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Home My WebLink AboutMorgan Stanley Performance ReportCity of Sebastian Police Officers' Retirement Plan Quarterly Performance Report As of June 30, 2021 Scott Owens, Me, CIMAe brecutive Director - Wealth Management Institutional Consulting Director Smtt.owens@m9graystone.com (813)227-2027 David Wheeler, CIMAa, Uloa, CRPSe E.engiw Director- Wealth Management Institutional Consulting Director Alternative Imestnent Director Corporate Retirement Director DaviEA.Wheeler@msgraMsecom (813)227-2178 Graystone Consulting• A .0 MA saMer Andy Mcilvaine Institutional Consultant Financial Ativisor- Wealth Management AMy.McUraine@msgraystone.com (813)227-21W Graystone Page 1 Consulting- WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 210 2021 Introduction Quarterly Update as of June 30, zon; Equity Forecasts as of May 18, 2021; GDP Forecasts as of June 28, 2022 • Looking back at J.1-12i, the S&P Soo saw continued gains, the fifth consecutive quarter of strong returns advancing beyond the one-year anniversary of the March zozo lows. Equities moved 8.6%in zQzz, following a quarter where they gained 6.2%.This rally ensued as investors cheered a continued recovery, economic reopening, vaccine distribution, as well as robust economic data and easy monetary policy early on in the first quarter. US equities outperformed both international developed and emerging market equities in zQzz. Morgan Stanley & Co. U.S. Equity Strategy had a 3,900 price target on the S&P Soo as of late April zozz, and has since shifted that price target to 4,zz5 as of May z8, zozz. • The S&P Soo sectors finished the second quarter showing mixed results and moderate returns, with Real Estate, Technology, and Energy outperforming and returning 13.1%, 12.6%, and 11.3%, compared to IQ21 with returns of 9.0%, a.o%, and 30.9%, respectively. Laggards included Industrials, Consumer Staples, and Utilities, coming in at 4.5%, 3.8%, -o.4%, respectively. Other major US indices were also up for the quarter: The Dow Jones Industrial Average rose S.z%and the NASDAQ Composite rose 9.7%. • The MSCI EAFE Index (a benchmark for international developed markets) rose 5.4%while the MSCI Emerging Markets Index rose 5.1%for zQzz. US equities outperformed International developed and emerging market equities by 3z7 and 343 basis points, respectively, in zQ. • The US aggregate bond market fell 3.4% in the first quarter. The Bloomberg Barclays US Aggregate Bond Index, a general measure of the bond market, rose 1.83% in the second quarter of 2021. • Morgan Stanley & Co. economists expect US GDP will be z3.6%in zQzz, 7.4%in 302z, and 8.o%in 021, and are looking forward to continued positive GDP growth forthe year as economic recovery continues. • Commodities inched higher in the second quarter; the Bloomberg Commodity Index rose by 13.3%and Gold rose 3.6%, following a quarter where it fell zo%. Source: FactSet, Bloomberg, Morgan Stanley & Co. Research, Morgan Stanley Wealth Management SIC Past performance is no guarantee of f ...... elt, Bus ,,u,offimare performance are based on assumpbnns that may not be realincf. This matenal is not a solicitation of any offer tob GraT/�tone Ilnuncialinsttoment or to pa,tiegratemany trading strategy Please mferto important information, disclosures and qualifications at the end efto, material. This slide s.roi from Mark J— pa9dh2AlTNMANAGEMENTGL08AI. I NVF AM E NET OFFICE I CHARTBOGH I MARKET PERFORMANCE Consulrtngala WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: zQ zozl The US Economy Quarterly Update as of June 30, zon; MS & Co. GDP Forecasts as of June s8, auai; MS & Co. Inflation Forecasts as of June 11, 2021 Awaiting finalized Qz data, the Bureau of Economic Analysis estimated that real Gross Domestic Product increased at an annualized rate of 6.4% in 1021, in comparison to 4.3%in 4Q2020. With Global GDP output having already fully recovered, the US economy returned back to pre-COVID levels in 1021. With the faster rollout of the vaccine, fiscal stimulus bleeding into 10, and continued engagement in COVID-ig sensitive economic sectors, continued support for strong consumption and investment will likely move through iH21. Having expected an acceleration of growth in 1H21, MS & Co. forecasts third quarter real GDP to come in at 6.o%globally, and 7.4% in the US. The seasonally adjusted unemployment rate for May zozi was 5.8%(still awaiting June data), steadily decreasing each month after peaking in April at 14.7%. In May, total nonfarm payrolls were+559K. Slow improvements in the labor market reflect the continued resumption in economic activity to curtail effects of the pandemic. The number of long-term unemployed (thosejobless for 27 weeks or more) declined by 431K to 3.8M, but is 1.6M higherthan in February 1o2o. According to the most recent data from the Federal Reserve Bank of St. Louis from 1Q2i, corporate profits decreased o.8%quarter over quarter and rose 8.8%year over year. The Bureau of Labor Statistics has reported a +o.6%MOM price increase in May (after rising cl in April), and a 5.o%increase overthe last 12 months. Morgan Stanley & Co. economists forecast a 4.1% inflation rate for 3Q2i, and a 4.0% inflation rate for 4Q21. The Census Bureau reported that the number of new private -sector housing starts in May 2011 was at a seasonally adjusted annual rate of 1,572,000—up 3.6%from April zoaz, and 50.3%above the seasonally adjusted annual rate at this time last year. The Census Bureau also reported that seasonally adjusted retail and food services sales declined 1.3%from the previous month, but increased 28.1%above May zozo. Consumer confidence held steady in May, with the Conference Board Consumer Confidence Index reading 117.2, down marginally from 117.5 in April. The US National Economy Expectations Diffusion Index increased slightly from Si in April to 53 in May (up from 39,5 in January 1o1i). The Institute for Supply Management's (ISM) Purchasing Managers Index (PMI), a manufacturing sector index, registered 61.2%for May, up o.5% from April zozi. Overall, this figure indicates expansion in the overall economy after a major contraction in April zozo, which had been the lowest since 2008. Generally speaking, a PMI or NMI (ISM Non -Manufacturing Index) over 5o indicates that the sector is expanding, and a PMI below 5o indicates that the sector is shrinking. The ISM's Non -Manufacturing Index (NMI), which represents growth in the services sector, was 64%in May, up 1.3%from April zozi. source: Factl Bloomberg, Morgan Stanley & Co. Research, Federal Reserm Bank of Louis, Morgan Stanley Wealth Management GIC Pmim Prnmamr,,,nogumarm, PffoOne resot"11'tmatesor bamepmfnomr,e are basedcn assun,pIme, Ibat may not be realized. This material is not a snLntatim of any offer to b Gra{�tone frmnoal lrarm,sm or to participate inanytrading strategy. Please oferto on,aamo—o Pro., dS,loau@S and clenhit ions attheend ofuns materal, This ebmeeoerced from Mai+ !' PadI3AtTHMANAGEMENTGIUBALINVESTMENTOFFICEI LHARTBOOK I MARKET PERFORMANCE Consulting' WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 2Q 2021 US Equity Markets As of zQ 3021 The Dow Jones Industrial Average gained 5.EL% in the second quarter of zozi, while the NASDAQ Composite Index gained 9.7%. The S&P Soo Index climbed 8.6%over the same time period. The ii sectors of the S&P Soo showed mix results and moderate returns across the board for the second quarter. Real Estate was the top performer, gaining %3.t% in 2021, after returning g.o% in 20. Technology followed suit coming in at a strong ii.6% gain, after a 1021 return at 2.0%. Energy saw the greatest flux, returning" 3% in zQzi after a large 30.9%gain in I021. Second quarter laggards included Industrials, Consumer Staples, and Utilities, coming in at 4.5%, 3.8%, -o.4%, respectively. The Russell Midcap gained 7.5%on the quarter, with mid -cap growth, ii.o7%, outperforming mid -cap value at 5.66%. The Russell z000, a small -cap index, gained 4.3%for the quarter, with small -cap value (21.2%) outperforming small -cap growth (4.9%). INDEX IN USD Quarter uMonths 5-Years (Annualized) 7-Years (Annualized 5&PSoo 8.55% 40.79% z7.64% 14.09% Dawgones 5.08% 36.34% 16.65% z3-45% Russell z000 4.z9% 6z.03% 16.46% ss.38% Russell Midcap 7.50% 4980% a5.61% aaoz% Russell z000 8.54% 43-07% a7.98% z4.o5% Source: Fac6et, Bloomberg, Morgan Stanley Wealth Management GIC Parr a^rinrmanm is no guarantee of Nnnm results. Estimates o`fomre nerfmmance are based an aasumotians Nat may not be reahred This haverelis not a s.1,,a Rm of any are, to Graystone Bnemial mstrnment or to paru,,at,.nany tradmgstrate, Please refer N,di,o0ant ioftmM,on, disclosuresand qualifications at the end ofthis material. This slide sourced from Mark PagdN44LTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I MARKET PERFORMANCE Cons -1 tttngr" WEALTH MANAGEMENT S&P .500 Sectors YTD Total Return As of June 30, 2021 Morgan Stanley Utilities 2.5% Staples 5.0% Discretionary 10.3% Health Care 11.9% Technology 13.8% Materials 3.4.5% Industrials 16.4% Communication Services 19.7% Real Estate 23.3% Financials 25.6% Energy 45.6% 0% ao% 20% 30% 40% 50% Source: Bloomberg Pan pvrfnrmanre Is an gnrraie, of figure re,rH, i moat,, n':wore performance are based on aszump0gm that may not be feabmd. The matenAl is not a sollcitavon of any offer to b hnanoalinstrumentortopartlepatemonytradmgstrategy eleaxe refertoirnpnrtam Information, disclosures and quabficationsat[heendgf tklsmaterlal 1,.1 On, s..nmdfma,fAam Giaystone Pa9dM1SAl TH MANAGEMENT 61 n5Al INVESTMENT OERCE I CHAI2T5nON I MARKET pERPpRMANC[ Consulting' WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 2Q 2021 Global Equity Markets AS Of 10 1011 US equities outperformed International in the second quarterof zozi The MSCI EAFE Index (a benchmarkfor international developed markets) advanced 5.4%for US -currency investors. In the second quarter, the MSCI Emerging Markets Index gained 5.i%for US -currency investors. The MSCI Europe Index advanced 7.7% for US - currency investors, while the MSCI Japan underperformed, falling 0.33%. The S&P Soo Index rallied 8.6%forthe quarter. Emerging economy equity market indices saw muted returns in the second quarter.The MSCI BRIC (Brazil, Russia, India and China) Index rose 5.5% in US dollarterms, while the MSCI EM Asia Index rose 3.8%- SiII �iil iii iI�YIY iwid 4M idwi lli iY8 Y i l Ri i Yi li�i ii iii i iiLiilillii INDEXINUSD QuarterMm 11lhs Tears pYa Ye (AS alil (An ii.,, MSG EAFE 138% 3z.91% 10.79% 544% MSO EAFE Growth 759% 31.39% 11.88% 8.18% MSOEAFEValue 3.15% 34 21% 843% 1.51% MSG Europe 774% 39.81% 10,98% 4.88% MSClj'Nd .A.33% 15.09% 1o.6796 731% S&P500 8.5596 40.79% 17.64% 14.a9% MSGEmerging Markets 5.az% 41.36% v14s% 6.73% Source: Fai Bloomberg, Morgan Stanley Wealth Management GIC P.nt nedomun¢eis nngumane, of future results. Estimatesoffwun le,fimmalle are based on assummons that may not be realized This material is not a solicitation of any offermb GL3y5tone Imnnnal msiri.imetem nlor to dFronpaany trading strategy. Please rile,tnlmm pmtant information, disclosures and olledflatinns at the and of this ateral. This ON, sourced from Mark Pages6i MANAGEMENT GLOSAL iNVESS, ENT OFFICE[ CHARTBOOK I MARKET PERFORMANCE Consulting- WEALTH MANAGEMENT Morgan Stanley Capital Markets Overview: 2Q 2021 The US Bond Market As of 20 2031 The Bloomberg Barclays US Aggregate Bond Index, a general measure of the bond market, rose x.8%, after falling 3.4% last quarter. The yield on the io-year USTreasury note increased notably in iQ breaching 3..7%, and came down slightly in zQ to close the quarter at i.5%.The shortest end of the curve concluded 2021 with the yield on 3-month Treasury bills at o.o4, up from the close of 3021. Riskier parts of the bond market, such as US high yield debt, had strong gains in the second quarter, buoyed by the market's risk -on sentiment. The Bloomberg Barclays HighYield Index, a measure of lower -rated corporate bonds, gained 2.74%. Bloomberg Barclays Long Government/Credit ended the quarter at 6.4% after a io.4%decline in 1023. Mortgage -backed securities rose slightly in the second quarter.The Bloomberg Barclays Mortgage -Backed Securities Index rose 0.33%. Municipal bonds rose slightly more. The Bloomberg Barclays Municipal Index rose 1.42% on the quarter. Key US Bond Market Index Returns (%) for the Period Ending 613012021 INDEX IN t15D OMerteT uMonths 5-Years (An nualixed) 7-Years (Annualized) Bloomberg Barclays US Aggregate 183% -0.33% 3.02% 3.28% Bloomberg Barclays High Veld x.74% xS37% 7.S5% S-47% Bloomberg Barclays GovemmentlCredit x.45% -0.50% 3.30% 3.57% Bloomberg Barclays Govemmem 175% -3-zz% 2.x4% z.75% Bloomberg Barclays Intermediate Goetloedit o.99% o.x6% 2.64% x.759A Bloomberg Barclays Long Govt7Uedit 6.44% -s.86% 5.37% 6.34% Bloomberg Barclays Mortgage Backed Securities 0.33% -0.42% z.z8% 2.56% Bloomberg Barclays Muni s.42% 4.x7% 3.z4% 3.83% Source: FactSet, Bloomberg, Morgan Stanley& Co. Research, Morgan Stanley Wealth Management GIC Pasr performance is no guaranmeof future results Caimates of future performance are based on assumptions that may not be realized. This material is not a sohri ion of any offer to b Graystone fmm¢uli"Imment or topamcryate many trading strategy. Please refe,to imperant lnfmmaoon, disclosures and guallbcahans at the end ofthis material. This slidesourced from Mark P.age47ALTH MANAGEMENT GI OBAI I NVESTMENT OFFICE I CHABTBOOK I MARKET PERFORMANCE Cons tine 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 may be purchased only after 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.momanst7plev.cey,(PpV. 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 ortime iness. Th rd parry data providers make no warranties or representations relating to the accuracy, completeness or timeliness of the 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 of the data 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 ManagerAnalysis (GIMA) Focus List, Approved List and Tactical Opportunities List, Watch Policy. GIMA uses two 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 of the Focus List. Investment products may move from the Focus List to the Approved List, or vice versa. GIMA may also determine that an investment product no longer meets the criteria under eltherprocess 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 Listor Approved List Investment product as being on `Watch" if GIMA identifies specific areas that (a) merit further valuation 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 forthe investment managerorfund to address any concerns. Certain investment productson either the Focus ListorApproved List may also be recommended for the Tactical Opportunities list based in part on tactical opportunities existing at a given time. The investment products on the Tactical Opportunities List change over time. For more information on the Focus List, Approved List, Tactical Opportunkies List and Watch processes, please see the applicable Form ADV Disclosure Documentfor Morgan Stanley Weath Management. your Financial Adv'aor 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 discussthe global economy and markets. The committee determines the investment outlook that guides our advice to clients. They continually monitor developing economic and market conditions, reviewtactical 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 SIC 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 ofany Morgan Stanley investment advisory service. The GIC AssetAllocatlon Models do not represent actual trading or anytype of accountorany type of investment strategies and none of the fees or other expenses (e.g. commissions, markups, markdowns, advisory fees, fund expenses) associated with actual trading or accounts are reflected in the SIC Asset Allocation Models which , when compounded over a period of years, would decrease returns. Adverse Active AlphaSM x.o 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 relativeto index and peers. While highly ranked managers performed well as a group in our Adverse nerve Alpha model back tests, not all of the managerswtll 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 goad 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 net limited to. manacer olsctosup¢s - - Graystone Fd9B 8 Consulting'`"' WEALTH MANAGEMENT Morgan Stanley turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha ranking. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. The proprietary Value Score methodology considers an active investment strategies' value proposition relative to its costs. From a historical quantitative study of several quantitative markers, Value Score measures perceived forward -looking benefit and computes is) "fair value" expense ratios for most traditional investment managers across po 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,ogB 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,og8 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 invert 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. Generally, investment advisory accounts are subject to an annual asset -based fee which is payable monthly in advance (some account types may be billed differently). (The "Fee"). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor. In addition, each account that Is inverted in a program that is eligible to purchase certain investment products, such as mutual funds, will also pay a Platform Fee (which is subjectio a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program will also pay a separate Morgan Stanley Overlay Manager Fee and any applicable Sub -Manager fees. If your account is invested in mutual funds or exchange traded funds (collectively "funds'), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected In each fund's share price. These fees and expenses are an additional cost to you and would not be included in the Fee amount in your account statements. Overlay Managers or Executing 5ub-Managers ('managers") in some of Morgan Stanleys Separately Managed Account ('SMA") programs may affect transactions through broker -dealers the, than Morgan Stanley or our affiliates. If your manager trades with another firm, you may be assessed corn by the other firm in addition to Morgan Stanleys fees. Those costs will be included in the net price of the 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:v .morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf. For more information, please refer to the ADV Brochure for your prograni available at www.morganstanley.coni or contact your Financial AdvisodPrivate Wealth Advisor. For example, on an advisory account with a 2.5%annual fee, if the gross annual performance is 6.oi the compounding effect of the fees will result in a net performance of approximately 3.38%after one year, to.So% after three years, and 28.2o%after five years. Conflicts of Interest: GIMA's goal is to provide professional, objective evaluations in support of the Morgan Stanley Wealth Management investment advisory programs. We have policies and procedures to help us meet this goal. However, our business Is subject to various conflicts of interest. For example, ideas and suggestions for which investment products should be evaluated by GIMA come from a variety of sources, including our Morgan Stanley Wealth Management Financial Advisors and their direct or Indirect managers, and other business persons within Morgan 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 for the opinions expressed by GIMA. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management fora 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 orovidea vanew of services Graystone DISCLOSURES Consultinga Page 9 WEALTH MANAGEMENT Morgan Stanley (including research, brokerage, asset management, trading, lending and investment banking services) for each other and for various clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held In client accounts , and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS & Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all ofthese companies from an account. Morgan Stanley charges each fund family we offer mutual fund support fee, also called a "revenue -sharing payment," on client account holdings in fund families according to a tiered rate that increases along with the management fee of the fund so that lower management fee funds pay lower rates than those with higher management fees. ConsiderYour Own Investment Needs: The model Portfolios and strategies discussed in the material are formulated based on general client characteristics including risk tolerance. This material is not Intended to be an analysis ofwhether particular investments or strategies are appropriate for you or a recommendation, or an offer to participate in any investment. Therefore, clients should not use this material as the sole basis for investment decisions. They should consider all relevant information, including their existing portfolio, investment objectives, disk 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 Advisoraboutwhat 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 consider the investment objectives, risks, fees, and charges and expenses of mutual funds, ETFi 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.mamanstanlev.com. Please read it carefully before investing. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at Ss-oo per share, 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: (s) commodities (e.g., agricultural, energy and metals), currency, precious metals(¢) managed futures; (3) leveraged, inverse or inverse leveraged; (4) bear market, hedging, long -short equity, market neutral; (5) real estate; (6) volatility (seeking exposure to the CBOE VIX Index). Investors should keep in mind that while mutual funds and ETFs may, at times, utilize nontraditional investment options and strategies, they should not be equated with unregistered privately 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 Digital Vault ('Digital Vault") is accessible to clients with dedicated Financial Advisors. 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Morgan Stanley does not verify that the information Is accurate and makes no represemation or warranty as to its accuracy, timeliness, or completeness. Additional information about the features and services offered through Total Wealth View are available on theTotal Wealth View site on Morgan Stanley Online and also in the Total Wealth View Terms and Conditions of Use. Graystone DISctDSUHEa Consulting'" Page 10 WEALTH MANAGEMENT Mobile check deposits are subject to certain terms and conditions. Checks must be drawn on a U.S. Bank. Morgan Stanley Send Money with Zelles is available on the Morgan Stanley Mobile App for (Phone and Android and on Morgan Stanley Online. Enrollment is required and dollar and frequency limits may apply. Domestic fund transfers must be made from an eligible account at Morgan Stanley Smith Barney LLC (Morgan Stanley) to a US -based account at another financial institution. Morgan Stanley maintains arrangementswith JP Morgan Chase Bank, N.A. and LIMB Bank, N.A. as NACHA-participating depository financial Institutions for the processing of transfers an Zellee. Data connection required, and message and data rates may apply, including those from your communications service provider. Must have an eligible account in the U.S. to use Zelies. Transactions typically occur in minutes when the recipient's email address or U.S. mobile number is already enrolled with Zelle. Seethe Morgan Stanley Send Money with Zelles terms for details. Zelle and the Zelle related marks are wholly owned by Early Waming Services, LLC and are used herein under license. Morgan Stanley is not affiliated withZellee. Electronic payments arrive to the payee within i-z business days, check payments arrive to the payee within 5 business days. Same -day and overnight payments are available for an additional fee within the available payment timeframes. OTHER RISKS Investing In the markets entallsthe risk of market volatility. The value of all types of investments, including stacks, mutual funds, exchange -traded funds ('ETfe), closeci funds, and unit investment trusts, may increase or decrease overvarying time periods. Tithe extent the investments depicted herein represent international securities, you should be aware thatthere 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 smalk and mid -capitalization companies may not trade as readily as, and be subject to highervolatility 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 nsk, 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 per If TIPS are sold prior to maturity. The returns on a portfolio consisting primarily of environmental, social, and governance -aware investments ("ESG") may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage ofthe 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 inverted, closed -end funds may have additional risks related to declining market prices relative to net asset values HAW, active manager underperformance and potential leverage. Clowd-end funds, unlike open-end funds, are not continuously offered. There Is a one-time public offering and once issued, shame ofclosed-end fundsare 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 ofthe public offering. This characteristic is a risk separate and distinct from the risk that closed -end fund's net asset value may decrease as a result of investment activities. NAV is total assets less total I labilities divided by the number of shares outstanding. At the time an Investor purchases or sells shares of a closed end fund, shares may have a market price that is above or below NAV. Portfolios that Invest a large percentage of assets in only one industry sector (or In only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and considerpotential risks before investing. Certain of these risks may include but are not limited to: Loss of all or 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 fora fund; Volatility of returns; Restrictions on transferring interests in a fund;Pmential lack of diversification and resultinu hither risk due to Graystone DISCLOSURES Consulting' Page 11 WEALTH MANAGEMENT Morgan Stanley concentration of trading authority when a single advisor is utilized; Absence of information regarding valuations and pricing; Camplextax structures and delays in tax reporting; Less regulation and higher fees than mutual funds; Risksassociated with the operations, personnel, and processes of the manager; and Risks associated with cybersecurity. Asa 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-dealertransactions 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 e241 or a "debt research report" as defined by FINRA Rule 2342 and was not prepared by the Research Departments of Morgan Stanley Smith Bamey 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 ofthe indices may not be representative of all the hedge funds in the universe because of the tendency of lower performing funds to leave the index); heterogeneity (not all hedge funds are alike or comparable to one another, and the index may not accurately reflect the performance of a described style); and limited data (many hedge funds do not report to indices, and the index may omit funds, the inclusion of which might significantly affect the performance shown. The HFRI indices are based on information self -reported by hedge fund managers that decide on their own, at anytime, whether or not they want to provide, or continue to provide, information to HFR Asset Management, L.L.C. Results for funds that go out of business are included in the index until the date that they cease operations. Therefore, these indices may not be complete or accurate representations of the hedge fund universe, and maybe 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 (>) are not FDIC -Insured, (z) are not deposits or other obligations of Morgan Stanley Wealth Management or any of Its affiliates, (3) are not guaranteed by Morgan Stanley Wealth Management and Its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Wealth Management Is a registered broker -dealer, not a bank. This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors or prospective investors, as applicable, receiving this material) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. Past performance is no guarantee of future results. Actual results may vary. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. In Consulting Group's advisory programs, alternative investments are limited to US -registered mutual funds, separate account strategies and exchange -traded funds (ETFs) that seek to pursue alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and mare 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 varyfrum 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 paythese fees on the Investments held by Investments held by brokerage clients. Morgan Stanley Wealth Management has a conflict of Interest in offering alternative investments because Morgan 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 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 an 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 Latter. _Graystone Co nsulting' ons-lting' Page 12 WEALTH MANAGEMENT Morgan Stanley Selfselecuon bias results when certain manager returns are not included in the index returns and may result in performance being skewed up or down. Bemuse hedge funds are private placements, hedge fund managers are able to decide which fund returns they want to report and are able to opt out of reporting to the various databases. Certain hedge fund managers may choose only to report returns for funds with strong returns and opt out of reporting returns for weak performers. Other hedge funds that close may decide to stop reporting in order to retain secrecy, which may cause a downward bias in returns. Survivorship bias results when certain constituents are removed from an index. This often results from the closure of funds due to poor performance, "blow, ups,' or other such events. As such, this bias typically results in performance being skewed higher. As noted, hedge fund index performance biases can result in positive or negative skew. However, it would appear that the skew is more often positive. While it is difficult to quantify the effects precisely, investors should be aware that idwsynciaticfactorsmay 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 a,a substantial amount oftheir investment. They maybe highly illiquid, can engage In leverage and other speculative practices that may increase volatility and the risk of loss, and may be subject to large investment minimums and initial lockups. They Involve complex tax structures, tax -inefficient investing and delays In distributing important tax information. Categorically, hedge funds and funds of funds have higher fees and expenses than traditional investments, and such fees and expenses can lower the returns achieved by investors. Funds of funds have an additional layer of fees over and above hedge fund fees that will offset returns. An investment in an exchange -traded fund involves risks similar to those of investing In a broadly based portfolio of equity securities traded on an exchange in the relevant securities market, such as market Fluctuations caused by such factors as economic and political developments, changes in interest ratesand 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 data 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 dale.' A target date portfolio will transition its invested assets from a more aggressive portfolio to a more conservative portfolio as the target date draws closer. An investment in the target date portfolio is not guaranteed at any time, including, before or after the target date is reached. Managed futures investments are speculative, involve a high degree of risk, use significant leverage, are generally illiquid, have substantial charges, subject investors to conflicts of interest, and are appropriate only for the risk capital portion of an investor's portfolio. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. Managed Futures are complex and not appropriate for all Investors. Rebalancing does not protect against loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Buying, selling, and transacting in Bitcoin or other digital assets, and related funds and products, is highly speculative and may result in a loss nfthe entire investment Risks and considerations include but are not limited to: - Bitcoin and other digital assets have only been in existence for a short period of time and historical trading prices for Bitcoin and other digital assets have been highly volatile. The price of Bltcoin and other digital assets could decline rapidly, and investors could lose their entire investment - Certain digital asset funds and products, including Bitcoin funds and products, allow investors to invest on a more frequent basis than investors may withdraw from the fund or product, and interests in such funds or products are generally not freely transferrable. This means that, particularly given the volatility of digital assets, including Bitcoin, an investor will haveto bear any losses with respect to its investment for an extended period of time and will not be able to react to changes in the price of the digital asset once invested (for example, by seeking to withdraw) as quickly as when making the decision to invest. Such digital asset funds and products, Including Bitcoln funds and products, are intended only for persons who are able to bear the economic risk of investment and who do not need liquidity with respect to their investments. -Given the volatility in the price of Bitcoin and other digital assets, the net asset value of a fund or product that invests in such assets at the time an investors subscription for interests in the fund or product is accepted may be significantly below or above the net asset value of the product or fund at the time the investor submitted subscription materials. - Certain digital assets, apart from BMoin, are not intended to function as currencies but are intended to have other use cases. These other digital assets maybe subject to some or all of the risks and considerations set forth herein, as well as additional risks applicable to such other digital assets. Buyers, sellers and users of such other digital assets should thoroughly familiarize themselves with such risks and considerations before transacting in such other digital assets. -The value of Bitcoin and other digital assets maybe negatively impacted by future legal and regulatory developments, including but not limited to increased regulation of Bitcoin or such other digital assets. Any such developments may make Bitcoin or such other digital assets less valuable, impose additional burdens and expenses on a fund or product investing in such assets or imoactthe ability Graystone DISCLOSURES Consu1'tinges" Page 13 Morgan Stanley Bitc,ur afe U,XRrtain Ral assetsntcludin9 drectly ori„dlrectly wEPtYH pANPGEMENt deaeasethe fan;rn¢$s°�entth n'c table fthe posi. jeom'ina"d other digital assets,hrnentsinthe vaIUCO oftM odor te, whit`¢as aateriaNY [onto rehens°e goidanceoI tM 9-tc a ,° IW000' lemsorbusinessfa, �fetherebY impacting �c,ntlm,e to oP�a theabzence Of to eluencesto th,staxa,ioca Mrl s operation P the P-eOf rob Bitca of such a Nod of Pr real torten In the .tevanc security breach I decrease vtla na ore of uownuac advrsvrs c°naawellesth¢tail of any saniceduetofraud, ¢and may also matei,aW ere is xhe new and evd. 9 suit the metaxlaw, t r en<ed faitores ofin enuptionsino ,Due W estorssh faiU¢t reN25 n Change. t in9 , ed ¢xch ectfveiry roducpundeN.S.federa and ore ex<har,9e ft destrua,on and,na5 etf,¢ loss, Prose veexpe ch safeguards e9aln�tossrttM,f amongotherth theRoftMf r through aEund of P m gitcoin exchanges" et in Blcco,o'rf the fonw anlmPacted In nificant ad on ¢ssible by MB several Years, certa'Oduds abJltytotra end °r Product relies rts have Place sig ro a-{wks"in•t the Brtcoin Aver the Past fund'sorP Nether [he serviceproviders W t, st,len, dent Y W ,n act any legaldlers ofw oduQ, and ermar,e At last, ardmps'- ad, Pe¢to•mval a^fo futwe coui fy.ufiBto: couWbeP oratalllfr,m"' ,,duct. Add thevalua of Y,unnvestment,aeBc�n.ralatadpr ding extaMl .fund ore digital t tod,xt, inJudin9 .Nat asset' Hitcoin. rrrstaadofttrrou9„ h any digital arse P rodua's d',g t ndudln9 maV noebeneE,tt°thes( daectly' phhou9 or aIt of as Nala5 I1 tat asseu 01 digitalassal body, odterthanwM1f' rezpeMtEGrm °f cessary t, access. Product's dig hotherre k'hatsor,x or at "di9i an a rro n gitcdn and( estorswhohold Bitc,in for sot "pPoratekayz"1e Mttansa6in9' rt �io„aoth�r ria Q,3ualz to atcePt d'��bed loth reced Vn9 ,at acts investing aledtoinv any9oveCiok,q •cuo �" companiesori ad �Mrthanas crez BNcoin Ondo e rsln sor Pr°d bloc hain,cot, twin. r, andisfil' �`'o"'atonel.NolawMemaybemandat"'etoaccePtda a en Hind � Of t ot,,"to5 lAt,dig ddmete aWdeateasetM Pr¢eo is are rrotle4 ihe re fof-iu6B;t<on heresm"o"P a [them -If Ao0Aa re subjectwtheft an al a 'N�la bat veloPing np'Or cdM<e afn CiCnCmmA tl wili'u,gtoacc A hau&ed, ands btockrhain c° developed and'�Adhlduatsthatare has Bitcoin or other dig di ttalwaNetscan overnmentsarew mmd,gnal currenci A' businesses themsJves, 9 Digital assetssuc atn9, atform5 italwalletsbYtfiek Ac- pa e�ciesthaxc¢rt"Otuiliy,withrespect roductr useislimitedtoiw Inaddition!llkethin e PV BNcoK,, hel ,9 d ind 5eme,roes¢BNcon,sa�hf°very�Wbacpr,tewoRMess. is can be eked, an di ha6igill�z5a�•includrt+9Bfe uardsP �dedto digital assets, s`r<h as an fo�stt illegal M s 9 rw on dotheroff curtanct PlIdu aocherd"rgixal rise mall of Y°`N there are no sot g < ga „g s h sa mg canl°se some ositors, thatwyandseN ,,estn have, Y°u p .Platforms herinvestors uaWteesofsafetY to deD ¢ la s 9 nuaffck undering,hu�s¢of latform anc'JOa sa Nan s EkeM .JQ c¢,Wn9 diug dealing, moo Ywn Of tetfl the ,Iimi9 Aseresult, lesser fraud. twNY,indudtng encies couldshut d, mductsor oih¢r di Na a odaeditunionsthat Prov in tllegala< t B'rtcom-relatedP . Unlike USbanks Nhazkn,wnuse law enforcarnen a9 toBitcoin, prov',dersorbyfegotators• d,91ta1 assetsoffar, culators; fonnstance, rf,rrrraace data relating timacY•and ItW0 and other ere andspe p,eit, and tack of mltyB IBrnate consvm t ,,ducts. st_Funfier,ar7Pe intWdio9fraud. -Duet,theanom' oin°r other di9Nal ass¢ P £uedibitity and a cons a n9 <omn+arc¢' Abvwsc°old imtaaeeno ordo 9 a P touse,rtrad� nestabltshed trackrec the ability pothavea ofm. Bitcoin, mlat'rn to entirely maV odals are ,rot unit indudin9 y the risks r,d ,deran the xcha ¢rate of mf,¢rdl hai assets ro ndi ital assets• could dranicaU deJine.For ex m k, pi�ol am Y^Otbegerifwble as Pri<m9 of Vansatting, g Men erY NY 9 g beEwevansa 9cn suchasseta' Mtially'maeas a ris has v , shouidbe aware oftM P°Y ductsvereu"b'U5D h;storica,W y Lo theeahanger aCrle and weU. � or¢ttadihon b suchvofaiN as om ¢Ged otectronsavada icdow��th¢future C��Lpi1C Mn W -Investors ualitfesof digNalassets M em' Y. inmaYb¢aff same con customerY"Atsvilicantlwe ptMt spetts and da 0kco w Y P `9 a or otl, virtual torte a ,an 5osb In of regulated ,th vofsa OL15 raxeof Bitrnin aadroPPed r°Or es and aren Mn9ewh,wasntl acre tsad' Nal arse .Tha¢x<ha,t9e UHD has in they ante h1b ti rsonlexc Hnm%,wlrsustM andperf°ftnrance that ape .pi9,talassecezJtan9eshavei ndt$oc oms.'rTr9heter ass n, V e9uRV• debt, and°tMr azzetsa DLSBLosuns Page I WEALTH MANAGEMENT Morgan Stanley -The regulatory framework of digitalassets is evolving, and in some uses uncertain, and digital assets themselves may not be governed and protected by applicable securities regulators and securities laws, including, but not limited to, Securities Investor Protection Corporation coverage, or other regulatory regimes. - Morgan Stanley Smith Barney LLC or Its affiliates (collectively, "Morgan Stanley") may currently, or in the future, offeror invest in digital asset products, services or platforms. The proprietary interests of Morgan Stanley may conflict with your interests. -The foregoing list of considerations and risks are not and do not purport to be a complete enumeration or explanation of the risks involved in an investment in the any product or fund investing or trading in Bitcoin and/or other digital assets. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. Past performance is no guarantee of future results. Actual results may vary. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC ("Morgan Stanley', its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not "fiduciaries" (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at maws.morpanstanlev.mm.(it' sclosicsIdol. 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 relateconsequences 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 canna directly invest in them. They are not subject to expenses or fees and are often comprised of securities and other investment Instruments the liquidity of which is not restricted. A particular investment product may consist of securities significantly different than those in any index referred to herein. Composite index results are shown for illustrative purposes only, generally do not represent the performance of a specific investment, may not, fora variety of reasons, be an appropriate comparison or benchmark fora particular investment and may not necessarily reflect the actual investment strategy or objective of a particular investment Consequently, comparing an investment to a particular index may be of limited use. This material is not a financial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fiduciary either under the Employee Retirement Income Security Act OF2974 (ERISA) or the Internal Revenue Code of 1986, and any information in this report is not Intended to farm the primary basis for any investment decision by you, or an investment advice or recommendation for either ERISA or Internal Revenue Code purposes. Morgan Stanley Private Wealth Management will only prepare a financial plan at your specific request using Private Wealth Management approved financial planning signature. We may act in the capacity of a broker or that of an advisor. As your broker, we are not your fiduciary and our interests may not always be identical to yours. Please consult with your Private Wealth Advisor to discuss our obligations to disclose to you any conflicts we may from time to time have and our duty to act in your best interest. We may be paid both by you and by others who compensate us based on what you buy. Our compensation, including that of your Private Wealth Advisor, may vary by product and over time. Investment and services offered through Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC, Member SIPC. For index, indicator and survey definitions referenced In this report please visit the followiner. httos:/fwww.moraanstanlev.com/wealth-investmentsolutionsmmir-definitions GLOBAL INVESTMENT COMMITTEE (GIQ 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 fallowing a GIC Strategy, but simply reflect actual historical performance of selected indices on a real-time basis overthe specified period of time representing the GIC's strategic and tactical allocations as of the date of this report. The past performance shown here is simulated performance based an 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 ortrading 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 investmentvehicle 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 an r Graystone DISCLOSURES Consulting " Page'15 WEALTH MANAGEMENT Morgan Stantey GIC Asset Allocation Model for the periods indicated. Despite the limitations of hypothetical performance, these hypothetical performance results allow clients and Financial Advisors to obtain a sense of the risk/return trade-off of different asset allocation constructs. The hypothetical performance results In this report are calculated using the returns of benchmark indices far 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 OFACTUAL ACCOUNTS: None of the fees or other expenses (e.g. commissions, mark-ups, mark-downs, fees) associated with actual trading or accounts are reflected, n the GIC Asset Allocation Models. The GIC Asset Allocation Models and any model performance included in this presentation are intended as educational materials. Were a client to use these models in connection with investing, any investment decisions made would be subject W transaction and other costs which, when compounded over period of years, would decrease returns. Information regarding Morgan Stanley's standard advisory fees is available in the Form ADV Part a, which Is available at www.morganstanley.com/adv. The following hypothetical illustrates the compound effect fees have on investment returns: For example, if a portfolio's annual rate of return is i5%for 5 years and the account pays So basis points in fees per annum, the gross cumulative five-year return would be soa.i%and the five-year return net of fees would be 96.9%. Fees and/or expenses would apply to clients who invest in investments in an account based an these asset allocations, and would reduce clients' mtums. The impact of fees and/or expenses can be material. Variable annuities are long-term investments designed for retirement purposes and may be subject to market fluctuations, investment risk, and possible loss of principal. All guarantees, including optional benefits, are based on the financial strength and claims -paying ability of the issuing insurance company and do not apply to the underlying investment options. Optional riders may not be able to be purchased in combination and are available at an additional cost. Some optional riders must be elected at time of purchase. Optional riders may be subject to specific limitations, restrictions, holding periods, costs, and expenses as specified by the insurance company in the annuity contract. If you are investing in a variable annuity through a tax -advantaged retirement plan such as an IRA, you will get no additional tax advantage from the variable annuity. Under these circumstances, you should only consider buying a variable annuity because of its other features, such as lifetime income payments and death benefits protection, Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, Ftaken prior to age 5giA, may be subject to a ao%federal income tax penalty. Early withdrawals will reduce the death benefit and cash surrender value. Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment. Ultreshort-term fixed income asset class is comprised of fixed income securities with high qua l lty, 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 ofthe fund's value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax -deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV, and, as a result, the MLP fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ip governmental programs and policies, (III) national and intemational political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, hg trading activities in commodities and related contracts, Nil pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. Physical precious metals are non -regulated products. Precious metals are speculative investments, which may experience short-term and long term price volatility. The value of precious metals investments may fluctuate and may appreciate or decline, depending on market conditions. Unlike bonds and stocks, precious metals do not make interest or dividend payments. Therefore, precious metals may not be appropriate for investors who require current income. Precious metals are commodities that should be safely stored, which may impose additional costs on the investor. REITs investing risks are similar to those associated with direct investments in real estate: property value fluctuations, lack of liquidity, limited diversification and sensitivity to economic factors such as Graystone DISCLOSURES Cons 1tingsi Page 16 MorganStanley Va sparencYl mand ` h � hly lnc b fioessiban ne intxeazez,V°S maY WEALTH ...... Oe"T uid�tyia 1on9.urm b ck 6t� tow inc Wde: IHe of a mott9a9e"ntie slons.ais o�amonthy zse avel as �ds. As backed sac nmagoo.,85to u c.,- lon9erth n�'".._ . c, n�.nvesto oulasCOWP We ksofP 1 S aeh recas Iis r¢cumed LOK ry of raDa'finerts. U. d market a Print Pa BS,LMos and yacauzetshouldh¢cansid nCe pwf abor�d 1 ^ P°rtf rm?yrdteu levera9' standerdM tint+P V factM ontheP meanitNt�CtF a � i°9 old ati 1ula b 're ai� � l'm9if1Bc� d'Hlawl inxeresc rate fian9as and e nsk ofanywy of MBS,lodudio-9 interest rates,P nl ona wrest rates d¢<linin9 Ya¢W'�zo Y arBd sawr';lesare�callable' volatility( of any b/P riices hom KconBHions- ofchan9e' maturity cu om me riodsof It gsso SSnvise sPe��same ^'twpve eherec ntx�°azseea^u �asabmaY Do be aeon the rfixe .mcorM sa an with econ nsk, 9uaMihes and'000 Pare efanedbYthe iswa'f°r PeFare� wed i tes¢<u^CYinxre4rate. No will Fluctuate drtions. Callabf¢ °�k.lnfmma atFe d TIu maNdtY oS xz5 d 9 subi¢ct to cFuraoF bond certam Preferred'S5Ue5mp ma aWp1ed 1s9arbe1 �,ar thanHr atoE a log most commonlYused QrestrMes. maV �e vc ', sacun .u. unvm � -_ c n esNriM nts°^ _ beenrecerced' esewdtY referee rate <o° a o too u^dmaxuraY,lylng�Ue'nd sda2Do1(Dual ndPB°Vm4p'f etualPmk m�urt�dUes .shave «no -rat _.me The „„arCPstab 1 of ern tic 1'div+de _ vestorsfor eat d yaginning9°°d�a n Nme. pefro a ou to Y can reduce or cut pay dnumbar ncentrated or 11mwr9an Sta olWthathows acdices salec'tadby tloo, Be rtf s„i�r,_The�^ _..,. mdkesat any elimin.teris p-mno odest9rowth canbem°'" - 'VEWestoc__.- camide a ofoontinuous arPario AnY NP __a0°�uatinB Price V,I7 LO"RES Page tFat blood_ dat ttd veztmentsw°uld w`� aof blood a``�antstha� aselina'mthe vaW °r¢P dormanc¢� be moYevolaCde thanlnv �Pa dvisarto any y andcdonot Vq or not Inteodad to r OfMor4an StankY City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of June 30, 2021 Policy Index 1 Allncation Pedormance(%) Madko Quarter Fiscal 1 3 5 7 10 Since Inception Value % T. YTD YTD Year Years Years Yearn Years Inception Date 5.19 11.62 24A2 31.68 11.73 10.49 8.20 8.34 8.08 5.59 9.92 23.54 2932 12.61 11.40 9.18 9.63 9.53 �. Highland - Iargc Cap Value 4,301,903 19.92 5.14 19.88 38.60 45.13 12.01 N/A. N/A N/A 11.15 08/01/2017 Highland- Urge Cap Value (net) 5.01 19.59 38.10 44.45 IIA7 N/A N/A N/A 10.56 Russe81000 Value 5.21 17.05 36.07 43.68 12.42 N/A N/A N/A 10.85 Polen - Large Cap Growth 1,874,535 8.68 13.33 N/A N/A N/A N/A N/A N/A N/A 13.33 04/01/2021 Men- Large Cap G,..b(net) 13.30 N/A N/A N/A N/A N/A N/A N/A 13.30 Russe01000 Gr 11.94 N/A N/A N/A N/A N/A N/A N/A 11.93 iShares- Russell 1000 Growth ETF 1,795,301 9.31 11.81 13.48 N/A N/A N/A NIA N/A N/A 13.48 01/01/2021 ;Shares - Russell 1000 Growth ETF (net) 11.81 13.48 N/A N/A N/A N/A N/A N/A 13.48 Russell 1000 Ge 11.94 12.99 N/A N/A N/A N/A N/A N/A 12.99 Boston Partners-ShQD Value 2,807,807 13.00 5.40 25.61 63.63 73.64 12.15 N/A N/A N/A 1136 08/01/2017 Balton Partners - SMID Value (net) 5.22 25.27 62.86 72.50 11.12 N/A N/A N/A 1030 Russo02500 VI. 5.00 22.68 57.65 63.23 10.60 N/A N/A N/A 10.84 Fiery Capital -SMID Growth 1,739,899 8.06 554 12.92 37.77 57.59 22.84 N/A N/A N/A 2251 08/01/2017 Fie. Capital -SMID Growth (net) 5.28 12.44 36.94 56.38 21.93 N/A N/A N/A 21.65 Russe02500 GR 6.04 8.67 36.81 49.63 20.15 N/A N/A N/A 2056 Highland - Intl Value 1,058,386 4.90 2.13 7.69 2739 35.91 7.49 N/A N/A N/A 6.69 08/01/2017 Highland - Intl Value (net) 200 7.43 26.93 3SA2 7.05 N/A N/A N/A 6.21 MSCI FAM Net 5.17 8.83 26.29 32.35 8.27 N/A N/A N/A 730 MSCI EAFE VI. Net 3.01 10.68 31.93 33.50 3.78 N/A N/A N/A 3.11 The pn-t...tm or swainies enneind herein have been ohealnr fmm anuras believed m be echabb,hoo,e.er, in aemetc,=not be Meuanrm Past perGmnanee a no,a ,o-to.e of famm reaaha. Graystone Page 18 Conslljting'" City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of June 30, 2021 . Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 10 Since Inception Value % To YTD YTD Year Years Years Yeats Years Inception Date Date Renaissance- Intematiot el Growth 1,5 I§) 2438 7.33 2.74 7.30 27.95 37.49 6.06 NIA N/A N/A 4.48 08/O1/2017 Renaissance - Intemational Grourch (net) 2.58 6.96 27.35 36.64 5.39 N/A N/A N/A 3.86 hfSCI AC World" US Net 5.48 9.16 27.73 35.72 9.38 N/A N/A N/A &04 Highland - Fixed Income 4,543,564 21.04 1.94 035 138 2.77 6.05 N/A N/A N/A 4.40 OB/01/2017 Highland - Fixed Income (net) 1.87 0.19 1.15 2A6 5.74 N/A N/A N/A 4.03 B.I.a,s Aggregate IM 4.60 -0.95 -033 5.34 N/A N/A N/A 3.85 intercontinental- Private Real Estate 763,240 3.53 4.40 7.02 7.54 8.50 7.73 N/A N/A N/A 8.64 10/01/2017 fntemontinental- Private Real Estate (net) 4.15 6.51 6.97 7.67 6.42 N/A N/A N/A 7.36 NCRP:117 Property Id. 3.59 5.37 6.58 7.37 5.51 N/A N/A NIA 5.86 Barclays Aggregate 1.83 -1.60 -0.95 0.33 5.34 N/A N/A N/A 3.90 Lazard- Global ln&asreacture 1,056,378 4.89 4.85 8.57 N/A N/A N/A N/A NIA NIA 8.57 01/01/2021 Lazard- Global lnftastruaure(ner) 4.85 8.57 N/A N/A N/A N/A NIA N/A 8.57 DJ Brookfield Gbl Infra Comp TR 7.73 1434 NIA N/A N/A NIA N/A N/A 14.34 Receipt &Diaburscmmt 76,350 0.35 0.00 0.02 0.02 0.02 0.92 N/A N/A NIA 1.08 08/01/2017 90-Day T-Bills 0.01 0.03 0.05 0.08 1.31 N/A N/A N/A 1.32 The Preen. yumcs, m smtistien mnt ntl hemiu harm ban olaainml firm soumm � tote mluble, h�t, its xc os, ov,nm Im lvacentccd. Paw pctrotmana it nm v guannum� of fuetm rcahs. Page 19 Graystone Consulting' City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of June 30, 2021 Current Fiscal 1 3 5 7 10 since Inception Qweter YTD Year Years Yea. Years Yeats lace lion Data Highland - large Cap Value 19.92 5.07 38.90 44.47 11.71 N/A N/A N/A 11.15 07/31/2017 Poles -Large Cap Growth 8.68 1329 N/A N/A N/A N/A N/A N/A 13.41 03/15/2021 6hares - Russell 1000 Growth ETF 8.31 11.81 N/A N/A N/A N/A N/A N/A 13.48 12/31/2020 Boston Panne. - SMID Value 13.00 5.29 50.06 63.97 19.47 N/A N/A N/A 17.18 07/31/2017 Fie. Capital -SMID Growth 8.06 5.28 34.67 53.12 22.13 N/A N/A N/A 21.82 07/31/2017 Highland, Intl Value 4.90 2.00 25.49 34.02 7.31 N/A N/A N/A 6.46 07/31/2017 Renaissance- International Growth 733 2.58 25.64 34.90 5.94 N/A N/A N/A 4.37 07/31/2017 Highland - Fixed Income 21.04 1.87 1.11 2.37 5.65 N/A N/A N/A 3.96 07/31/2017 Intercontinemel -Private Rea E,we 3.53 4.15 6.95 7.63 6.41 N/A N/A N/A 7.30 10/15/2017 Lazard- Glohal lnfrotmcmw 4.89 4.85 N/A N/A N/A N/A N/A N/A 8.57 12/31/2020 Receipt h Disbursement 0.35 -3.91 -15.42 -10.90 .6.49 N/A N/A N/A -5.23 07/31/2017 '['Le prices qudrr, ur slniaic nameined huntin hors Seen obiilnN(mm sworn hBneJ mlx mlubic, hoxmvn, in orcvnry eonnai lwquanmvN. Pan per6munmis noes Graystone guannne of furore resuln. Page 20 CORSllLting`a City of Sebastian Police Officers' Retirement Plan Total Fund - Executive Summary as of June 30, 2021 Manager Performance Chart 45.0 300 E 2 a 15.0 0.0 low 0 Cunenu Fucal 1 3 5 7 10 Since Quarter YID Y. Yura Yaa. Years Ym. Irminion Manager Annualized Performance Corte. Fiscal 1 3 5 7 10 Inception Quan. YID Ycar Yca. Yca. Years Yea. 02/01/2011 Total Fund 5,32 24.95 32.40 12.44 11.18 8.85 8.98 8.70 Policy ladx1 5.59 23.54 29.32 IZ61 II.40 9.18 9.63 9.53 Dincnvlccs -0.27 lAl 308 417 -0.22 -0.33 -0.65 -0.83 Historic Asset Growth C.., Fucm 1 3 5 7 10 lnmpdon Q. Y D Ycar Yea. Yea. Yea. Yeah W/01/2011 Total Fund Hc&mnb9, Markel Val. ?0,708 17,178 IC198 14571 12,098 11.172 8,018 7.730 Nctfu.Lmus -in 181 218 9&3 1238 1$48 2253 3,417 Pau/P.xpoa., -26 -84 .105 -313 -477 -07 -757 -768 In- 83 P 4 313 1,055 1,713 2245 2,960 -9M Gain/Invs 1,016 4,090 4.975 5,301 7}028 7242 9,185 9,176 V.&, Uukv Value 2L60D 21.600 21,6W 21,00 21,600 21,6W 21,600 21,01 Modem Portfolio Statistics Standard Maximum Remm Beta Deviation Dmwdown Total Fund 8.70 9.51 0.98 -17.43 Policy Index 1 9.53 9.48 1.00 -17.24 Manager Risk & Return 14.0 12.0 10A qll 6.0 E a yY 4.11 20 -2o -IA 4.0 -20 .0 0 'ro.l l--.d Up Down Capture Capture 98.54 106.88 100.00 100.00 20 4.0 &0 &0 1&0 12.0 14.0 Risk (Standard Demotion Y.) ® Policy Index 1 . 90-Day T-Bills Alpha Sharpe R-59 uared P Inception Ratio Date -0.57 0.87 0.95 02/01/2011 0.00 0.95 1.00 02/01/2011 The priers, vv.cc urnadso« mnwnW heron hax b.nn nbuin J 6um svurccv belesxil ro b.lable, hnsrnrr, i. aeevnDHonor I><guannle«l. 1'a•1 Per(nm+ance u nvr a s . l nrrmm r wrx Graystone Faye 21 Consuking" City of Sebastian Police Officers' Retirement Plan Total Fund - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets $320 0 3 $24.0 is c S16o a $B2 V �521.6 SrA M.0 1/11 7/11 1/12 7/12 1/13 7/13 1114 7114 t/15 7/15 1/16 7/16 1/17 7/17 1/18 7/19 1/19 7/19 1/20 7/20 6/21 — Tocd Fund — Poky Index i — N. Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Coatnbutioas Dietnbutions Fees Expenses Income As of 04/01/2021 Transfers I..Meot 06/30/2021 Tonal Fund 20,708.34 - 6,420.75 -6,602.51 �26.33 - $3.40 1,099.55 21,599.80 Distribution of Returns 45 30 `a P 0 29 1.5 -5 Tn -t 4'ro-3 -3 Tm-2 -2 To-1 -1 Too 0T.I ITo2 2In3 3904 4To5 Returns 'Ile prines, quotes ornatimin mmmnW herein have been obaw.cd teem a--be4eved m be reliable, ha—ve, iea be 6 ...-d. I+ut prfurmanw is nw ¢ ,nmama nr fnrnr. reswo. Page 22 >5 Graystone Consulting" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Executive Summary as of June 30, 2021 Manager Performance Chart Bolo 60.0 aao mn 20.0 0.0 Gaunt Pnrnl 1 3 Since Quarter YI'D Year Yearn Inception Manager Annualized Performance Current Fi cal 1 3 Inception Qu.ner YrD War Years 08/01/2017 (Iighland - large Cap Value 5.14 3&60 45.13 1201 11.15 RusaJ1100 Value 5.71 36.07 43.68 1242 10.85 Dlfferenars -0.07 233 1.45 -0.41 0.30 Historic Asset Growth Current Fiacal 1 3 Inception Quarter YPD Year Years 08/01/2017 I Iighland - large Cap Value Beginning Market Value 4,183 3.667 3,131 3.283 4,342 Net Comdburens -92 -644 -259 -277 -165 Pea/Itspenuca -5 -14 -18 -52 -73 lncurne 21 63 83 285 US Ga./],us 194 1230 M65 1,063 1,320 l finding Market Value 4,302 4,302 4,302 4,302 4,302 Modem Portfolio Statistics Manager Risk & Return Isn ao 9.0 y� 6.0 W 3.0 0.0 -8.0 4A 01, 4.11 8. Id0 1611 Rink (Standard Deviation %) Iliphhnd-Large Cap Valuc p It asseln000 Value . 90.Day T-BM, 21.0 24L 28.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation w Draredoa CaQttue Caoture Ratio Date Highland - large Cap Value 11.15 18.17 1.01 -28.00 102.83 102.94 0.17 0.60 0.99 08/01/2017 Rursell 1000 Value 10.85 17.80 1.00 .26.73 100.00 100.00 0.00 0.60 1.00 08/01/2017 the pdtts, 4uater, ur snnini« eonminW hrntin M1ars hsn uluvnrd fmm wum. bdic+d 10 M: relubl4 rats rc,ule, howren. its aasnry rannol h guarenre i. pan 1,11-o lanre is nor a Graystone gaarant«of Consulting" Page 23 City of Sebastian Police Officers' Retirement Plan Highland Large Cap Value - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets $6.0 c 9 $5.0 $4J " $4.0 $4.3 $3.0 SL6 $20 F 51.0 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 7/19 10/19 l/20 4/20 7/20 10/20 1/21 4/21 6/21 — Ilighland-large Cap\'slue — ause01000 Value — Net Cmh 1-. Quarterly Change in Assets Market Value Net 0. Market Value A. °f T nsfers Contributions Distnburiona Fees Expenses Inveam e.t As of 04/01/2021 06/30/2021 Highland - urge Cap Value 4,183,478.14 - 926,904.57-1,018,524.86 -5,226.07 - 215,271.16 4,301,902.94 Distribution of Returns 16 1_ d e, B Y LL 4 0 <d -S Too 4To-3 -3 To 2 -2To-1 -1 Too 0Tot ITo2 2'fo3 3To4 4To5 '5 Returns ('.) The paces, quorex orabtiztio mmained I�nrvn have heen otnunal Coen swrrr . bdievN ro M1c reliable, huzrcrtr, in aeevn� armor be [varanicM Pan ped ra unrs b nni a guaAn -°f farm, reanha. Graystone Page 24 Const1lting4M City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of June 30, 2021 Allocation Communicnnnn krvieex Consumer Dixrcdnnvp Ctmzuma suplex linayn. Hahn r oI ,� Indusrnils I- Infinxnati,m'1'cchnology hlatcdnls R,,d Isu,c Un&ics 0.0 6.0 12.0 18.0 24.0 1-]ighland-large Cap Vnluv - Ru fi 1000 Vduc Total Attribution Gm�muniamm Scnvira Consumer Discsrinnary C.omumrr Smplcs Isnnnd Jx I lunhh Cnm Ivdnzmds Inknmvtion'fcchnnhy{y hlarmals Ral Cmm Utilido Performance Communiatim, tieevicc. P, Cmcr I)izncnanv,y .� C,,mauma Stvpla �m I'.ncryy IrNmoab � I lalth (-are Indurtriils Inf usnndnn'I'cchnology Mvmriils Real Csmac � Uriliric� � I 30.0 -1010 -5.0 0.0 50 10.0 Highlvnd-large (ap Vvluc Russell 1000VaIuv -0] -0.6 -0.5 A4 A3 A2 -0.1 0.0 0.1 lTc pdux, yumax, nr xudsdm conuined heron ImWfiuwn�n, its aauncy emna he guamvtecd Past pv(omunm is nma evvnmtm nrrmak hx�hx. Page 25 02 15.0 20.0 0.3 OA Graystone Consulting' City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of June 30, 2021 ABocauon-04/01/2021 Portfolio Benchmark Communication Services 8.37 9.19 Consumer Discrction. 7.24 7.83 Consumer Staples 7.01 7.10 Energy 4.93 5.10 6inanaah 21.82 20.62 Health Cue 11.78 12.60 Industuals 12.36 13.89 Informadon Technology 10.74 9.53 Materials 7,54 4.78 Real Estate 3.71 4.34 utilities 4A8 5.03 Total 100.00 100.00 Performance - Quarter Ending June 30, 2021 Portfolio Benchmark -0.46 3.65 0.8B 5.12 0.66 3.38 12.50 11.77 6.28 7.56 6.08 6.67 2.72 2.98 2.41 1.10 7.17 5.15 7.90 10.77 0.43 -0.40 4.22 5.19 Atuibutiao Secmr Stock Interaction Total 0.01 -0.38 0.03 -0.33 0.00 -0.33 0.02 -0.31 0.00 -0.19 0.00 -0.19 401 0.04 0.00 0.03 0.03 -0.27 -0.02 -0.25 -0.01 -0.07 0.00 -0.08 0.03 -0.04 0.00 0.00 -0.05 0.12 0.02 0.09 0.00 0,10 0.06 0.15 -0.03 -0.12 0.02 -0.14 0.03 0.04 0.00 0.07 0.00 -1.10 0.14 -0.97 Thepneec4uu�m nruits. ammilnal hemn have been nMvnrd(mmsauna bell vd,o be Viable,ho,.zver, iu aaunsl rannnt be hniannuM. li rerfomunauuwa Buvannx of fwurt rcauha. Page 26 Graystone Consulting" City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Portfolio Characteristics as of June 30, 2021 Portfolio Characteristics Top Ten Equity Holdings PorrfoBu B.chmark Portfolio Benchmark Active Quartery Wid. Avg. Mkt. Cap (SOOO) 1G0.444566.551 152,374,M.W Weight Weight Weight Return (1) (1) 1%) C/) Median Mkr. Cap (5(00) 69,916,854.49 13,813,445.89 Price/Paminln mriu 20.03 19.82 JPM.W. Clinic &Co 288 2 3 0.55 277 Price/Bank no 269 271 Bar& of Ammea Ce" 231 1.55 0.76 7.01 5 Y. I?PS Gnmh Rare P/e) 12.07 11.19 Johmon &lohnvon 220 216 0.04 0.86 Be'. (3 Ycan, Monthly) 1.02 LIM Alphabet Inc 2.03 0.49 1.54 21.16 Number of Snwks 95 842 Goldmaa Sacha Group he L85 0.59 1.26 16.45 Debt to P.gnity (A) 301.37 -100.05 Walt Diaery Co (['he) 1.75 151 0.24 4.74 Procter & Gamble Co (I'he) 1.72 1.63 0.09 0.27 Anrhem Inc 1.68 0.47 1.21 6.68 Chevron (b,P 1.65 1.01 O." 1.21 Canacophdlips 1.58 0.41 1.17 15.88 %ofportfnfia 19.65 i215 7.50 Ten Best Pedour ers Ten Worst Pertortners Portfolio Benchmark Active Quarterly PonfoOo Benchmark Active Qaartcry Weight Weight Weight Rr. Weight Weight Weight Return (%) (%) (1i) (°i) (1i) (%) (%) (%) Marathon ()iI Corp 0.63 0.05 0.58 27.96 1. Vvgas Sands Corp 1.07 000 1.07 -13.2il Targcr Carp 1.00 0.33 0.67 n.45 United Airhn s I Ioldings Inc 0.88 a08 0.80 .9.12 Olin Crop 098 0.03 0.95 n.36 Alliance Data Systema Curl, 0.46 0.03 0.43 -6.88 Pod Motor C. 0.46 0.29 0.17 21.31 I ImIcn Packard fiaterprin Co 0.85 0,09 0.76 Alphabet Inc 203 0.49 1.54 21A6 Boring Co 1.39 0.64 0.75 -5.95 Nasdaq inc 1.26 0.10 1.16 19.60 Caterpillar Inc LOt 0.08 0.93 -5.72 Occidental Pemdeum Gnp 028 0.11 0.17 17.51 Coming Inc L01 0.10 0.91 -5.48 American Express Co 086 0.19 0.67 16.82 Cummins Inc. 1.33 OAS 1.15 -5.41 Blackrock inc 122 0,62 0.60 16,59 Walt Dimq G.(Ihe) 1..75 1.51 0.24 4.74 Goldman Sachs (;.)up Inc 1.85 0.59 1.26 16.45 Taoist Pinandal earl, 0.83 0.37 0.46 4.13 %of Portfolio IM57 280 7.77 %afP«rf u. 10.58 3.08 7.50 Page 27 Graystone Consulting City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Executive Summary as of June 30, 2021 Manager Performance Chart 200 I50 e n 10.0 C 5.0 '0 -- Cnmrt sins Quarter Inception Manager Annualized Performance Grrrent Since Inception Quaner 19 fiov Datc point -Iatgn Cap Growth 13.33 3 04/01/2021 Russell 100) Gr 11.94 11.93 Differences 1.39 1.40 Historic Asset Growth Cannot Since Inception theatre, levitation Dam Polen -large Cap Growth 04/01/2021 Beginning Market Value 1,677 1,677 Net Cnnrribudnns 25 -25 Pecs/Expenses - - lncomc _ 2 Gain/Loss 221 221 Ending Marker \Sine 1,875 1,875 Modem Portfolio Statistics Manager Risk & Return 21.0 18.0 150 z9 9.0 e GO 3.0 0.11 J.0 -6,0 .1.8 -1.2 .0.6 011 U, 12 18 2.4 3.11 36 4.2 4.9 5.4 6.0 Risk (Standard Deviui.. %) Polm-large Cap Groxah Q Rnsse111IX10Cr . 90-Da1?-Bills Retarn Standard Rem Maximum Up D. Alpha Deviation Drawdown C�BBrare CaRtrrt, Poles - large Cap Growth 13.33 3.61 0.96 -0.69 104A0 49.60 0.59 RosscB I000 Gr 11.94 3.74 1.00 -138 100.00 100.00 0.00 ne prig, quotes, orstathtiea eornaitN he in Its -been obwinN fi an snurees belimvcd in tv reliable, ha -ever, its accuraq motor te,teirtnced. Past perfo.mana a nat a ti aramc, of fuwm nxuhn Page 28 Sharpe R-Squared Inception Ratio Date 1.20 0.98 04/01/2021 1.04 1.00 04/01/2021 Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets 62.0 `v 3 � 51.9 9 — SIA a 51.4 3/21 4/21 — Polrn -I.W Cap Gr.Wtb — Ra,,OI1000Gs — Nu Cashil. Quarterly Change in Assets Market Value As of 04/01/2021 Pole. - large Cap Growth 1,677,028.39 Distribution of Returns 3 Net Covtribufione Disnibutians Tmvsfers 3B,682.04-63,553.81 $1.9 �$1.9 III 5/21 6/2l Fees Expevses Return Ov Investment -418.11 - 222,796.14 P Y a I 1 0 0 o e 0 0 11 0 0 0 11 <-5 -STo 4 4To-3 -3Tv-2 -2 Tv-1 -1 T.0 0T.I 1'11.2 2To3 3T.4 4To5 Acwms (7.) Thepsira5, quotcq or emnenn eomvnN herein h¢ee been obuinN fsom souaces hdieeNmbe reluble,hmvner, its acmr¢ry rannni be punmmeN. Pan perfosmanm is note gnaraneee of furore vmuhs. Page 29 Market Value As of 06/30/2021 1,874,534.65 Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Portfolio Characteristics as of June 30, 2021 Portfolio Characteristics Top Ten Equity Holrliugs Punfo0o Benchmark Portfolio fl u.hmvrk Active Quarterly Wtd. Avg. Mkt Cap ($000) 628,146,4M.17 779,021,934.68 Wright Weight Weight Return Media. Mkt Cap ($000) 216,W0,381.30 18,429,101.43 (%) CN (%) (%) Price/E.amings ratio 45.66 38.43 Eaeebook lne 9.07 3.94 5.13 18.06 Pnce/Ronk ratio 11.32 13.47 Mirntsoft Corp 8.47 9.68 d 21 15.17 5 Yr. EP Growth Rate (%) 31.55 30.55 Alphabet Inc 7.0 290 4,73 21.16 Rcm N/A 1.W Adnhe luc T20 L33 5.87 23.20 Number of Stocks 25 4" Abbnn lnbmtmict 4.95 0.48 4.47 -290 Debt to Equity (%) 43.80 B172 alesfixcccom Inc 4.91 0.16 435 15.29 Amaz<m.. Inc 4.69 7.08 -2.40 11.19 Via hae 4.W 198 272 10.59 Accmaurc PLC 4.50 0.71 3,79 7.04 7..xtis Inc 4.44 0.40 4.04 18.51 %of Pmtfnhn 60.45 M56 31.89 Ten Best Pcdorm ea Ten Worst Pcdocmera PortfoBo Benchmark Acdea Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Rem. taught Weight Weight Rcmm (%) cr.) (v.) (•,) (°A) (°.) (%) (%) Gartner Me 240 0.10 230 3268 Abbott laboratnria, 4.95 0.48 4.47 -2.90 NlS l Inc 1.54 0.14 1.4) 27.36 Nctiea Inc 270 1.0 1.62 1.26 Intuitive Sugkul inc 210 0.51 1.59 24.46 hlasmamd lnc 433 151 282 2." Illum rm Inc 2.50 0.33 217 23.21 stubucks Corp 321 0.62 259 274 Adobe lac 7.20 1.33 5.87 n.20 Autudesk Inc. 3.30 030 3.00 5.32 AlphalxtInc 7.63 2.90 4.73 21.16 Accrmre lrl.0 4.50 0.71 3.79 Tol II.Pa111o1dm, inc 3.77 1.62 215 20.03 Unitedhralth Grump Inc 3.00 0.12 2.88 8.03 Zones Inc 4.44 0.40 4.04 I&51 SwimNrw Inc 3.94 0.51 3.43 9.89 Alphubetlne 266 3.W -0.34 I&39 Vier lne 4.60 1.88 272 10.59 I accbook lnc 9.07 3.94 5.13 18.06 Amazon.. lnc 4M 7.08 .2,40 11.19 %nf Matfoho 43.31 14.27 29.W %of Narfelo 39.21 1429 24.92 Graystone Page 30 Consulting'" City of Sebastian Police Officers' Retirement Plan iShares - Russell 1000 Growth ETP - Executive Summary as of]une 30, 2021 Manager Performance Chart 20.0 15.0 e n 10.0 z 5.0 0.0 Currant Sinn Quanur Inception Manager Annualized Performance Current Since Inception Quaner Inmption Dam Sharep-Rto.1I1000Growthle I'F 11.81 13.48 01/01/2021 Itu%e111000Gr 11.94 1199 Dtffr,o. -0.13 0.49 Historic Asset Growth Cnrmm Since Ivicea lion Quaner Inception Date iShnrcs-Rus%d11000 Gruwh I':Ilr 01/01/2021 Ocpnnio,marketvoluc 1,06 1,582 Net Gmtrlbodnn% - - lkce/I?xpcnsc% - - Incomc 2 4 Coin/boxy 188 209 Eding Market Value 1795 1,795 Modem Portfolio Statistics Manager Risk & Return 2t0 1&0 15.0 ten 9.0 e G.0 3.0 0.0 .3.0 6.0 -LS -I t1 -05 0n 0.3 In 1.5 2n 25 3.0 35 411 4.5 Risk (Standard Deviation %) i5harc%-Rua%e111000 Gowth La'P Q Rus%c111000Gr . 90.Day'I'-OBI% Return Standard area Hem Maximum Up Doom Alpha Deviation CaPPtute Capture iShares - Russell 1000 Growth FrF 13.48 3.18 097 -1.38 n9.51 76.75 0.13 Russell 1000 Gr 12.99 3.28 1.00 -138 100.00 100.00 0.00 The priers quote%, or valialics conrund hnein have been obtained from nwms Me toMrrL le,h-w , in aecun,annm Pao performance is nota ,more, or rnluo, naWts. Page 31 Sharpe Inception R-Squared Ratio Date 0.68 URI 01/01/2021 0.64 1.00 01/01/2021 Graystone Consulting%" City of Sebastian Police Officers' Retirement Plan iShares - Russell 1000 Growth ETF - Change in Assets & Distribution of Returns as of Jtrne 30, 2021 Historic Change in Assets 52.0 °o $1.4 12/20 1/21 2/21 3/21 4/21 5/21 — iSh. c - R.,sd I1 G-.th RTr — Russell 1000 Gr — Net Cash 1-1. Quarterly Change in Assets Market Value Nrt As of TnnsRta Carsuibutioas Distributions Fees Expenses lnvesmtturn mt 04/01/2021 L%hucs - RusseO 1000 Gmwth EIF 1,605,688.74 - 1,993.36-1,993.36 - - 189 612.04 Distribution of Returns 3 2 T - C c a I I I 0 0 0 0 0 n 0 0 0 ,5 -5 To 4 4To -3 -3 T,, -2 -2 To -1 d'!'o 0 0'!'01 1 To 2 2'ro 3 31b 4 4T.5 Rerur ss V/v) The paces, quoteq orstadstio cantainul hmin have been nbtained 0nrn -n r as bdlered rc. be pliable, h.—, is am ., an, be lnmranlnd. Pas, pcdo—a-e is —is gwrintce n[ Enure n�ulrs Page 32 SL6 6/21 Masker Value As of 06/30/2021 1,795,300.78 2 >5 Graystone Consulting" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Executive Summary as of June 30, 2021 Manager Performance Chart 150.0 100.0 e ,y 5o.a 0.0 Current I'isal 1 3 Since Quarter YID Year Years Inception Manager Annualized Performance Current Fiscal 1 3 Inception Quarter YPD Year Want 08/01/2017 Boston Pann.s-SMID votte 5.40 63.0 73.64 1215 11.36 Russell 2500\q. 5.00 57.65 63.23 10.60 10.84 Diff ees 0.40 5.98 10.41 1.55 052 Historic Asset Growth Cuneat Fiscal 1 3 inception Quarter YID Year Yea. 08/01/2017 Bosom Partner-SSIID Value Beginning Aladct Valuc Z757 836 668 712 672 Net Contributions -93 1,139 1268 1,391 1,384 rem/Bapenses -5 .9 -11 -25 -32 Income 10 23 26 55 66 Gain/laps 138 am 856 676 718 Reding Marker%'slue ?808 2,808 2,808 2,808 $8118 Modem Portfolio Statistics Manager Risk & Return 18.0 15.0 120 9.0 e n 6.0 3.0 0A 1 L10.0 -50 01, 50 Ian IDt 31.0 25.11 31.0 3511 411.a Risk (Standard Deviation Ye) &sstonP.-SMIDVduc Q Rnssc1125UUVI. . 94Day'I'-RiILs Return Standard Bota Maximum UP Down Alpha Sharpe R-Squared Inception Deviation Dmwdn ow Caprure Capture Ratio Date Boston Pertne. - SbUD Value 11.36 25.07 1.10 -39.80 109.87 110.62 -0.13 0.51 0.98 08/01/2017 Russe112500 VL 10.84 22.66 1.00 -34.64 100.00 100.00 0.00 0.52 1.00 08/01/2017 The prices, yuo[es or stable. comained heron have been obtnned from souenx believes] to be soluble, howee , its saverac, cannot begoannmed, Past per(onnanca ,mounts, nr ficane msults. is not a Graystone Consulting`" Page 33 City of Sebastian Police Officers' Retirement Plan Boston SMID Value - Change in Assets & Distribution of Returns as o£June 30, 2021 Historic Change in Assets $4.5 3 $3.0 528 e szs � 51.5 x s0.0 (Si 5) 7/17 10/17 1/19 4118 7/18 10/18 1/19 4/19 7/19 10/19 1/M 4/20 7/20 Io/M 1/21 6/21 — 0nsmn Pumcrx-Sh1ID \'due — Rn.0125W \9. — Na CaA M. Quarterly Change in Assets Market Valuctan, Net Market Value As of Covtributiovs DistribuUovs Fees Expevsea As of T esfere 04/O1/2021 Ittrestmeent 06/30/2021 Boston Pannea - SMID Value 2,757528.37 - 342.370.57 -435,208.07 -4,919.61 - 148,235.27 2,807,806.53 Distribution of Returns 16 1- uo a s w 4 0 <-5 -5 To <To-3 -3 To.2 2To-1 -1 To 0TnI ITo2 2Tn3 irn4 4'm5 >5 Remms(%) "roe priccv, quores, or eimisaa e.n,.t d heroin hove ban nbtvined 0nmsr,urcex lxlicad to ix nimble,hmveveq is nots guanne of future resulu. Gragtnne Page 34 Consulting" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of June 30, 2021 Allocation LrL Cnmuni Dke Sconces Con'." - Consumcr Seiplez lemrgy I I filth f:nrc Indne,ml, In(ormarion'lbchnh, Mvc.ials (teal FItmt' Mid. 0.0 8.0 1&0 24.0 320 40.0 48.0 Runnn Paaanrn-SMID Viluc Rusa1125W VI. Total Atrdbvtioa Comrennieatinn serviva Cons.., Dhn,edonary Coneumer Smplca Ruorgy Mruneials I bnith Ca, ladundal, In( ati.Teehtoluy Mmrnaab Real lstatc udlitio Pecs®once Commumarion ScMc. Cua,aua r Dma efi .y Consumer Saplcs 1 P.new Financleb I ealth Gore Induatdnla Weenauon Tecbnole, Matcdila S� Real (sate Udiues -1&0 -8.0 0A 8.0 1G0 24.0 320 Ihntm Partnca - SMID Value Ru .112500 VL -0.8 46 -0.4 A2 0.0 0.2 0.4 'Il,epnca. yumca. or smtieriee «:nnindh«cin hacbern oManed( ewrse belinN wbe reluble, harrever. i:s aecunq mnnat beguannua•J. Panprr(nnnanxiann,a Su:aann o(Ouurc rcauhs. Page 35 0.6 0.8 Graystone Consulting'' City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of June 30, 2021 ARocatlon - 04/01/202t Portfolio Benchmark Cmu rn men iem Services 2.39 3.21 Const ,Diterramot'y 10.79 1425 Consumer Staples 3.42 3.36 Energy 7.87 3.96 Fnamirt 27.86 21.19 Health Cazc 9.27 6.22 Industrials 16.82 18.28 infomution Technology 10.47 833 Materials 6.87 6.99 Real Estate 2.25 10.55 uti6ues 1.99 3.66 Total 100.00 100.00 Performance - Quaner Ending June 30, 2021 Portfolio Benchmark 3.06 16.80 6.01 4.13 0.73 -0.26 14.74 2-1.99 2.57 2.12 10.60 5.63 4.33 2.83 6.12 3.88 3.24 7.83 8.36 9.48 3.02 -0.22 5.44 5.21 Attribution Sector Stock Intention Tura] .0.10 -0.44 0.11 -0.42 0.04 0.27 -0.07 0.24 0.00 0.03 0.00 0.03 0.70 .0.33 -0.32 0.05 .0.21 0.09 0.03 -0.08 0.01 0.31 0.15 0.47 0.03 0.27 -0.02 0.29 -0.03 0.19 0.05 0.21 0.00 .0.32 0.01 0.32 -0.35 -0.12 0.09 -0.38 0.09 0.12 -0.05 0.15 0.18 0.08 .0.02 0.24 'Ile preen, quotes, or ttadnies mmvined heron lave been obuturd from xnurm batted to be reliable, here-r,, iu areumry eannrn be ltuera ed. Put perfnunnnec in our a Sunennrrn or future reauh.. Page 36 Graystone Consulting'" City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Portfoflo Characteristics as of June 30, 2021 Portfolio Chancwd.ties Top Tee Equity Holdings Ponfofio Benchmark Panfolie Benchmark Active Qumterly Wtd. Avg. Mk, Cap ISM) 6,517,44260 6,993,684.03 Wcight Wcight Weight Rem. Median Mkt. Cap (SW) 5,051,W I.30 1,754,235.39 (%) (%) (BA) CA) Price/lin.ings mdn 15.35 17.15 SLM Corp 1.63 0.11 1.46 16.70 Pdce/Bmk ndo 219 2.23 WCSCO Innmadnnil Inc 1.62 am 1.53 18.93 5 Ye EPS Gmw,h Rate (%) 1217 10.80 Dnmmdhack Hnc & Inc 1.44 0.23 1.21 28.40 Beta (3 Years, Mmtbly) 1.10 1.0) Valvoline Inc 1.37 0.15 122 2499 Numb,rof Stocks 177 1,814 Champion%Cn,p 1.33 0.11 1.22 18.04 Dcbt m 1 quay (%) 166,62 84.30 Gnvisn I Inldings Corp 129 0.18 ill 5.91 ASGN Inc 1.28 0.01 127 1.56 Sync. IkA h tnc 1.27 020 1.07 17.98 RAR Aucdm Sccvicc. Inc 1.26 0.05 121 17.00 Conccm„ia Cntp 1.23 0.17 1.06 7.40 % of podfoli. 13.72 1.36 1236 Ten Best Per(oc.e. Ten Worst Perfocmecs Ponfofio Benchmark Active Quarterly Ponfofio Benchmark Acevc Quarterly Wcight Weight Weight Rem. Wcight Wcight Weight Rem. (1A) Pi) M) (%) Pi) (°A) Pi) (%) Whiting Pcnnl.m CoT 0.34 0.05 0.29 53.88 tlncmmcti. Cnrp 0.34 0.03 0.31 -39.97 Inttvnadmil Game Tccbnnlugy PLC. 0.40 am 0.40 49.28 Rack."cv rf hnology Inc 0.26 0.01 an -17.54 Enccpla. Cn,p 0.44 0.00 0.44 44.3d Sch.6n-6faudoit Intl Inc 0.70 0.03 0.67 -16.74 CommScola: holding Co Inc 0.78 0.00 0.78 38.74 PmA.unncc Grp 0.51 0.03 0.48 -14M Navimt Cocp 1.02 am 0.93 3625 Wabash Nadonal C.p 0.19 0.02 0.17 -14.53 PDC Enmgee Inc 0.45 0.11 034 33.46 ABM Induudcs Inc 0.70 0.07 0.0 -1268 Viper F e Partners IX a32 0.00 0.32 31.10 litho Munrts Inc 0.58 023 035 -11.83 DnmmdWck Enngy Inc 1." 0.23 1.21 28.40 BWXTcchn,,1.iics Inc 0.60 0.03 0.57 -11.56 Nealiec Oilfield Solutions Inc 0.22 0.02 020 27.96 Hologic Inc 0.34 0.00 am -1030 Cnvanm hnldmg Carp am am am 27.Gt Rt RChI INC 0.31 am 0.31 -9.89 %ofponfolm 5.71 0.50 521 %ofpunfoli. 4.53 0.45 4.08 Page 37 Graystone Consulting' City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Executive Summary as of June 30, 2021 Manager Performance Chart 100.0 75.0 2 50.0 Mn' 25.0 0.0 cux t F"ol 1 3 S.cc Q. YID Ycu Y,ars Inccprinn Manager Annualized Performance Cunene Fiscal 1 3 Inception Quancr YPD Yea, Yea. 08/0l/2017 Mcv Caplr4l-SMIDGmwdt 5.54 37.77 57.59 _84 22.51 11.s B 500 GR 6.04 36.81 49.63 20.15 W..57 Difl ns. -0.50 0,96 7.96 269 1.94 Historic Asset Growth Cu.cnt Fisnl 1 3 IncePdon Quaner YID Y., Y.. 08/01/2017 Men Cap1.1- SMID Gmwh Beginning Market Value 1.660 1,018 992 793 669 Nee Cunmburions -8 295 294 269 267 Feaa/P.:pmsee 4 -9 -11 -23 -26 Income _ 6 7 17 21 Gaiv/Loss 90 431 557 683 809 Ending Marker Va1uc 1,740 1,740 1,740 1,740 1.740 Modem Portfolio Statistics Manager Risk & Remm 35.0 SI)ll 25.0 Nl.n L 150 e n ay 1as 5t1 0.0 -5L -10.0 -8.0 AL a0 4.11 Ffl 120 16.0 N.0 24.0 28.0 320 Risk(S,avdar Devladov%) I,m Capita-S\IIDGmw,h Q Russdl25000R . 90 mD T-RBIs Return Staodacd seta Maximum Up Do. Alpha Deviatlon Dmwdowv Capture Capture Fiem Cap,ml - SMID Growth 22.51 20.63 0.93 _22A6 95.66 82.76 2.84 Russell 2500 GR 20.57 21.42 1.00 -23.30 100.00 100.00 0.00 "1Te prices, yuoms, ur smoisdes cmaned herein have hem nbvyneJlmm vm¢es 6dicveJ wbe reliable, howeveq is mm�ey rnnnue lx guannmcd. Put pedommnre is noea guann,ce of (vwrc rtwks. Page 38 Sharpe R-Squared Inception Ratio Dan 1.03 0.94 08/01/2017 0.92 Lo0 08/01/2017 Graystone Consulting" City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets S14 0 51.8 41.] � Sl.fi e SI.'- [R9 � $pb $0.0 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 1/21 4/21 6/21 — M=Capird-SMRDOmw — Rucm112500GR — No Cash Mo. Quarterly Change in Assets Market Value Net Market Value As of T nsfere Covtributiovs Disuibutiove Pees Expenses nv etmevt A.of 04/O1/2021 06/30/2021 Diem Capital- SMID Gmw b 1,660,240.67 - 133,090.35 .140.802.85-4207.95 - 91.578.52 1,739,898.74 Distribution of Returns 20 15 v p 10 L4 5 0 <-5-5'1,,-4 4rn-3-3'1'0-2 1'1'0-1 -11L0 O'1'01 1'Ib2 27b3 3'l'04 4'1115 >5 Rctums ('/o) 1. pm., ymmx, nr srzuxuc. mnuin=d herd. have b— n&v ne f.. —o n Is -a ro be,nliable, ho vneq in acmmcy nnnoi be guaanOwvl. pnei ped vnaoee is not n �r==nffn ranlrs. Graystone Page 39 Consulting- City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of June 30, 2021 AOo.tiom Commwicmon Srn,c s r Gon.nmcr Disaeu,. eamamar nsta.pl,Ier Enngy rma¢�a Indusrials Info®aeon Technology \laturials Real Rsmtc Unittit 0.0 9.0 16.0 24.0 310 40.0 ■ f&mt3pin1-SMIDGrowth Russe112500GR Total Attribution Commumaanon Sirviu Consumer Disoetionary C .uoef Smples Rt ngy Pinanaials Ilemhh Care Industrials Information Technology Materials Real Itshm utilities Performance C.mnmuniation&c icce Coso.on"ITecrctionun. Crmaum, s©plax �rti r•.nsn, Financials I lcdth Caro L Industrials Inf rmatban'I'cahaolo, \lamr uhl Ram] listarc GnhnCY 4,110 45.0 .30.0 .15.0 0.0 15.0 30.0 45.0 I4em C tgml -SMID Gruwh ■ RYvu1125000R 24 -2.1 -Ls -65 .1.2 .0.9 -0.6 -0.3 0.0 0.3 0.6 the pdco, 4uou, , mamlistirs m¢tam@I herein have beam obtamcd from snurom be4e.ed to be reliable, however, Lsucuncy cannot be F an nmN. Past perfutmanm is not a ,; .o-of noun, n suhs. Page 40 0.9 1.2 1.5 Graystone Consulting' City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of June 30, 2021 Communication Services Consumer Discretionary Consumer Smples Energy Finanaals Health Care Industrials Infoanetion Technology blatcnals Real Estate Utilities Total Allocation - 04/01/2021 Portfolio Benchmark 3.23 2.37 21.36 13.12 1.04 2.91 2.96 0.13 6.72 3.88 28.56 28.54 9.85 13.35 21.02 29.04 5.25 3.10 0.00 259 0.00 0.99 100.00 100.00 Performance - Quarter Ending June 30, 2021 Portfolio Benchmark -5,34 6.74 6.90 5.19 -15.83 3.06 24.19 22.06 11.09 6.31 3.19 4.35 6.04 3.95 4.63 9.57 3.89 0.07 0.00 7.71 0.00 1.36 5.29 5.96 Attribution Sector Stock Interaction Total 0.01 -0.29 -0.10 -0.38 -0.06 0.23 0.14 0.30 0.05 -0.55 0.35 -0.14 0.46 0.00 0.06 0.52 0.01 0.19 0.14 0.33 0.00 -0.33 0.00 -0.33 0.07 0.28 -0.07 0.28 -0.29 -1.43 0.40 -1.33 -0.13 0.12 0.08 0.07 -0.05 0.00 0.00 -0.05 0.05 0.00 0.00 0.05 0.12 -1.79 0.99 -0.68 The pnees,quotes,or.swietia conmindd herein have been obrdned from sources befieved to be reliable, however, its aecvney©nnot be gnermmed. Past perfo,.nanee is note go.n. of fuNm results. Page 41 Graystone Consulting- City of Sebastian Police Officers' Retirement Plan Fiera Capital - SAUD Growth - Portfolio Characteristics as of June 30, 2021 Portfolio Characteristics Top Ten Equity Holdings Pord.b. Benchneuk Ponfolin Benchmark Activc Quarterly Wed. Avg. \Ike Cap CM) 12753,94Z3 7,355,016.64 Weight Weight Weight Return Median \Ike Cap (5000) 9,689,69102 I.978,284.33 (a O) N) (1A) (°�) Price/F mingsntiu M43 33.77 pray lne 276 0.00 276 2.07 Price/B k nun 4.83 6.86 Synehmny )•inancial 170 0.00 170 19.92 5 Y,. EPS Growth Ras (%) 2192 IT38 Armwhc-ad Phamace.h ah In, 260 0.30 130 24.90 Beu(3 Ynus,Monthly) 0.94 IA0 Fortino Inc 256 0.00 256 29.16 N.Incrof Stocks 68 1,398 En"ris Inc 255 0.60 1.95 10.07 Debt to lyuity (%) -308.11 208.32 Valcant Pharmaceuticals Intl Inc 2.45 0.00 245 -7.62 Citicen, ancul Grnup Inc 237 0.00 237 4.77 11v0,cGmup Inc 124 0.06 218 53.35 Arista Ncwmks Inc 2.20 0.00 220 2001 C.M. Inc 2.17 0.00 117 -2.65 %of Panfoliu 24.60 0.96 n.W Ten Best Performers Ten Woret Performers PonfoBo B.chmark Active Quarterly Ponfolio Benchmark Activc Quarterly Weight Weight Weight Remm Weight Weight Weight Retain Nov.Cuts, Ltd 206 0.00 2.06 67.82 iRhythm'IInc 1.06 0.07 0.99 -522 Revolve Grnup Inc 2.24 0.06 218 53.35 V ,."c Inc 071 0.00 0.71 -25.62 ShockWave Medical Inc 1.73 023 1.50 45.65 Exdixis Inc 1.16 047 0.99 -1935 Mong,,DB Inc 0.94 0.69 025 35.18 G... dart l la hh Inc 0.97 0.40 0.57 .18b4 Devon F, c , Coep 123 0.00 123 35.14 New Yock'flmcs Co (11,) 1.71 O.W 1.71 43.85 Diek's Sporting GtxxIs Inc. 1.95 0.00 1.95 32.06 Inso Mediest Inc 1.00 0.11 0.89 42.82 Ibnincr Inc 2.56 0.00 256 29.16 Lirhia Alumrs Inc. 0.83 0.03 080 AIM Anowhmd Phumaceuticata Inc 160 030 2.30 24.90 Valeant 1'1umu.1L6c1s Itul Inc 245 0.00 245 -7.62 AtnCure Inc 1.62 0.13 1.49 21.08 Accdcmn Phuma Inc 1.42 0.24 1.18 -7.46 Adsu, Networks Inc 120 0.00 2.20 20.01 I1)ett I Iotcls Corp 1.58 0.00 1.58 -6.12 %of Portfolio 19A3 1.41 17.72 %of Ponfolin 12.89 1.02 11.87 Page 42 Graystone Consulting City of Sebastian Police Officers' Retirement Plan Highland - International Value - Executive Summary as of June 30, 2021 Manager Performance Char[ 60.0 45.0 E y 30.0 a 15.0 0.0 C., Iruml 1 3 Since QUaIt", YID Y. Yca. Inception Manager Annualized Performance Current Read 1 3 Inception Quad" YID Year Ye. 08/01/2017 highland - Ind Value 213 2739 35.91 7,19 6.69 AfSCI FiVC Net 5.17 2429 3235 8.27 7.30 Uiffnences -3.04 1.10 356 -0.78 -0.61 Historic Asset Growth connote Fiscal 1 3 Inception Quarter YID Year Yr. 08/01/2017 Highland - Intl Value Bettina, Dfatket Value 1,038 721 677 70 701 N. Contdbuoon, - 130 130 154 154 Peen/Expenses -1 -3 -3 40 -14 ncnnc 5 14 17 52 67 ('rein/loss 17 196 239 139 151 Ending Market Value 1,058 1,058 1,058 1,058 1,058 Modem Portfolio Statistics Standard Maximu m Remm Deviation Beta Dmwdown Highland - Intl Value 6.69 18.38 1.11 -28.37 MSCI SAFE Net 7.30 15.94 1.00 .22.83 Manager Risk & Return 05 9.9 7.5 4.11 L y� 4.5 6 30 1.5 11.0 .8.11 4.11 0,11 40 B.0 12U 16.0 3111 24.11 280 Risk (Standand Deviation Y.) highland -Intl Value ED h1SCIP:AFENet .90-Dny T-RBIs UP Down Shatpc Inception Ca tore CaPLure Alpha Ratio R-Squamd Date I177 1i3.65 -1.06 0.37 0.93 08/01/2017 100.00 100.00 0.00 0.44 1.00 08/01/2017 The pvicea, yunus,.•made, mnnuned herein have been obtained from sources believed to be wInble, however, is accuracy cannot b xaarantmd.. Pas perfnenceaais nor a ,-I- of faroro ranba, Graystone Page 43 Consulting°" City of Sebastian Police Officers' Retirement Plan Highland - International Value - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets 3 St3 St1 S09 5t8 y` SO.6 S03 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 1/21 4/21 6/21 — I Iighlaad - Intl Value — bISCi RAlrf Net — Ner Cash 14m Quarterly Change in Assets Market Value Net Market Value As of Transfers Contributions Distributions Fees Expenses RevetstmmeDnt As of 04/01/2021 06/30/2021 Highland - Intl Value 1,037,532.65 - 163,450.99-163,394.95-1,297.79 - 22,094.77 1,058,385.67 Distribution of Returns 12 2 :9 R C S 6 � 3 0 <-5-51'a4 -41,3 -3 To-2 2To-1 -1 T.0 0'1'ot ITo2 2To3 3To4 4105 15 Returns (/) The prices, quotas, orxrenetia mnmmd herein have bmn obemned (rum xoure� 1><lieul en b reliable, homneq its aceuaey canroi be guanmecJ. Pan purfnnnans is roi a sea��ce ormtu<c asna=. Graystone Page 44 Consulting` City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of June 30, 2021 ARoratloa Commwioriw Sendccs sump Di,crcdonan Coosumn Smplc, E.", � ITmandals � Flcalth Car' �. Industdals �- _� Infirrmadw T¢honlog, M., d Real F_swa — UNidcs Dther 0.0 &0 16.0 24.0 320 Ilighland-Ind Value N1SC11WPENct Total Aadbution Communi©don,u' ca Consumer Disaeriwasy C soma Staples Energy linandals I Icdth Care Indusmal, Infocmadw'feehwlrryy Racial, Rd I stacc Udlines Other Pedotmaoce C.mnmunicadon.cr6m% �a Cwsumcr Dismrinna,y Cw,umcr 5tapk, Energy pinandatc 14a1d, Care 1ndumd.6 In( m,ariw'I'cchnnlogy �� N a,n % Real Fktatc UNidcs Other 40.0 -20.0 -10.0 0.0 10.0 20.0 30.0 Highland -Ind Value MSCIENFENet -3.6 -3.2 -2.8 -24 -2.0 .1.6 .1.2 -0.8 -0.4 0.0 0.4 lne pdcu. ynoms. ar statistic mmam d hr: in has bttn obsn'nsJ (mm saurccn buf red In be relmble, bmw:veq irx naumqcannot lu guammecd Yat perf imenee in not a gnammeen((mamreml�w Page 45 0.8 1.2 1.6 Graystone Consulting City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of June 30, 2021 Allocation - 04/01/2021 Performance - Quarter Ending June 30,2021 Portfolio Benchmazk Portfolio Benchmark Communication Services 8.05 5.22 -4.91 1.19 Consumer Disactionary 26.13 12.81 -1.87 6.69 Cnnsumer Staples 7,28 1026 12.65 10.55 Encrgy 1.74 3.32 19.27 5.08 Financials 8.89 17.29 3.42 4.77 Health Care 9.94 11.95 0.22 10.98 Industrials 6.73 15.49 -3.50 4.72 Information Technology 23.97 8.96 5.96 9.96 \lmcrials 3.93 7.95 6.10 6.77 Real Estaw 0.00 3.09 0.00 6.12 Otilitics L12 3.65 11.71 0.61 Other 2.24 0.00 3.84 0.00 Total 100.00 100.00 2.35 6.68 Atmbution Sector Stock lvtenetion Total -0.16 -0.32 -0.17 -0.65 0.00 -1.10 -1.14 -223 .0.12 0.22 -0.06 0.04 0.03 0.47 -0.12 0.27 0.16 .0.23 0.11 0.04 -0.09 -1.29 0.2-1 -1.16 0.17 -1.27 0.72 -0.38 0.49 .0.36 -0.60 -0.47 0.00 -0.05 0.03 403 0.02 0.00 0.00 0.02 0.15 0.41 -0.28 0.28 -0.06 0.00 0.00 -0.06 0.60 -3.53 -1.40 -4.33 11c pciis,yuome, or smuvies mnmined heron hmx been abmined Gom s�w2cc be0eveJ ro be reliable, hooever, im accurery rnnnac bebvammnJ. Vane performance is aura ,s.ini, ar rust. naahs Page 46 Graystone Consulting' City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Portfolio Characteristics as of June 30, 2021 Po d.Ii. Cle ncteri tics Top Ten Equity Holdings Portfolio B.chmark Nofo8o Benchmark Acdee Quarterly Wtd. Asg. Min. Cap(5000) 130,054,492.84 78,459,040.74 Weight Weight Weight Rem. Median Alk, Cap(5000) 51058.69628 14,310,3W.28 (1/61 (IN (1) (1o) Price/kmnmgs no 19.73 20A0 Sony Gmup Corpontion 60 M73 5.90 429 Price/Ronk ratio 273 267 SIMimodcetnmics NV 4.99 M15 4.81 4.93 5 Yr. IM G.h Rate (%) 15.02 7.10 ILnchi lad 4.99 033 446 26.56 Beta (3 Yean, Monthly) 1.12 Lw Skmrns AG 4.06 0.72 3.34 .3.70 Nomberof Src¢ks 54 845 Philips lil¢rcama NV 3.91 O.P 364 -11.26 Debt m 1'quity P/<) 94.57 106.M G1.,..irhkii.c PIS: 3.66 058 3.08 11.57 I%imhr AG 3.65 0.45 3.20 0.46 Ky.. Cogt 3.53 0.12 3.41 -267 'Ihiwan Semicandumor 3.49 0.00 3.49 1.97 SAP AG 3.40 0.87 253 16.30 %nfPonfoli. 42.31 4.22 38.09 Ten Beet Perfornen Ten Worst Perfonnem Portfolio Benchmark Active Quarterly Pertfouo Benchmark Active Quanedy Weight Weight Weight Re. Weight Weight Weight Il mm (/) (1) (1r) Nr) (°6) (%) (1A) (% ovintiv Inc 1.06 0.00 IM 3252 Sofbank Gmup Corp 1.19 0.52 0.67 -17.03 Hitachi Lsd 4.99 033 4.66 26.56 Acgnn NV 033 O.W 0.29 -11.30 t):agero PLf: 3.06 0.66 240 16.73 Philips Electmnia, NV 3.91 0.27 3.64 .11.26 SAP .1G 3.40 0.87 253 1" Prulcntial Pl S: 0.92 029 Ito -10.75 Smith & Ncph yv PI.f: 0.76 0.11 0.65 16.01 Sony Gmop Gopontion 6.63 0-73 5.90 -8.29 Atdaemac-Ruseh lnRuv SA/NV 2.85 032 253 15.55 Cops l lnldings SA 0.47 0.00 0.47 -676 Capri I lold'mgs LN 055 04) 0.55 1214 Bud. 1. 1.53 0.00 1.58 -6.27 Yum China I IolJings Inc US 0.00 128 1210 iQIY1 Inc 0.30 0.00 030 4.26 Nationd Grid Plc 0.98 027 0]7 11.71 ID.com Inc 1.54 0.00 1.54 -536 Glasosmithklinc VU: 3.66 0.58 3.08 11.57 SI'hlicm lmmnin NV 4.99 0.15 4.84 -4.93 %of Portfolio M59 3.14 19.45 %of PIMPo6o 21.86 200 19.86 Page 47 Graystone Consulting City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Executive Summary as of June 30, 2021 Manager Performance Chan 6D.o 45.0 E 30.0 z 15.0 0.0 Co., lisml 1 3 slate Quinn Y113 Year Years Inception Manager Annualized Performance concern Fiscal 1 3 Inception Quarter YTD Year Yeata 08/01/2017 Renaissunee- Irrtematirmsl Growth 174 27.95 37.49 6.W 4.48 %ISCI AC World ex US Net 5.48 27.73 35.72 9.38 8.05 Uifft"'e s -2.74 0.22 1.77 .3.32 -3.57 Historic Asset Growth Current Fiscal 1 3 Inception Quarter Ym Year Yeas 08/01/2017 Rcnzissance - Inrcensdonal Growth Beginnng Market Value 1,543 I'm 970 1,006 1,016 Ner Certubutices -1 232 252 30 359 Pees/Expenses -2 4 .8 -22 -M Income 12 17 24 70 89 Crain/Loss 30 299 3" 169 145 Cnding Market Value 1,582 1,582 1,582 1,582 1,582 Modem Portfolio Statistics Manager Risk & Return IIII 10.0 sn en E a K 4.0 za an .0 At Or 4.11 all 129 16.0 MA M11 260 Risk (Standard Deviation%) Renaissance - loavn.tnmal Gerwrh Q MSGI AC Wndd ux US Net . 90.Day T-Bdls Return Standard get. Mxsimmn Up Drove Alpha Sharpe R-Squared Inception Deviation Dr., down CaPm e Capture Ratio Date .is RensuraI- Inrernatrotsl Growth 4.48 18.38 1.13 -33.88 99.I8 I16.09 -3.98 0.26 0.95 08/01/2017 MSCI AC Wotld. US Net 8.D5. 15.87 1.00 -24.30 100.00 I00.00 0.00 0.48 LOD 08/O1/2017 The pricm q....., smdstics contained he,6. have been obraioad So. sources believed 1. be mliable, h ru see, its accuse, cannot h ti mnnmal. Rat perrnnnanee is. not a gunnrntee er rntnre ersmt, Graystone Consulting' Page 48 City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets b? 5 520 51A 51.5 /G SO $0.5 50.0 7/17 10/17 1/18 4/18 7/t8 10/18 1/19 4/19 7/19 10/19 1/20 4/M 7/20 10/20 1/21 4/21 6/21 Rrnvssana - Inremmm�d Gmwtb — MSCI AC world ct US Net — Net Cash 19ow Quarterly Change in Assets Renaissance - lntemational Gtowth Distribution of Returns 16 12 T C P w 4 0 Matket Value Market Value As of Net Covtribufious Distnbutlave Fees Expenses Remtn On As of 04/01/2021 Transfers Investment 06/30/2021 1,543,128.82 - 238.410.86 .238,933.41-2,474.71 - 42,306.91 1,582,43B.47 1-5 -51.4 4T.-3 -31b-2-2'1'n-1-11'00 0tol Vro2 2To3 3To4 4To5 >5 Rttums ('/.) The pans, quutes, or staristim mnuinW h1n9n hmx been obtnincd from soumes believed to h reliable, however, its am ntq cannot be Woiinued. Not petrbnn nm is note ena,nntee of 6.m.e reswt.. Graystone Page 49 Consulting'" City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of June 30a 2021 AOocation Communication Services Cansmncr Disa'cYinnary � - CovswnnSmplcs Cnap< Finanrlels I Imlrh Cam _ IndnaMals Infommtion "Lcchnvlobry Materials —� Baal Cscan: Uehbcs 0.0 6.0 120 18.0 24.0 30.0 Ranaissancc - Inmmammd Gma h bISCI AC Wrxld a US Net Total Atuibatioa frnvm cnnov Semima Consumer Ufsacdonary C,mssa�mer Srpl� Gvcrby Pinnnaals I-Irnith Care Industoals tofommuon'I\ehvolobry Marcdals Ra CsrM UWides Pedormance Communication SCMC¢ Consuntt Discmdnnary Consumer Staples F n, Financials L.-... ,^ Umlt6 Care �-, Indusmals �r - Infomudmt Marnuls =ps R"Carte Utilities -16.0 -0.0 0.0 8.0 Renaissance-Intcmamnal Grow[h MSCI AC Wodd a US Nct -14 -2.1 -1.8 -1.5 -1.2 -0s -0.6 -0.3 0.0 03 'Ifie pncex 4uv�e5. or Sransucs mnmined herein M1avebeen nbtsnedtmmemnrev belinvcd robe rcluble howe.mr, irsaavrary cannrn bcgvavnteN. Pa.rperlormance is norn snnranaenes,tnm remim. Page 50 O6 16,0 24.0 0.9 1.2 Graystone Consulting'' City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of June 30, 2021 All ocatic. -04/O1/2021 Pedo®ante - Quaner Ending June 30, 2021 Portfolio Benchmark Ned lio Benchmark Communication Sorters 10.37 7.07 -6.60 2.08 Consumer Dkccctionary 10.84 13.72 1.00 5.78 Consumer Staples 9.17 8.40 11.15 9.73 Energy 3.47 4.48 14.53 10.92 Finandals 15.97 18.90 0.38 5.91 Health Care 12.04 8.90 10.16 11.50 Industrials 10.31 11.75 -639 5.32 Information Technology 20.33 12.77 0.36 8.26 Materials 3.59 8.22 3.77 8.18 Real &tar 0.00 2.64 0.00 3.24 Utilities 3.92 3.17 10.17 1.80 Total 100.00 100.00 2.18 6.8B Andbudor Sector Stock Interaction -0.16 -0.61 -0.29 0.03 -0.66 0.14 0.02 0.12 0.01 -0.04 0.16 -0.04 0.03 -1.05 0.16 0.15 -0.12 AN 0.02 -1.38 0.17 0.10 -1.01 -0.60 -0.06 -0.36 0.20 0.10 0.00 0.00 -0.04 0.27 0.06 0.15 -4.63 -0.22 '1'hc �nc.s,quotes, or sN6st10 mnuineJ herein have bern nLivncJ(nim souac. blicwW io be NL+bk, howevu,'ua uccuaary annoy bcguarnnn.�. react �crfosmance ix noes Buusanicc of fummsesultx Page 51 Total -1.06 -0.49 0.15 0,08 -0.86 -0.02 -1.19 -1.50 -0.22 0.10 0.29 -4.70 Graystone Consulting- City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Portfolio Characteristics as of June 30, 2021 PoNblio Chametetistics Top Teo Equity Holdings portfolio Benchmark N.I.R. Benchmark Active Quanedy Wed. Avg. \Ike (:zp (5000) 85,984,175.02 102,695,320.87 Weight Weight Weight Return Medan Mkt.(lap(5000) 38,650,741.0 10,297,960.28 CK) No) N.) N/) Price/Yarning, mso 1737 1&53 0i1Co LUKOILPJSC Z33 0.14 219 14.14 Price/Iknk now, 2,64 2.74 SmOands NV 230 0.14 116 10.79 5 Ye ITS Grn elh Ra<c (" aJ 12.37 9.57 Tokyo plectron Ltd 230 024 2W 130 Bern (3 Y-, Monthly) 1,14 1.00 Deusche Pus, AG 2.27 R25 2.02 27.16 Nembcxn(`Smeks 55 2,348 KB Financial Gmnp fe 224 0.07 217 -0.26 Debt to Equm, l%) 85.09 Min Gcdy Automobile l loldinga Ltd 2.21 0.07 2.14 25.00 ve ilia I!mimmirnmm, Pans 2.17 0.06 2.11 20.76 AeK:ap lloldiugn NV 2.12 0.00 2.12 -12.82 Idci Ilxnk Ltd 2.10 0.16 1.94 6.67 NXP Scmiconduama NV 2.07 000 2.07 2.46 of Portfolio 22.11 1.13 2098 Ten Best Performers Ten Worst Performers Ponfoko Benchmark Active Quanely PonfGo Benchmark Ac&c Quarterly Weight Weight Weight Re. Weight Weight Weight Return (1/6) (1) NA) NA) (1/6) 0/6) M) N/6) Deutsche Post AG 127 0.25 202 27-16 Vipshop l loldiny. Limited 1.06 0.03 1.03 -3175 Geely Automobile I lohimp Ltd 2.21 Q07 214 Mw JOW Inc 1.74 OA1 1.73 2&73 Carlsberg A/S 207 0.07 200 21M Lan. Group Ltd 1.99 0.03 1.96 -19.17 Vrolu Eminumencenp Paris 217 0.06 2.11 M76 Sohbaak Gmup Corp 1.48 0.32 1.16 -17.03 BBVA 1.89 0.15 1.74 M..48 Ping An Insurance Group 1.43 0.23 120 -16.18 a Roddy S Laboratories Ltd 1.76 0.03 1.73 19.74 Ac,, Al tbidadcs De Gm tructin. Y Servitica SA 1.47 0.02 1.45 -15.10 Roche I Mic ing AG 1.91 0.96 0.95 16.18 A,olap I [,Athol, NV 2.12 Coo 112 -1282 Sbecbenk of Russia OJSC 1.97 0.16 1.81 15.46 G ,ufi n National Railway 1.70 0.27 1,43 4.60 Neale OYJ 1.49 0.09 1.40 15.13 Sonv Group C.ocpmation 1.72 0.45 127 4.29 O0 Co LUKOIL PJ.SC 233 0.14 219 14.14 Pr Bank Rakyat Indono. TNK 1.58 0.05 1.53 -8.18 of Puctflin 20.07 1.98 I&M % of Pon folio 16.29 1.41 14.88 Graystone Page 52 Consulting' City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Executive Summary as of Jane 30, 2021 Manager Performance Char[ 120 8.0 e 4.6 an _ 0.0 -4.0 Current Fiscd 1 3 Si.. Quarter YTD Y., Y.. Inception Manager Annualized Performance current Fiscal 1 3 Inception Quarter Ym Year Yvan 08/01/2017 Highland - Feed Income 1.94 1.38 177 6.05 4.40 Bamlays Aggmgatc 1.83 -0.95 -0.33 534 3.85 Differ.. 0.11 133 3.10 0.71 055 Historic Asset Growth current Herat 1 3 Inception Quarter YCD Year Years 08/01/2017 Highland - Fact] Income Beginning Market Value 4.461 4,147 4,095 3,551 3.980 Net Co.coln icas - 347 347 345 41 Fees/E pcoscs 4 -10 -13 -35 -53 Income 27 82 1M 356 471 Cain/Lrsa 60 -23 6 327 187 Ending Marker Value 4,544 4,544 4,544 4,50 4,544 Modem Portfolio Statistics Manager Risk & Return 5.6 4.8 4.0 S2 e a 24 1.6 0.8 11.0 -1.4 -0.7 On 11.7 1.4 2.1 28 3.5 42 4.9 5.6 6.3 7n Rtek (Standard Deviation %) I lighland - Fxed Income Q Ba days AW :gam . 90-Day'I'-Rills Return Standard Beta Maximum Up Dr. Alpha Sharpe R-Squared Inception Deviation Drawdawa capture capture Ratio Date Highland - Foxed Income 4.40 4.63 0.91 -4.16 98.54 75.88 0.95 0.67 0.42 08/01/2017 $arelays Aggregate 3.85 3.30 1.00 -3.57 100.00 100.00 0.00 0.78 1.00 08/01/2017 The paces, quges, or sarisda mmeined heain have been obtuned Gam sauces bdie.N io be meablq hnmevcq ics accuracy ennnm Ix guannmN. Past penfinnuanc is not a u nteenffam crearl". Graystone Page 53 Consulting' City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets $24.0 g E16.0 Y $8.0 = v p 50.0 F (E8A) 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/P 7/17 1/18 7/18 1/19 7/19 1/20 7/20 — Iligblxnd-Food ncnme — Iiarclayc Aggregate — Nec Cash Mow Quarterly Change in Assets 6/21 Market Value Net Return On Market Value As of Tese.kte Contributions DiInvestment Feee Expenses Investment As of 04/01/2021 06/30/2021 Highland - Fixed Income 4,460,580.12 - 4,299,995.78-4,300,208.28-3,526.48 - 96,723.34 4,543,564.48 Distribution of Returns 60 45 4 e 30 Y a 15 0 <-5-510-4 -4 Yb-3 -3 To-2 -2 To-1 -1 Too 0TTTo1 I re 2'ro3 3To4 4To5 >5 RCNanE r o) The prim, qo«ev, «suevia nmiand hcran hxe bun obraineJ frc�m s«rrcu lxlicwed ro be rcluble, hmcrvs, its aemney eannoi be guareninrl. Pav pert rmnnee is not a guanmec of Po«m maolis. Graystone Page 54 Consultingna City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Executive Summary as of June 30, 2021 Manager Performance Chart 16.0 120 E E 8.0 z 4.0 alkh 0.0 Current Qnosmr YPD Year Yews laceptlav Manager Annualized Performance Current Fiscal 1 3 Inception Quancr Yr➢ Year Years 10/01/2017 Intcrcontinmral -Privae RLal Fsmtc 4.40 7.54 8.50 7.73 8.64 NCREIFPmpcm Ids 3.59 6.50 7.37 5.51 5.86 Diffacnus 0.81 0.96 1.13 222 278 Historic Asset Growth Current Fiscal 1 3 Inception Quancr YrD Year Years 10/01/2017 Ivnvcontimm�l- pfivwc Rul Eluw Beginning Marker Value 738 725 724 682 112 Ner Canmisudans -5 -II -15 -52 478 Pecs/Exprnsas -2 J -6 -26 -30 - Cain/loss 32 54 60 160 203 Est i g,%IsAa Value 763 763 763 763 763 Modem Portfolio Statistics Manager Risk & Return 12I 10.0 sk 6.11 E a y9 40 2.0 0.0 -e 111.9 -12 -0.6 0.0 11.6 1.2 IP 2.4 30 3.6 42 46 5.4 60 Risk (Suadard Dcvlatian A) Imvcwtiv rnl- Private Rsvl Fsmrc ® NCREIF Pro" Ids . 90-Ihy 7'-B0b Return Btanda d Rem Maximum Up Down Alpha Deviation Drawdown Capture Capture Intercontinental - Nmre Real Estate B.64 4.10 1.16 -0.02 139.73 2.02 1.76 NCREIF Property 1& 5.86 2.96 1.00 -0.99 100.00 100.00 0,00 The pri�,s,yuoms. or slmiseics eomained herein have barn,btined 6om svurcn bn8ectd to be Md 1, hvaexr, as aaanry mnnor be gusmnrecJ. Pasl pcdmmann is n., guaeanren of fumrc resole. Page 55 Sbarpe R-Squared Inception Ratio Date 1.73 0.70 10/01/2017 1.49 1.00 10/01/2017 Graystone Consulting" City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets $1, e 3 50.R rn8 :5 / �$0.7 •C J E0.6 50.4 50.0 E (50.4) 10/17 1/18 4118 7/18 10/18 1/19 4/19 7/19 10/19 1/20 4/20 7/20 10120 1/21 4/21 6/21 ImaxnntinrnN-PmatcRd Exhm — NCRFIr I'mpemldx — No Cvxh M. Quarterly Change in Assets Madcet Value Net Rehm Ov MarketVatue As of Contributions Dismbutiovs Fees Expenses As of 04/01/2021 Ttansfera Investment 06/30/2021 Interconfinwral- Private Real Estate 737,869.00 - --5,052.00-1,783.00 - 32,206.00 763,240.00 Distribution of Returns 45 30 n °a P Y 4 IS 4 0 00 0 0 0 1-5 -5'r°4 4'ru-3 -3 Tot -2 Ta-1 4Tn0 0Tot ITo2 21b3 3To4 41b5 >5 Remora(%) 'the prices, yumex, 0r ganxdrs cunmincd hcreN love tiecn obwncd Form sou.as believed m be n1iaM1lq homncr, iv vmuaq. censor be quaramcN. Pasc pert rmens ie nor v saamna� nrm�nm mxnhx. Graystonc Page 56 Consulting City of Sebastian Police Officers' Retirement Plan Lazard - Global Infrastructure - Executive Summary as of June 30, 2021 Manager Performance Chart 24.0 1R0 e = 120 tC " 0.0 -w" Em Current Sincc Quarry Inccpdon Manager Annualized Performance Current Since Inception Quarter Inception Date l aal- Global lnfreamcrurc 4.85 8.57 01/01/2021 Df Brookfield Gbl Infra Comp'1'it 7.73 14.34 1]ifferences -2.88 -5.77 Historic Asset Growth Co., Since Inception Quarter Inception Date Lazard- Global lnkasnucmrc 01/01/2MI BeQnro., Maakcr Valor 1,008 973 Nct Contributions - - Fces/F.xpcnscc - nc 3 C»in/Loss 46 80 CndinBMarkct Value 1,056 1056 Modern Portfolio Statistics Manage, Risk & Return sw 20.0 16.0 1211 e. E n.n 2 aY 4.0 I1.1 4,0 Atl -1.5 -1.0 .ns n.n 0.5 1 n 1.5 2.0 2.5 3.0 3.5 40 4.5 Rick (Standard Deflation %) 1.,ard- Global lofotructure ® I]f Bnmkfield Gbl Info Qmtp'I'R . 90.Day'I-Bill, Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation D.down CaRtore Cal to - Ratio Date Lazard- Global Infrastructure 8.57 3.01 0.99 .3.41 77.49 310.13 -0.94 0A7 0.85 01/01/2021 Dj Brookfield Gbl Infer Comp TR 14.34 2.82 1.00 492 100.00 100.00 0.00 0.81 1.00 01/01/2021 The pnc�, ywrea, or taunia contained harc h,-b- obmined from ronnes bdiracd to br mliebiq however, nc aceunry ronnw be puanmeed. a mre of fnwrc re alas. paci pe,famanm is nrn a Graystone Consulting'" Page 51 City of Sebastian Police Officers' Retirement Plan Lazard - Global Infrastructure - Change in Assets & Distribution of Returns as of June 30, 2021 Historic Change in Assets $te B Su 51.0--------------- $0.9 50.8 12/20 1/21 2/21 3/21 4/21 5/21 — Isard-G1ohl lnfmstmaum — DJ B.Afidd Gbl W. Comp'1'R — No Cub 1-1s Quarterly Change in Assets Market Value Net As of Tnvsfen CO°mbufiovs Distnbu6ons Fees Expenses Invest aeeturn nt 04/01/2021 tavard- Global lnfi=a,cnuc 1,007,554.97 - 4,652.28 4,652.29 - - 48,822.89 Distribution of Retums 3 M 6/21 Market Value As of 06/30/2021 1,056,377.86 2 - 0 P G t 1 1 1 1 0 n s . n 0 0 0 n <-5 -51'o ATo-3 3To.2 .2 T..1 -1 To0 0To1 1'fu2 2103 3T.4 4'105 15 Returns (%) Thop6c.,yuotcs.orsmdad mmdnedheninha.eb.,)bminedfmmeourmbelimedmbemliabic,howcuer,nsaccnngcnnotbepamntee. Pastpnfom—a nuta snanntec nfr n.e arenits. Graystone Page 58 Consulting' City of Sebastian Police Officers' Retirement Plan Policy Index History As of Tune 30, 2021 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 Remm 50.00 Barclays Aggregate 40.00 MSCI SAFE Na 10.00 lan-2016 S&P 500 Total Return 50.00 Barcays Aggecgatc 40.00 MSCI EAFE Nct 10.00 lu1-2017 RuneO 1000 Value 21.25 Barclays Aggregate 25.00 MSCI EAF'E Net 5.00 Russell 1000 Gr 21.25 Russe0 2500 VL 5.00 Russell 2500 GR 5.00 IdSCI AC Wodd ex US Net 7.50 Alm" MLP Index 5.00 NCREIF Property Idx 5.00 laa-2021 Russell 1000 Value 16.2.5 Barclays Aggrepm 2.5.00 MSCI SAFE Net 5.00 Russell 1000 Gr 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI AC World cx US Net 7.50 DJ Brookfield Gbl infra Comp TEL 5.00 NCREIF Property Id. 5.00 'ITe porn, y�mees, arsuustie. mmainrd Irv,un have bmn nbminnl rmm eiwaex bdmveJ m be reliable, howcoey its vecvnry cannot beguamnmM. v:ui perfonnvva is nova gnamma�r ramie n�nba. Page 59 Graystone Consulting`" Performance Appendix Perfarmanre Dam belowunetajfees. Pleacesee the Morgan Snnlry Sml/h Barney LIX-farm ADY Parr, 2Brochureforadvisgaemunsandtorawry pllcable brokerages lbademnfir llonsmremenufor a full drsclamae ofthe applicable charges, fev arMexperues. Your f/ammlalAdvmr ii,litp mtdc throe dmumeno m ynu upon request. 1 3 5 10 Since Inception Account Name QTD YTD Year Years Years Years Inception Date Boston Partners -SMID Value 5.22 25.27 72.50 11.12 -- - 9.96 07/14/2017 Fiera Capital -SMID Growth 5.28 12.44 56.38 21.93 -- - 20.89 07/20/2017 Highland - Fixed Income 1.87 0.19 2.46 5.74 5.55 5.89 5.64 01/312011 Highland - Intl Value 2.00 7.43 35.42 7.05 - - 6.67 07/172017 Highland - Large Cap Value 5.01 19.59 44.45 11.47 - - 10.40 07/172017 Intercontinental - Private Real Estate 4.15 6.51 7.67 6.42 - - 7.36 10/012017 Lavard-Global Infraswcture 4.85 8.57 - -- - - 8.57 12/312020 Polen - Large Cap Gmsvth 13.30 - - - - - 13.30 04/012021 Receipt & Disbursement -3.79 -25.12 -26.96 -14.50 - - -11.00 08N12017 Renaissance- International Growth 2.58 6.96 36,64 5.39 - - 3.86 07/172017 iShares- Russell 1000 Growth ETF 11.81 13AS - - - - 13A8 12f312020 Allpe,lb rmance above are Time lVeighredffrVRl pert rmamr Cleam'.fTerms Active Conteitions. Return: The .is or loss percenage or. invesnment rctelive to the pMormmoe of the investmcntbenchmerk. Arnie Eaposare: led percemage diRefecee m weight ofthe portfolio compel m its policy b nohmark. Active Rearm: Arithmetic diReroax between the manager's rearm and me bmchmmk's room over a specified time period. Actual Correlation: A measure of the mnelmlon (limes dependence) between two variables X and Y. with a value between+I and-1 inclusive. This is also referred to a<coeRcient afmnelation. Alpha: A measure ofa ponfolids time weighted ream in excess ofine market's mum. both adjusted for risk A positive alpha indicates that the portfolio outperformed the market on a risk -Maned boos. and negative alpha indicates the portfolio did worse than the market. Best Quarter. The highest quartcrly'Mum for it certain time pcned, Betas A measure of the sensitivity ofa portfolio's time weighted return (net of fees) agreed that urns, market. A beta greater than 10 indicates volatility greater than the market, Consistency: The percentage ofquaners that a product achieved a rote ofietum higher than Maurits benchmark. The higher the consistency figure, the am value a manager has contributed to the produel's perfro m ice Co.: Refers to an investmem strategy mardnre that is blend afgmwth and value styles without a pa:munced lilt toward either style. Cumulative SelecBon Rearm ICumufarsr Rearm): Canaan, investment parficons ee over a specified permit ofranc DindhuOon Rate. Tlue coon recenldlstibwion paid, annualire4 and that divided by me current market price. Distribution rate may consist of investment i.e. shon-term aapiml gains. long-term capital galm m llor return oF.piW Down Market Capture: The me. ofev., portfolio returns over the benchmark ding unotls of negative bench rmk return Lower vdues inch. Inner product performance Downside Risk: A ineasure similar m auvdmd deviation but to. only on the negative movements of Mrs return series. It is calculated by taking flue standard deviation ofine negative quarterly set orretums. The higher me velar, the more risk the product has. Downside gem! Deviation: A statistical calculation that measures the volatility ofreman, below a minimum acceptable maim, T'Ivs return measure Isolates the negative p rion o(volwmty the larger me number, me greater the volatility. Drawdown: A dmndown Is the peak-ar-trough decline during a specific period infirm invemncnt, find or commodity. Excess over Benchmark: The vervenlip gam or loss of an investment relative to the investments benchmark. Excess Return: Arithmetic ditfeamcc hareem the marmger's room and the risk -fire mum over a specified time period. Grmadh: A di osd irid investment strategy wMch includes investment selcctom that have capital apprautionas the primary goal• vvsN little cr no dividend parses. These strategies can include reinvestment in expmwion. acquisitions• andlm rescnrth ape development opportunities. Growth of Delta,. The aggegate amomd an investment has gained or lost over a certain time period• also rekrred to as Cumulative Reopen, sorted in terms of the amount o wh¢h an initial dollar investment would have groan over the given time period. Iwaatereest Decision Process (IDP): A .,We] for structuring the investment Pmc. and impkmeming the sect attribution methodologies. The IDP includes every decision made conceming the division ofthe aseees under maregement over the various asset compares, To analyre each decision's contribution to the total return, a modeling approach muse memurc the marginal value clever, individual decision. In this respect the hierarchy of the densioM becomes very impomnt We therefces rue the IDP mWe[, which sores as is pmpcf foundation fen m,asenng the dome. and «taring them to cash other. Information Ratio: Measured by dividing the active roc of me= by the tracking error. The Ingher the Information Recto, the more value-added contributions by the manage, !dawn's Alpha: The lenamsid la. meaurre is a risk-Wjustd perfmmm¢e mamma Net represent the damage return on a portfolio or invesmens above or below Net prcdided by the capita asset pricing model (CAPM) given the ponfoliers m investmrnfs beta mad the average marks mum. This metric is also commonly referral to as alpha Kurtmis: A smtisticd measure that is used to describe Ne distribution, or it.. of observed alma around she meat, sometimes refusal as as the volatility ofvohaility Maatmvm Dnadisom The drandowm is defined as the percent retrenchment from is funds peak to the fuel's trough value, it is in effect form the time the funefs retrenchment begins until a new fond high is rexhed_ The mazimum dravvdov t encompasses both the pond from de funds peak Io the funds vdlay (length), and the lime from the fund's valley to a new fund high (recovery). It measures the largest ,deems, dmv lovn that has oceurrd in my funds dour added. Madero Portfolio Theory (MPT): An investment analysis theory on haw risk -averse Investors can onstruct portfolios to optimize or maximla expected ream based on a given level ol'maAct risk, emphasmrug that risk is id inhmm pare of higher reword. Mutual Fund (MF): An mvevanda program funded by skarfuldees dim trade in Amecvdied holdings and is professioneily managed Peer Group: A combination of funds that share the same investment style combined as a group for comparison Purposes, Peer/ Plan Spur snor Universe: A combination of suet pools inflation plan investments by specific sponsor and plan types for comparison purposes. Performnnee Ineligible Aneta: Performance reruns are notedculated for medals seen becaue azeuam valuations and transaction data for Thee cards are not processed or maintained by as. Common examples of these include life assurance, some annuities and some mots held externally. Performance Statistics. A generic term for various measures of investment performance measuremens mar, Portfolio Charemerislio: A genes, term for venous measures of investment p riflm chmazterima Preferred Reform A term used in the private equity (PE) world, and also referred to as a "Hurdle Ram." It refers f the threshold adum that the limited partners ofa private equity fond mart receive, prim to the PE firm receiving its carried interest in 'carry." Ratio of Cumulative Wealth: A defined ratio ofthe Cumulative Return nick portfolio divided by the Cumulative Return offer benchmark for a certain time period. Re,a slam Based Amnsis: A statistical process for estmand, the ache ombips amuse variables. It Mlud. roam technicians tar mdelmg end analvvng several variables, vhen the focus or on the relationship korven a dependent variable and oM or more independent variables Residual Correlation: Within reruns -based style analysis, residual correlation refers to dre portion ma stmegy s Rturn padcm that consul be explained by its correlation to de assetclass benchmarks bwhich It is being wmpared. Return: A rate of investment performable in, the specified period Ruling Pe..mile Ranking: A measure of. invnrtment ponfinhirs making versus a peer group for a specific ailing time penal (ire. tan 3 Years, tau 5 Years, at R %,oared: The perccmagc of a portfolios per ..c explained by the behavior ofthe appmpmon, Mwhmark. High R-Squared means a higher correlation ofthe portfolios performance m the appopsivm barehmark. SA/CF (Seiner, AcmundComiagled Fund): Represents son acronym for Separmc Account ad Commingled Fund investment vehicles. Senor Benchmark: A market ilex that serves m is proxy for a suitor within an soser0— deSharpe Ratio: domsmthe necss rase ofmtum wcr Nc risk flee reeun divided by the standard viation oflheexcess rtum. Theresins the performance, erase afretum pertmitofrisk Tire M1rgher she value the beam djtuthe product's historical risk-,td perfonnmue results in. Standard Deviation: A smtisocai measure of the range ofa portfolios perficrmome: drc arability ofa return around its event, return over a specified time peed. Total Fund Benchmark: The policy beblhmark for a complete asset pool for could consist of multiple mvestmcatmendestes. Total Fund Composite: The aggregate of multiple pmtf lass whin an asset pool or Iwusehoid_ "tracking Error: A measure ofsmndad deviation nor a pope lios investment performable, relative to the performance of. appmp ed, market benchmark. Traynor Rarlo:Aratio that divides the excess return(above the ml, free fete) by the fiat 's bemto arrive at a unified measure ofnsk Wjuskd return, It is,mernlly usd m tank portfolios, fnds and help de mks. a higher redo is idi uchinofhigoal ofi ens per unit ofmarkl nsk. This maaamcmem con help demrmine if the portfolio is reaching rrs goal of increasing returns while managing market risk. UP Market Capture: The ratio ofaverage portfolio returns over the benchmark during periods ofpvsitive benchmark return. Higher volues indicate better preduct performance_ Upside &rat Deviation: A statistical edict atmn On on. the volmd y afternoon above an accrptable Rtmn. This mtum measure isolates the positive portion ofvolamloy: Nc larger the numb, the greater the volatility Valnc A diversified investment strategy Not includes investment selections which tend. took at a looser price relative to its dividends, comings, and aides. Common duib cia are crocks elm include high dividend, low pricclo-bouk into. and/or low pricetoanomm, it. Worst Qaaner. The limare t rolling qr anerly Rtum for a amain fine period_ Information Insrloaarrr Pe! rmanre re ada arc annualhedfordmepenodsgrrmerthan ant 'ear andhess de all emh andeash eguirolens. rrnlized andrasom zed capital gainr and losses. and&.idea&,, Introm and area.. Tlm irreernmem, nmla drpirnd herein consistent hismdralim fnrmmonce As a rnu/l f., marks ardvip.. carverapefloormare may snryJ m Mealgum shown Posrpe7rmance is not a guarantee offumn results. Please seethe Merger Sfonl, Sndlh Barnry LLC form ADV Part Brocburefar adrkory amounrs and le,any applicable brokerage nerome, rnnde rat floporde r sfommnnfor afull disdmure ofMe applicabrecharges,feesandexpensrr. Your Financialddodsor wiilprovtde chose decnnwnn myna ,Pon realm, Benchmark matters and blends Included in thb material arefor infareamburdpurposes only. are prmided solely in a rmaparmsem root and may not reflect the anderltat, cooperidon anNar horsemen, objeedvefrj anocimed with the is rammir). lumber ore nmmmaged andrim nvid blefor dire[, meanness, index remrvu do not rake no. naounrfers ar oher rhmgn. Sumfear nndeho,es to rcduceperf rmmrarr. Theperfonrmme data shown reQns penal dmmnre, whim don norguorat nieefumrc muha. Investment return andprinrtPd W11flacmnfr so dmf an Investor sshares when redeemed may be north non orleas than original cast Plemenarcarrrnrpemmaner my behigherorlowei than the perfir.damshawn For uvm don nmmM1-eneperfotnnanrc in/nrmadon nleme roman➢ant F'nanrtalAdebror or rhirthefundr' con m yusebshe. Inv lonslmuldcanfullycomiderthefund'sinvalrreatobjecS .ktr,chargesandaaprmnh,fmr trveuinR. ]heprosprrnu nnd.lfnmtlnb/e lM1esummap•prosperms. romaim rh6 andorhrrilrmaiion ehmrhould be mad ranfully .afar imxminR. Imesmrsshou/drcdewiheinfommdon in rheprospercm carefully. Toobminapnexprems.plemecontnndnur Fcnandal Advisor or amh Nefunds4orrgoaiq• webahe. Pau perfoomance is no guarantee of future results. Inverting involves market risk, indWin6 Possible loss ofpnncipid Growth.ven.gd«snot guaanteen profit or dimimm risk. The oaks of them rnmponiescan hest relatively high valuations. Bacaum ofihese high valuations, an investment in a growth stock can be more risky Nan sat investment in acompany with re mWat gruwth espm.tians Value investing involves Ne risk that Nemccommay not Reogmen Nat secvnties are vodervnlusd and they may rim appreciate as anticipated Sualiandmid-capitalization rion,o a may lack the financial comma cs, product diversification and competitive morraplvs oflarger companies The securities ofamdl capitalization companies may not made as readily as, aood be subject to highertereuliry Non gorse and crer.more Out am ru Beunderda aria beM holdings have the same interest rate, inflation aria credit risks Net are associated whh the underlying bondsowned by the funds The rctum ofpntnipvl in bond fulls, tab in foals wkh significant bond holdings, is not gommntttd. lonemational secuntim' prices may carry additional risks. imiWing foreign econotnq political, monetary motor legal factors, changing enrcncy exchange rates, foreign taxes and diffiracrasis in faowial aM ucomlings.ndards, lntemmionolinvestingmrymtbeforeve m Thesamilismaybemogniftedin emerging markers. Altemadre ivvestmcvs, including private equiy funds, mar estate funds, hedge fwdx mmgged (uluRs futxLa, mM (uMa p(hedge ford, private deny. and manaeed finaRi fiuMA aR speculative god entail significant inks that can incl ie loses due to leveraging another speculative investment practmos. lack ofliquidiy, volatility ofretums, Oatrictims on transfemng atimas in a fund potcntid leek of diversification. absence and/or delay ofnfoomation regarding valuation and pricing. complex tax structures and delays in mar rcpordng less regWauon and hipper fees than raw" fords and risks associated wah the oPeratimes. personnel and processes admit advisor. Muster Limited Partnerships (MLP%) ace limited partnerships or limited liability campuniea that are eased an Partnerships and whose interests (limited partnership wits or limited liability company ura s) are traded on saurities exchanges like shares ofcommon stock. Currently, man MLN operate in the energy, re.ral Romances or raid estate sectors. Investments in MLP intcras ere subject o the asks geerally applicable to mmpmics in the energy and natural mou uars scc.rs. Including commodity pricing ask, supply and demand risk, depletion risk and exploration nsk: and MLP interests in the rral estate sector are subject to special asks, including intern rate and property value Buc.otimrs. as well as asks related to general and economic conditions. Bemuse ofthcir nemow focus. MLPs maintain exposure. price volatility ofcommoditrts andtor underlying giants and tend to be more volatile than Iovesunrms Out diversify across many sectors and companies. MLPs am also subject to additional risks including: investors having limited crowd and rights to van oa matters alli tki, the MI.P, limited access to capital, cash Bow risk lack of liquidity, dilation risk, convict of interests, and limited call rights related to acquisitions. Mortgage backed securiller also involve prepayment risk, in Nat faster or slower pmpaymmm than expected on underlying montyge loans can deamaticdly alter the yield-to-matunty afa momgoge-backed security and prepayment risk includes the Possibility that a fM may invest the proceeds at generally lower ,nominates. Tax managed funds may not meet their objective ofbingtaxcDicient. Real estate inveswrds me subject to spxid Oaks, including inemt me and papemy value Roatintiom. well ns risks related. general eta ttonomic cmdiriom. High yieltl fixed income acuities, also known as "junk bolds", are camidercd spttdetive. involve Former risk ofdefach and tend. be more volatile Nun investment gme foxed income stturibm. Credit quality as is messure afit land issuer's crrditxand tress, inability .,epay tan. and pnrcipd to boodholdcrs in a timely manner. The credit ratings shown are bash an memory rating as provided by Standard &Poor's• Mcody's mdfr Fitch, as applicable. Credit ratings are issued by lie mating agencies her the underlying secunties in the fad and mat the fM itself, end the credit quality ofthe securims in the fmddmsnot Rprmenttbemabiliyarsafeyofdwfnd. Creditadngsslmwrange from AAA, beingthe highest. toD• being the lowest baud m S&P and Fitch's classifwanum phe gnisdenl fAso and C. onpoeirsely,by Moabdis). Ratings of BBB orhilher by S&P and Pitch Bra or higher by Moody's)am considered m be imemmcm gadeyuelity u unties. If two or mom ofNe egncirs have asig� diRercnt ratings to a security. die highest rating is applied. SecmifiestMtare owe aced by all there agrncies me listed m"NR". "Alpha it, strategies comprise a core holding of stocks that mimic a benchmark type index such s the S&P 500 to which additional securities are added to help tilt the fund toward potentially uuhawformmg the market in an effort to enhance overall investment mums. Tilt strategies are subject to significant timing risk and could pmentially expose investors to extended periods of wataperfammnaT Custom Account Index: The Custom Account Index is on investment benchmark based on your historical target allocations mai Usurper selection that you mov am to evaluare the pertbrmance ofyour amount Tire Cu min Amount index dines take into consideration certain chances that may have warmed w your ponficho since the axpum nfyour account ia- sat rime, and/or munagerthanties. Ilowmxr. in some circumstances, it may not be an appropriate benchmark fur rase an your spmi fie..coal maniamamn. For detailed repo" of the herarical composition at this blend please croon vow Financial Advisor. Peer Groups Pror Groups are a collection ofsimilar investment strategies that seasonally group investment prducts that share the same investment approach. Peer Goal arc used for comports.. purposes to compere and dlurnale a clients investment portfolio versus its peer awns varm. quantitative metrics like performance and risk. Peer Group comparison is conceptually wartime form oflo nchmark comparison whereby the ncuml investment can be ranked versus its peer across various quantitative metrics All Peer Group data arc provided by Investment Manner. LLC. The URL below provides all the, definitions and methodology most the rarims Pror Groups Impsllwssw.lre-metrics camfsnde-pecr-pmups Peer Group Ranking Methadalogy A percentile rank denotes tie value ofa product in which a certain p cement ofobservations fall within a pace group, The range of percentile rankings is besweca I and 100, where I represents a high statistical value and 100 repmrams a I. statistical value, The 30th ..Inc.pefor example, ie tie value in which 30%o7the highest observations may he found, the 65th percentile is do value in which 65%ofthe highest observations may be found, and m on Percentile rankings am calculated Lead on a normalized distribution ranging from 1 m 100 for all prdtets in each Me group where a ranking of I claimants a high stalmiml value and a making of IO(l denotes a law statistical value. It is Uproar to now thin the mmc tanking methodology applies to all rwistim.implying that a ranking of I will always mean highest voice ucross all somidics For example, consider a rarldremm assessment sing standard deviation s a mesure ofnsk. A percentile ranking what to I for return denotes highest return, whereas a pemntile ranking of I for standard deviation denotes highest risk among peers In addition, values may be and m demonstrate, quartile rankings. For example, dim third anondc is arm known to the 75th percentile, and the median is the SOth percentile Alternatives Gro,slme Consulting is a business of Morgan Sunday Smith Bamey LLC. ("Morgan Stanley") This material is not to be reproduced or dismbutd to any adrer persons (other than professional advisors artiste, investors) and is intended solely far the use offs persaas to whom it has been delivered. The matanal is not for disvibution to the general public. The sole purpose of this material is to inform, and it in an 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 depani boar sumo mentioned may not be suitable for all clients. Any product disused 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 wood or desired investment Objectives. goals, stmwmes. grudeli s,or factnal circiunstmmes crony invretor in any fuM(s). Before making any investment each imemor should carefully consider fe risks associated with tbe investment, as discussed in tbe applicable tattering memorandum. and make is commitment based upon their awn panicular cireummamaa, that theinvestment is wmce isnt win their invasoncm objectives ad risk late.. This information is being provided s a service ofyom Gmymartc Institutional Consultant and does Out supersede or replace your Morgan Stanley customer statement. The information is in ofthe date(s) noted and subject to daily market fluctuation. YOU interests in Almmenve Invcsmrnb, which may have been purchased through us, art generally not held here, and are generally notcovered by SIPC. Tba information provided to you', I) is included as a service m you valuations forceMin products may not be available; 2) is derived from you or another external somee for which wo arc not resposible, and may have beon modified to take into consideration capital sells or distributions to the extent applicable, 3) may, at reflect actual shores, 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 as reporting purposes. Notwithstading the finegoing 1) to the extent this mpmt displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ('IRA"), such positions are held by Mangan Stanley Smith Barney LLC m tic a nodien ofyom Morgan Stanley IRA. and 2) or,. Alternative Invcammat poawn(s) is held by us and is regimered pursuant to the Securities Act of 1933, as amerdad. YOU Alternative Invasumad parsition s) is .ward by SIPC. Alternatives may be rather trdnionar alternative mvcaterml vehicles m.1an ditimal alternative strategy vehicles. Traditional alternume investrams vehitlea may include, but am not limited to. Hedge Foils. Food of Funds filoth registered and unregistai Exchange Funds, Private Emily Funds. Frrvate Credit Fonds, Real Estate Funds, and Managed Futures Funds Non-heditional alternative strategy vehicles may include, but am not limited m.Open or Closed End Mutual Funds, Exchange -Traded and Closed -Fed Funds, Unit Investment Trans, exchange Iistd Real Estate Investment Trusts (RBITs), and Masser Limped Parmandblps(MLPsj These non-Vditionnl altemavve strategy vehicles also seek allcma[ivc-like exposure but have significant dilfnames from uditional ahem twe investment vehicles. Nomtadili... I alterandive strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative proposes such s shomslling leverage, derivatives, and optima, which can immune volatility and the risk ofinvsmnit has. Choraderisnm such as correlation to Unilateral markets, investment ruategy, and market senor separate tan play arole in the classification of a hadiumal sectary, being classified as alternative. Traditional allemotom investment vehicles are llquid and usually art not valued daily. The emmmd valuation provided will be as aftho most meant data mailable and will be included in smnmanes ofyom assets. Such valuation may our be the most seem Provided by the fund in which you are invested. No repreanmlm. is mode that the vstation is market value or then the interest maid be incomes at this value. We are not required to take any action win respect in your nvestment unless valid istmctias se received tram you in u timely mount, Some Positions reflected herein may not represent interests in she find, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the mvsmew performance ofthe fund and may or may not serve Interest for tie length ofthe withholding Morgan Sam Icy does not engage in an independent valuvtinn of YOU alternative investment asxe. Morgan Sunny provides periodic information to you including the mmket value Oran alternative investment vehicle brad on information received from the marmgement ¢miry of the alternative investment vehicle or another service provider. Traditional .hewn ive investment vehicles often are speculative and include es high degree afrmsk.. Investors should carefully review and consider praential risks before investing Certain ofthese risks may include but am tint limited to:• Loss ofodl ar a automated potion ofthe investment due an leveraging rhi selling or other speculative practices,• Lack ofliquidity in dint there may be sm macday market for a fund'- Volatility of rermns.• Resuiaions on tramfcreg inlemses in a Pond:• Formed lack ofdhvemhfieation and reading higher risk due W concentration of uadhng authonry when a single advisor is milirel Absence of information regarding valuations and p teir&• Complex use structures and delays in rx reponingtr I.cu rtgot.,.. and higher has than monad funds. and• Risks associmd with the terminate. persunnel, and processes of them manager. As is diversified global Mm uci it services firm, Morgan Stanley Wealth Management engager in re bound state. ofrctivitics including financid advisory services. investment temperate activities, sponsoring and managing private investment funds, engaging in saker- deder transactions real principal recoities, commodities and foreign exchange mnessumns, research publication, and other activities In Me ordinary course of its business, Morgan Stanley Wealth Management therefore engages in..unties where Morgan Srnley Wealth Management's interests may comfier with the Invariant of its clients, including the private investment funds it manages Morgan Stanley Width Management can give no examine that conflicts of imemst wills resolved in favor of its clients or any such fond, Indices art unmanaged and investors cannot directly invest in them. Composite index results arc shown for illuxurt purposes and do nor represent the performance are specific investment. Past perfmmonce is no guarantee of fnu a results. Adel result may vary. Disoolficalion does net... is profit or protect signed loss in a declining market Am performance or relm it information presented has not been adjusted to re0auhe impact of Me additional fees paid to a placement agent by an investor (for Morgan Stanley plecomrnt chants, is cre- ire upfiom Placement Fes crop to 3%, crud for Morgan Stanley overman advisory client, an annual advisory ftt crop to 2 5%), which would rwll in a substantial reduction in the ..a ifsech fees wen, irrormatd. For most investmenla&,reary clients, the program..I will be chergd an asset -based wrap fee every quarter("the Fes"). In gmerel, the Fee covers investment advisory services and reposing. In addition to the Fee. client will pay the fees and expenses ofany funds in which their account is invested. Fund fies and expenses are charged dually to the pool Orientals the fund invest in and impact the valuations. Clients must undermmtd Nat these fees and expenses art an additional cast and will not be, included in the Fce amount in the account statement. As five are deducted quaserly, Me, compoundmg effect wall be to increase Me impact ofthm fee by an amount directly related W din gross account Forfmosan. For example, for an remount with an initial value of 100,000 and a 2.5%annual Ftt, irthe groan performance is 5% per year over a threeycor peril, the compounding eft' t ofthc hes cull result in a net annual compound mte aFretum ofapprusimacly 2,40% per year over Mutt year period, and Ma tort value ofNc client's Fosfnlio at the end arts three year period would be approximately $115362 50 without is loss.rd S 107.3T2.63 wish the f .Please see is appbcaMc Morgan Stanley Smith Banner LLC Form ADV Pas 2A for more information including a description of the fine scsdWe It is available m www mmnanaenlev.crm/ADV <Mtn //— tmnlADV> hnp:/A.rourManaraaley mWADW or from Your Finance]Ate r/Pris: WedI Advisor Alterative investments involve complex tax suuctums, rx inefficient mveslin& and delays in dhmibuling important tor, information. Individual funds have specific risks relad W their investment programs that will vary front fund to fund. Client should consult their own tax and legal advisors se Morgan Stanley does not provide lax or legal advice Interests in atemative imv, srnt product am offered Former to the corms of the applicable offering memomndmn, arc distributed by Morgan Stanley Smith Barney LLC and cemtin of it affiliates, and (1) are not FDIC -insured, (2) am not deposits or other obligations of Morgan Stanley or my of it affiliates, (31 are not guaranteed by Morgan Stanley and it affiliates, and (41 involve tnvesment risks, including possible Ines ofprincip 1. Morgan Stanley Smith Rome, LLC is a registers bmkerdealer, not a bank. SIPC insurance does not apply W precious metals, other commodities, or traditions dtemative investments. Q 2018 Morgan Stanley Smith Barer LLC Member SWC. Money Markets Funds You could lase money in Money Market Foods. Although Mi classified es goverment funds lie .. MMFs that invest 99.5% of total ressions in cash and/or securities backed by the US govemment)and Mail funds (i a.. MMFc open to muual person investors only) sack W preserve valuer 11.00 per share, they carrot guarantee they will do an The price ormor MMFs will ffucW.r and when you sell shores they tray be wand mom orlessrh.n originally paid. MMFs rem impose a fee upon sale or temporarily suspend vler illiquidity falls withdrawal check minimums. During its A MIorq shams would rot s available for purchases, withdrawals, check writing or ATM debits.AMMF investment is rootinamcd or guaranteed by Me Federal Deposit Irturantt Corporation or othergovemmrnt agency.