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HomeMy WebLinkAbout03-09-2023 Agendaama HOME OF PELICAN ISLAND PUBLIC NOTICE — THE POLICE PENSION BOARD WILL HOLD A REGULAR MEETING THURSDAY, MARCH 9, 2023 BEGINNING AT 5:00 P.M. THE PUBLIC CAN ACCESS THE MEETING VIRTUALLY VIA ZOOM BY FOLLOWING THE DIRECTIONS SHOWN AT THE BOTTOM OF THIS AGENDA. HOWEVER. THE PUBLIC IS ADVISED TO CHECK THE CITY WEBSITE FOR UP-TO-DATE INFORMATION ON ANY CHANGES TO THE MANNER IN WHICH THE MEETING WILL BE HELD AND THE LOCATION. AGENDA A. CALL TO ORDER Chairperson B. ROLL CALL Chairperson C. VOTE TO EXCUSE ABSENT BOARD MEMBER(S) Chairperson D. APPROVAL OF MINUTES: 1. December 8, 2022 Regular Quarterly Meeting Chairperson E. OLD BUSINESS: Approval of Payments: Ken Killgore, Plan Administrator a. Highland Capital — October to December — Value, ADR $ 6,152.19 b. Highland Capital — October to December — Fixed Income $ 2,571.26 c. Boston Partners — October to December $ 5,688.25 d. Fiera Capital — October to December $ 2,704.72 e. Renaissance — October to December $ 2,275.31 f. Polen Capital — October to December $ 2,031.86 g. Graystone Consulting — October to December $ 4,000.00 h. Foster & Foster — Actuarial Report and Required Disclosures $14,173.00 i. Klausner, Kaufinann, Jensen & Levinson - November to January $ 9,044.72 j. Division of Administrative Hearings — William Grimmich $ 135.00 k. City of Sebastian — Administrative Services January to March $ 6,000.00 1. City of Sebastian — Janet Graham 12/08/2022 Meetings $ 125.00 m. Salem Trust — October to December $ 4,858.81 2. Consideration of Online Portal for Plan Members Doug Lozen, Foster & Foster F. NEW BUSINESS: 1. Report from Investment Monitor Andy Mcllvaine, Morgan Stanley G. LEGAL UPDATES: Klausner, Kaufman, Jensen & Levinson Bonni S. Jensen, Board Attorney 1. Update and Consideration of Action Needed on Grimmich Forfeiture Process 2. IRS Mileage Rate, Maintaining Internal Controls and SECURE 2.0 Act 3. Other Legal Matters H. PLAN ADMINISTRATOR REPORTS Ken Killgore, Plan Administrator 1. Budget vs. Actuals Report/Calendar of Board Activities/Other Administrative Matters I. NEXT SCHEDULED OUARTERLY MEETING: June 8, 2023 Chairperson ADJOURN Please note: In accordance with Florida Statue 286.0105: any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at killgore@cityofsebastian.org or telephone 772-388-8205. Click this link to join the webinar: httns://us02web.zoom.us/i/87466048314 Or One tap mobile: US: +13052241968„87466048314# or +13092053325„87466048314# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 646 9313860 or +1 929 436 2866 or +1 301 715 8592 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 346 248 7799 or +1 360 209 5623 Webinar ID: 874 6604 8314 International numbers available: httns://us02web.zoom.us/u/kmOaaaSc9 City of Sebastian Police Officers' Retirement Plan Quarterly Performance Report As of December 31, 2022 Graystone Consulting from Morgan Stanley Scott Owens, CFAe, CIMAo David Wheeler, GIVIM, CFPo, CRPSo Theodore J. (TJ) Loew, CFAo Managing Director - Wealth Management Managing Director - Wealth Management Vice President - Wealth Management Institutional Consulting Director Institutional Consulting Director Institutional Consulting Analyst Corporate Retirement Director Alternative Investment Director Theodore.Loew@msgraystone.com Impact Investing Director Corporate Retirement Director (813) 227-2088 Alternative Investment Director David.A.Wheeler@msgraystone.com Scott.Owens@msgraystone.com (813) 227-2178 (813)227-2027 WEALTH MANAGEMENT Morgan Stantey Quarter in Review 4Q 2022 As of December 31, 2022 As the Fed raised interest rates 4.25 percentage points throughout 2002, with the hope to lessen the economic impact of 40-year-high inflation, equities declined to bear market lows and fixed income returns fell the most in decades. Fourth quarter equity returns improved from the lowest bear -market lows. For the quarter, value stocks outperformed growth stocks and large -cap outperformed small -cap. The Dow Jones Industrial Average rose 16.o%while the Russell Mid cap gained 9.2%, the S&P Soo improved 7.5%, and the Russell 2000 Small -Cap Index increased 6.2%. The fourth quarter began with the US Bloomberg Aggregate Index down nearly 3.5% since December 31, 202i, and the S&P Soo at a new 2022 bear market low (-25.3% since the end of 2023.). US 10-year yields rose to 4.24% by October 24. After the UK reversed its government's tax and spending plans in mid -October, a bear market rally ensued from mid -October until the end of November. This rally was supported by better - than -anticipated 3Q22 earnings results and declining commodity prices. Oil prices continued to weaken through the year, with WTI returning to $71 by early December (down 42.6%from the March 8, 2022, high of $1.30). Following the midterm elections and crypto-verse events in early November, COVID protests began in China and members of the US Fed provided hawkish comments. While consumer sentiment declined to the lowest point in decades, the consumer remained healthy across many regions and demographics due to a strong labor market and personal balance sheets. China moved away from zero-Covid at the beginning of December and investors considered the implications of China reopening. Meanwhile, Fed Chair Powell highlighted the significance of wages in determining the level of inflation as a key metric to watch going forward, and the FOMC remained committed to monetary policy tightening until inflation moves sustainably lowertoward the 2%target. Consensus priced for a soft landing. While the 2Y1oY remained inverted (lowest since 1981), US 10-year yields declined to 3.9% by the end of December. Across the globe, equities in regions outside the US outperformed US equities and the US dollar posted a 2.54% total return since 3Q22. For the S&P 500, nine sectors posted positive returns for the 4Q versus the close on September 30, 2022. The Energy (+22.7%), Industrials (+19.2%), Materials (+15.0%), Financials (+13.6%), Health Care (+12.8%), Consumer Staples (+12.7%), and Utilities (+8.6%) sectors improved relative to the S&P 5oo. Meanwhile Information Technology (+4.7%),Real Estate (+3.8%), Communication Services (-1.4%), and Consumer Discretionary (-10.2%) underperformed the S&P 5OO's 7.5% rise since September 30, 2022. The Fed continued with its rate hiking campaign and raised rates 75 basis points in November and 5o basis points in December. The US Aggregate Bond Index, a broad measure of the US bond market, rose 1.9% in 4Q22 after a 4.8% decline in the third quarter, a 4.7% decline in the second quarter, and a 5.9% decline in the first quarter. The yield on the 10-year US Treasury note closed the fourth quarter at 3.87%, up from the 3.83% at the end of the third quarter. The yield on 3-month Treasury bills was 4.4%, up from 3.3% at the close of the third quarter. Source: Bloomberg and Morgan Stanley Wealth Management Global Investment Office Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any security or other financial instruGraystone in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pa &rITH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I QUARTER IN REVIEW consulting, 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stantey Capital Markets Performance Capital Market Returns As of December 30, zozz; Private Real Estate as of September 30, zozz ASSET CLASS INDEX IN USD Global Equity Global Equity MSCI All Country World US Equity S&P 500 International Equity MSCI All Country World ex US Emerging Markets Equity MSCI Emerging Markets Global Fixed Income Investment Grade Fixed Income Bloomberg US Aggregate Inflation -Linked Securities Bloomberg Universal Govt Inflation -Linked High Yield Bloomberg Global High Yield (H) Emerging Markets Fixed Income JP Morgan EM Bonds (UH in USD) Alternative Investments Global REITs FTSE EPRA/NAREIT Global REITs Commodities Bloomberg Commodities MLPs Alerian MLP Hedged Strategies HFRX Global Hedge Fund Index Managed Futures HFRX Macro/CTA Index Private Real Estate NCREIF Private Real Estate Global Cash Cash Citigroup 3-month Treasury Bill Other Fixed Income Municipal Fixed Income Bloomberg Municipal Bond 3-MONTH YTD 1-YR 3-YR ANN 5-YR ANN 9.9% -18.o% -18.o% 4.4% 5.5% 7.6% -18.1% -18.1% 7.6% 9.1% 14.4% -15.6% -15.6% 0.5% 1.3% 9.8% -19.7% -19.7% -2.6% -1.5% 1.9% -13.0% -13.0% -2.8% 0.1% -0.1% -17.4% -17.4% -1.8% 0.8% 6.4% -11.0% -11.0% -1.3% 1.2% 8.5% -11.7% -11.7% -2.6% -1.6% 7.5% -23.6% -23.6% -5.0% -0.1% 2.2% 16.1% 16.1% 12.5% 6.3% 10.1% 30.9% 30.9% 8.6% 3.2% 0.2% -4.4% -4.4% 1.8% 1.3% -2.2% 3.8% 3.8% 2.2% 1.7% - 9.4% 16.1% 9.9% 8.6% 0.9% 1.5% 1.5% 0.7% 1.2% 4.1% -8.5% -8.5% -0.8% 1.3% Source: FactSet, Bloomberg, Morgan Stanley Wealth Management G10. For more information about the risks to Master Limited Partnerships (MLPs), please referto the Risk Considerations section atthe end ofthis material. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any security or other financial instruGraystone in anytrading strategy. Please referto important information, disclosures and qualifications atthe end of this material. Pa dNSILTH MANAGEMENT GLOBAL INVESTMENT OFFICE I CHARTBOOK I QUARTER IN REVIEW consulting, 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Total Returns on Major US Stock Market Indices As of December 31, 2022 20% 16.o% io% 0% -10% -20% -30% -40% Dow Jones Industrial S&P 500 ■ 4Q 2022 -32.50/0-32.5% NASDAQ Composite Russell i000 ■ YTD ■ year vs prior year (December) month end Russell 2000 Source: Bloomberg, Morgan Stanley Wealth Management GIO Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any secGraystone financial instrument or to participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Market Performance pa alth Management Global Investment Office I Chartbook I Market Perspectives - YTD Through DECEMBER 2022 Consulting`, 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stan ley Russell Style and Market Capitalization Indices As of December 31, 2022 15% 12.4% -5% -10% -15% -20% -25% -30% -35% Russell l000 Value -29.1% -29.1% Russell l000 Growth ■ 4Q 2022 Russell Russell Russell Midcap Value Midcap Growth 2000 Value ■ YTD year vs prior year (December) month end Russell 200o Growth Source: Bloomberg, Morgan Stanley Wealth Management GIO Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any secGraystone financial instrument or to participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Market Performance pa �alth Management Global Investment Office I Chartbook I Market Perspectives - YTD Through DECEMBER 2022 Consulting`, 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stantey S&P 500 SectorTotal Returns As of December 31, 2022 4Q22 Energy 22.7% Energy Industrials 19.2% Utilities Materials 15.0% Staples Financials 13.6% Health Care Health Care 12.8% Industrials Staples 12.7% Financials Utilities 8.6% Materials Technology 4.7% Real Estate i Real Estate 3.8% Technology Communication Services -1.4% , Discretionary Discretionary -10.2% =01� Communication Services -20% -10% o% 3.0% 20% 30% 2022 -o.6% -2.0%' -5.5% -io.6% - -12.3% 10 -26.1% - -28.2% - -37.0% — -39.9% -6o% -40% -20% o% 65.4% 1.6% 20% 40% 6o% 8o% Source: Bloomberg and Morgan Stanley Wealth Management G10. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any security or otherfinancial instruGraystone in any trading strategy. Please refer to important information, disclosures and qualifications at the end of this material. Pa &WITH MANAGEMENT GLOBAL INVESTMENTOFFICE I CHARTBOOK I QUARTER IN REVIEW consulting, 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Fixed Income Performance (Total Return %) As of December 31, 2022 3.5% 0 10% 9.6% 8.o% 7.1% 8.1% 5% 4.1% 4.5% 4.2% 2.0% . 1.9°= , . 1.8°� 0% -5% -10% _ o-11.8%1.8% 1 0% 1 0% 0 11.2% 0 1 15 /0 3 3. -11.2% -12.7 /0 -13 7% 3 7 o -16.z% -16.z% 1 8/0 -20% 7 0 2-1g.g%1g.g% -17.8% 21. % -1. % -25% -zz.g% -zz.g% 7 7 US Global US Global US Global Global US Govt/ EM Equities EM Debt TIPS Inflation -Linked Aggregate Aggregate HY Corp High Yield Major (xUS) Corp ■ 4Q 2022 YTD year vs prior year (December) month end Source: FactSet. (i) Represented by Bloomberg US Treasury Inflation Protected Notes (TIPS), Bloomberg Global Inflation -Linked, Bloomberg US Aggregate, Bloomberg Global Aggregate, Bloomberg US High Yield — Corporate, Bloomberg Global High Yield, Bloomberg Global Majors (x US), Bloomberg US Government/Corporate, Bloomberg Emerging Market Local Currency Broad, JP Morgan GBI-EM Global Diversified Composite Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any sec Graystone financial instrument or to participate in any trading strategy. Please referto important information, disclosures and qualifications at the end ofthis material. This slide sourced from Market Performance pa �alth Management Global Investment Office I Chartbook I Market Perspectives - YTD Through DECEMBER 2022 �Onsulting`8 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker -dealer in the United States. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan 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 considerthe risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Morgan Stanley Smith Barney LLC offers investment program services through a variety of investment programs, which are opened pursuant to written client agreements. Each program offers investment managers, funds and features that are not available in other programs; conversely, some investment managers, funds or investment strategies may be available in more than one program. Morgan Stanley's investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be appropriate for you. Please see the Morgan Stanley Smith Barney LLC program disclosure brochure (the "Morgan Stanley ADV") for more information in the investment advisory programs available. The Morgan Stanley ADV is available at www.moraanstanlev.com/ADV. Sources of Data. Information in this material in this report has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy, completeness ortimeliness. Third -party 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 date of this material and are subject to change without notice. This material was not prepared by the research departments of Morgan Stanley & Co. LLC or Morgan Stanley Smith Barney LLC. Some historical figures may be revised due to newly identified programs, firm restatements, etc. Global Investment Manager Analysis (GIMA) Focus List, Approved List and Tactical Opportunities List; Watch Policy. GIMA uses two methods to 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 either process and will no longer be recommended in investment advisory programs (in which case the investment product is given a "Not Approved" status). GIMA has a `Watch" policy and may describe a Focus List or Approved List investment product as being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved." The Watch period depends on the length of time needed for GIMA to conduct its evaluation and for the investment manager or fund to address any concerns. Certain investment products on either the Focus List orApproved 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 overtime. For more information on the Focus List, Approved List, Tactical Opportunities List and Watch processes, please see the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management. Your Financial Advisor or Private Wealth Advisor can also provide upon request a copy of a publication entitled "Manager Selection Process." The Global Investment Committee is a group of seasoned investment professionals who meet regularly to discuss the global economy and markets. The committee determines the investment outlook that guides our advice to clients. They continually monitor developing economic and market conditions, review tactical outlooks and recommend model portfolio weightings, as well as produce a suite of strategy, analysis, commentary, portfolio positioning suggestions and other reports and broadcasts. The GIC Asset Allocation Models are not available to be directly implemented as part of an investment advisory service and should not be regarded as a recommendation of any Morgan Stanley investment advisory service. The GIC Asset Allocation Models do not represent actual trading or any type of account or any type of investment strategies and none of the fees or other expenses (e .g. commissions, mark-ups, mark-downs, advisory fees, fund expenses) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models which, when compounded over a period of years, would decrease returns. Adverse Active AlphaSM 2.0 is a patented screening and scoring process designed to help identify high -quality equity and fixed income managers with characteristics that may lead to future outperformance relative to index and peers. While highly ranked managers performed well as a group in our Adverse Active Alpha model back tests, not all of the managers will outperform. Please note that this data may be derived from back -testing, which has the benefit of hindsight. In addition, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. Our view is that Adverse Active Alpha is a good starting point and should be used in conjunction with other information. Morgan Stanley Wealth Management's qualitative and quantitative investment Graystone DISCLOSURES Consulting, Page 8 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors including, but not limited to, manager turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha ranking. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. The proprietary Value Score methodology considers an active investment strategies'value proposition relative to its costs. From a historical quantitative study of several quantitative markers, Value Score measures perceived forward -looking benefit and computes (i) "fair value" expense ratios for most traditional investment managers across 40 categories and (a) managers' perceived "excess value" by comparing the fair value expense ratios to actual expense ratios. Managers are then ranked within each category by their excess value to assign a Value Score. Our analysis suggests that greater levels of excess value have historically corresponded to attractive subsequent performance. For more information on the ranking models, please see Adverse Active AlphaSM 2.0: Scoring Active Managers According to Potential Alpha and Value Score: Scoring Fee Efficiency by Comparing Managers"Fair Value" and Actual Expense Ratios. The whitepapers are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,o98 applies to the Adverse Active Alpha system and/or methodology. Additionally, highly ranked managers can have differing risk profiles that might not be appropriate for all investors. For more information on AAA, please see the Adverse Active Alpha Ranking Model and Selecting Managers with Adverse Active Alpha whitepapers. The whitepaper are available from your Financial Advisor or Private Wealth Advisor. ADVERSE ACTIVE ALPHA is a registered service mark of Morgan Stanley and/or its affiliates. U.S. Pat. No. 8,756,o98 applies to the Adverse Active Alpha system and/or methodology. The Global Investment Manager Analysis (GIMA) Services Only Apply to Certain Investment Advisory Programs GIMA evaluates certain investment products for the purposes of some — but not all — of Morgan Stanley Smith Barney LLC's investment advisory programs (as described in more detail in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management). If you do not invest through one of these investment advisory programs, Morgan Stanley Wealth Management is not obligated to provide you notice of any GIMA Status changes even though it may give notice to clients in other programs. Strategy May Be Available as a Separately Managed Account or Mutual Fund Strategies are sometimes available in Morgan Stanley Wealth Management investment advisory programs both in the form of a separately managed account ("SMA") and a mutual fund. These may have different expenses and investment minimums. Your Financial Advisor or Private Wealth Advisor can provide more information on whether any particular strategy is available in more than one form in a particular investment advisory program. Generally, investment advisory accounts are subject to an annual asset -based fee (the "Fee") which is payable monthly in advance (some account types may be billed differently). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor. In addition, each account that is invested in a program that is eligible to purchase certain investment products, such as mutual funds, will also pay a Platform Fee (which is subject to a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program may also pay a separate Sub-Managerfee, if applicable. If your account is invested in mutual funds or exchange traded funds (collectively "funds"), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund's share price. These fees and expenses are an additional cost to you and would not be included in the Fee amount in your account statements. The advisory program you choose is described in the applicable Morgan Stanley Smith Barney LLC ADV Brochure, available at www.moraanstanlev.com/ADV. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA") programs may effect transactions through broker -dealers otherthan Morgan Stanley or our affiliates. In such instances, you may be assessed additional costs by the otherfirm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of theirtrades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: www.moraanstanlev.com/wealth/investmentsolutions/odfs/adv/sotresoonse.odf. For more information on trading and costs, please referto the ADV Brochure for your program(s), available at www.moroanstanlev.com/ADV. or contact your Financial Advisor / Private Wealth Advisor. 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 Graystone DISCLOSURES Consulting, Page 9 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Management or its affiliates receive compensation from, or otherwise related to, those investment managers or mutual funds. For example, a Financial Advisor may suggest that GIMA evaluates an investment manager or fund in which a portion of his or her clients' assets are already invested. While such a recommendation is permissible, GIMA is responsible for the opinions expressed by GIMA. Separately, certain strategies managed or sub -advised by us or our affiliates, including but not limited to MSIM and Eaton Vance Management ("EVM") and its investment affiliates, may be included in your account. See the conflicts of interest section in the applicable Form ADV Disclosure Document for Morgan Stanley Wealth Management for a discussion of othertypes of conflicts that may be relevant to GIMA's evaluation of managers and funds. In addition, Morgan Stanley Wealth Management, MS&Co., managers and their affiliates provide a variety of services (including research, brokerage, asset management, trading, lending and investment banking services) for each other and forvarious clients, including issuers of securities that may be recommended for purchase or sale by clients or are otherwise held in client accounts, and managers in various advisory programs. Morgan Stanley Wealth Management, managers, MS&Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. Morgan Stanley Wealth Management, managers, MS & Co., and their affiliates receive compensation and fees in connection with these services. Morgan Stanley Wealth Management believes that the nature and range of clients to which such services are rendered is such that it would be inadvisable to exclude categorically all of these companies from an account. Morgan Stanley charges each fund family we offer a mutual fund support fee, also called a "revenue -sharing payment," on client account holdings in fund families according to a tiered rate that increases along with the management fee of the fund so that lower management fee funds pay lower rates than those with higher management fees. ConsiderYour Own Investment Needs: The model portfolios and strategies discussed in the material are formulated based on general client characteristics including risk tolerance. This material is not intended to be an analysis of whether particular investments or strategies are appropriate for you or a recommendation, or an offerto participate in any investment. Therefore, clients should not use this material as the sole basis for investment decisions. They should consider all relevant information, including their existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. Such a determination may lead to asset allocation results that are materially different from the asset allocation shown in this profile. Talk to your Financial Advisor about what would be an appropriate asset allocation for you, whether Morgan Stanley Pathway Funds is an appropriate program for you. No obligation to notify— Morgan Stanley Wealth Management has no obligation to notify you when the model portfolios, strategies, or any other information, in this material changes. For index, indicator and survey definitions referenced in this report please visit the following: https://www.moraanstaniev.com/wealth-investmentsolutions/wmir-definitions The Morgan Stanley Pathway Funds, Firm Discretionary UMA Model Portfolios, and other asset allocation or any other model portfolios discussed in this material are available only to investors participating in Morgan Stanley Consulting Group advisory programs. For additional information on the Morgan Stanley Consulting Group advisory programs, see the applicable ADV brochure, available at www.moraanstanlev.com/ADV orfrom your Morgan Stanley Financial Advisor or Private Wealth Advisor. To learn more about the Morgan Stanley Pathway Funds, visit the Funds' website at https://www.moraanstanlev.com/wealth-investmentsolutions/cacm. Consulting Group is a business of Morgan Stanley. Morgan Stanley Pathway Program Asset Allocation Models There are model portfolios corresponding to five risk -tolerance levels available in the Pathway program. Model 1 is the least aggressive portfolio and consists mostly of bonds. As the model numbers increase, the models have higher allocations to equities and become more aggressive. Pathway is a mutual fund asset allocation program. In constructing the Pathway Program Model Portfolios, Morgan Stanley Wealth Management uses, among otherthings, model asset allocations produced by Morgan Wealth Management's Global Investment Committee (the "GIC"). The Pathway Program Model Portfolios are specific to the Pathway program (based on program features and parameters, and any other requirements of Morgan Stanley Wealth Management's Consulting Group). The Pathway Program Model Portfolios may therefore differ in some respects from model portfolios available in other Morgan Stanley Wealth Management programs orfrom asset allocation models published by the Global Investment Committee. The type of mutual funds and ETFs discussed in this presentation utilizes nontraditional or complex investment strategies and/or derivatives. Examples of these types of funds include those that utilize one or more of the below noted investment strategies or categories or which seek exposure to the following markets: (i) commodities (e.g., agricultural, energy and metals), currency, precious metals; (2) managed futures; (3) leveraged, inverse or inverse leveraged; (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 exchanqe . On the Graystone DISCLOSURES Consulting, Page 10 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley other hand, mutual funds typically must meet daily client redemptions. This differing liquidity profile can have a material impact on the investment returns generated by a mutual fund or ETF pursuing an alternative investing strategy compared with a traditional hedge fund pursuing the same strategy. Nontraditional investment options and strategies are often employed by a portfolio manager to further a fund's investment objective and to help offset market risks. However, these features may be complex, making it more difficult to understand the fund's essential characteristics and risks, and how it will perform in different market environments and over various periods of time. They may also expose the fund to increased volatility and unanticipated risks particularly when used in complex combinations and/or accompanied by the use of borrowing or "leverage." Please consider the investment objectives, risks, fees, and charges and expenses of mutual funds, ETFs, closed end funds, unit investment trusts, and variable insurance products carefully before investing. The prospectus contains this and other information about each fund. To obtain a prospectus, contact your Financial Advisor or Private Wealth Advisor or visit the Morgan Stanley website at www.moraanstaniev.com. Please read it carefully before investing. Money Market Funds: You could lose money in money market funds. Although money market funds classified as government funds (i.e., money market funds that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., money market funds open to natural person investors only) seek to preserve value at $s.00 per share, they cannot guarantee they will do so. The price of other money market funds will fluctuate and when you sell shares they may be worth more or less than originally paid. Money market funds may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A money market fund investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. Investors should carefully consider the investment objectives, risks, charges and expenses of a money market fund before investing. The prospectus contains this and other information about the money market fund. To obtain a prospectus, contact your Financial Advisor or visit the money market fund company's website. Please read the prospectus carefully before investing. Exchange Funds are private placement vehicles that enable holders of concentrated single -stock positions to exchange those stocks for a diversified portfolio. Investors may benefit from greater diversification by exchanging a concentrated stock position for fund shares without triggering a taxable event. These funds are available only to qualified investors and may only be offered by Financial Advisors who are qualified to sell alternative investments. Before investing, investors should considerthe following: Dividends are pooled Investors may forfeit their stock voting rights Investment may be illiquid for several years Investments may be leveraged or contain derivatives Significant early redemption fees may apply Changes to the U.S. tax code, which could be retroactive (potentially disallowing the favorable tax treatment of exchange funds) Investment risk and potential loss of principal KEY ASSET CLASS CONSIDERATIONS AND OTHER RISKS Investing in the markets entails the risk of market volatility. The value of all types of investments, including stocks, mutual funds, exchange -traded funds ("ETFs"), closed -end funds, and unit investment trusts, may increase or decrease over varying time periods. To the extent the investments depicted herein represent international securities, you should be aware that there may be additional risks associated with international investing, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting standards. These risks may be magnified in emerging markets and frontier markets. Some funds also invest in foreign securities, which may involve currency risk. There is no assurance that the fund will achieve its investment objective. Small- and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. In addition, the securities of small- and mid -capitalization companies may not trade as readily as, and be subject to higher volatility than, those of larger, more established companies. The value of fixed income securities will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and credit risk of the issuer. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because ofthe lower credit quality ofthe issues. In the case of municipal bonds, income is generally exempt from federal income taxes. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax. Treasury Inflation Protection Securities' (TIPS) coupon payments and underlying principal are automatically increased to compensate for inflation by tracking the consumer price index (CPI). While the real rate of return is guaranteed, TIPS tend to offer a low return. Because the return of TIPS is linked to inflation, TIPS may significantly underperform versus conventional U.S. Graystone DISCLOSURES Consulting, Page 11 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Treasuries in times of low inflation. There is no guarantee that investors will receive par if TIPS are sold prior to maturity. The returns on a portfolio consisting primarily of environmental, social, and governance -aware investments ("ESG") maybe lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. The companies identified and investment examples are for illustrative purposes only and should not be deemed a recommendation to purchase, hold or sell any securities or investment products. They are intended to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a client's account will be managed as described herein. Options and margin trading involve substantial risk and are not appropriate for all investors. Besides the general investment risk of holding securities that may decline in value and the possible loss of principal invested, closed -end funds may have additional risks related to declining market prices relative to net asset values (NAVs), active manager underperformance and potential leverage. Closed -end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed -end funds are sold in the open market through a stock exchange. Shares of closed -end funds frequently trade at a discount from their NAV which may increase investors' risk of loss. The risk of loss due to this discount may be greater for investors expecting to sell their shares in a relatively short period after completion of the public offering. This characteristic is a risk separate and distinct from the risk that a closed -end fund's net asset value may decrease as a result of investment activities. NAV is total assets less total liabilities divided by the number of shares outstanding. At the time an investor purchases or sells shares of a closed -end fund, shares may have a market price that is above or below NAV. Portfolios that invest a large percentage of assets in only one industry sector (or in only a few sectors) are more vulnerable to price fluctuation than those that diversify among a broad range of sectors. Structured Investments are complex and not appropriate for all investors. An investment in Structures Investments involve risks. These risks can include but are not limited to: (i) Fluctuations in the price, level or yield of underlying instruments, interest rates, currency values and credit quality, (2) Substantial or total loss of principal, (3) Limits on participation in appreciation of underlying instrument, (4) Limited liquidity, (5) Issuer credit risk and (6) Conflicts of Interest. There is no assurance that a strategy of using structured product for wealth preservation, yield enhancement, and/or interest rate risk hedging will meet its objectives. Alternative investments may be either traditional alternative investment vehicles, such as hedge funds, fund of hedge funds, private equity, private real estate and managed futures or, non-traditional products such as mutual funds and exchange -traded funds that also seek alternative -like exposure but have significant differences from traditional alternative investments. Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to: Loss of all or a substantial portion of the investment due to leveraging, short -selling, or other speculative practices; Lack of liquidity in that there may be no secondary market for a fund; Volatility of returns; Restrictions on transferring interests in a fund; Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized, Absence of information regarding valuations and pricing, Complex tax structures and delays in tax reporting, Less regulation and higherfees than mutual funds; and Risks associated with the operations, personnel, and processes of the manager. Further, opinions regarding Alternative Investments expressed herein may differfrom the opinions expressed by Morgan Stanley Wealth Management and/or other businesses/affiliates of Morgan Stanley Wealth Management. Certain information contained herein may constitute forward -looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward -looking statements. Clients should carefully considerthe investment objectives, risks, charges, and expenses of a fund before investing. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley Wealth Management does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (i) are not FDIC -insured, (z) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker -dealer, not a bank. A majority of Alternative Investment managers reviewed and selected by GIMA pay or cause to be paid an ongoing fee for distribution from their management fees to Morgan Stanley Wealth Management in connection with Morgan Stanley Wealth Management clients that purchase an interest in an Alternative Investment and in some instances pay these fees on the investments held by advisory clients. Morgan Stanley Wealth Management rebates such fees that are received and attributable to an Investment held by an advisory client and retains the fees paid in connection with investments held by brokerage clients. Morgan Stanley Wealth Management has a conflict of interest in offering alternative investments because Morgan Stanley Wealth Management or our affiliates, in most instances, earn more money in your account from your investments in alternative investments than from other investment options. DISCLOSURES Page 12 Graystone Consulting, from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and offer complete transparency as to membership and construction methodology. As such, some believe that hedge fund index returns have certain biases that are not present in traditional indexes. Some of these biases inflate index performance, while others may skew performance negatively. However, many studies indicate that overall hedge fund index performance has been biased to the upside. Some studies suggest performance has been inflated by up to 26o basis points or more annually depending on the types of biases included and the time period studied. Although there are numerous potential biases that could affect hedge fund returns, we identify some of the more common ones throughout this paper. Self-selection bias results when certain manager returns are not included in the index returns and may result in performance being skewed up or down . Because hedge funds are private placements, hedge fund managers are able to decide which fund returns they want to report and are able to opt out of reporting to the various databases. Certain hedge fund managers may choose only to report returns for funds with strong returns and opt out of reporting returns for weak performers. Other hedge funds that close may decide to stop reporting in order to retain secrecy, which may cause a downward bias in returns. Survivorship bias results when certain constituents are removed from an index. This often results from the closure of funds due to poor performance, "blow ups," or other such events. As such, this bias typically results in performance being skewed higher. As noted, hedge fund index performance biases can result in positive or negative skew. However, it would appear that the skew is more often positive. While it is difficult to quantify the effects precisely, investors should be aware that idiosyncratic factors may be giving hedge fund index returns an artificial "lift" or upwards bias. Hedge Funds of Funds and many funds of funds are private investment vehicles restricted to certain qualified private and institutional investors. They are often speculative and include a high degree of risk. Investors can lose all or a substantial amount of their investment. They may be highly illiquid, can engage in leverage and other speculative practices that may increase volatility and the risk of loss, and may be subject to large investment minimums and initial lockups. They involve complex tax structures, tax -inefficient investing and delays in distributing important tax information. Categorically, hedge funds and funds of funds have higher fees and expenses than traditional investments, and such fees and expenses can lower the returns achieved by investors. Funds of funds have an additional layer of fees over and above hedge fund fees that will offset returns. An investment in an exchange -traded fund involves risks similar to those of investing in a broadly based portfolio of equity securities traded on an exchange in the relevant securities market, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock and bond prices. An investment in a target date portfolio is subject to the risks attendant to the underlying funds in which it invests, in these portfolios the funds are the Consulting Group Capital Market funds. A target date portfolio is geared to investors who will retire and/or require income at an approximate year. The portfolio is managed to meet the investor's goals by the pre -established year or "target date." A target date portfolio will transition its invested assets from a more aggressive portfolio to a more conservative portfolio as the target date draws closer. An investment in the target date portfolio is not guaranteed at any time, including, before or afterthe target date is reached. Managed futures investments are speculative, involve a high degree of risk, use significant leverage, are generally illiquid, have substantial charges, subject investors to conflicts of interest, and are appropriate only forthe risk capital portion of an investor's portfolio. Managed futures investments do not replace equities or bonds but rather may act as a complement in a well diversified portfolio. Managed Futures are complex and not appropriate for all investors. Virtual Currencv Products (Crvptocurrencies) Buying, selling, and transacting in Bitcoin, Ethereum or other digital assets ("Digital Assets"), and related funds and products, is highly speculative and may result in a loss ofthe entire investment. Risks and considerations include but are not limited to: - Digital Assets have only been in existence for a short period of time and historical trading prices for Digital Assets have been highly volatile. The price of Digital Assets could decline rapidly, and investors could lose their entire investment. - Certain Digital Asset funds and products, allow investors to invest on a more frequent basis than investors may withdraw from the fund or product, and interests in such funds or products are generally not freely transferrable. This means that, particularly given the volatility of Digital Assets, an investor will have to bear any losses with respect to its investment for an extended period oftime and will not be able to react to changes in the price of the Digital Asset once invested (for example, by seeking to withdraw) as quickly as when making the decision to invest. Such Digital Asset funds and products, are intended only for persons who are able to bear the economic risk of investment and who do not need liquidity with respect to their investments. - Given the volatility in the price of Digital Assets, the net asset value of a fund or product that invests in such assets at the time an investor's subscription for interests in the fund or product is accepted may be significantly below or above the net asset value of the product or fund at the time the investor submitted subscription materials. DISCLOSURES Page 13 Graystone Consulting, from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley - Certain Digital Assets are not intended to function as currencies but are intended to have other use cases. These other Digital Assets may be subject to some or all of the risks and considerations set forth herein, as well as additional risks applicable to such Digital Assets. Buyers, sellers and users of such Digital Assets should thoroughly familiarize themselves with such risks and considerations before transacting in such Digital Assets. - The value of Digital Assets may be negatively impacted by future legal and regulatory developments, including but not limited to increased regulation of such Digital Assets. Any such developments may make such Digital Assets less valuable, impose additional burdens and expenses on a fund or product investing in such assets or impact the ability of such a fund or product to continue to operate, which may materially decrease the value of an investment therein. - Due to the new and evolving nature of digital currencies and the absence of comprehensive guidance, many significant aspects of the tax treatment of Digital Assets are uncertain. Prospective investors should consult their own tax advisors concerning the tax consequences to them of the purchase, ownership and disposition of Digital Assets, directly or indirectly through a fund or product, under U.S. federal income tax law, as well as the tax law of any relevant state, local or other jurisdiction. - Over the past several years, certain Digital Asset exchanges have experienced failures or interruptions in service due to fraud, security breaches, operational problems or business failure. Such events in the future could impact any fund's or product's ability to transact in Digital Assets if the fund or product relies on an impacted exchange and may also materially decrease the price of Digital Assets, thereby impacting the value of your investment, regardless of whether the fund or product relies on such an impacted exchange. - Although any Digital Asset product and its service providers have in place significant safeguards against loss, theft, destruction and inaccessibility, there is nonetheless a risk that some or all of a product's Digital Asset could be permanently lost, stolen, destroyed or inaccessible by virtue of, among other things, the loss or theft of the "private keys" necessary to access a product's Digital Asset. - Investors in funds or products investing ortransacting in Digital Assets may not benefit to the same extent (or at all) from "airdrops" with respect to, or "forks" in, a Digital Asset's blockchain, compared to investors who hold Digital Assets directly instead of through a fund or product. Additionally, a "fork" in the Digital Asset blockchain could materially decrease the price of such Digital Asset. - Digital Assets are not legal tender, and are not backed by any government, corporation or other identified body, other than with respect to certain digital currencies that certain governments are or may be developing now or in the future. No law requires companies or individuals to accept digital currency as a form of payment (except, potentially, with respect to digital currencies developed by certain governments where such acceptance may be mandated). Instead, other than as described in the preceding sentences, Digital Asset products' use is limited to businesses and individuals that are willing to accept them. If no one were to accept digital currencies, virtual currency products would very likely become worthless. - Platforms that buy and sell Digital Assets can be hacked, and some have failed. In addition, like the platforms themselves, digital wallets can be hacked, and are subject to theft and fraud. As a result, like other investors have, you can lose some or all of your holdings of Digital Assets. - Unlike US banks and credit unions that provide certain guarantees of safety to depositors, there are no such safeguards provided to Digital Assets held in digital wallets by their providers or by regulators. - Due to the anonymity Digital Assets offer, they have known use in illegal activity, including drug dealing, money laundering, human tracking, sanction evasion and other forms of illegal commerce. Abuses could impact legitimate consumers and speculators; for instance, law enforcement agencies could shut down or restrict the use of platforms and exchanges, limiting or shutting of entirely the ability to use or trade Digital Asset products. - Digital Assets may not have an established track record of credibility and trust. Further, any performance data relating to Digital Asset products may not be verifiable as pricing models are not uniform. - Investors should be aware of the potentially increased risks of transacting in Digital Assets relating to the risks and considerations, including fraud, theft, and lack of legitimacy, and other aspects and qualities of Digital Assets, before transacting in such assets. - The exchange rate of virtual currency products versus the USD historically has been very volatile and the exchange rate could drastically decline. For example, the exchange rate of certain Diqital Graystone DISCLOSURES Consulting, Page 14 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley Assets versus the USD has in the past dropped more than So% in a single day. Other Digital Assets may be affected by such volatility as well. - Digital Asset exchanges have limited operating and performance histories and are not regulated with the same controls or customer protections available to more traditional exchanges transacting equity, debt, and other assets and securities. There is no assurance that a person/exchange who currently accepts a Digital Asset as payment will continue to do so in the future. - The regulatory framework of Digital Assets is evolving, and in some cases is uncertain, and Digital Assets themselves may not be governed and protected by applicable securities regulators and securities laws, including, but not limited to, Securities Investor Protection Corporation coverage, or other regulatory regimes. - Morgan Stanley Smith Barney LLC or its affiliates (collectively, "Morgan Stanley") may currently, or in the future, offer or invest in Digital Asset products, services or platforms. The proprietary interests of Morgan Stanley may conflict with your interests. - The foregoing list of considerations and risks are not and do not purport to be a complete enumeration or explanation of the risks involved in an investment in any product or fund investing or trading in Digital Assets. Asset allocation and diversification do not assure a profit or protect against loss in declining financial markets. Past performance is no guarantee offuture results. Actual results may vary. Rebalancing does not protect against a loss in declining financial markets. There may be a potential tax implication with a rebalancing strategy. Investors should consult with their tax advisor before implementing such a strategy. Indices are unmanaged and investors cannot directly invest in them. They are not subject to expenses or fees and are often comprised of securities and other investment instruments the liquidity of which is not restricted. A particular investment product may consist of securities significantly different than those in any index referred to herein . Composite index results are shown for illustrative purposes only, generally do not represent the performance of a specific investment, may not, for a variety of reasons, be an appropriate comparison or benchmark for a particular investment and may not necessarily reflect the actual investment strategy or objective of a particular investment. Consequently, comparing an investment to a particular index may be of limited use. To obtain Tax -Management Services, a client must complete the Tax -Management Form, and deliver the signed form to Morgan Stanley. Form ore information on Tax -Management Services, including its features and limitations, please ask your Financial Advisor for the Tax Management Form. Review the form carefully with your tax advisor. Tax -Management Services: (a) apply only to equity investments in separate account sleeves of client accounts; (b) are not available for all accounts or clients; and (c) may adversely impact account performance. Tax -management services do not constitute tax advice or a complete tax -sensitive investment management program. There is no guarantee that tax -management services will produce the desired tax results. When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, "Morgan Stanley") provide "investment advice" regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account ("Retirement Account"), Morgan Stanley is a "fiduciary" as those terms are defined under the Employee Retirement Income Security Act of 3.974, as amended ("ERISA"), and/or the Internal Revenue Code of 1986 (the "Code"), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide "investment advice", Morgan Stanley will not be considered a "fiduciary" under ERISA and/or the Code. For more information regarding Morgan Stanley's role with respect to a Retirement Account, please visit www.moraanstaniev.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters. Lifestyle Advisory Services: Products and services are provided by third party service providers, not Morgan Stanley Smith Barney LLC ("Morgan Stanley"). Morgan Stanley may not receive a referral fee or have any input concerning such products or services. There may be additional service providers for comparative purposes. Please perform a thorough due diligence and make your own independent decision. This material is not a financial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not yourfiduciary either underthe Graystone DISCLOSURES Consulting, Page 15 from Morganstantey WEALTH MANAGEMENT Morgan Stanley Employee Retirement Income SecurityAct of 1974 (ERISA) or the Internal Revenue Code of i986, and any information in this report is not intended to be considered investment advice or a recommendation for either ERISA or Internal Revenue Code purposes and that (unless otherwise provided in a written agreement and/or as described at www.moraanstanlev.com/disclosures/dol) you remain solely responsible for your assets and all investment decisions with respect to your assets. Nevertheless, if Morgan Stanley or your Financial Advisor provides "investment advice," as that term is defined under Section 3(21) of ERISA, to you with respect to certain retirement, welfare benefit, or education savings account assets for a fee or other compensation, Morgan Stanley and/or your Financial Advisor will be providing such advice in its capacity as a fiduciary under ERISA and/orthe Code. Morgan Stanley will only prepare a financial plan at your specific request using Morgan Stanley approved financial planning software. A LifeView Financial Goal Analysis ("Financial Goal Analysis") or LifeView Financial Plan ("Financial Plan") is based on the methodology, estimates, and assumptions, as described in your report, as well as personal data provided by you. It should be considered a working document that can assist you with your objectives. Morgan Stanley makes no guarantees as to future results or that an individual's investment objectives will be achieved. The responsibility for implementing, monitoring and adjusting your Financial Goal Analysis or Financial Plan rests with you. After your Financial Advisor delivers your report to you, if you so desire, your Financial Advisor can help you implement any part that you choose; however, you are not obligated to work with your Financial Advisor or Morgan Stanley. Important information about your relationship with your Financial Advisor and Morgan Stanley Smith Barney LLC when using LifeView Goal Analysis or LifeView Advisor. When your Financial Advisor prepares and delivers a Financial Goal Analysis (i.e., when using LifeView Goal Analysis), they will be acting in a brokerage capacity. When your Financial Advisor prepares a Financial Plan (i.e., when using LifeView Advisor), they will be acting in an investment advisory capacity with respect to the delivery of your Financial Plan. This Investment Advisory relationship will begin with the delivery of the Financial Plan and ends thirty days later, during which time your Financial Advisor can review the Financial Plan with you. To understand the differences between brokerage and advisory relationships, you should consult your Financial Advisor, or review our "Understanding Your Brokerage and Investment Advisory Relationships," brochure available at httos://www.moraanstanlev.com/wealth-relationshir)withms/Ddfs/understandinavourrelationshiD.Ddf We may act in the capacity of a broker orthat 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 Financial Advisor or Private Wealth Advisorto 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 Financial Advisor or Private Wealth Advisor, may vary by product and overtime. Investment and services offered through Morgan Stanley Smith Barney LLC, Member SIPC. GLOBAL INVESTMENT COMMITTEE (GIC) ASSETALLOCATION MODELS: The Asset Allocation Models are created by Morgan Stanley Wealth Management's GIC HYPOTHETICAL MODEL PERFORMANCE (GROSS): Hypothetical model performance results do not reflect the investment or performance of an actual portfolio following a GIC Strategy, but simply reflect actual historical performance of selected indices on a real-time basis over the specified period of time representing the GIC's strategic and tactical allocations as of the date of this report. The past performance shown here is simulated performance based on benchmark indices, not investment results from an actual portfolio or actual trading. There can be large differences between hypothetical and actual performance results achieved by a particular asset allocation or trading strategy. Hypothetical performance results do not represent actual trading and are generally designed with the benefit of hindsight. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client -specific factors (such as investment vehicle selection, timing of contributions and withdrawals, restrictions and rebalancing schedules). Clients would not necessarily have obtained the performance results shown here if they had invested in accordance with any GIC Asset Allocation Model forthe 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 forthe asset classes, and not the returns of securities, fund or other investment products. Models may contain allocations to Hedge Funds, Private Equity and Private Real Estate. The benchmark indices for these asset classes are not issued on a daily basis. When calculating model performance on a day for which no benchmark index data is issued, we have assumed straight line growth between the index levels issued before and after that date. FEES REDUCE THE PERFORMANCE OF ACTUAL ACCOUNTS: None of the fees or other expenses (e.g. commissions, mark-ups, mark-downs, fees) associated with actual trading or accounts are reflected in the GIC Asset Allocation Models. The GIC Asset Allocation Models and any model performance included in this presentation are intended as educational materials. Were a client to use these models in connection with investing, any investment decisions made would be subject to transaction and other costs which, when compounded over a period of years, would decrease returns. Information regarding Morgan Stanley's standard advisory fees is available in the Form ADV Part z, 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 1S%for S years and the account pays So basis points in fees per annum, the gross cumulative five-year return would be ioi.i% and the five-year return net of fees would be 96.8%. Fees and/or expenses would apply to clients who invest in investments in an account based on these asset Graystone DISCLOSURES Consulting, Page 16 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley allocations, and would reduce clients' returns. The impact of fees and/or expenses can be material. Variable annuities are long-term investments designed for retirement purposes and may be subject to market fluctuations, investment risk, and possible loss of principal. All guarantees, including optional benefits, are based on the financial strength and claims -paying ability of the issuing insurance company and do not apply to the underlying investment options. Optional riders may not be able to be purchased in combination and are available at an additional cost. Some optional riders must be elected at time of purchase. Optional riders may be subject to specific limitations, restrictions, holding periods, costs, and expenses as specified by the insurance company in the annuity contract. If you are investing in a variable annuity through a tax -advantaged retirement plan such as an IRA, you will get no additional tax advantage from the variable annuity. Under these circumstances, you should only consider buying a variable annuity because of its other features, such as lifetime income payments and death benefits protection. Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and, if taken prior to age 591/z, may be subject to a io%federal income tax penalty. Early withdrawals will reduce the death benefit and cash surrender value. Equity securities may fluctuate in response to news on companies, industries, market conditions and general economic environment. Ultrashort-term fixed income asset class is comprised of fixed income securities with high quality, very short maturities. They are therefore subject to the risks associated with debt securities such as credit and interest rate risk. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Individual MLPs are publicly traded partnerships that have unique risks related to their structure. These include, but are not limited to, their reliance on the capital markets to fund growth, adverse ruling on the current tax treatment of distributions (typically mostly tax deferred), and commodity volume risk. The potential tax benefits from investing in MLPs depend on their being treated as partnerships for federal income tax purposes and, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax -deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV, and, as a result, the MLP fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to, (i) changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. Physical precious metals are non -regulated products. Precious metals are speculative investments, which may experience short-term and long term price volatility. The value of precious metals investments may fluctuate and may appreciate or decline, depending on market conditions. Unlike bonds and stocks, precious metals do not make interest or dividend payments. Therefore, precious metals may not be appropriate for investors who require current income. Precious metals are commodities that should be safely stored, which may impose additional costs on the investor. REITs investing risks are similar to those associated with direct investments in real estate: property value fluctuations, lack of liquidity, limited diversification and sensitivity to economic factors such as interest rate changes and market recessions. Risks of private real estate include: illiquidity; a long-term investment horizon with a limited or nonexistent secondary market, lack of transparency; volatility (risk of loss); and leverage. Principal is returned on a monthly basis over the life of a mortgage -backed security. Principal prepayment can significantly affect the monthly income stream and the maturity of any type of MBS, including standard MBS, CMOs and Lottery Bonds. Asset -backed securities generally decrease in value as a result of interest rate increases, but may benefit less than other fixed -income securities from declining interest rates, principally because of prepayments. Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an investment decision. Credit ratings are subject to change. Duration, the most commonly used measure of bond risk, quantifies the effect of changes in interest rates on the price of a bond or bond portfolio. The longer the duration, the more sensitive the bond or portfolio would be to changes in interest rates. The majority of $25 and $i000 par preferred securities are "callable" meaning that the issuer may retire the securities at specific prices and dates prior to maturity. Interest/dividend payments on certain preferred issues may be deferred by the issuer for periods of up to 5 to io years, depending on the particular issue. The investor would still have income tax liability even though payments would not have been received. Price quoted is per $25 or $i,000 share, unless otherwise specified. Current yield is calculated by multiplying the coupon by par value divided by the market price. The initial interest rate on a floating-rate security may be lower than that of a fixed-rate security of the same maturity because investors expect to receive additional income due to future increases in the floating security's underlying reference rate. The reference rate could be an index or an interest rate. However, there can be no assurance that the reference rate will increase. Some floating-rate securities may be subject to call risk. The market value of convertible bonds and the underlying common stock(s) will fluctuate and after purchase may be worth more Graystone DISCLOSURES Consulting, Page 17 from Morgan Stanley WEALTH MANAGEMENT Morgan Stanley or less than original cost. If sold prior to maturity, investors may receive more or less than their original purchase price or maturity value, depending on market conditions. Callable bonds maybe redeemed by the issuer prior to maturity. Additional call features may exist that could affect yield. Some $25 or si000 par preferred securities are QDI (Qualified Dividend Income) eligible. Information on QDI eligibility is obtained from third party sources. The dividend income on QDI eligible preferreds qualifies for a reduced tax rate. Many traditional `dividend paying' perpetual preferred securities (traditional preferreds with no maturity date) are QDI eligible. In order to qualify for the preferential tax treatment all qualifying preferred securities must be held by investors for a minimum period — 91 days during a 18o day window period, beginning go days before the ex -dividend date. Companies paying dividends can reduce or cut payouts at any time. Nondiversification: For a portfolio that holds a concentrated or limited number of securities, a decline in the value of these investments would cause the portfolio's overall value to decline to a greater degree than a less concentrated portfolio. The indices selected by Morgan Stanley Wealth Management to measure performance are representative of broad asset classes. Morgan Stanley Wealth Management retains the right to change representative indices at any time. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing does not guarantee a profit or eliminate risk. Not all companies whose stocks are considered to be value stocks are able to turn their business around or successfully employ corrective strategies which would result in stock prices that do not rise as initially expected . Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, the investor should consider his financial ability to continue his purchases through periods of low price levels. This material is disseminated in the United States of America by Morgan Stanley Smith Barney LLC. Morgan Stanley Wealth Management is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section i5B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of the Municipal Advisor Rule. This material, or any portion thereof, may not be reprinted, sold or redistributed without the written consent of Morgan Stanley Smith Barney LLC. © 2023 Morgan Stanley Smith Barney LLC. Member SIPC. DISCLOSURES Page 18 Graystone Consulting, from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2022 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 10 Since Inception n /o Value To YTD YTD Year Years Years Years Years Inception Date ($000) Date Total Fund Total Fund (net) I 100.00 I 6.07 (43) I: -14.60 (69) I 6.07 (43) I: -14.60 (69) 1 3.74 (48) 4.49 (69) 6.12 (77) 6.52 (70) 02/01/2011 6.02 (86) Policy Index 1 6.60 (28) -14.75 (72) 6.60 (28) -14.75 (72) 3.56 (51) 5.14 (45) 6.78 (50) 7.33 (34) 7.23 (27) All Public Plans < $1B-Total Fund Median 5.78 -13.39 5.78 -13.39 3.57 5.03 6.78 7.04 6.83 All Public Plans -Total Fund Median 5.66 -12.87 5.66 -12.87 3.94 5.16 6.91 7.13 6.93 Domestic Equity Highland - Large Cap Value 3,962 20.40 12.19 (60) -7.39 (69) 12.19 (60) -7.39 (69) 5.64 (89) 6.54 (82) N/A N/A 7.67 (82) 08/O1/2017 Highland - Large Cap Value (net) 12.06 (62) -7.84 (70) 12.06 (62) -7.84 (70) 5.13 (93) 5.95 (89) N/A N/A 7.12 (89) Russell 1000 Value 12.42 (56) -7.54 (70) 12.42 (56) -7.54 (70) 5.96 (86) 6.67 (81) N/A N/A 7.50 (84) IM U.S. Large Cap Value Equity (SA+CF) Median 12.75 -5.44 12.75 -5.44 8.06 8.11 N/A N/A 9.22 Polen - Large Cap Growth ' 1,240 6.39 -0.18 (90) -37.51 (91) -0.18 (90) -37.51 (91) N/A N/A N/A N/A -14.10 (86) 04/01/2021 Polen - Large Cap Growth (net) -0.34 (90) -37.93 (92) -0.34 (90) -37.93 (92) N/A N/A N/A N/A -14.60 (87) Russell 1000 Gr 2.20 (73) -29.14 (49) 2.20 (73) -29.14 (49) N/A N/A N/A N/A -6.09 (40) IM U.S. Large Cap Growth Equity (SA+CF) Median 3.91 -29.57 3.91 -29.57 N/A N/A N/A N/A -7.84 iShares - Russell 1000 Growth ETF 1,432 7.37 2.36 (58) -29.17 (33) 2.36 (58) -29.17 (33) = N/A N� N/A -4.74 (25) 01/01/2021 iShares - Russell 1000 Growth ETF (net) 2.36 (58) -29.17 (33) 2.36 (58) -29.17 (33) N/A N/A N/A N/A -4.74 (25) Russell 1000 Gr 2.20 (61) -29.14 (33) 2.20 (61) -29.14 (33) N/A N/A N/A N/A -4.92 (28) IM U.S. Large Cap Growth Equity (MF) Median 2.74 -30.71 2.74 -30.71 N/A N/A N/A N/A -7.30 Boston Partners - SMID Value 2,469 12.71 9.93 (66) -9.17 (41) 9.93 (66) -9.17 (41) 6.90 (52) 5.78 (64) N/A N/A 6.71 (59) 08/O1/2017 Boston Partners - SMID Value (net) 9.69 (69) -9.98 (46) 9.69 (69) -9.98 (46) 5.91 (66) 4.72 (83) N/A N/A 5.69 (83) Russell 2500 VL 9.21 (75) -13.09 (66) 9.21 (75) -13.09 (66) 5.21 (74) 4.75 (82) N/A N/A 5.76 (83) IM U.S. SMID Cap Value Equity (SA+CF) Median 10.45 -10.53 10.45 -10.53 7.08 6.75 N/A N/A 7.86 Fiera Capital - SMID Growth _ 1,442 7.43 5.09 (48) -21.46 (14) 5.09 (48) -21.46 (14) 10.33 (22) 10.23 (47) N/A N/A 11.78 (37) 08/01/2017 Fiera Capital - SMID Growth (net) 4.91 (50) -22.05 (19) 4.91 (50) -22.05 (19) 9.50 (24) 9.40 (51) N/A N/A 10.98 (44) Russell 2500 GR 4.72 (56) -26.21 (34) 4.72 (56) -26.21 (34) 2.88 (84) 5.97 (86) N/A N/A 7.55 (84) IM U.S. SMID Cap Growth Equity (SA+CF) Median 4.90 -28.21 4.90 -28.21 6.41 9.49 N/A N/A 10.59 Highland - Intl Value IF 963 4.96 16.37 (65) -16.70 (82) 16.37 (65) -16.70 (82) -0.76 (85) 0.72 (71) N/A N/A 1.69 (73) 08/01/2017 Highland - Intl Value (net) 16.24 (67) -17.11 (85) 16.24 (67) -17.11 (85) -1.21 (89) 0.21 (78) N/A N/A 1.21 (79) MSCI EAFE Net 17.34 (55) -14.45 (74) 17.34 (55) -14.45 (74) 0.87 (62) 1.54 (57) N/A N/A 2.66 (58) MSCI EAFE VL Net 19.64 (25) -5.58 (17) 19.64 (25) -5.58 (17) 0.65 (65) 0.17 (78) N/A N/A 1.20 (79) IM International Large Cap Value Equity (SA+CF) Median 17.70 -8.99 17.70 -8.99 1.47 1.78 N/A N/A 2.91 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 19 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2022 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 10 Since Inception Value % To YTD YTD Year Years Years Years Years Inception Date ($000) Date Renaissance - International Growth ad=1,442 7.42 15.04 (28) -17.00 (20) 15.04 (28) -17.00 (20) -0.56 (81) -1.03 (100) N/A N/A -0.21 (100) 08/O1/2017 Renaissance - International Growth (net) 14.87 (33) -17.52 (26) 14.87 (33) -17.52 (26) -1.16 (86) -1.65 (100) N/A N/A -0.80 (100) MSCI AC World ex US Net 14.28 (44) -16.00 (15) 14.28 (44) -16.00 (15) 0.07 (80) 0.88 (86) N/A N/A 2.17 (90) IM International Large Cap Growth Equity (SA+CF) Median 13.91 -23.82 13.91 -23.82 1.87 3.15 N/A N/A 4.50 Highland -Fixed Income 3,427 17.65 0.75 (92) -10.29 (55) 0.75 (92) -10.29 (55) -0.92 (56) 1.08 (55) N/A N/A 1.16 (53) 08/O1/2017 Highland - Fixed Income (net) 0.68 (94) -10.56 (56) 0.68 (94) -10.56 (56) -1.22 (61) 0.70 (72) N/A N/A 0.82 (72) Barclays Aggregate 1.87 (54) -13.01 (75) 1.87 (54) -13.01 (75) -2.71 (89) 0.02 (90) N/A N/A 0.17 (94) IM U.S. Fixed Income (SA+CF) Median 1.99 -9.49 1.99 -9.49 -0.57 1.20 N/A N/A 1.21 Intercontinental - Private Real Estate 891 4.59 -6.01 8.33 -6.01 M11.09 10.84 N/A N/A 10.88 10/O1/2017 Intercontinental - Private Real Estate (net) -6.34 7.32 -6.34 7.32 9.07 8.99 N/A N/A 9.06 NCREIF Property Idx -3.50 5.51 -3.50 5.51 8.06 7.46 N/A N/A 7.46 Barclays Aggregate 1.87 -13.01 1.87 -13.01 -2.71 0.02 N/A N/A 0.10 Lazard -Global Infrastructure 1,151 5.93 9.67 (60) -1.30 (4) _ 9.67 (60) -1.30 (4) __Jjjk N/A N/A N/A 8.77 (2) 01/01/2021 Lazard - Global Infrastructure (net) 9.67 (60) -1.30 (4) 9.67 (60) -1.30 (4) N/A N/A N/A N/A 8.77 (2) DJ Brookfield Gbl Infra Comp TR 9.38 (72) -4.91 (24) 9.38 (72) -4.91 (24) N/A N/A N/A N/A 6.94 (3) IM Global Infrastructure (MF) Median 9.76 -6.73 9.76 -6.73 N/A N/A N/A N/A 4.76 Mlllm Receipt & Disbursement 1,000 5.15 0.35 0.46 0.35 0.46 0.25 0.75 N/A N/A 0.86 08/01/2017 90-Day T-Bills 0.87 1.50 0.87 1.50 0.71 1.24 N/A N/A 1.23 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 20 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2022 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund Domestic Equity 11 I. I r 01/31/2011 Highland - Large Cap Value 20.40 12.06 12.06 -7.99 5.71 6.30 N/A N/A 7.88 07/31/2017 Polen - Large Cap Growth 6.39 -0.34 -0.34 -37.94 N/A N/A N/A N/A -13.97 03/15/2021 iShares - Russell 1000 Growth ETF 7.37 2.36 2.36 -29.17 N/A N/A N/A N/A -4.72 12/31/2020 Boston Partners - SMID Value 12.71 9.70 9.70 -10.03 7.57 6.64 N/A N/A 7.13 07/31/2017 Fiera Capital - SMID Growth 11-mingtinnal 7.43 4.91 4.91 -22.00 7.32 7.99 N/A N/A 9.48 07/31/2017 Equity Highland - Intl Value 4.96 16.24 16.24 -17.10 -1.94 -0.38 N/A N/A 0.56 07/31/2017 Renaissance - International Growth 7.42 14.88 14.88 -17.48 -2.16 -2.19 N/A N/A -1.46 07/31/2017 IncomeFixed Highland -Fixed Income 17.65 0.70 0.70 -10.64 -1.67 0.32 N/A N/A 0.47 07/31/2017 w. Intercontinental - Private Real Estate 4.59 -6.33 -6.33 7.42 9.03 9.03 N/A N/A 9.06 10/15/2017 Lazard - Global Infrastructure 5.93 9.67 9.67 -1.30 N/A N/A N/A N/A 8.77 12/31/2020 Receipt & Disbursement 5.15 -2.80 -2.80 -9.17 -7.59 -6.60 N/A N/A -6.22 07/31/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone guarantee of future results. Consulting Page 21 from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Total Fund - Executive Summary as of December 31, 2022 Manager Performance Chart 20.0 10.0 0.0 ` ■ . ■ _ v 94 -10.0 -20.0 -30.0 Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 7 10 Inception Quarter YTD Year Years Years Years Years 02/01/2011 Total Fund 6.26 6.26 -14.08 4.40 5.21 6.81 7.17 6.65 Policy Index 1 6.60 6.60 -14.75 3.56 5.14 6.78 7.33 7.23 Differences -0.34 -0.34 0.67 0.84 0.07 0.03 -0.16 -0.58 Historic Asset Growth Current Fiscal 1 3 5 7 10 Inception Quarter YTD Year Years Years Years Years 02/01/2011 Total Fund Beginning Market Value 18,483 18,483 23,271 17,352 14,445 11,928 9,029 7,730 Net Contributions -186 -186 -476 138 1,298 1,241 1,935 2,667 Fees/Expenses -35 -35 -125 -371 -600 -741 -904 -982 Income 206 206 510 1,273 2,004 2,646 3,350 3,765 Gain/Loss 953 953 -3,761 1,028 2,273 4,346 6,010 6,240 Ending Market Value 19,420 19,420 19,420 19,420 19,420 19,420 19,420 19,420 Modern Portfolio Statistics Manager Risk & Return 10.11 8.0 6.0 4.0 2.0 0.0 -4.0 -2.0 0.0 Total Fund 1 1 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Risk (Standard Deviation %) Q Policy Index 1 . 90-Day T-Bills Standard Maximum Up Down Sharpe Inception Return Beta Deviation Drawdown Capture Alpha Capture Ratio R-Squared Date Total Fund 6.65 10.36 0.98 -19.15 99.04 103.96 -0.40 0.61 0.96 02/01/2011 Policy Index 1 7.23 10.37 1.00 -20.02 100.00 100.00 0.00 0.66 1.00 02/01/2011 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 22 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Total Fund - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $40.0 s~ 0 $30.0 2 s; $20.0 $20.5 $19.4 $10.0 $9.4 $0.0 1/11 10/11 7/12 4/13 1/14 10/14 7/15 4/16 1/17 10/17 7/18 4/19 1/20 10/20 7/21 4/22 12/22 — Total Fund Policy Index 1 — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Income Investment As of 10/01/2022 12/31/2022 Total Fund 18,482.91 - 4,005.40-4,191.71 -35.07 - 205.58 1,158.20 19,419.73 Distribution of Returns 45 30 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 23 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 12.0 20.0 10.0 10.0 9 0.0 ■ ■ 8.0 -10.0 0 0 6.0 -20.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 4.0 Manager Annualized Performance 2.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Highland - Large Cap Value 12.19 12.19 -7.39 5.64 6.54 7.67 0.0 Russell 1000 Value 12.42 12.42 -7.54 5.96 6.67 7.51 Differences -0.23 -0.23 0.15 -0.32 -0.13 0.16 Historic Asset Growth -2.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 3 5 Inception Risk (Standard Deviation %) Quarter YTD Year Years Years 08/01/2017 Highland - Large Cap Value Highland - Large Cap Value Q Russell 1000 Value Beginning Market Value 3,536 3,536 4,560 3,813 3,761 4,342 Net Contributions - - -245 -516 -959 -1,910 . 90-Day T-Bills Fees/Expenses -4 -4 -21 -58 -105 -105 Income 24 24 98 274 467 508 Gain/Loss 407 407 -431 448 798 1,126 Ending Market Value 3,962 3,962 3,962 3,962 3,962 3,962 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Value 7.67 18.56 1.02 -28.00 101.96 101.58 0.06 0.43 0.99 08/01/2017 Russell 1000 Value 7.51 18.04 1.00 -26.73 100.00 100.00 0.00 0.43 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 24 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland Large Cap Value - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $6.0 s~ 0 2 $4.0 s; v c� v $2.0 $0.0 7/17 1/18 7/18 1/19 7/19 1/20 7/20 1/21 — Highland - Large Cap Value Russell 1000 Value — Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions Fees 10/01/2022 Highland - Large Cap Value 3,535,643.00 - 418,713.04-418,996.67-4,416.40 Distribution of Returns 16 12 U L.' v 8 Zr 7 v w w 4 0 $4.$3.9 �2.3 7/21 1/22 7/22 12/22 Return On Market Value Expenses Investment As of 12/31/2022 - 430,884.20 3,961,827.17 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 25 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of December 31, 2022 Allocation Communication Services Consumer Discretionary Consumer Staples -� Energy - Financials - Health Care - Industrials - Information Technology - Materials -� Real Estate Utilities 0.0 6.0 12.0 18.0 24.0 Highland - Large Cap Value Russell 1000 Value Total Attribution Communication Services Consumer Discretionary - Consumer Staples - Energy Financials Health Care Industrials Information Technology - Materials Real Estate - Utilities Performance Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - 0 30.0 -20.0 -10.0 0.0 10.0 20.0 Highland - Large Cap Value Russell 1000 Value -1.5 -1.2 -0.9 -0.6 -0.3 0.0 0.3 0.6 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 26 30.0 40.0 0.9 1.2 1.5 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 8.34 8.04 -0.73 2.33 Consumer Discretionary 5.36 5.98 -0.18 12.99 Consumer Staples 6.96 7.24 17.01 14.75 Energy 9.44 7.81 21.26 22.79 Financials 20.40 19.96 13.74 13.22 Health Care 15.69 17.30 8.79 12.27 Industrials 10.71 10.03 24.87 18.47 Information Technology 7.97 8.75 7.44 6.01 Materials 4.23 4.11 19.34 18.13 Real Estate 4.64 4.81 9.88 3.74 Utilities 6.27 5.98 9.14 8.63 Total 100.00 100.00 12.41 12.39 Attribution Sector Stock Interaction Total -0.03 -0.25 -0.01 -0.28 0.00 -0.79 0.08 -0.71 -0.01 0.16 -0.01 0.15 0.17 -0.12 -0.02 0.03 0.00 0.10 0.00 0.11 0.00 -0.60 0.06 -0.54 0.04 0.64 0.04 0.73 0.05 0.13 -0.01 0.16 0.01 0.05 0.00 0.06 0.01 0.30 -0.01 0.30 -0.01 0.03 0.00 0.02 0.24 -0.35 0.12 0.02 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 27 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt. Cap ($000) 162,708,735.33 150,837,985.04 Weight Weight Weight Return Median Mkt. Cap ($000) 57,151,086.37 11,339,673.09 (%` (%) (%) (%` Price/Earnings ratio 12.98 15.11 Berkshire Hathaway Inc 2.73 3.04 -0.31 15.68 Price/Book ratio 2.34 2.44 JPMorgan Chase & Co 2.64 2.13 0.51 29.49 5 Yr. EPS Growth Rate (%) 12.91 12.88 Johnson & Johnson 2.53 2.53 0.00 8.83 Beta (5 Years, Monthly) 1.02 1.00 Elevance Health Inc 2.46 0.47 1.99 13.21 Number of Stocks 93 852 Exxon Mobil Corp 2.45 2.48 -0.03 27.35 Debt to Equity (%) 26.67 90.45 Procter & Gamble Co (The) 2.07 1.12 0.95 20.91 Alphabet Inc 2.02 0.34 1.68 -7.72 Bank of America Corp 1.99 1.27 0.72 10.33 Chevron Corp 1.90 1.89 0.01 25.90 Conocophillips 1.78 0.80 0.98 16.44 % of Portfolio 22.57 16.07 6.50 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) N N (%) N Boeing Co 1.20 0.39 0.81 57.33 PayPal Holdings Inc 0.99 0.31 0.68 -17.25 Caterpillar Inc 1.21 0.09 1.12 46.92 NRG Energy Inc 0.83 0.04 0.79 -16.20 Oracle Corp 1.12 0.21 0.91 34.53 Marvell Technology Inc 0.84 0.17 0.67 -13.57 American Intl Group Inc 1.21 0.26 0.95 33.87 Meta Platforms Inc 0.79 1.16 -0.37 -11.31 JPMorgan Chase & Co 2.64 2.13 0.51 29.49 Live Nation Entertainment Inc 0.78 0.03 0.75 -8.28 Honeywell International Inc 1.30 0.56 0.74 28.98 Walt Disney Co (The) 0.92 0.81 0.11 -7.90 AES Corp (The) 1.08 0.09 0.99 28.02 SALESFORCE INC 0.74 0.55 0.19 -7.82 Exxon Mobil Corp 2.45 2.48 -0.03 27.35 Alphabet Inc 2.02 0.34 1.68 -7.72 Chevron Corp 1.90 1.89 0.01 25.90 Hanesbrands Inc 0.35 0.01 0.34 -6.55 Eagle Materials Inc 1.18 0.00 1.18 24.18 V.F. Corp 0.87 0.05 0.82 -6.02 % of Portfolio 15.29 8.10 7.19 % of Portfolio 9.13 3.47 5.66 Graystone Page 28 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Executive Summary as of December 31, 2022 Manager Performance Chart 20.0 0.0 - -20.0 v _ -40.0 -60.0 Current Fiscal 1 Since Quarter YTD Year Inception Manager Annualized Performance Current Fiscal 1 Since Quarter YTD Year Inception Polen - Large Cap Growth -0.18 -0.18 -37.51 -14.10 Russell 1000 Gr 2.20 2.20 -29.14 -6.09 Differences -2.38 -2.38 -8.37 -8.01 Historic Asset Growth Current Fiscal 1 Since Quarter YTD Year Inception Polen - Large Cap Growth Beginning Market Value 1,245 1,245 2,000 1,677 Net Contributions - - -2 -47 Fees/Expenses -2 -2 -10 -17 Income 2 2 6 11 Gain/Loss -4 -4 -754 -384 Ending Market Value 1,240 1,240 1,240 1,240 Modern Portfolio Statistics Return Standard Beta Deviation Polen - Large Cap Growth -14.10 23.46 1.00 Russell 1000 Gr -6.10 22.89 1.00 Inception Date 04/01/2021 Manager Risk & Return 8.0 4.0 0.0 -4.0 0 -8.0 - -12.0 -16.0 -20.0 24 0 ■ -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Inception Risk (Standard Deviation %) Date 04/01/2021 Polen - Large Cap Growth O Russell 1000 Gr . 90-Day T-Bills Maximum Up Down Alpha Sharpe R-Squared Inception Drawdown Capture Capture Ratio Date -38.14 83.94 109.18 -8.32 -0.56 0.96 04/01/2021 -30.66 100.00 100.00 0.00 -0.20 1.00 04/01/2021 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 29 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $2.5 s~ 0 $2.0 $1.5 $1.0 $0.5 3/21 6/21 — Polen - Large Cap Growth Quarterly Change in Assets Market Value As of 10/01/2022 Polen - Large Cap Growth 1,244,762.88 Distribution of Returns 12 9 8 U L.' v 0 6 a� v « w 9/21 12/21 Russell 1000 Gr — Net Cash Flow 3/22 6/22 9/22 Net Contributions Distributions Fees Transfers 113,736.91-114,097.07-2,038.65 Expenses Return On Investment -2,183.65 $1.6 $1.5 �- $1.2 12/22 Market Value As of 12/31/2022 1,240,180.42 5 2 0 1 1 1 1 1 1 0 0 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page so Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation Communication Services Consumer Discretionary Consumer Staples -� Energy - Financials -� Health Care -� Industrials -� Information Technology Materials Real Estate Utilities 0.0 15.0 30.0 45.0 Polen - Large Cap Growth Russell 1000 Gr Total Attribution Communication Services Consumer Discretionary - Consumer Staples - Energy Financials Health Care Industrials Information Technology - Materials Real Estate - Utilities 60.0 75.0 Performance Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials Real Estate Utilities -45.0 -30.0 -15.0 0.0 15.0 Polen - Large Cap Growth Russell 1000 Gr -2.0 -1.6 -1.2 -0.8 -0.4 0.0 0.4 O18 1.2 1.6 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 31 30.0 2.0 2.4 2.8 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 19.35 7.58 0.56 -6.77 Consumer Discretionary 19.25 17.05 -17.88 -15.58 Consumer Staples 0.00 5.66 0.00 10.02 Energy 0.00 1.56 0.00 12.83 Financials 0.00 3.04 0.00 9.43 Health Care 15.04 12.17 6.41 13.08 Industrials 0.00 7.19 0.00 15.42 Information Technology 46.35 42.73 6.71 3.30 Materials 0.00 1.37 0.00 8.93 Real Estate 0.00 1.61 0.00 3.56 Utilities 0.00 0.05 0.00 16.51 Total 100.00 100.00 0.74 2.18 Attribution Sector Stock Interaction Total -1.05 0.55 0.86 0.36 -0.39 -0.39 -0.05 -0.83 -0.44 0.00 0.00 -0.44 -0.17 0.00 0.00 -0.17 -0.22 0.00 0.00 -0.22 0.31 -0.81 -0.19 -0.69 -0.95 0.00 0.00 -0.95 0.04 1.45 0.12 1.62 -0.09 0.00 0.00 -0.09 -0.02 0.00 0.00 -0.02 -0.01 0.00 0.00 -0.01 -2.99 0.80 0.74 -1.45 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 32 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt. Cap ($000) 413,163,898.24 619,988,774.19 Weight Weight Weight Return Median Mkt. Cap ($000) 139,993,046.44 13,739,979.50 (%) (%) (%) (%) Price/Earnings ratio 33.94 24.51 Amazon.com Inc 9.89 4.36 5.53 -25.66 Price/Book ratio 6.97 8.54 Alphabet Inc 7.98 2.41 5.57 -7.72 5 Yr. EPS Growth Rate (%) 26.92 23.10 Netflix Inc 6.78 0.34 6.44 25.25 Beta N/A 1.00 Microsoft Corp 6.63 10.48 -3.85 3.26 Number of Stocks 23 512 Adobe Inc 6.52 0.91 5.61 22.29 Debt to Equity (%) -77.25 133.28 Mastercard Inc 5.49 1.73 3.76 22.49 ServiceNow Inc 5.34 0.45 4.89 2.82 Visa Inc 5.10 2.00 3.10 17.22 SALESFORCE INC 4.65 0.16 4.49 -7.82 Unitedhealth Group Inc 4.60 2.64 1.96 5.30 % of Portfolio 62.98 25.48 37.50 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return Nike Inc 2.54 0.84 1.70 41.20 Amazon.com Inc 9.89 4.36 5.53 -25.66 Netflix Inc 6.78 0.34 6.44 25.25 Airbnb Inc 3.31 0.19 3.12 -18.60 Mastercard Inc 5.49 1.73 3.76 22.49 PayPal Holdings Inc 2.80 0.15 2.65 -17.25 Adobe Inc 6.52 0.91 5.61 22.29 SALESFORCE INC 4.65 0.16 4.49 -7.82 Gartner Inc 3.19 0.15 3.04 21.49 Alphabet Inc 7.98 2.41 5.57 -7.72 Visa Inc 5.10 2.00 3.10 17.22 Zoetis Inc 2.65 0.40 2.25 -0.96 Abbott Laboratories 4.53 0.15 4.38 13.99 AUTODESK INC 4.39 0.24 4.15 0.04 Thermo Fisher Scientific Inc 3.74 0.15 3.59 8.63 Align Technology Inc 0.97 0.07 0.90 1.83 Illumina Inc 3.18 0.00 3.18 5.98 ServiceNow Inc 5.34 0.45 4.89 2.82 Unitedhealth Group Inc 4.60 2.64 1.96 5.30 Microsoft Corp 6.63 10.48 -3.85 3.26 % of Portfolio 45.67 8.91 36.76 % of Portfolio 48.61 18.91 29.70 Graystone Page 33 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan iShares - Russell 1000 Growth ETF - Executive Summary as of December 31, 2022 Manager Performance Chart 15.0 0.0 r v -15.0 -30.0 -45.0 Current Fiscal 1 Since Quarter YTD Year Inception Manager Annualized Performance Current Fiscal 1 Since Inception Quarter YTD Year Inception Date iShares - Russell 1000 Growth ETF 2.36 2.36 -29.17 -4.74 01/01/2021 Russell 1000 Gr 2.20 2.20 -29.14 -4.92 Differences 0.16 0.16 -0.03 0.18 Historic Asset Growth Current Fiscal 1 Since Inception Quarter YTD Year Inception Date iShares - Russell 1000 Growth ETF 01/01/2021 Beginning Market Value 1,399 1,399 2,022 1,582 Net Contributions - - - -4 Fees/Expenses - - - - Income 8 8 13 23 Gain/Loss 25 25 -603 -169 Ending Market Value 1,432 1,432 1,432 1,432 Modern Portfolio Statistics Manager Risk & Return 4.0 0.0 0 -2.0 4.0 6.0 -8.0 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) iShares - Russell 1000 Growth ETF p Russell 1000 Gr 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date iShares - Russell 1000 Growth ETF -4.74 21.53 1.00 -30.80 100.09 99.49 0.20 -0.15 1.00 01/01/2021 Russell 1000 Gr -4.91 21.46 1.00 -30.66 100.00 100.00 0.00 -0.16 1.00 01/01/2021 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 34 g from Morgan Stanley 6 City of Sebastian Police Officers' Retirement Plan iShares - Russell 1000 Growth ETF - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $2.4 .2 $2.1 $1.8 0� $1.6 $1.5 �� $1.4 v $1.4 $1.2 $0.9 12/20 3/21 6/21 9/21 12/21 3/22 6/22 9/22 12/22 — iShares - Russell 1000 Growth ETF — Russell 1000 Gr — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2022 12/31/2022 iShares - Russell 1000 Growth ETF 1,398,950.39 - 7,714.09-7,714.09 - - 33,046.57 1,431,996.96 Distribution of Returns 9 >1 6 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 35 5 >5 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 o.o 15.0 8.0 0.0 ■ ❑ -15.0 6.0 0 -30.0 4.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 2.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Boston Partners - SMID Value 9.93 9.93 -9.17 6.90 5.78 6.71 0.0 Russell 2500 VL 9.21 9.21 -13.09 5.21 4.75 5.77 Differences 0.72 0.72 3.92 1.69 1.03 0.94 Historic Asset Growth -2.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Current Fiscal 1 3 5 Inception u Risk (Standard Deviation /o) Quarter YTD Year Years Years 08/01/2017 Boston Partners - SMID Value Boston Partners - SMID Value O Russell 2500 VL Beginning Market Value 2,254 2,254 2,849 897 720 672 Net Contributions -3 -3 -100 1,147 1,267 1,266 . 90-Day T-Bills Fees/Expenses -6 -6 -24 -55 -71 -73 Income 14 14 48 104 130 136 Gain/Loss 210 210 -304 376 424 467 Ending Market Value 2,469 2,469 2,469 2,469 2,469 2,469 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Boston Partners - SMID Value 6.71 23.78 1.05 -38.80 105.79 102.51 0.87 0.35 0.97 08/01/2017 Russell 2500 VL 5.77 22.29 1.00 -34.64 100.00 100.00 0.00 0.31 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy guarantee of future results. cannot be guaranteed. Past performance is not a Graystone Consulting Page 36 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston SMID Value - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $4.5 z~ 0 $3.0 C $1.5 $0.0 7/17 1/18 7/18 1/19 7/19 1/20 7/20 1/21 7/21 1/22 — Boston Partners - SMID Value Russell 2500 VL — Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions Fees Expenses Investmenteturn O 10/01/2022 Boston Partners - SMID Value 2,253,566.80 - 769,433.99-772,651.62-5,555.27 - 223,843.06 Distribution of Returns 20 15 U L.' v 10 9 D" v w w 5 0 $2.5 $2.3 $1.9 7/22 12/22 Market Value As of 12/31/2022 2,468,636.96 13 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 37 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of December 31, 2022 Allocation Communication Services Consumer Discretionary Consumer Staples -` Energy - Financials - Health Care - Industrials - Information Technology - Materials -Mmn� Real Estate -� Utilities I I I 0.0 6.0 12.0 18.0 24.0 30.0 Boston Partners - SMID Value Russell 2500 VL Total Attribution Communication Services Consumer Discretionary - Consumer Staples - Energy Financials Health Care Industrials Information Technology - Materials Real Estate - Utilities Performance Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials -� Health Care -` Industrials - Information Technology - Materials -� Real Estate - Utilities 36.0 0.0 67 12.0 18.0 24.0 30.0 Boston Partners - SMID Value Russell 2500 VL -1.8 -1.5 -1.2 -0.9 -0.6 -0.3 0.0 0.3 0.6 0.9 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 38 36.0 1.2 1.5 1.8 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 3.41 3.07 5.15 4.64 Consumer Discretionary 12.88 10.33 7.05 14.40 Consumer Staples 2.19 2.95 22.88 11.16 Energy 8.64 4.64 16.78 11.41 Financials 23.71 22.32 8.76 6.95 Health Care 11.63 9.28 2.12 5.15 Industrials 16.42 17.10 14.77 13.16 Information Technology 11.09 8.82 13.00 3.74 Materials 6.66 5.65 14.15 18.97 Real Estate 1.77 11.60 9.98 5.31 Utilities 1.61 4.23 19.89 8.92 Total 100.00 100.00 10.66 9.16 Attribution Sector Stock Interaction Total -0.02 0.02 0.00 0.00 0.13 -0.76 -0.19 -0.81 -0.02 0.35 -0.09 0.24 0.09 0.25 0.21 0.55 -0.03 0.40 0.03 0.40 -0.09 -0.28 -0.07 -0.45 -0.03 0.28 -0.01 0.24 -0.12 0.82 0.21 0.90 0.10 -0.27 -0.05 -0.22 0.38 0.54 -0.46 0.46 0.01 0.46 -0.29 0.18 0.40 1.80 -0.70 1.50 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 39 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly Wtd. Avg. Mkt. Cap ($000) 6,230,100.76 6,062,977.33 Weight Weight Weight Return Median Mkt. Cap ($000) 4,455,807.52 1,267,636.98 N N N N Price/Earnings ratio 11.65 10.96 WESCO International Inc 2.07 0.08 1.99 4.87 Price/Book ratio 2.08 1.97 Nexstar Media Group Inc. 1.87 0.18 1.69 5.48 5 Yr. EPS Growth Rate (%) 19.16 16.30 SLM Corp 1.87 0.13 1.74 19.41 Beta (5 Years, Monthly) 1.05 1.00 Graphic Packaging Holding Co 1.81 0.05 1.76 13.22 Number of Stocks 178 1,818 Science Applications International Corp 1.60 0.19 1.41 25.95 Debt to Equity (%) 76.85 106.53 Icon PLC 1.51 0.00 1.51 5.70 Topgolf Callaway Brands Corp 1.51 0.09 1.42 2.54 Tempur Sealy International Inc 1.23 0.18 1.05 42.66 Belden Inc 1.17 0.04 1.13 19.87 Concentrix Corp 1.05 0.18 0.87 19.56 % of Portfolio 15.69 1.12 14.57 Ten Best Performers Ten Worst Performers Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return Altra Industrial Motion Corp 0.68 0.12 0.56 77.99 R1 RCM INC 0.48 0.00 0.48 -40.91 Universal Health Services Inc. 0.98 0.28 0.70 60.02 Catalent Inc 0.33 0.00 0.33 -37.80 Championx Corp 0.44 0.00 0.44 48.64 Stride Inc 0.99 0.00 0.99 -25.58 Wabash National Corp 0.02 0.00 0.02 45.94 Herbalife Nutrition Ltd 0.35 0.02 0.33 -25.19 Fair Isaac Corporation 0.37 0.00 0.37 45.28 Syneos Health Inc 0.74 0.10 0.64 -22.21 International Game Technology PLC 0.59 0.05 0.54 44.75 Gray Television Inc. 0.29 0.02 0.27 -21.33 Buckle Inc. (The) 0.48 0.00 0.48 44.70 CommScope Holding Co Inc 0.62 0.00 0.62 -20.20 AGCO Corp 0.67 0.24 0.43 44.49 Petco Health & Wellness Co Inc 0.29 0.02 0.27 -15.05 Terex Corp 0.40 0.05 0.35 44.09 Resideo Technologies Inc 0.56 0.07 0.49 -13.69 Tempur Sealy International Inc 1.23 0.18 1.05 42.66 Amedisys Inc 0.50 0.08 0.42 -13.69 % of Portfolio 5.86 0.92 4.94 % of Portfolio 5.15 0.31 4.84 Graystone Page 4o Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Executive Summary as of December 31, 2022 Manager Performance Chart 40.0 20.0 0.0 AN- 94 -20.0 -40.0 -60.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Fiera Capital - SMID Growth 5.09 5.09 -21.46 10.33 10.23 11.78 Russell 2500 GR 4.72 4.72 -26.21 2.88 5.97 7.56 Differences 0.37 0.37 4.75 7.45 4.26 4.22 Historic Asset Growth Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Fiera Capital - SMID Growth Beginning Market Value 1,375 1,375 1,821 868 750 669 Net Contributions - - 28 321 296 295 Fees/Expenses -3 -3 -12 -32 -44 -45 Income 3 3 13 42 52 54 Gain/Loss 67 67 -407 243 389 470 Ending Market Value 1,442 1,442 1,442 1,442 1,442 1,442 Modern Portfolio Statistics Manager Risk & Return 18.0 15.0 12.0 0 9.0 a 6.0 3.0 0.0 -3.0 12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Fiera Capital - SMID Growth Q Russell 2500 GR . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Fiera Capital - SMID Growth 11.78 21.41 0.94 -26.32 100.88 86.18 4.36 0.57 0.95 08/01/2017 Russell 2500 GR 7.56 22.15 1.00 -32.84 100.00 100.00 0.00 0.39 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 41 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $2.4 s~ 0 $1.8 Q $1.2 $0.6 $0.0 7/17 1/18 7/18 1/19 7/19 1/20 7/20 — Fiera Capital - SMID Growth Russell 2500 GR — Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions 10/01/2022 Fiera Capital - SMID Growth 1,375,136.90 - 129,050.01-129,369.64 Distribution of Returns 24 18 U L.' v D" 12 v 10 « w 6 2 o 0 o � �$1.4 $1.2 / $0.9 1/21 7/21 1/22 7/22 12/22 Return On Market Value Fees Expenses Investment As of 12/31/2022 -2,578.51 - 70,144.18 1,442,382.94 15 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 42 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation Communication Services Consumer Discretionary - Consumer Staples -� Energy -! Financials -� Health Care - Industrials - Information Technology - Materials Real Estate Utilities 0.0 8.0 16.0 24.0 32.0 40.0 48.0 Fiera Capital - SMID Growth Russell 2500 GR Total Attribution Communication Services Consumer Discretionary - Consumer Staples - Energy Financials Health Care Industrials Information Technology - Materials Real Estate - Utilities Performance Communication Services - Consumer Discretionary - Consumer Staples - Energy - Financials - Health Care - Industrials - Information Technology - Materials - Real Estate - Utilities - -20.0 -10.0 0.0 10.0 20.0 Fiera Capital - SMID Growth Russell 2500 GR -2.4 -2.0 -1.6 -1.2 -0.8 -0.4 0.0 0.4 O18 1.2 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 43 30.0 1.6 2.0 2.4 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 2.37 1.91 -0.37 -0.78 Consumer Discretionary 15.52 11.96 14.58 6.68 Consumer Staples 0.00 3.72 0.00 9.19 Energy 5.97 5.53 18.78 15.60 Financials 5.10 7.09 19.51 2.51 Health Care 28.48 20.56 -4.33 -1.48 Industrials 13.77 17.87 13.05 6.97 Information Technology 28.01 22.78 1.65 3.65 Materials 0.78 4.81 12.25 10.53 Real Estate 0.00 2.49 0.00 9.03 Utilities 0.00 1.28 0.00 3.04 Total 100.00 100.00 5.49 4.71 Attribution Sector Stock Interaction Total -0.03 0.01 0.00 -0.02 0.07 0.94 0.28 1.30 -0.17 0.00 0.00 -0.17 0.05 0.18 0.01 0.24 0.04 1.20 -0.34 0.91 -0.49 -0.59 -0.23 -1.30 -0.09 1.09 -0.25 0.74 -0.06 -0.46 -0.10 -0.62 -0.23 0.08 -0.07 -0.22 -0.11 0.00 0.00 -0.11 0.02 0.00 0.00 0.02 -0.99 2.46 -0.69 0.78 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 44 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital - SMID Growth - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Wtd. Avg. Mkt. Cap ($000) Median Mkt. Cap ($000) Price/Earnings ratio Price/Book ratio 5 Yr. EPS Growth Rate (%) Beta (5 Years, Monthly) Number of Stocks Debt to Equity (%) Ten Best Performers Outset Medical Inc Championx Corp Veracyte Inc Invesco Ltd Lattice Semiconductor Corporation United Rentals Inc. Royal Caribbean Group EMCOR Group Inc. Deckers Outdoor Corp Arrowhead Pharmaceuticals Inc % of Portfolio Page 45 Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly 11,730,678.70 5,692,943.48 Weight Weight Weight Return 7,058,182.05 1,456,013.46 C%) N N N 21.66 16.22 Arista Networks Inc 3.72 0.00 3.72 7.49 4.44 4.10 Hyatt Hotels Corp 3.52 0.00 3.52 11.72 25.32 22.87 Deckers Outdoor Corp 3.31 0.46 2.85 27.69 0.94 1.00 Molina Healthcare Inc. 2.86 0.00 2.86 0.11 64 1,340 Championx Corp 2.75 0.29 2.46 48.64 67.34 120.49 EMCOR Group Inc. 2.61 0.35 2.26 28.41 Citizens Financial Group Inc 2.57 0.00 2.57 15.77 Etsy Inc 2.51 0.00 2.51 19.62 iRhythm Technologies Inc 2.47 0.14 2.33 -25.23 arGEN-X SE 2.41 0.00 2.41 7.30 % of Portfolio Ten Worst Performers 28.73 1.24 27.49 Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return N N N N N N N N 0.55 0.06 0.49 62.08 Guardant Health Inc 0.57 0.13 0.44 -49.47 2.75 0.29 2.46 48.64 Mirati Therapeutics Inc 1.22 0.00 1.22 -35.12 0.53 0.00 0.53 42.95 ShockWave Medical Inc 2.37 0.36 2.01 -26.06 1.84 0.00 1.84 32.86 iRhythm Technologies Inc 2.47 0.14 2.33 -25.23 1.66 0.44 1.22 31.84 PubMatic Inc 0.66 0.02 0.64 -22.97 1.91 0.00 1.91 31.58 Entegris Inc 1.72 0.48 1.24 -20.90 1.05 0.00 1.05 30.42 Regal Rexnord Corporation 1.37 0.00 1.37 -14.27 2.61 0.35 2.26 28.41 Karma Therapeutics Inc 1.24 0.29 0.95 -12.64 3.31 0.46 2.85 27.69 Inari Medical Inc 0.85 0.14 0.71 -12.50 1.61 0.21 1.40 22.72 GitLab Inc 1.01 0.00 1.01 -11.28 17.82 1.81 16.01 % of Portfolio 13.48 1.56 11.92 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - International Value - Executive Summary as of December 31, 2022 Manager Performance Chart 45.0 30.0 15.0 v -15.0 -30.0 Current Fiscal 1 Quarter YTD Year Manager Annualized Performance Current Fiscal Quarter YTD Highland - Intl Value 16.37 16.37 MSCI EAFE Net 17.34 17.34 Differences -0.97 -0.97 Historic Asset Growth Current Fiscal Quarter YTD Highland - Intl Value Beginning Market Value 829 829 Net Contributions - - Fees/Expenses -1 -1 Income 5 5 Gain/Loss 130 130 Ending Market Value 963 963 Modern Portfolio Statistics 3 5 Since Years Years Inception 1 3 5 Inception Year Years Years 08/01/2017 -16.70 -0.76 0.72 1.69 -14.45 0.87 1.54 2.66 -2.25 -1.63 -0.82 -0.97 1 3 5 Inception Year Years Years 08/01/2017 1,076 802 740 701 85 214 239 239 -5 -13 -21 -21 22 69 106 ill -215 -108 -100 -66 963 963 963 963 Manager Risk & Return 3.3 .0 2.- 2.4 Z 2.1 1.8 1.5 1.2 0.9 0.6 I 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Risk (Standard Deviation %) Highland - Intl Value Q MSCI EAFE Net . 90-Day T-Bills 24.0 28.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Intl Value 1.69 19.49 1.11 -28.71 106.85 110.34 -0.88 0.12 0.91 08/01/2017 MSCI EAFE Net 2.66 16.76 1.00 -27.30 100.00 100.00 0.00 0.17 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 46 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - International Value - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $1.5 s~ 0 $1.2 --►/\/�� $$1.0 $0.6 $0.3 7/17 1/18 7/18 1/19 7/19 1/20 7/20 1/21 — Highland - Intl Value — MSCI EAFE Net — Net Cash Flow Quarterly Change in Assets Market Value Net As of Transfers Contributions Distributions Fees 10/01/2022 Highland - Intl Value 829,068.59 - 5,200.13-5,543.69-1,035.34 Distribution of Returns 16 12 U Q 4J II 8 v w 4 0 7/21 1/22 7/22 12/22 Expenses Return On Investment - 135,663.92 Market Value As of 12/31/2022 963,353.61 11 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 47 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of December 31, 2022 Allocation Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Other 0.0 6.0 12.0 18.0 Highland - Intl Value 0 MSCI EAFE Net Total Attribution Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Other 24.0 30.0 Performance Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities Other 0.0 8.0 16.0 24.0 32.0 M Highland - Intl Value 0 MSCI EAFE Net -2.1 -1.8 -1.5 -1.2 -0.9 -0.6 -0.3 0.0 0.3 0.6 0.9 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 48 112 1.5 40.0 48.0 1.8 2.1 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 7.10 4.82 5.55 10.22 Consumer Discretionary 21.95 10.96 19.84 17.98 Consumer Staples 8.75 11.26 17.40 10.65 Energy 9.51 4.93 22.24 19.94 Financials 11.07 17.60 18.99 23.87 Health Care 7.00 13.85 6.45 14.19 Industrials 10.47 15.04 28.84 19.25 Information Technology 16.25 7.92 9.84 14.89 Materials 4.89 7.48 20.30 20.99 Real Estate 0.00 2.77 0.00 11.19 Utilities 1.03 3.37 19.02 19.40 Other 1.98 0.00 10.30 0.00 Total 100.00 100.00 16.95 17.42 Attribution Sector Stock Interaction Total -0.16 -0.22 -0.11 -0.50 0.06 0.20 0.20 0.47 0.17 0.76 -0.17 0.76 0.12 0.11 0.10 0.33 -0.42 -0.86 0.32 -0.96 0.22 -1.07 0.53 -0.32 -0.08 1.44 -0.44 0.92 -0.21 -0.40 -0.42 -1.03 -0.09 -0.05 0.02 -0.13 0.17 0.00 0.00 0.17 -0.05 -0.01 0.01 -0.05 -0.14 0.00 0.00 -0.14 -0.42 -0.10 0.05 -0.47 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 49 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Intl Value - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Wtd. Avg. Mkt. Cap ($000) Median Mkt. Cap ($000) Price/Earnings ratio Price/Book ratio 5 Yr. EPS Growth Rate (%) Beta (5 Years, Monthly) Number of Stocks Debt to Equity (%) Ten Best Performers iQIYI Inc Deutsche Bank AG Capri Holdings Ltd ING Groep NV Siemens AG Prudential PLC Tenaris SA, Luxembourg Mowi ASA Daimler Truck Holding AG Anheuser-Busch InBev SA/NV % of Portfolio Page 50 Portfolio Benchmark 115,168,756.97 76,649,372.16 38,581,649.76 11,967,087.45 12.21 12.91 2.11 2.44 9.78 10.54 1.11 1.00 61 796 96.00 103.60 Top Ten Equity Holdings Portfolio Benchmark Active Quarterly Weight Weight Weight Return (%) (%) N N Sony Group Corporation 6.25 0.67 5.58 19.09 Siemens AG 5.10 0.74 4.36 39.56 STMicroelectronics NV 4.13 0.17 3.96 15.14 Kyocera Corp 3.45 0.11 3.34 -1.54 Mercedes-Benz Group AG 3.33 0.37 2.96 28.97 Hitachi Ltd 3.30 0.34 2.96 20.05 Diageo PLC 3.19 0.70 2.49 4.94 BP PLC 3.16 0.75 2.41 23.71 Nippon T&T 3.15 0.24 2.91 5.66 Intercontinental Hotels Group PLC 3.01 0.07 2.94 20.02 % of Portfolio Ten Worst Performers 38.07 4.16 33.91 Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) (%) N N (%) 0.11 0.00 0.11 95.57 Credit Suisse Group 0.52 0.08 0.44 -20.02 0.53 0.16 0.37 55.68 Sea Limited 0.28 0.13 0.15 -7.17 0.93 0.00 0.93 49.12 Vodafone Group Public Limited Company 0.40 0.19 0.21 -6.91 1.76 0.32 1.44 43.18 Medtronic PLC 1.26 0.00 1.26 -2.90 5.10 0.74 4.36 39.56 Baidu Inc 0.99 0.00 0.99 -2.65 0.74 0.26 0.48 37.95 Philips Electronics NV 1.49 0.09 1.40 -2.60 2.67 0.06 2.61 37.47 Kyocera Corp 3.45 0.11 3.34 -1.54 0.22 0.05 0.17 35.08 Fox Corp 0.54 0.00 0.54 -0.17 0.79 0.10 0.69 35.05 NICE Ltd 1.04 0.09 0.95 2.16 2.99 0.37 2.62 32.95 Accenture PLC 1.45 0.00 1.45 4.17 15.84 2.06 13.78 % of Portfolio 11.42 0.69 10.73 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 3.6 15.0 3.0 ? 0.0 2.4 -15.0 1.8 0 1.2 - -30.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception a 0.6 - Manager Annualized Performance 0.0 ■ Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 0.6 Renaissance - International Growth 15.04 15.04 -17.00 -0.56 -1.03 -0.21 MSCI AC World ex US Net 14.28 14.28 -16.00 0.07 0.88 2.17 Differences 0.76 0.76 -1.00 -0.63 -1.91 -2.38 Historic Asset Growth -1.8 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 3 5 Inception u Risk (Standard Deviation /o) Quarter YTD Year Years Years 08/01/2017 Renaissance - International Growth Renaissance - International Growth O MSCI AC World ex US Net Beginning Market Value 1,255 1,255 1,580 1,134 1,056 1,016 Net Contributions -1 -1 165 393 521 521 . 90-Day T-Bills Fees/Expenses -2 -2 -10 -25 -38 -40 Income 4 4 32 89 139 146 Gain/Loss 185 185 -327 -150 -237 -201 Ending Market Value 1,442 1,442 1,442 1,442 1,442 1,442 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Renaissance - International Growth -0.21 19.12 1.13 -33.88 107.99 118.58 -2.28 0.02 0.94 08/01/2017 MSCI AC World ex US Net 2.17 16.47 1.00 -27.79 100.00 100.00 0.00 0.14 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained guarantee of future results. from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 51 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $2.5 s~ .9 $2.0 $1.6 $1.5 �/\/� $1.5 $1.0 v $0.5 $0.0 7/17 1/18 7/18 1/19 7/19 1/20 7/20 1/21 7/21 1/22 7/22 12/22 — Renaissance - International Growth — MSCI AC World ex US Net — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2022 12/31/2022 Renaissance - International Growth 1,255,377.93 - 141,194.82 -141,748.56-2,063.02 - 188,767.48 1,441,528.65 Distribution of Returns 16 12 U Q N II 8 v w 4 0 11 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 52 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation Performance Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 0.0 6.0 12.0 18.0 Renaissance - International Growth MSCI AC World ex US Net Total Attribution Communication Services Consumer Discretionary - Consumer Staples - Energy Financials Health Care Industrials Information Technology - Materials Real Estate - Utilities 24.0 30.0 Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 0.0 8.0 16.0 24.0 Renaissance - International Growth MSCI AC World ex US Net -2.0 -1.6 -1.2 -0.8 -0.4 0.0 0.4 0.8 1.2 1.6 2.0 2.4 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 53 32.0 40.0 48.0 2.8 3.2 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Quarterly Performance Attributes as of December 31, 2022 Allocation - 10/01/2022 Performance - Quarter Ending December 31, 2022 Portfolio Benchmark Portfolio Benchmark Communication Services 4.90 6.05 6.64 11.99 Consumer Discretionary 13.54 11.24 29.47 14.64 Consumer Staples 8.28 9.36 9.86 9.67 Energy 5.51 6.17 2.27 13.69 Financials 19.02 20.67 18.73 15.54 Health Care 11.79 9.80 9.44 14.06 Industrials 12.15 12.05 22.97 17.48 Information Technology 12.99 10.76 15.52 13.41 Materials 8.40 8.17 22.87 16.70 Real Estate 0.00 2.37 0.00 10.53 Utilities 3.42 3.36 19.64 12.85 Total 100.00 100.00 17.33 14.31 Attribution Sector Stock Interaction Total 0.03 -0.32 0.06 -0.23 0.01 1.67 0.34 2.01 0.05 0.02 0.00 0.07 0.00 -0.70 0.07 -0.63 -0.02 0.66 -0.05 0.59 0.00 -0.45 -0.09 -0.55 0.00 0.66 0.01 0.67 -0.02 0.23 0.05 0.25 0.01 0.50 0.01 0.52 0.09 0.00 0.00 0.09 0.00 0.23 0.00 0.23 0.14 2.48 0.40 3.03 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 54 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Portfolio Characteristics as of December 31, 2022 Portfolio Characteristics Wtd. Avg. Mkt. Cap ($000) Median Mkt. Cap ($000) Price/Earnings ratio Price/Book ratio 5 Yr. EPS Growth Rate (%) Beta (5 Years, Monthly) Number of Stocks Debt to Equity (%) Ten Best Performers Capri Holdings Ltd International Game Technology PLC Arch Capital Group Ltd Infineon Technologies EADS Alhanz SE Publicis Groupe SA UBS Group AG KB Financial Group Inc Sanofi % of Portfolio Page 55 Top Ten Equity Holdings Portfolio Benchmark Portfolio Benchmark Active Quarterly 77,928,339.14 77,574,438.79 Weight Weight Weight Return 31,874,325.75 8,612,419.74 (%) (%) (%) (%) 8.99 1219 Arch Capital Group Ltd 2.62 0.00 2.62 37.86 2.02 2.42 PT Bank Rakyat Indonesia TBK 2.47 0.10 2.37 7.62 14.05 12.16 Icici Bank Ltd 2.28 0.25 2.03 4.39 1.13 1.00 Capri Holdings Ltd 2.24 0.00 2.24 49.12 56 2,261 Sendas Distribuidora S.A. 2.22 0.02 2.20 13.74 169.86 108.21 Holcim Ltd 2.19 0.13 2.06 24.30 Sanofi 2.19 0.49 1.70 27.38 UBS Group AG 2.18 0.28 1.90 28.67 Grupo Aeroportuario 2.14 0.02 2.12 18.77 Astellas Pharma Inc 2.13 0.13 2.00 14.82 % of Portfolio Ten Worst Performers 22.66 1.42 21.24 Portfolio Benchmark Active Quarterly Portfolio Benchmark Active Quarterly Weight Weight Weight Return Weight Weight Weight Return (%) (%) (%) (%) (%) (%) (%) (%) 2.24 0.00 2.24 49.12 Vermilion Energy Inc 1.10 0.00 1.10 -17.09 1.87 0.00 1.87 44.75 Golar LNG Ltd 1.52 0.00 1.52 -8.55 2.62 0.00 2.62 37.86 WH Group Ltd 2.03 0.02 2.01 -7.75 1.99 0.18 1.81 36.38 Olympus Corp 1.57 0.10 1.47 -7.14 2.09 0.31 1.78 36.06 Tremor International Ltd 0.91 0.00 0.91 -6.93 2.02 0.39 1.63 35.27 Itau Unibanco Holding SA 1.71 0.10 1.61 -6.84 1.87 0.07 1.80 32.38 Roche Holding AG 1.73 0.99 0.74 -4.46 2.18 0.28 1.90 28.67 Nintendo Co Ltd 2.05 0.21 1.84 1.54 1.91 0.07 1.84 28.27 Capgemini SE 1.65 0.12 1.53 2.65 2.19 0.49 1.70 27.38 Icici Bank Ltd 2.28 0.25 2.03 4.39 20.98 1.79 19.19 % of Portfolio 16.55 1.79 14.76 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Executive Summary as of December 31, 2022 Manager Performance Chart 8.0 Manager Risk & Return .8 0.0 1.5 E -8.0 1.2 -16.0 0.9 0 -24.0 0.6 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 0.3 Current Fiscal 1 3 5 Inception 0.0- Quarter YTD Year Years Years 08/01/2017 Highland - Fixed Income 0.75 0.75 -10.29 -0.92 1.08 1.16 -0.3 Barclays Aggregate 1.87 1.87 -13.01 -2.71 0.02 0.17 Differences -1.12 -1.12 2.72 1.79 1.06 0.99 Historic Asset Growth Current Quarter Highland - Fixed Income Beginning Market Value 4,323 Net Contributions -925 Fees/Expenses -3 Income 39 Gain/Loss -6 Ending Market Value 3,427 Modern Portfolio Statistics Fiscal 1 3 5 Inception YTD Year Years Years 08/01/2017 4,323 4,547 3,898 3,904 3,980 -925 -608 -262 -538 -650 -3 -14 -39 -74 -74 39 123 358 598 658 -6 -622 -527 -463 -487 3,427 3,427 3,427 3,427 3,427 -0.6 1 1 -2.4 -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 Risk (Standard Deviation %) Highland - Fixed Income O Barclays Aggregate . 90-Day T-Bills 7.2 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Fixed Income 1.16 4.89 0.78 -12.96 89.19 72.35 1.05 0.01 0.60 08/01/2017 Barclays Aggregate 0.17 4.87 1.00 -17.18 100.00 100.00 0.00 -0.19 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its guarantee of future results. accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 56 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $24.0 z~ 0 $16.0 C $8.0 $3.4 $0.0 $0.2 �($1.7 ($8.0) 1/11 10/11 7/12 4/13 1/14 10/14 7/15 4/16 1/17 10/17 7/18 4/19 1/20 10/20 7/21 4/22 12/22 — Highland - Fixed Income Barclays Aggregate — Net Cash Flow Quarterly Change in Assets Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2022 12/31/2022 Highland - Fixed Income 4,323,222.20 - 1,225,763.36-2,150,701.27 -3,242.85 - 32,256.49 3,427,297.93 Distribution of Returns 60 45 40 15 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 > 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 57 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 24.0 15.0 16.0 8.0 12.0 v 94 0.0 or ■ 9.0 -8.0 0 -16.0 6.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 3.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 10/01/2017 Intercontinental - Private Real Estate -6.01 -6.01 8.33 11.09 10.84 10.88 0.0 NCREIF Property Idx -3.50 -3.50 5.51 8.06 7.46 7.46 Differences -2.51 -2.51 2.82 3.03 3.38 3.42 Historic Asset Growth -3.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Current Fiscal 1 3 5 Inception Risk (Standard Deviation %) Quarter YTD Year Years Years 10/01/2017 Intercontinental - Private Real Estate Intercontinental - Private Real Estate O NCREIF Property Idx Beginning Market Value 956 956 848 733 115 112 Net Contributions -4 -4 -18 -51 450 450 . 90-Day T-Bills Fees/Expenses -3 -3 -9 -45 -65 -65 Income - - - - - - Gain/Loss -57 -57 71 255 392 395 Ending Market Value 891 891 891 891 891 891 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Intercontinental - Private Real Estate 10.88 7.46 1.37 -6.01 143.77 134.19 0.58 1.25 0.87 10/01/2017 NCREIF Property 1dx 7.46 5.09 1.00 -3.50 100.00 100.00 0.00 1.18 1.00 10/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy guarantee of future results. cannot be guaranteed. Past performance is not a Graystone Consulting Page 58 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $1.5 z~ 0 $1.0 C $0.5 $0.0 ($0.5) 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 7/21 10/21 1/22 4/22 7/22 — Intercontinental - Private Real Estate NCREIF Property Idx — Net Cash Flow Quarterly Change in Assets Intercontinental - Private Real Estate Distribution of Returns 80 60 20 $0.9 $0.8 $0.5 12/22 Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2022 12/31/2022 955,903.00 - --4,124.00-3,264.00 --57,048.00 891,467.00 45 0— 1 0 0 0 0 1 M � 1 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 59 4 1 � 4To5 >5 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Lazard - Global Infrastructure - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 16.0 t 2.0 8.0 � 10.0 0 0.0 8.0 -8.0 6.0 0 -16.0 4.0 Current Fiscal 1 Since Quarter YTD Year Inception p4 Manager Annualized Performance 2.0 Current Fiscal 1 Since Inception 0.0 Quarter YTD Year Inception Date Lazard - Global Infrastructure 9.67 9.67 -1.30 8.77 01/01/2021 -2.0 DJ Brookfield Gbl Infra Comp TR 9.38 9.38 -4.91 6.94 Differences 0.29 0.29 3.61 1.83 Historic Asset Growth -40 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 Since Inception Risk (Standard Deviation %) Quarter YTD Year Inception Date Lazard - Global Infrastructure 01/01/2021 ■ Lazard - Global Infrastructure O DJ Brookfield Gbl Infra Comp TR Beginning Market Value 1,050 1,050 1,166 973 Net Contributions - - - - . 90-Day T-Bills Fees/Expenses - - - - Income 107 107 154 223 Gain/Loss -5 -5 -169 -44 Ending Market Value 1,151 1,151 1,151 1,151 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Lazard - Global Infrastructure 8.77 14.57 0.79 -12.82 85.66 72.99 3.07 0.60 0.86 01/01/2021 DJ Brookfield Gbl Infra Comp TR 6.92 17.02 1.00 -17.19 100.00 100.00 0.00 0.43 1.00 01/01/2021 The prices, quotes, or statistics contained herein have been obtained guarantee of future results. from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 6o g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Lazard - Global Infrastructure - Change in Assets & Distribution of Returns as of December 31, 2022 Historic Change in Assets $1.6 0 $1.4 $1.2 4 $1.0 � $0.8 12/20 3/21 6/21 9/21 12/21 3/22 — Lazard - Global Infrastructure — DJ Brookfield Gbl Infra Comp TR — Net Cash Flow Quarterly Change in Assets Lazard - Global Infrastructure Distribution of Returns 6 4 U L.' $1.2 $1.0 6/22 9/22 12/22 Market Value Net Return On Market Value As of Transfers Contributions Distributions Fees Expenses Investment As of 10/01/2022 12/31/2022 1,049,768.91 - 213,570.28-213,570.28 - - 101,473.33 1,151,242.24 3 a' v a. L4 2 2 1 1 0 0 < -5 -5 To -4 -4 To -3 -3 To -2 -2 To -1 -1 To 0 0 To 1 1 To 2 2 To 3 3 To 4 4 To 5 Returns (%) The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 61 4 4 >5 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Policy Index History As of December 31, 2022 Policy Feb-2011 S&P 500 Total Return 48.00 Barclays Govt/Credit Bond 49.00 90-Day T-Bills 3.00 Jul-2011 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jan-2016 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jul-2017 Russell 1000 Value 21.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 21.25 Russell 2500 VL 5.00 Russell 2500 GR 5.00 MSCI AC World ex US Net 7.50 Alerian MLP Index 5.00 NCREIF Property Idx 5.00 Jan-2021 Russell 1000 Value 16.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI AC World ex US Net 7.50 DJ Brookfield Gbl Infra Comp TR 5.00 NCREIF Property Idx 5.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 62 Graystone Consulting from Morgan Stanley Performance Appendix Performance Data below is net of fees. Please seethe Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. or 3 5 10 Since Inception Account Name QTD YTDJW Years Years Years Inception 1 Date Boston Partners - SMID Value 9.69 -9.98 -9.98 5.91 4.72 -- 5.52 07/14/2017 Fiera Capital - SMID Growth 4.91 -22.05 -22.05 9.50 9.40 -- 10.62 07/20/2017 Highland - Fixed Income 0.68 -10.56 -10.56 -1.22 0.71 4.14 3.96 01/31/2011 Highland - Intl Value 16.24 -17.11 -17.11 -1.21 0.21 -- 1.60 07/17/2017 Highland - Large Cap Value 12.06 -7.84 -7.84 5.13 5.95 -- 7.06 07/17/2017 Intercontinental - Private Real Estate -6.34 7.32 7.32 9.07 8.99 -- 9.06 10/01/2017 Lazard - Global Infrastructure 9.67 -1.30 -1.30 -- -- -- 8.41 12/31/2020 Polen - Large Cap Growth -0.34 -37.93 -37.93 -- -- -- -14.60 04/01/2021 Receipt & Disbursement -5.67 -15.41 -15.41 -16.86 -12.86 -- -11.78 08/01/2017 Renaissance - International Growth 14.87 -17.52 -17.52 -1.16 -1.65 -- -0.73 07/17/2017 iShares - Russell 1000 Growth ETF 2.36 -29.17 -29.17 -- -- -- -4.56 12/31/2020 All performance above are Time Weighted(TWR) performance Glossary of Terms Active Contribution Return: The gain or loss percentage of an investment relative to the performance of the investment benchmark. Active Exposure: The percentage difference in weight of the portfolio compared to its policy benchmark. Active Return: Arithmetic difference between the manager's return and the benchmark's return over a specified time period. Actual Correlation: A measure of the correlation (linear dependence) between two variables X and Y, with a value between +1 and -1 inclusive. This is also referred to as coefficient of correlation. Alpha: A measure of a portfolio's time weighted return in excess of the market's return, both adjusted for risk. A positive alpha indicates that the portfolio outperformed the market on a risk -adjusted basis, and a negative alpha indicates the portfolio did worse than the market. Best Quarter: The highest quarterly return for a certain time period. Beta: A measure of the sensitivity of a portfolio's time weighted return (net of fees) against that of the market. A beta greater than 1.00 indicates volatility greater than the market. Consistency: The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance Core: Refers to an investment strategy mandate that is blend of growth and value styles without a pronounced tilt toward either style. Cumulative Selection Return (Cumulative Return): Cumulative investment performance over a specified period of time. Distribution Rate: The most recent distribution paid, annualized, and then divided by the current market price. Distribution rate may consist of investment income, short-term capital gains, long-term capital gains, and/or return of capital. Down Market Capture: The ratio of average portfolio returns over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Downside Risk: A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the value, the more risk the product has. Downside Semi Deviation: A statistical calculation that measures the volatility of returns below a minimum acceptable return. This return measure isolates the negative portion of volatility: the larger the number, the greater the volatility. Drawdown: A drawdown is the peak -to -trough decline during a specific period of an investment, fund or commodity. Excess over Benchmark: The percentage gain or loss of an investment relative to the investment's benchmark. Excess Return: Arithmetic difference between the manager's return and the risk -free return over a specified time period. Growth: A diversified investment strategy which includes investment selections that have capital appreciation as the primary goal, with little or no dividend payouts. These strategies can include reinvestment in expansion, acquisitions, and/or research and development opportunities. Growth of Dollar: The aggregate amount an investment has gained or lost over a certain time period, also referred to as Cumulative Return, stated in terms of the amount to which an initial dollar investment would have grown over the given time period. Investment Decision Process (IDP): A model for structuring the investment process and implementing the correct attribution methodologies. The IDP includes every decision made concerning the division of the assets under management over the various asset categories. To analyze each decisions contribution to the total return, a modeling approach must measure the marginal value of every individual decision. In this respect, the hierarchy of the decisions becomes very important. We therefore use the IDP model, which serves as a proper foundation for registering the decisions and relating them to each other. Information Ratio: Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Jensen's Alpha: The Jensen's alpha measure is a risk -adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. This metric is also commonly referred to as alpha.. Kurtosis: A statistical measure that is used to describe the distribution, or skewness, of observed data around the mean, sometimes referred to as the volatility of volatility. Maximum Drawdown: The drawdown is defined as the percent retrenchment from a fund's peak to the fund's trough value. It is in effect from the time the fund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peak to the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). It measures the largest percentage drawdown that has occurred in any fund's data record. Modern Portfolio Theory (MPT): An investment analysis theory on how risk -averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Mutual Fund (MF): An investment program funded by shareholders that trade in diversified holdings and is professionally managed. Peer Group: A combination of funds that share the same investment style combined as a group for comparison purposes. Peer/ Plan Sponsor Universe: A combination of asset pools of total plan investments by specific sponsor and plan types for comparison purposes. Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transaction data for these assets are not processed or maintained by us. Common examples of these include life insurance, some annuities and some assets held externally. Performance Statistics: A generic term for various measures of investment performance measurement terms. Portfolio Characteristics: A generic term for various measures of investment portfolio characteristics. Preferred Return: A term used in the private equity (PE) world, and also referred to as a "Hurdle Rate." It refers to the threshold return that the limited partners of a private equity fund must receive, prior to the PE firm receiving its carried interest or "carry." Ratio of Cumulative Wealth: A defined ratio of the Cumulative Return of the portfolio divided by the Cumulative Return of the benchmark for a certain time period. Regression Based Analysis: A statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables Residual Correlation: Within returns -based style analysis, residual correlation refers to the portion of a strategy's return pattern that cannot be explained by its correlation to the asset -class benchmarks to which it is being compared. Return: A rate of investment performance for the specified period. Rolling Percentile Ranking: A measure of an investment portfolio's ranking versus a peer group for a specific rolling time period (i.e. Last 3 Years, Last 5 years, etc.). R-Squared: The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. SA/CF (Separate Account/Comingled Fund): Represents an acronym for Separate Account and Commingled Fund investment vehicles. Sector Benchmark: A market index that serves as a proxy for a sector within an asset class. Sharpe Ratio: Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk -adjusted performance results in. Standard Deviation: A statistical measure of the range of a portfolio's performance; the variability of a return around its average return over a specified time period. Total Fund Benchmark: The policy benchmark for a complete asset pool that could consist of multiple investment mandates. Total Fund Composite: The aggregate of multiple portfolios within an asset pool or household. Tracking Error: A measure of standard deviation for a portfolio's investment performance, relative to the performance of an appropriate market benchmark. Treynor Ratio: A ratio that divides the excess return (above the risk free rate) by the portfolio's beta to arrive at a unified measure of risk adjusted return. It is generally used to rank portfolios, funds and benchmarks. A higher ratio is indicative of higher returns per unit of market risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing market risk. Up Market Capture: The ratio of average portfolio returns over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Upside Semi Deviation: A statistical calculation that measures the volatility of returns above an acceptable return. This return measure isolates the positive portion of volatility: the larger the number, the greater the volatility. Value: A diversified investment strategy that includes investment selections which tend to trade at a lower price relative to its dividends, earnings, and sales. Common attributes are stocks that include high dividend, low price -to -book ratio, and/or low price -to -earnings ratio. Worst Quarter: The lowest rolling quarterly return for a certain time period. Information Disclosures Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition andlor investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment. Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. The performance data shown reflects past performance, which does not guarantee future results. Investment return and principal will fluctuate so that an investor's shares when redeemed may be worth more or less than original cost. Please note, current performance may be higher or lower than the performance data shown. For up to date month -end performance information, please contact your Financial Advisor or visit the funds' company website. Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. The prospectus and, if available the summary prospectus, contains this and other information that should be read carefully before investing. Investors should review the information in the prospectus carefully. To obtain a prospectus, please contact your Financial Advisor or visit the funds' company website. Past performance is no guarantee of future results. Investing involves market risk, including possible loss of principal. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Small and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than those of larger, more established companies. Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds. The return of principal in bond funds, and in funds with significant bond holdings, is not guaranteed. International securities' prices may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets. Alternative investments, including private equity funds, real estate funds, hedge funds, managed futures funds, and funds of hedge funds, private equity, and managed futures funds, are speculative and entail significant risks that can include losses due to leveraging or\other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and/or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and risks associated with the operations, personnel and processes of the advisor. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk; and MLP interests in the real estate sector are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions. Mortgage backed securities also involve prepayment risk, in that faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield -to -maturity of a mortgage -backed security and prepayment risk includes the possibility that a fund may invest the proceeds at generally lower interest rates. Tax managed funds may not meet their objective of being tax -efficient. Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. High yield fixed income securities, also known as "junk bonds", are considered speculative, involve greater risk of default and tend to be more volatile than investment grade fixed income securities. Credit quality is a measure of a bond issuer's creditworthiness, or ability to repay interest and principal to bondholders in a timely manner. The credit ratings shown are based on security rating as provided by Standard & Poor's, Moody's and/or Fitch, as applicable. Credit ratings are issued by the rating agencies for the underlying securities in the fund and not the fund itself, and the credit quality of the securities in the fund does not represent the stability or safety of the fund. Credit ratings shown range from AAA, being the highest, to D, being the lowest based on S&P and Fitch's classification (the equivalent of Aaa and C, respectively, by Moody(s). Ratings of BBB or higher by S&P and Fitch (Baa or higher by Moody's) are considered to be investment grade -quality securities. If two or more of the agencies have assigned different ratings to a security, the highest rating is applied. Securities that are not rated by all three agencies are listed as "NR". "Alpha tilt strategies comprise a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward potentially outperforming the market in an effort to enhance overall investment returns. Tilt strategies are subject to significant timing risk and could potentially expose investors to extended periods of underperformance." Custom Account Index: The Custom Account Index is an investment benchmark based on your historical target allocations and/or manager selection that you may use to evaluate the performance of your account. The Custom Account index does take into consideration certain changes that may have occurred in your portfolio since the inception of your account, i.e., asset class and/or manager changes. However, in some circumstances, it may not be an appropriate benchmark for use with your specific account composition. For detailed report of the historical composition of this blend please contact your Financial Advisor. Peer Groups Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach. Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetrics.com/style-peer-groups Peer Group Ranking Methodology A percentile rank denotes the value of a product in which a certain percent of observations fall within a peer group. The range of percentile rankings is between 1 and 100, where 1 represents a high statistical value and 100 represents a low statistical value. The 30th percentile, for example, is the value in which 30% of the highest observations may be found, the 65th percentile is the value in which 65% of the highest observations may be found, and so on. Percentile rankings are calculated based on a normalized distribution ranging from 1 to 100 for all products in each peer group, where a ranking of 1 denotes a high statistical value and a ranking of 100 denotes a low statistical value. It is important to note that the same ranking methodology applies to all statistics, implying that a ranking of 1 will always mean highest value across all statistics. For example, consider a risk/return assessment using standard deviation as a measure of risk. A percentile ranking equal to 1 for return denotes highest return, whereas a percentile ranking of 1 for standard deviation denotes highest risk among peers. In addition, values may be used to demonstrate quartile rankings. For example, the third quartile is also known as the 75th percentile, and the median is the 50th percentile. Alternatives Graystone Consulting is a business of Morgan Stanley Smith Barney LLC. ("Morgan Stanley") This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. This information is being provided as a service of your Graystone Institutional Consultant and does not supersede or replace your Morgan Stanley customer statement. The information is as of the date(s) noted and subject to daily market fluctuation. Your interests in Alternative Investments, which may have been purchased through us, are generally not held here, and are generally not covered by SIPC. The information provided to you: 1) is included as a service to you, valuations for certain products may not be available; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ("IRA"), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley IRA; and 2) if your Alternative Investment positon(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by SIPC. Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds. Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek altemative-like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:• Loss of all or a substantial portion of the investment due to leveraging, short - selling, or other speculative practices;- Lack of liquidity in that there may be no secondary market for a fund;- Volatility of returns;- Restrictions on transferring interests in a fund;- Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; - Absence of information regarding valuations and pricing;- Complex tax structures and delays in tax reporting;- Less regulation and higher fees than mutual funds; and- Risks associated with the operations, personnel, and processes of the manager. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker - dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of the additional fees paid to a placement agent by an investor (for Morgan Stanley placement clients, a one-time upfront Placement Fee of up to 3%, and for Morgan Stanley investment advisory clients, an annual advisory fee of up to 2.5%), which would result in a substantial reduction in the returns if such fees were incorporated. For most investment advisory clients, the program account will be charged an asset -based wrap fee every quarter ("the Fee"). In general, the Fee covers investment advisory services and reporting. In addition to the Fee, clients will pay the fees and expenses of any funds in which their account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and impact the valuations. Clients must understand that these fees and expenses are an additional cost and will not be included in the Fee amount in the account statements. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, for an account with an initial value of $100,000 and a 2.5% annual fee, if the gross performance is 5% per year over a three year period, the compounding effect of the fees will result in a net annual compound rate of return of approximately 2.40% per year over a three year period, and the total value of the client's portfolio at the end of the three year period would be approximately $115,762.50 without the fees and $107,372.63 with the fees. Please see the applicable Morgan Stanley Smith Barney LLC Form ADV Part 2A for more information including a description of the fee schedule. It is available at www.moreanstanlev.com/ADV <httn://www.mor2anstanlev.com/ADV> <http://www.morganstanley.com/ADV> or from your Financial Advisor/Private Wealth Advisor. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker -dealer, not a bank. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. © 2018 Morgan Stanley Smith Barney LLC. Member SIPC. Money Market Funds You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at $1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency. City of Sebastian Police Officers' Retirement Plan Quarterly Performance Summary As of December 31, 2022 Graystone Consulting from Morgan Stanley Scott Owens, CFAe, CIMAo David Wheeler, GIVIM, CFPo, CRPSo Theodore J. (TJ) Loew, CFAo Managing Director - Wealth Management Managing Director - Wealth Management Vice President - Wealth Management Institutional Consulting Director Institutional Consulting Director Institutional Consulting Analyst Corporate Retirement Director Alternative Investment Director Theodore.Loew@msgraystone.com Impact Investing Director Corporate Retirement Director (813) 227-2088 Alternative Investment Director David.A.Wheeler@msgraystone.com Scott.Owens@msgraystone.com (813) 227-2178 (813)227-2027 City of Sebastian Police Officers' Retirement Plan Goal Review as of December 31, 2022 Goals: General Obiectives The primary investment objective of the City of Sebastian Police Officers' Retirement System is the preservation of invested capital. The secondary objective is to achieve moderate long term real growth of the assets while minimizing the volatility of returns. To achieve these objectives, the Board seeks to create a conservative, well diversified and balanced portfolio of equity, fixed income, and money market securities. The Board has determined that one or more outside investment managers shall be retained to assure all investments are managed in a prudent and professional manner and in compliance with the stated investment guidelines. Investment Obiectives Investment Objectives are intended to provide quantifiable benchmarks to measure and evaluate portfolio return and risk. Asset allocation requires a full market cycle to allow a diversified portfolio of investment managers to demonstrate their abilities. As a result, performance results will be measured over a full market cycle. Performance over shorter time periods will be monitored as a means of identifying the trend of results. The specific investment objectives of the City of Sebastian Police Officers' Retirement System are as follows: Primary Objective: To earn a total rate of return over the long term (a full market cycle) which exceeds the return of a Target Index. The Target Index for the City of Sebastian Police Officers' Retirement System is defined as: 16.25% Russell 1000 Value, 16.25% Russell 1000 Growth, 12.00% Russell 2500 Value, 8.00% Russell 2500 Growth, 5% MSCI EAFE (Net), 7.50% MSCI ACWI ex US (Net), 25% Bloomberg Barclays U.S. Aggregate, 5.00% Dow Jones Brookfield Infrastructure Composite, 5.00% NCREIF indexes. In addition, it is expected the total rate of return earned by the Fund and the returns earned by the stock, bond, and cash portfolios will rank above average when compared to a representative universe of other similarly managed portfolios. Secondary Objectives: A further goal of the City of Sebastian Police Officers' Retirement System shall be to achieve a return greater than the assumed actuarial rate of return over the longer term. This absolute return objective will be evaluated in the context of the prevailing investment market conditions. In addition, the Fund should earn a return greater than inflation, as measured by the Consumer Price Index, by 3.0% per year. Volatility: The volatility of the Funds total returns is expected to be similar to the Target Index and will be evaluated accordingly. (source: September2021 IPS) The price, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, it's accuracy cannot be guaranteed. Past performance is not a Graystone guarantee of future results. Page 2 Consulting g from MorganStantey City of Sebastian Police Officers' Retirement Plan Timeline Review as of December 31, 2022 Timeline: December 2022: ST Fixed Income Manager Search September 2022: International Growth Manager Search December 2021: Education Workshop September 2021: Investment Policy Statement March 2020: Replaced Large -Cap Growth Manager December 2020: • Removed: MLP • Large -Cap Growth Manager Search September 2020: • Investment Policy Statement • Large -Cap Growth Manager Search • International Growth Manager Search • Infrastructure Fund Search • Infrastructure Education March 2020: • Investment Policy Statement • Asset Allocation Study • Large -Cap Growth Manager Search September 2019: Large -Cap Growth Manager Search May 2019: Large -Cap Growth Manager Search December 2018: Fixed Income Manager Search October 2017: Added: Private Real Estate Fund July 2017: Diversified into the following accounts: • Large -Cap Value Manager • Large -Cap Growth Manager • SMID Value Manager • SMID Growth Manager • International Value Manager • International Growth Manager • MLP • Cash Account • December 2016: • Investment Policy Statement • Full Manager Search • Asset Allocation Study • September 2016: • Asset Allocation Study • Investment Policy Statement • June 2016: • Asset Allocation Study • Investment Policy Statement • January 2016: Investment Policy Statement • June 2015: Asset Allocation Study • March 2015: Asset Allocation Study • September 2014: Asset Allocation Study • March 2013: • Investment Policy Statement • Asset Allocation Study • Alts Education • December 2012: Asset Allocation Study • March 2011: Investment Policy Statement • January 2011: • Added: Domestic Equity Account • Added: International Equity Account • Added: Fixed Income Manager The price, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, it's accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 3 Graystone Consulting from MorganStantey City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2022 Quarter to Three Years Five Years Seven Years Ten Years Date Year to Date 12 Months (annualized) (annualized) (annualized) (annualized) S&P 500 Index 7.56 (18.11) (18.11) 7.66 9.42 11.48 12.56 Dow Jones Industrial Average 16.01 (6.86) (6.86) 7.32 8.38 12.15 12.30 Russell 3000 Index 7.18 (19.21) (19.21) 7.07 8.79 11.04 12.13 Russell 3000 Value Index 12.18 (7.98) (7.98) 5.88 6.50 9.07 10.16 Russell 3000 Growth Index 2.31 (28.97) (28.97) 7.32 10.45 12.55 13.75 Russell 1000 Index 7.24 (19.13) (19.13) 7.35 9.13 11.26 12.37 Russell 1000 Value Index 12.42 (7.54) (7.54) 5.96 6.67 9.12 10.29 Russell 1000 Growth Index 2.20 (29.14) (29.14) 7.79 10.96 12.95 14.10 Russell Midcap Index 9.18 (17.31) (17.31) 5.88 7.10 9.61 10.96 Russell Midcap Value Index 10.45 (12.03) (12.03) 5.82 5.72 8.73 10.11 Russell Midcap Growth Index 6.90 (26.72) (26.72) 3.85 7.64 9.96 11.41 Russell 2000 Index 6.23 (20.44) (20.44) 3.10 4.13 7.90 9.01 Russell 2000 Value Index 8.42 (14.48) (14.48) 4.70 4.13 8.23 8.48 Russell 2000 Growth Index 4.13 (26.36) (26.36) 0.65 3.51 7.09 9.20 to Date Energy 22.81 Industrials 19.23 Materials 15.05 Financials 13.61 Health Care 12.80 Consumer Staples 12.72 Utilities 8.64 Technology 4.74 Real Estate 3.82 Communication Services (1.38) Consumer Discretionary (10.18) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 4 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2022 ReLyional and Other Multi -Country Indices MSCI EAFE MSCI Europe MSCI Far East MSCI Pacific ex. Japan MSCI The World MSCI World ex. U.S. National Indices MSCI Hong Kong MSCI Ireland MSCI Japan MSCI Singapore ReLyional and Other Multi -Country Indices MSCI EM National Indices MSCI China MSCI Malaysia MSCI Taiwan MSCI Thailand U.S. Dollar Quarter to Year to 12 Months 3 Date Date Years 17.34 (14.45) (14.45) 0.87 19.34 (15.06) (15.06) 1.35 13.64 (14.85) (14.85) (0.84) 15.72 (5.94) (5.94) 1.61 9.89 (17.73) (17.73) 5.45 16.18 (14.29) (14.29) 1.27 Local Currency 5 Quarter to Year to 12 Months Years Date Date 1.54 8.78 (6.52) (6.52) 1.87 10.46 (7.97) (7.97) 0.39 4.74 (4.71) (4.71) 2.18 10.69 (1.67) (1.67) 6.69 7.57 (15.67) (15.67) 1.79 8.48 (6.48) (6.48) Years 4.12 3.71 4.66 2.52 6.54 4.42 4.32 4.57 3.09 4.02 N/A 4.52 18.21 (4.71) (4.71) (1.04) (0.29) 17.56 (4.61) (4.61) (0.99) (0.32) 21.49 (25.91) (25.91) (2.34) (0.73) 11.52 (21.06) (21.06) (0.69) 1.64 13.26 (16.31) (16.31) (0.63) 0.60 3.25 (4.10) (4.10) 6.01 3.83 N/A N/A N/A N/A N/A 4.01 (11.42) (11.42) (4.55) (1.82) U.S. Dollar Quarter to Year to 12 Months 3 Date Date Years 9.79 (19.74) (19.74) (2.34) D Years (1.03) quarter to x ear to 12 Months Date Date 6.66 (15.16) (15.16) a Years 0.50 1.66 13.53 (21.80) (21.80) (7.38) (4.40) 12.50 (20.58) (20.58) (7.21) (4.32) 14.03 (5.78) (5.78) (2.89) (3.35) 8.32 (0.37) (0.37) (0.46) (1.70) 9.69 (29.13) (29.13) 8.48 10.05 6.19 (21.27) (21.27) 9.38 10.76 16.12 5.24 5.24 (2.68) (0.84) 16.12 5.24 5.24 (2.68) (0.84) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Graystone Page 5 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2022 PeriodRived Tinenme % Returns for the Ending December 31, 2022 Quarter to Year to Date 12 Months Three Years Five Years Seven Years Ten Years Date (annualized) (annualized) (annualized) (annualized) U.S. Fixed Income 90-Day T-Bills 0.87 1.50 1.50 0.71 1.24 1.05 0.74 Barclays Aggregate 1.87 (13.01) (13.01) (2.71) 0.02 0.89 1.06 Barclays Credit 3.44 (15.26) (15.26) (2.86) 0.42 1.96 1.82 Barclays Govt/Credit 1.80 (13.58) (13.58) (2.57) 0.21 1.14 1.16 Barclays Government 0.72 (12.32) (12.32) (2.57) (0.06) 0.43 0.60 Barclays High Yield 4.17 (11.18) (11.18) 0.03 2.30 5.04 4.03 Barclays Intermediate Govt/Credit 1.54 (8.23) (8.23) (1.26) 0.73 1.12 1.12 Barclays Long Govt/Credit 2.61 (27.09) (27.09) (6.20) (1.21) 1.52 1.57 Barclays Mortgage Backed 2.14 (11.81) (11.81) (3.22) (0.53) 0.20 0.74 Barclays Municipal 4.10 (8.53) (8.53) (0.77) 1.25 1.69 2.13 Global Fixed Income Merrill Lynch Global High Yield 6.98 (13.24) (13.24) (1.69) 0.88 4.06 3.16 Barclays Global Treasury ex. US 7.12 (21.07) (21.07) (7.47) (3.98) (1.18) (2.01) Barclays Capital Majors ex. U.S. 7.12 (21.74) (21.74) (8.13) (4.25) (1.59) (2.42) Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 6 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Total Fund - Executive Summary as of December 31, 2022 Manager Performance Chart 20.0 10.0 0.0 ` ■ . ■ _ v 94 -10.0 -20.0 -30.0 Current Fiscal 1 3 5 7 10 Since Quarter YTD Year Years Years Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 7 10 Inception Quarter YTD Year Years Years Years Years 02/01/2011 Total Fund 6.26 6.26 -14.08 4.40 5.21 6.81 7.17 6.65 Policy Index 1 6.60 6.60 -14.75 3.56 5.14 6.78 7.33 7.23 Differences -0.34 -0.34 0.67 0.84 0.07 0.03 -0.16 -0.58 Historic Asset Growth Current Fiscal 1 3 5 7 10 Inception Quarter YTD Year Years Years Years Years 02/01/2011 Total Fund Beginning Market Value 18,483 18,483 23,271 17,352 14,445 11,928 9,029 7,730 Net Contributions -186 -186 -476 138 1,298 1,241 1,935 2,667 Fees/Expenses -35 -35 -125 -371 -600 -741 -904 -982 Income 206 206 510 1,273 2,004 2,646 3,350 3,765 Gain/Loss 953 953 -3,761 1,028 2,273 4,346 6,010 6,240 Ending Market Value 19,420 19,420 19,420 19,420 19,420 19,420 19,420 19,420 Modern Portfolio Statistics Manager Risk & Return 10.11 8.0 6.0 4.0 2.0 0.0 -4.0 -2.0 0.0 Total Fund 1 1 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Risk (Standard Deviation %) Q Policy Index 1 . 90-Day T-Bills Standard Maximum Up Down Sharpe Inception Return Beta Deviation Drawdown Capture Alpha Capture Ratio R-Squared Date Total Fund 6.65 10.36 0.98 -19.15 99.04 103.96 -0.40 0.61 0.96 02/01/2011 Policy Index 1 7.23 10.37 1.00 -20.02 100.00 100.00 0.00 0.66 1.00 02/01/2011 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 7 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Historic Returns as of D eoem ber 31, 2022 Manager vs Benchmark: Return As of Dec 2022 8 6 4 2 0 2 c P v -4 -6 -8 -10 -12 -14 1 Quarter Manager vs Benchmark: Return As of Dec 2022 Sebastian Police (Gross) Sebastian Police (Net) Sebastian Police Policy Index 1 Year 3 Years 5 Years 7 Years 10 Years Since Dec 31 2002 ■ Sebastian Police (Gross) Sebastian Police (Net) Sebastian Police Policy Index 1 QUARTER 1 YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS SINCE DEC 31 2002 6.26 (14.08) 4.40 5.21 6.81 7.17 6.10 6.07 (14.60) 3.74 4.49 6.12 6.52 5.43 6.60 (14.75) 3.56 5.14 6.78 7.33 6.57 The prices, quotes, or statistics contained heren hate been obtained from sources believed to be reliable, however, itswouracy cannot beguaranteed. Past performanceisnot a Graystone guarantee of future results Consulting Page 8 City of Sebastian Police Officers' Retirement Plan Sebastian Police (Gross) - Risk / Return Analysis as of D ecem ber 31, 2022 Manager Performance January 2018 - December 2022 155 150 145 \ 140 135 130 125 120 I v 115 110 105 100 _%�� // � II 95 v v 90 12/2017 12/2018 12/2019 12/2020 12/2021 12/2022 — Sebastian Police (Gross) Sebastian Police Policy Index Cumulative Excess Return vs. Benchmark 0 — -- -10 1 12/2017 12/2018 12/2019 12/2020 12/2021 12/2022 Risk & Return Measurements January 2018 - December 2022 RETURN EXCESS STANDARD BETA RETURN DEVIATION Risk / Return January 2018 - December 2022 6.0 5.5 5.0 4.5 4.0 E 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Standard Deviation (%) ■ Sebastian Police (Gross) Sebastian Police Policy Index ♦ FTSE 3-Month Treasury Bill MAXIMUM UP DOWN ALPHA SHARPE R- DRAWDOWN CAPTURE CAPTURE RATIO SQUARED Sebastian Police (Gross) 5.21 0.07 16.06 0.98 (19.15) 99.52 98.94 0.18 0.25 99.07 Sebastian Police Policy 5.14 0.00 16.40 1.00 (20.02) 100.00 100.00 0.00 0.24 100.00 Index Theprices, quotes, or statistics contained herein havebeen obtained from sources believed to be reliable, however, itsamuracy cannot beguaanteed. Past performanceisnot a Graystone guarantee of future results Consulting Page 9 City of Sebastian Police Officers' Retirement Plan Sebastian Police (Gross) - Risk / Return Analysis as of D ecem ber 31, 2022 Manager Performance January 2003 - December 2022 450 400 350 / 0 25/ 0 / 200 150 100 50 12/2002 12/2007 12/2012 12/2017 12/2022 - Sebastian Police (Gross) Sebastian Police Policy Index Cumulative Excess Return vs. Benchmark 0 -100 12/2002 12/2007 12/2012 12/2017 12/2022 Risk & Return Measurements January 2003 - December 2022 RETURN EXCESS STANDARD RETURN DEVIATION Sebastian Police (Gross) 6.10 (0.48) 10.17 Risk / Return January 2003 - December 2022 7.5 7.0 6.5 6.0 5.5 5.0 4.5 E 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 1 2 3 4 5 6 7 8 9 10 11 Standard Deviation ■ Sebastian Police (Gross) Sebastian Police Policy Index ♦ FTSE 3-Month Treasury Bill MAXIMUM UP DOWN SHARPE R- BETA DRAWDOWN CAPTURE CAPTURE ALPHA RATIO SQUARED 0.99 (22.97) 98.11 104.64 (0.39) 0.48 97.34 Sebastian Police Policy 6.57 0.00 10.12 1.00 (21.59) 100.00 100.00 0.00 0.53 100.00 Index Theprices, quotes, or statistics contained herein havebeen obtained from sources believed to be reliable, however, itsamuracy cannot beguaanteed. Past performanceisnot a Graystone guarantee of future results Consulting Page 10 City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2022 Executive Summary Global Equity $12,949.9K (66.7%) - 40.0% - 70.0% Fixed Income $3,427.3K (17.6%) - 20.0% - 35.0% Alternatives $2,042.7K (10.50/6) - 0.0% - 20.0% Receipt & Disbursement $999.8K (5.1°/a) 0.0% - 5.0% 25.0% 10.0% 65.0% 0.0% 15.0% 30.0% 45.0% 60.0% 75.0% 90.0% Policy 0 Target . In Policy . Outside Policy The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 11 105.0% Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2022 Executive Summary Highland - Large Cap Value $3,961.8K (20.4%) 12.5% - 22.5% Polen - Large Cap Growth $1,240.2K (6.4%) 6.2% - 11.2% iShares - Russell 1000 Growth ETF $1,432.OK (7.4%) 6.2% - 11.2% Boston Partners - SMID Value $2,468.6K (12.7%) 2.5% - 15.0% Fiera Capital - SMID Growth $1,442.4K (7.4%) 2.5% - 10.5% Highland - Intl Value $963.4K (5.0%) 2.5% - 7.5% Renaissance - International Growth $1,441.5K (7.4%) 5.0% - 10.0% Highland - Fixed Income $3,427.3K (17.6%) 20.0% - 35.0% Intercontinental - Private Real Estate $891.5K (4.60/.) 0.0% - 10.0% Lazard - Global Infrastructure $1,151.2K (5.9%) 0.0% - 10.0% Receipt & Disbursement $999.8K (5.1%) 0.0% - 5.0% I1 0% -OF-1507/. 0.0% 0.0% 6.0% 12.0% Policy 16.3% 1 18.0% 25.0% 24.0% 30.0% 36.0% 42.0% 48.0% Target . In Policy . Outside Policy The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 12 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Large Cap Value - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 12.0 20.0 10.0 10.0 9 0.0 ■ ■ 8.0 -10.0 0 0 6.0 -20.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 4.0 Manager Annualized Performance 2.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Highland - Large Cap Value 12.19 12.19 -7.39 5.64 6.54 7.67 0.0 Russell 1000 Value 12.42 12.42 -7.54 5.96 6.67 7.51 Differences -0.23 -0.23 0.15 -0.32 -0.13 0.16 Historic Asset Growth -2.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 3 5 Inception Risk (Standard Deviation %) Quarter YTD Year Years Years 08/01/2017 Highland - Large Cap Value Highland - Large Cap Value Q Russell 1000 Value Beginning Market Value 3,536 3,536 4,560 3,813 3,761 4,342 Net Contributions - - -245 -516 -959 -1,910 . 90-Day T-Bills Fees/Expenses -4 -4 -21 -58 -105 -105 Income 24 24 98 274 467 508 Gain/Loss 407 407 -431 448 798 1,126 Ending Market Value 3,962 3,962 3,962 3,962 3,962 3,962 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Large Cap Value 7.67 18.56 1.02 -28.00 101.96 101.58 0.06 0.43 0.99 08/01/2017 Russell 1000 Value 7.51 18.04 1.00 -26.73 100.00 100.00 0.00 0.43 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 13 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Polen - Large Cap Growth - Executive Summary as of December 31, 2022 Manager Performance Chart 20.0 0.0 - -20.0 v _ -40.0 -60.0 Current Fiscal 1 Since Quarter YTD Year Inception Manager Annualized Performance Current Fiscal 1 Since Quarter YTD Year Inception Polen - Large Cap Growth -0.18 -0.18 -37.51 -14.10 Russell 1000 Gr 2.20 2.20 -29.14 -6.09 Differences -2.38 -2.38 -8.37 -8.01 Historic Asset Growth Current Fiscal 1 Since Quarter YTD Year Inception Polen - Large Cap Growth Beginning Market Value 1,245 1,245 2,000 1,677 Net Contributions - - -2 -47 Fees/Expenses -2 -2 -10 -17 Income 2 2 6 11 Gain/Loss -4 -4 -754 -384 Ending Market Value 1,240 1,240 1,240 1,240 Modern Portfolio Statistics Return Standard Beta Deviation Polen - Large Cap Growth -14.10 23.46 1.00 Russell 1000 Gr -6.10 22.89 1.00 Inception Date 04/01/2021 Manager Risk & Return 8.0 4.0 0.0 -4.0 0 -8.0 - -12.0 -16.0 -20.0 24 0 ■ -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Inception Risk (Standard Deviation %) Date 04/01/2021 Polen - Large Cap Growth O Russell 1000 Gr . 90-Day T-Bills Maximum Up Down Alpha Sharpe R-Squared Inception Drawdown Capture Capture Ratio Date -38.14 83.94 109.18 -8.32 -0.56 0.96 04/01/2021 -30.66 100.00 100.00 0.00 -0.20 1.00 04/01/2021 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 14 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan iShares - Russell 1000 Growth ETF - Executive Summary as of December 31, 2022 Manager Performance Chart 15.0 0.0 r v -15.0 -30.0 -45.0 Current Fiscal 1 Since Quarter YTD Year Inception Manager Annualized Performance Current Fiscal 1 Since Inception Quarter YTD Year Inception Date iShares - Russell 1000 Growth ETF 2.36 2.36 -29.17 -4.74 01/01/2021 Russell 1000 Gr 2.20 2.20 -29.14 -4.92 Differences 0.16 0.16 -0.03 0.18 Historic Asset Growth Current Fiscal 1 Since Inception Quarter YTD Year Inception Date iShares - Russell 1000 Growth ETF 01/01/2021 Beginning Market Value 1,399 1,399 2,022 1,582 Net Contributions - - - -4 Fees/Expenses - - - - Income 8 8 13 23 Gain/Loss 25 25 -603 -169 Ending Market Value 1,432 1,432 1,432 1,432 Modern Portfolio Statistics Manager Risk & Return 4.0 0.0 0 -2.0 4.0 6.0 -8.0 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) iShares - Russell 1000 Growth ETF p Russell 1000 Gr 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date iShares - Russell 1000 Growth ETF -4.74 21.53 1.00 -30.80 100.09 99.49 0.20 -0.15 1.00 01/01/2021 Russell 1000 Gr -4.91 21.46 1.00 -30.66 100.00 100.00 0.00 -0.16 1.00 01/01/2021 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 15 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Boston Partners - SMID Value - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 o.o 15.0 8.0 0.0 ■ ❑ -15.0 6.0 0 -30.0 4.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 2.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Boston Partners - SMID Value 9.93 9.93 -9.17 6.90 5.78 6.71 0.0 Russell 2500 VL 9.21 9.21 -13.09 5.21 4.75 5.77 Differences 0.72 0.72 3.92 1.69 1.03 0.94 Historic Asset Growth -2.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Current Fiscal 1 3 5 Inception u Risk (Standard Deviation /o) Quarter YTD Year Years Years 08/01/2017 Boston Partners - SMID Value Boston Partners - SMID Value O Russell 2500 VL Beginning Market Value 2,254 2,254 2,849 897 720 672 Net Contributions -3 -3 -100 1,147 1,267 1,266 . 90-Day T-Bills Fees/Expenses -6 -6 -24 -55 -71 -73 Income 14 14 48 104 130 136 Gain/Loss 210 210 -304 376 424 467 Ending Market Value 2,469 2,469 2,469 2,469 2,469 2,469 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Boston Partners - SMID Value 6.71 23.78 1.05 -38.80 105.79 102.51 0.87 0.35 0.97 08/01/2017 Russell 2500 VL 5.77 22.29 1.00 -34.64 100.00 100.00 0.00 0.31 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy guarantee of future results. cannot be guaranteed. Past performance is not a Graystone Consulting Page 16 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Fiera Capital SMID Growth - Executive Summary as of December 31, 2022 Manager Performance Chart 40.0 20.0 0.0 AN- 94 -20.0 -40.0 -60.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception Manager Annualized Performance Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Fiera Capital - SMID Growth 5.09 5.09 -21.46 10.33 10.23 11.78 Russell 2500 GR 4.72 4.72 -26.21 2.88 5.97 7.56 Differences 0.37 0.37 4.75 7.45 4.26 4.22 Historic Asset Growth Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 Fiera Capital - SMID Growth Beginning Market Value 1,375 1,375 1,821 868 750 669 Net Contributions - - 28 321 296 295 Fees/Expenses -3 -3 -12 -32 -44 -45 Income 3 3 13 42 52 54 Gain/Loss 67 67 -407 243 389 470 Ending Market Value 1,442 1,442 1,442 1,442 1,442 1,442 Modern Portfolio Statistics Manager Risk & Return 18.0 15.0 12.0 0 9.0 a 6.0 3.0 0.0 -3.0 12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Fiera Capital - SMID Growth Q Russell 2500 GR . 90-Day T-Bills Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Fiera Capital - SMID Growth 11.78 21.41 0.94 -26.32 100.88 86.18 4.36 0.57 0.95 08/01/2017 Russell 2500 GR 7.56 22.15 1.00 -32.84 100.00 100.00 0.00 0.39 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Consulting Page 17 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - International Value - Executive Summary as of December 31, 2022 Manager Performance Chart 45.0 30.0 15.0 v -15.0 -30.0 Current Fiscal 1 Quarter YTD Year Manager Annualized Performance Current Fiscal Quarter YTD Highland - Intl Value 16.37 16.37 MSCI EAFE Net 17.34 17.34 Differences -0.97 -0.97 Historic Asset Growth Current Fiscal Quarter YTD Highland - Intl Value Beginning Market Value 829 829 Net Contributions - - Fees/Expenses -1 -1 Income 5 5 Gain/Loss 130 130 Ending Market Value 963 963 Modern Portfolio Statistics 3 5 Since Years Years Inception 1 3 5 Inception Year Years Years 08/01/2017 -16.70 -0.76 0.72 1.69 -14.45 0.87 1.54 2.66 -2.25 -1.63 -0.82 -0.97 1 3 5 Inception Year Years Years 08/01/2017 1,076 802 740 701 85 214 239 239 -5 -13 -21 -21 22 69 106 ill -215 -108 -100 -66 963 963 963 963 Manager Risk & Return 3.3 .0 2.- 2.4 Z 2.1 1.8 1.5 1.2 0.9 0.6 I 1 1 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Risk (Standard Deviation %) Highland - Intl Value Q MSCI EAFE Net . 90-Day T-Bills 24.0 28.0 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Intl Value 1.69 19.49 1.11 -28.71 106.85 110.34 -0.88 0.12 0.91 08/01/2017 MSCI EAFE Net 2.66 16.76 1.00 -27.30 100.00 100.00 0.00 0.17 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 18 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Renaissance - International Growth - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 30.0 3.6 15.0 3.0 ? 0.0 2.4 -15.0 1.8 0 1.2 - -30.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception a 0.6 - Manager Annualized Performance 0.0 ■ Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 08/01/2017 0.6 Renaissance - International Growth 15.04 15.04 -17.00 -0.56 -1.03 -0.21 MSCI AC World ex US Net 14.28 14.28 -16.00 0.07 0.88 2.17 Differences 0.76 0.76 -1.00 -0.63 -1.91 -2.38 Historic Asset Growth -1.8 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 3 5 Inception u Risk (Standard Deviation /o) Quarter YTD Year Years Years 08/01/2017 Renaissance - International Growth Renaissance - International Growth O MSCI AC World ex US Net Beginning Market Value 1,255 1,255 1,580 1,134 1,056 1,016 Net Contributions -1 -1 165 393 521 521 . 90-Day T-Bills Fees/Expenses -2 -2 -10 -25 -38 -40 Income 4 4 32 89 139 146 Gain/Loss 185 185 -327 -150 -237 -201 Ending Market Value 1,442 1,442 1,442 1,442 1,442 1,442 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Renaissance - International Growth -0.21 19.12 1.13 -33.88 107.99 118.58 -2.28 0.02 0.94 08/01/2017 MSCI AC World ex US Net 2.17 16.47 1.00 -27.79 100.00 100.00 0.00 0.14 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained guarantee of future results. from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 19 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Highland - Fixed Income - Executive Summary as of December 31, 2022 Manager Performance Chart 8.0 Manager Risk & Return .8 0.0 1.5 E -8.0 1.2 -16.0 0.9 0 -24.0 0.6 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 0.3 Current Fiscal 1 3 5 Inception 0.0- Quarter YTD Year Years Years 08/01/2017 Highland - Fixed Income 0.75 0.75 -10.29 -0.92 1.08 1.16 -0.3 Barclays Aggregate 1.87 1.87 -13.01 -2.71 0.02 0.17 Differences -1.12 -1.12 2.72 1.79 1.06 0.99 Historic Asset Growth Current Quarter Highland - Fixed Income Beginning Market Value 4,323 Net Contributions -925 Fees/Expenses -3 Income 39 Gain/Loss -6 Ending Market Value 3,427 Modern Portfolio Statistics Fiscal 1 3 5 Inception YTD Year Years Years 08/01/2017 4,323 4,547 3,898 3,904 3,980 -925 -608 -262 -538 -650 -3 -14 -39 -74 -74 39 123 358 598 658 -6 -622 -527 -463 -487 3,427 3,427 3,427 3,427 3,427 -0.6 1 1 -2.4 -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 Risk (Standard Deviation %) Highland - Fixed Income O Barclays Aggregate . 90-Day T-Bills 7.2 Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Highland - Fixed Income 1.16 4.89 0.78 -12.96 89.19 72.35 1.05 0.01 0.60 08/01/2017 Barclays Aggregate 0.17 4.87 1.00 -17.18 100.00 100.00 0.00 -0.19 1.00 08/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its guarantee of future results. accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 20 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Intercontinental - Private Real Estate - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 24.0 15.0 16.0 8.0 12.0 v 94 0.0 or ■ 9.0 -8.0 0 -16.0 6.0 Current Fiscal 1 3 5 Since Quarter YTD Year Years Years Inception p4 Manager Annualized Performance 3.0 Current Fiscal 1 3 5 Inception Quarter YTD Year Years Years 10/01/2017 Intercontinental - Private Real Estate -6.01 -6.01 8.33 11.09 10.84 10.88 0.0 NCREIF Property Idx -3.50 -3.50 5.51 8.06 7.46 7.46 Differences -2.51 -2.51 2.82 3.03 3.38 3.42 Historic Asset Growth -3.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Current Fiscal 1 3 5 Inception Risk (Standard Deviation %) Quarter YTD Year Years Years 10/01/2017 Intercontinental - Private Real Estate Intercontinental - Private Real Estate O NCREIF Property Idx Beginning Market Value 956 956 848 733 115 112 Net Contributions -4 -4 -18 -51 450 450 . 90-Day T-Bills Fees/Expenses -3 -3 -9 -45 -65 -65 Income - - - - - - Gain/Loss -57 -57 71 255 392 395 Ending Market Value 891 891 891 891 891 891 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Intercontinental - Private Real Estate 10.88 7.46 1.37 -6.01 143.77 134.19 0.58 1.25 0.87 10/01/2017 NCREIF Property 1dx 7.46 5.09 1.00 -3.50 100.00 100.00 0.00 1.18 1.00 10/01/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy guarantee of future results. cannot be guaranteed. Past performance is not a Graystone Consulting Page 21 g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Lazard - Global Infrastructure - Executive Summary as of December 31, 2022 Manager Performance Chart Manager Risk & Return 16.0 t 2.0 8.0 � 10.0 0 0.0 8.0 -8.0 6.0 0 -16.0 4.0 Current Fiscal 1 Since Quarter YTD Year Inception p4 Manager Annualized Performance 2.0 Current Fiscal 1 Since Inception 0.0 Quarter YTD Year Inception Date Lazard - Global Infrastructure 9.67 9.67 -1.30 8.77 01/01/2021 -2.0 DJ Brookfield Gbl Infra Comp TR 9.38 9.38 -4.91 6.94 Differences 0.29 0.29 3.61 1.83 Historic Asset Growth -40 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Current Fiscal 1 Since Inception Risk (Standard Deviation %) Quarter YTD Year Inception Date Lazard - Global Infrastructure 01/01/2021 ■ Lazard - Global Infrastructure O DJ Brookfield Gbl Infra Comp TR Beginning Market Value 1,050 1,050 1,166 973 Net Contributions - - - - . 90-Day T-Bills Fees/Expenses - - - - Income 107 107 154 223 Gain/Loss -5 -5 -169 -44 Ending Market Value 1,151 1,151 1,151 1,151 Modern Portfolio Statistics Return Standard Beta Maximum Up Down Alpha Sharpe R-Squared Inception Deviation Drawdown Capture Capture Ratio Date Lazard - Global Infrastructure 8.77 14.57 0.79 -12.82 85.66 72.99 3.07 0.60 0.86 01/01/2021 DJ Brookfield Gbl Infra Comp TR 6.92 17.02 1.00 -17.19 100.00 100.00 0.00 0.43 1.00 01/01/2021 The prices, quotes, or statistics contained herein have been obtained guarantee of future results. from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone Consulting Page 22 g from Morgan Stanley City of Sebastian Police Officers' Retirement System Compliance Checklist as of December 31, 2022 Concentration Foreign Securities Concentration Limit Yes Issuer Concentration in Equity (% of Shares Outstanding) Yes Issuer Concentration in Equity (% of Total Porfolio) Yes Fixed Income Concentration in Any Single Issuer (excl. U.S. Gov't/Agency, Mutual Funds, and ETFs) Yes Issuer Concentration in CMO's (% of Fixed Income) Yes Credit Rating/Maturity & Duration Min Commercial Paper ST Rating (P-3/A-3/F3) Yes Min Corporate Bonds and ABS LT Rating (BBB-/Baa3/BBB-) No Min Municipal Bonds LT Rating (A-/A3/A-) Yes Min Non -agency CMOs and MBS LT Rating (AAA/Aaa/AAA) Yes Commercial Paper Duration (Years from settle to final maturity) Yes Allocation Total Equity Allocation within specified range Yes Large Cap Value Allocation within specified range Yes Large Cap Growth Allocation within specified range Yes Small/Mid Cap Value Allocation within specified range Yes Small/Mid Cap Growth Allocation within specified range Yes International Value Allocation within specified range Yes International Growth Allocation within specified range Yes Fixed Income Allocation within specified range Yes Core Fixed Income Allocation within specified range No Total Alternatives within specified range Yes Infrastructure Allocation within specified range Yes Private Real Estate Allocation within specified range Yes Prohibited Investments Is the portfolio compliant with the list of prohibited investments? No Permitted Investments Is the portfolio compliant with the list of permitted investments? No 1. Sebastian Police account minimum rating is BBB-. Highland FI holds 6 positions (5 ABS, 1 Corporate Bond) that are not rated. 2. Sebastian Police allows MBS and CMOs but they must be rated AAA. Highland FI holds a MBS, 92258RAA4, VCC 213 A, that is not rated. 3. Core Fixed Income range is 20%-35%. Was 17.591 %. 4. Unilever ADR is prohibited due to being on the PFIA list of scrutinized companies that boycott Israeal. Retirement System's Board has reviewed and their position is the Israel list does not apply. Under review with MS legal to confirm before removing from list. 5. Highland FI holds a Canadian provincial bond that does not appear to be permitted per the IPS. 6. MBS and CMOs are permissible but must be planned amortization class. 3 Securities in Highland FI are not PACs. The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, Graystone the accuracy cannot be guaranteed. Consulting Page 23 from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2022 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 10 Since Inception n /o Value To YTD YTD Year Years Years Years Years Inception Date ($000) Date Total Fund Total Fund (net) I 100.00 I 6.07 (43) I: -14.60 (69) I 6.07 (43) I: -14.60 (69) 1 3.74 (48) 4.49 (69) 6.12 (77) 6.52 (70) 02/01/2011 6.02 (86) Policy Index 1 6.60 (28) -14.75 (72) 6.60 (28) -14.75 (72) 3.56 (51) 5.14 (45) 6.78 (50) 7.33 (34) 7.23 (27) All Public Plans < $1B-Total Fund Median 5.78 -13.39 5.78 -13.39 3.57 5.03 6.78 7.04 6.83 All Public Plans -Total Fund Median 5.66 -12.87 5.66 -12.87 3.94 5.16 6.91 7.13 6.93 Domestic Equity Highland - Large Cap Value 3,962 20.40 12.19 (60) -7.39 (69) 12.19 (60) -7.39 (69) 5.64 (89) 6.54 (82) N/A N/A 7.67 (82) 08/O1/2017 Highland - Large Cap Value (net) 12.06 (62) -7.84 (70) 12.06 (62) -7.84 (70) 5.13 (93) 5.95 (89) N/A N/A 7.12 (89) Russell 1000 Value 12.42 (56) -7.54 (70) 12.42 (56) -7.54 (70) 5.96 (86) 6.67 (81) N/A N/A 7.50 (84) IM U.S. Large Cap Value Equity (SA+CF) Median 12.75 -5.44 12.75 -5.44 8.06 8.11 N/A N/A 9.22 Polen - Large Cap Growth ' 1,240 6.39 -0.18 (90) -37.51 (91) -0.18 (90) -37.51 (91) N/A N/A N/A N/A -14.10 (86) 04/01/2021 Polen - Large Cap Growth (net) -0.34 (90) -37.93 (92) -0.34 (90) -37.93 (92) N/A N/A N/A N/A -14.60 (87) Russell 1000 Gr 2.20 (73) -29.14 (49) 2.20 (73) -29.14 (49) N/A N/A N/A N/A -6.09 (40) IM U.S. Large Cap Growth Equity (SA+CF) Median 3.91 -29.57 3.91 -29.57 N/A N/A N/A N/A -7.84 iShares - Russell 1000 Growth ETF 1,432 7.37 2.36 (58) -29.17 (33) 2.36 (58) -29.17 (33) = N/A N� N/A -4.74 (25) 01/01/2021 iShares - Russell 1000 Growth ETF (net) 2.36 (58) -29.17 (33) 2.36 (58) -29.17 (33) N/A N/A N/A N/A -4.74 (25) Russell 1000 Gr 2.20 (61) -29.14 (33) 2.20 (61) -29.14 (33) N/A N/A N/A N/A -4.92 (28) IM U.S. Large Cap Growth Equity (MF) Median 2.74 -30.71 2.74 -30.71 N/A N/A N/A N/A -7.30 Boston Partners - SMID Value 2,469 12.71 9.93 (66) -9.17 (41) 9.93 (66) -9.17 (41) 6.90 (52) 5.78 (64) N/A N/A 6.71 (59) 08/O1/2017 Boston Partners - SMID Value (net) 9.69 (69) -9.98 (46) 9.69 (69) -9.98 (46) 5.91 (66) 4.72 (83) N/A N/A 5.69 (83) Russell 2500 VL 9.21 (75) -13.09 (66) 9.21 (75) -13.09 (66) 5.21 (74) 4.75 (82) N/A N/A 5.76 (83) IM U.S. SMID Cap Value Equity (SA+CF) Median 10.45 -10.53 10.45 -10.53 7.08 6.75 N/A N/A 7.86 Fiera Capital - SMID Growth _ 1,442 7.43 5.09 (48) -21.46 (14) 5.09 (48) -21.46 (14) 10.33 (22) 10.23 (47) N/A N/A 11.78 (37) 08/01/2017 Fiera Capital - SMID Growth (net) 4.91 (50) -22.05 (19) 4.91 (50) -22.05 (19) 9.50 (24) 9.40 (51) N/A N/A 10.98 (44) Russell 2500 GR 4.72 (56) -26.21 (34) 4.72 (56) -26.21 (34) 2.88 (84) 5.97 (86) N/A N/A 7.55 (84) IM U.S. SMID Cap Growth Equity (SA+CF) Median 4.90 -28.21 4.90 -28.21 6.41 9.49 N/A N/A 10.59 Highland - Intl Value IF 963 4.96 16.37 (65) -16.70 (82) 16.37 (65) -16.70 (82) -0.76 (85) 0.72 (71) N/A N/A 1.69 (73) 08/01/2017 Highland - Intl Value (net) 16.24 (67) -17.11 (85) 16.24 (67) -17.11 (85) -1.21 (89) 0.21 (78) N/A N/A 1.21 (79) MSCI EAFE Net 17.34 (55) -14.45 (74) 17.34 (55) -14.45 (74) 0.87 (62) 1.54 (57) N/A N/A 2.66 (58) MSCI EAFE VL Net 19.64 (25) -5.58 (17) 19.64 (25) -5.58 (17) 0.65 (65) 0.17 (78) N/A N/A 1.20 (79) IM International Large Cap Value Equity (SA+CF) Median 17.70 -8.99 17.70 -8.99 1.47 1.78 N/A N/A 2.91 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Graystone Page 24 Consulting g from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2022 Allocation Performance(%) Market Quarter Fiscal 1 3 5 7 10 Since Inception Value % To YTD YTD Year Years Years Years Years Inception Date ($000) Date Renaissance - International Growth ad=1,442 7.42 15.04 (28) -17.00 (20) 15.04 (28) -17.00 (20) -0.56 (81) -1.03 (100) N/A N/A -0.21 (100) 08/O1/2017 Renaissance - International Growth (net) 14.87 (33) -17.52 (26) 14.87 (33) -17.52 (26) -1.16 (86) -1.65 (100) N/A N/A -0.80 (100) MSCI AC World ex US Net 14.28 (44) -16.00 (15) 14.28 (44) -16.00 (15) 0.07 (80) 0.88 (86) N/A N/A 2.17 (90) IM International Large Cap Growth Equity (SA+CF) Median 13.91 -23.82 13.91 -23.82 1.87 3.15 N/A N/A 4.50 Highland -Fixed Income 3,427 17.65 0.75 (92) -10.29 (55) 0.75 (92) -10.29 (55) -0.92 (56) 1.08 (55) N/A N/A 1.16 (53) 08/O1/2017 Highland - Fixed Income (net) 0.68 (94) -10.56 (56) 0.68 (94) -10.56 (56) -1.22 (61) 0.70 (72) N/A N/A 0.82 (72) Barclays Aggregate 1.87 (54) -13.01 (75) 1.87 (54) -13.01 (75) -2.71 (89) 0.02 (90) N/A N/A 0.17 (94) IM U.S. Fixed Income (SA+CF) Median 1.99 -9.49 1.99 -9.49 -0.57 1.20 N/A N/A 1.21 Intercontinental - Private Real Estate 891 4.59 -6.01 8.33 -6.01 M11.09 10.84 N/A N/A 10.88 10/O1/2017 Intercontinental - Private Real Estate (net) -6.34 7.32 -6.34 7.32 9.07 8.99 N/A N/A 9.06 NCREIF Property Idx -3.50 5.51 -3.50 5.51 8.06 7.46 N/A N/A 7.46 Barclays Aggregate 1.87 -13.01 1.87 -13.01 -2.71 0.02 N/A N/A 0.10 Lazard -Global Infrastructure 1,151 5.93 9.67 (60) -1.30 (4) _ 9.67 (60) -1.30 (4) __Jjjk N/A N/A N/A 8.77 (2) 01/01/2021 Lazard - Global Infrastructure (net) 9.67 (60) -1.30 (4) 9.67 (60) -1.30 (4) N/A N/A N/A N/A 8.77 (2) DJ Brookfield Gbl Infra Comp TR 9.38 (72) -4.91 (24) 9.38 (72) -4.91 (24) N/A N/A N/A N/A 6.94 (3) IM Global Infrastructure (MF) Median 9.76 -6.73 9.76 -6.73 N/A N/A N/A N/A 4.76 Mlllm Receipt & Disbursement 1,000 5.15 0.35 0.46 0.35 0.46 0.25 0.75 N/A N/A 0.86 08/01/2017 90-Day T-Bills 0.87 1.50 0.87 1.50 0.71 1.24 N/A N/A 1.23 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 25 Graystone Consulting from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2022 Current Fiscal 1 3 5 7 10 Since Inception Quarter YTD Year Years Years Years Years Inception Date Total Fund Domestic Equity 11 I. I r 01/31/2011 Highland - Large Cap Value 20.40 12.06 12.06 -7.99 5.71 6.30 N/A N/A 7.88 07/31/2017 Polen - Large Cap Growth 6.39 -0.34 -0.34 -37.94 N/A N/A N/A N/A -13.97 03/15/2021 iShares - Russell 1000 Growth ETF 7.37 2.36 2.36 -29.17 N/A N/A N/A N/A -4.72 12/31/2020 Boston Partners - SMID Value 12.71 9.70 9.70 -10.03 7.57 6.64 N/A N/A 7.13 07/31/2017 Fiera Capital - SMID Growth 11-mingtinnal 7.43 4.91 4.91 -22.00 7.32 7.99 N/A N/A 9.48 07/31/2017 Equity Highland - Intl Value 4.96 16.24 16.24 -17.10 -1.94 -0.38 N/A N/A 0.56 07/31/2017 Renaissance - International Growth 7.42 14.88 14.88 -17.48 -2.16 -2.19 N/A N/A -1.46 07/31/2017 IncomeFixed Highland -Fixed Income 17.65 0.70 0.70 -10.64 -1.67 0.32 N/A N/A 0.47 07/31/2017 w. Intercontinental - Private Real Estate 4.59 -6.33 -6.33 7.42 9.03 9.03 N/A N/A 9.06 10/15/2017 Lazard - Global Infrastructure 5.93 9.67 9.67 -1.30 N/A N/A N/A N/A 8.77 12/31/2020 Receipt & Disbursement 5.15 -2.80 -2.80 -9.17 -7.59 -6.60 N/A N/A -6.22 07/31/2017 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a Graystone guarantee of future results. Consulting Page 26 from Morgan Stanley City of Sebastian Police Officers' Retirement Plan Policy Index History As of December 31, 2022 Policy Feb-2011 S&P 500 Total Return 48.00 Barclays Govt/Credit Bond 49.00 90-Day T-Bills 3.00 Jul-2011 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jan-2016 S&P 500 Total Return 50.00 Barclays Aggregate 40.00 MSCI EAFE Net 10.00 Jul-2017 Russell 1000 Value 21.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 21.25 Russell 2500 VL 5.00 Russell 2500 GR 5.00 MSCI AC World ex US Net 7.50 Alerian MLP Index 5.00 NCREIF Property Idx 5.00 Jan-2021 Russell 1000 Value 16.25 Barclays Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Gr 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI AC World ex US Net 7.50 DJ Brookfield Gbl Infra Comp TR 5.00 NCREIF Property Idx 5.00 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 27 Graystone Consulting from Morgan Stanley Important Notes About This Report PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. ACTUAL INDIVIDUAL ACCOUNT RESULTS WILL DIFFER FROM THE PERFORMANCE SHOWN IN THIS REPORT. INVESTMENT DECISIONS: Do not use this report as the sole basis for investment decisions. Do not select an allocation, investment disciplines or investment managers/funds based on performance alone. Consider, in addition to performance results, other relevant information about each investment manager or fund, as well as matters such as your investment objectives, risk tolerance and investment time horizon. SOURCE OF PERFORMANCE INFORMATION FOR INVESTMENT MANAGERS AVAILABLE IN CONSULTING AND EVALUATION SERVICES OR SELECT UMA: Each investment manager included in this report that participates in one or more of the Consulting and Evaluation Services or Select UMA programs ("Programs") has a track record of investing assets in the relevant investment discipline. The investment manager's gross performance track record shown in this report consists of its gross performance in either the Morgan Stanley or the Smith Barney form of the Select UMA program (if that investment manager was in the Select UMA program) for periods for which sufficient data is available. If the strategy or similar strategies are available in both the Morgan Stanley and Smith Barney forms of the program, this profile presents the composite for the strategy that is closest to the strategy currently offered in the Select UMA program. If both strategies are equally close, the profile shows the longer of the two composites. For other periods, the gross performance track record is provided by the investment manager and consists of accounts managed by the investment manager in the same or a similar investment discipline, whether at Morgan Stanley or elsewhere (and may include institutional accounts, retail accounts and/or pooled investment vehicles such as mutual funds). Morgan Stanley Smith Barney LLC offers investment program services through a variety of investment programs, which are opened pursuant to written client agreements. Each program offers investment managers, funds and features that are not available in other programs; conversely, some investment managers, funds or investment strategies may be available in more than one program. Morgan Stanley's investment advisory programs may require a minimum asset level and, depending on a client's specific investment objectives and financial position, may not be appropriate for the client. Please see the applicable program disclosure document for more information, available at www.morganstanley.com/ADV or from your Financial Advisor. The investment management services of Morgan Stanley Smith Barney LLC and investment vehicles managed by Morgan Stanley Smith Barney LLC or its affiliates are not guaranteed and could result in the loss of value to your account. You should note that investing in financial instruments carries with it the possibility of losses and that a focus on above -market returns exposes the portfolio to above -average risk. Performance aspirations are not guaranteed and are subject to market conditions. CRC 5082012 11/4/2022 Graystone Page 28 Consulting Page Important Notes About This Report (Cont'd) Generally, investment advisory accounts are subject to an annual asset -based fee (the "Fee") which is payable monthly in advance (some account types may be billed differently). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor. In addition, each account that is invested in a program that is eligible to purchase certain investment products, such as mutual funds, will also pay a Platform Fee (which is subject to a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program may also pay a separate Sub -Manager fee, if applicable. If your account is invested in mutual funds or exchange traded funds (collectively "funds"), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund's share price. These fees and expenses are an additional cost to you and would not be included in the Fee amount in your account statements. The advisory program you choose is described in the applicable Morgan Stanley Smith Barney LLC ADV Brochure, available at www.morganstanley.com/ADV. Morgan Stanley or Executing Sub -Managers, as applicable, in some of Morgan Stanley's Separately Managed Account ("SMA") programs may effect transactions through broker -dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub -Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub -Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub -Managers concerning trade execution away from Morgan Stanley is summarized at: nttp://www.morganstaniev.coi i uvveaiiniinvestmentsoiutions/pats/aav/soiresuuI iac.uui www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morganstanley.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. CRC 5082012 11/4/2022 Graystone Page 29 Consulting Page Important Notes About This Report (Cont'd) There may be differences between the performance in the different forms of the Select UMA program, in different Programs, and between the performance in Programs and performance outside the Programs, due to, among other things, investment and operational differences. For example: Institutional accounts included in related performance may hold more securities than the Program accounts, participate in initial public offerings (IPOs) and invest directly in foreign securities (rather than in ADRs). • Mutual funds included in related performance may hold more securities than the Program accounts, may participate in IPOs, may engage in options and futures transactions, and are subject to certain regulatory limitations. • Performance results in Select UMA accounts could differ from that in Consulting and Evaluation Services accounts because Select UMA accounts may hold fewer securities, and have automatic rebalancing, wash sale loss and tax harvesting features. You should read the investment manager profile accompanying this report for each investment manager. The investment manager profile gives further details on the sources of performance information for a particular investment manager, as well as other calculations of the manager's performance returns (such as performance net of fees and expenses). SOURCE OF PERFORMANCE INFORMATION FOR OTHER INVESTMENT MANAGERS: For any investment managers shown in this report that are not available in the Consulting and Evaluation Services or Select UMA programs, the performance data is obtained from databases maintained by parties outside Morgan Stanley. This data has been included for your information, and has not been verified by Morgan Stanley in any way. See "Sources of Information" below. The gross performance shown in this report for these managers could differ materially from their gross performance in investment advisory programs offered by firms other than Morgan Stanley. If you have invested with any such manager through another firm, we recommend that you seek information from that firm on the manager's gross and net performance in its programs. CRC 5082012 11/4/2022 Graystone Page 30 Consulting Page Important Notes About This Report (Cont'd) SOURCE OF PERFORMANCE INFORMATION FOR FUNDS: For any fund shown in this report, the performance data is obtained from databases maintained by parties outside Morgan Stanley. This data has been included for your information, and has not been verified by Morgan Stanley in any way. See "Sources of Information" below. BENCHMARK INDICES: Depending on the composition of your account and your investment objectives, the indices shown in this report may not be appropriate measures for comparison purposes and are therefore presented for illustration only. The indices used in this report may not be the same indices used for comparative purposes in the profile for each investment manager, mutual fund and/or ETF that accompanies this report. Indices are unmanaged. They do not reflect any management, custody, transaction or other expenses, and generally assume reinvestment of dividends, accrued income and capital gains. Performance of selected indices may be more or less volatile than that of any investment manager/fund shown in this report. Past performance of indices does not guarantee future results. You cannot invest directly in an index. MANAGERS AND FUNDS APPROVED IN MORGAN STANLEY WEALTH MANAGEMENT PROGRAMS: Morgan Stanley Wealth Management approves certain managers and funds offered in its investment advisory programs: Morgan Stanley Wealth Management's Global Investment Manager Analysis ("GIMA") team approves managers and funds offered in Consulting and Evaluation Services and Select UMA. Managers and funds offered in Institutional Consulting Group and Graystone Consulting programs may be approved by GIMA, approved by Morgan Stanley Wealth Management using another process, or not approved by Morgan Stanley Wealth Management. • Morgan Stanley Wealth Management does not approve managers in the Investment Management Services consulting program. CRC 5082012 11/4/2022 Graystone Page 31 Consulting Page Important Notes About This Report (Cont'd) If you invest in a manager or fund that is not approved by Morgan Stanley Wealth Management, you are responsible for selecting and/or retaining that manager or fund, and Morgan Stanley Wealth Management does not recommend or monitor that manager or fund. For more information on the approval process in any program, see the applicable ADV brochure, available at www.MorganStanley.com/ADV or from your Financial Advisor or Private Wealth Advisor. If you have any questions about whether or how Morgan Stanley Wealth Management has approved a manager or fund shown in this report, please ask our Financial Advisor or Private Wealth Advisor. SHARE CLASSES OF FUNDS SHOWN IN THIS REPORT: The share class of a fund shown in this report may differ from the share class available in any Morgan Stanley Wealth Management investment advisory program in which you invest. The performance of the share class in which you invest may differ from that of the share class shown in this report. REINVESTMENT: The performance results shown in this report assume that all dividends, accrued income and capital gains were reinvested. SOURCES OF INFORMATION: Although the statements of fact in this report have been obtained from, and are based on, sources that Morgan Stanley believes to be reliable, Morgan Stanley makes no representation as to the accuracy or completeness of the information from sources outside Morgan Stanley. Any such information may be incomplete and you should not use it as the sole basis for investment decisions. It is important to consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. A copy of the prospectus may be obtained from your Financial Advisor or Private Wealth Advisor. Please read the prospectus carefully before investing in the fund. CRC 5082012 11/4/2022 Graystone Page 32 Consulting Page Important Notes About This Report (Cont'd) KEY ASSET CLASS RISK CONSIDERATIONS: Investing in securities entails risk including the risk of losing principal. There is no assurance that the investment disciplines and investment managers/funds selected will meet their intended objectives. Commodities — Diversified: The commodities markets may fluctuate widely based on a variety of factors including changes in supply and demand relationships; governmental programs and policies; national and international political and economic events; war and terrorist events; changes in interest and exchange rates; trading activities in commodities and related contracts; pestilence; weather; technological change; and the price volatility of a commodity. In addition to commodity risk, commodity -linked notes may be subject to special risks, such as risk of loss of interest and principal, lack of a secondary market and risk of greater volatility that do not affect traditional equity and debt securities. Commodities - Precious Metals: The prices of Commodities - Precious Metals tend to fluctuate widely and in an unpredictable manner, and have historically experienced extended periods of flat or declining prices. The prices of Commodities - Precious Metals are affected by several factors, including global supply and demand, investors' expectations with respect to the rate of inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, and global or regional political, economic or financial events and situations. Fixed Income: Fixed income securities are subject to certain inherent risks such as credit risk, reinvestment risk, call risk, and interest rate risk. Fixed income securities are sensitive to changes in prevailing interest rates. When interest rates rise, the value of fixed income securities generally declines. Accordingly, managers or funds that invest in fixed income securities are subject to interest rate risk and portfolio values can decline in value as interest rates rise and an investor can lose principal. High Yield Fixed Income: As well as being subject to risks relating to fixed income generally (see "Fixed Income"), high yield or "junk" bonds are considered speculative, have significantly higher credit and default risks (including loss of principal), and may be less liquid and more volatile than investment grade bonds. Clients should only invest in high yield strategies if this is consistent with their risk tolerance, and high yield investments should comprise only a limited part of a balanced portfolio. CRC 5082012 11/4/2022 Graystone Consulting Page 33 from MorganStantey Important Notes About This Report (Cont'd) International/Emerging Market: International investing (including investing in particular countries or groups of countries) should be considered only one component of a complete and diversified investment program. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as foreign political, currency, economic and market risks. In addition, the securities markets of many emerging markets are substantially smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other more developed countries. Further, a portfolio that focuses on a single country may be subject to higher volatility than one that is more diversified. Preferred Securities: Preferred securities are generally subject to the same risks as apply to fixed income securities. (See "Fixed Income.") However, preferred securities (especially equity preferred securities) may rank below traditional forms of debt for the purposes of repayment in the event of bankruptcy. Many preferred securities are "callable" meaning that the issuer may retire the securities at specific prices and dates prior to maturity. If a preferred security is called, the investor bears the risk of reinvesting proceeds at a potentially lower return. Investors may not receive regular distributions on preferred securities. For example, dividends on equity preferred securities may only be declarable in the discretion of the issuer's board and may not be cumulative. Similarly, interest payments on certain debt preferred securities may be deferred by the issuer for periods of up to 10 years or more, in which case the investor would still have income tax liability even though payments would not have been received. Real Estate: Real estate investments are subject to special risks, including interest rate and property value fluctuations as well as risks related to general and local conditions. Small and Mid Cap: Investments in small -to medium-sized corporations are generally more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the broad equity market. Hedged and Alternatives Strategies: In most Consulting Group investment advisory program, alternative investments are limited to US registered open-end mutual funds, separate account strategies, and ETFs that seek to pursue alternative investment strategies or returns utilizing publicly traded securities. Investment products in this category may employ various investment strategies and techniques for both hedging and more speculative purposes such as short selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Alternative Investments are not suitable for all investors. CRC 5082012 11/4/2022 Graystone Consulting Page 34 from MorganStantey Important Notes About This Report (Cont'd) Managed Futures: Involve a high degree of risk, often involve leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies whose interests (limited partnership or limited liability company units) are generally traded on securities exchanges like shares of common stock. Investment in MI -Ps entails different risks, including tax risks, than is the case for other types of investments. Currently, most MI -Ps operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Depending on the ownership vehicle, MLP interests are subject to varying tax treatment. CRC 5082012 11/4/2022 Graystone Consulting Page 35 from MorganStantey Glossary ALPHA: Synonym of 'value added', linearly similar to the way beta is computed, alpha is the incremental return on a portfolio when the market is stationary. In other words, it is the extra expected return due to non -market factors. This risk -adjusted measurement takes into account both the performance of the market as a whole and the volatility of the portfolio. A positive alpha indicates that a portfolio has produced returns above the expected level at that level of risk, and vice versa for a negative alpha. ANNUALIZED RETURN: The constant rate of return that, compounded annually, would yield the same overall return for a period of more than one year as the actual return observed for that period. ANNUALIZED EXCESS RETURN: Excess return represents the difference between the manager's return and the return of a benchmark for that manager. Annualized excess return is calculated by taking the annualized return of the original series and forming the difference between the two. A positive annualized excess return implies that the manager outperformed the benchmark over the time period shown. BEST AND WORST PERIOD RETURNS: The best period return for a time window is simply the maximum of the returns for that period inside this window. Similarly, the worst period return for a time window is the minimum of the returns for that period inside this window. To calculate the best one-year return for a return series, the program moves a one-year time window along the series and calculates the compound return for each of these windows. The best one-year return is the maximum of the returns thus found. Similarly, the worst one-year return is the minimum of the returns thus found. Therefore, best and worst one-year returns do not refer to calendar years. BETA: The measure of a portfolio's risk in relation to the market (for example, the S&P 500) or to an alternative benchmark or factors. Roughly speaking, a portfolio with a beta of 1.5 will have moved, on average, 1.5 times the market return. According to asset pricing theory, beta represents the type of risk, systematic risk, which cannot be diversified away. When using beta, there are a number of issues that you need to be aware of: (1) betas may change through time; (2) betas may be different depending on the direction of the market (i.e. betas may be greater for down moves in the market rather than up moves); (3) the estimated beta will be biased if the portfolio does not frequently trade; and (4) the beta is not necessarily a complete measure of risk (you may need multiple betas). Also, note that the beta is a measure of co movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market. CRC 5082012 11/4/2022 Graystone Page 36 Consulting Page Glossary (Cont'd) CORRELATION: Statistical method to measure how closely related the variances of two series are. Assets that are highly correlated would be expected to react in similar ways to changing market conditions. CUMULATIVE RETURN: The total return on an investment over a specified time period. CUMULATIVE EXCESS RETURN: Excess return represents the difference between the manager's return and the return of a benchmark for that manager. Cumulative excess return is calculated by taking the cumulative return of the original series and forming the difference between the two. A positive cumulative excess return implies that the manager outperformed the benchmark over the time period shown. DOWNSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio's benchmark index had negative returns and then (2) for those quarters, dividing the portfolio's annualized net performance by the benchmark index's performance. For investors, the lower the downside capture ratio, the better. For example, a downside capture ratio of 90% means that the portfolio's losses were only 90% of the market's losses (as represented by the benchmark index). DOWNSIDE DEVIATION: Similar to Standard Deviation, but Downside Deviation captures the range of expected returns only on the down side [when the returns fall below the minimum acceptable return (MAR)]. DRAWDOWN (MAXIMUM DRAWDOWN): The Maximum loss (compounded, not annualized) that the manager incurred during any sub -period of the time period shown. DRAWDOWN BEGIN DATE: the first date of the sub -period used to calculate the maximum drawdown DRAWDOWN END DATE: The last date of the sub period used to calculate the maximum drawdown DRAWDOWN LENGTH: The number of periods (months or quarters depending on the periodicity of the data) the sub -period used to calculate the maximum drawdown DRAWDOWN RECOVERY DATE: Date at which the compounded returns regain the peak level that was reached before the drawdown began DRAWDOWN RECOVERY LENGTH: Number of periods it takes to reach the recovery level from maximum drawdown end date CRC 5082012 11/4/2022 Graystone Page 37 Consulting Page Glossary (Cont'd) EXCESS RETURN: The difference between the returns of two portfolios. Usually excess return is the difference between a portfolio's return and the return of a benchmark for that portfolio. GAIN TO LOSS RATIO: Divides the average gain in an up period by the average loss in a down period. A higher Gain to Loss Ratio is more favorable. HIGH WATER MARK: The High Water Mark represents the peak level of the manager's return, as represented by the peak of the cumulative return series. HIGH WATER MARK DATE: The date which the High Water Mark was reached. UNDER WATER LOSS: Loss incurred between the high water mark date and the end of the period analyzed UNDER WATER LENGTH: Length of the time interval that begins with the high water mark and ends with the analysis period TO HIGH WATER MARK: The percentage of gain that the manager/fund needs to regain the peak level of the cumulative return series INFORMATION RATIO: Measures the active return of the manager divided by the manager's active risk. Active return is the annualized differences of the manager and the benchmark index, while active risk is measured by tracking error. The higher the information ratio, the better. An information ratio of 0 implies that a manager/fund (or benchmark index, if applicable) has provided a return that is equivalent to the risk of the benchmark return. MAR: Stands for "Minimum Acceptable Return." This represents the lowest return possible that could be considered a successful result of the investment. In most cases, the MAR will either be defined as 0 (meaning no negative return) or as the return of a cash benchmark (meaning the investment had a higher return that simply keeping the investment amount in the relatively safe investment of money market funds). Please refer to the specific chart/statistic to see the specific MAR used in the illustration. CRC 5082012 11/4/2022 Graystone Page 38 Consulting Page Page 39 Glossary (Cont'd) MANAGER STYLE (RETURNS BASED STYLE ANALYSIS): A measure for analyzing the style of a portfolio's returns when compared with the quarterly returns on a number of selected style indices (the "Style Basis"). These style indices represent distinct investment styles or asset classes such as large cap value, large cap growth, small cap growth, small cap value, government bonds, or cash equivalents asset classes. Style analysis uses a calculation procedure that finds the combination of selected indices that best tracks (i.e. that has the highest correlation to) a given manager's return series. This allows the advisor to capture an accurate picture of the investment style of the manager without viewing the underlying holdings. OMEGA: A measure of volatility designed to capture the entire return distribution (useful for investments that do not have normal return distributions), the Omega is tied to a MAR (see above) and shows the ratio of the entire upside performance to the entire downside, with the MAR representing the dividing line between upside and downside. (e.g. If MAR = 0.00%, any positive return is captured in the upside and any negative return is captured in the downside). PAIN INDEX: Represents the frequency, the depth, and the width of the manager/fund's drawdowns. The Pain Index captures the information for every period in which the manager/fund is negative. A higher Pain Index indicates that the manager/fund had a more negative result when considering not just the depth (lowest return) but also the frequency of negative returns (frequency) and the amount of time that the return remained negative (width). PAIN RATIO: A risk/return ratio which uses the Pain Index as the measure of risk. The higher the Pain Ratio, the better the risk - adjusted return of the portfolio. ROLLING WINDOW: Indicates that the chart or statistic was evaluated using periodic smaller windows of data on a rolling basis. As an example, a 20 Quarter Rolling Window (Annual Roll) over a 10 year period indicates that 5 year (20 quarter) periods of time were evaluated from the start date, moving forward one year at a time, for the duration of the 10 year period, resulting in 5 "windows". Evaluating data this way allows us to remove end point bias and determine a measure of consistency in performance. R-SQUARED: Used to show how much of a portfolio's variability can be accounted for by the market. For example, if a portfolio's R-Squared is 0.79, then 79% of the portfolio's variability is due to market conditions. As R-Squared approaches 100%, the portfolio is more closely correlated with the market. CRC 5082012 11/4/2022 Graystone Consulting from Morgan Stanley Glossary (Cont'd) SHARPE RATIO: Developed by William F. Sharpe, this calculation measures a ratio of return to volatility. It is useful in comparing two portfolios or stocks in terms of risk -adjusted return. The higher the Sharpe Ratio, the better the risk -adjusted return of the portfolio. It is calculated by first subtracting the risk free rate (Citigroup 3-month T-bill) from the return of the portfolio, then dividing by the standard deviation of the portfolio. Using Sharpe ratios to compare and select among investment alternatives can be difficult because the measure of risk (standard deviation) penalizes portfolios for positive upside returns as much as the undesirable downside returns. SINGLE COMPUTATION: For a single computation chart, StyleADVISOR calculates the information over the entire time period shown as a single data point. AS an example, in a chart showing 10 years of performance, a "Single Computation" would represent the statistic shown over the entire 10 year window. STANDARD DEVIATION: A statistical measure of the degree to which the performance of a portfolio varies from its average performance during a specified period. The higher the standard deviation, the greater the volatility of the portfolio's performance returns relative to its average return. A portfolio's returns can be expected to fall within plus or minus one standard deviation, relative to its average return, two-thirds of the time, and fall within plus or minus two standard deviations relative to its average return, 95% of the time. For example, if a portfolio had a return of 5% and a standard deviation of 13% then, if future volatility of returns is similar to historical volatility (which may not be the case): About two-thirds of the time, the future returns could be expected to fall between -8% and 18% (being 5% +/- 13%) About 95% of the time, the future returns could be expected to fall between -21 % and 31 % (being 5% +/- 26%). In performance measurement, it is generally assumed that a larger standard deviation means that great risk was taken to achieve the return. CRC 5082012 11/4/2022 Graystone Page 40 Consulting Page Glossary (Cont'd) STYLE BASIS: A set of indices that represent the broad asset category being utilized. The Style Basis is used in the equation that calculates the Manager Style (see definition). The "Manager Style" chart shows the specific benchmarks utilized in the Style Basis. The following Style Bases would be appropriate for the asset classes shown below: Domestic Equity: Russell Generic Corners; Russell 6 Way Style basis; S&P Pure Style Basis International Equity: MSCI Regional Style Basis; MSCI World Ex USA Style Basis; MSCI International Equity Style Basis; S&P Regional International Indexes, S&P International 4 Way Style Basis Global Equity: MSCI World Style Basis; MSCI World Regional Indexes; MSCI Global Equity Style Basis Fixed income: Citigroup Corporate Bond Indexes; BofA Merrill Lynch Fixed Income Indexes; Citigroup Govt Fixed Income Indexes; Global Bond Indexes STYLE BENCHMARK: A unique benchmark calculated for each manager/fund based on the Returns Based Style Analysis described above. The "Asset Allocation" chart in Zephyr shows the specific weightings used for the Style Benchmark for each manager or fund. TRACKING ERROR: A measurement that indicates the standard deviation of the difference between a selected market index and a portfolio's returns. The portfolio's returns are then compared to the index's returns to determine the amount of excess return, which produces a tracking error. A low tracking error indicates that the portfolio is tracking the selected index closely or has roughly the same returns as the index. UPSIDE CAPTURE RATIO: For each portfolio, this is calculated by (1) identifying the calendar quarters in which the portfolio's benchmark index had positive returns and then (2) for those quarters, dividing the portfolio's annualized net performance by the benchmark index's performance. A percentage less than 100% indicates that the portfolio "captured" less performance than the benchmark index, while a percentage greater than 100% indicates the portfolio captured more performance than the benchmark index. For investors, the higher the upside capture ratio, the better. For example, if the annualized performance of an benchmark index during "up" markets (when its returns were zero or positive) is 20.8% and the portfolio's annualized performance during the same period is 16.8%, then the portfolio's upside capture ratio is 16.8%/20.8% = 80.7%, meaning the portfolio "captured" 80.7% of the upside performance of the index. Stated another way, the portfolio in this example performed almost 20% worse than the market during up periods. VARIANCE: A measure of how spread out a distribution is. It is computed as the average squared deviation of each number from its mean. CRC 5082012 11/4/2022 Graystone Page 41 Consulting Page Performance Appendix Performance Data below is net of fees. Please seethe Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. or 3 5 10 Since Inception Account Name QTD YTDJW Years Years Years Inception 1 Date Boston Partners - SMID Value 9.69 -9.98 -9.98 5.91 4.72 -- 5.52 07/14/2017 Fiera Capital - SMID Growth 4.91 -22.05 -22.05 9.50 9.40 -- 10.62 07/20/2017 Highland - Fixed Income 0.68 -10.56 -10.56 -1.22 0.71 4.14 3.96 01/31/2011 Highland - Intl Value 16.24 -17.11 -17.11 -1.21 0.21 -- 1.60 07/17/2017 Highland - Large Cap Value 12.06 -7.84 -7.84 5.13 5.95 -- 7.06 07/17/2017 Intercontinental - Private Real Estate -6.34 7.32 7.32 9.07 8.99 -- 9.06 10/01/2017 Lazard - Global Infrastructure 9.67 -1.30 -1.30 -- -- -- 8.41 12/31/2020 Polen - Large Cap Growth -0.34 -37.93 -37.93 -- -- -- -14.60 04/01/2021 Receipt & Disbursement -5.67 -15.41 -15.41 -16.86 -12.86 -- -11.78 08/01/2017 Renaissance - International Growth 14.87 -17.52 -17.52 -1.16 -1.65 -- -0.73 07/17/2017 iShares - Russell 1000 Growth ETF 2.36 -29.17 -29.17 -- -- -- -4.56 12/31/2020 All performance above are Time Weighted(TWR) performance Glossary of Terms Active Contribution Return: The gain or loss percentage of an investment relative to the performance of the investment benchmark. Active Exposure: The percentage difference in weight of the portfolio compared to its policy benchmark. Active Return: Arithmetic difference between the manager's return and the benchmark's return over a specified time period. Actual Correlation: A measure of the correlation (linear dependence) between two variables X and Y, with a value between +1 and -1 inclusive. This is also referred to as coefficient of correlation. Alpha: A measure of a portfolio's time weighted return in excess of the market's return, both adjusted for risk. A positive alpha indicates that the portfolio outperformed the market on a risk -adjusted basis, and a negative alpha indicates the portfolio did worse than the market. Best Quarter: The highest quarterly return for a certain time period. Beta: A measure of the sensitivity of a portfolio's time weighted return (net of fees) against that of the market. A beta greater than 1.00 indicates volatility greater than the market. Consistency: The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance Core: Refers to an investment strategy mandate that is blend of growth and value styles without a pronounced tilt toward either style. Cumulative Selection Return (Cumulative Return): Cumulative investment performance over a specified period of time. Distribution Rate: The most recent distribution paid, annualized, and then divided by the current market price. Distribution rate may consist of investment income, short-term capital gains, long-term capital gains, and/or return of capital. Down Market Capture: The ratio of average portfolio returns over the benchmark during periods of negative benchmark return. Lower values indicate better product performance. Downside Risk: A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the value, the more risk the product has. Downside Semi Deviation: A statistical calculation that measures the volatility of returns below a minimum acceptable return. This return measure isolates the negative portion of volatility: the larger the number, the greater the volatility. Drawdown: A drawdown is the peak -to -trough decline during a specific period of an investment, fund or commodity. Excess over Benchmark: The percentage gain or loss of an investment relative to the investment's benchmark. Excess Return: Arithmetic difference between the manager's return and the risk -free return over a specified time period. Growth: A diversified investment strategy which includes investment selections that have capital appreciation as the primary goal, with little or no dividend payouts. These strategies can include reinvestment in expansion, acquisitions, and/or research and development opportunities. Growth of Dollar: The aggregate amount an investment has gained or lost over a certain time period, also referred to as Cumulative Return, stated in terms of the amount to which an initial dollar investment would have grown over the given time period. Investment Decision Process (IDP): A model for structuring the investment process and implementing the correct attribution methodologies. The IDP includes every decision made concerning the division of the assets under management over the various asset categories. To analyze each decisions contribution to the total return, a modeling approach must measure the marginal value of every individual decision. In this respect, the hierarchy of the decisions becomes very important. We therefore use the IDP model, which serves as a proper foundation for registering the decisions and relating them to each other. Information Ratio: Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contribution by the manager. Jensen's Alpha: The Jensen's alpha measure is a risk -adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the portfolio's or investment's beta and the average market return. This metric is also commonly referred to as alpha.. Kurtosis: A statistical measure that is used to describe the distribution, or skewness, of observed data around the mean, sometimes referred to as the volatility of volatility. Maximum Drawdown: The drawdown is defined as the percent retrenchment from a fund's peak to the fund's trough value. It is in effect from the time the fund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peak to the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). It measures the largest percentage drawdown that has occurred in any fund's data record. Modern Portfolio Theory (MPT): An investment analysis theory on how risk -averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Mutual Fund (MF): An investment program funded by shareholders that trade in diversified holdings and is professionally managed. Peer Group: A combination of funds that share the same investment style combined as a group for comparison purposes. Peer/ Plan Sponsor Universe: A combination of asset pools of total plan investments by specific sponsor and plan types for comparison purposes. Performance Ineligible Assets: Performance returns are not calculated for certain assets because accurate valuations and transaction data for these assets are not processed or maintained by us. Common examples of these include life insurance, some annuities and some assets held externally. Performance Statistics: A generic term for various measures of investment performance measurement terms. Portfolio Characteristics: A generic term for various measures of investment portfolio characteristics. Preferred Return: A term used in the private equity (PE) world, and also referred to as a "Hurdle Rate." It refers to the threshold return that the limited partners of a private equity fund must receive, prior to the PE firm receiving its carried interest or "carry." Ratio of Cumulative Wealth: A defined ratio of the Cumulative Return of the portfolio divided by the Cumulative Return of the benchmark for a certain time period. Regression Based Analysis: A statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables Residual Correlation: Within returns -based style analysis, residual correlation refers to the portion of a strategy's return pattern that cannot be explained by its correlation to the asset -class benchmarks to which it is being compared. Return: A rate of investment performance for the specified period. Rolling Percentile Ranking: A measure of an investment portfolio's ranking versus a peer group for a specific rolling time period (i.e. Last 3 Years, Last 5 years, etc.). R-Squared: The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. SA/CF (Separate Account/Comingled Fund): Represents an acronym for Separate Account and Commingled Fund investment vehicles. Sector Benchmark: A market index that serves as a proxy for a sector within an asset class. Sharpe Ratio: Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk -adjusted performance results in. Standard Deviation: A statistical measure of the range of a portfolio's performance; the variability of a return around its average return over a specified time period. Total Fund Benchmark: The policy benchmark for a complete asset pool that could consist of multiple investment mandates. Total Fund Composite: The aggregate of multiple portfolios within an asset pool or household. Tracking Error: A measure of standard deviation for a portfolio's investment performance, relative to the performance of an appropriate market benchmark. Treynor Ratio: A ratio that divides the excess return (above the risk free rate) by the portfolio's beta to arrive at a unified measure of risk adjusted return. It is generally used to rank portfolios, funds and benchmarks. A higher ratio is indicative of higher returns per unit of market risk. This measurement can help determine if the portfolio is reaching its goal of increasing returns while managing market risk. Up Market Capture: The ratio of average portfolio returns over the benchmark during periods of positive benchmark return. Higher values indicate better product performance. Upside Semi Deviation: A statistical calculation that measures the volatility of returns above an acceptable return. This return measure isolates the positive portion of volatility: the larger the number, the greater the volatility. Value: A diversified investment strategy that includes investment selections which tend to trade at a lower price relative to its dividends, earnings, and sales. Common attributes are stocks that include high dividend, low price -to -book ratio, and/or low price -to -earnings ratio. Worst Quarter: The lowest rolling quarterly return for a certain time period. Information Disclosures Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition andlor investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment. Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. The performance data shown reflects past performance, which does not guarantee future results. Investment return and principal will fluctuate so that an investor's shares when redeemed may be worth more or less than original cost. Please note, current performance may be higher or lower than the performance data shown. For up to date month -end performance information, please contact your Financial Advisor or visit the funds' company website. Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. The prospectus and, if available the summary prospectus, contains this and other information that should be read carefully before investing. Investors should review the information in the prospectus carefully. To obtain a prospectus, please contact your Financial Advisor or visit the funds' company website. Past performance is no guarantee of future results. Investing involves market risk, including possible loss of principal. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing involves the risk that the market may not recognize that securities are undervalued and they may not appreciate as anticipated. Small and mid -capitalization companies may lack the financial resources, product diversification and competitive strengths of larger companies. The securities of small capitalization companies may not trade as readily as, and be subject to higher volatility than those of larger, more established companies. Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds. The return of principal in bond funds, and in funds with significant bond holdings, is not guaranteed. International securities' prices may carry additional risks, including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes and differences in financial and accounting standards. International investing may not be for everyone. These risks may be magnified in emerging markets. Alternative investments, including private equity funds, real estate funds, hedge funds, managed futures funds, and funds of hedge funds, private equity, and managed futures funds, are speculative and entail significant risks that can include losses due to leveraging or\other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and/or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and risks associated with the operations, personnel and processes of the advisor. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies that are taxed as partnerships and whose interests (limited partnership units or limited liability company units) are traded on securities exchanges like shares of common stock. Currently, most MLPs operate in the energy, natural resources or real estate sectors. Investments in MLP interests are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk; and MLP interests in the real estate sector are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. Because of their narrow focus, MLPs maintain exposure to price volatility of commodities and/or underlying assets and tend to be more volatile than investments that diversify across many sectors and companies. MLPs are also subject to additional risks including: investors having limited control and rights to vote on matters affecting the MLP, limited access to capital, cash flow risk, lack of liquidity, dilution risk, conflict of interests, and limited call rights related to acquisitions. Mortgage backed securities also involve prepayment risk, in that faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield -to -maturity of a mortgage -backed security and prepayment risk includes the possibility that a fund may invest the proceeds at generally lower interest rates. Tax managed funds may not meet their objective of being tax -efficient. Real estate investments are subject to special risks, including interest rate and property value fluctuations, as well as risks related to general and economic conditions. High yield fixed income securities, also known as "junk bonds", are considered speculative, involve greater risk of default and tend to be more volatile than investment grade fixed income securities. Credit quality is a measure of a bond issuer's creditworthiness, or ability to repay interest and principal to bondholders in a timely manner. The credit ratings shown are based on security rating as provided by Standard & Poor's, Moody's and/or Fitch, as applicable. Credit ratings are issued by the rating agencies for the underlying securities in the fund and not the fund itself, and the credit quality of the securities in the fund does not represent the stability or safety of the fund. Credit ratings shown range from AAA, being the highest, to D, being the lowest based on S&P and Fitch's classification (the equivalent of Aaa and C, respectively, by Moody(s). Ratings of BBB or higher by S&P and Fitch (Baa or higher by Moody's) are considered to be investment grade -quality securities. If two or more of the agencies have assigned different ratings to a security, the highest rating is applied. Securities that are not rated by all three agencies are listed as "NR". "Alpha tilt strategies comprise a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward potentially outperforming the market in an effort to enhance overall investment returns. Tilt strategies are subject to significant timing risk and could potentially expose investors to extended periods of underperformance." Custom Account Index: The Custom Account Index is an investment benchmark based on your historical target allocations and/or manager selection that you may use to evaluate the performance of your account. The Custom Account index does take into consideration certain changes that may have occurred in your portfolio since the inception of your account, i.e., asset class and/or manager changes. However, in some circumstances, it may not be an appropriate benchmark for use with your specific account composition. For detailed report of the historical composition of this blend please contact your Financial Advisor. Peer Groups Peer Groups are a collection of similar investment strategies that essentially group investment products that share the same investment approach. Peer Groups are used for comparison purposes to compare and illustrate a clients investment portfolio versus its peer across various quantitative metrics like performance and risk. Peer Group comparison is conceptually another form of benchmark comparison whereby the actual investment can be ranked versus its peer across various quantitative metrics. All Peer Group data are provided by Investment Metrics, LLC. The URL below provides all the definitions and methodology about the various Peer Groups https://www.invmetrics.com/style-peer-groups Peer Group Ranking Methodology A percentile rank denotes the value of a product in which a certain percent of observations fall within a peer group. The range of percentile rankings is between 1 and 100, where 1 represents a high statistical value and 100 represents a low statistical value. The 30th percentile, for example, is the value in which 30% of the highest observations may be found, the 65th percentile is the value in which 65% of the highest observations may be found, and so on. Percentile rankings are calculated based on a normalized distribution ranging from 1 to 100 for all products in each peer group, where a ranking of 1 denotes a high statistical value and a ranking of 100 denotes a low statistical value. It is important to note that the same ranking methodology applies to all statistics, implying that a ranking of 1 will always mean highest value across all statistics. For example, consider a risk/return assessment using standard deviation as a measure of risk. A percentile ranking equal to 1 for return denotes highest return, whereas a percentile ranking of 1 for standard deviation denotes highest risk among peers. In addition, values may be used to demonstrate quartile rankings. For example, the third quartile is also known as the 75th percentile, and the median is the 50th percentile. Alternatives Graystone Consulting is a business of Morgan Stanley Smith Barney LLC. ("Morgan Stanley") This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors) and is intended solely for the use of the persons to whom it has been delivered. This material is not for distribution to the general public. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the offering memorandum and executed the subscription documents. Morgan Stanley has not considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. This information is being provided as a service of your Graystone Institutional Consultant and does not supersede or replace your Morgan Stanley customer statement. The information is as of the date(s) noted and subject to daily market fluctuation. Your interests in Alternative Investments, which may have been purchased through us, are generally not held here, and are generally not covered by SIPC. The information provided to you: 1) is included as a service to you, valuations for certain products may not be available; 2) is derived from you or another external source for which we are not responsible, and may have been modified to take into consideration capital calls or distributions to the extent applicable; 3) may not reflect actual shares, share prices or values; 4) may include invested or distributed amounts in addition to a fair value estimate; and 5) should not be relied upon for tax reporting purposes. Notwithstanding the foregoing, 1) to the extent this report displays Alternative Investment positions within a Morgan Stanley Individual Retirement Account ("IRA"), such positions are held by Morgan Stanley Smith Barney LLC as the custodian of your Morgan Stanley IRA; and 2) if your Alternative Investment positon(s) is held by us and is registered pursuant to the Securities Act of 1933, as amended, your Alternative Investment position(s) is covered by SIPC. Alternatives may be either traditional alternative investment vehicles or non-traditional alternative strategy vehicles. Traditional alternative investment vehicles may include, but are not limited to, Hedge Funds, Fund of Funds (both registered and unregistered), Exchange Funds, Private Equity Funds, Private Credit Funds, Real Estate Funds, and Managed Futures Funds. Non-traditional alternative strategy vehicles may include, but are not limited to, Open or Closed End Mutual Funds, Exchange -Traded and Closed -End Funds, Unit Investment Trusts, exchange listed Real Estate Investment Trusts (REITs), and Master Limited Partnerships (MLPs). These non-traditional alternative strategy vehicles also seek altemative-like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short -selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:• Loss of all or a substantial portion of the investment due to leveraging, short - selling, or other speculative practices;- Lack of liquidity in that there may be no secondary market for a fund;- Volatility of returns;- Restrictions on transferring interests in a fund;- Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; - Absence of information regarding valuations and pricing;- Complex tax structures and delays in tax reporting;- Less regulation and higher fees than mutual funds; and- Risks associated with the operations, personnel, and processes of the manager. As a diversified global financial services firm, Morgan Stanley Wealth Management engages in a broad spectrum of activities including financial advisory services, investment management activities, sponsoring and managing private investment funds, engaging in broker - dealer transactions and principal securities, commodities and foreign exchange transactions, research publication, and other activities. In the ordinary course of its business, Morgan Stanley Wealth Management therefore engages in activities where Morgan Stanley Wealth Management's interests may conflict with the interests of its clients, including the private investment funds it manages. Morgan Stanley Wealth Management can give no assurance that conflicts of interest will be resolved in favor of its clients or any such fund. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of the additional fees paid to a placement agent by an investor (for Morgan Stanley placement clients, a one-time upfront Placement Fee of up to 3%, and for Morgan Stanley investment advisory clients, an annual advisory fee of up to 2.5%), which would result in a substantial reduction in the returns if such fees were incorporated. For most investment advisory clients, the program account will be charged an asset -based wrap fee every quarter ("the Fee"). In general, the Fee covers investment advisory services and reporting. In addition to the Fee, clients will pay the fees and expenses of any funds in which their account is invested. Fund fees and expenses are charged directly to the pool of assets the fund invests in and impact the valuations. Clients must understand that these fees and expenses are an additional cost and will not be included in the Fee amount in the account statements. As fees are deducted quarterly, the compounding effect will be to increase the impact of the fees by an amount directly related to the gross account performance. For example, for an account with an initial value of $100,000 and a 2.5% annual fee, if the gross performance is 5% per year over a three year period, the compounding effect of the fees will result in a net annual compound rate of return of approximately 2.40% per year over a three year period, and the total value of the client's portfolio at the end of the three year period would be approximately $115,762.50 without the fees and $107,372.63 with the fees. Please see the applicable Morgan Stanley Smith Barney LLC Form ADV Part 2A for more information including a description of the fee schedule. It is available at www.moreanstanlev.com/ADV <httn://www.mor2anstanlev.com/ADV> <http://www.morganstanley.com/ADV> or from your Financial Advisor/Private Wealth Advisor. Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as Morgan Stanley does not provide tax or legal advice. Interests in alternative investment products are offered pursuant to the terms of the applicable offering memorandum, are distributed by Morgan Stanley Smith Barney LLC and certain of its affiliates, and (1) are not FDIC -insured, (2) are not deposits or other obligations of Morgan Stanley or any of its affiliates, (3) are not guaranteed by Morgan Stanley and its affiliates, and (4) involve investment risks, including possible loss of principal. Morgan Stanley Smith Barney LLC is a registered broker -dealer, not a bank. SIPC insurance does not apply to precious metals, other commodities, or traditional alternative investments. © 2018 Morgan Stanley Smith Barney LLC. Member SIPC. Money Market Funds You could lose money in Money Market Funds. Although MMFs classified as government funds (i.e., MMFs that invest 99.5% of total assets in cash and/or securities backed by the U.S government) and retail funds (i.e., MMFs open to natural person investors only) seek to preserve value at $1.00 per share, they cannot guarantee they will do so. The price of other MMFs will fluctuate and when you sell shares they may be worth more or less than originally paid. MMFs may impose a fee upon sale or temporarily suspend sales if liquidity falls below required minimums. During suspensions, shares would not be available for purchases, withdrawals, check writing or ATM debits. A MMF investment is not insured or guaranteed by the Federal Deposit Insurance Corporation or other government agency.