8.99 Differences -0.77 -0.77 -0.93 -1.06 -0.67 -0.71 -1.06 Historic Asset Growth Current Fiscal 1 3 5 7 Inception Quarter YTD Year Years Years Years 02/01/2011 Total Fund Beginning Market Value 17,178 17,178 17,352 14,445 11,928 10,641 7,730 Net Contributions 545 545 311 1,471 1,414 1,939 2,841 Fees/Expenses -24 -24 -96 -325 -467 -576 -707 Income 80 80 339 1,070 1,712 2,203 2,830 Gain/Loss 1,915 1,915 1,788 3,034 5,107 5,488 7,001 Ending Market Value 19,694 19,694 19,694 19,694 19,694 19,694 19,694 Modern Portfolio Statistics Standard Maximum Return Deviation Beta Drawdown Total Fund 7.93 9.63 0.98 -17.43 Policy Index 1 8.99 9.65 1.00 -17.24 Manager Risk & Return 12.0 10.0 8.0 6.0 - 0 it 4.0 - 2.0 - 0.0 - -2.0 - -4.0 1 1 1 1 1 1 1 1 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Risk (Standard Deviation %) Total Fund O Policy Index 1 . 90-Day T-Bills Up Down Sharpe Inception Capture Alpha Capture Ratio R-Squared Date 97.27 106.73 -0.78 0.78 0.96 02/01/2011 100.00 100.00 0.00 0.88 1.00 02/01/2011 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 5 Consulting'" City of Sebastian Police Officers' Retirement System as of December 31, 2020 Trailing Returns Manager vs Benchmark: Return through December 2020 (not annualized if less than 1 year) 14 12 - - - - - - - - - - - - - - - 10 8- 6- 1 quarter 1 year 3 years 5 years 10 years 18 years Manager vs Benchmark: Return through December 2020 (not annualized if less than 1 year) ■ Sebastian Police (Gross) ■ Sebastian Police (Net) ■ Sebastian Police Policy Index Sebastian Police (Gross) 11.62% 12.64% 8.47% 9.44% 8.10% Sebastian Police (Net) 11.47% 11.98% 7.70% 8.74% 7.46% Sebastian Police Policy Index 12.39% 13.57% 9.52% 10.11 % 9.05% Source: Zephyr 6.74% 6.06% 7.46% The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 6 Consulting'" City of Sebastian Police Officers' Retirement System as of December 31, 2020 Risk/Return - 5 Year Analysis Manager Performance 20-Quarter Moving Windows, Computed Quarterly January 2016 - December 2020 160 — 150 140— — 130— — 120— — — — — — — — — — — — — — — — 110— — 100 042015 Q4 2016 Q4 2017 042018 04 2019 04 2020 Manager Risk/Return Single Computation January 2016 - December 2020 8% E 6% —S basbtien Police (Gross) —Sasastian Police Policy lydex 4%- 2% 0�% 2°/ 4% 6% 81% 101% 1291. 14io 167 Standard Deviation Return & Risk Measurements January 2016-December 2020: Summary Statistics • Sebastian Police (Gross Nhrket Benchmark: Sebastian Police Policy Index 0 Cash Equivalent Citi group 3-month T-bi I I Sebastian Police (Gross) 9.44% -0.66% 13.80% 0.97-17.43% 96.69% 101.79% -0.33% 0.60 98.44% Sebastian Police Policy Index 10.11% 0.00% 14.11% 1.00-17.24% 100.00% 100.00% 0.00% 0.63 100.00% Source: Zephyr The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 7 Consulting'" City of Sebastian Police Officers' Retirement System as of December 31, 2020 Risk/Return - 18 Year Analysis Manager Performance 20-Quarter Moving Windows, Computed Quarterly January 2003 - December 2020 Q4 D02 Q42005 Q42007 Q42009 Q42011 Q42013 Q42015 042017 042120 Sebastian Police (Gross) Manager Risk/Return Si rig le Computation January 2003 - December 2020 a /� 7oir 6o/ So/ c —Sebastian Pdlce (Gross) 4% - —Sebastian Pdice PcIcy Ir&x - 3'/ 2% 1% 0 2°/ Return & Risk Measurements January 2003-December 2020: Summary Statistics 4% 6% 8% Standard Deviation IN 0% • Sebastian Police (Gross) N$rket Benchmark: Sebastian Police Policy Index Cash Equivalent Citigroup 3-month T-bill 6.74% -0.72% 9.85% 1.00-22.97% 96.91 % 107.65% -0.64% 0.56 97.24% Sebastian Police Policy Index 7.46% 0.00% 9.75% 1.00-21.59% 100.00% 100.00% 0.00% 0.64 100.00% Source: Zephyr The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 8 Consulting'" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2020 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 Since Inception Value % To YTD YTD Year Years Years Years Inception Date ($) Date TotalI I I I Total Fund (net) 11.47 11.98 11.47 11.98 7.70 8.74 7.21 7.31 Policy Index 1 12.39 13.57 12.39 13.57 9.52 10.11 8.57 8.99 Domestic Highland - Large Cap Value 3,723,447 18.91 15.62 -0.33 15.62 -0.33 5.10 N/A N/A 7.05 08/01/2017 Highland - Large Cap Value (net) 15.48 -0.80 15.48 -0.80 4.46 N/A N/A 6.48 Russell 1000 Value 16.25 2.80 16.25 2.80 6.07 N/A N/A 7.45 Highland - Large Cap Growth 1,646,597 8.36 10.73 35.78 10.73 35.78 19.77 N/A N/A 20.81 08/01/2017 Highland - Large Cap Growth (net) 10.60 35.13 10.60 35.13 19.19 N/A N/A 20.29 Russell 1000 Gr 11.39 38.49 11.39 38.49 22.99 N/A N/A 23.69 iShares - Russell 1000 Growth ETF 1,582,000 8.03 N/A N/A N/A MIFN/A N/A N/A 01/01/2021 iShares - Russell 1000 Growth ETF (net) N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Gr N/A N/A N/A N/A N/A N/A N/A N/A Boston Partners - SMID Value 2,348,394 11.92 30.27 4.26 30.27 4.26 4.17 N/A N/A 5.82 08/01/2017 Boston Partners - SMID Value (net) 30.01 3.18 30.01 3.18 3.04 N/A N/A 4.75 Russell 2500 VL 28.51 4.88 28.51 4.88 4.33 N/A N/A 5.98 Fiera Capital - SMID Growth 1,583,746 8.04 22.01 44.13 22.01 44.13 20.42 N/A N/A 21.80 08/01/2017 Fiera Capital - SMID Growth (net) 21.80 43.11 21.80 43.11 19.54 N/A N/A 20.97 Russell 2500 GR 25.89 40.47 25.89 40.47 19.91 N/A N/A 20.89 Highland - Intl Value 985,262 5.00 18.29 6.85 18.29 6.85 4.25 N/A N/A 5.40 08/01/2017 Highland - Intl Value (net) 18.15 6.46 18.15 6.46 3.72 N/A N/A 4.93 MSCI EAFE Net 16.05 7.81 16.05 7.81 4.28 N/A N/A 5.75 MSCI EAFE VL Net 19.20 -2.63 19.20 -2.63 -1.24 N/A N/A 0.55 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 9 Consulting'" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2020 Allocation Performance(%) Market Quarter o /o Value To YTD Fiscal 1 3 5 7 Since Inception YTD Year Years Years Years Inception Date M Date Renaissance - International Growth 1,496,586 7.60 19.25 10.05 19.25 10.05 2.04 N/A N/A 3.01 08/01/2017 Renaissance - International Growth (net) 19.06 9.37 19.06 9.37 1.39 N/A N/A 2.40 MSCI AC World ex US Net 17.01 10.65 17.01 10.65 4.88 N/A N/A 6.50 Highland - Fixed Income 4,548,890 23.10 1.03 7.77 1.03 7.77 5.34 N/A N/A 4.95 08/01/2017 Highland - Fixed Income (net) 0.96 7.45 0.96 7.45 4.91 N/A N/A 4.57 Barclays Aggregate 0.67 7.51 0.67 7.51 5.34 N/A N/A 4.91 Alternative Investments Intercontinental - Private Real Estate 724,155 3.68 0.48 1.63 0.48 1.63 7.44 N/A N/A 7.76 10/01/2017 Intercontinental - Private Real Estate (net) 0.43 0.84 0.43 0.84 6.12 N/A N/A 6.45 NCREIF Property 1dx 1.15 1.61 1.15 1.61 4.89 N/A N/A 5.08 Barclays Aggregate 0.67 7.51 0.67 7.51 5.34 N/A N/A 5.03 Lazard - Global Infrastructure 973,000 4.94 N/A N/A N/A N/A N/A N/A N/A N/A 01/01/2021 Lazard - Global Infrastructure (net) N/A N/A N/A N/A N/A N/A N/A N/A DJ Brookfield Gbl Infra Comp TR N/A N/A N/A N/A N/A N/A N/A N/A Receipt & Disbursement 90-Day T-Bills 82,235 0.42 0.00 0.03 0.28 0.58 0.00 0.03 0.28 0.58 1.08 1.56 N/A N/A N/A N/A 1.23 08/01/2017 1.50 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 10 Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2020 Current Fiscal 1 3 5 7 Since Inception Total Fund 100.00 Quarter YTD Year Years Years Years Inception Date 01/31/2011 Domestic Equity RENEW, Highland - Large Cap Value 18.91 15.53 15.53 0.68 4.90 N/A N/A 7.49 07/31/2017 Highland - Large Cap Growth 8.36 12.06 12.06 35.66 19.50 N/A N/A 20.10 07/31/2017 iShares - Russell 1000 Growth ETF 8.03 N/A N/A N/A N/A N/A N/A N/A Boston Partners - SMID Value 11.92 23.85 23.85 6.00 4.60 N/A N/A 5.99 07/31/2017 Fiera Capital - SMID Growth lintpmingtinnal 8.04 21.74 21.74 43.59 19.56 N/A N/A 20.97 07/31/2017 Highland - Intl Value 5.00 18.02 18.02 6.74 3.84 N/A N/A 5.00 07/31/2017 Renaissance - International Growth 7.60 19.08 19.08 9.92 1.78 N/A N/A 2.66 07/31/2017 IncomeFixed Highland -Fixed Income 23.10 0.96 0.96 7.41 4.89 N/A N/A 4.53 07/31/2017 w. Intercontinental - Private Real Estate 3.68 0.43 0.43 0.83 6.26 N/A N/A 6.34 10/15/2017 Lazard - Global Infrastructure 4.94 N/A N/A N/A N/A N/A N/A N/A Receipt & Disbursement 0.42 -1.60 -1.60 -3.39 -4.36 N/A N/A -3.97 07/31/2017 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 Graystone guarantee of future results. sM Page 11 Consulting City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2020 Executive Summary Global Equity $13,366.OK (67.9%) — 40.0% - 70.0% Fixed Income $4,548.9K (23.1%) — 20.0% - 30.0% Alternatives $1,697.2K (8.60/.) - 0.0% - 20.0% Receipt & Disbursement $82.2K (0.4%) 0.0% - 5.0% 25.0% L 0.0% i i i i i 0.0% 15.0% 30.0% 45.0% 60.0% 75.0% 90.0% ❑ Policy ■ Target . In Policy . Outside Policy 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 12 105.0% Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2020 Executive Summary Highland - Large Cap Value $3,723.4K (18.9%) - 12.5% - 22.5% Highland - Large Cap Growth $1,646.6K (8.49/6) - 6.2% - 11.2% iShares - Russell 1000 Growth ETF $1,582.OK (8.0%) - 6.2% - 11.2% Boston Partners - SMID Value $2,348.4K (11.90/6) - 2.5% - 15.0% Fiera Capital - SMID Growth $1,583.7K (8.09/6) - 2.5% - 10.5% Highland - Intl Value $985.3K (5.0%) - 2.5% - 7.5% Renaissance - International Growth $1,496.6K (7.6%) - 5.0% - 10.0% Highland - Fixed Income $4,548.9K (23.1%) - 20.0% - 30.0% Intercontinental - Private Real Estate $724.2K (3.7%) 0.0% - 10.0% Lazard - Global Infrastructure $973.OK (4.9%) 0.0% - 10.0% Receipt & Disbursement $82.2K (0.4%) 70% 0.0% - 5.0% t5.0% • 15.0% t5.0% t7.5% 16.3% • I25.0% 0.0% 6.0% 12.0% 18.0% 24.0% 30.0% 36.0% ❑ Policy ■ Target . In Policy . Outside Policy 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 13 42.0% Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Executive Summary as of December 31, 2020 Manager Performance Chart 24.0 16.0 8.0 a 0.0 1 L -8.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Value 15.62 15.62 -0.33 5.10 7.05 Russell 1000 Value 16.25 16.25 2.80 6.07 7.47 Differences -0.63 -0.63 -3.13 -0.97 -0.42 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Value Beginning Market Value 3,667 3,667 3,813 3,761 4,342 Net Contributions -500 -500 -116 -560 -1,511 Fees/Expenses -5 -5 -17 -64 -64 Income 21 21 92 284 326 Gain/Loss 540 540 -48 302 630 Ending Market Value 3,723 3,723 3,723 3,723 3,723 Modern Portfolio Statistics Manager Risk & Return 105 9.0 75 6.0 - 4.5 - 3.0 - 1.5 - 0.0 - -1.5 1 1 1 1 1 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Highland -Large Cap Value O Russell 1000 Value . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Value 7.05 18.55 1.00 -28.00 99.28 100.96 -0.37 0.38 0.99 08/01/2017 Russell 1000 Value 7.47 18.50 1.00 -26.73 100.00 100.00 0.00 0.40 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" Page 14 City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Growth - Executive Summary as of December 31, 2020 Manager Performance Chart 60.0 45.0 30.0 a 15.0 0.0 -M owl WT- Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Growth 10.73 10.73 35.78 19.77 20.81 Russell 1000 Gr 11.39 11.39 38.49 22.99 23.73 Differences -0.66 -0.66 -2.71 -3.22 -2.92 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Growth Beginning Market Value 4,371 4,371 3,858 2,644 1,523 Net Contributions -3,188 -3,188 -3,500 -3,009 -2,060 Fees/Expenses -5 -5 -20 -49 -49 Income 9 9 37 114 123 Gain/Loss 460 460 1,272 1,947 2,110 Ending Market Value 1,647 1,647 1,647 1,647 1,647 Modern Portfolio Statistics Manager Risk & Return 35.0 30.0 25.0 - 20.0 - 15.0 - 10.0 - 5.0 - 0.0 - -5.0 - -10.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 Risk (Standard Deviation %) Highland - Large Cap Growth O Russell 1000 Gr . 90-Day T-Bills 1 1 20.0 24.0 28.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Growth 20.81 18.72 1.01 -17.36 96.36 105.89 -2.58 1.03 0.99 08/01/2017 Russell 1000 Gr 23.73 18.46 1.00 -15.98 100.00 100.00 0.00 1.17 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" Page 15 City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Executive Summary as of December 31, 2020 Manager Performance Chart 45.0 30.0 v a 15.0 0.0k h Current Fiscal 1 Quarter YTD Year Manager Annualized Performance Current Fiscal Quarter YTD Boston Partners - SMID Value 30.27 30.27 Russell 2500 VL 28.51 28.51 Differences 1.76 1.76 Historic Asset Growth Current Fiscal Quarter YTD Boston Partners - SMID Value Beginning Market Value 836 836 Net Contributions 1,266 1,266 Fees/Expenses -2 -2 Income 5 5 Gain/Loss 244 244 Ending Market Value 2,348 2,348 Modern Portfolio Statistics 3 Since Years Inception 1 3 Inception Year Years 08/01/2017 4.26 4.17 5.82 4.88 4.33 5.99 -0.62 -0.16 -0.17 1 3 Inception Year Years 08/01/2017 897 720 672 1,392 1,511 1,511 -7 -23 -25 15 41 47 52 99 143 2,348 2,348 2,348 Manager Risk & Return 8.0 7.0 6.0 5.0 - '.�. 4.0 - 3.0 - 2.0 - 1.0 - 0.0 - -1.0 1 1 1 1 1 1 1 1 1 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Risk (Standard Deviation %) Boston Partners - SMID Value O Russell 2500 VL . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Boston Partners - SMID Value 5.82 26.15 1.10 -38.80 109.23 110.28 -0.29 0.30 0.98 08/01/2017 Russell 2500 VL 5.99 23.66 1.00 -34.64 100.00 100.00 0.00 0.31 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" Page 16 City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Executive Summary as of December 31, 2020 Manager Performance Chart 80.0 60.0 40.0 20.0 _M ja 00 Current Fiscal Quarter YTD Manager Annualized Performance Current Quarter Fiera Capital - SMID Growth 22.01 Russell 2500 GR 25.89 Differences -3.88 Historic Asset Growth Current Quarter Fiera Capital - SMID Growth Beginning Market Value 1,018 Net Contributions 333 Fees/Expenses -2 Income 2 Gain/Loss 233 Ending Market Value 1,584 Modern Portfolio Statistics 1 3 Since Year Years Inception Fiscal 1 3 Inception YTD Year Years 08/01/2017 22.01 44.13 20.42 21.80 25.89 40.47 19.91 20.93 -3.88 3.66 0.51 0.87 Fiscal 1 3 Inception YTD Year Years 08/01/2017 1,018 868 750 669 333 331 306 305 -2 -6 -18 -19 2 5 15 17 233 386 531 612 1,584 1,584 1,584 1,584 Manager Risk & Return 30.0 25.0 20.0 15.0 - e 10.0 - 5.0 - 0.0 - -5.0 - -10.0 1 1 1 1 1 1 1 1 1 1 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Fiera Capital - SMID Growth O Russell 2500 GR . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Fiera Capital - SMID Growth 21.80 21.86 0.95 -22.46 96.33 89.30 1.59 0.95 0.96 08/01/2017 Russell 2500 GR 20.93 22.52 1.00 -23.30 100.00 100.00 0.00 0.90 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consuhings" Page 17 City of Sebastian Police Officers' Retirement Plan Highland - International Value - Executive Summary as of December 31, 2020 Manager Performance Chart 32.0 24.0 S Manager Risk & Return 8.1 -.2 y 16.0 6.3 � 8.0 5.4 - 0.0 MMLN-- Current Fiscal 1 3 Since 4.5 - Quarter YTD Year Years Inception Manager Annualized Performance a 3.6 - C Ft1 1 3 I 2.7 - urrent sca nceptton Quarter YTD Year Years 08/01/2017 Highland - Intl Value 18.29 18.29 6.85 4.25 5.40 MSCI EAFE Net 16.05 16.05 7.81 4.28 5.76 Differences 2.24 2.24 -0.96 -0.03 -0.36 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Intl Value Beginning Market Value 722 722 802 740 701 Net Contributions 130 130 129 154 154 Fees/Expenses -1 -1 -3 -11 -11 Income 6 6 16 53 59 Gain/Loss 128 128 41 49 83 Ending Market Value 985 985 985 985 985 Modern Portfolio Statistics 1.8 0.9 0.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Risk (Standard Deviation %) Highland - Intl Value Q MSCI EAFE Net . 90-Day T-Bills 1 24.0 28.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Intl Value 5.40 19.50 1.12 -28.37 112.36 116.10 -0.71 0.29 0.94 08/01/2017 MSCI EAFE Net 5.76 16.83 1.00 -22.83 100.00 100.00 0.00 0.33 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 18 Consulting'" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Executive Summary as of December 31, 2020 Manager Performance Chart 32.0 24.0 y 16.0 v 8.0 0.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Renaissance - International Growth 19.25 19.25 10.05 2.04 3.01 MSCI AC World ex US Net 17.01 17.01 10.65 4.88 6.51 Differences 2.24 2.24 -0.60 -2.84 -3.50 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Renaissance - International Growth Beginning Market Value 1,041 1,041 1,134 1,056 1,016 Net Contributions 250 250 249 377 376 Fees/Expenses -2 -2 -6 -20 -22 Income 4 4 18 69 75 Gain/Loss 204 204 102 15 51 Ending Market Value 1,497 1,497 1,497 1,497 1,497 Modern Portfolio Statistics Manager Risk & Return 9.0 7.7 6.0 e 4.5 - 3.0 - 1.5 - 0.0 - -1.5 1 1 1 1 1 1 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Renaissance - International Growth O MSCI AC World ex US Net . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Renaissance - International Growth 3.01 19.48 1.13 -33.88 99.50 114.23 -3.75 0.18 0.95 08/01/2017 MSCI AC World ex US Net 6.51 16.87 1.00 -24.30 100.00 100.00 0.00 0.37 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" Page 19 City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Executive Summary as of December 31, 2020 Manager Performance Chart 12.0 9.0 v 6.0 3.0 0.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Fixed Income 1.03 1.03 7.77 5.34 4.95 Barclays Aggregate 0.67 0.67 7.51 5.34 4.92 Differences 0.36 0.36 0.26 0.00 0.03 Historic Asset Growth Current Quarter Highland - Fixed Income Beginning Market Value 4,147 Net Contributions 361 Fees/Expenses -3 Income 26 Gain/Loss 17 Ending Market Value 4,549 Modern Portfolio Statistics Return Highland - Fixed Income 4.95 Barclays Aggregate 4.92 Fiscal 1 3 Inception YTD Year Years 08/01/2017 4,147 3,898 3,904 3,980 361 360 85 -27 -3 -12 -47 -47 26 116 356 416 17 187 251 227 4,549 4,549 4,549 4,549 Manager Risk & Return 6.4 5.6 4.8 4.0 - 3.2 - 2.4 - 1.6 - 0.8 - U.0 1 1 1 I 1 1 1 1 -2.4 -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 Risk (Standard Deviation %) Highland - Fixed Income O Barclays Aggregate . 90-Day T-Bills Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date 4.86 0.96 -4.16 97.97 89.19 0.28 0.71 0.40 08/01/2017 3.21 1.00 -2.46 100.00 100.00 0.00 1.06 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 20 Consulting'" City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Executive Summary as of December 31, 2020 Manager Performance Chart 12.0 9.0 6.0 v 3.0 0.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 10/01/2017 Intercontinental - Private Real Estate 0.48 0.48 1.63 7.44 7.76 NCREIF Property Idx 1.15 1.15 1.61 4.89 5.08 Differences -0.67 -0.67 0.02 2.55 2.68 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 10/01/2017 Intercontinental - Private Real Estate Beginning Market Value 725 725 733 115 112 Net Contributions -4 -4 -15 486 486 Fees/Expenses - - -6 -26 -26 Income - - - - - Gain/Loss 3 3 12 149 153 Ending Market Value 724 724 724 724 724 Modern Portfolio Statistics Manager Risk & Return 105 9.0 75 6.0 - 4.5 - 3.0 - 1.5 - 0.0 - -1.5 1 1 1 1 1 1 1 1 1 1 -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 %) Intercontinental - Private Real Estate O NCREIF Property Idx . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Intercontinental - Private Real Estate 7.76 3.68 1.11 -0.02 142.66 2.02 2.05 1.66 0.57 10/01/2017 NCREIF Property Idx 5.08 2.52 1.00 -0.99 100.00 100.00 0.00 1.40 1.00 10/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" Page 21 City of Sebastian Police Officers' Retirement Plan IPS Checklist as of December 31, 2020 Equity Portfolio Listed on recognized exchange Yes Single issue shall does not exceed 5% of total plan market value Yes Fixed Income U.S. Government / Agency or U.S. Corporations Yes Bonds rated "BBB" or better Yes Single corporate issuer not exceed 10% of bond portfolio Yes (except U.S. Government/Agency) Page 22 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Policy Index History As of December 31, 2020 Feb-2011 S&P 500 Total Return 48.00 Barclays Govt/Credit Bond 49.00 90-Day T-Bills 3.00 Jul-2011 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jan-2016 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jul-2017 Russell 1000 Value 21.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 21.25 Russell 2500 VL 5.00 Russell 2500 GR 5.00 MSCI AC World ex US Net 7.50 Alerian MLP Index 5.00 NCREIF Property Idx 5.00 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 23 Graystone Consulting'" 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 managers4unds 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 UM,A_ Each investment manager included in this report that participates in one or more of the Consulting and Evaluation Services or Select UPJA programs ("Programs") has a track record of investing assets in the relevant investment discipline_ The investment manager's gross perform ancetrack 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 c u rrently 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 perform ancetrack 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}_ Page 24 Graystone Consulting'" Page 25 Important Notes About This Report (Cont"d) There maybe differences between the performance in the different forms of the Select UNIA program. indifferent Programs, and between the performance in Programs and performance outside the Programs, due to among other things- investment and operational differences- For exam ple= • 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 securitiesthan 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 a.s performance net of fees and expenses) - SOURCE OF PERFORMANCE INFORMATION FOR GLOBAL INVESTMENT SOLUTION STRATEGIES: In the Global Investment Solutions program, dedicated portfolio managers employed by Morgan Stanley orthird party subadvisors make day-to-day investment decisions for clients' accounts invested in various investment strategies- Thetrack record shown in this reportfor Global Investment Solutions strategies consists of the portfolio management team's gross performance in that strategy in the Global Investment Solutions program (or a predecessor program) - 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 I'd organ Stanley- If you have invested with any such manager through another firm, we recommend that you seek information from that firm on the managers gross and net performance in its programs- Graystone Consulting'" Important Notes About This Report (Cont"d) SOURCE OF PERFORMANCE INFORMATION FOR FUNDS: For any fund shoe n 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': belol . 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 andior 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 manager4und 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 LIMA, approved by Morgan Stanley Wealth Management using another process, or not approved by Morgan Stanley 'Alealth Management_ • Morgan Stanley Wealth Management does not approve managers in the Investment Management Services consulting program_ • Managers in the Global Investment Solutions (GIS) program are not evaluated by LIMA. Page 26 Graystone Consulting'" Page 27 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 orfund. and Morgan Stanley Wealth Management does not recommend or monitor that manager or fund For more information on the approval process in any program, seethe applicable ADV brochure, available at }rr}rr}rx I'd organ StanIey.comfADV or from your Financial advisor or Private 1 ealth Advisor. If you have any questions about },%fhether or hoix 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 shareclass of a fund sholxn in this report may differ from the share class available in any Morgan Stanley Wealth Management investment advisory program in 1xhich you invest_ The performance of the share class in which you invest may differ from that of the share class sho7,vn 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 asto 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. Graystone Consulting'" Important Notes About This Report (Cont"d) KEY ASSET CLASS RISC{ CONSIDERATIONS: Investing insecurities entails risk including the risk of losing principal_ There is no a ssu rance th at the investment disciplines and investment m a n a g ers4u n d s 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 pricevol at! Iity of acommodity. 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 1,veII 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. Page 28 Graystone Consulting'" Important Notes About This Report (Cont"d) InternationaIJEmerging Market: International investing (including investing in particular countries orgroups 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__ 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 debtforthe purposes of repayment in the event of bankruptcy_ Many preferred securities are "callable' meaning that the issuer may retirethe 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 }mould 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 small4o medium-sized corporations aregenerally 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 U S registered open-end mutual funds separate account strategies, and E T F s 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 i n c rea se vol ati I ity and the risk of investment loss_ Alternative Investments are not suitable for all investors_ Page 29 Graystone Consulting'" Important Notes About This Report (Cont"d) Managed Futures: Involve a high degree of risk, often involve leveraging and other speculative investment practicesthat may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing orvaluation 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 nottransparent and are known only tothe 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 MLIP s 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_ Page 30 Graystone Consulting'" 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 th e vol ati I ity of the portfolio_ A positive alpha indicates that a portfolio has produced returns above the expected level at that Ievel of risk, and vice versa for a negative alpha_ ANNUALIZED RETURN: The constant rate of return that, compounded annually, would }Meld the same overall return for a period of more than oneyear 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 forthat manager. Annualized excess return is calculated by taking the annualized return of the original series and forming the difference bet~,veen thetwo_ A positive annualized excess return implies thatthe manager outperformed the benchmark overthe time period sho7,xin_ BEST AND WORST PERIOD RETURNS: The best period return for a time window is simply the maximum of the returns forthat period inside this 1xindow_ Similarly theworst period return for a time window is the minimum of the returns forthat 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 -}rear return is the maximum of the returns thus found_ Similarly_ thelxorst 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 eti:ample, 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 d iversifi ed away_ When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; () 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 notfrequentlytrade; 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 h i g her vol ati I ity than the market_ Page 31 Graystone Consulting'" Glossary (Cont"d) CORRELATION: Statistical method to measure how closely related the variances of bxo 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 EXCE S S RETURN: Excess return represents the difference between the managers 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 periodshown - 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 ()for those quarters- dividing the portfolios 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 9 0 % means that the porkfolio's losses were only 9 0 % of the markets losses (as represented by the benchmark index)- DO'4"/NSIDE DEVIATION: Similar to Standard Deviation- but Dolxnside Deviation captures the range of expected returns only on the doixn side [1xhen the returns fall beloix the minimum acceptable return jJAR)]- DRAWDOWN (MAXIMUM DRAWDOWN): The Maximum loss (compounded not annualized) that the manager incurred during any sub -period ofthetime period shown- DRAWDOWN BEGIN DATE: the first date of the sub -period used to calculate the maximum dra),xdo}xn DRAWDOWN END DATE: The last date of the sub period used to calculate the matiimum dra"Worvn DRAWDOWN LENGTH: The number of periods (months orquarters depending on the periodicity ofthe data)the sub -period used tocalculate the maximum drawdown DRAWDOWN RECOVERY DATE: Date at which the compounded returns regain the peak level thatwas reached beforethe drawdown began DRAWDOWN RECOVERY LENGTH: Number of periods it takes to reach the recovery level from maximum drawdown end date Page 32 Graystone Consulting'" Glossary (Cont"d) EXCE S S 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 WATERMARK: The High Water Mark represents the peak level of them an ager's return, as represented by the peak of the cumulative return series_ HIGH WATER MARK DATE: The date which the High Water Bark 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 1xrith the high }rater mark and ends 1xith 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 INF0RPVIATION 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 managertfund (or benchmark index if applicable) has provided a return that is equivalent to the risk of the benchmark return. PdAR Stands for:,I'd inimum 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 referto the specific charUstatistic to see the specific MAR used in the illustration_ Page 33 Graystone Consulting'" Glossary (Cont"d) MANAGER STILE (FZETURN S BASED STYLE ANALY I )- A measure for analyzing the style of a portfolio'& 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 procedurethatfinds th e c om bi n ati on 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 c a ptu re the enti re return distribution {useful for investments that do not have normal return distributions), the Omega is tied to a MAR (see above) and shoixs 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 do7,xinside)- PAIN INDE : Represents the frequency, the depth and the 1xidth of the managerlfund's drawdown s- The Pain Indeti: captures the information for every period in which the manager!fund is negative- A higher Pain Index indicates that the managerlfund had a more negative result when considering not just the depth (Ioixest return) but also the frequency of negative returns (ire quencyl and the amount oftime that the return remained negative (1xidth).- PAIN RATIO: A risklreturn 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 (0 quarter) periods of time were evaluated from the startdate, moving forward one year at a time, for the duration of the 10 year period.. resulting in 5 "windows'- Evaluating data this way allows unto remove end point bias and determine a measure of consistency in per-formanfe- R-S QUARED. Used to show how much of a portfolia's variability can be accounted for by the market- For example, if a portfolio's R-Squared is 0-79, then 7 9 % of the portfolio's variability is due to market conditions- As R-Squared approaches 10D%, the portfolio is more closely correlated with the market - Page 34 Graystone Consulting'" Page 35 Glossary (Cont"d) HARPE RATIO: Developed by William F- Sharpe, this calculation measures a ratio of return to volatility- It is useful in comparing bxo portfolios or stocks in terms of risk -adjusted return- The higher the Sharpe Ratio- the betkerthe 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 doixnside returns. SINGLE COMPUTATION For a single computation chart StyleADVISOR calculates the information over the entire time period sho)xn as a single data point- AS an example in a chart sho}xing 1.0 years of performance, a "Single Computation': would represent the statistic sholxn o ve r th e enti re 10 yea r 1xi n d oix. TANDARR DEVIATION: A statistical measure ofthe degree to which the performance of a portfoliovaries 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 9 5 % of the time, the future returns could be expected to fall between -91 % and 31 % (being 5% +1- 26%)- In performance measurement, it is generally assumed that a larger standard deviation means that great risk was taken to achieve the return. Graystone Consulting'" 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: MBCI Regional Style Basis; MBCI World Ex USA Style Basis: MBCI International Equity Style Basis: B&P Regional International Indexes, S&P International 4 Way Style Basis - Global Equity: MBCI World Style Basin MBCI World Regional Indexes; MBCI Global Equity Style Basis - Fixed income: Citigroup Corporate Bond Indexes; BofA Merrill Lynch Fixed Income Indexes; Oitigroup GDvt 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 1,veightings used for the Style Benchmark foreach manager or fund_ TRAC KIN0 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 thecalendar quarters in which the portfolio's benchmark index had positive returns and then ( )forthose 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% = 86.7%- meaning the portfolio "captured" 86.7% of the upside performance of the index. Stated another way. the portfolio in this example performed almost 6 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 Page 36 Graystone Consulting'" Performance Appendix Performance Data below is net of fees. Please seethe 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. or 3 5 10 Since Inception Account Name QTD YTDJW Years Years Years Inception 1 Date Boston Partners - SMID Value 30.01 3.18 3.18 3.04 -- -- 4.51 07/14/2017 Fiera Capital - SMID Growth 21.80 43.11 43.11 19.54 -- -- 20.12 07/20/2017 Highland - Fixed Income 0.96 7.45 7.45 4.91 6.15 5.91 5.91 01/31/2011 Highland - Intl Value 18.15 6.46 6.46 3.72 -- -- 5.48 07/17/2017 Highland - Large Cap Growth 10.60 35.13 35.13 19.19 -- -- 19.87 07/17/2017 Highland - Large Cap Value 15.48 -0.80 -0.80 4.46 -- -- 6.39 07/17/2017 Intercontinental - Private Real Estate 0.43 0.84 0.84 6.12 -- -- 6.45 10/01/2017 Lazard - Global Infrastructure -- -- -- -- -- -- 0.00 12/31/2020 Receipt & Disbursement -1.96 -4.13 -4.13 -5.72 -- -- -4.78 08/01/2017 Renaissance - International Growth 19.06 9.37 9.37 1.39 -- -- 2.44 07/17/2017 iShares - Russell 1000 Growth ETF -- -- -- -- -- -- 0.00 12/31/2020 All performance above are Time Weighted(TWR) performance Glossary of Terms performance. Active Contribution Return: The gain or loss percentage of an investment relative to the performance of the investment benchmark. Active Exposure: The percentage difference in weight of the portfolio compared to its policy benchmark. Active Return: Arithmetic difference between the manager's return and the benchmark's return over a specified time period. Actual Correlation: A measure of the correlation (linear dependence) between two variables X and Y, with a value between +1 and -1 inclusive. This is also referred to as coefficient of correlation. Alpha: A measure of a portfolio's time weighted return in excess of the market's return, both adjusted for risk. A positive alpha indicates that the portfolio outperformed the market on a risk -adjusted basis, and a negative alpha indicates the portfolio did worse than the market. Best Quarter: The highest quarterly return for a certain time period. Beta: A measure of the sensitivity of a portfolio's time weighted return (net of fees) against that of the market. A beta greater than 1.00 indicates volatility greater than the market. Consistency: The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's Core: Refers to an investment strategy mandate that is blend of growth and value styles without a pronounced tilt toward either style. Cumulative Selection Return (Cumulative Return): Cumulative investment performance over a specified period of time. Distribution Rate: The most recent distribution paid, annualized, and then divided by the current market price. Distribution rate may consist of investment income, short-term capital gains, long-term capital gains, and/or return of capital. Down Market Capture: The ratio of average portfolio returns over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Downside Risk: A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the value, the more risk the product has. Downside Semi Deviation: A statistical calculation that measures the volatility of returns below a minimum acceptable return. This return measure isolates the negative portion of volatility: the larger the number, the greater the volatility. Drawdown: A drawdown is the peak -to -trough decline during a specific period of an investment, fund or commodity. Excess over Benchmark: The percentage gain or loss of an investment relative to the investment's benchmark. Excess Return: Arithmetic difference between the manager's return and the risk -free return over a specified time period. Growth: A diversified investment strategy which includes investment selections that have capital appreciation as the primary goal, with little or no dividend payouts. These strategies can include reinvestment in expansion, acquisitions, and/or research and development opportunities. Growth of Dollar: The aggregate amount an investment has gained or lost over a certain time period, also referred to as Cumulative Return, stated in terms of the amount to which an initial dollar investment would have grown over the given time period. Investment Decision Process (IDP): A model for structuring the investment process and implementing the correct attribution methodologies. The IDP includes every decision made concerning the division of the assets under management over the various asset categories. To analyze each decisions contribution to the total return, a modeling approach must measure the marginal value of every individual decision. In this respect, the hierarchy of the decisions becomes very important. We therefore use the IDP model, which serves as a proper foundation for registering the decisions and relating them to each other. Information Ratio: Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Jensen's Alpha: The Jensen's alpha measure is a risk -adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. This metric is also commonly referred to as alpha.. Kurtosis: A statistical measure that is used to describe the distribution, or skewness, of observed data around the mean, sometimes referred to as the volatility of volatility. Maximum Drawdown: The drawdown is defined as the percent retrenchment from a fund's peak to the fund's trough value. It is in effect from the time the fund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peak to the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). It measures the largest percentage drawdown that has occurred in any fund's data record. Modern Portfolio Theory (MPT): An investment analysis theory on how risk -averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Mutual Fund (MF): An investment program funded by shareholders that trade in diversified holdings and is professionally managed. Peer Group: A combination of funds that share the same investment style combined as a group for comparison purposes. Peer/ Plan Sponsor Universe: A combination of asset pools of total plan investments by specific sponsor and plan types for comparison purposes. Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transaction data for these assets are not processed or maintained by us. Common examples of these include life insurance, some annuities and some assets held externally. Performance Statistics: A generic term for various measures of investment performance measurement terms. Portfolio Characteristics: A generic term for various measures of investment portfolio characteristics. Preferred Return: A term used in the private equity (PE) world, and also referred to as a "Hurdle Rate." It refers to the threshold return that the limited partners of a private equity fund must receive, prior to the PE firm receiving its carried interest or "carry." Ratio of Cumulative Wealth: A defined ratio of the Cumulative Return of the portfolio divided by the Cumulative Return of the benchmark for a certain time period. Regression Based Analysis: A statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables Residual Correlation: Within returns -based style analysis, residual correlation refers to the portion of a strategy's return pattern that cannot be explained by its correlation to the asset -class benchmarks to which it is being compared. Return: A rate of investment performance for the specified period. Rolling Percentile Ranking: A measure of an investment portfolio's ranking versus a peer group for a specific rolling time period (i.e. Last 3 Years, Last 5 years, etc.). R-Squared: The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. SA/CF (Separate Account/Comingled Fund): Represents an acronym for Separate Account and Commingled Fund investment vehicles. Sector Benchmark: A market index that serves as a proxy for a sector within an asset class. Sharpe Ratio: Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk -adjusted performance results in. Standard Deviation: A statistical measure of the range of a portfolio's performance; the variability of a return around its average return over a specified time period. Total Fund Benchmark: The policy benchmark for a complete asset pool that could consist of multiple investment mandates. Total Fund Composite: The aggregate of multiple portfolios within an asset pool or household. Tracking Error: A measure of standard deviation for a portfolio's investment performance, relative to the performance of an appropriate market benchmark. Treynor Ratio: A ratio that divides the excess return (above the risk free rate) by the portfolio's beta to arrive at a unified measure of risk adjusted return. It is generally used to rank portfolios, funds and benchmarks. A higher ratio is indicative of higher returns per unit of market risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing market risk. Up Market Capture: The ratio of average portfolio returns over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Upside Semi Deviation: A statistical calculation that measures the volatility of returns above an acceptable return. This return measure isolates the positive portion of volatility: the larger the number, the greater the volatility. Value: A diversified investment strategy that includes investment selections which tend to trade at a lower price relative to its dividends, earnings, and sales. Common attributes are stocks that include high dividend, low price -to -book ratio, and/or low price -to -earnings ratio. Worst Quarter: The lowest rolling quarterly return for a certain time period. Information Disclosures Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition andlor investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment. Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. The performance data shown reflects past performance, which does not guarantee future results. Investment return and principal will fluctuate so that an investor's shares when redeemed may be worth more or less than original cost. Please note, current performance may be higher or lower than the performance data shown. For up to date month -end performance information, please contact your Financial Advisor or visit the funds' company website. Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. The prospectus and, if available the summary prospectus, contains this and other information that should be read carefully before investing. Investors should review the information in the prospectus carefully. To obtain a prospectus, please contact your Financial Advisor or visit the funds' company website. Past performance is no guarantee of future results. Investing involves market risk, including possible loss of principal. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Small and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than those of larger, more established companies. Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds. The 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. Alternative investments, including private equity funds, real estate funds, hedge funds, managed futures funds, and funds of hedge funds, private equity, and managed futures funds, are speculative and entail significant risks that can include losses due to leveraging or\other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and/or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and risks associated with the operations, personnel and processes of the advisor. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk; and MLP interests in the real estate sector are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions. Mortgage backed securities also involve prepayment risk, in that faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield -to -maturity of a mortgage -backed security and prepayment risk includes the possibility that a fund may invest the proceeds at generally lower interest rates. Tax managed funds may not meet their objective of being tax -efficient. Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. High yield fixed income securities, also known as "junk bonds", are considered speculative, involve greater risk of default and tend to be more volatile than investment grade fixed income securities. Credit quality is a measure of a bond issuer's creditworthiness, or ability to repay interest and principal to bondholders in a timely manner. The credit ratings shown are based on security rating as provided by Standard & Poor's, Moody's and/or Fitch, as applicable. Credit ratings are issued by the rating agencies for the underlying securities in the fund and not the fund itself, and the credit quality of the securities in the fund does not represent the stability or safety of the fund. Credit ratings shown range from AAA, being the highest, to D, being the lowest based on S&P and Fitch's classification (the equivalent of Aaa and C, respectively, by Moody(s). Ratings of BBB or higher by S&P and Fitch (Baa or higher by Moody's) are considered to be investment grade -quality securities. If two or more of the agencies have assigned different ratings to a security, the highest rating is applied. Securities that are not rated by all three agencies are listed as "NR". "Alpha tilt strategies comprise a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward potentially outperforming the market in an effort to enhance overall investment returns. Tilt strategies are subject to significant timing risk and could potentially expose investors to extended periods of underperformance." Custom Account Index: The Custom Account Index is an investment benchmark based on your historical target allocations and/or manager selection that you may use to evaluate the performance of your account. The Custom Account index does take into consideration certain changes that may have occurred in your portfolio since the inception of your account, i.e., asset class and/or manager changes. However, in some circumstances, it may not be an appropriate benchmark for use with your specific account composition. For detailed report of the historical composition of this blend please contact your Financial Advisor. Peer Groups Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach. Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetrics.com/style-peer-groups Peer Group Ranking Methodology A percentile rank denotes the value of a product in which a certain percent of observations fall within a peer group. The range of percentile rankings is between 1 and 100, where 1 represents a high statistical value and 100 represents a low statistical value. The 30th percentile, for example, is the value in which 30% of the highest observations may be found, the 65th percentile is the value in which 65% of the highest observations may be found, and so on. Percentile rankings are calculated based on a normalized distribution ranging from 1 to 100 for all products in each peer group, where a ranking of 1 denotes a high statistical value and a ranking of 100 denotes a low statistical value. It is important to note that the same ranking methodology applies to all statistics, implying that a ranking of 1 will always mean highest value across all statistics. For example, consider a risk/return assessment using standard deviation as a measure of risk. A percentile ranking equal to 1 for 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. Alternatives Graystone Consulting is a business of Morgan Stanley Smith Barney LLC. ("Morgan Stanley") This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. This information is being provided as a service of your Graystone Institutional Consultant and does not supersede or replace your Morgan Stanley customer statement. The information is as of the date(s) noted and subject to daily market fluctuation. Your interests in Alternative Investments, which may have been purchased through us, are generally not held here, and are generally not covered by SIPC. The information provided to you: 1) is included as a service to you, valuations for certain products may not be available; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ("IRA"), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley IRA; and 2) if your Alternative Investment positon(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by SIPC. Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds. Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek altemative-like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:• Loss of all or a substantial portion of the investment due to leveraging, short - selling, or other speculative practices;- Lack of liquidity in that there may be no secondary market for a fund;- Volatility of returns;- Restrictions on transferring interests in a fund;- Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; - Absence of information regarding valuations and pricing;- Complex tax structures and delays in tax reporting;- Less regulation and higher fees than mutual funds; and- Risks associated with the operations, personnel, and processes of the manager. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker - dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of the additional fees paid to a placement agent by an investor (for Morgan Stanley placement clients, a one-time upfront Placement Fee of up to 3%, and for Morgan Stanley investment advisory clients, an annual advisory fee of up to 2.5%), which would result in a substantial reduction in the returns if such fees were incorporated. For most investment advisory clients, the program account will be charged an asset -based wrap fee every quarter ("the Fee"). In general, the Fee covers investment advisory services and reporting. In addition to the Fee, clients will pay the fees and expenses of any funds in which their account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and impact the valuations. Clients must understand that these fees and expenses are an additional cost and will not be included in the Fee amount in the account statements. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, for an account with an initial value of $100,000 and a 2.5% annual fee, if the gross performance is 5% per year over a three year period, the compounding effect of the fees will result in a net annual compound rate of return of approximately 2.40% per year over a three year period, and the total value of the client's portfolio at the end of the three year period would be approximately $115,762.50 without the fees and $107,372.63 with the fees. Please see the applicable Morgan Stanley Smith Barney LLC Form ADV Part 2A for more information including a description of the fee schedule. It is available at www.moreanstanlev.com/ADV <httn://www.mor2anstanlev.com/ADV> <http://www.morganstanley.com/ADV> or from your Financial Advisor/Private Wealth Advisor. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker -dealer, not a bank. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. © 2018 Morgan Stanley Smith Barney LLC. Member SIPC. Money Market Funds You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at $1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 4Q 2020 Introduction Quarterly Update as of December 31, zozo and Forecasts as of December 21, zozo • The S&P Soo saw continued gains in the fourth quarter, following a moderate third quarter and a sharp rally in the second quarter. Equities rallied 12.1% on the quarter, following a quarter in which they gained 8.S%. Equities continued to rally as investors cheered the much - anticipated sgoo billion stimulus package and the start of vaccine distribution, as well as robust economic data and easy monetary policy. Both international developed and emerging market equities outperformed the US in the fourth quarter. Morgan Stanley & Co. U.S. Equity Strategy has a 3,9oo price target on the S&P Soo to December 2021. • After the S&P Soo sectors finished the third quarter posting moderate returns, the sectors finished the fourth quarter with stronger performance. While Consumer Discretionary, Materials, and Industrials were the top -performing sectors in 3Q2o, returning i5.o6%,13.31%, and 12.48%, respectively, Energy, Financials and Industrials were the top -performing sectors in 4Q2o, returning 27.8%, 23.2%, and 15.7%, respectively. Laggards included Utilities, Consumer Staples, and Real Estate despite still increasing by 6.Sl 6.3%, and 5.o%, respectively. Other major US indices were also up for the quarter: The Dow Jones Industrial Average rose 10.7% and the NASDAQ Composite rose i5.7%. • The MSCI EAFE Index (a benchmark for international developed markets) rose 16.1%while the MSCI Emerging Markets Index rose 19.6%for the quarter. Both international developed markets and emerging markets outperformed US equities by 400 and 75o basis points, respectively. • The US aggregate bond market was positive for a consecutive quarter and outperformed on an absolute but not on a relative basis as investors took on more risk within pro -recovery trades. The Bloomberg Barclays US Aggregate Bond Index, a general measure of the bond market, rose o.67%. • Morgan Stanley & Co. economists expect US real GDP will be -z.z% in Q4 zozo, but forecast positive GDP growth for 2021 as economic recovery continues. • Commodities were up in the third quarter; the Bloomberg Commodity Index rose by 10.2%and Gold rose by 0.7%. Source: FactSet, Bloomberg, Morgan Stanley & Co. Research, Morgan Stanley Wealth Management G I C 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 b 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 Mark Pa9ALTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE Graystone Consukings" WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 4Q 2020 The US Economy Quarterly Update as of December 31, 2020 and Forecasts as of December 22, zozo Awaiting finalized Q4 data, the Bureau of Economic Analysis estimated that real Gross Domestic Product increased at an annualized rate of 33.4% in 31020, in comparison to a 31.4% decrease in zozo. Morgan Stanley & Co. economists forecast US Real GDP growth to grow at a 4.8%annualized pace in 4020, up from 3.S% expected previously, owing to the fact that exit momentum from the third quarter was strong enough that base effects alone have set a solid foundation for 4Q20 growth in the event of a sharp slowdown. Having expected a deceleration of growth in late Q4 into iQzi, MS & Co. projects o.o%year-on-year average growth for iQzi, with a ramp -up to 12.2% in zQzi. The seasonally adjusted unemployment rate for November zozo was 6.7%, steadily decreasing each month after peaking in April at 14.7%. In November, total nonfarm payrolls were +245K. The improvements in the labor market reflect the continued end -of -year resumption in economic activity to curtail effects of the pandemic. The number of long-term unemployed (thosejobless for 27 weeks or more) was 3.9 million, an increase Of 38S,000 MOM. According to the most recent data from the Federal Reserve Bank of St. Louis, corporate profits increased 36%quarter over quarter and increased 10.3% year over year. The Bureau of Labor Statistics has reported a +.z% MOM price increase, and a 1.2% price increase for the year ending November zozo. Morgan Stanley & Co. economists forecast a i.S% inflation rate for iQzi, with a steady increase persisting into the new year. The Census Bureau reported that the number of new private -sector housing starts in November was at a seasonally adjusted annual rate of i,639,000—up 8.S%from November of last year. The Census Bureau also reported that seasonally adjusted retail and food services sales declined i.i%from the previous month, but increased 4.1% above November 2019. Consumer confidence decreased in December, with Conference Board Consumer Confidence Index reading 88.6, after reading 92.9 in November. Despite the decline, the US National Economy Expectations Diffusion Index increased from 84.3 in November to 87.S in December. In September, the Institute for Supply Management's (ISM) Purchasing Managers Index (PMI), a manufacturing sector index, registered 57.S% in November, down 1.8%from October. Overall, this figure indicates expansion in the overall economy for the seventh month in a row after a contraction in April, which had been the lowest since 20o8. Generally speaking, a PMI or NMI (ISM Non -Manufacturing Index) over So indicates that the sector is expanding, and a PMI below So indicates thatthe sector is shrinking. The ISM's Non -Manufacturing Index (NMI) for November was 55.9%—this represents the sixth straight month of growth in the services sector after the April and May contraction. Source- FactSet, Bloomberg, Morgan Stanley & Co Research, Federal Reserve Bank of St. Louis, Morgan Stanley Wealth Management GIC Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to b Graystone 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 Mark Pa9dA,3ALTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE Consukings°" WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 4Q 2020 US Equity Markets As of 4Q 2020 The Dow Jones Industrial Average gained 10.7% in the fourth quarter of zozo, while the NASDAQ Composite Index gained i5.7%.The S&P Soo Index climbed 12.1%over the same time period. All ii sectors of the S&P Soo gained in the fourth quarter with Energy the top performer, having gained 27.8%, and Real Estate the laggard, with a return of S.o%. In addition, Financials outperformed amid news that the Fed will allow large -cap banks to restart buybacks, leading to a gain of 23.2%. Energy, Financials and Industrials were the top -performing sectors in 4Q2o, returning 27.8%, 23.2%, and i5.7%, respectively. Laggards included Utilities, Consumer Staples, and Real Estate despite still increasing by 6.S%, 6.3%, and S.o%, respectively. The Russell Midcap gained 19.9%on the quarter, with mid -cap value (20.4%) outperforming mid -cap growth (ig.o%). The Russell z000, a small -cap index, gained 31.4%for the quarter, with small -cap value (33.3%) outperforming small -cap growth (29.6%). INDEX IN USD Quarter 12 Months 5-Years 7-Years (Annualized) (Annualized S&P 500 12.15% 18.40% 15.20% 12.90% Dow Jones 10.73% 9.72% 14.64% ii.8o% Russell 2000 31.37% 19.96% 13.24% 933% Russell Midcap 19.91% 17.10% 13.38% 10.9s% Russell l000 13.69% 20.96% 15.58% 13.03% Source: FactSet, Bloomberg, Morgan Stanley Wealth Management GIC Past performance is no guarantee offuture results. Estimates offuture performance are based on assumptions that may not be realized. This material is not a solicitation of any offerto b Graystone financial instrument orto participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Mark Pa96AALTH MANAGEMENT GLOBAL INVESTMENT OFFICE CHARTBOOK I MARKET PERFORMANCE Consukings°" WEALTH MANAGEMENT Morgan Stanley S&P Soo Sectors YTDTiI Return As of December 31, 2020 EnergY-33.70/0 Real Estate-2.2b/o Financials -1.8% Utilities 0.5% Staples 3.0.7% Industrials ii.i% Health Care 13.4% Materials 20.7% Communication Services 23.6% Discretionary 33.30/0 Technology 43.90/0 -4O% -2O% 0% 2O% 4O% 6O% Source: Bloomberg Past performance is no guarantee offuture results. Estimates offuture performance are based on assumptionsthat may not be realized. This material is not a solicitation of any offerto b Graystone financial instrument orto participate in anytrading strategy. Please referto important information, disclosures and qualifications atthe end ofthis material. This slide sourced from Mark PagdASALTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE Consulting'" WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 4Q 2020 Global Equity Markets As Of 40 2020 International outperformed US equities in the fourth quarter of zozo despite still gaining on the back of global stimulus and amid choppy progress on the fight against the COVID pandemic. The MSCI EAFE Index (a benchmark for international developed markets) advanced 16.1%for US - currency investors. In the fourth quarter, the MSCI Emerging Markets Index also rallied by ig.8%for US -currency investors. The MSCI Europe Index advanced i5.7%for US -currency investors, while the MSCI Japan outperformed, gaining iS.z%. The S&P Soo Index rallied 12.1%for the quarter. Emerging economy equity market indices also rallied in the third quarter. The MSCI BRIC (Brazil, Russia, India and China) Index gained i5.3% in US dollar terms, while the MSCI EM Asia Index rose i8.6%. INDEX IN LISD Quarter iz Months 5-Years 7-Years (Annualized) (Annualized) MSCI EAFE 16.09% 8.28% 7.9 60A 4.88% MSCI EAFE Growth s3.s3% s8.680A so. gi% 7.720A MSCI EAFE Value 19.26% -z.io% 4.820A 1.890 MSCI Europe i5.66% 5.930A 7.410A 4.02% MSCI Japan 15.249/0 15.139/0 9.08% 7.23% S&P Sao iz i5% i8.40% iS za% iz go% MSCI Emerging Markets ig 779/0 i8.69% i3 za% 6 551/. Source: FactSet, Bloomberg, Morgan Stanley Wealth Management GIC Past performance is no guarantee offuture results. Estimates offuture performance are based on assumptions that may not be realized. This material is not a solicitation of any offerto b Graystone financial instrument orto participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Mark Pa9EASALTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE Consukings°" WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 4Q 2020 The US Bond Market As of 40 zozo The bond market was positive for a third consecutive quarter, outperforming on an absolute but not relative basis, as investors continued to take on risk in 4Q.The Bloomberg Barclays US Aggregate Bond Index, a general measure of the bond market, rose o.67%. Interest rates remained zero -bound, as the yield on the io-year US Treasury note remained range -bound, closing the quarter at o.gi%, up from the third quarter but still down from 1.92% at the end of zoig. The shortest end of the curve fell in iQ as the Fed cut its Fed funds target rate, with the yield on 3-month Treasury bills falling to o.o6%as of 04, from 1.54% at the start of the year. Riskier parts of the bond market, such as US high yield debt, gained the most in the fourth quarter, buoyed by the market's risk -on sentiment. The Bloomberg Barclays HighYield Index, a measure of lower -rated corporate bonds, rallied 6.4S%. Mortgage -backed securities continued to show slight gains in the fourth quarter. The Bloomberg Barclays Mortgage -Backed Securities Index rose .24%. Municipal bonds rallied slightly more; the Bloomberg Barclays Municipal Index gained 1.82%. INDEX IN USD Quarter lz Months 5-Years 7-Years (Annualized) (Annualized) Bloomberg Barclays US Aggregate 0670/- 7.510/0 443% 4.08% Bloomberg Barclays High Yield 6 450/0 7.110/0 8 58% 5.73% Bloomberg Barclays Government/Credit 0.79% 9.ii% 4.98% 4.42% Bloomberg Barclays Government -o.83% 8.00% 377% 3.531/. Bloomberg Barclays IntermediateGovt/Credit 0480/0 6.530/6 3.650/o 3.210/o Bloomberg Barclays Long Govt/Credit 1 680/6 16.120/o g 34% 8.780/0 Bloomberg Barclays Mortgage Backed Securities 0.24% 3.87% 3.05% 3.26% Bloomberg Barclays Muni 1.82% 5.21% 3.91% 4-54% Source- FactSet, Bloomberg, Morgan Stanley & Co Research, Morgan Stanley Wealth Management GIC Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offerto b Graystone financial instrument orto participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Mark Consukings°" Page"ALTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE WEALTH MANAGEMENT Morgan Stanley Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. The sole purpose of this material is to inform, and it in noway is intended to bean 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 maybe 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. 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 your specific investment objectives and financial position, may not be appropriate for you. Please see the Morgan Stanley Smith Barney LLC program disclosure brochure (the "Morgan Stanley ADV") for more information in the investment advisory programs available. The Morgan Stanley ADV is available at www.moraanstanlev.com/ADV. Sources of Data. Information in this material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness or timeliness. Third -party data providers make no warranties or representations relating to the accuracy, completeness ortimeliness ofthe data they provide and are not liable for any damages relating to this data. All opinions included in this material constitute the Firm'sjudgment as ofthe date of this material and are subject to change without notice. This material was not prepared by the research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Some historical figures may be revised due to newly identified programs, firm restatements, etc. Global Investment Manager Analysis (GIMA) Focus List, Approved List and Tactical Opportunities List; Watch Policy. GIMA usestwo methodsto evaluate investment products in applicable advisory programs: Focus (and investment products meeting this standard are described as being on the Focus List) and Approved (and investment products meeting this standard are described as being on the Approved List). In general, Focus entails a more thorough evaluation of an investment product than Approved. Sometimes an investment product may be evaluated using the Focus List process but then placed on the Approved List instead ofthe Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under either process and will no longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a `Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved." The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. Certain investment products on eitherthe Focus List or Approved List may also be recommended forthe Tactical Opportunities List based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change overtime. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "Manager Selection Process." The Global Investment Committee is a group of seasoned investment professionals who meet regularly to discuss the global economy and markets. The committee determines the investment outlook that guides our advice to clients. They continually monitor developing economic and market conditions, review tactical outlooks and recommend model portfolio weightings, as well as produce a suite of strategy, analysis, commentary, portfolio positioning suggestions and other reports and broadcasts. The GIC Asset Allocation Models are not available to be directly implemented as part of an investment advisory service and should not be regarded as a recommendation of any Morgan Stanley investment advisory service. The GIC Asset Allocation Models do not represent actual trading or any type of account or any type of investment strategies and none ofthe fees or other expenses (e.g. commissions, mark-ups, mark-downs, advisory fees, fund expenses) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models which, when compounded over a period ofyears, would decrease returns. Adverse Active AlphaSM 2.0 is a patented screening and scoring process designed to help identify high -quality equity and fixed income managers with characteristics that may lead to future outperformance relative to index and peers. While highly ranked managers performed well as a group in our Adverse Active Alpha model back tests, not all ofthe managers will outperform. Please note that this data may be derived from back -testing, which has the benefit of hindsight. In addition, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. Our view is that Adverse Active Alpha is a good starting point and should be used in conjunction with other information. Morgan Stanley Wealth Management's qualitative and quantitative investment manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors 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 differina risk Drofiles that miaht not be Graystone DISCLOSURES Consult ng' Page 8 WEALTH MANAGEMENT appropriate for all investors. Morgan Stanley 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 yo categories and (z) managers' perceived "excess value" by comparing the fair value expense ratios to actual expense ratios. Managers are then ranked within each category by their excess value to assign a Value Score. Our analysis suggests that greater levels of excess value have historically corresponded to attractive subsequent performance. For more information on the ranking models, please see Adverse Active AlphaSM 2.0: Scoring Active Managers According to Potential Alpha and Value Score: Scoring Fee Efficiency by Comparing Managers"'Fair Value" and Actual Expense Ratios. The whitepapers are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,o98 applies to the Adverse Active Alpha system and/or methodology. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. For more information on AAA, please see the Adverse Active Alpha Ranking Model and Selecting Managers with Adverse Active Alpha whitepapers. The whitepaper are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,o98 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. Strategy May Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account ("SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. In most Morgan Stanley Wealth Management investment advisory accounts, fees are deducted quarterly and have a compounding effect on performance. For example, on an advisory account with a 3% annual fee, if the gross annual performance is 6.00%, the compounding effect ofthe fees will result in a net performance of approximately 3.93%after one year, i afterthree years, and 21.23%afterfive years. Conflicts of Interest: GIMA's goal is to provide professional, objective evaluations in support ofthe Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, our business is subject to various conflicts of interest. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or indirect managers, and other business persons within Morgan Stanley Wealth 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 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 forthe opinions expressed by GIMA. 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 Stanley Wealth 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 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 ofthe fund so that lower management fee funds pay lower rates than those with higher management fees. Overlay Managers or Executing Sub -Managers ("managers") in some of Morgan Stanley's Separately Managed Account ("SMA") programs may affect transactions through broker -dealers otherthan Morgan Stanley or our affiliates. If your manager trades with another firm, you maybe assessed costs by the other firm in addition to Morgan Stanley's fees. Those costs will be included in the net price ofthe security, not separately reported on trade confirmations or account statements. Certain managers have historically directed most, if not all, of their trades to outside firms. Information provided by managers concerning trade execution away from Morgan Stanley is summarized at: www.moraanstanlev.com/wealth/investmentsolutions/odfs/adv/sotresoonse.odf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.moraanstanlev.com/ADV. or contact your Financial Advisor/Private Wealth Advisor. Graystone DISCLOSURES Consult ngs°" Page 9 WEALTH MANAGEMENT Morgan Stanley 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 bean 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 profile 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 CGCM 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. Please considerthe 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.moraanstanley.com, Please read it carefully before investing. An investment in a money market fund is not insured orguaranteed by the Federal Deposit Insurance Corporation or any othergovernment agency. Although the Fund seeks to preserve the value of your investment at Ss.00 pershare, it is possible to lose money by investing in the fund. 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; (q) 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 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 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." The Morgan Stanley Mobile App is currently available for iPhone® and iPad® from the App Store® and Android- on Google PlayTM. Standard messaging and data rates from your provider may apply. Subject to device connectivity. Apple@, the Apple logo, iPhone®, iPad®, and iPad Air® are trademarks of Apple Inc., registered in the US and other countries. Apple PayTm and iPad min iTm are trademarks of Apple Inc. App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc. 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KEY ASSET CLASS CONSIDERATIONS AND OTHER RISKS Investing in the markets entails the risk of market volatility. The value of all types of investments, including stocks, mutual funds, exchange -traded funds ("ETFs"), closed -end funds, and unit investment trusts, may increase or decrease over varying time periods. To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting standards. These risks may be magnified in emerging markets and frontier markets. Small- and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. In addition, the securities of small- and mid -capitalization companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and credit risk of the issuer. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. In the case of municipal bonds, income is generally exempt from federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. Treasury Inflation Protection Securities' (TIPS) coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPI). While the real rate of return is guaranteed, TIPS tend to offer a low return. Because the return ofTIPS is linked to inflation, TIPS may significantly underperform versus conventional U.S. Treasuries in times of low inflation. There is no guarantee that investors will receive par 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 higherthan 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 shares of a closed -end fund, shares may have a market price that is above or below NAV. Portfolios that invest a large percentage of assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period oftime. 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; Risks associated with the operations, personnel, and processes of the manager; and Risks associated with cybersecurity. As a diversified alobal financial services firm. Graystone DISCLOSURES Consulting' Page 11 WEALTH MANAGEMENT Morgan Stanley Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker -dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients , including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management. This is not a "research report" as defined by FINRA Rule 2243. or a "debt research report" as defined by FINRA Rule 2242 and was not prepared by the Research Departments of Morgan Stanley Smith Barney LLC or Morgan Stanley & Co. LLC or its affiliates. Certain information contained herein may constitute forward -looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward -looking statements. Clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. While the HFRI indices are frequently used, they have limitations (some of which are typical of other widely used indices). These limitations include survivorship bias (the returns of the indices may not be representative of all the hedge funds in the universe because ofthe tendency of lower performing funds to leave the index); heterogeneity (not all hedge funds are alike or comparable to one another, and the index may not accurately reflect the performance of a described style); and limited data (many hedge funds do not report to indices, and the index may omit funds, the inclusion of which might significantly affect the performance shown. The HFRI indices are based on information self -reported by hedge fund managers that decide on their own, at any time, whether or not they want to provide, or continue to provide, information to HFR Asset Management, L.L.C. Results forfunds that go out of business are included in the index until the date that they cease operations. Therefore, these indices may not be complete or accurate representations of the hedge fund universe, and may be biased in several ways. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Individual funds have specific tax risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum , are distributed by Morgan Stanley Wealth Management and certain of its affiliates, and (2) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley Wealth Management or any of its affiliates, (3) are not guaranteed by Morgan Stanley Wealth Management and its affiliates, and (y) involve investment risks, including possible loss of principal. Morgan Stanley Wealth Management is a registered broker -dealer, not a bank. This material is not to be reproduced or distributed to any other persons (otherthan professional advisors of the investors or prospective investors , as applicable, receiving this material) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. Past performance is no guarantee of future results. Actual results may vary. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. In Consulting Group's advisory programs, alternative investments are limited to US -registered mutual funds, separate account strategies and exchange -traded funds (ETFs) that seek to pursue alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives and options, which can increase volatility and the risk of investment loss. Alternative investments are not appropriate for all investors. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker -dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients , including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. A majority of Alternative Investment managers reviewed and selected by GIMA pay or cause to be paid an ongoing fee for distribution from their management fees to Morgan Stanley Wealth Management in connection with Morgan Stanley Wealth Management clients that purchase an interest in an Alternative Investment and in some instances pay these fees on the investments held by advisory clients. Morgan Stanley Wealth Management rebates such fees that are received and attributable to an investment held by an advisory client and retains the fees paid in connection with investments held by brokerage clients. Morgan Stanley Wealth Management has a conflict of interest in offering alternative investments because Morgan Stanley Wealth Management or our affiliates, in most instances, earn more money in your account from your investments in alternative investments than from other investment options. It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and offer complete transparency as to membership and construction methodology. As such, some believe that hedge fund index returns have certain biases that are not present in traditional indexes. Some of these biases inflate index performance, while others may skew performance negatively. However, many studies indicate that overall hedge fund index performance has been biased to the upside. Some studies suggest performance has been inflated by up to 26o basis points or more annually depending on the types of biases included and the time period studied. Although there are numerous potential biases that could affect hedge fund returns, we identify some of the more common ones throughout this paper. 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 Drivate Dlacements. Graystone DISCLOSURES Consult ngs°" Page 12 WEALTH MANAGEMENT Morgan Stanley 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 appearthat 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 lowerthe 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 afterthe 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 forthe risk capital portion of an investor's portfolio. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. Managed Futures are complex and not appropriate for all investors. Rebalancing does not protect against a loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. Past performance is no guarantee of future results. Actual results may vary Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley"), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.moraanstaniev.com/disclosures/dol. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. Annuities and insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC's licensed insurance agency affiliates. Indices are unmanaged and investors cannot directly invest in them. They are not subject to expenses orfees and are often comprised of securities and other investment instruments the liquidity of which is not restricted. A particular investment product may consist of securities significantly different than those in any index referred to herein. Composite index results are shown for illustrative purposes only, generally do not represent the performance of a specific investment, may not, for a variety of reasons, be an appropriate comparison or benchmark for a particular investment and may not necessarily reflect the actual investment strategy or objective of a particular investment. Consequently, comparing an investment to a particular index may be of limited use. This material is not a financial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fiduciary either underthe Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of i986, and any information in this report is not intended to form the primary basis for any investment decision by you, or an investment advice or recommendation for either ERISA or Internal Revenue Code purposes. Morgan Stanley Private Wealth Management will only prepare a financial plan at your specific request using Private Wealth Management approved financial planning signature. We may act in the capacity of a broker or that of an advisor. As your broker, we are not yourfiduciary and our interests may not always be identical to yours. Please consult with your Private Wealth Advisor to discuss our obligations to disclose to you any conflicts we may from time to time have and our duty to act in your best interest. We may be paid both by you and by others who compensate us based on what you buy. Our compensation, including that of your Private Wealth Advisor, may vary by product and over time. Investment and services offered through Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC, Member SIPC. Graystone DISCLOSURES Consult ngs°" Page 13 WEALTH MANAGEMENT Morgan Stanley For index, indicator and survey definitions referenced in this reportplease visit the following: httns://www. moraanstanlev. com/wealth-investmentsolutions/wmir-definitions GLOBAL INVESTMENT COMMITTEE (GIC) ASSET ALLOCATION MODELS: The Asset Allocation Models are created by Morgan Stanley Wealth Management's GIC. HYPOTHETICAL MODEL PERFORMANCE (GROSS): Hypothetical model performance results do not reflect the investment or performance of an actual portfolio following a GIC Strategy, but simply reflect actual historical performance of selected indices on a real-time basis over the specified period of time representing the G I C'sstrategic and tactical allocations as of the date ofthis 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 GIC Asset Allocation Model for the periods indicated. Despite the limitations of hypothetical performance, these hypothetical performance results allow clients and FinancialAdvisorsto obtain a sense of the risk/return trade-off of different asset allocation constructs. The hypothetical performance results in this report are calculated using the returns of benchmark indices for the asset classes, and not the returns of securities, fund or other investment products. Models may contain allocations to Hedge Funds, Private Equity and Private Real Estate. The benchmark indices for these asset classes are not issued on a daily basis. When calculating model performance on a day for which no benchmark index data is issued, we have assumed straight line growth between the index levels issued before and after that date. FEES 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 G I C 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 ill ustrates the compound effect fees have on investment returns: For example, if a portfolio's annual rate of return is i5%for 5 years and the account pays 5o basis points in fees per annum, the gross cumulative five-year return would be sos.i%and the five-year return net of fees would be 96.8%. Fees and/or expenses would apply to clients who invest in investments in an account based on these asset allocations, and would reduce clients' returns. The impact of fees and/or expenses can be material. Variable annuities are long-term investments designed for retirement purposes and maybe subject to market fluctuations, investment risk, and possible loss of principal. All guarantees, including optional benefits, are based on the financial strength and claims -paying ability of the issuing insurance company and do not apply to the underlying investment options. Optional riders may not be able to be purchased in combination and are available at an additional cost. Some optional riders must be elected at time of purchase. Optional riders maybe subject to specific limitations, restrictions, holding periods, costs, and expenses as specified by the insurance company in the annuity contract. If you are investing in a variable annuity through a tax -advantaged retirement plan such as an IRA, you will get no additional tax advantage from the variable annuity. Under these circumstances, you should only consider buying a variable annuity because of its other features, such as lifetime income payments and death benefits protection. Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, if taken prior to age 592h, maybe subject to a io%federaI 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 ore -tax Derformance is closelv Graystone DISCLOSURES Consult ng' Page 14 WEALTH MANAGEMENT tracked. Morgan Stanley Investing in commodities entails significant risks. Commodity prices maybe affected by a variety of factors at anytime, 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 subjectto 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; volatility (risk of loss); and leverage. Principal is returned on a monthly basis overthe 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 si000 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 io 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 s25 or si,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 lowerthan 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 priorto maturity. Additional call features may exist that could affect yield. Some $zS 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 fora minimum period —9i days during a 18o day window period, beginning go days before the ex -dividend date. Companies paying dividends can reduce or cut payouts at any time. Nondiversification: For a portfolio that holds a concentrated or limited number of securities, a decline in the value of these investments would cause the portfolio's overall value to decline to a greater degree than a less concentrated portfolio. The indices selected by Morgan Stanley Wealth Management to measure performance are representative of broad asset classes. Morgan Stanley Wealth Management retains the right to change representative indices at anytime. Because oftheir 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 ofthese 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 ofAmerica by Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management is not acting as a municipal advisorto 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. © 2021 Morgan Stanley Smith Barney LLC. Member SIPC. DISCLOSURES Page 15 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2020 Allocation Performance(%) Market Quarter Value % To YTD Fiscal 1 3 5 7 Since Inception P YTD YearYears Years Years Inception Date ($) Date Total Fund 19,694,312 1111 02/01/2011 Total Fund (net) 11.47 11.98 11.47 11.98 7.70 8.74 7.21 7.31 Policy Index 1 12.39 13.57 12.39 13.57 9.52 10.11 8.57 8.99 Highland - Large Cap Value 3,723,447 18.91 15.62 -0.33 15.62 -0.33 5.10 N/A N/A 7.05 08/01/2017 Highland - Large Cap Value (net) 15.48 -0.80 15.48 -0.80 4.46 N/A N/A 6.48 Russell 1000 Value 16.25 2.80 16.25 2.80 6.07 N/A N/A 7.45 Highland - Large Cap Growth 1,646,597 8.36 10.73 35.78 10.73 35.78 19.77 N/A N/A 20.81 08/01/2017 Highland - Large Cap Growth (net) 10.60 35.13 10.60 35.13 19.19 N/A N/A 20.29 Russell 1000 Gr 11.39 38.49 11.39 38.49 22.99 N/A N/A 23.69 iShares - Russell 1000 Growth ETF 1,582,000 8.03 N/A N/A N/A N/A N/A N/A N/A N/A 01/01/2021 iShares - Russell 1000 Growth ETF (net) N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Gr N/A N/A N/A N/A N/A N/A N/A N/A Boston Partners - SMID Value 2,348,394 11.92 30.27 4.26 30.27 4.26 4.17 N/A N/A 5.82 08/01/2017 Boston Partners - SMID Value (net) 30.01 3.18 30.01 3.18 3.04 N/A N/A 4.75 Russell 2500 VL 28.51 4.88 28.51 4.88 4.33 N/A N/A 5.98 Fiera Capital - SMID Growth 1,583,746 8.04 22.01 44.13 22.01 44.13 20.42 N/A N/A 21.80 08/01/2017 Fiera Capital - SMID Growth (net) 21.80 43.11 21.80 43.11 19.54 N/A N/A 20.97 Russell 2500 GR 25.89 40.47 25.89 40.47 19.91 N/A N/A 20.89 Highland, Intl Value 985,262 5.00 18.29 6.85 18.29 6.85 4.25 N/A 5.40 08/01/2017 Highland - Intl Value (net) 18.15 6.46 18.15 6.46 3.72 N/A N/A 4.93 MSCI EAFE Net 16.05 7.81 16.05 7.81 4.28 N/A N/A 5.75 MSCI EAFE VL Net 19.20 -2.63 19.20 -2.63 -1.24 N/A N/A 0.55 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 16 Consukings°" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2020 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 Since Inception Va Val % To YTD YTD Year Years Years Years Inception Date ( Date Renaissance - International Growth F 1,496,586 7.60 19.25 10.05 19.25 10.05 2.04 N/A N/A 3.01 08/01/2017 Renaissance - International Growth (net) 19.06 9.37 19.06 9.37 1.39 N/A N/A 2.40 MSCI AC World ex US Net 17.01 10.65 17.01 10.65 4.88 N/A N/A 6.50 Fixed Income Highland - Fixed Income Ek4,548,890 23.10 1.03 7.77 1.03 7.77 5.34 N/A N/A 4.95 08/01/2017 Highland - Fixed Income (net) 0.96 7.45 0.96 7.45 4.91 N/A N/A 4.57 Barclays Aggregate 0.67 7.51 0.67 7.51 5.34 N/A N/A 4.91 Intercontinental - Private Real Estate 724,155 3.68 0.48 1.63 0.48 1.63 7.44 N/A N/A 7.76 10/01/2017 Intercontinental - Private Real Estate (net) 0.43 0.84 0.43 0.84 6.12 N/A N/A 6.45 NCREIF Property Idx 1.15 1.61 1.15 1.61 4.89 N/A N/A 5.08 Barclays Aggregate 0.67 7.51 0.67 7.51 5.34 N/A N/A 5.03 Lazard -Global Infrastructure 973,000 4.94 N/A =A N/A N/A M N/A N/A N/A O1/01/2021 Lazard - Global Infrastructure (net) N/A N/A N/A N/A N/A N/A N/A N/A DJ Brookfield Gbl Infra Comp TR N/A N/A N/A N/A N/A N/A N/A N/A Receipt & Disbursement 90-Day T-Bills 82,235 0.42 0.00 0.28 0.00 0.28 1.08 N/A N/A 0.03 0.58 0.03 0.58 1.56 N/A N/A 1.23 08/01/2017 1.50 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 17 Consukings°" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2020 % Current Fiscal 1 3 5 7 Since Inception Quarter YTD Year Years Years Years Inception Date 01/31/2011 Domestic Equity Highland - Large Cap Value 18.91 15.53 15.53 0.68 4.90 N/A N/A 7.49 07/31/2017 Highland - Large Cap Growth 8.36 12.06 12.06 35.66 19.50 N/A N/A 20.10 07/31/2017 iShares - Russell 1000 Growth ETF 8.03 N/A N/A N/A N/A N/A N/A N/A Boston Partners - SMID Value 11.92 23.85 23.85 6.00 4.60 N/A N/A 5.99 07/31/2017 Fiera Capital - SMID Growth 8.04 21.74 21.74 43.59 19.56 N/A N/A 20.97 07/31/2017 International Equity Highland, Intl Value 5.00 18.02 18.02 6.74 3.84 N/A N/A 5.00 07/31/2017 Renaissance - International Growth IncomeFixed 7.60 19.08 19.08 9.92 1.78 N/A N/A 2.66 07/31/2017 Highland -Fixed Income Alternative 23.10 0.96 0.96 7.41 4.89 N/A N/A 4.53 07/31/2017 Investments Intercontinental - Private Real Estate 3.68 0.43 0.43 0.83 6.26 N/A N/A 6.34 10/15/2017 Lazard - Global Infrastructure 4.94 N/A N/A N/A N/A N/A N/A N/A Receipt & Disbursement 0.42 -1.60 -1.60 -3.39 -4.36 N/A N/A -3.97 07/31/2017 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 Graystone guarantee of future results. " Page 18 Consulting City of Sebastian Police Officers' Retirement Plan Total Fund - Executive Summary as of December 31, 2020 Manager Performance Chart 20.0 Manager Risk & Return 15.0 10.0 - 10.0 c4 8.0 - 5.0 6.0 - 0.0 Current Fiscal 1 3 5 7 Since Quarter YTD Year Years Years Years Inception 4.0 - Manager Annualized Performance 2.0- Current Fiscal 1 3 5 7 Inception Quarter YTD Year Years Years Years 02/01/2011 Total Fund 11.62 11.62 12.64 8.46 9.44 7.86 7.93 0.0 Policy Index 1 12.39 12.39 13.57 9.52 10.11 8.57 8.99 Differences -0.77 -0.77 -0.93 -1.06 -0.67 -0.71 -1.06 -2.0- Historic Asset Growth Current Fiscal 1 3 5 7 Inception Quarter YTD Year Years Years Years 02/01/2011 -4.0 Total Fund 4 Beginning Market Value 17,178 17,178 17,352 14,445 11,928 10,641 7,730 Net Contributions 545 545 311 1,471 1,414 1,939 2,841 Fees/Expenses -24 -24 -96 -325 -467 -576 -707 Income 80 80 339 1,070 1,712 2,203 2,830 Gain/Loss 1,915 1,915 1,788 3,034 5,107 5,488 7,001 Ending Market Value 19,694 19,694 19,694 19,694 19,694 19,694 19,694 Modern Portfolio Statistics Return Standard Beta Maximum Up Deviation Drawdown Capture Total Fund 7.93 9.63 0.98 -17.43 97.27 Policy Index 1 8.99 9.65 1.00 -17.24 100.00 i i i i i I I I .0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Risk (Standard Deviation %) Total Fund Q Policy Index 1 . 90-Day T-Bills Down Ratio Alpha Shrpe R-Squared Capture 106.73 -0.78 0.78 0.96 100.00 0.00 0.88 1.00 14.0 Inception Date 02/01/2011 02/01/2011 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 19 Consukings°" City of Sebastian Police Officers' Retirement Plan Total Fund - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $32.0 0 $24.0 G $16.0 R $8.0 $21.5 $19.7 $9.9 $0.0 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 1/19 7/19 1/20 12/20 — Total Fund Policy Index 1 — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Income Investment As of 10/01/2020 12/31/2020 Total Fund 17,177.80 19,524.42-18,979.60 -23.87 80.50 1,995.56 19,694.31 Distribution of Returns 45 30 28 V G W C 22 4Vi w 15 t3 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 Returns (%) 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 20 >5 Graystone Consulkings" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Executive Summary as of December 31, 2020 Manager Performance Chart 24.0 16.0 8.0 f1 0.0 _ -8.0 Current Fiscal 1 3 Since Quarter YTD Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Value 15.62 15.62 -0.33 5.10 7.05 Russell 1000 Value 16.25 16.25 2.80 6.07 7.47 Differences -0.63 -0.63 -3.13 -0.97 -0.42 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Highland - Large Cap Value Beginning Market Value 3,667 3,667 3,813 3,761 4,342 Net Contributions -500 -500 -116 -560 -1,511 Fees/Expenses -5 -5 -17 -64 -64 Income 21 21 92 284 326 Gain/Loss 540 540 -48 302 630 Ending Market Value 3,723 3,723 3,723 3,723 3,723 Modern Portfolio Statistics Manager Risk & Return 1o.s 9.0 - 7.5 - 1.5 - 0.0 - -1.5 1 1 1 P I I 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Highland -Large Cap Value p Russell 1000 Value . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Value 7.05 18.55 1.00 -28.00 99.28 100.96 -0.37 0.38 0.99 08/01/2017 Russell 1000 Value 7.47 18.50 1.00 -26.73 100.00 100.00 0.00 0.40 1.00 08/O1/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consukings°" Page 21 City of Sebastian Police Officers' Retirement Plan Highland Large Cap Value - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $6.3 $5.4 $4.5 $3.8 $3.6 $3.7 $2.7 $z.s $1.8 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 — Highland - Large Cap Value — Russell 1000 Value — Net Cash Flow Quarterly Change in Assets Market Value Net 7/19 10/19 1/20 4/20 7/20 10/20 12/20 As of Transfers Contributions Distributions Fees Expenses 10/01/2020 Highland - Large Cap Value 3,667,077.36 2,005,855.04-2,506,147.26-4,580.49 Distribution of Returns 16 12 V G p 8 C W w" 4 4 4 a" _IN. 0 9 Return On Market Value Investment As of 12/31/2020 561,242.21 3,723,446.86 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) 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 22 Graystone Consulkings" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of December 31, 2020 Allocation Communication Services Consumer Discretionary Consumer Staples Energy Financials , Health Care , Industrials , Information Technology Materials Real Estate Utilities 0.0 6.0 12.0 Highland - Large Cap Value j Russell 1000 Value Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 18.0 24.0 Perfortnance Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 30.0 -15.0 0.0 15.0 Highland - Large Cap Value Russell 1000 Value ■ 30.0 45.0 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 23 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 7.35 9.60 15.15 16.88 Consumer Discretionary 9.68 7.59 11.49 15.20 Consumer Staples 7.16 8.37 9.45 6.05 Energy 4.09 3.99 26.02 28.01 Financials 21.65 18.12 25.83 25.66 Health Care 15.17 14.33 8.59 8.46 Industrials 13.62 13.06 19.32 19.87 Information Technology 8.26 9.66 10.00 15.95 Materials 4.21 4.75 29.03 16.78 Real Estate 3.04 4.57 -1.74 11.86 Utilities 5.77 5.95 7.52 7.00 Total 100.00 100.00 15.92 16.15 Attribution Sector Stock Interaction Total -0.02 -0.17 0.04 -0.14 -0.02 -0.28 -0.08 -0.38 0.12 0.28 -0.04 0.37 0.01 -0.08 0.00 -0.07 0.34 0.03 0.01 0.37 -0.06 0.02 0.00 -0.04 0.02 -0.07 0.00 -0.05 0.00 -0.58 0.08 -0.49 0.00 0.58 -0.07 0.51 0.07 -0.62 0.21 -0.35 0.02 0.03 0.00 0.05 0.47 -0.85 0.15 -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. Graystone Page 24 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt Cap ($000) 126,453,105.11 133,777,387.17 Weight Weight Weight Return Median Mkt. Cap ($000) 48,113,110.62 11,447,923.75 (%) (%) (%) (%) Price/Eamings ratio 21.29 22.53 JPMorgan Chase & Co 2.87 2.25 0.62 33.19 Price/Book ratio 2.41 2.63 Johnson & Johnson 2.55 2.10 0.45 6.45 5 Yr. EPS Growth Rate (%) 4.85 5.72 Berkshire Hathaway Inc 2.33 2.55 -0.22 8.89 Beta (3 Years, Monthly) 1.00 1.00 Walt Disney Co (The) 2.17 1.91 0.26 46.02 Number of Stocks 100 855 Procter & Gamble Cc (The) 2.16 1.10 1.06 0.67 Debt to Equity Clb) 160.54 130.38 Bank of America Corp 2.06 1.37 0.69 26.60 Target Corp 1.82 0.52 1.30 12.61 Verizon Communications Inc 1.79 1.42 0.37 -0.20 Anthem Inc 1.66 0.35 1.31 19.90 Citigroup Inc 1.65 0.75 0.90 44.79 % of Portfolio 21.06 14.32 6.74 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return, (%) (%) (%) (%) (%) (%) (%) (%) Olin Corp 0.63 0.02 0.61 100.32 PulteGroup Inc 1.08 0.07 1.01 -6.54 Alliance Data Systems Corp 1.05 0.02 1.03 77.11 Newmont Corporation 0.59 0.28 0.31 -4.97 Occidental Petroleum Corp 0.18 0.08 0.10 73.02 Dominion Energy Inc 0.81 0.37 0.44 -3.96 Marathon Oil Corp 0.38 0.03 0.35 63.97 Home Depot Inc. (The) 1.30 0.83 0.47 -3.82 Lincoln National Corp 0.47 0.05 0.42 62.38 Fidelity Natioal Info Sery Inc. 0.90 0.51 0.39 -3.68 MasTec Inc. 0.58 0.00 0.58 61.56 Northrop Grumman Corp 0.94 0.02 0.92 -2.96 Micron Technology Inc. 0.54 0.49 0.05 60.09 McDonald's Corp 1.05 0.80 0.25 -1.66 Jones Lang LaSalle Inc 0.89 0.04 0.85 55.10 Prologis Inc 0.50 0.43 0.07 -0.38 US Foods Holding Corp 1.27 0.04 1.23 49.91 Verizon Communications Inc 1.79 1.42 0.37 -0.20 Walt Disney Co (The) 2.17 1.91 0.26 46.02 Procter & Gamble Cc (The) 2.16 1.10 1.06 0.67 of Portfolio 8.16 2.68 5.48 % of Portfolio 11.12 5.83 5.29 Graystone Page 25 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Growth - Executive Summary as of December 31, 2020 Manager Performance Chart Manager Risk & Return 60.0 35.0 45.0 30.0 - v 30.0 25.0 - a, 15.0 20.0 - WkAW 0.0 I5.0 - Current Fiscal 1 3 Since Quarter YID Year Years Inception 10.0 - Manager Annualized Performance s.o - Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 0.0 - Highland - Large Cap Growth 10.73 10.73 35.78 19.77 20.81 Russell 1000 Gr 11.39 11.39 38.49 22.99 23.73 -5.0- Differences -0.66 -0.66 -2.71 -3.22 -2.92 Historic Asset Growth -10.0 Current Fiscal 1 3 Inception -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Quarter YTD Year Years 08/01/2017 Risk (Standard Deviation %) Highland - Large Cap Growth 0Highland - Large Cap Growth Q Russell 1000 Gr Beginning Market Value 4,371 4,371 3,858 2,644 1,523 Net Contributions -3,188 -3,188 -3,500 -3,009 -2,060 . 90-Day T-Bills Fees/Expenses -5 -5 -20 -49 -49 Income 9 9 37 114 123 Gain/Loss 460 460 1,272 1,947 2,110 Ending Market Value 1,647 1,647 1,647 1,647 1,647 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Growth 20.81 18.72 1.01 -17.36 96.36 105.89 -2.58 1.03 0.99 08/01/2017 Russell 1000 Gr 23.73 18.46 1.00 -15.98 100.00 100.00 0.00 1.17 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulkings°" Page 26 City of Sebastian Police Officers' Retirement Plan Highland Large Cap Growth - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $9.0 0 $6.0 $3.0 — $0.0 ($3.0) 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 — Highland - Large Cap Growth — Russell 1000 Gr — Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions 10/01/2020 Highland - Large Cap Growth 4,371,267.20 4,192,024.77-7,379,866.99 Distribution of Returns 16 12 T V G p 8 C W w" 5 4 2 1 1 0 0 `$2.1 \$1.6 ($0.6) 10/19 1/20 4/20 7/20 10/20 12/20 Return On Market Value Fees Expenses Investment As of 12/31/2020 -5,462.84 468,634.69 1,646,596.83 10 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) 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 27 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation Communication Services Consumer Discretionary -� Consumer Staples - Energy - Financials - Health Care Industrials Information Technology Materials Real Estate Utilities 0.0 15.0 30.0 45.0 Highland - Large Cap Growth j Russell 1000 Gr Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 60.0 Perfortnance Communication Services - Consumer Discretionary - Consumer Staples - Energy - P Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 75.0 -30.0 -15.0 0.0 15.0 30.0 45.0 Highland - Large Cap Growth Russell 1000 Gr -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 28 0.6 0.8 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 11.50 10.86 14.41 13.81 Consumer Discretionary 17.17 16.47 11.43 12.84 Consumer Staples 4.23 4.77 10.23 7.43 Energy 0.00 0.07 0.00 28.80 Financials 0.86 1.97 -10.78 5.76 Health Care 15.67 14.04 2.50 8.54 Industrials 4.17 4.63 10.84 9.25 Information Technology 44.73 44.52 11.57 12.62 Materials 0.32 0.83 5.68 8.30 Real Estate 1.35 1.83 8.67 -1.69 Utilities 0.00 0.02 0.00 23.31 Total 100.00 100.00 10.11 11.39 Attribution Sector Stock Interaction Total 0.02 0.07 0.00 0.08 0.01 -0.23 -0.01 -0.23 0.02 0.13 -0.02 0.14 -0.01 0.00 0.00 -0.01 0.06 -0.33 0.18 -0.08 -0.05 -0.85 -0.10 -0.99 0.01 0.07 -0.01 0.08 0.00 -0.47 0.00 -0.47 0.02 -0.02 0.01 0.01 0.06 0.19 -0.05 0.20 0.00 0.00 0.00 0.00 0.14 -1.43 0.02 -1.27 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 29 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Growth - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt Cap ($000) 730,433,678.45 712,933,612.54 Weight Weight Weight Return Median Mkt. Cap ($000) 107,388,893.00 16,342,454.32 (%) (%) (%) (%) Price/Earnings ratio 42.43 40.00 Apple Inc 11.72 11.68 0.04 14.77 Price/Book ratio 13.47 12.01 Microsoft Corp 9.21 9.09 0.12 6.03 5 Yr. EPS Growth Rate (%) 31.20 28.84 Amazon.com Inc 7.59 7.53 0.06 3.44 Beta (3 Years, Monthly) 1.01 1.00 Facebook Inc 4.90 3.58 1.32 4.30 Number of Stocks 66 453 Visa Inc 2.91 2.01 0.90 9.55 Debt to Equity (°/u) 202.33 51.40 Alphabet Inc 2.76 2.20 0.56 19.21 Mastercard Inc 2.67 1.72 0.95 5.67 Tesla Inc 2.53 2.85 -0.32 64.49 Alphabet Inc 2.21 2.23 -0.02 19.59 Home Depot Inc. (ne) 1.89 0.78 1.11 -3.82 % of Portfolio 48.39 43.67 4.72 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return Enphase Energy Inc 1.30 0.10 1.20 112.46 Zoom Video Communications Inc 0.53 0.31 0.22 -28.25 Cloudflare Inc 0.62 0.05 0.57 85.07 Wayfair Inc 0.81 0.07 0.74 -22.40 Tesla Inc 2.53 2.85 -0.32 64.49 Vertex Pharmaceuticals Inc 1.03 0.33 0.70 -13.15 Pinterest Inc 0.80 0.12 0.68 58.76 salesforce.com Inc 1.01 0.97 0.04 -11.46 Inphi Corp 1.05 0.04 1.01 42.96 LendingTree Inc 0.69 0.01 0.68 -10.78 Zscaler Inc 1.09 0.08 1.01 41.95 Seagen Inc 0.89 0.12 0.77 -10.50 Uber Technologies Inc 1.32 0.29 1.03 39.80 Amgen Inc 0.94 0.74 0.20 -8.93 Twilio Inc 1.15 0.21 0.94 37.00 Lockheed Martin Corp 0.45 0.48 -0.03 -6.72 Axon Enterprise Inc 1.16 0.04 1.12 35.09 American Tower Corp 0.73 0.54 0.19 -6.63 Autodesk Inc. 1.25 0.24 1.01 32.18 Horizon Therapeutics Public Ltd Co 1.07 0.07 1.00 -5.83 % of Portfolio 12.27 4.02 8.25 % of Portfolio 8.15 3.64 4.51 Page 30 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Executive Summary as of December 31, 2020 Manager Performance Chart 45.0 30.0 0 v a 15.0 h L 0.0 Current Fiscal 1 3 Since Quartet YID Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Boston Partners - SMID Value 30.27 30.27 4.26 4.17 5.82 Russell 2500 VL 28.51 28.51 4.88 4.33 5.99 Differences 1.76 1.76 -0.62 -0.16 -0.17 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Boston Partners - SMID Value Beginning Market Value 836 836 897 720 672 Net Contributions 1,266 1,266 1,392 1,511 1,511 Fees/Expenses -2 -2 -7 -23 -25 Income 5 5 15 41 47 Gain/Loss 244 244 52 99 143 Ending Market Value 2,348 2,348 2,348 2,348 2,348 Modern Portfolio Statistics Manager Risk & Return 8.0 7.0 - 6.0 - 5.0 - 4.0 - >r R 3.0 - 2.0 - 1.0 - 0.0 - -1.0 1 1 1 1 1 1 1 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Risk (Standard Deviation %) Boston Partners - SMID Value Q Russell 2500 VL . 90-Day T-Bills 1 35.0 40.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Boston Partners - SMID Value 5.82 26.15 1.10 -38.80 109.23 110.28 -0.29 0.30 0.98 08/01/2017 Russell 2500 VL 5.99 23.66 1.00 -34.64 100.00 100.00 0.00 0.31 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consukings°" Page 31 City of Sebastian Police Officers' Retirement Plan Boston SMID Value - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $4.0 $3.0 .�. $2.0 v $1.0 $0.0 ($1.0) 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 — Boston Partners - SMID Value Russell 2500 VL Net Cash Flow Quarterly Change in Assets Boston Partners - SMID Value Distribution of Returns 12 $2.4 $2.3 $2.2 — , �"—j 10/19 1/20 4/20 7/20 10/20 12/20 Market Value Net eturn On As of Transfers Contributions Distributions Fees Expenses Investment t 10/01/2020 835,733.80 1,431,083.90-165,331.12-1,821.93 248,729.31 9 V G 6 5 .v. w 3 3 3 1 0 0 Market Value As of 12/31/2020 2,348,393.96 8 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 32 Graystone Consulkings" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of December 31, 2020 Allocation Communication Services Consumer SmerStaples Discretionary Consumer Staples Energy Financials , Health Care , Industrials , Information Technology Materials Real Estate Utilities 0.0 8.0 16.0 24.0 Boston Partners - SMID Value Russell 2500 VL Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 1 32.0 Perfortnance Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 40.0 0.0 15.0 30.0 45.0 Boston Partners - SMID Value Russell 2500 VL -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 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 1 1 60.0 75.0 90.0 1.4 1.6 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 1.27 3.46 37.54 28.25 Consumer Discretionary 10.63 13.35 27.05 26.75 Consumer Staples 3.35 3.63 13.32 21.41 Energy 3.26 3.19 57.31 45.11 Financials 26.64 19.66 33.90 35.29 Health Care 9.59 6.96 20.71 18.93 Industrials 16.50 17.76 32.01 27.15 Information Technology 17.69 8.65 30.55 36.42 Materials 7.00 6.82 26.92 32.75 Real Estate 2.01 12.03 26.39 19.80 Utilities 2.05 4.50 15.75 17.21 Total 100.00 100.00 30.11 28.38 Attribution Sector Stock Interaction Total 0.00 0.32 -0.20 0.12 0.04 0.04 -0.01 0.08 0.02 -0.29 0.02 -0.25 0.01 0.39 0.01 0.41 0.48 -0.27 -0.10 0.11 -0.25 0.12 0.05 -0.08 0.02 0.86 -0.06 0.82 0.73 -0.51 -0.53 -0.31 0.01 -0.40 -0.01 -0.40 0.86 0.79 -0.66 0.99 0.27 -0.07 0.04 0.24 2.20 0.99 -1.46 1.73 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 34 Consukings°" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt Cap ($000) 5,882,196.52 6,425,079.40 Weight Weight Weight Return Median Mkt. Cap ($000) 4,587,064.02 1,207,006.19 (%) (%) (%) (%) Price/Earnings ratio 17.43 19.65 SLM Corp 1.97 0.11 1.86 53.55 Price/Book ratio 2.07 2.22 WESCO International Inc 1.86 0.12 1.74 78.33 5 Yr. EPS Growth Rate (%) 8.82 6.95 Lithia Motors Inc. 1.64 0.10 1.54 28.55 Beta (3 Years, Monthly) 1.10 1.00 Graphic Packaging Holding Co 1.55 0.11 1.44 20.79 Number of Stocks 154 1,926 Qorvo Inc 1.44 0.00 1.44 28.88 Debt to Equity (°/u) 197.08 25.26 Change Healthcare inc 1.43 0.04 1.39 28.53 ASGN Inc 1.41 0.02 1.39 31.42 Huntington Bancshares Inc 1.41 0.00 1.41 39.41 Science Applications International Corp 1.35 0.15 1.20 21.24 Walker & Dunlop Inc 1.33 0.07 1.26 74.46 % of Portfolio 15.39 0.72 14.67 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) (%) (%) (%) (%) Championx Corp 1.02 0.09 0.93 91.49 Stride Inc 0.30 0.03 0.27 -19.40 Unisys Corp 0.51 0.03 0.48 84.44 Toll Brothers Inc. 0.30 0.15 0.15 -10.47 Steven Madden Ltd 0.87 0.05 0.82 81.13 Standard Motor Products Inc. 0.22 0.02 0.20 -8.90 First Citizens Bancshares Inc 0.44 0.11 0.33 80.29 PPD Inc 0.54 0.03 0.51 -7.49 Terex Corp 0.46 0.07 0.39 80.22 Hanesbrands Inc 0.32 0.15 0.17 -6.34 WESCO International Inc 1.86 0.12 1.74 78.33 RenaissanceRe Holdings Ltd 0.44 0.17 0.27 -2.10 Walker & Dunlop Inc 1.33 0.07 1.26 74.46 Rackspace Technology Inc 0.53 0.00 0.53 -1.19 Howmet Aerospace Inc 0.58 0.34 0.24 70.69 PRA Group Inc 0.48 0.05 0.43 -0.73 Covanta Holding Corp 0.28 0.03 0.25 70.47 Nomad Foods Ltd 0.56 0.00 0.56 -0.23 NCR Corp 0.97 0.15 0.82 69.69 National General Holdings Corp 0.73 0.04 0.69 1.42 % of Portfolio 8.32 1.06 7.26 % of Portfolio 4.42 0.64 3.78 Graystone Page 35 Consukings°" City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Executive Summary as of December 31, 2020 Manager Performance Chart 80.0 60.0 v 40.0 a 20.0 0.0 Current Fiscal 1 3 Since Quarter YID Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Fiera Capital - SMID Growth 22.01 22.01 44.13 20.42 21.80 Russell 2500 GR 25.89 25.89 40.47 19.91 20.93 Differences -3.88 -3.88 3.66 0.51 0.87 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/O1/2017 Fiera Capital - SMID Growth Beginning Market Value 1,018 1,018 868 750 669 Net Contributions 333 333 331 306 305 Fees/Expenses -2 -2 -6 -18 -19 Income 2 2 5 15 17 Gain/Loss 233 233 386 531 612 Ending Market Value 1,584 1,584 1,584 1,584 1,584 Modern Portfolio Statistics Manager Risk & Return 30.0 25.0 - 20.0 - 15.0 - 10.0 - �i 5.0 - 0.0 - -5.0 - -10.0 1 1 1 1 1 1 1 1 1 1 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Fiera Capital - SMID Growth O Russell 2500 GR . 90-Day T-Bills Return Standard Beta Maximum Up Down �pha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Fiera Capital - SMID Growth 21.80 21.86 0.95 -22.46 96.33 89.30 1.59 0.95 0.96 08/01/2017 Russell 2500 GR 20.93 22.52 1.00 -23.30 100.00 100.00 0.00 0.90 1.00 08/O1/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consukings°" Page 36 City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $2.0 0 $1.5 $1.0 R $0.5 $0.0 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 — Fiera Capital - SMID Growth Russell 2500 GR Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions 10/01/2020 Fiera Capital - SMID Growth 1,018,061.24 575,205.30-242,427.52 Distribution of Returns 16 12 V G p 8 C W w" 5 4 t 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 Returns (%) 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 10/19 1120 4/20 7/20 10/20 12/20 Return On Market Value Fees Expenses Investment As of 12/31/2020 -1,908.87 234,816.00 1,583,746.15 Iti 4To5 >5 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation Perfortnance Communication Services I— Communication Services Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Staples Energy Energy Financials Financials Health Care , Health Care Industrials , Industrials Information Technology Information Technology Materials Materials Real Estate Real Estate Utilities Utilities 0.0 10.0 20.0 30.0 40.0 50.0 0.0 25.0 50.0 Fiera Capital - SMID Growth 0 Fiera Capital - SMID Growth Russell 2500 GR 0 Russell 2500 GR Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - ■ 75.0 -5.6 -4.9 -4.2 -3.5 -2.8 -2.1 -1.4 -0.7 0.0 0.7 1.4 2.1 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 38 100.0 125.0 2.8 3.5 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 5.73 2.51 18.66 21.64 Consumer Discretionary 13.91 12.02 29.66 23.43 Consumer Staples 0.76 3.02 37.52 9.46 Energy 0.73 0.09 82.78 30.35 Financials 6.07 4.15 42.33 16.82 Health Care 33.42 30.56 12.29 22.97 Industrials 10.20 11.78 15.63 25.22 Information Technology 25.72 29.05 28.36 32.92 Materials 3.45 3.09 20.40 18.13 Real Estate 0.00 2.70 0.00 17.18 Utilities 0.00 1.04 0.00 22.81 Total 100.00 100.00 22.35 25.18 Attribution Sector Stock Interaction Total -0.11 -0.07 -0.10 -0.29 -0.03 0.75 0.12 0.83 0.36 0.85 -0.63 0.57 0.03 0.05 0.33 0.42 -0.16 1.06 0.49 1.39 -0.06 -3.27 -0.31 -3.64 0.00 -1.13 0.15 -0.98 -0.26 -1.32 0.15 -1.43 -0.03 0.07 0.01 0.05 0.22 0.00 0.00 0.22 0.02 0.00 0.00 0.02 -0.03 -3.02 0.22 -2.83 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 39 Consukings°" City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt. Cap ($000) 11,234,531.41 7,542,146.02 Weight Weight Weight Return Median Mkt. Cap ($000) 7,697,040.17 1,549,701.98 (%) (%) (%) (%) Price/Earnings ratio 30.57 36.85 Etsy Inc 4.40 0.92 3.48 46.27 Price/Book ratio 4.73 6.77 Arrowhead Pharmaceuticals Inc 2.71 0.34 2.37 78.19 5 Yr. EPS Growth Rate (%) 19.33 19.18 iRhythm Technologies Inc 2.54 0.28 2.26 -0.38 Beta (3 Years, Monthly) 0.95 1.00 Entegris Inc 2.26 0.53 1.73 29.40 Number of Stocks 75 1,325 Synchrony Financial 2.18 0.00 2.18 33.80 Debt to Equity Clb) 10.26 112.95 Citizens Financial Group Inc 2.09 0.00 2.09 43.53 Okra Inc 2.03 0.00 2.03 18.90 Valeant Pharmaceuticals Intl Inc 1.97 0.00 1.97 33.85 GoDaddy Inc 1.93 0.00 1.93 9.19 Berry Global Group Inc 1.89 0.11 1.78 16.29 of Portfolio 24.00 2.18 21.82 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return Championx Corp 0.95 0.00 0.95 91.49 bluebird bin Inc 0.50 0.06 0.44 -19.80 Western Alliance Bancorporation 1.17 0.00 1.17 90.53 Exelixis Inc 1.43 0.10 1.33 -17.91 Revolve Group Inc 0.08 0.00 0.08 89.71 FibroGen Inc 0.65 0.12 0.53 -9.80 Arrowhead Pharmaceuticals Inc 2.71 0.34 2.37 78.19 BeiGene Ltd 1.24 0.00 1.24 -9.79 WPX Energy Inc 0.75 0.00 0.75 66.33 Viking Therapeutics Inc 0.19 0.00 0.19 -3.27 SeaWorld Entertainment Inc 1.25 0.03 1.22 60.19 Dick's Sporting Goods Inc. 1.24 0.00 1.24 -2.33 PVH Corp 1.82 0.00 1.82 57.43 Tractor Supply Co 1.81 0.00 1.81 -1.62 NovoCure Ltd 1.80 0.76 1.04 55.46 Fortune Brands Home & Security Inc 0.73 0.00 0.73 -0.64 Advanced Energy Industries Inc. 0.91 0.16 0.75 54.07 iRhythm Technologies Inc 2.54 0.28 2.26 -0.38 Veracyte Inc 0.97 0.12 0.85 50.63 Neurocrine Biosciences Inc 1.29 0.39 0.90 -0.32 of Portfolio 12.41 1.41 11.00 % of Portfolio 11.62 0.95 10.67 Graystone Page 40 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - International Value - Executive Summary as of December 31, 2020 Manager Performance Chart 32.0 Manager Risk & Return 24.0 7.2 - E 16.0 v P'. 6.3 - 8.0 5.4 - 0.0 4.5_ Current Fiscal 1 3 Since Quarter YID Year Years Inception 3.6 - Manager Annualized Performance Current Fiscal 1 3 Inception 2.7 - Quarter YTD Year Years 08/01/2017 Highland - Ind Value 18.29 18.29 6.85 4.25 5.40 18 - MSCI SAFE Net 16.05 16.05 7.81 4.28 5.76 Differences 2.24 2.24 -0.96 -0.03 -0.36 0.9 - Historic Asset Growth Current Quarter Highland - Ind Value Beginning Market Value 722 Net Contributions 130 Fees/Expenses -1 Income 6 Crain/Loss 128 Ending Market Value 985 Modern Portfolio Statistics Return Highland - Intl Value 5.40 MSCI EAFE Net 5.76 Fiscal 1 3 Inception YTD Year Years 08/01/2017 722 802 740 701 130 129 154 154 -1 -3 -11 -11 6 16 53 59 128 41 49 83 985 985 985 985 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation °/u) Highland - Ind Value O MSCI EAFE Net . 90-Day T-Bills Standard Maximum Beta Up Down Alpha Sharpe Inception R-Squared Deviation Drawdown Capture Capture Ratio Date 19.50 1.12 -28.37 112.36 116.10 -0.71 0.29 0.94 08/01/2017 16.83 1.00 -22.83 100.00 100.00 0.00 0.33 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 41 Consulkings°" City of Sebastian Police Officers' Retirement Plan Highland - International Value - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $1.2 1 0 $1.0 $1.0 $1.0 G � $0.8 ^ /$0.8 � $0.6 $0.4 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 10/19 1/20 4/20 7/20 10/20 12/20 — Highland -Intl Value — MSCI SAFE Net — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2020 12/31/2020 Highland - Intl Value 721,590.03 160,467.38 -30,598.15-900.98 134,703.29 985,261.57 Distribution of Returns 12 9 8 V L' 6 w w 3 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 42 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of December 31, 2020 Allocation Perfortnance Communication Services Communication Services Consumer Discretionary - Consumer Discretionary Consumer Staples - Consumer Staples Energy - Energy Financials - Financials Health Care Health Care Industrials Industrials a Information Technology - Information Technology -� Materials - Materials Real Estate Real Estate -� Utilities - Utilities - Other - Other 0.0 8.0 16.0 24.0 32.0 40.0 0.0 10.0 20.0 30.0 40.0 50.0 Highland - Intl Value MSCI EAFE Net 0 Highland - Intl Value 0 MSCI EAFE Net Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - I Other - ' -2.0 -1.6 -1.2 -0.8 -0.4 0.0 0.4 0.8 1.2 1.6 2.0 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 43 60.0 2.4 2.8 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 8.57 5.46 34.69 15.72 Consumer Discretionary 24.40 11.86 20.47 22.11 Consumer Staples 7.73 11.94 15.95 6.95 Energy 2.72 2.77 37.09 31.20 Financials 7.48 15.07 31.24 25.33 Health Care 10.93 14.37 7.86 3.90 Industrials 5.94 15.23 26.56 15.76 Information Technology 23.56 8.62 12.90 16.63 Materials 5.62 7.62 5.21 20.13 Real Estate 0.00 3.10 0.00 14.51 Utilities 0.88 3.97 4.07 13.43 Other 2.17 0.00 18.41 0.00 Total 100.00 100.00 18.75 15.90 Attribution Sector Stock Interaction Total -0.01 1.04 0.59 1.62 0.78 -0.20 -0.21 0.38 0.38 1.07 -0.38 1.07 -0.01 0.16 0.00 0.15 -0.72 0.89 -0.45 -0.27 0.41 0.57 -0.14 0.84 0.01 1.65 -1.00 0.66 0.11 -0.32 -0.56 -0.77 -0.08 -1.14 0.30 -0.92 0.04 0.00 0.00 0.04 0.08 -0.37 0.29 -0.01 0.05 0.00 0.00 0.05 1.05 3.35 -1.56 2.85 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 44 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt Cap ($000) 133,736,378.59 70,364,732.40 Weight Weight Weight Return Median Mkt. Cap ($000) 46,650,120.94 12,356,819.62 (%) (%) (%) (%) Price/Earnings ratio 21.09 21.83 Sony Corp 8.54 0.79 7.75 31.73 Price/Book ratio 2.53 2.66 STMicroelectronics NV 6.32 0.15 6.17 21.10 5 Yr. EPS Growth Rate (%) 9.07 3.69 Philips Electronics NV 4.63 0.31 4.32 14.89 Beta (3 Years, Monthly) 1.12 1.00 Siemens AG 4.57 0.70 3.87 24.63 Number of Stocks 54 876 Hitachi Ltd 3.77 0.24 3.53 17.27 Debt to Equity (%) 97.92 113.14 Kyocera Corp 3.60 0.12 3.48 7.82 Glaxosmithkline PLC 3.31 0.58 2.73 -0.95 Taiwan Semiconductor 3.27 0.00 3.27 35.07 SAP AG 3.13 0.87 2.26 -16.31 Anheuser-Busch InBev SA/NV 3.02 0.34 2.68 29.75 % of Portfolio 44.16 4.10 40.06 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) (%) (%) (%) (%) Capri Holdings Ltd 0.50 0.00 0.50 133.33 iQIYI Inc 0.31 0.00 0.31 -22.59 Ovintiv Inc 0.52 0.00 0.52 77.11 Alibaba Group Holding Ltd 1.39 0.00 1.39 -20.83 Arcelormittal SA 0.50 0.10 0.40 72.83 Barrick Gold Corp 1.49 0.00 1.49 -18.64 Baidu Inc 2.07 0.00 2.07 70.82 SAP AG 3.13 0.87 2.26 -16.31 Invesco Ltd 0.68 0.00 0.68 54.39 Bright Scholar Education Holdings Ltd 0.21 0.00 0.21 -9.86 Aegon NV 0.32 0.04 0.28 54.30 Unilever PLC 2.10 1.00 1.10 -1.32 Copa Holdings SA 0.60 0.00 0.60 53.42 Glaxosmithkline PLC 3.31 0.58 2.73 -0.95 Walt Disney Co (The) 2.69 0.00 2.69 46.02 Fox Corp 0.43 0.00 0.43 3.25 Taiwan Semiconductor 3.27 0.00 3.27 35.07 National Grid plc 1.12 0.26 0.86 4.07 ING Groep NV 1.17 0.23 0.94 33.33 Kyocera Corp 3.60 0.12 3.48 7.82 of Portfolio 12.32 0.37 11.95 % of Portfolio 17.09 2.83 14.26 Page 45 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Executive Summary as of December 31, 2020 Manager Performance Chart 32.0 24.0 v 16.0 a 8.0 0.0 Current Fiscal 1 3 Since Quartet YID Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Renaissance - International Growth 19.25 19.25 10.05 2.04 3.01 MSCI AC World ex US Net 17.01 17.01 10.65 4.88 6.51 Differences 2.24 2.24 -0.60 -2.84 -3.50 Historic Asset Growth Current Fiscal 1 3 Inception Quarter YTD Year Years 08/01/2017 Renaissance - International Growth Beginning Market Value 1,041 1,041 1,134 1,056 1,016 Net Contributions 250 250 249 377 376 Fees/Expenses -2 -2 -6 -20 -22 Income 4 4 18 69 75 Gain/Loss 204 204 102 15 51 Ending Market Value 1,497 1,497 1,497 1,497 1,497 Modern Portfolio Statistics Manager Risk & Return 9.0 7.5 - 6.0 - 4.5 - R 3.0 - 1.5 - 0.0 - -1.5 1 1 P I I P 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Renaissance - International Growth Q MSCI AC World ex US Net . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Renaissance - International Growth 3.01 19.48 1.13 -33.88 99.50 114.23 -3.75 0.18 0.95 08/01/2017 MSCI AC World ex US Net 6.51 16.87 1.00 -24.30 100.00 100.00 0.00 0.37 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulkings°" Page 46 City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $2.0 1 $1.6 $1.2 $0.4 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 10/19 — Renaissance -International Growth — MSCI AC World ex US Net Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions 10/01/2020 Renaissance - International Growth 1,040,561.81 397,399.07 Distribution of Returns 16 1/20 4/20 7/20 10/20 12/20 Return On Market Value Distributions Fees Expenses Investment As of 12/31/2020 -147,621.29-1,701.10 - 207,947.96 1,496,586.45 12 c� 9 G 8 v 6 w 5 4 3 3 2 2 1 0 IL 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 Returns (%) 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 8 2 4To5 >5 Graystone Consulkings" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation Perfortnance Communication Services Consumer Discretionary Consumer Staples Energy Financials , Health Care , Industrials , Information Technology Materials Real Estate Utilities 0.0 5.0 10.0 15.0 20.0 Renaissance - International Growth MSCI AC World ex US Net Total Attribution Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 25.0 0.0 10.0 20.0 30.0 Renaissance - International Growth MSCI AC World ex US Net -1.8 -1.5 -1.2 -0.9 -0.6 -0.3 0.0 0.3 0.6 0.9 1.2 1.5 1.8 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 40.0 50.0 2.1 2.4 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of December 31, 2020 Allocation-10/01/2020 Performance - Quarter Ending December 31, 2020 Portfolio Benchmark Portfolio Benchmark Communication Services 13.26 7.45 12.81 13.42 Consumer Discretionary 10.32 13.80 27.26 15.61 Consumer Staples 9.03 9.74 4.83 8.45 Energy 3.87 4.18 32.21 22.54 Financials 11.21 16.92 29.06 24.68 Health Care 14.09 10.49 6.07 6.00 Industrials 10.31 11.71 29.12 16.17 Information Technology 17.92 11.74 28.89 24.38 Materials 8.45 7.89 10.65 19.90 Real Estate 0.00 2.71 0.00 12.25 Utilities 1.54 3.36 13.35 14.33 Total 100.00 100.00 19.59 16.86 Attribution Sector Stock Interaction Total -0.20 -0.05 -0.04 -0.28 0.04 1.61 -0.41 1.25 0.06 -0.35 0.03 -0.27 -0.02 0.40 -0.03 0.36 -0.45 0.74 -0.25 0.04 -0.39 0.01 0.00 -0.38 0.01 1.52 -0.18 1.34 0.46 0.53 0.28 1.27 0.02 -0.73 -0.05 -0.76 0.13 0.00 0.00 0.13 0.05 -0.03 0.02 0.03 -0.29 3.65 -0.63 2.73 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 49 Consukings°" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Portfolio Characteristics as of December 31, 2020 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt Cap ($000) 87,729,771.83 97,595,686.20 Weight Weight Weight Return Median Mkt. Cap ($000) 28,744,129.49 9,465,971.71 (%) (%) (%) (%) Price/Earnings ratio 21.64 20.67 Taiwan Semiconductor 2.70 1.84 0.86 35.07 Price/Book ratio 3.03 2.74 Tokyo Electron Ltd 2.57 0.22 2.35 43.61 5 Yr. EPS Growth Rate (%) 13.47 6.01 Vipshop Holdings Limited 2.49 0.05 2.44 79.73 Beta (3 Years, Monthly) 1.13 1.00 AerCap Holdings NV 2.45 0.00 2.45 80.94 Number of Stocks 56 2,361 Shin-Etsu Chemical Co Ltd 2.31 0.24 2.07 34.74 Debt to Equity Clb) 73.24 109.04 Geely Automobile Holdings Ltd 2.25 0.08 2.17 71.99 Stellantis NV 2.20 0.06 2.14 50.59 Infineon Technologies 2.18 0.20 1.98 35.82 Dr Reddy'S Laboratories Ltd 2.18 0.03 2.15 2.49 Lenovo Group Ltd 2.17 0.03 2.14 44.83 % of Portfolio 23.50 2.75 20.75 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) (%) (%) (%) (%) AerCap Holdings NV 2.45 0.00 2.45 80.94 Alibaba Group Holding Ltd 1.84 1.74 0.10 -20.83 Vipshop Holdings Limited 2.49 0.05 2.44 79.73 Kirkland Lake Gold Ltd 1.60 0.04 1.56 -14.93 Geely Automobile Holdings Ltd 2.25 0.08 2.17 71.99 Koninklijke Ahold Delhaize NV 1.40 0.12 1.28 -4.50 Icici Bank Ltd 1.95 0.15 1.80 51.17 JOYY Inc 1.44 0.02 1.42 -0.26 Stellantis NV 2.20 0.06 2.14 50.59 Nomad Foods Ltd 1.68 0.00 1.68 -0.23 Acs, Actividades De Constmccion Y Servicios SA 1.95 0.04 1.91 46.28 Roche Holding AG 1.74 0.97 0.77 1.91 PT Bank Rakyat Indonesia TBK 1.75 0.07 1.68 45.28 Icon PLC 1.93 0.00 1.93 2.04 Lenovo Group Ltd 2.17 0.03 2.14 44.83 Dr Reddy'S Laboratories Ltd 2.18 0.03 2.15 2.49 Tokyo Electron Ltd 2.57 0.22 2.35 43.61 WH Group Ltd 1.37 0.03 1.34 3.45 Neste OYJ 1.99 0.12 1.87 39.01 Canadian National Railway 1.87 0.31 1.56 3.61 % of Portfolio 21.77 0.82 20.95 % of Portfolio 17.05 3.26 13.79 Graystone Page 50 Consukings°" City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Executive Summary as of December 31, 2020 Manager Performance Chart Manager Risk & Return 12.0 6.4 9.0 5.6 - 8 6.0 4.8 - � � 3.0 4.0 - 0.0 Current Fiscal 1 3 Since 3.2 - Quarter YID Year Years Inception Manager Annualized Performance 2.4- Current Fiscal 1 3 Inception 1.6- Quarter YTD Year Years 08/O1/2017 Highland - Fixed Income 1.03 1.03 7.77 5.34 4.95 Barclays Aggregate 0.67 0.67 7.51 5.34 4.92 0.8 - Differences 0.36 0.36 0.26 0.00 0.03 Historic Asset Growth 0.0 Current Fiscal 1 3 Inception -2.4 -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 Quarter YTD Year Years 08/01/2017 Risk (Standard Deviation %) Highland - Fixed Income Highland - Fixed Income O Barclays Aggregate Beginning Market Value 4,147 4,147 3,898 3,904 3,980 Net Contributions 361 361 360 85 -27 . 90-Day T-Bills Fees/Expenses -3 -3 -12 -47 -47 Income 26 26 116 356 416 Gain/Loss 17 17 187 251 227 Ending Market Value 4,549 4,549 4,549 4,549 4,549 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Fixed Income 4.95 4.86 0.96 -4.16 97.97 89.19 0.28 0.71 0.40 08/01 /2017 Barclays Aggregate 4.92 3.21 1.00 -2.46 100.00 100.00 0.00 1.06 1.00 08/O1/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulkings°" Page 51 City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $24.0 1 0 $16.0 a $8.0 R $4.5 $0.0 $1.0 „ ($1.0) ($8.0) 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 1/19 7/19 1/20 12/20 — Highland -Fixed Income Barclays Aggregate — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2020 12/31/2020 Highland - Fixed Income 4,147,352.76 2,742,497.08-2,381,187.32-3,106.94 43,334.86 4,548,890.44 Distribution of Returns 45 32 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 Too 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) 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 Graystone Consukings" City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Executive Summary as of December 31, 2020 Manager Performance Chart Manager Risk & Return 12.0 10.5 9.0 9.0 - 6.0 7.5 - � 3.0 hi 6.0 - 0.0 Current Fiscal 1 3 Since 4.5 - Quarter YID Year Years Inception Manager Annualized Performance 3.0 - Current Fiscal 1 3 Inception 1.5 - Quarter YTD Year Years 10/01/2017 Intercontinental - Private Real Estate 0.48 0.48 1.63 7.44 7.76 NCREIF Property Idx 1.15 1.15 1.61 4.89 5.08 0.0 - Differences -0.67 -0.67 0.02 2.55 2.68 Historic Asset Growth -1.5 Current Fiscal 1 3 Inception -1.2 -0.6 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 Quarter YTD Year Years 10/O1/2017 Risk (Standard Deviation %) Intercontinental - Private Real Estate 0Intercontinental - Private Real Estate O NCREIF Property Idx Beginning Market Value 725 725 733 115 112 Net Contributions -4 -4 -15 486 486 . 90-Day T-Bills Fees/Expenses - - -6 -26 -26 Income - - - - - Gain/Loss 3 3 12 149 153 Ending Market Value 724 724 724 724 724 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Intercontinental - Private Real Estate 7.76 3.68 1.11 -0.02 142.66 2.02 2.05 1.66 0.57 10/01/2017 NCREIF Property Idx 5.08 2.52 1.00 -0.99 100.00 100.00 0.00 1.40 1.00 10/O1/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulkings°" Page 53 City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Change in Assets & Distribution of Returns as of December 31, 2020 Historic Change in Assets $1.2 1 $0.9 $0.6 v tl $0.3 v $0.0 ($0.3) 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 10/19 — Intercontinental - Private Real Estate — NCREIF Property Ids — Net Cash Flow Quarterly Change in Assets Intercontinental - Private Real Estate Distribution of Returns 45 $0.7 $0.7 $0.6 1/20 4/20 7/20 10/20 12/20 Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2020 12/31/2020 724,831.00-3,791.00-338.00 - 3,453.00 724,155.00 29 0 0 0 0 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 Returns (%) 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 0 0 4To5 >5 Graystone Consulkings" City of Sebastian Police Officers' Retirement Plan Policy Index History As of December 31, 2020 Feb-2011 S&P 500 Total Return 48.00 Barclays Govt/Credit Bond 49.00 90-Day T-Bills 3.00 Jul-2011 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jan-2016 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jul-2017 Russell 1000 Value 21.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 21.25 Russell 2500 VL 5.00 Russell 2500 GR 5.00 MSCI AC World ex US Net 7.50 Alerian MLP Index 5.00 NCREIF Property Idx 5.00 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. Graystone Page 55 Consukings°" Performance Appendix Performance Data beloic is net of fees. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a fill disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. 3 EWYears 5 IF 10 Since W inception Account Name Years Years inception Date Boston Partners - SMID Value 30.01 3.18 3.18 3.04 4.51 07/14/2017 Fiera Capital - SMiD Growth 21.80 43.11 43.11 19.54 20.12 07/20/2017 Highland - Fixed Income 0.96 7.45 7.45 4.91 6.15 5.91 5.91 01/31/2011 Highland - Intl Value 18.15 6.46 6.46 3.72 5.48 07/17/2017 Highland - Large Cap Growth 10.60 35.13 35.13 19.19 19.87 07/17/2017 Highland - Large Cap Value 15.48 -0.80 -0.80 4.46 6.39 07/17/2017 Intercontinental - Private Real Estate 0.43 0.84 0.84 6.12 6.45 10/01/2017 Lazard - Global Infrastructure 0.00 12/31/2020 Receipt & Disbursement -1.96 -4.13 -4.13 -5.72 -4.78 09/01/2017 Renaissance - International Growth 19.06 9.37 9.37 1.39 2.44 07/17/2017 iShares - Russell 1000 Growth ETF 0.00 12/31/2020 All performance above are Time Weighted(TWR) performance Glossary of Terms performance. Active Contribution Return: The gain or loss percentage of an investment relative to the performance of Core: Refers to an investment strategy mandate that is blend of growth and value styles without a the investment benchmark. pronounced tilt toward either style. Active Exposure: The percentage difference in weight of the portfolio compared to its policy benchmark Active Return: Arithmetic difference between the manager's return and the benchmark's return over a specified time period. Actual Correlation: A measure of the correlation (linear dependence) between two variables X and Y, with a value between +1 and -1 inclusive. This is also referred to as coefficient of correlation. Alpha: A measure of a portfolio's time weighted return in excess of the market's return, both adjusted for risk. A positive alpha indicates that the portfolio outperforined the market on a risk -adjusted basis, and a negative alpha indicates the portfolio did worse than the market. Best Quarter: The highest quarterly return for a certain time period. Beta: A measure of the sensitivity of a portfolio's time weighted return (net of fees) against that of the market. A beta greater than 1.00 indicates volatility greater than the market. Consistency, The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's Cumulative Selection Return (Cumulative Return): Cumulative investment performance over a specified period of time. Distribution Rate: The most recent distribution paid, annualized, and then divided by the current market price. Distribution rate may consist of investment income, short-term capital gains, long-term capital gains, and/or return of capital. Down Market Capture: The ratio of average portfolio returns over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Downside Risk! A measure similar to standard deviation, but focuses only on the negative movements of the return series. Tt is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the value, the more risk the product has. Downside Semi Deviation: A statistical calculation that measures the volatility of retums below a minimum acceptable return. This return measure isolates the negative portion of volatility: the larger the number, the greater the volatility. Drawdown: A drawdown is the peak -to -trough decline during a specific period of an investment, fund or commodity. Excess over Benchmark: The percentage gain or loss of an investment relative to the investment's benchmark. Excess Return: Arithmetic difference between the manager's return and the risk -free return over a specified time period. Growth: A diversified investment strategy which includes investment selections that have capital appreciation as the primary goal, with little or no dividend payouts. These strategies can include reinvestment in expansion, acquisitions, and/or research and development opportunities. Growth of Dollar: The aggregate amount an investment has gained or lost over a certain time period, also referred to as Cumulative Return, stated in terms of the amount to which an initial dollar investment would have grown over the given time period. Investment Decision Process (IDP): A model for structuring the investment process and implementing the correct attribution methodologies. The IDP includes every decision made concerning the division of the assets under management over the various asset categories. To analyze each decisions contribution to the total return, a modeling approach must measure the marginal value of every individual decision. In this respect, the hierarchy of the decisions becomes very important. We therefore use the TDP model, which serves as a proper foundation for registering the decisions and relating them to each other. Information Ratio: Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Jensen's Alpha: The Jensen's alpha measure is a risk -adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. This metric is also commonly referred to as alpha.. Kurtosis: A statistical measure that is used to describe the distribution, or skewness, of observed data around the mean, sometimes referred to as the volatility of volatility. Maximum Drawdown: The drawdown is defined as the percent retrenchment from a fund's peak to the fund's trough value. Tt is in effect from the time the fund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peak to the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). Tt measures the largest percentage drawdown that has occurred in any fund's data record. Modern Portfolio Theory (MPT): An investment analysis theory on how risk -averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent pan of higher reward. Mutual Fund (MF): An investment program funded by shareholders that trade in diversified holdings and is professionally managed. Peer Group: A combination of funds that share the same investment style combined as a group for comparison purposes. Peer/ Plan Sponsor Universe: A combination of asset pools of total plan investments by specific sponsor and plan types for comparison purposes. Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transaction data for these assets are not processed or maintained by us. Common examples of these include life insurance, some annuities and some assets held externally. Performance Statistics: A generic term for various measures of investment performance measurement terms. Portfolio Characteristics: A generic term for various measures of investment portfolio characteristics. Preferred Return: A term used in the private equity (PE) world, and also referred to as a "Hurdle Rate." Tt refers to the threshold return that the limited partners of a private equity fund must receive, prior to the PE firm receiving its carried interest or "carry." Ratio of Cumulative Wealth: A defined ratio of the Cumulative Return of the portfolio divided by the Cumulative Return of the benchmark for a certain time period. Regression Based Analysis: A statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables Residual Correlation: Within returns -based style analysis, residual correlation refers to the portion of a strategy's return pattern that cannot be explained by its correlation to the asset -class benchmarks to which it is being compared. Return: A rate of investment performance for the specified period. Rolling Percentile Ranking: A measure of an investment portfcho's ranking versus a peer group for a specific rolling time period (i.e. Last 3 Years, Last 5 years, etc.). R-Squared: The percentage of a ponfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. SA/CF (Separate Account/Comingled Fund)! Represents an acronym for Separate Account and Commingled Fund investment vehicles. Sector Benchmark: A market index that serves as a proxy for a sector within an asset class. Sharpe Ratio: Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk -adjusted performance results in. Standard Deviation: A statistical measure of the range of a portfolio's performance; the variability of a return around its average return over a specified time period. Total Fund Benchmark: The policy benchmark for a complete asset pool that could consist of multiple investment mandates. Total Fund Composite: The aggregate of multiple portfolios within an asset pool or household. Tracking Error: A measure of standard deviation for a portfolio's investment performance, relative to the performance of an appropriate market benchmark. Treynor Ratio: A ratio that divides the excess return (above the risk free rate) by the portfolio's beta to arrive at a unified measure of risk adjusted return. Tt is generally used to rank portfolios, funds and benchmarks. A higher ratio is indicative of higher returns per unit of market risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing market risk. Up Market Capture: The ratio of average portfolio returns over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Upside Semi Deviation: A statistical calculation that measures the volatility of returns above an acceptable return. This return measure isolates the positive portion of volatility: the larger the number, the greater the volatility. Value: A diversified investment strategy that includes investment selections which tend to trade at a lower price relative to its dividends, earnings, and sales. Common attributes are stocks that include high dividend, low price -to -book ratio, and/or low price -to -earnings ratio. Worst Quarter: The lowest rolling quarterly return for a certain time period Information Disclosures Perfornnance 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 activhy, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a fidl disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition and/or investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. The performance data shown reflects past performance, which does not guarantee f tune 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 ftnd's investment objectives, risks, charges and expenses before investing. The prospectus and, if available the summary prospectus, contains this and other information that should be read carefully before investing. Investors should review the information in the prospectus carefully. To obtain a prospectus, please contact your Financial Advisor or visit the funds' company website. Past performance is no guarantee of future results. Investing involves market risk, including possible loss of principal. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Small and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than those of larger, more established companies. Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds. The 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. Alternative investments, including private equity funds, real estate funds, hedge funds, managed futures funds, and funds of hedge funds, private equity, and managed futures funds, are speculative and entail significant risks that can include losses due to leveraging or\other speculative investment practices, lack of liquidiry, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and/or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and risks associated with the operations, personnel and processes of the advisor. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk; and MLP interests in the real estate sector are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions. Mortgage backed securities also involve prepayment risk, in that faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield -to -maturity of a mortgage -backed security and prepayment risk includes the possibility that a fund may invest the proceeds at generally lower interest rates. Tax managed funds may not meet their objective of being tax -efficient. Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. High yield fixed income securities, also known as "junk bonds", are considered speculative, involve greater risk of default and tend to be more volatile than 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. Tf two or more of the agencies have assigned different ratings to a security, the highest rating is applied. Securities that are not rated by all three agencies are listed as `NR". "Alpha tilt strategies comprise a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward potentially outperforming the market in an effort to enhance overall investment returns. Tilt strategies are subject to significant timing risk and could potentially expose investors to extended periods of underperformance." Custom Account Index: The Custom Account Index is an investment benchmark based on your historical target allocations and/or manager selection that you may use to evaluate the performance of your account. The Custom Account index does take into consideration certain changes that may have occurred in your portfolio since the inception of your account, i.e., asset class and/or manager changes. However, in some circumstances, it may not be an appropriate benchmark for use with your specific account composition. For detailed report of the historical composition of this blend please contact your Financial Advisor. Peer Groups Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach. Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetries.com/style-peer-groups Peer Group Ranking Methodology A percentile rank denotes the value of a product in which a certain percent of observations fall within a peer group. The range of percentile rankings is between 1 and 100, where I 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. Alternatives Graystone Consulting is a business of Morgan Stanley Smith Barney LLC. ("Morgan Stanley") This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. This information is being provided as a service of your Graystone Tnstitutional 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 STPC. The information provided to you: 1) is included as a service to you, valuations for certain products may not be available; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ("TRA"), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley TRA; and 2) if your Alternative Investment positon(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by STPC. Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds. Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek alternative -like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:- Loss of all or a substantial portion of the investment due to leveraging, short - selling, or other speculative practices;- Lack of liquidity in that there may be no secondary market for a fund;- Volatility of returns;- Restrictions on transferring interests in a fund;- Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is Utilized; - Absence of information regarding valuations and pricing;- Complex tax structures and delays in tax reporting;- Less regulation and higher fees than mutual funds; and- Risks associated with the operations, personnel, and processes of the manager. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in abroad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker - dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of the additional fees paid to a placement agent by an investor (for Morgan Stanley placement clients, a one-time upfront Placement Fee of up to 3%, and for Morgan Stanley investment advisory clients, an annual advisory fee of up to 25%), which would result in a substantial reduction in the returns if such fees were incorporated. For most investment advisory clients, the program account will be charged an asset -based wrap fee every quarter ("the Fee"). In general, the Fee covers investment advisory services and reporting. In addition to the Fee, clients will pay the fees and expenses of any funds in which their account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and impact the valuations. Clients must understand that these fees and expenses are an additional cost and will not be included in the Fee amount in the account statements. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, for an account with an initial value of S100,000 and a 2.5% annual fee, if the gross performance is 5% per year over a three year period, the compounding effect of the fees will result in a net annual compound rate of return of approximately 2.40% per year over a three year period, and the total value of the client's portfolio at the end of the three year period would be approximately Sl 15,762.50 without the fees and S 107,372.63 with the fees. Please see the applicable Morgan Stanley Smith Barney LLC Form ADV Part 2A for more information including a description of the fee schedule. It is available at www.moreanstanlev.com/ADV <httn://www.mor¢anstanlev.com/ADV> <http!//www.morganstanley.com/ADV> or from your Financial Advisor/Private Wealth Advisor. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley does not provide tax or legal advice. Tmerests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDTC-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. STPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. 2018 Morgan Stanley Smith Barney LLC. Member SIPC. Money Market Funds You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at S1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Tnsurance Corporation or other government agency.