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HomeMy WebLinkAbout01-21-2025 Agenda CITY OF SEBASTIAN POLICE OFFICERS’ RETIREMENT SYSTEM PENSION BOARD OF TRUSTEES QUARTERLY MEETING COUNCIL CHAMBERS, 1225 MAIN STREET SEBASTIAN, FL 32958 AGENDA Tuesday, January 21, 2025 – 5:00PM Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to any matter considered at a meeting or hearing, that individual will need a record of the proceedings and will need to ensure that a verbatim record of the proceedings is made. In accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at (772) 388-8205. I. CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM II. PUBLIC COMMENTS III. APPROVAL OF MINUTES 1. October 16, 2024, quarterly meeting IV. NEW BUSINESS 1. Actual Plan Expenses as of September 30, 2024 V. OLD BUSINESS VI. REPORTS (ATTORNEY/CONSULTANTS) 1. Foster and Foster, Doug Lozen, Board Actuary a. Actuarial Valuation Report as of October 1, 2024 2. Graystone Consulting, Scott Owens, Investment Consultant a. Quarterly report as of December 31, 2024 3. KKJL, Bonni Jensen, Board Attorney a. New Contract Requirements b. New Withholding Requirements c. Revised Operating Rules & Procedures d. SPD update VII. CONSENT AGENDA 1. Payment ratification a. Warrant #15, #16, #17 2. New invoices for payment approval 3. Fund activity report for October 10, 2024, through January 14, 2025 VIII. STAFF REPORTS, DISCUSSION, AND ACTION 1. Foster & Foster, Troy Jenne, Plan Administrator a. Quorums Email b. Educational opportunity i. FPPTA 41st Annual Conference, June 22-25, 2025, Omni Champions Gate, Orlando IX. TRUSTEES’ REPORTS, DISCUSSION, AND ACTION X. ADJOURNMENT NEXT MEETING DATE: Tuesday, April 15, 2025, at 5:00PM 1 CITY OF SEBASTIAN POLICE OFFICERS’ RETIREMENT SYSTEM PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES Council Chambers, 1225 Main Street, Sebastian, FL 32958 Wednesday, October 16, 2024, at 2:00PM TRUSTEES PRESENT: Tim Wood Paul Reeves Ken McDonough Robert Allen TRUSTEES ABSENT: David Puscher OTHERS PRESENT: Troy Jenne, Foster & Foster Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Tim Nash, Intercontinental Services Scott Owens, Graystone Consulting 1. Call to Order – Troy Jenne called the meeting to order at 2:02PM and a quorum was determined. 2. Roll Call – Troy Jenne called roll call. 3. Public Comments – None. 4. Approval of Minutes a) July 16, 2024, quarterly meeting The July 16, 2024, quarterly meeting minutes were approved as presented, upon motion by Tim Wood and second by Paul Reeves; motion carried 4-0. 5. New Business a) Cost of Living Adjustment (COLA) update i. Troy Jenne commented that two retirees had incorrect COLA amounts. 1. Joseph Buyers was overpaid by $767.88, and Steven Marcinik was underpaid by $901.44. 2. Bonni Jensen commented the Board would need to approve of the new benefit amounts. The Board voted to approve the COLA adjustments as presented, upon motion by Tim Wood and second by Ken McDonough; motion moved 4-0. , 6. Old Business – None. 7. Reports (Attorney/Consultants) a) Intercontinental Services, Tim Nash, Investment Manager i. The Board agreed to amend the agenda to allow Tim Nash to speak as he was not on the agenda. 2 1. Tim Nash reported on the Boards holdings in the path of hurricane Milton and there was no damage to any of those properties. 2. Tim Nash provided handouts to the Board for the June 30, 2024 report and advised the third quarter report would be forwarded shortly. 3. Tim Nash commented that the Federal Reserve reducing the long- term rates was likely to help the real estate values moving forward. 4. Tim Nash advised there were no staff changes working on their plan. 5. Tim Nash reviewed the redemption queue movement to expect in the future. 6. Tim Nash reviewed the investment returns with net asset value of $696,096 as of June 30, 2024. 7. Tim Nash reviewed the two diversification models used for their plan. 8. Tim Nash commented about the value of multi-family properties and strip malls in the portfolio. 9. Tim Nash commented on lease rates and expirations. 10. Tim Nash reviewed the fund debt currently with 34.2% of properties had no debt, 57.2% had fixed debt and 8.5% had floating debt. 11. Robert Allen asked the cutoff for carrying over and the percentage that triggers this. Tim Nash explained this to him. 12. Tim Nash reviewed the ground up projects for the Board after a question by Robert Allen. b) Graystone Consulting, Scott Owens, Investment Consultant i. Large cap manager search 1. Scott Owens reviewed the large cap versus passive manager potential moving forward. 2. Paul Reeves asked what percentage of portfolio was passive and Scott Owens commented 16% and reviewed the allocation potential for passive. ii. Quarterly report as of September 30, 2024 1. Scott Owens gave an update on the market environment and performance for the quarter. 2. Scott Owens commented this quarter fixed income was up 4-5%. 3. The total fund gross returns for the quarter were 5.21%, slightly underperforming the benchmark of 6.44%. The 1-, 3-, 5-, 7- and 10-year gross returns were 20.43%, 4.92%, 9.03%, 7.95% and 7.71% compared to the benchmarks of 22.83%, 4.99%, 8.75%, 8.17% and 7.87% for the same respective periods. Since inception (02/01/2011), total fund gross returns were 7.68%, slightly underperforming the benchmark of 8.31%. 4. Scott Owens reviewed the asset allocation, commenting all were in compliance. iii. International manager search 1. Scott Owens reviewed the performance of the managers to include Fiera Capital SMID Growth and Russell 2500 GR. 3 2. Scott Owens further commented on International Value Manager Search to include Highland, Aristotle, Franklin Tempelton, Lazard, Todd, MSCI EAFE and MSCI ACWI ex USA. 3. Scott Owens recommended rebalance to include reducing Genter to Two million, hold six months cash, and place anything over into Highlands FI. The Board approved rebalance to reduce Genter to Two million, hold six months cash and place remaining into Highlands Fl, upon motion by Tim Wood and second by Paul Reeves; motion carried 4-0. 4. Scott Owens recommended moving to more passive strategy to include selling Highland Int. Value moving funds to MSCI EAFE. The Board approved to sell Highland Int. and move this to MSCI EAFE Value, upon motion by Paul Reeves and second by Robert Allen; motion carried 4-0. 5. Tim Wood asked about the effect the upcoming presidential election would have on their investments. Scott Owens explained the unique situation having a clear history with both having been in power. Scott discussed the differences between the two candidates and the potential effects this could have. 6. The Board discussed the potential effect of the election and their beliefs on the changes that could occur in both directions. c) Klausner, Kaufman, Jensen & Levinson, Bonni Jensen, Board Attorney i. Operating Rules and Procedures 1. Bonni Jensen discussed the updated Addendum to the Operating Rules and Procedures. 2. Bonni Jensen reviewed the changes to include the change to the term “Plan Administrator.” 3. Election adjusted to four-year terms from two-year terms and elections rules to include the electronic election option, as was used by Foster & Foster. 4. Records Management Liaison Officer (RMLO) changes were also discussed. 5. Two signatures required for financial changes to plan funds include one Administrator and one Trustee. 6. New IRS provision when we are not able to locate disability retirees. ii. Bonni Jensen requested motion for educational requirement for new Trustees within first six months. 1. The Board discussed changing requirement from six months to two years. 2. Bonni Jensen discussed the experience study costs and recommended deleting the last sentence. The Board voted to accept the updated Operating Rules and Procedures with changes to educational requirements being mandatory within two years and to 4 delete the last sentence of the experience cost study, upon motion by Tim Wood and second by Robert Allen; motion moved 4-0. 8. Consent Agenda a) Payment ratification i. Warrant #13 b) New Invoices for payment approval i. Warrant #14 c) Fund activity report for July 10, 2024, through October 9, 2024 The consent agenda was approved as presented, upon motion by Tim Wood and second by Paul Reeves; motion carried 4-0. 9. Staff Reports, Discussion, and Action a. Foster and Foster, Troy Jenne, Plan Administrator i. Update on disability affidavits (PF-6s) 1. Troy Jenne commented they had one disability retiree that had his paperwork outstanding, and he had returned the required documentation. Bonni Jensen asked the Board if they had any concerns with his documents. Tim Wood confirmed this was done every other year until 52 or 55 years, for early or normal retirement. The Board voted to receive and file the disability affidavit, upon motion by Tim Wood and second by Ken McDonough; motion moved 4-0. ii. Educational opportunity 1. Troy Jenne discussed upcoming training opportunities. a. Florida Public Pension Trustee Association (FPPTA) Winter Trustee School, January 26-29, 2025, Renaissance Orlando at Sea World. 10. Trustee Reports, Discussion, and Action – None. 11. Adjournment – The meeting adjourned at 3:52PM. 12. Next Meeting – Tuesday, January 21, 2025, at 5:00PM, Quarterly Meeting. Respectfully submitted by: Approved by: _____________________________ ___________________________ Troy Jenne, Plan Administrator Tim Wood, Chairman Date Approved by the Pension Board: ____________________________ Expenditure Type 2023-2024 Proposed Budget Amount Actual Expenses as of September 30, 2024 Actuary $26,400.00 $23,517.00 Administrator $24,600.00 $20,971.56 Attorney $20,000.00 $16,955.00 IME Physician Fees $0.00 $0.00 Custodian of Funds $26,500.00 $30,017.61 Insurance $3,000.00 $3,221.52 School, Travel and Dues $5,250.00 $4,417.04 Investment Consultant $16,000.00 $16,000.00 Miscellaneous $5,000.00 $0.00 Totals $126,750.00 $115,099.73 City of Sebastian Police Officers' Retirement System 7080 NORTHWEST 4TH STREET, PLANTATION, FLORIDA 33317 PHONE: (954) 916-1202 – FAX: (954) 916-1232 www.klausnerkaufman.com To: Board of Trustees – Florida Pension Clients From: Klausner, Kaufman, Jensen & Levinson, Board Counsel Re: New Florida Laws – Sections 287.138 and 787.06, Florida Statutes Date: October 1, 2024 In this past Florida legislative session, two new Florida laws went into effect that impose new contract requirements on Florida governmental entities, including public pension boards. The first law requires government contractors to verify that they are not using coercive labor practices. The second law requires that every new Request for Proposal (RFP) and new contract which provides access to personal identifying information of the participants will need to include an affidavit for the government contractor to attest that it is not an entity of a foreign country of concern. Section 787.06(13), Florida Statutes Effective July 1, 2024, Section 787.06(13), requires any non-governmental entity that executes, renews or extends a contract with a governmental entity is required to provide an affidavit signed by an officer or representative of the entity under penalty of perjury attesting that the nongovernmental entity does not use “coercion” for labor or services. For the purposes of this statute, coercion means any of the following activities: • Using or threatening to use physical force against any person; • Restraining, isolating, or confining or threatening to restrain, isolate, or confine any person without lawful authority and against her or his will; • Using lending or other credit methods to establish a debt by any person when labor or services are pledged as a security for the debt, if the value of the labor or services as reasonably assessed is not applied toward the liquidation of the debt, the length and nature of the labor or services are not respectively limited and defined; • Destroying, concealing, removing, confiscating, withholding, or possessing any actual or purported passport, visa, or other immigration document, or any other actual or purported government identification document, of any person; • Causing or threatening to cause financial harm to any person; • Enticing or luring any person by fraud or deceit; or • Providing a controlled substance as outlined in Schedule I or Schedule II of s. 893.03 to any person for the purpose of exploitation of that person. New Florida Laws – Sections 287.138 and 787.06, Florida Statutes October 1, 2024 Page 2 of 3 Our office has prepared the attached affidavit that can be sent to the Board’s service providers to execute and return for the Plan’s records. It will only need to be sent to those service providers who have executed, extended or renewed an agreement with the Board since July 1, 2024. Additionally, moving forward, we recommend using the below language in any contract between the Board and the contracting entity: In accordance with Florida law, the Contractor hereby represents that it does not use coercion for labor or services as defined in Section 787.06, Florida Statutes as certified by the attached Human Trafficking Affidavit (Exhibit 1). Section 287.138, Florida Statutes Beginning January 1, 2024, a governmental entity may not accept a proposal or enter into a contract with an entity, which would provide the entity with access to personal identifying information of the participants, unless the entity provides the governmental entity with an affidavit signed by an officer or representative under penalty of perjury attesting to the following: • The entity is not owned by a government of a foreign country of concern; • No government of a foreign country of concern has a controlling interest in the entity; • The entity is not organized under the laws of or has its principal place of business in a foreign country of concern. For purposes of this affidavit, “foreign country of concern” means the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern. Additionally, beginning July 1, 2025, a governmental entity may not renew or extend a contract with an entity who cannot attest to the above if the contract would give access to a participant’s personal identifying information. If any renewing contract is with an entity that cannot sign the affidavit, it cannot be renewed. Moreover, if, at any time in the future, the contracting entity does become owned by a foreign country of concern, if a foreign country of concern acquires a controlling interest in the entity, or the entity becomes organized under the laws of or relocated to a foreign country of concern, the entity will need to immediately notify the Board and no contracts may be executed, renewed, or extended between the parties. It is our opinion that this provision would apply to contracts with the Board’s Administrator/Recordkeeper, Actuary, Attorney, Custodian and Auditor, as those entities will likely receive access to participant’s personal identifying information over the course of the contract. New Florida Laws – Sections 287.138 and 787.06, Florida Statutes October 1, 2024 Page 3 of 3 Our office has prepared the attached affidavit that can be sent to the Board’s applicable service providers to execute and return for the Plan’s records. It will only need to be sent to those service providers who have access to a participant’s personal identifying information and who have entered into an agreement with the Board since January 1, 2024. Beginning July 1, 2025, when renewing or extending an existing contract with those service providers who have access to a participant’s personal identifying information, the affidavit will need to be executed and returned for the Plan’s records. Service providers should be notified of the requirements of these two new laws by providing a copy of this memo to them. This memo should be placed on the next available agenda for discussion by the Board. This memo will be discussed at your next meeting. Attachment 1. Human Trafficking Affidavit The undersigned, on behalf of Contractor, hereby attests as follows: A. Contractor understands and affirms that Section 787.06(13), Florida Statutes, prohibits the Plan from executing, renewing, or extending a contract to entities that use coercion for labor or services. B. Contractor hereby attests, under penalty of perjury, that Contractor does not use coercion for labor or services as defined in Section 787.06(2), Florida Statutes. I, the undersigned, am an officer or representative of the nongovernmental entity named below, and hereby represent that I: make the above attestation based upon personal knowledge; am over the age of 18 years and otherwise competent to make the above attestation; and am authorized to legally bind and make the above attestation on behalf of the Contractor. Under penalties of perjury, I declare that I have read the forgoing document and that the facts stated in it are true. Further Affiant sayeth naught. Contractor: _____________________________________________ Authorized Signature: Date: _____________ Printed Name: Title: _________________________________________________ STATE OF _________________ COUNTY OF _______________ The foregoing instrument was acknowledged before me by means of ☐ physical presence or ☐ online notarization, this ____ day of ________________, 20____, by ____________________________, as __________________ on behalf of the company/corporation. They ☐ are personally known to me or ☐ have produced ___________________ as identification. Signature of Notary Public Name of Notary Typed, Printed or Stamped My Commission Expires: _______________ COMPANY NOT AN ENTITY OF A FOREIGN COUNTRY OF CONCERN For purposes of this affidavit, “foreign country of concern” means the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign country of concern. The undersigned, on behalf of the entity listed below hereby attests under penalty of perjury as follows: 1. I am over the age of 18 and I have personal knowledge of the matters set forth herein. 2. I am an officer or representative of_________________________ (herein after “Entity”), and I am authorized to provide this affidavit on its behalf. 3. Entity is not owned by the government of a foreign country of concern. 4. No government of a foreign country of concern has a controllin g interest in Entity. 5. Entity is not organized under the laws of or has its principal place of business in a foreign country of concern. 6. If, at any time in the future, Entity does become owned by a foreign country of concern, if a foreign country of concern acquires a controlling interest in Entity, or Entity becomes organized under the laws of or relocated to a foreign country of concern, Entity will immediately notify the Plan and no contracts may be executed, renewed, or extended between the parties. 7. I have read the foregoing affidavit and confirm that the facts stated in it are true, and are made for the benefit of, and reliance by the Plan. Company: ___________________________________________ Authorized Signature: Date: _____________ Printed Name: Title: _________________________________________________ STATE OF _________________ COUNTY OF _______________ The foregoing instrument was acknowledged before me by means of ☐ physical presence or ☐ online notarization, this ____ day of ________________, 20____, by _________________________________, as _________________________ on behalf of the company/corporation. They ☐ are personally known to me or ☐ have produced _________________ as identification. _________________________________________ Notary Public Signature (Affix Notary Stamp or Seal) Print, Type or Stamp Name of Notary:__________ My commission expires:______________________ To: Board of Trustees – Florida Pension Clients From: Klausner, Kaufman, Jensen & Levinson, Board Counsel Re: New Withholding Requirements Date: November 18, 2024 On October 21, 2024, the Internal Revenue Service (“IRS”) issued a final regulation regarding income tax withholding rules for retirement plan payments to recipients located outside of the United States. Individuals residing in the United States generally may elect no withholding under the Internal Revenue Code (“IRC”), however, payments sent to pensioners outside of the United States are subject to stricter rules. The regulation finalizes proposed regulations issued in May 2019, with no substantive modifications, except for the applicability date. The regulation applies to pension payments made on or after January 1, 2026; however, taxpayers may apply the regulation to early payments and distributions. The final regulation provides the following: • A retiree cannot elect “no withholding” if the recipient provides a residence address located outside of the US or fails to provide a residence address, even if the payment is sent to a financial institution or other individual located in the US. • A retiree cannot elect “no withholding,” if the distribution is sent to a financial institution or other individual outside the US, even if the recipient has a US residence address. • If a retiree uses a military or diplomatic address as their residence address, those addresses are treated as within the US, so recipients at these addresses may elect “no withholding.” Withholding is required if the recipient has a US residence address and does not elect “no withholding.” The regulation does not apply to non-U.S. citizens or nonresident aliens of the United States. Plan Administrators should be notified of the requirements of this regulation so that they can instruct the custodian and other paymasters when to withhold. This memo should be placed on the next available agenda for discussion by the Board. OPERATING RULES AND PROCEDURES For The CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Approved by the Board on: March 21, 2017 ______________2024 CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM OPERATING RULES AND PROCEDURES TABLE OF CONTENTS SECTION PAGE NUMBER Rule 1 - Board of Trustees 1.1 Definition of Functions 1 1.2 Definition of Fiduciary 1 1.3 Summary 1 1.4 Establishment of Offices 1 1.5 Conflicts of Interest and Gifts 2 1.6 Per Diem and Reimbursement 2 1.7 Election Procedures 2 1.8 Succession of Persons to Vacant Positions 3 1.9 Education Requirements 4 1.10 Disclosure of Financial Interests 4 Rule 2 - Meetings 2.1 Attendance at Board Meetings 4 2.2 Agendas and Other Meeting Materials 5 2.3 Rules of Order 5 2.4 Appearance Before the Board 6 2.5 Public Records 6 2.6 Government in the Sunshine 6 2.7 Committee Meetings 7 2.8 Workshops 7 2.9 Minutes 7 Rule 3 - Rules of Procedure 3.1 Legal Effect 7 3.2 Adoption Procedures 7 Rule 4 - Plan Administrative Assistant Administrator / Office Personnel 4.1 Board Employees/Independent Contractors 8 4.2 Selection Standards 8 4.3 Evaluation and Compensation 8 4.4 Decision Making Authority 8 Rule 5 - Internal Procedures and Controls 5.1 Mail 8 5.2 Expense Payments from the Fund 9 5.3 Processing of Payments for Early or Normal Retirement and Return of Contributions 9 5.4 Review of Custodial Statements 11 5.5 Rollovers to and from the Fund 11 5.6 Deferred Retirement Option Plan Rules and Processing 11 5.7 Share Account Rules and Processing 12 5.8 Missing Benefit Recipients 12 Table of Contents Page 2 Rule 6 - Insurance 6.1 Fiduciary Insurance 13 6.2 Travel Coverage 13 Rule 7 - Relations With The City 7.1 Authority of the Board 13 7.2 Contractual Services 14 7.3 Use of the City Finance Department 14 7.4 Use of Independent Custodians 14 7.5 Administrative Services 14 Rule 8 - Ordinance Changes 8.1 Form of Ordinance 14 8.2 Collective Bargaining 15 8.3 Appearance at City Council Meetings 15 8.4 Actuarial Impact Studies 15 Rule 9 - Judicial Proceedings 9.1 Process 15 9.2 Dissolution of Marriage 15 Rule 10 - Investments 10.1 Hiring Investment Managers 16 10.2 Hiring Performance Monitors 16 10.3 Performance Goals and Objectives 16 10.4 Investment Standards 17 10.5 Decision Making Authority 17 10.6 Written Contracts 17 10.7 Reporting 18 10.8 Presentations by Prospective Consultants and Professionals 18 10.9 Divestiture 19 10.10 Proxy Voting 19 10.11 Declaration of Expected Annual Rate of Return 20 10.12 Investment Reports to the City 20 Rule 11 - Actuarial Services 11.1 Selection 20 11.2 Conflicts of Interest 20 11.3 Reporting 20 11.4 Setting Contribution Rates 21 11.5 Credited Service 21 11.6 Actuarial Studies for Individual Plan Members 21 Table of Contents Page 3 Rule 12 - Accounting Services/Administrative Budget 12.1 Audits 21 12.2 Conflicts of Interest 22 12.3 Review of Internal Controls 22 12.4 Detailed Accounting Report 22 12.5 Administrative Budget 22 Rule 13 - Legal Services 13.1 Selection 23 13.2 Conflicts of Interest 23 13.3 City of Sebastian City Attorney 23 13.4 Privileged Communications 23 13.5 Authority to Direct 23 13.6 Contracts 24 Rule 14 - Claims Procedures 14.1 Claims of Affected Persons 24 14.2 Initial Hearing 25 14.3 Full Hearing 25 14.4 Conduct of the Full Hearing 28 14.5 Disability Claims - Additional Procedures 28 Rule 15 - Confidentiality 15.1 Extent of Confidentiality Permitted 29 15.2 Requirement for Maintenance of Confidentiality 29 15.3 Confidentiality of Medical Records 30 Rule 16 - Interest Calculations 16.1 Interest Calculations 30 Rule 17 - Disability Review Procedure 17.1 Procedure 30 Rule 18 - Surveillance 18.1 Surveillance 31 Rule 19 - Insurance Premium Deductions 19.1 Insurance Premium Deduction Authorization 32 19.2 Tax-Free Payment of Insurance Premiums 32 19.3 Retirees Who are Eligible for the Tax-Free Payment of Qualified Insurance Premiums 34 RULE 1 BOARD OF TRUSTEES 1.1 DEFINITION OF FUNCTIONS The Board of Trustees shall act as the named fiduciary of the Fund as defined by Florida law. The Board shall have the exclusive authority to operate, maintain and interpret the provisions of the state laws and local ordinances establishing and executing the investment policy of the Fund. The Trustees shall be solely responsible for the selection and retention of professional advisors to the Fund including but not limited to investment managers, performance monitors, plan administrators, attorneys, accountants, actuaries, and clerical staff. 1.2 DEFINITION OF FIDUCIARY A fiduciary shall be defined as a person responsible for the discharge of his duties with respect to the Pension Plan solely in the interest of the participants and beneficiaries for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying the reasonable expenses of administering the Plan. 1.3 SUMMARY Trustees shall be responsible for the investment and reinvestment of the assets of the Fund; for determining all claims for retirement benefits; for exercising the sole and exclusive adminis- tration of and the proper operation of the Plan; to perform such actuarial and accounting functions as are required by law; to prepare and distribute a Summary Plan Description as provided in §112.66, Florida Statutes, to the Members of the Fund upon employment and every other year thereafter; and to fulfill all other such duties as may be required by law. 1.4 ESTABLISHMENT OF OFFICES The Board of Trustees shall elect a Chairman and Secretary every two years. The officers shall be Trustees of the Board. The Chairman shall be responsible for the conduct of all meetings of the Board and shall have voting rights the same as any other Trustee of the Board. The Chairman shall perform such other duties as the Trustees may assign. The Secretary Plan Administrator shall be responsible for the keeping of minutes of the transactions of the Board. The Secretary, together with the Chairman, shall execute all official contracts of the Board. The Board may delegate to the -1- Plan Administrator, any function which will assist the Board in carrying out its duties and responsibilities. 1.5 CONFLICTS OF INTEREST AND GIFTS A.Conflicts of interest in voting shall be governed by the provisions of Section 112.3143, Florida Statutes, the Code of Ethics for Public Officials. Notwithstanding any other provision of law, no Trustee shall vote or participate in a determination of any matter in which that Trustee shall receive a special private gain except in the case of employee Trustees voting on benefits applicable to all Members of the Plan. B.No Trustee (or his or her spouse or minor child) shall, at any time, solicit or accept any gift (including but not limited to, food, beverages and transportation), loan, reward, promise of future employment, favor, service, compensation, payment, or thing of value when the Trustee understands, knows or should have known that it was given to influence a vote or other action in which the Trustee was expected to participate in his official capacity. Gifts provided directly or indirectly by a state, regional or national organization which promotes the exchange of ideas between, or the professional development of, members of that organization or staff of a governmental agency that is a member of that organization, are permitted. 1.6 PER DIEM AND REIMBURSEMENT All Trustees shall be entitled to receive a per diem allowance and reimbursement for reasonable expenses incurred in conducting the business of the Fund. The Board shall establish reasonable reimbursement rates in accordance with policies of the City of Sebastian, a copy of which is attached. 1.7 ELECTION PROCEDURES The Board of Trustees shall consist of five persons, two of whom shall be Police Officers, two of whom shall be legal residents of the City appointed by the City Council and the fifth Trustee shall be a person selected by the other four Trustees and appointed as a ministerial act by the City Council . A.Police Officer Trustees. The Police Officer Trustees shall be elected from among the Members of the Fund in the Police Department for four-year terms. Elections shall be by a majority -2- vote. If no candidate receives a majority vote, a run-off election between the two top vote recipients shall be held at the earliest practical date. Elections shall be within sixty calendar days of a vacancy. Trustees shall take office immediately after election results are certified by the Board. In the event of a vacancy, elections shall be within sixty days of the vacancy. Employees shall be permitted to nominate themselves for office and elections may be conducted by mail-in ballot. The election shall otherwise be conducted by placement of a ballot box in the Police Department Headquarters for a period of 72 hours beginning on a date to be selected by the Board. As an alternative, the Board may utilize an electronic survey method, with the election conducted by sending a ballot or survey form to each member of the plan, with results to be returned within five (5) days of the date the ballot or survey is sent. Ballots shall be counted by the Board and the winners certified by the Board. B.Resident Trustees. The two resident Trustees shall be legal residents of the City and shall be appointed for four year terms, by the City Council at the earliest practical date after a vacancy occurs. C.Fifth Trustee. The fifth Trustee of the Board shall be chosen for a four year term by a majority vote of the other Trustees at the earliest practical date after a vacancy occurs. The fifth Trustee may or may not be a legal resident of Sebastian and may or may not be an employee of the City. The name of the person selected by a majority of the other Trustees shall be certified to the City Council which shall, in accordance with state law, ratify the appointment of that person as a ministerial act. 1.8 SUCCESSION OF PERSONS TO VACANT POSITIONS Vacancies on the Board of Trustees of employee members shall be filled by special election to be conducted in the same manner as any other election. Vacancies among the resident Trustees shall be filled by the City Council. The person selected to fill a vacancy shall fulfill only the remain- ing term of the vacant office. In the event of a vacancy in the fifth Trustee of the Board, the Board shall appoint a successor in the same manner as the initial selection. -3- 1.9 EDUCATION REQUIREMENTS Each Trustee is required to attend a seminar or conference regarding Trustee duties and responsibilities and matters relating to the investment program of the Plan at least once each term. Trustees are encouraged to attend seminars or conferences more frequently in order to remain informed regarding pension issues. New Trustees are encouraged to must attend within the first six months two years of their term. Trustees shall be permitted to attend conferences or schools within the State of Florida to satisfy the above minimum requirements without prior Board approval. 1.10 DISCLOSURE OF FINANCIAL INTERESTS Trustees must file a statement of financial interests (Form 1) with the supervisor of elections of the county in which they permanently reside using the Electronic Financial Disclosure Management System (EFDMS) within 30 days from the date of appointment and no later than July 1 of each year thereafter. Trustees must file a final statement (Form 1F) using the EFDMS portal within 60 days after leaving their office as Trustee. The final statement shall cover the period between January 1 of the year in which the Trustee leaves office and the last day of office. If a Trustee has not filed by July 1, the supervisor of elections is required to notify such Trustee of a grace period to file by September 1. If a statement is not filed by September 1, an automatic fine of $25.00 per day will be imposed up to a maximum of $1500.00. Fines cannot be paid from the pension plan. The Trustee may also be subject to additional penalties provided for in §112.317, Florida Statutes. RULE 2 MEETINGS 2.1 ATTENDANCE AT BOARD MEETINGS The Board shall set its own schedule of meetings. Special meetings may be called by the Chairman or by a majority of Trustees. The Board shall meet at least once each quarter. In recognition of the importance of the work of the Board, regular attendance at Board meetings is expected of all Trustees. Physical attendance of a quorum is required at meetings in order for the Board to conduct business. Once the physical presence of a quorum is established, -4- Trustees not physically present may participate telephonically if so noted on the meeting agenda. Trustees shall only be permitted to attend meetings of the Board by teleconferencing or telephone if extraordinary circumstances exist for the Trustee's absence, as determined by the Board, and only if a quorum (3) of the Trustees is physically present at the meeting. Trustees who are permitted to remotely attend meetings shall be permitted to participate and vote at such meetings. Any Trustee who fails to attend two consecutive meetings of the Board without an excuse acceptable to the other Trustees shall be deemed to have resigned from the Board. Employee Members of the Fund who are called into the active service of the City at the time of a Board meeting shall automatically be deemed excused. 2.2 AGENDAS AND OTHER MEETING MATERIALS A published Notice of Meeting and Agenda shall be prepared for each regular and special meeting of the Board. The Notice of Meeting and Agenda shall set forth those items upon which the Board anticipates taking action or discussing. Each agenda item shall have attached to it backup material necessary for discussion or action by the Board. Each Notice of Meeting and Agenda shall inform members of the public that should they wish to appeal any decision made by the Board that they will need a record of the proceedings and that they may need to ensure a verbatim record is taken, which includes testimony and evidence upon which the appeal is based. In addition, the Notice of Meeting and Agenda shall also include a notice to members of the public offering to provide assistance to those who are disabled, should they need assistance in order to attend the meeting. A copy of the Notice of Meeting and Agenda shall be posted in a location in the Sebastian City Hall and the Police Department where notices of public meetings are customarily posted. The Board must provide and post reasonable notice of all meetings. All agendas and meeting materials are public records as defined in Chapter 119, Florida Statutes. 2.3 RULES OF ORDER In recognition of the importance of accomplishing the objectives of the Board in a most orderly fashion, the Board may establish rules of order for the conduct of its meetings. The Board shall not, however, be bound by strict observance of the rules of parliamentary procedure unless the Board deems it in its best interest to do so. Three affirmative votes are required to carry action. -5- 2.4 APPEARANCE BEFORE THE BOARD As a public body, the Board has a responsibility to accommodate members of the public and Members of the Fund who wish to appear before the Board. All appearances before the Board shall be scheduled through the Plan Administrative Assistant Administrator and time limits for presentations may be established by the Board. Appearances before the Board may be in person or through a representative. All communications with the Board shall either be in writing or by personal appearance at a Board meeting. 2.5 PUBLIC RECORDS A.The records of the Fund are public records as set forth in Chapter 119, Florida Statutes, except for medical records of the Fund. The Board shall maintain the confidentiality of medical records as required by law. All medical records of Members of the Fund shall be maintained separately from other records of the Board so as to ensure security of the privileged information to which the Board is privy. B.The Board shall appoint a Records Management Liaison Officer (RMLO) in accordance with Section 257.35 257.36, Florida Statutes. The RMLO shall be the official custodian of the records of the Board. The Board shall adopt the Florida General Records Schedule GS1-SL, as amended from time to time, and shall maintain an active and continuing program for the economical and efficient management of Board records. 2.6 GOVERNMENT IN THE SUNSHINE All meetings of the Board shall be conducted in accordance with the provisions of Section 286.011, Florida Statutes, the Government in the Sunshine Act. No Trustee shall engage in communications with another Trustee outside of a public meeting on any matter which shall ultimately be the subject of a Board action. All meetings of Trustees at which official business of the Board shall be discussed shall be publicly noticed and open to the public in accordance with the law. All meetings of the Board shall be held in a location where public access is reasonably available. Regular meetings of the Board shall be held in Indian River County, Florida. -6- 2.7 COMMITTEE MEETINGS The Board, in the conduct of its business, may choose to establish committees consisting of a lesser number of Trustees. Committees shall be appointed by the Chairman. Committees consisting of two or more Trustees shall be conducted in accordance with the Government in the Sunshine Law. Committees consisting of one Trustee shall maintain records in accordance with the Public Records Act but need not conduct its business pursuant to a publicly noticed meeting. All reports of committees shall be reduced to writing and made a part of the official records of the Board. 2.8 WORKSHOPS The Board may from time to time wish to conduct workshop meetings for the purposes of developing policies or procedures of the Board or for the review of investment data of the Board. Workshops shall be conducted in a public forum the same as any other meeting and shall have a published agenda in advance of the workshop. 2.9 MINUTES Complete minutes of all meetings of the Board or a Committee shall be promptly prepared following the meeting and all minutes shall be submitted to the Board for approval following their preparation. All minutes shall be open for public inspection. RULE 3 RULES OF PROCEDURE 3.1 LEGAL EFFECT The Board of Trustees is authorized by law to establish rules of procedure for the operation of the Fund. No rule or regulation of the Fund may conflict with any lawful ordinance, charter provision or state law. 3.2 ADOPTION PROCEDURES All rules to be adopted by the Fund shall be in writing and shall be adopted by a majority vote of the Board. The Board shall review its rules and regulations on a periodic basis but not less than once a year. The rules and regulations of the Fund shall be made available to any member of the Fund requesting a copy from the Plan Administrator. -7- RULE 4 PLAN ADMINISTRATIVE ASSISTANT ADMINISTRATOR / OFFICE PERSONNEL 4.1 BOARD EMPLOYEES/INDEPENDENT CONTRACTORS The Board shall establish specific job descriptions for each classification of service provided to the Board. New employees and independent contractors of the Board shall not, by virtue of their employment by the Board, be employees of the City of Sebastian and shall serve at the pleasure of the Board. 4.2 SELECTION STANDARDS The Board shall establish for each classification of service, standards of education, experience and skills necessary for the execution of the duties of the position. The Board may delegate the initial screening process for applicants to a committee of the Board. The final decision for the employment of any person as an employee or independent contractors shall be determined by the Board of Trustees acting as a whole. 4.3 EVALUATION AND COMPENSATION All employees and independent contractor of the Board shall be evaluated periodically. Compensation shall be established by the Board of Trustees. 4.4 DECISION MAKING AUTHORITY No employee or independent contractor of the Board shall have the authority to bind the Board of Trustees in any contract or endeavor without the express authority of the Board. RULE 5 INTERNAL PROCEDURES AND CONTROLS 5.1 MAIL The Administrative Assistant designee of the Board shall be responsible for opening, dating and transmitting mail. All mail received by the Board shall be dated, stamped and reviewed for any time limitations or response dates. The mail shall be placed in folders bearing the names of the recipient of the mail. Mail addressed to the Board in general and to no specific person shall be directed to all Trustees. All official decisions of the Board shall be sent by mail. A "reading file" of all correspondence coming into and emanating from the Board shall be maintained on a monthly -8- basis together with copies in any specific files as may be established. In all respects, the provisions of Chapter 119, Florida Statutes, the Public Records Act, shall be observed. 5.2 EXPENSE PAYMENTS FROM THE FUND A.Payments to professionals performing services previously authorized by the Board or for other expenses authorized by the Board shall routinely be made prior to Board approval as follows: (1)Statements received for services or expenses which are not pursuant to a written agreement shall be paid, but only if such statements do not exceed $250.00. (2)Statements received for services or expenses which are rendered pursuant to a written agreement shall be paid if deemed to be in accordance with the agreement. All payments made pursuant to paragraphs (1) and (2) above shall be considered by the Board at the first meeting following such payment and approved and ratified, if appropriate. B.Any other payments from the Fund not described in subsection A. above shall be approved by the Board prior to such payment. C.Authorization for payments from the Fund shall be in writing and signed by at least two trustees of the Board, or by one Trustee and the Administrative Assistant Plan Administrator. 5.3 PROCESSING OF PAYMENTS FOR EARLY OR NORMAL RETIREMENT AND RETURN OF CONTRIBUTIONS A.Upon receipt of an application for early or normal retirement, the Board's Administrative Assistant or other Board designee shall process the application as follows: (1)The application shall be reviewed for accuracy and completeness and for eligibility for benefits. (2)A copy of the application and any necessary records from the City shall be forwarded to the actuary for calculation of the benefit amounts payable for the normal form and all optional forms of benefits. (3)Upon receipt of the actuary's calculations, the calculations shall be presented to the Retiree and the Retiree shall make his election. -9- (4)The application shall be approved by any Administrative Assistant any Trustee or the Plan Administrator and shall then be provided to the Custodian along with any necessary supporting documents in order to begin payments. (5)Copies of the Retiree's election form and the actuary's calculations shall be provided to the Board of Trustees or Administrative Assistant prior to the commencement of payments or at the next meeting immediately following the commencement of payments, and the Board shall review and approve the retirement benefits. B.Upon the termination of employment of a Member prior to his early or normal retirement date, the Board's Administrative Assistant Plan Administrator or other Board designee shall: (1)Determine whether the Member is vested or not vested and determine the amount of the Member's contributions. (2)Inform the Member of his right to leave his contributions in the plan or withdraw his contributions. If the Member desires to withdraw his contributions, provide the Member with the necessary forms, including the appropriate Return of Contributions form, the Special Tax Notice Regarding Plan Payments and the Certification of Receipt of the Special Tax Notice and the Lump Sum Distribution Election Form; (3)Recommend that the Member study and complete the appropriate forms and seek tax and/or legal advice regarding his choice. (4)Direct the Member to return the completed forms to the Administrative Assistant Plan Administrator or Board designee; (5)Upon receipt of the properly completed forms, prepare and submit a payment request signed by the Administrative Assistant Plan Administrator and copies of any necessary documents to the Custodian to authorize the requested payment or rollover; -10- (6)Provide copies of all documents to the Board of Trustees prior to payment or at the next meeting immediately following the payment, for the Board to approve the payment. C.Pension payments should only be made as provided above. 1099-R reporting forms to Retirees must contain the proper information and codes to ensure that Retirees report the proper amounts on their personal income tax returns. In-line-of duty disability benefits shall be reported as "taxability undetermined" on 1099-R forms. 5.4 REVIEW OF CUSTODIAL STATEMENTS A.Custodial reports should be monitored by the Board or its designee for disclosure of all asset inflows such as City and Member contributions, state excise tax payments, if applicable, miscellaneous citizen donations, and investment income. All errors, including those involving the misclassifications of Plan revenues, e.g., recording Member contributions as City contributions, must be corrected. B.Custodial reports should also be monitored for all asset outflows. Asset outflows must be properly approved and verified on audit. Expenses shall be approved as provided in Rule 5.2 and Retirements and Returns of Contributions in accordance with Rule 5.3. Letters of authorization for the expenditure of funds must be issued by the Administrative Assistant Plan Administrator and copies must be maintained in orderly files. 5.5 ROLLOVERS TO AND FROM THE FUND The Fund will accept and transfer eligible cash rollover distributions to and from the Fund as permitted by local, State and Federal law. The Board may adopt appropriate forms to facilitate such rollovers. 5.6 DEFERRED RETIREMENT OPTION PLAN RULES AND PROCESSING The Board of Trustees shall establish the procedure to begin participation for Members who are eligible to participate in the Deferred Retirement Option Plan (DROP), including the adoption of an Application/Agreement to be completed and executed by the Member prior to DROP participation. The Application/Agreement shall inform the Member of the ramifications of DROP participation and shall require the Member to acknowledge such ramifications and also acknowledge -11- that the Member has had the opportunity to seek independent legal/financial advice prior to DROP participation. 5.7 SHARE ACCOUNT RULES AND PROCESSING The Board of Trustees shall have annual statements prepared as of each September 30th to provide each eligible Member or DROP participant for whom a Share Account has been created, with all necessary information regarding his or her Share Account balance as of the end of the preceding plan year. The Board of Trustees shall establish the procedure for the distribution of individual Share Account monies upon the eligible Member’s or DROP participant’s termination of employment or death. 5.8 MISSING BENEFIT RECIPIENTS If the Board cannot ascertain the whereabouts of any person to whom a full, unreduced benefit payment is due, including payments due under the DROP, the Board shall follow procedures outlined in the IRS Employee Plans Compliance Resolution System (EPCRS) program and other applicable IRS guidance to locate any missing individuals who are owed benefits and, if at the conclusion of such efforts the individual cannot be located, the existing procedure of cancelling payments otherwise due (provided that, if the individual is later located, the benefits due shall be paid) will apply. In the event that a benefit is due to a person who is missing, the plan shall take the following steps: A.Search plan and related plan, City and publicly-available records or directories for alternative contact information. B.Use any of the following search methods: (1)A commercial locator service; (2)A credit reporting agency; or (3)A proprietary internet search tool for locating individuals. C.Attempt contact via the United States Postal Service (USPS) certified mail to the last known mailing address and through appropriate means for any address or contact information (including e-mail addresses and telephone number). -12- If such person has not made written claim for benefits within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from Counsel to the System, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the System. Upon such cancellation, the System shall have no further liability therefor except that, in the event such person or his beneficiary later notifies the Board of his whereabouts and requests the payment or payments due to him, benefits due to him shall be paid to him in accordance with the provisions of the Plan. RULE 6 INSURANCE 6.1 FIDUCIARY INSURANCE The Trustees are authorized by law to purchase fiduciary insurance to insure members of the Board for breaches of fiduciary duty at the expense of the Fund, but the Fund shall not pay to waive recourse against Trustees. A rider waiving recourse may be purchased and paid for by the City or by a Trustee. 6.2 TRAVEL COVERAGE The fund may purchase, at its expense, life and accidental death and dismemberment insurance for each Trustee who shall travel outside of Indian River County for the purpose of Board related business. RULE 7 RELATIONS WITH THE CITY 7.1 AUTHORITY OF THE BOARD The Board of Trustees is an independent entity established by state law, city charter and local ordinance. The Board of Trustees shall not be considered a component part of nor subordinate to the City of Sebastian government. The Board shall have exclusive control of the operation of the Fund; however, no change to the retirement ordinance may be made except by action of the State Legislature or the City Council . -13- 7.2 CONTRACTUAL SERVICES In the selection of contractual services, the Board shall pay particular attention to the existence of conflicts of interest when contractors are to be employed by the Board for services similar to services which the contractor also provides to the City of Sebastian. 7.3 USE OF THE CITY AS CUSTODIAN The Board shall be authorized to utilize the services of the City for the performance of banking functions of the Board. The City shall have no discretionary authority with regard to the utilization or direction of funds of the Board. The precise duties of the City shall be reduced to writing, the same as any other contract for services entered into by the Board. 7.4 USE OF INDEPENDENT CUSTODIANS The Board shall be authorized to use the services of any duly qualified custodian in lieu of the City for the performance of banking functions of the Board. The custodian shall be duly licensed, insured and bonded and shall meet all of the depository requirements of Chapter 280, Florida Statutes. 7.5 ADMINISTRATIVE SERVICES The Board shall be authorized to utilize the City a Plan Administrator for the performance of administrative services. The precise duties shall be reduced to writing, the same as any other contract for services entered into by the Trustees. RULE 8 ORDINANCE CHANGES 8.1 FORM OF ORDINANCE No ordinance change affecting the Pension Fund shall be presented for a vote to the City Council unless first reviewed and approved by a majority of the Trustees in accordance with the existing law governing the Fund. All proposed ordinances shall be reviewed by the General Counsel to the Fund who shall pass on the form and correctness of the ordinance. All proposed ordinance changes carrying an economic impact shall be reviewed by the actuary to determine the cost as required by law. -14- 8.2 COLLECTIVE BARGAINING The Board of Trustees acknowledges that it is neither an employee organization nor an employer as defined by Chapter 447, Part II, Florida Statutes. Therefore, the Board shall not engage in collective bargaining on behalf of the City of Sebastian or on behalf of any employee organization. The Board shall make itself available as a resource to labor organizations and the City for all matters relating to pension and retirement, if any. 8.3 APPEARANCE AT CITY COUNCIL MEETINGS The Board of Trustees shall, through one of its members, its designee or its General Counsel, be present at all City Council meetings where a discussion of matters of interest to the Board shall occur. The Board shall, prior to said meeting, designate an official spokesperson on behalf of the Fund. 8.4 ACTUARIAL IMPACT STUDIES No benefit change shall occur without an actuarial impact study as required by state law. Actuarial impact studies initiated by the Board of Trustees shall be at the expense of the Fund. Actuarial studies requested by the City or the Union, if any, previously authorized by the Board shall be paid for by the City or Union, respectively. RULE 9 JUDICIAL PROCEEDINGS 9.1 PROCESS All process issued by federal or state courts to the City of Sebastian concerning the Pension Fund or to the City of Sebastian Police Officers' Retirement System shall immediately upon receipt, be forwarded to the General Counsel for the Fund who shall respond thereto. 9.2 DISSOLUTION OF MARRIAGE Upon entering into a Dissolution of Marriage, a Plan Member shall notify the Administrative Assistant Plan Administrator of the Member's attorney's name, address and telephone number. The Administrative Assistant Plan Administrator shall then promptly provide that information to the General Counsel to the Fund. -15- RULE 10 INVESTMENTS 10.1 HIRING INVESTMENT MANAGERS In recognition of the importance of professional guidance in the investment of the assets of the Fund, all investments shall be performed by qualified, professional investment managers. The investment managers shall be selected at a regular or special meeting of the Board of Trustees by a majority vote of the Board. The Board may delegate the initial screening of investment managers to a committee of the Board but no final decision shall be made except at a meeting of the Board. All proposals for investment manager services shall be presented in writing to the Board and shall be made a part of the records of the Board. 10.2 HIRING PERFORMANCE MONITORS The Board shall engage at all times, at least one performance monitor who shall be responsible for reviewing the performance of the various investment managers of the Fund. The performance monitor shall report to the Board on such time schedules as the Board shall establish but not less than annually. The performance monitor shall advise the Board as to the relative performance of each investment manager as compared to the various stock, bond and cash indices as are generally accepted in the investment market place as reflective of satisfactory investment performance. The performance monitor shall recommend in writing to the Board the retention or discharge of investment managers and the reasons supporting its recommendation. At the request of the Board, the performance monitor may perform evaluation and searches for investment managers and such other services as the Board shall request be performed. 10.3 PERFORMANCE GOALS AND OBJECTIVES The Board shall establish performance goals and objectives for each investment manager in each class of investment and shall establish expected rates of return. The investment policy shall comply with the minimum requirements set forth in Sections 112.661 and 112.662, Florida Statutes. The performance goals and objectives shall be reduced to writing in an Investment Policy Statement and shall be referred to in the contract between the Board and the manager. The performance goals and objectives shall be reviewed on not less than an annual basis and shall be compared to the actual performance of an investment manager to determine compliance with the goals and objectives set -16- by the Board. All Investment Policy Statements and amendments thereto shall immediately be provided to the City, the Department of Management Services and to the Board's actuary. 10.4 INVESTMENT STANDARDS The Board shall establish written investment standards in the Investment Policy Statement. The standards shall set forth the distribution of the Fund between equities, fixed income, cash and cash equivalents and other forms of lawful investment. The standards shall set forth the relative percentages of the Fund to be distributed to each investment vehicle and shall establish permissible risk factors. Each investment manager shall subscribe to the Investment Policy Statement setting forth the written investment standards and performance goals and objectives of the Fund and the Investment Policy Statement shall be incorporated into each investment manager contract by reference. 10.5 DECISION MAKING AUTHORITY The Board of Trustees shall determine the retention or discharge of any investment manager or performance monitor. The Board shall also establish the amount of funds to be entrusted to any investment manager and shall determine when funds shall be withdrawn and investments terminated. The Trustees shall not, however, participate in the selection of individual stocks, bonds or cash funds as that shall be the responsibility of the investment manager within the context of the performance goals and objectives and investment standards established by the Board. 10.6 WRITTEN CONTRACTS Each investment manager and performance monitor shall enter into a written contract with the Board. Each contract shall include an acknowledgment by the investment manager or performance monitor that it is familiar with the ordinances of the City of Sebastian and the provisions of Chapters 112 and 185, Florida Statutes. The contracts shall also provide that the investment manager shall make no purchases which are prohibited by law and in the event such purchase is made, shall make the Fund whole for any loss incurred in the divestiture of said investment. Each contract shall set forth with specificity the fees charged by the investment manager or performance monitor to the Fund. All investment manager contracts shall further set forth that the investment manager is registered as an investment advisor and is otherwise qualified by law to engage in the management of the assets which are the subject of the contract. -17- 10.7 REPORTING All investment managers and performance monitors of the Fund shall report on not less than an annual basis. The investment managers and monitors may, however, be directed by the Trustees to report on a more frequent basis. All such reports shall be in writing and shall be presented in person by a representative of the investment manager or performance monitor who has authority to make discretionary decisions with regard to the Trust's account and to settle claims and disputes arising from the contract. All such investment managers and performance monitors shall make these presentations in person at a regular meeting of the Board and shall bear their own costs and expenses in traveling to Board meetings. The performance monitors shall attend at least an annual meeting of the Board and shall report, in writing, the progress of each investment manager. The performance monitor shall also make written recommendations regarding retention of investment managers and changes in investment policy. 10.8 PRESENTATIONS BY PROSPECTIVE CONSULTANTS AND PROFESSIONALS In recognition of the limited time resources of the Board, presentations of prospective investment managers, performance monitors, custodians or other prospective professional advisors shall only be by written invitation of the Board. The Board shall maintain records of such prospective managers, monitors, custodians and other professionals to be reviewed by the Board in the event the Board wishes to consider adding or making a change in its current manager, monitor, custodian or other professional. In the event the Board elects to consider retaining a new manager, monitor, custodian or other professional, prospective applicants, including those applicants who had previously provided information to the Board, may be contacted and provided with a Request for Proposal. The Board or a committee appointed by the Board may conduct the initial screening of applicants by reviewing the proposals received in response to the Requests for Proposals. The Board may then schedule personal presentations by a "short-list" of qualified applicants. The Board may also decide to retain managers, monitors, custodians and other professionals by utilizing any other method which the Board deems to be prudent under the circumstances. -18- 10.9 DIVESTITURE No divestiture of any asset of the Fund shall be made for any reason other than fulfillment of the fiduciary obligations of the Fund, or compliance with State Law. 10.10 PROXY VOTING The Trustees shall be responsible for exercising all proxies on equities held by the Fund. The Trustees shall comply on a voluntary basis with the standards of the Employee Retirement Income Security Act of 1974 in the voting of proxies. The Board shall, by contract or other written agree- ment, give all investment managers proxy voting responsibility and the Trustees shall monitor the voting of the managers. The Trustees (along with the United States Department of Labor) do not consider the following practices by investment management firms with proxy voting responsibility to be consist- ent with their fiduciary responsibility: A.Declining to vote proxies; B.Voting proxies exclusively for management without analysis of the underlying issues; C.Permitting negligent or inaccurate record-keeping regarding proxy voting; D.Accepting directions from other parties; E.Permitting the absence of policies or procedures to assure the proper exercise of this fiduciary responsibility. Any significant proxy items and the vote by an investment manager shall be reported in writing to the Trustees. Records of all proxy votes shall be maintained and made available to the Trustees or any agents acting in their behalf. All such records shall be maintained in accordance with the Florida Public Records Act. It shall be the primary responsibility of investment managers acting on behalf of the Board to vote all proxies to enhance the value of the Fund assets. All tender offers shall be treated in the same manner with regard to record-keeping and asset enhancement. -19- 10.11 DECLARATION OF EXPECTED ANNUAL RATE OF RETURN For each actuarial valuation, the Board shall seek the advice of its investment professionals and the actuary and then the Board shall determine the total expected annual rate of investment return for the current year, for each of the next several years and for the long term thereafter. This determination must be filed promptly with the Department of Management Services, with the City and with the Board's actuary, as well as posted to the City website. 10.12 INVESTMENT REPORTS TO THE CITY The Board shall prepare annual fiscal year end reports for submission to the City, City Council, which shall include the investments in the portfolio by class or type, book value, income earned and market value as of the end of the fiscal year. RULE 11 ACTUARIAL SERVICES 11.1 SELECTION The Board of Trustees shall retain at all times the services of an enrolled actuary. An enrolled actuary shall mean an actuary who is enrolled under Subtitle C of Title III of the Employment Retirement Income Security Act of 1974 and who is a member of the Society of Actuaries or the American Academy of Actuaries. Competitive bidding shall not be required in the selection of actuaries. 11.2 CONFLICTS OF INTEREST In order to avoid conflicts of interest in the delivery of actuarial services, the Board shall not retain actuaries who are employed by the City of Sebastian, unless the Board is determined to be the client by a separate engagement letter or contract. 11.3 REPORTING The actuary shall report to the Board on not less than an annual basis so that the Board may establish the adequacy of employer and employee contribution rates. Valuations shall be done at least every three years and posted to the City website. No proposed change in retirement benefits shall be made without an actuarial determination of the cost impact of the change. All actuarial reports shall be in accordance with the provisions of Section 112.63, Florida Statutes. -20- 11.4 SETTING CONTRIBUTION RATES Pursuant to the ordinances of the City of Sebastian, the Board is solely responsible for establishing the contribution rates of the City. The City contribution rate shall be established following an analysis of the adequacy of employee contributions, contributions from the State of Florida Insurance Rebate Program and investment earnings of the Fund. 11.5 CREDITED SERVICE For purposes of actuarial calculations involving credited service, fractional parts of years shall be defined as completed months. 11.6 ACTUARIAL STUDIES FOR INDIVIDUAL PLAN MEMBERS Each vested Plan Member shall be entitled, at the Fund's expense, to receive two actuarial studies to estimate his or her retirement benefits. Any additional studies shall be provided only at the Member's expense. Benefit calculations for terminated vested persons shall be performed by the actuary immediately upon termination. RULE 12 ACCOUNTING SERVICES/ADMINISTRATIVE BUDGET 12.1 AUDITS The Fund shall cause to be made not less than on an annual basis an audit of the assets and liabilities of the Fund. Financial reporting should be made in accordance with generally accepted accounting standards. A.All postings from the custodial statements to the Plan's working trial balance should be in accordance with the Board's general and/or specific authorizations. B.All transactions recorded in the custodial statements should be analyzed, summarized and accurately posted to the correct trial balance accounts in the correct time period. C.All adjustments, deductions or write-offs of account balances should be calculated, summarized and recorded in the correct period. D.All postings to the working trial balance should be supported by and reference to adequate, authorized documentation. -21- 12.2 CONFLICTS OF INTEREST In order to avoid conflicts of interest, the Board shall not retain auditors who are employed by the City of Sebastian unless the Board shall be determined to be the client by separate engagement letter or contract. 12.3 REVIEW OF INTERNAL CONTROLS The policies and procedures provided for in these Operating Rules and Procedures shall be reviewed by the independent certified public accountant as part of the financial audit to determine the effectiveness of such controls to prevent losses of funds which might arise from fraud, error, misrepresentation by third parties, or imprudent actions by the Board or employees of the City. 12.4 DETAILED ACCOUNTING REPORT The Administrative Assistant shall provide a detailed accounting report of its expenses for each fiscal year to the City and the Department of Management Services and make the report available to each member of the plan, and post the report on the Board's website, if the Board has a website. The report must include all administrative expenses that, for purposes of this subsection, are expenses relating to any legal counsel, actuary, plan administrator, and all other consultants, and all travel and other expenses paid to or on behalf of the members of the Board of Trustees, or anyone else on behalf of the plan. 12.5 ADMINISTRATIVE BUDGET The Board of Trustees shall adopt and operate under an administrative expense budget for each fiscal year. The Administrative Assistant shall provide a copy of the approved budget to the City by October 1st, and make available a copy of the budget to plan members before the beginning the fiscal year. If the Board of Trustees amends the administrative expense budget, the Administrative Assistant must provide a copy of the amended budget to the City and make available a copy of the amended budget to plan members. -22- RULE 13 LEGAL SERVICES 13.1 SELECTION The Board shall select and appoint a General Counsel who shall be licensed to practice law in the State of Florida. The General Counsel shall have demonstrated competence in the area of public employee retirement systems in the State of Florida and shall have been practicing law for not less than ten years. Competitive bidding is not required in the selection of legal services. 13.2 CONFLICTS OF INTEREST In recognition of the requirement that attorneys be independent in their judgment as set forth in the Code of Professional Responsibility, no attorney may serve as General Counsel who is also performing legal services on the part of the City of Sebastian or who otherwise engages in any legal services which the Board deems to be in conflict with its interests. 13.3 CITY OF SEBASTIAN CITY ATTORNEY In recognition of the responsibilities of the City Attorney to the City of Sebastian and the potential for representing competing interests, the office of the City Attorney may not serve in any legal capacity on the part of the Trust. 13.4 PRIVILEGED COMMUNICATIONS In all dealings between its General Counsel and the Board, the Board shall be deemed the client rather than any individual Trustee of the Board. All communications between the Board and its General Counsel shall be privileged communications except where otherwise governed by the Government in the Sunshine Law. 13.5 AUTHORITY TO DIRECT The General Counsel shall take direction from the Board of Trustees as may be given at the various meetings of the Board. In between meetings of the Board, direction to the General Counsel shall be given by the Chairman or other person directed by the Board. All files of the General Counsel to the Fund shall be open for inspection by any Trustee. -23- 13.6 CONTRACTS If possible, all contracts shall provide that the laws of Florida shall govern and that venue for any legal action shall be in Indian River County, Florida. In no event shall any contract be terminable by the service provider with less than 45 days' written notice, unless otherwise agreed to by the Board. All written contracts shall be reviewed by the General Counsel to the Fund who shall approve the form and correctness of each such contract. All written contracts shall be executed by the Chairman and Secretary of the Board. RULE 14 CLAIMS PROCEDURES 14.1 CLAIMS OF AFFECTED PERSONS A.The Board of Trustees shall grant an initial hearing upon receipt of a written request ("Claim"), on matters which affect the substantial rights of any person ("Claimant"), including Members, Retirees, Beneficiaries, or any person affected by a decision of the Board of Trustees. B.The Board shall review the Claim at an initial hearing and enter an order within 180 days from the date of receipt of the Claim and, in the case of disability claims, receipt by the Board of a written medical release authorization in a form approved by the General Counsel and a completed set of interrogatories prepared by the General Counsel and provided to the Claimant. The Board may extend the time for entering the order at an initial hearing for an additional 90 days if it determines such time is necessary for full discovery and adequate review. The General Counsel and the Claimant may stipulate to further extensions of time an administratively reasonable period of time after the hearing. C.It shall be the function of the General Counsel, throughout the claims procedure, to assist the Board in the discovery and presentation of evidence in order to assure that the Board receives all relevant information prior to the Board's decision. D.The Claimant shall have the right to be represented by counsel at any or all times throughout the claims procedure. -24- 14.2 INITIAL HEARING A.At the initial hearing, the only evidence to be considered by the Board shall be documentary evidence contained in the pension file, including but not limited to, correspondence, medical records and reports of treating physicians and/or examining physicians and evidence received pursuant to paragraph B. B.Other than questions from the Trustees, there will be no taking of additional evidence at the initial hearing, except that the Claimant will be afforded 15 minutes to make a presentation, which shall be limited to comments and/or arguments as to the evidence or information already contained in the pension file, including the report of the examining physician. C.Upon completion of the review of the Claim at the initial hearing, the Board shall enter an order setting forth its findings and conclusions on the Claim. The written order shall be provided to the Claimant. The order shall include: (1)The specific findings and conclusions of the Board, including specific references to pertinent provisions of the Plan on which such conclusions are based; (2)A description of any additional material or information that the Board may deem necessary for the Claimant to perfect his Claim, together with the reasons why such material or information is necessary; and (3)An explanation of the right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. D.The decision of the Board at the initial hearing shall not be final until after the time has expired to request a full hearing or, if a full hearing is requested, until the Board makes a decision at the conclusion of the full hearing. 14.3 FULL HEARING A.Any Claimant may request a full hearing on the issues presented to the Board at an initial hearing and upon which the Board has entered an order as provided in subsection 2.C. above. B.A full hearing must be requested by the Claimant in writing, within 90 30 days of the receipt of the Board's order. The order will be deemed received three days following the date it is mailed to Claimant at the address provided to the Board by Claimant. -25- C.Upon receipt of the request for a full hearing and considering the amount of discovery which might be conducted, the Board shall establish a date for the full hearing and cause notice to be given to the Claimant. The full hearing shall be held within 90 days from the receipt of the request from the Claimant. The full hearing may be postponed, if necessary and with the consent of the Claimant, to permit full discovery of the facts. D.Copies of all documents to be offered into evidence at the full hearing, including depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the Board and the General Counsel by the Claimant at least 20 days prior to the full hearing. Documents not furnished to the Board within the prescribed time limit may be excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. E.A Claimant or the General Counsel may obtain discovery by deposition and/or interrogatories prior to the full hearing. Written notice of any depositions and/or interrogatories shall be given to the General Counsel and the Claimant. F.The costs of any discovery, except discovery requested by the Board or the General Counsel, the appearance of witnesses at the hearing, and the making of a verbatim record of the proceedings shall be the responsibility of the Claimant. G.The Claimant shall be responsible for the appearance of any witnesses which he wishes to have testify at the hearing. The Board shall, however, have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for herein. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. H.Testimony at the full hearing may be submitted in the form of a deposition. Depositions timely submitted will be part of the record before the Board at the full hearing and will not be read in totality at the full hearing; provided however, that this does not preclude the Claimant or the General Counsel from reading parts of depositions in an opening or closing statement. -26- I.While the Florida Rules of Civil Procedure and the strict Florida Rules of Evidence do not apply to these proceedings, irrelevant and unduly repetitious evidence shall be excluded. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but it shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. J.Any person who knowingly gives false testimony is guilty of a misdemeanor of the first degree, punishable as provided in Section 775.082 or 775.083, Florida Statutes. K.The file maintained by the Board, including but not limited to various medical reports therein, is part of the record before the Board at the full hearing L.All proceedings of the Board shall be conducted in public. M.In cases concerning an application for pension benefits, including applications for disability retirement benefits, the burden of proof, except as otherwise provided by law, shall be on the Claimant seeking to show entitlement to such benefits. N.In cases concerning termination of pension benefits, including re-examination of Retirees receiving disability retirement benefits, the burden of proof shall be on the Board. O.Except as to those records which are exempted from the provisions of Chapter 119, Florida Statutes, Florida's Public Record Law, records maintained by the Board are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. P.Should a Claimant requesting an initial or full hearing decide to appeal any decision made by the Board, with respect to any matter considered at such hearing, the Claimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a verbatim record of the proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceedings before the Board. Q.The decisions of the Board after the requested full hearing shall be final and binding. R.Within 15 days after making a reasonable period following the decision at the full hearing, the Board shall enter a final order setting forth its findings and conclusions and a copy of the order shall be provided to the Claimant. -27- S.Judicial review of decisions of the Board shall be sought by the filing of a timely petition for writ of certiorari with the Clerk of the Circuit Court, in the appropriate county. 14.4 CONDUCT OF THE FULL HEARING A.The Chairman shall preside over the hearing and shall rule on all evidentiary, procedural, and other legal questions that arise during the hearing. The Chairman's rulings shall stand unless overruled by a majority of the Trustees present. The Chairman shall open the full hearing by explaining the procedures to be followed. B.The Claimant shall have the right to be represented by counsel or be self-represented. The General Counsel shall advise the Board. C.The Claimant shall be allowed to make an opening statement not to exceed ten minutes. D.Testimony of witnesses shall be under oath or affirmation. Depositions and affidavits shall be admissible. E.The Chairman, any Trustee, the General Counsel, the Claimant or the Claimant's counsel, upon recognition by the Chairman, may direct questions to any witness during the proceedings. F.Either the Claimant or the General Counsel shall have the right to present evidence relevant to the issues, to cross-examine witnesses, to impeach witnesses and to respond to the evidence presented. G.The Claimant shall be permitted a closing argument not to exceed 15 minutes. H.The Board shall deliberate and make a decision following closing argument and thereafter enter an order as provided herein. 14.5 DISABILITY CLAIMS - ADDITIONAL PROCEDURES A.All applications for disability pensions shall be in writing. Forms for such applications may be provided by the Board. B.Upon receipt of the application for disability, the General Counsel will provide the Claimant with a set of interrogatories or questions to be answered under oath and a medical release authorization. Both documents will be completed by the Claimant and returned to the General Counsel. -28- C.Upon receipt of the properly completed interrogatories and medical release authorization, the General Counsel will request medical records from all relevant treating physicians; personnel records from the employer, copies of relevant workers' compensation records, and copies of other records deemed to be relevant to the Claim. The Board shall pay, from the Fund, the cost of any medical examinations required by the Board and for copies of medical records. D.The General Counsel will, if authorized by the Board, upon receipt of the medical records from the treating physicians, schedule an independent medical examination (IME) or examinations with an appropriate independent examining physician or physicians who will be asked to render an opinion about Claimant's physical condition as it relates to the claimed disability. E.Upon receipt of the IME report or reports from the examining physician or physicians, the General Counsel will provide all records of treating physicians, relevant workers' compensation claims records, the independent medical evaluation, and all other relevant documents to the Board for inclusion in the pension file and the Board shall then schedule the initial hearing. RULE 15 CONFIDENTIALITY 15.1 EXTENT OF CONFIDENTIALITY PERMITTED §§119.071(4)(d)2.a.(I) and (II) 119.071(4)(a)1. and 119.071(4)(d)2.a., Florida Statutes, provides that the home addresses, telephone numbers, social security numbers, photographs and dates of birth of active or former sworn law enforcement personnel and; the names, home addresses, telephone numbers, social security numbers, photographs, dates of birth and places of employment of the spouses and children of such personnel; and the names and locations of schools and day care facilities attended by the children of such personnel are exempt from the public records provisions of Section 119.07(1), Florida Statutes and §24(a), Article 1, of the State Constitution. 15.2 REQUIREMENT FOR MAINTENANCE OF CONFIDENTIALITY The Board will maintain the information specified in 15.1 as confidential, if it receives from a Member, the Union on behalf of all Members, or the City of Sebastian a written request to maintain confidentiality. -29- 15.3 CONFIDENTIALITY OF MEDICAL RECORDS A.§112.08(7), Florida Statutes is an exemption of medical records and medical claims records from the public records requirements of §119.07(1), Florida Statutes and such records are thus confidential. B.This exemption provides that the Board shall not furnish such records to any person except the employee or his legal representative without written authorization from the employee or, unless otherwise prohibited by law, it receives a subpoena issued in a civil or criminal action from a court of competent jurisdiction where the party seeking the records gave proper notice to the employee or his legal representative. C.Since, under Government in the Sunshine, trustees can only discuss issues involving medical records of an employee in a public meeting, such an authorization should be signed by an employee prior to discussion by the Board. Upon consideration of the medical records at a public Board meeting, such records then become subject to disclosure in the same manner as any other public record. RULE 16 INTEREST CALCULATIONS 16.1 INTEREST CALCULATION To the extent permitted by law, the interest calculation for the purchase of Credited Service, if not otherwise provided for in the ordinance, shall be the greater of the actual interest earned on plan investments or the actuarially assumed rate of investment return. RULE 17 DISABILITY REVIEW PROCEDURE 17.1 PROCEDURE The Board shall periodically review the status of disability Retirees who may be eligible to return to employment with the City of Sebastian as a Police Officer in accordance with the following: A.A disability affidavit on a form adopted by the Board shall be filed with the Board at least once each year. Failure to file the affidavit shall result in a suspension of disability benefits. Disability affidavits will not be provided to nor expected from any disability Retiree who has -30- reached their otherwise normal retirement date (age 55 with what would have been 10 years of service or age 52 with what would have been 25 years of service). B.Upon receipt of the affidavit, the Board shall determine whether the disability Retiree continues to be entitled to receive disability benefits pursuant to the terms of the pension plan. C.If the Board determines that the disability Retiree is still disabled, then disability benefits shall continue to be paid. D.If, after review of the affidavit, the Board is unable to determine whether the disability Retiree continues to be disabled, the Board shall make further inquiry as necessary. E.Such inquiry may include job availability and medical ability to perform duty. If the Board determines that a Police Officer position appropriate for assignment may be available, and the disability Retiree may be able to perform duty in such position, an independent medical examination or examinations shall be performed at the Board's expense by a physician or physicians selected by the Board. A job description and physical or psychological requirements necessary to perform the position shall be provided to the independent medical examiner(s). F.After receipt of the report or reports of the independent medical examiner(s), other medical evidence and determination of job availability, the Board shall determine whether disability benefits shall continue. A hearing, pursuant to the Claims Procedures (Rule 14), shall be set to determine whether or not the disability retiree continues to be eligible for disability benefits. RULE 18 SURVEILLANCE 18.1 SURVEILLANCE Any Trustee who has reason to believe that a disability Retiree may be recovered from his disability and again able to perform useful and efficient service as a Police Officer and who further reasonably believes that surveillance of the Retiree, including the production of video tapes of the Retiree, will help to establish the fact of the recovery, may authorize the Board's General Counsel to arrange for such surveillance. Surveillance of disability applicants may also be authorized by any Trustee who reasonably believes that such surveillance will assist the Board in determining an applicant's ability to perform useful and efficient service as a Police Officer. The cost of any surveillance authorized by any Trustee shall not exceed $10,000.00. -31- RULE 19 INSURANCE PREMIUM DEDUCTIONS 19.1 INSURANCE PREMIUM DEDUCTION AUTHORIZATION A.As permitted by Florida Statute 185.05(6), upon the retiree's written request, the Board of Trustees hereby authorizes the Custodian or Board designee to withhold from a retiree's monthly retirement payment those funds that are necessary to pay premiums for certain insurance policies. B.Any retiree requesting such deduction under this policy may be required, as a pre- requisite, to be receiving the payment of his monthly retirement benefits via direct deposit. C.In order to participate in premium payments under this policy, the retiree shall be required to complete and submit all such forms as may be required to effectuate this benefit by the administrative assistant, plan custodian, and insurance carriers. D.Requests to begin such deductions shall be effective as soon as reasonably possible. Once elected, benefits deductions shall continue until such time as the retiree deceases or submits a termination request form to the administrative assistant or Board designee. Request for termination of deductions under this policy must be on a form obtained from the Administrative Assistant or Board designee and shall be effective as soon as reasonably possible. E.A retiree requesting a deduction under this policy shall be required to have such deduction be made in an amount to cover the total premium for all eligible insurance benefits. Partial premium payments may not be made through the use of pension funds and individual premiums may not be paid by separate means. F.Any insurance premiums paid in accordance with this policy shall be paid on a regularly recurring schedule. G.Premium payments made under this policy may only be made in equal monthly installments for each benefit year or the remainder of any benefit year as the case may be. 19.2 TAX-FREE PAYMENT OF INSURANCE PREMIUMS As of January 1, 2023, retired eligible Public Safety Officers can exclude from gross income for tax purposes up to $3,000.00 of income which was used by the retired eligible Public Safety -32- Officer for the payment of health insurance premiums. This exclusion is claimed by the eligible Public Safety Officer on their personal income tax forms. While participating in premium deductions under this policy, retired police officers, as defined in Rule 19.3 below, may designate that a portion of their premiums for eligible health insurance or other qualified health insurance premiums as specified by the Pension Protection Act of 2006 (PPA) be paid on a tax free basis up to $3,000.00 annually (or the then current IRS allowable limits). A.The pension plan custodian must make the premium payment payable directly to the provider of the qualified health insurance. B.Retirees cannot receive any such tax free amounts as reimbursements. C.This eligibility does not extend to joint annuitants, survivor annuitants, or beneficiaries. D.Tax free payments may not be made on a lump sum basis but rather must be paid in level monthly installments during the benefit year or remainder thereof. E.All qualified insurance premiums will accumulate as they are paid during the taxable year until the maximum tax free benefit is achieved. After that, monthly group insurance benefit premiums will continue to be deducted on an after tax basis. F.Participants shall be required to sign an agreement and certify that they are eligible retired police officers and that they are not having tax free deductions for qualified health insurance premiums taken from any other retirement benefit plan. G.Once a retiree requests to participate in the tax free provisions of this policy, such election shall remain in effect continuously until revoked in writing and in compliance with all requirements of this policy. H.A retiree may only use the tax free provisions of this policy to defray the actual costs of purchasing qualified insurance products. Tax free pension annuity deductions for qualified health insurance premiums may not be made in excess of the actual monthly insurance premiums due. -33- 19.3 RETIREES WHO ARE ELIGIBLE FOR THE TAX-FREE PAYMENT OF QUALIFIED INSURANCE PREMIUMS In order to be eligible for coverage under the pre-tax policy, the retiree must be a retired "public safety officer" as defined by 42U.S.C. 3796b(9)(A) and must meet all of the following conditions: A.Must have been a police officer at the time of separation from employment. B.Must have retired from City service as a Normal Retirement or Disability Retirement. Persons receiving terminated vested benefits are not eligible. C.Must be receiving a monthly retirement benefit from the Pension Fund. SEBAS P Op Rules.10-18-24 -34- City of Sebastian Police Officers' Retirement Plan Quarterly Performance Summary As of December 31, 2024 David Wheeler, CIMAâ, CFPâ, CRPSâ Managing Director - Wealth Management Institutional Consulting Director Alternative Investment Director Corporate Retirement Director David.A.Wheeler@msgraystone.com (813) 227-2178 Theodore J. (TJ) Loew, CFAâ Institutional Consultant Theodore.Loew@msgraystone.com (813) 227-2088 Scott Owens, CFAâ, CIMAâ Managing Director - Wealth Management Institutional Consulting Director Impact Investing Director Alternative Investment Director Scott.Owens@msgraystone.com (813) 227-2027 City of Sebastian Police Officers' Retirement Plan Goal Review as of December 31, 2024 Goals: General Objectives 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, fix ed 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 Objectives 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 Targe t 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 U.S. Aggregate, 5.00% Dow Jones Brookfield Infrastruc ture 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 p ortfolios 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 ass umed actuarial rate of return over the longer term. This absolute return objective will be evaluated in the context of the prevailing investment mar ket 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: September 2023 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 guarantee of future results. Page 2 Timeline: •November 2024: Replaced: International Value Manager •October 2024: •International Value Manager Search •Large-Cap Growth Manager Search •July 2024: Removed Large Cap Growth Manager •April 2024: Large-Cap Growth Manager Search •January 2024: •Large-Cap Growth Manager Search •September 2023: Investment Policy Statement •March 2023: Added: Short-Term Fixed Income Manager •January 2023: Replaced: International Growth Manager •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 City of Sebastian Police Officers' Retirement Plan Timeline Review as of December 31, 2024 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 U.S. Equity Market % Returns for the Period Ending December 31, 2024 S&P 500 Sector % Returns for the Period Ending December 31, 2024 Quarter to Date Year to Date 12 Months Three Years (annualized) Five Years (annualized) Seven Years (annualized) Ten Years (annualized) S&P 500 Index 2.41 25.02 25.02 8.94 14.52 13.83 13.10 Dow Jones Industrial Average 0.93 14.99 14.99 7.56 10.55 10.39 11.57 Russell 3000 Index 2.63 23.81 23.81 8.01 13.86 13.16 12.55 Russell 3000 Value Index (1.94)13.98 13.98 5.41 8.60 8.26 8.40 Russell 3000 Growth Index 6.82 32.46 32.46 9.94 18.25 17.40 16.22 Russell 1000 Index 2.75 24.51 24.51 8.41 14.28 13.58 12.87 Russell 1000 Value Index (1.98)14.37 14.37 5.63 8.68 8.41 8.49 Russell 1000 Growth Index 7.07 33.36 33.36 10.48 18.96 18.08 16.78 Russell Midcap Index 0.62 15.34 15.34 3.79 9.92 9.65 9.63 Russell Midcap Value Index (1.75)13.07 13.07 3.88 8.59 7.72 8.10 Russell Midcap Growth Index 8.14 22.10 22.10 4.04 11.47 12.08 11.54 Russell 2000 Index 0.33 11.54 11.54 1.24 7.40 6.91 7.82 Russell 2000 Value Index (1.06)8.06 8.06 1.94 7.29 6.13 7.14 Russell 2000 Growth Index 1.70 15.16 15.16 0.21 6.86 7.17 8.09 Quarter to Date Consumer Discretionary 14.25 Communication Services 8.87 Financials 7.09 Technology 4.84 Industrials (2.27) Energy (2.44) Consumer Staples (3.26) Utilities (5.51) Real Estate (7.94) Health Care (10.30) Materials (12.42) City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2024 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 4 Developed Markets Equity % Returns for the Period Ending December 31, 2024 U.S. Dollar Local Currency Emerging Markets Equity % Returns for the Period Ending December 31, 2024 U.S. Dollar Local Currency Quarter to Date Year to Date 12 Months 3 Years 5 Years Regional and Other Multi-Country Indices MSCI EAFE (8.11)3.82 3.82 1.65 4.73 MSCI Europe (9.74)1.79 1.79 1.20 4.90 MSCI Far East (3.68)9.13 9.13 2.49 4.28 MSCI Pacific ex. Japan (9.13)4.59 4.59 1.55 3.15 MSCI The World (0.07)19.20 19.20 6.85 11.70 MSCI World ex. U.S.(7.43)4.70 4.70 1.91 5.10 National Indices MSCI Hong Kong (9.80)0.08 0.08 (6.68)(3.74) MSCI Ireland (12.44)15.07 15.07 2.10 5.99 MSCI Japan (3.57)8.68 8.68 3.18 5.19 MSCI Singapore N/A N/A N/A N/A N/A Quarter to Date Year to Date 12 Months 3 Years 5 Years (0.57)11.84 11.84 6.87 8.07 (2.81)8.43 8.43 4.71 6.83 4.78 19.97 19.97 11.83 10.97 (1.03)12.24 12.24 5.32 5.06 2.02 21.57 21.57 9.19 13.30 0.02 13.03 13.03 7.16 8.42 (9.80)(0.42)(0.42)(6.78)(3.79) (5.63)22.76 22.76 5.34 7.72 5.94 21.15 21.15 14.45 13.25 8.58 36.10 36.10 7.73 4.19 Quarter to Date Year to Date 12 Months 3 Years 5 Years Regional and Other Multi-Country Indices MSCI EM (7.84)8.05 8.05 (1.48)2.10 National Indices MSCI China (7.66)19.68 19.68 (5.92)(3.29) MSCI Malaysia (6.85)20.75 20.75 3.17 1.31 MSCI Taiwan 3.39 35.07 35.07 7.93 17.76 MSCI Thailand (10.06)1.62 1.62 (1.36)(3.42) Quarter to Date Year to Date 12 Months 3 Years 5 Years (4.24)13.70 13.70 2.08 4.95 (6.99)19.76 19.76 (5.25)(3.07) 1.01 17.50 17.50 5.63 3.13 7.10 44.28 44.28 14.21 19.88 (10.06)1.62 1.62 (1.36)(3.42) City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2024 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 5 Fixed Income % Returns for the Period Ending December 31, 2024 Quarter to Date Year to Date 12 Months Three Years (annualized) Five Years (annualized) Seven Years (annualized) Ten Years (annualized) U.S. Fixed Income 90-Day T-Bills 1.23 5.45 5.45 4.05 2.54 2.40 1.79 Bloomberg US Aggregate (3.06)1.25 1.25 (2.41)(0.33)0.97 1.35 Bloomberg Credit (3.04)2.03 2.03 (2.20)0.23 1.72 2.29 Bloomberg Govt/Credit (3.08)1.18 1.18 (2.58)(0.21)1.12 1.50 Bloomberg Government (3.10)0.63 0.63 (2.80)(0.63)0.62 0.85 Bloomberg High Yield 0.18 8.19 8.19 2.92 4.20 4.65 5.16 Bloomberg Intermediate Govt/Credit (1.60)3.00 3.00 (0.17)0.86 1.69 1.71 Bloomberg Long Govt/Credit (7.42)(4.15)(4.15)(9.20)(3.26)(0.49)0.99 Bloomberg Mortgage Backed (3.16)1.20 1.20 (2.13)(0.74)0.49 0.91 Bloomberg Municipal (1.22)1.05 1.05 (0.55)0.99 1.94 2.25 Global Fixed Income Merrill Lynch Global High Yield (1.14)7.50 7.50 1.89 2.98 3.51 4.43 Bloomberg Global Treasury ex. US (8.29)(6.98)(6.98)(7.77)(4.67)(2.95)(1.60) Bloomberg Capital Majors ex. U.S.(8.84)(8.20)(8.20)(9.51)(5.99)(3.81)(2.10) City of Sebastian Police Officers' Retirement Plan Capital Markets Returns as of December 31, 2024 Past Performance is not a guarantee of future results. Indices are not available for direct investment. Source: PARis Page 6 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY MARKETS LIBRARY Global Yield Differentials Source: Bloomberg, Morgan Stanley Wealth Management GIO. Note: Real yields for the US, Germany, and Japan is the respective 10-year inflation-linked bond. China is the nominal yield minus the annual CPI inflation rate. Past performance is no guarantee of future results. Estimates of future performance are based on assumptions that may not be realized. This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications in the full performance report. 10-Year Government Bond Yields 10-Year Government Bond Yield Differentials -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 1990 1995 2000 2005 2010 2015 2020 10-Year UST - Bund Yield Differential 10-Year UST - JGB Yield Differential 1.90% 0.29% -0.37% 1.95% 4.15% 2.11% 1.05% 1.95% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% US Germany Japan China Real Nominal As of December 6, 2024 As of December 6, 2024 Page 7 WEALTH MANAGEMENT GLOBAL INVESTMENT OFFICE | CHARTBOOK | MONTHLY MARKETS LIBRARY US Treasury Yield Curves US Treasury Yield Curves Comparing 2022, 2023, and Currently 4.8% 4.7% 4.4% 4.2% 4.0%4.0%3.9% 4.1% 4.0% 5.2% 4.8% 4.2% 4.0% 3.8%3.9% 3.9% 4.2% 4.0% 4.3% 4.1% 4.2% 4.3%4.4%4.5% 4.6% 4.9%4.8% 3% 4% 4% 5% 5% 6% 6% 2/ 1 / 2 0 2 5 9/ 1 / 2 0 2 5 4/ 1 / 2 0 2 6 11 / 1 / 2 0 … 6/ 1 / 2 0 2 7 1/ 1 / 2 0 2 8 8/ 1 / 2 0 2 8 3/ 1 / 2 0 2 9 10 / 1 / 2 0 … 5/ 1 / 2 0 3 0 12 / 1 / 2 0 … 7/ 1 / 2 0 3 1 2/ 1 / 2 0 3 2 9/ 1 / 2 0 3 2 4/ 1 / 2 0 3 3 11 / 1 / 2 0 … 6/ 1 / 2 0 3 4 1/ 1 / 2 0 3 5 8/ 1 / 2 0 3 5 3/ 1 / 2 0 3 6 10 / 1 / 2 0 … 5/ 1 / 2 0 3 7 12 / 1 / 2 0 … 7/ 1 / 2 0 3 8 2/ 1 / 2 0 3 9 9/ 1 / 2 0 3 9 4/ 1 / 2 0 4 0 11 / 1 / 2 0 … 6/ 1 / 2 0 4 1 1/ 1 / 2 0 4 2 8/ 1 / 2 0 4 2 3/ 1 / 2 0 4 3 10 / 1 / 2 0 … 5/ 1 / 2 0 4 4 12 / 1 / 2 0 … 7/ 1 / 2 0 4 5 2/ 1 / 2 0 4 6 9/ 1 / 2 0 4 6 4/ 1 / 2 0 4 7 11 / 1 / 2 0 … 6/ 1 / 2 0 4 8 1/ 1 / 2 0 4 9 8/ 1 / 2 0 4 9 3/ 1 / 2 0 5 0 10 / 1 / 2 0 … 5/ 1 / 2 0 5 1 12 / 1 / 2 0 … 7/ 1 / 2 0 5 2 2/ 1 / 2 0 5 3 9/ 1 / 2 0 5 3 4/ 1 / 2 0 5 4 11 / 1 / 2 0 … December 30, 2022 December 29, 2023 December 31, 2024 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 security or other financial instrument or to participate in any trading strategy. Please refer to important information, disclosures and qualifications in the full performance report. As of December 31, 2024 Page 8 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 6.0 12.0 18.0 -6.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Total Fund Policy Index 1 90-Day T-Bills -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Re turn (%) -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Inception 02/01/2011 Total Fund -0.01 -0.01 10.89 3.15 7.76 7.38 7.32 7.54 Policy Index 1 -0.55 -0.55 11.62 3.12 7.44 7.47 7.51 8.12 Differences 0.54 0.54 -0.74 0.02 0.33 -0.09 -0.19 -0.58 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Inception 02/01/2011 Total Fund Beginning Market Value 25,277 25,277 23,127 23,271 17,352 14,445 11,641 7,730 Net Contributions ---272 74 688 1,847 2,127 3,217 Fees/Expenses -33 -33 -100 -327 -573 -802 -993 -1,185 Income 151 151 525 1,458 2,221 2,952 3,852 4,712 Gain/Loss -161 -161 1,954 759 5,547 6,792 8,607 10,759 Ending Market Value 25,234 25,234 25,234 25,234 25,234 25,234 25,234 25,234 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Total Fund 7.54 10.35 0.97 -19.15 97.72 101.38 -0.32 0.63 0.97 02/01/2011 Policy Index 1 8.12 10.46 1.00 -19.88 100.00 100.00 0.00 0.68 1.00 02/01/2011 90-Day T-Bills 1.30 0.52 0.00 0.00 4.58 -4.71 1.29 N/A 0.00 02/01/2011 as of December 31, 2024 Total Fund - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 9 Manager vs Benchmark: Return As of Dec 2024 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 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 Re t u r n Manager vs Benchmark: Return As of Dec 2024 1 QUARTER 1 YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS SINCE DEC 31 2002 Sebastian Police (Gross)(0.01)10.89 3.15 7.76 7.38 7.32 6.71 Sebastian Police (Net)(0.14)10.43 2.63 7.16 6.72 6.69 6.05 Sebastian Police Policy Index (0.55)11.62 3.12 7.23 7.33 7.41 7.14 City of Sebastian Police Officers' Retirement Plan Historic Returns as of December 31, 2024 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 10 Manager Performance January 2020 - December 2024 Sebastian Police (Gross)Sebastian Police Policy Index 12/2019 12/2020 12/2021 12/2022 12/2023 12/2024 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 Cumulative Excess Return vs. Benchmark 12/2019 12/2020 12/2021 12/2022 12/2023 12/2024 0 10 Risk / Return January 2020 - December 2024 Sebastian Police (Gross)Sebastian Police Policy Index FTSE 3-Month Treasury Bill 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Standard Deviation (%) 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 Re t u r n Risk & Return Measurements January 2020 - December 2024 RETURN EXCESS RETURN STANDARD DEVIATION BETA MAXIMUM DRAWDOWN UP CAPTURE DOWN CAPTURE ALPHA SHARPE RATIO R- SQUARED Sebastian Police (Gross)7.76 0.53 15.27 0.97 (19.15)100.57 96.02 0.72 0.34 98.61 Sebastian Police Policy Index 7.23 0.00 15.67 1.00 (19.88)100.00 100.00 0.00 0.30 100.00 City of Sebastian Police Officers' Retirement Plan Risk / Return Analysis - Sebastian Police (Gross) as of December 31, 2024 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 Executive Summary Policy Target In Policy Outside Policy 0.0%15.0%30.0%45.0%60.0%75.0%90.0%105.0% Receipt & Disbursement $1,308.6K (5.2%) 0.0% - 10.0% Alternatives $1,888.5K (7.5%) 0.0% - 20.0% Fixed Income $5,034.3K (20.0%) 20.0% - 35.0% Global Equity $17,002.8K (67.4%) 40.0% - 70.0% 0.0% 10.0% 25.0% 65.0% City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2024 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 Executive Summary Policy Target In Policy Outside Policy 0.0%8.0%16.0%24.0%32.0%40.0%48.0%48.0% Receipt & Disbursement $1,308.6K (5.2%) 0.0% - 10.0% Lazard - Global Infrastructure $1,204.7K (4.8%) 0.0% - 10.0% Intercontinental - Private Real Estate $683.7K (2.7%) 0.0% - 10.0% Fixed Income $5,034.3K (20.0%) 20.0% - 35.0% ClearBridge - International Growth $1,826.0K (7.2%) 5.0% - 10.0% Vanguard - International High Dividend Yield ETF $1,191.3K (4.7%) 2.5% - 7.5% Fiera Capital - SMID Growth $1,994.6K (7.9%) 2.5% - 10.5% Boston Partners - SMID Value $3,150.0K (12.5%) 2.5% - 15.0% iShares - Russell 1000 Growth ETF $4,704.5K (18.6%) 12.5% - 22.5% Highland - Large Cap Value $4,136.5K (16.4%) 12.5% - 22.5% 0.0% 5.0% 5.0% 25.0% 7.5% 5.0% 8.0% 12.0% 16.3% 16.3% City of Sebastian Police Officers' Retirement Plan Asset Allocation Compliance as of December 31, 2024 The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 13 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 -8.0 -16.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Since Inception Highland - Large Cap Value Russell 1000 Value 90-Day T-Bills -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.0 Return (%) -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Highland - Large Cap Value -2.19 -2.19 14.36 5.77 8.54 8.36 9.09 Russell 1000 Value -1.98 -1.98 14.37 5.63 8.68 8.41 8.94 Differences -0.21 -0.21 -0.01 0.14 -0.15 -0.05 0.16 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Highland - Large Cap Value Beginning Market Value 4,243 4,243 3,639 4,560 3,813 3,761 4,342 Net Contributions -1 -1 -2 -964 -1,234 -1,678 -2,629 Fees/Expenses -13 -13 -23 -63 -100 -147 -147 Income 21 21 88 281 457 650 691 Gain/Loss -113 -113 434 322 1,201 1,551 1,879 Ending Market Value 4,137 4,137 4,137 4,137 4,137 4,137 4,137 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Highland - Large Cap Value 9.09 17.60 1.02 -28.00 102.26 102.23 0.00 0.45 0.99 08/01/2017 Russell 1000 Value 8.94 17.08 1.00 -26.73 100.00 100.00 0.00 0.45 1.00 08/01/2017 90-Day T-Bills 2.33 0.57 0.00 0.00 4.91 -4.76 2.33 N/A 0.00 08/01/2017 as of December 31, 2024 Highland - Large Cap Value - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 14 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 15.0 30.0 45.0 60.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years Since Inception iShares - Russell 1000 Growth ETF Russell 1000 Growth 90-Day T-Bills -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Return (%) -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date iShares - Russell 1000 Growth ETF 7.22 7.22 32.59 10.13 14.37 01/01/2021 Russell 1000 Growth 7.07 7.07 33.36 10.48 14.53 Differences 0.15 0.15 -0.77 -0.35 -0.16 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date iShares - Russell 1000 Growth ETF 01/01/2021 Beginning Market Value 4,388 4,388 1,886 2,022 1,582 Net Contributions --1,997 1,861 1,857 Fees/Expenses ----- Income 5 5 18 44 54 Gain/Loss 311 311 804 777 1,211 Ending Market Value 4,704 4,704 4,704 4,704 4,704 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date iShares - Russell 1000 Growth ETF 14.37 18.85 1.00 -30.80 99.38 99.61 -0.12 0.66 1.00 01/01/2021 Russell 1000 Growth 14.53 18.87 1.00 -30.66 100.00 100.00 0.00 0.66 1.00 01/01/2021 90-Day T-Bills 3.04 0.69 0.01 0.00 5.67 -4.91 2.91 N/A 0.05 01/01/2021 as of December 31, 2024 iShares - Russell 1000 Growth ETF - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 15 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 -8.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Since Inception Boston Partners - SMID Value Russell 2500 VL 90-Day T-Bills -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.0 Return (%) -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 %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Boston Partners - SMID Value 0.43 0.43 15.51 7.19 10.62 8.73 9.26 Russell 2500 VL -0.26 -0.26 10.98 3.81 8.44 7.17 7.79 Differences 0.69 0.69 4.53 3.38 2.19 1.56 1.47 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Boston Partners - SMID Value Beginning Market Value 3,147 3,147 2,759 2,849 897 720 672 Net Contributions -4 -4 -10 -213 1,034 1,153 1,153 Fees/Expenses -7 -7 -26 -73 -104 -120 -122 Income 11 11 45 137 193 219 225 Gain/Loss 2 2 382 450 1,130 1,178 1,221 Ending Market Value 3,150 3,150 3,150 3,150 3,150 3,150 3,150 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Boston Partners - SMID Value 9.26 22.47 1.02 -38.80 102.76 97.44 1.39 0.41 0.97 08/01/2017 Russell 2500 VL 7.79 21.71 1.00 -34.64 100.00 100.00 0.00 0.35 1.00 08/01/2017 90-Day T-Bills 2.33 0.57 0.00 0.00 3.51 -4.50 2.34 N/A 0.00 08/01/2017 as of December 31, 2024 Boston Partners - SMID Value - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 16 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 24.0 -8.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Since Inception Fiera Capital - SMID Growth Russell 2500 GR 90-Day T-Bills -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 Return (%) -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Fiera Capital - SMID Growth 2.33 2.33 6.41 1.83 12.54 11.83 12.89 Russell 2500 GR 2.43 2.43 13.90 -0.02 8.08 8.85 9.87 Differences -0.10 -0.10 -7.49 1.84 4.46 2.98 3.02 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Fiera Capital - SMID Growth Beginning Market Value 1,953 1,953 1,890 1,821 868 750 669 Net Contributions -1 -1 -2 100 392 367 367 Fees/Expenses -4 -4 -15 -38 -59 -71 -72 Income 3 3 13 37 67 77 78 Gain/Loss 43 43 108 75 726 871 952 Ending Market Value 1,995 1,995 1,995 1,995 1,995 1,995 1,995 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Fiera Capital - SMID Growth 12.89 20.60 0.92 -26.32 95.21 82.25 3.50 0.58 0.94 08/01/2017 Russell 2500 GR 9.87 21.72 1.00 -32.84 100.00 100.00 0.00 0.44 1.00 08/01/2017 90-Day T-Bills 2.33 0.57 0.00 0.00 3.37 -4.77 2.33 N/A 0.00 08/01/2017 as of December 31, 2024 Fiera Capital SMID Growth - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 17 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 -0.8 -1.6 -2.4 -3.2 -4.0 R eturn Since Inception Vanguard - International High Dividend Yield ETF FTSE AWxUS H Div Yd USRIC NR USD 90-Day T-Bills -3.5 -2.8 -2.1 -1.4 -0.7 0.0 0.7 1.4 2.1 Return (%) -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Risk (Standard Deviation %) Inception 12/1/2024 Vanguard - International High Dividend Yield ETF -2.17 FTSE AWxUS H Div Yd USRIC NR USD -2.28 Differences 0.12 Inception 12/1/2024 Vanguard - International High Dividend Yield ETF Beginning Market Value 1,218 Net Contributions - Fees/Expenses - Income 17 Gain/Loss -43 Ending Market Value 1,191 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Vanguard - International High Dividend Yield ETF -2.17 0.00 N/A -2.17 N/A 94.96 N/A N/A N/A 12/01/2024 FTSE AWxUS H Div Yd USRIC NR USD -2.28 0.00 N/A -2.28 N/A 100.00 N/A N/A N/A 12/01/2024 90-Day T-Bills 0.39 0.00 N/A 0.00 N/A -17.23 N/A N/A N/A 12/01/2024 as of December 31, 2024 Vanguard - International High Dividend Yield ETF - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 18 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 8.0 16.0 -8.0 -16.0 R eturn Current Quarter Fiscal YTD 1 Year Since Inception ClearBridge - International Growth MSCI EAFE Net 90-Day T-Bills 4.8 5.4 6.0 6.6 7.2 7.8 8.4 9.0 Return (%) -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year Inception 2/1/2023 ClearBridge - International Growth -6.97 -6.97 7.85 7.76 MSCI EAFE Net -8.11 -8.11 3.82 6.86 Differences 1.14 1.14 4.02 0.90 Current Quarter Fiscal YTD 1 Year Inception 2/1/2023 ClearBridge - International Growth Beginning Market Value 1,969 1,969 1,710 1,548 Net Contributions -2 -2 -5 53 Fees/Expenses -4 -4 -14 -23 Income 7 7 29 56 Gain/Loss -144 -144 105 191 Ending Market Value 1,826 1,826 1,826 1,826 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date ClearBridge - International Growth 7.76 13.87 1.01 -11.40 105.17 101.22 0.91 0.23 0.86 02/01/2023 MSCI EAFE Net 6.86 12.71 1.00 -10.88 100.00 100.00 0.00 0.17 1.00 02/01/2023 90-Day T-Bills 5.39 0.11 0.00 0.00 13.08 -14.24 5.37 N/A 0.05 02/01/2023 as of December 31, 2024 ClearBridge - International Growth - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 19 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 3.0 6.0 9.0 -3.0 R eturn Current Quarter Fiscal YTD 1 Year Since Inception Genter - Short-Term Fixed Income BB US Agg Gov/Credit 1-5 Y 90-Day T-Bills 3.2 3.6 4.0 4.4 4.8 5.2 5.6 6.0 6.4 Return (%) -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year Inception 4/1/2023 Genter - Short-Term Fixed Income -0.52 -0.52 4.50 4.31 BB US Agg Gov/Credit 1-5 Y -0.71 -0.71 3.76 3.88 Differences 0.19 0.19 0.75 0.43 Current Quarter Fiscal YTD 1 Year Inception 4/1/2023 Genter - Short-Term Fixed Income Beginning Market Value 2,908 2,908 2,770 2,260 Net Contributions -880 -880 -882 -453 Fees/Expenses -2 -2 -3 -3 Income 38 38 108 147 Gain/Loss -54 -54 17 60 Ending Market Value 2,010 2,010 2,010 2,010 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Genter - Short-Term Fixed Income 4.31 2.66 0.96 -1.06 100.15 82.70 0.58 -0.41 0.97 04/01/2023 BB US Agg Gov/Credit 1-5 Y 3.88 2.73 1.00 -1.11 100.00 100.00 0.00 -0.55 1.00 04/01/2023 90-Day T-Bills 5.47 0.08 0.01 0.00 58.23 -72.91 5.42 N/A 0.15 04/01/2023 as of December 31, 2024 Genter - Short-Term Fixed Income - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 3.0 6.0 -3.0 -6.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Since Inception Highland - Fixed Income Bloomberg US Aggregate 90-Day T-Bills 0.3 0.6 0.9 1.2 1.5 1.8 2.1 2.4 2.7 3.0 Return (%) -1.6 -0.8 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 6.4 7.2 8.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Highland - Fixed Income -2.19 -2.19 3.45 -0.74 1.18 2.02 2.03 Bloomberg US Aggregate -3.06 -3.06 1.25 -2.41 -0.33 0.97 1.02 Differences 0.87 0.87 2.20 1.67 1.50 1.05 1.00 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 08/01/2017 Highland - Fixed Income Beginning Market Value 2,530 2,530 1,951 4,547 3,898 3,904 3,980 Net Contributions 560 560 1,016 -1,196 -850 -1,126 -1,238 Fees/Expenses -3 -3 -6 -28 -54 -89 -89 Income 14 14 67 282 517 756 816 Gain/Loss -76 -76 -4 -581 -486 -422 -446 Ending Market Value 3,024 3,024 3,024 3,024 3,024 3,024 3,024 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Highland - Fixed Income 2.03 4.94 0.74 -12.96 84.62 67.68 1.27 -0.04 0.70 08/01/2017 Bloomberg US Aggregate 1.02 5.55 1.00 -17.18 100.00 100.00 0.00 -0.21 1.00 08/01/2017 90-Day T-Bills 2.33 0.57 0.02 0.00 15.30 -16.32 2.31 N/A 0.02 08/01/2017 as of December 31, 2024 Highland - Fixed Income - Executive Summary City of Sebastian Police Officers' Retirement Plan 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 21 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 5.0 10.0 -5.0 -10.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Since Inception Intercontinental - Private Real Estate NCREIF NFI ODCE Value Weighted 90-Day T-Bills 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Return (%) -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 10/01/2017 Intercontinental - Private Real Estate 0.00 0.00 -4.77 -4.72 1.82 4.22 4.47 NCREIF NFI ODCE Value Weighted 0.00 0.00 -2.57 -2.70 2.63 3.81 3.97 Differences 0.00 0.00 -2.21 -2.02 -0.81 0.41 0.49 Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years Inception 10/01/2017 Intercontinental - Private Real Estate Beginning Market Value 684 684 735 848 733 115 112 Net Contributions ---11 -45 -78 423 423 Fees/Expenses ---5 -13 -49 -69 -70 Income ------- Gain/Loss ---35 -106 78 215 219 Ending Market Value 684 684 684 684 684 684 684 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Intercontinental - Private Real Estate 4.47 7.78 1.13 -24.96 117.78 123.05 0.04 0.29 0.88 10/01/2017 NCREIF NFI ODCE Value Weighted 3.97 6.46 1.00 -18.74 100.00 100.00 0.00 0.26 1.00 10/01/2017 90-Day T-Bills 2.36 0.58 -0.04 0.00 26.91 -13.72 2.51 N/A 0.17 10/01/2017 as of December 31, 2024 Intercontinental - Private Real Estate - Executive Summary City of Sebastian Police Officers' Retirement Plan The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 22 Manager Performance Chart Manager Risk & Return Modern Portfolio Statistics Historic Asset Growth Manager Annualized Performance 0.0 6.0 12.0 18.0 -6.0 -12.0 R eturn Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Lazard - Global Infrastructure DJ Brookfield Gbl Infra Comp TR 90-Day T-Bills 0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.0 Return (%) -6.0 -3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 24.0 Risk (Standard Deviation %) Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Lazard - Global Infrastructure -2.00 -2.00 6.71 5.44 8.88 01/01/2021 DJ Brookfield Gbl Infra Comp TR -2.15 -2.15 11.26 3.97 7.82 Differences 0.15 0.15 -4.55 1.47 1.06 Current Quarter Fiscal YTD 1 Year 3 Years Since Inception Inception Date Lazard - Global Infrastructure 01/01/2021 Beginning Market Value 1,229 1,229 1,129 1,166 973 Net Contributions ----140 -140 Fees/Expenses ----- Income 23 23 50 238 307 Gain/Loss -48 -48 26 -60 65 Ending Market Value 1,205 1,205 1,205 1,205 1,205 Return Standard Deviation Beta Maximum Drawdown Up Capture Down Capture Alpha Sharpe Ratio R-Squared Inception Date Lazard - Global Infrastructure 8.88 12.57 0.73 -12.82 78.49 65.38 2.95 0.50 0.83 01/01/2021 DJ Brookfield Gbl Infra Comp TR 7.82 15.74 1.00 -17.19 100.00 100.00 0.00 0.37 1.00 01/01/2021 90-Day T-Bills 3.04 0.69 0.00 0.00 5.87 -7.56 3.04 N/A 0.00 01/01/2021 as of December 31, 2024 Lazard - Global Infrastructure - Executive Summary City of Sebastian Police Officers' Retirement Plan The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 23 GUIDELINES In Compliance 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 Minimum Commercial Paper ST Rating (P-3/A-3/F3)Yes Minimum Corporate Bonds and ABS LT Rating (BBB-/Baa3/BBB-)Yes Minimum Municipal Bonds LT Rating (A-/A3/A-)Yes Minimum 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 No Total Alternatives within specified range Yes Infrastructure Allocation within specified range Yes Private Real Estate Allocation within specified range Yes Cash & Equivalents Allocation within specified range Yes Prohibited Investments Is the portfolio compliant with the list of prohibited investments?Yes Permitted Investments Is the portfolio compliant with the list of permitted investments?Yes City of Sebastian Police Officers' Retirement System Compliance Checklist as of December 31, 2024 The prices, quotes, and statistics contained herein have been obtained from sources believed to be reliable, however, the accuracy cannot be guaranteed. Page 24 Allocation Market Value ($000) % Performance(%) Quarter To Date YTD Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 25,234 100.00 -0.01 (N/A)10.89 (N/A)-0.01 (N/A)10.89 (N/A)3.15 (N/A)7.76 (N/A)7.38 (N/A)7.32 (N/A)7.54 (N/A)02/01/2011 Total Fund (net)-0.14 (N/A)10.43 (N/A)-0.14 (N/A)10.43 (N/A)2.63 (N/A)7.16 (N/A)6.72 (N/A)6.69 (N/A)6.93 (N/A) Policy Index 1 -0.55 (N/A)11.62 (N/A)-0.55 (N/A)11.62 (N/A)3.12 (N/A)7.44 (N/A)7.47 (N/A)7.51 (N/A)8.12 (N/A) All Public Plans < $1B-Total Fund Median N/A N/A N/A N/A N/A N/A N/A N/A N/A All Public Plans-Total Fund Median N/A N/A N/A N/A N/A N/A N/A N/A N/A Domestic Equity Highland - Large Cap Value 4,137 16.39 -2.19 (N/A)14.36 (N/A)-2.19 (N/A)14.36 (N/A)5.77 (N/A)8.54 (N/A)8.36 (N/A)N/A 9.09 (N/A)08/01/2017 Highland - Large Cap Value (net)-2.49 (N/A)13.73 (N/A)-2.49 (N/A)13.73 (N/A)5.23 (N/A)7.99 (N/A)7.76 (N/A)N/A 8.53 (N/A) Russell 1000 Value -1.98 (N/A)14.37 (N/A)-1.98 (N/A)14.37 (N/A)5.63 (N/A)8.68 (N/A)8.41 (N/A)N/A 8.94 (N/A) IM U.S. Large Cap Value Equity (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A iShares - Russell 1000 Growth ETF 4,704 18.64 7.22 (17)32.59 (39)7.22 (17)32.59 (39)10.13 (26)N/A N/A N/A 14.37 (15)01/01/2021 iShares - Russell 1000 Growth ETF (net)7.22 (17)32.59 (39)7.22 (17)32.59 (39)10.13 (26)N/A N/A N/A 14.37 (15) Russell 1000 Growth 7.07 (18)33.36 (30)7.07 (18)33.36 (30)10.48 (23)N/A N/A N/A 14.53 (12) IM U.S. Large Cap Growth Equity (MF) Median 5.33 30.69 5.33 30.69 8.80 N/A N/A N/A 12.30 Boston Partners - SMID Value 3,150 12.48 0.43 (N/A)15.51 (N/A)0.43 (N/A)15.51 (N/A)7.19 (N/A)10.62 (N/A)8.73 (N/A)N/A 9.26 (N/A)08/01/2017 Boston Partners - SMID Value (net)0.21 (N/A)14.54 (N/A)0.21 (N/A)14.54 (N/A)6.25 (N/A)9.62 (N/A)7.68 (N/A)N/A 8.23 (N/A) Russell 2500 VL -0.26 (N/A)10.98 (N/A)-0.26 (N/A)10.98 (N/A)3.81 (N/A)8.44 (N/A)7.17 (N/A)N/A 7.79 (N/A) IM U.S. SMID Cap Value Equity (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A Fiera Capital - SMID Growth 1,995 7.90 2.33 (N/A)6.41 (N/A)2.33 (N/A)6.41 (N/A)1.83 (N/A)12.54 (N/A)11.83 (N/A)N/A 12.89 (N/A)08/01/2017 Fiera Capital - SMID Growth (net)2.15 (N/A)5.62 (N/A)2.15 (N/A)5.62 (N/A)1.07 (N/A)11.70 (N/A)11.00 (N/A)N/A 12.07 (N/A) Russell 2500 GR 2.43 (N/A)13.90 (N/A)2.43 (N/A)13.90 (N/A)-0.02 (N/A)8.08 (N/A)8.85 (N/A)N/A 9.87 (N/A) IM U.S. SMID Cap Growth Equity (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A International Equity Vanguard - International High Dividend Yield ETF 1,191 4.72 N/A N/A N/A N/A N/A N/A N/A N/A -2.17 (N/A)12/01/2024 Vanguard - International High Dividend Yield ETF (net)N/A N/A N/A N/A N/A N/A N/A N/A -2.17 (N/A) FTSE AWxUS H Div Yd USRIC NR USD N/A N/A N/A N/A N/A N/A N/A N/A -2.28 (N/A) MSCI EAFE Net N/A N/A N/A N/A N/A N/A N/A N/A -2.27 (N/A) IM International Large Cap Value Equity (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A ClearBridge - International Growth 1,826 7.24 -6.97 (N/A)7.85 (N/A)-6.97 (N/A)7.85 (N/A)N/A N/A N/A N/A 7.76 (N/A)02/01/2023 ClearBridge - International Growth (net)-7.16 (N/A)7.04 (N/A)-7.16 (N/A)7.04 (N/A)N/A N/A N/A N/A 7.03 (N/A) MSCI EAFE Net -8.11 (N/A)3.82 (N/A)-8.11 (N/A)3.82 (N/A)N/A N/A N/A N/A 6.86 (N/A) IM International Large Cap Growth Equity (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2024 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 City of Sebastian Police Officers' Retirement Plan Asset Allocation & Time Weighted Performance as of December 31, 2024 Allocation Market Value ($000) % Performance(%) Quarter To Date YTD Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Fixed Income Genter - Short-Term Fixed Income 2,010 7.97 -0.52 (N/A)4.50 (N/A)-0.52 (N/A)4.50 (N/A)N/A N/A N/A N/A 4.31 (N/A)04/01/2023 Genter - Short-Term Fixed Income (net)-0.63 (N/A)4.37 (N/A)-0.63 (N/A)4.37 (N/A)N/A N/A N/A N/A 4.22 (N/A) BB US Agg Gov/Credit 1-5 Y -0.71 (N/A)3.76 (N/A)-0.71 (N/A)3.76 (N/A)N/A N/A N/A N/A 3.88 (N/A) IM U.S. Short Duration Fixed Income (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A Highland - Fixed Income 3,024 11.98 -2.19 (N/A)3.45 (N/A)-2.19 (N/A)3.45 (N/A)-0.74 (N/A)1.18 (N/A)2.02 (N/A)N/A 2.03 (N/A)08/01/2017 Highland - Fixed Income (net)-2.31 (N/A)3.19 (N/A)-2.31 (N/A)3.19 (N/A)-1.04 (N/A)0.87 (N/A)1.66 (N/A)N/A 1.69 (N/A) Bloomberg US Aggregate -3.06 (N/A)1.25 (N/A)-3.06 (N/A)1.25 (N/A)-2.41 (N/A)-0.33 (N/A)0.97 (N/A)N/A 1.02 (N/A) IM U.S. Fixed Income (SA+CF) Median N/A N/A N/A N/A N/A N/A N/A N/A N/A Alternative Investments Intercontinental - Private Real Estate 684 2.71 0.00 -4.77 0.00 -4.77 -4.72 1.82 4.22 N/A 4.47 10/01/2017 Intercontinental - Private Real Estate (net)0.00 -5.50 0.00 -5.50 -5.20 0.59 2.89 N/A 3.14 NCREIF NFI ODCE Value Weighted 0.00 -2.57 0.00 -2.57 -2.70 2.63 3.81 N/A 3.97 NCREIF NFI ODCE (Net)0.00 -3.18 0.00 -3.18 -3.44 1.81 2.95 N/A 3.11 Bloomberg US Aggregate -3.06 1.25 -3.06 1.25 -2.41 -0.33 0.97 N/A 0.99 Lazard - Global Infrastructure 1,205 4.77 -2.00 (11)6.71 (72)-2.00 (11)6.71 (72)5.44 (13)N/A N/A N/A 8.88 (7)01/01/2021 Lazard - Global Infrastructure (net)-2.00 (11)6.71 (72)-2.00 (11)6.71 (72)5.44 (13)N/A N/A N/A 8.88 (7) DJ Brookfield Gbl Infra Comp TR -2.15 (12)11.26 (43)-2.15 (12)11.26 (43)3.97 (27)N/A N/A N/A 7.82 (15) IM Global Infrastructure (MF) Median -4.14 10.58 -4.14 10.58 3.15 N/A N/A N/A 6.51 Cash Receipt & Disbursement 1,309 5.19 0.98 4.98 0.98 4.98 3.40 2.09 1.91 N/A 1.93 08/01/2017 90-Day T-Bills 1.23 5.45 1.23 5.45 4.05 2.54 2.40 N/A 2.33 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 %Current Quarter Fiscal YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception Inception Date Total Fund 100.00 -0.17 -0.17 10.40 2.65 7.08 6.71 6.69 6.95 01/31/2011 Domestic Equity Highland - Large Cap Value 16.39 -2.49 -2.49 13.69 4.26 7.88 7.65 N/A 8.78 07/31/2017 iShares - Russell 1000 Growth ETF 18.64 7.22 7.22 29.85 10.98 N/A N/A N/A 14.76 12/31/2020 Boston Partners - SMID Value 12.48 0.21 0.21 14.49 5.93 10.85 9.70 N/A 9.95 07/31/2017 Fiera Capital - SMID Growth 7.90 2.15 2.15 5.60 1.30 10.56 10.22 N/A 11.17 07/31/2017 International Equity Vanguard - International High Dividend Yield ETF 4.72 N/A N/A N/A N/A N/A N/A N/A -2.17 11/30/2024 ClearBridge - International Growth 7.24 -7.16 -7.16 7.03 N/A N/A N/A N/A 7.15 01/31/2023 Fixed Income Genter - Short-Term Fixed Income 7.97 -0.80 -0.80 4.70 N/A N/A N/A N/A 4.61 03/31/2023 Highland - Fixed Income 11.98 -2.20 -2.20 2.46 -3.29 -0.13 1.01 N/A 1.09 07/31/2017 Alternative Investments Intercontinental - Private Real Estate 2.71 0.00 0.00 -5.50 -5.09 0.82 3.21 N/A 3.27 10/15/2017 Lazard - Global Infrastructure 4.77 -2.00 -2.00 6.69 5.09 N/A N/A N/A 8.74 12/31/2020 Cash Receipt & Disbursement 5.19 0.97 0.97 4.77 2.33 0.42 -0.51 N/A -0.46 07/31/2017 City of Sebastian Police Officers' Retirement Plan Asset Allocation & Net Dollar Weighted Performance (IRR) as of December 31, 2024 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 Policy Index 1 Weight (%) Feb-2011 S&P 500 Total Return 48.00 Bloomberg US Government/Credit 49.00 90-Day T-Bills 3.00 Jul-2011 S&P 500 Total Return 50.00 Bloomberg US Aggregate 40.00 MSCI EAFE Net 10.00 Jan-2016 S&P 500 Total Return 50.00 Bloomberg US Aggregate 40.00 MSCI EAFE Net 10.00 Jul-2017 Russell 1000 Value 21.25 Bloomberg US Aggregate 25.00 MSCI EAFE Net 5.00 Russell 1000 Growth 21.25 Russell 2500 VL 5.00 Russell 2500 GR 5.00 MSCI ACWI Ex USA NR USD 7.50 Alerian MLP TR 5.00 NCREIF NFI ODCE Value Weighted 5.00 Jan-2021 Russell 1000 Value 16.25 Russell 1000 Growth 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI EAFE Net 5.00 MSCI AC World ex US Net 7.50 Bloomberg US Aggregate 25.00 DJ Brookfield Gbl Infra Comp TR 5.00 NCREIF NFI ODCE Value Weighted 5.00 Policy Index 1 Weight (%) Feb-2023 Russell 1000 Value 16.25 Russell 1000 Growth 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI EAFE Net 5.00 MSCI EAFE Net 7.50 Bloomberg US Aggregate 25.00 DJ Brookfield Gbl Infra Comp TR 5.00 NCREIF NFI ODCE Value Weighted 5.00 Sep-2023 Russell 1000 Value 16.25 Russell 1000 Growth 16.25 Russell 2500 VL 12.00 Russell 2500 GR 8.00 MSCI EAFE Net 5.00 MSCI EAFE Net 7.50 BB US Agg Gov/Credit 1-5 Y 12.50 Bloomberg US Aggregate 12.50 DJ Brookfield Gbl Infra Comp TR 5.00 NCREIF NFI ODCE Value Weighted 5.00 City of Sebastian Police Officers' Retirement Plan As of December 31, 2024 Policy Index History The prices, quotes, or statistics contained herein have been obtained from sources believed to be reliable, however, its accuracy cannot be guaranteed. Past performance is not a guarantee of future results. Page 28 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 Page 29 Important Notes About This Report (Cont’d) Generally, investment advisory accounts are subject to an annual asset-based fee (the “Fee”) which is payable monthly in advance (some account types may be billed differently). In general, the Fee covers Morgan Stanley investment advisory services, custody of securities with Morgan Stanley, trade execution with or through Morgan Stanley or its affiliates, as well as compensation to any Morgan Stanley Financial Advisor. In addition, each account that is invested in a program that is eligible to purchase certain investment products, such as mutual funds, will also pay a Platform Fee (which is subject to a Platform Fee offset) as described in the applicable ADV brochure. Accounts invested in the Select UMA program may also pay a separate Sub-Manager fee, if applicable. If your account is invested in mutual funds or exchange traded funds (collectively “funds”), you will pay the fees and expenses of any funds in which your account is invested. Fees and expenses are charged directly to the pool of assets the fund invests in and are reflected in each fund’s share price. These fees and expenses are an additional cost to you and would not be included in the Fee amount in your account statements. The advisory program you choose is described in the applicable Morgan Stanley Smith Barney LLC ADV Brochure, available at www.morganstanley.com/ADV. Morgan Stanley or Executing Sub-Managers, as applicable, in some of Morgan Stanley’s Separately Managed Account (“SMA”) programs may effect transactions through broker-dealers other than Morgan Stanley or our affiliates. In such instance, you may be assessed additional costs by the other firm in addition to the Morgan Stanley and Sub-Manager fees. Those costs will be included in the net price of the security, not separately reported on trade confirmations or account statements. Certain Sub-Managers have historically directed most, if not all, of their trades to outside firms. Information provided by Sub-Managers concerning trade execution away from Morgan Stanley is summarized at: http://www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf www.morganstanley.com/wealth/investmentsolutions/pdfs/adv/sotresponse.pdf. For more information on trading and costs, please refer to the ADV Brochure for your program(s), available at www.morganstanley.com/ADV, or contact your Financial Advisor / Private Wealth Advisor. CRC 5082012 11/4/2022 Page 30 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 Page 31 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 Page 32 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 Page 33 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 subjectto interest rate risk and portfolio values can decline in value as interest rates rise and an investor can lose principal. High Yield Fixed Income: As well as being subject to risks relating to fixed income generally (see “Fixed Income”), high yield or "junk" bonds are considered speculative, have significantly higher credit and default risks (including loss of principal), and may be less liquid and more volatile than investment grade bonds. Clients should only invest in high yield strategies if this is consistent with their risk tolerance, and high yield investments should comprise only a limited part of a balanced portfolio. CRC 5082012 11/4/2022 Page 34 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. Important Notes About This Report (Cont’d) CRC 5082012 11/4/2022 Page 35 Managed Futures: Involve a high degree of risk, often involve leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Master Limited Partnerships (MLPs) are limited partnerships or limited liability companies whose interests (limited partnership or limited liability company units) are generally traded on securities exchanges like shares of common stock. Investment in MLPs entails different risks, including tax risks, than is the case for other types of investments. Currently, most MLPs operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. Depending on the ownership vehicle, MLP interests are subject to varying tax treatment. Important Notes About This Report (Cont’d) CRC 5082012 11/4/2022 Page 36 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 Page 37 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 Glossary (Cont’d) CRC 5082012 11/4/2022 Page 38 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. Glossary (Cont’d) CRC 5082012 11/4/2022 Page 39 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. Glossary (Cont’d) CRC 5082012 11/4/2022 Page 40 SHARPE RATIO: Developed by William F. Sharpe, this calculation measures a ratio of return to volatility. It is useful in comparing two portfolios or stocks in terms of risk-adjusted return. The higher the Sharpe Ratio, the better the risk-adjusted return of the portfolio. It is calculated by first subtracting the risk free rate (Citigroup 3-month T-bill) from the return of the portfolio, then dividing by the standard deviation of the portfolio. Using Sharpe ratios to compare and select among investment alternatives can be difficult because the measure of risk (standard deviation) penalizes portfolios for positive upside returns as much as the undesirable downside returns. SINGLE COMPUTATION: For a single computation chart, StyleADVISOR calculates the information over the entire time period shown as a single data point. AS an example, in a chart showing 10 years of performance, a “Single Computation” would represent the statistic shown over the entire 10 year window. STANDARD DEVIATION: A statistical measure of the degree to which the performance of a portfolio varies from its average performance during a specified period. The higher the standard deviation, the greater the volatility of the portfolio’s performance returns relative to its average return. A portfolio’s returns can be expected to fall within plus or minus one standard deviation, relative to its average return, two-thirds of the time, and fall within plus or minus two standard deviations relative to its average return, 95% of the time. For example, if a portfolio had a return of 5% and a standard deviation of 13% then, if future volatility of returns is similar to historical volatility (which may not be the case): About two-thirds of the time, the future returns could be expected to fall between -8% and 18% (being 5% +/- 13%) About 95% of the time, the future returns could be expected to fall between -21% and 31% (being 5% +/- 26%). In performance measurement, it is generally assumed that a larger standard deviation means that great risk was taken to achieve the return. Glossary (Cont’d) CRC 5082012 11/4/2022 Page 41 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 Page 42 Account Name YTD 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Performance Appendix QTD Performance Data below is net of fees. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Boston Partners - SMID Value 14.54 14.54 6.25 9.62 --8.07 07/14/20170.21 ClearBridge - International Growth 7.04 7.04 ------10.49 01/04/2023-7.16 Fiera Capital - SMID Growth 5.62 5.62 1.07 11.70 --11.80 07/20/20172.15 Genter - Short-Term Fixed Income 4.37 4.37 ------4.02 03/27/2023-0.63 Highland - Fixed Income 3.19 3.19 -1.04 0.87 2.69 3.98 01/31/2011-2.31 Highland - Large Cap Value 13.73 13.73 5.23 7.99 --8.47 07/17/2017-2.49 Intercontinental - Private Real Estate -5.50 -5.50 -5.20 0.59 --3.14 10/01/20170.00 Lazard - Global Infrastructure 6.71 6.71 5.44 ----8.69 12/31/2020-2.00 Receipt & Disbursement 4.80 4.80 -3.16 -9.21 ---7.87 08/01/20170.98 Vanguard - International High Dividend Yield ETF -----------0.95 11/15/2024-- iShares - Russell 1000 Growth ETF 32.59 32.59 10.13 ----14.06 12/31/20207.22 All performance above are Time Weighted(TWR) performance Information Disclosures Performance results are annualized for time periods greater than one year and include all cash and cash equivalents, realized and unrealized capital gains and losses, and dividends, interest and income. The investment results depicted herein represent historical performance. As a result of recent market activity, current performance may vary from the figures shown. Past performance is not a guarantee of future results. Please see the Morgan Stanley Smith Barney LLC Form ADV Part 2 Brochure for advisory accounts and/or any applicable brokerage account trade confirmation statements for a full disclosure of the applicable charges, fees and expenses. Your Financial Advisor will provide those documents to you upon request. Benchmark indices and blends included in this material are for informational purposes only, are provided solely as a comparison tool and may not reflect the underlying composition and/or investment objective(s) associated with the account(s). Indices are unmanaged and not available for direct investment. Index returns do not take into account fees or other charges. Such fees and charges would reduce performance. 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. The information and data contained therein are from sources considered reliable, but their accuracy and completeness is not guaranteed; that the report has been prepared for illustrative purposes only and is not intended to be used as a substitute for account statements provided on a regular basis from Morgan Stanley Smith Barney LLC; that data in this report should be compared carefully with account statements to verify its accuracy; and that the Firm strongly encourages clients to consult with their own accountants or other advisors with respect to any tax questions. This report is being provided as a courtesy. By providing this report, we do not represent or agree that we will monitor the investments in your account(s) or deliver future reports. If Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, “Morgan Stanley”) provide “investment advice” as defined under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),and/or the Internal Revenue Code of 1986 (the “Code”), as applicable, regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account (collectively, “Retirement Account”), Morgan Stanley is a “fiduciary” under ERISA and/or the Code. When Morgan Stanley provides investment education (including historical performance and asset allocation models), 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.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account. Composites are the aggregate of multiple portfolios within an asset pool. Composites are the aggregate of multiple portfolios within an asset pool. 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, 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”. 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. “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. 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. 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 position(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 alternative-like exposure but have significant differences from traditional alternative investment vehicles. Non-traditional alternative strategy vehicles may behave like, have characteristics of, or employ various investment strategies and techniques for both hedging and more speculative purposes such as short-selling, leverage, derivatives, and options, which can increase volatility and the risk of investment loss. Characteristics such as correlation to traditional markets, investment strategy, and market sector exposure can play a role in the classification of a traditional security being classified as alternative. Traditional alternative investment vehicles are illiquid and usually are not valued daily. The estimated valuation provided will be as of the most recent date available and will be included in summaries of your assets. Such valuation may not be the most recent provided by the fund in which you are invested. No representation is made that the valuation is a market value or that the interest could be liquidated at this value. We are not required to take any action with respect to your investment unless valid instructions are received from you in a timely manner. Some positions reflected herein may not represent interests in the fund, but rather redemption proceeds withheld by the issuer pending final valuations which are not subject to the investment performance of the fund and may or may not accrue interest for the length of the withholding. Morgan Stanley does not engage in an independent valuation of your alternative investment assets. Morgan Stanley provides periodic information to you including the market value of an alternative investment vehicle based on information received from the management entity of the alternative investment vehicle or another service provider. Traditional alternative investment vehicles often are speculative and include a high degree of risk. . Investors should carefully review and consider potential risks before investing. Certain of these risks may include but are not limited to:• Loss of all or a substantial portion of the investment due to leveraging, short- selling, or other speculative practices;• Lack of liquidity in that there may be no secondary market for a fund;• Volatility of returns;• Restrictions on transferring interests in a fund;• Potential lack of diversification 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. 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. Indices are unmanaged and investors cannot directly invest in them. Composite index results are shown for illustrative purposes and do not represent the performance of a specific investment. Diversification does not assure a profit or protect against loss in a declining market. Any performance or related information presented has not been adjusted to reflect the impact of any 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.morganstanley.com/ADV or from your Financial Advisor/Private Wealth Advisor. 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. © 2024 Morgan Stanley Smith Barney LLC. Member SIPC. 1 City of Sebastian Police Officers’ Retirement System Statement of Investment Policy Goals and Guidelines Adopted September 14, 2023 January 21, 2025 Introduction The City of Sebastian Police Officers’ Retirement System is a defined benefit plan established by Ordinance of the City of Sebastian to provide retirement benefits for its employees. The City of Sebastian is the “plan sponsor”. The Plan is administered by the Police Pension Fund Board of Trustees. The Plan is a pension plan maintained to provide retirement, disability, termination and death benefits to participants in accordance with the express provisions of the Plan. The Plan and the benefits provided thereunder are funded by contributions by the City of Sebastian, tax rebates from the State of Florida pursuant to Chapter 185, Employees' contributions, interest income and other income in accordance with the underlying Plan documents. The Board of Trustees of the City of Sebastian Police Officers’ Retirement System has established this Statement of Investment Policy. The trustees are named fiduciaries. The investment of the assets of our retirement plan must be consistent with the written investment policy adopted by the board of trustees. The policies are structured to maximize the financial return to the retirement plan consistent with the risks incumbent in each investment and are structured to establish and maintain an appropriate diversification of the retirement system or plan's assets. To assist the Board in this function, they are authorized to engage the services of investment and actuarial consultants to provide expert assistance. The Board determined this Policy after evaluating the implications of increased investment return versus the increased volatility of return for a number of asset allocation strategies with varying commitments to stocks and bonds. In the view of its consultants and the Board, the investment program defined in this Statement will produce a result over the long term consistent with the Plan's primary objective of preserving and enhancing the purchasing power of assets. 2 Purpose This Policy is intended to complement the investment guidelines provided in all applicable State Statutes and local ordinances. The purpose of this Policy is to define the City of Sebastian Police Officers’ Retirement System investment objectives to develop a strategy to help meet investment goals. This statement is meant to clarify risk factors to establish guidelines consistent with the investment profile of the City of Sebastian Police Officers’ Retirement System. Through open communication among the Fund, Investment Consultant and Investment Managers, continuity of investment direction can be more easily achieved. This Policy is meant to: 1. Provide the investment consultant and manager(s) a more accurate understanding of the Trustees’ investment objectives and, 2. Indicate the criteria by which the investment manager’s performance will be evaluated. In the implementation of the investment program, the Plan will employ investment managers who have demonstrated expertise with particular asset classes. Pursuant to the Prudent Investor Rule, the Plan’s investment policy will utilize a variety of investment approaches. This diversification of managers and investment approach is intended to increase the risk adjusted return of the portfolio and contribute to a more consistent return. Nonetheless, the systemic risk inherent in the overall market cannot be diversified away. Consequently, there will be periods of time when the fund may experience negative returns. Such periods are not inconsistent with achievement of the targeted long term objective. General Objectives 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. 3 Investment Objectives 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) FTSE All World ex US High Dividend Yield, 7.50% MSCI ACWI ex US (Net) MSCI EAFE (Net), 25% Bloomberg 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. 4 Investment Strategy Guidelines Based on an analysis of Plan assets and expected returns and risks associated with various asset mix strategies, the Board of Trustees has established a target asset allocation for the entire City of Sebastian Police Officers’ Retirement System to meet the long-term investment goals of the Fund. Investment Policy Portfolio Allocation Asset Class Benchmark Min Target Max EQUITIES 40.00% 65.00% 70.00% Large Cap Equity Large Cap Value RUSSELL 1000 VALUE 12.50% 16.25% 22.50% Large Cap Growth RUSSELL 1000 GROWTH 12.50% 16.25% 22.50% SMid Cap Equity SMid Cap Value RUSSELL 2500 VALUE 2.50% 12.00% 15.00% SMid Cap Growth RUSSELL 2500 GROWTH 2.50% 8.00% 10.50% International (INT’L) Int’l Value MSCI EAFE (Net) FTSE AW ex US High Div Yield 2.50% 5.00% 7.50% Int’l Growth MSCI ACWI ex US (Net) MSCI EAFE (Net) 5.00% 7.50% 10.00% FIXED INCOME 20.00% 25.00% 35.00% Short-Term Fixed Income BLOOMBERG U.S. AGG GOV/CREDIT 1-5 YEAR Core Fixed Income BLOOMBERG U.S. AGGREGATE Infrastructure DOW JONES BROOKFIELD INFRA. COMP. 0.00% 5.00% 10.00% Private Real Estate NCREIF 0.00% 5.00% 10.00% Total Alternatives 0.00% 10.00% 20.00% Cash & Equivalents 0.00% 0.00% 10.00% TOTAL 100.00% The allocation to each asset class may vary from the target asset allocation depending upon market conditions. When necessary and/or available, cash may be deployed in a manner consistent with the strategic asset allocation limits set by this statement of investment policy. 5 Professional Money Managers To implement this strategy, the Board has chosen to hire one or more professional investment managers. Within the guidelines and restrictions set forth within, it is the intention of the Board of Trustees to give each investment manager full investment discretion with respect to assets under its management. The investment managers shall discharge their responsibilities in the same manner as if the Fund were governed by the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Although the Fund Trustees acknowledge ERISA does not apply to a governmental fund, the trustees hereby imposes the fiduciary provisions of ERISA upon each investment manager whose performance shall conform to statutory provisions, rules, regulations, interpretations and case law of ERISA. Each investment manager shall acknowledge, in writing, that it is a named fiduciary of the Fund. The signed document shall be attached to this Investment Policy Statement. Each investment manager is expected to provide any reasonable information requested by the Board of Trustees. At a minimum, managers shall provide a quarterly report detailing their investment activity, the portfolios current value and any changes in investment philosophy or strategy. Each investment manager is expected to meet with the Board of Trustees or their designated representatives periodically to review investment performance and philosophy. Unless otherwise provided by the Funds’ Custodian, each investment manager will monitor portfolio activity to minimize uninvested cash balances. Each investment manager shall be responsible only for those assets under their management. It will be the responsibility of each investment manager to review the monthly valuations provided by the Funds custodian and to note, in writing, any significant discrepancies from the valuations provided in their own reports. Caution must be used in selecting appropriate money managers to manage the Fund’s assets. At a minimum, the money manager must meet the following criteria: 1. Be an investment management company, bank, insurance company, or Investment Consultant as defined by the Registered Investment Advisers Act of 1940. 6 2. Provide historical quarterly performance data calculated on a time weighted basis, based on a composite of all fully discretionary accounts of similar investment styles, and reported net and gross of fees. 3. Provide detailed information on the history of the firm, key personnel, fee schedules and support personnel. 4. Have no outstanding legal judgments or past judgments that may reflect negatively on the firm. Securities Guidelines In accordance with the policies established by the Board of Trustees, the assets of the City of Sebastian Police Officers’ Retirement System shall be invested in a diversified portfolio of fully negotiable equity, fixed income, and money market securities, provided they meet the following criteria: Equity Securities 1. Investments in all equity securities shall be limited to no more than 70% (at market) of the Fund’s total portfolio value. 2. All equity investments shall be limited to fully and easily negotiable equity securities. 3. The equity position in any one company shall not exceed 5% of the total plan portfolio at market. 4. Allocation to any one economic sector should not be excessive and should be consistent relative to a broadly diversified equity market and to managers following similar style disciplines. 5. Investments in stocks of foreign companies shall be limited to 25% (at market value) of the total investment portfolio. The definition of a foreign stock for purposes of this policy is found in Florida Statues, Section 185.06(1)(b)4. The compliance and monitoring of this Section (Equity Securities) is the responsibility of the consultant and the trustees. The consultant’s responsibility is to report any non-compliance to the trustees each quarter. a.) Large Capitalization Value & Growth Stocks Large capitalization stocks are expected to have the greatest weighting in the Pension Fund. They are expected to provide more consistent returns over time than other equity styles. The objective is to maximize investment return over a market cycle by investing in large capitalization equities having the potential to generate investment returns exceeding a passively managed large stock index. 7 Large capitalization equity manager performance parameters include the following: • Performance within the top half of a Universe of Large Capitalization Value or Growth Managers. • Performance comparable to the appropriate Russell indexes commensurate with the recognized level of risk. • The risk associated with the manager's portfolio as measured by the variability of quarterly returns (standard deviation) should not exceed the comparison index without a corresponding increase in performance above the index. • Achieve the performance parameters within a time horizon of a minimum of a full market cycle. b.) Mid/Small Capitalization Stocks Mid/Small capitalization stocks are expected to improve total portfolio diversification and provide opportunities for higher incremental returns in the long run. The objective is to maximize investment return over a market cycle by investing in mid/small capitalization equities having the potential to generate investment returns exceeding a passively managed mid/small stock index. Mid/Small capitalization growth stock managers generally purchase companies with a market capitalization of greater than $500 million. Mid/Small capitalization equity manager performance parameters include the following: • Performance within the top half of a Universe of Mid/Small Capitalization Value or Growth Managers • Performance comparable to the appropriate Russell indexes commensurate with the recognized level of risk. • Achieve the performance parameters within a time horizon of a minimum of a full market cycle for the mid/small capitalization market. c.) Developed & Emerging Markets International Stocks International Stocks are expected to improve total portfolio diversification and provide opportunities for higher incremental returns in the long run. The objective is to maximize investment return over a market cycle by investing in 8 international securities through American Depository Receipts (ADRs) as well as any foreign company that trades directly in a U.S. equity market. These equities should generate investment returns exceeding a passively managed international index. Developed & Emerging Markets International equity manager performance parameters include the following: • Performance comparable to to the appropriate FTSE or MSCI developed and emerging markets international indexes commensurate with the recognized level of risk. • Achieve the performance parameters within a time horizon of a minimum of a full market cycle of the international market. Fixed Income Securities 1. Investments in corporate fixed income securities shall be limited to: a) Those securities rated investment grade by a recognized rating agency. Fixed income securities downgraded below the minimum rating by both entities shall be sold at the earliest beneficial opportunity as determined by the manager. It is the manager’s responsibility to notify the board in writing immediately after a security is downgraded below the policy guidelines. The written explanation should describe the manager’s intentions regarding the disposition of the security being downgraded. b) Securities issued by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia. c) No more than 10% (at market) of the fixed income portfolio total value may be invested in the securities of any single corporate issuer. 2. Investments in Collateralized Mortgage Obligations shall be limited to 25% of the market value of the total fixed income portfolio and shall be restricted to those issues: a) Those issues backed by the full faith of the U.S. Government, an Agency thereof, or rated AAA by a major rating service. b) PAC (planned amortization class), NAC (non-accelerated securities) or VADM (very accurately defined maturity) securities. 3. There is no limit imposed on investments in fixed income securities issued directly by the United States Government or any agency or instrumentality thereof. 9 Fixed income manager(s) performance parameters include the following: • Performance comparable to the appropriate Bloomberg Fixed Income Index commensurate with the recognized level of risk. • Achieve the above objectives within a time horizon of a minimum of a full market cycle. Cash Equivalent Securities: 1. The Investment managers may invest only in the following short – term investment vehicles: a) The money market or STIF provided by the Fund’s custodian. b) Direct Obligations of the United States Government with a maturity of one year or less. c) Commercial Paper issued by United States corporations with a maturity of one year or less. Infrastructure Infrastructure funds seek total return from both capital appreciation and current income. Investments in Infrastructure shall be managed by experienced and professional investment managers. Investments may be made through a listed infrastructure or private infrastructure fund. Infrastructure manager performance parameters include the following: • Performance comparable to the Dow Jones Brookfield Infrastructure Composite Index commensurate with the recognized level of risk. • Achieve the performance parameters within a time horizon of a minimum of a full market cycle. Private Real Estate Private real estate investments are expected to improve total portfolio diversification and provide income and opportunities for higher incremental returns in the long-term. The objective is to maximize investment return over a market cycle by investment in real estate through private ownership. The investment managers are permitted to invest in private real estate. Private real estate will be purchased through an institutional vehicle. The institutional vehicle provides diversification of property type and geographical location and provides a competitive price structure. These private real estate investments 10 should generate investment returns exceeding a passively managed private real estate index. Private real estate investment performance parameters include the following: • Performance comparable to the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index or Open-End Diversified Core indexes commensurate with the recognized level of risk. • Achieve the above objectives within a time horizon of a minimum of a full real estate market cycle. Mutual Funds/Commingled Funds/Exchange Traded Funds The Board of Trustees recognizes and accepts commingled fund, mutual fund, and exchange traded fund investments will be dictated by the investment policies and guidelines of those funds and no additional constraints may be imposed upon them. The decision to invest assets of the City of Sebastian Police Officers’ Retirement System in any commingled fund, mutual fund, or exchange traded fund will only be made by the Trustees after a thorough review of the policies and/or prospectuses of those funds and after it has been determined those policies are appropriate and consistent with the investment philosophy of the City of Sebastian Police Officers’ Retirement System. Sudan/Iran Divestiture In accordance with the Protecting Florida’s Investment Act (Fla. Stat. 215.473), the Board is prohibited from directly investing in any company identified each quarter by the State Board of Administration on its website as a scrutinized company. The Board shall review its investments each quarter to determine whether it is required to sell, redeem, divest, or withdraw any publicly traded security of a company identified by the SBA as a scrutinized company. Compliance with Chapter 2023-23, Laws of Florida The Board and its investment managers shall comply with the applicable requirements of Chapter 2023-28, Laws of Florida, including Section 112.662. 1. Definition of pecuniary factor: The term “pecuniary factor” is defined as a factor that an investment fiduciary “prudently determines is expected to have a material effect on the risk or returns of an investment based on appropriate investment horizons consistent with the investment objectives and funding policy of the retirement system. 11 The term does not include the consideration of the furtherance of any social, political, or ideological interests.” [112.662(1)] 2. Exclusive consideration of pecuniary factors: Only pecuniary factors may be considered and the interests of the participants and beneficiaries of the system may not be subordinated to other objectives, including sacrificing investment return or undertaking additional investment risk to promote any nonpecuniary factor. The weight given to any pecuniary factor must appropriately reflect a prudent assessment of its impact on risk or returns. [112.662(2)] 3. Proxy voting: Only pecuniary factors may be considered when voting proxies. [112.662(3)] 4. Filing requirements: The Board shall timely comply with the reporting requirement of Section 112.662 by filing a comprehensive report by December 15 of each odd- numbered year. [112.662(4)]. Investment managers and the Board’s investment consultant shall assist in the preparation of required reports and shall annually confirm to the Board their compliance with Chapter 2023-28, if applicable. 5. Contracting and external communication requirements: Manager contracts shall comply with Section 215.855 as follows: 6. The Investment Consultant will only provide Investment Managers for consideration by the Board who invest only based on pecuniary factors as defined by Florida Statutes §112.662. 7. If a Request for Proposals document is issued for Investment Manager services, the solicitation document must include the following: The Board of Trustees may not request documentation of or consider a vendor’s social, political, or ideological interests when determining if the vendor is a responsible vendor. Additionally, the Board of Trustees may not give preference to a vendor based on vendor’s social, political, or ideological interests. Any written communication made by an investment manager to a company in which such manager invests public funds on behalf of the Board must include the following disclaimer in a conspicuous location if such communication discusses social, political, or ideological interests; subordinates the interests of the company’s shareholders to the interest of another entity; or advocates for the interest of an entity other than the company’s shareholders: The views and opinions expressed in this communication are those of the sender and do not reflect the views and opinions of the people of the State of Florida. Section 112.661 Florida Statutes 12 The Board of Trustees has adopted the following additional provisions to comply with Section 112.661, Florida Statutes: 1. SCOPE: The investment policy applies to those funds under control of the Board. 2. INVESTMENT OBJECTIVES: The investment policy describes the investment objectives of the Board. 3. PERFORMANCE MEASUREMENT: The investment policy specifies performance measures as are appropriate for the nature and size of the assets within the Board’s custody. 4. INVESTMENT AND FIDUCIARY STANDARDS: In performing its investment duties, the Board and its investment managers shall comply with the fiduciary standards set forth in ERISA (Employee Retirement Income Security Act). 5. AUTHORIZED INVESTMENTS: The Board of Trustees recognizes those assets listed in its attached Statement of Investment Policy. Investments not listed are prohibited. 6. MATURITY AND LIQUIDITY REQUIREMENTS: The investment portfolio shall be structured in such a manner to provide sufficient liquidity to pay obligations as they come due. To the extent possible, an attempt will be made to match investment maturities with known cash needs and anticipated cash-flow requirements. 7. PORTFOLIO COMPOSITION: The investment policy establishes guidelines for investments and limits on security issues, issuers and maturities. These guidelines are commensurate with the nature and size of the funds within the custody of the Board. 8. RISK AND DIVERSIFICATION: The Board of Trustees has developed a diversified investment program to control the risk of loss resulting from over concentration in a specific maturity, issuer, instrument, dealer or bank through which financial instruments are bought and sold. 9. EXPECTED ANNUAL RATE OF RETURN: With consideration to rates of return from different asset classes, the Board of Trustees has crafted its investment program to deliver an expected rate of return similar to the actuarial assumed rate. The Board shall determine for each actuarial valuation, the total expected annual rate of return for the current year, for each of the next several years and for the long term thereafter. The total expected annual rate of return is anticipated to be similar to the actuarial assumed rate of return. This determination is filed with the Department of Management Services and with the plan sponsor and consulting actuary. 13 10. THIRD-PARTY CUSTODIAL AGREEMENTS: All assets shall be held by a third party custodian selected by the Board. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities are to be made on a “delivery vs. payment” basis to ensure the custodian will have the security or money in hand at conclusion of the transaction. 11. MASTER REPURCHASE AGREEMENT: Repurchase Agreements are prohibited investments. 12. BID REQUIREMENT: To the extent possible, the intention of the Board of Trustees is to determine the approximate maturity date based on cash-flow needs and market conditions, analyze and select one or more optimal types of investment and competitively bid the security in question when feasible and appropriate. Except as otherwise required by law, the most economically advantageous bid is selected. 13. INTERNAL CONTROLS: The Board recognizes the internal controls and operational procedures outlined in the Board’s operation rules and procedures, in the plan document, and in the custodial agreement. These controls are reviewed by the Board’s independent certified public accountant as part of the financial audit periodically required. The internal controls are designed to prevent losses of funds, which might arise from fraud, error and misrepresentation, by third parties or imprudent actions by the Board or employees of the plan sponsor. 14. CONTINUING EDUCATION: The Board of Trustees relies on its consultants and professionals to provide continuing education on pension and investment issues. The Board of Trustees recognizes state and regional conferences as a source of continuing education. The Trustees are encouraged to attend conferences, schools, and other functions periodically to fulfill this requirement. 15. REPORTING: The Custodian’s valuation report is filed annually with the plan sponsor. This report is available to the public. 16. FILING OF INVESTMENT POLICY: The investment policy is promptly filed with the Department of Management Services, plan sponsor and consulting actuary. The effective date of the investment policy and any amendment thereto shall be the 31st calendar day following the filing date with the plan sponsor. 17. VALUATION OF ILLIQUID INVESTMENTS: The Board defines an illiquid investment as one for which a generally recognized market is not available or for which there is no consistent or generally accepted pricing mechanism. Should an investment become illiquid or in the event the fund acquires an illiquid investment, the Board shall develop the methodology for valuation as set forth in 14 the criteria in Section 215.47(6), Florida Statutes (the SBA/FRS methodology for valuation). 15 ASSIGNMENT OF RESPONSIBILITIES Responsibility Table Fiduciary Level Written Investment Policy Written Investment Strategy Strategic Asset Allocation Among Asset Class(s) Allocation Within Asset Class(s) Manager Search & Selection Security Selection Performance Measurement Trustees 1 1 1 4 1 4 4 Investment Consultant 2 2 2 2 2 4 3 Investment Manager(s) 4 4 2 2 4 1 3 Custodian 4 4 4 4 4 4 4 Delegation of Responsibility: 1)Approves 2) Recommends 3) Monitors 4) Informed INVESTMENT POLICY REVIEW The intention of the Board of Trustees is to review this Statement of Investment Policy and its addenda periodically and to amend it to reflect any changes in philosophy or objectives. However, if at any time the Investment managers believe the specific objectives defined herein cannot be met or these guidelines unnecessarily constrict performance, the Trustees shall be so notified in writing. ACCEPTANCE AND AUTHORIZATION This statement of investment policy is adopted September 14, 2023 by the Board of Trustees of the City of Sebastian Police Officers’ Retirement System whose signatures appear below. ______________________________ Chairman, Board of Trustees City of Sebastian Police Officers’ Retirement System 16 Investment Manager's Acknowledgment I, the undersigned, acknowledge I have received the policy statement for the City of Sebastian Police Officers’ Retirement System, dated________________. I affirm I have read and understand said Policy Statement, and do hereby agree to abide to the guidelines expressed in the Policy Statement. Name of Firm Signed Date 17 A Self -Assessment for the Trustees of the City of Sebastian Police Officers’ Retirement System • Are investments managed in accordance with applicable by-laws, trust documents, and written investment policy statements? • Are the roles and responsibilities of all involved parties defined, documented and acknowledged? • Are service agreements and contracts in writing? Are they written with provisions that conflict with fiduciary standards of care? • Has an investment time horizon been identified? • Has a risk level been identified? • Has an expected, modeled return to meet investment objectives been identified? • Are selected asset classes consistent with identified risk, return and time horizon? • Are selected asset classes consistent with implementation and monitoring constraints? • Is there an Investment Policy Statement (IPS), which contains the detail to define, implement, and manage a specific investment strategy? • Is the investment strategy implemented in compliance with the required level of prudence? • Does the IPS define appropriately structured, socially responsible investment strategies (where applicable)? • Are Investment vehicles appropriate for the portfolio, size? • Is a due diligence process followed in selecting service providers, including the custodian? • Are there periodic reports comparing investment performance against an appropriate index, peer group, and IPS objectives? • Are periodic reviews made of qualitative and/or organizational changes of investment decision-makers? • Are control policies in place to periodically review policies for best execution, “soft dollar”, and proxy voting? • Are fees for investment management consistent with agreements and all applicable laws? • Are “finder’s fees” or other forms of compensation that may have been paid for asset placement, appropriately applied, utilized and documented? Is there a process to periodically review the Organization’s effectiveness in meeting its fiduciary responsibilities? WARRANT # SENT FOR PAYMENT FOR PERIOD DESCRIPTION TOTAL DUE 15 11/14/2024 April 1 - June 30, 2024 Highland Capital Management, invoice 36305, investment management $1,599.02 15 11/14/2024 April 1 - June 30, 2024 Highland Capital Management, invoice 36311, investment management $6,342.96 15 11/14/2024 September 2024 Klausner, Kaufman, Jensen & Levinson, invoice #36090, legal services $555.00 15 11/14/2024 September 2024 Foster & Foster, invoice #33212, plan administration $2,200.00 15 11/14/2024 January 1 - March 31, 2024 Genter Capital Management, 1st quarter fees, investment management $696.00 15 11/14/2024 April 1 - June 30, 2024 Genter Capital Management, 2nd quarter fees, investment management $702.00 15 11/14/2024 July 1 - September 30, 2024 Genter Capital Management, 3rd quarter fees, investment management $727.00 15 11/14/2024 July 1 - September 30, 2024 Highland Capital Management, invoice #37071, investment management $6,868.37 15 11/14/2024 July 1 - September 30, 2024 Highland Capital Management, invoice #37030, Fixed, investment management $1,895.45 15 11/14/2024 through October 30, 2024 City of Sebastian, reimbursement for the Police Pension plan, Accentria Insurance payment $3,221.52 15 11/14/2024 July 1 - September 30, 2024 Salem Trust, 3rd quarter fees, custodial services (AUTO DEDUCT)$7,997.43 15 11/14/2024 July 1 - September 30, 2024 Boston Partners, invoice #20240930-690-A, investment management $7,023.84 15 11/14/2024 July 1 - September 30, 2024 Graystone Consulting, invoice #10129924292, investment consulting $4,000.00 16 12/20/2024 July 1 - September 30, 2024 ClearBridge Investments, invoice #SEBAS_IGADR093024, investment management $3,712.10 16 12/20/2024 July 1 - September 30, 2024 Fiera Capital, 3rd quarter fees, investment management $3,662.48 16 12/20/2024 October 2024 Foster & Foster, invoice #33693, plan administration $2,364.31 16 12/20/2024 October 2024 Klausner, Kaufman, Jensen & Levinson, invoice #36250, legal services $2,845.00 16 12/20/2024 November 2024 Foster & Foster, invoice #34069, plan administration $7,200.00 16 12/20/2024 November 2024 Klausner, Kaufman, Jensen & Levinson, invoice #36470, legal services $530.00 17 1/8/2025 CY 2025 FPPTA, invoice #13503, 2025 Winter Trustee Registration for R. Allen $850.00 17 1/8/2025 CY 2025 FPPTA, invoice #13737, 2025 Pension Board Membership $750.00 Total Invoices $65,742.48 Total Checks $0.00 CHECK REQUESTS **Highlighted items are pending approval and have not yet been paid** INVOICES SUMMARY OF PAYMENTS City of Sebastian Police Officers' Retirement System October 17, 2025 - January 21, 2025 July 10, 2024 Invoice Number: 36305 MANAGEMENT FEE:SEBASTIAN POLICE OFFICERS' RETIREMENT FIXED INCOME 6/30/2024 Portfolio Value:$ 2,132,024.52 Quarterly Fee Based On: $ 2,132,025 @ 0.30% per annum $ 1,599.02 Quarterly Fee:$ 1,599.02 For the Period 4/1/2024 through 6/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 1,599.02 Mailing Check:Wiring Instructions: Highland Capital Management, LLC Contact: hfoster@highlandcap.com 850 Ridge Lake Blvd. Suite 205 Memphis, TN 38120 *****Note New Address******* FOR RATIFICATION: Warrant 15, Invoices July 10, 2024 Invoice Number: 36311 MANAGEMENT FEE:SEBASTIAN POLICE OFFICERS' RETIREMENT 6/30/2024 Portfolio Value:$ 5,078,469.79 Exclude Dividend Accrual - 4,096.94 Billable Value $ 5,074,372.85 Quarterly Fee Based On: $ 5,074,373 @ 0.50% per annum $ 6,342.96 Quarterly Fee:$ 6,342.96 For the Period 4/1/2024 through 6/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 6,342.96 Account Account Value Quarterly Fee (sebast01) SEBASTIAN POLICE OFFICERS' RETIREMENT VALUE $ 3,892,906.37 $ 4,866.13 (sebasti4) SEBASTIAN POLICE OFFICERS' RETIREMENT ADR $ 1,181,466.48 $ 1,476.83 Total $ 5,074,372.85 $ 6,342.96 Mailing Check: Wiring Instructions: Highland Capital Management, LLC Contact: hfoster@highlandcap.com 850 Ridge Lake Blvd. Suite 205 Memphis, TN 38120 *****Note New Address******* nvoice Date 10/3/2024 Invoice # 33212 Bill To City of Sebastian Police Officers' Retirement System c/o Foster & Foster, Inc. 2503 Del Prado Blvd. S, Suite 502 Cape Coral, FL 33904 Terms Net 30 Due Date 11/2/2024 Balance Due Thank you for your business! Plan Administration Division Phone: (239) 333-4872 Fax: (239) 481-0634 billing@foster-foster.com www.foster-foster.com Federal EIN: Description Amount Plan Administration services for the month of September 2024. 2,200.00 For payment via a mailed check, please remit to: Foster & Foster, Inc. 13420 Parker Commons Blvd, Ste 104, Fort Myers, FL 33912 $2,200.00 pril 5, 2024 Cust: Salem Trust/TMI/Reliance Acct: Code: ID: City of Sebastian Police Officers Retirement System Salem/TMI/Reliance Trust Graystone Consulting MANAGEMENT FEE:City of Sebastian Police Officers Retirement Sys 3/31/2024 Portfolio Value (including accrued interest):$ 2,783,380.18 Annual Fee Based On:$ 2,783.00 $ 2,783,380 @ 0.10% per annum $ 2,783.00 Quarterly Fee:$ 696.00 For the Period 1/1/2024 through 3/31/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 696.00     Please remit directly to: Genter Capital Management 11601 Wilshire Boulevard, Penthouse Floor, Los Angeles, CA 90025 uly 5, 2024 Cust: Salem Trust/TMI/Reliance Acct: Code: City of Sebastian Police Officers Retirement System Salem/TMI/Reliance Trust Graystone Consulting MANAGEMENT FEE:City of Sebastian Police Officers Retirement Sys 6/30/2024 Portfolio Value (including accrued interest):$ 2,810,370.84 Annual Fee Based On:$ 2,810.00 $ 2,810,371 @ 0.10% per annum $ 2,810.00 Quarterly Fee:$ 702.00 For the Period 4/1/2024 through 6/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 702.00     Please remit directly to: Genter Capital Management 11601 Wilshire Boulevard, Penthouse Floor, Los Angeles, CA 90025 ctober 4, 2024 Cust: Salem Trust/TMI/Reliance Acct: ID: City of Sebastian Police Officers Retirement System Salem/TMI/Reliance Trust Graystone Consulting MANAGEMENT FEE:City of Sebastian Police Officers Retirement Sys 9/30/2024 Portfolio Value (including accrued interest):$ 2,908,563.38 Annual Fee Based On:$ 2,909.00 $ 2,908,563 @ 0.10% per annum $ 2,909.00 Quarterly Fee:$ 727.00 For the Period 7/1/2024 through 9/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 727.00     Please remit directly to: Genter Capital Management 11601 Wilshire Boulevard, Penthouse Floor, Los Angeles, CA 90025 October 11, 2024 Invoice Number: 37071 MANAGEMENT FEE:SEBASTIAN POLICE OFFICERS' RETIREMENT 9/30/2024 Portfolio Value:$ 5,498,512.64 Exclude Dividend Accrual - 3,819.38 Billable Value $ 5,494,693.26 Quarterly Fee Based On: $ 5,494,693 @ 0.50% per annum $ 6,868.37 Quarterly Fee:$ 6,868.37 For the Period 7/1/2024 through 9/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 6,868.37 Account Account Value Quarterly Fee (sebast01) SEBASTIAN POLICE OFFICERS' RETIREMENT VALUE $ 4,241,147.71 $ 5,301.44 (sebasti4) SEBASTIAN POLICE OFFICERS' RETIREMENT ADR $ 1,253,545.55 $ 1,566.93 Total $ 5,494,693.26 $ 6,868.37 Mailing Check: Wiring Instructions: Highland Capital Management, LLC Contact: hfoster@highlandcap.com 850 Ridge Lake Blvd. Suite 205 Memphis, TN 38120 *****Note New Address******* October 11, 2024 Invoice Number: 37030 MANAGEMENT FEE:SEBASTIAN POLICE OFFICERS' RETIREMENT FIXED INCOME 9/30/2024 Portfolio Value:$ 2,527,265.12 Quarterly Fee Based On: $ 2,527,265 @ 0.30% per annum $ 1,895.45 Quarterly Fee:$ 1,895.45 For the Period 7/1/2024 through 9/30/2024 Paid by Debit Direct Please Remit ($ 0.00) $ 1,895.45 Mailing Check: Wiring Instructions: Highland Capital Management, LLC Contact: hfoster@highlandcap.com 850 Ridge Lake Blvd. Suite 205 Memphis, TN 38120 *****Note New Address******* -------------- ------------ ------------ The mailing address is: City of Sebastian Attn: Jen Smith 1225 Main Street Sebastian, FL 32958 $3,221.52 Fee Advice for Period July 1, 2024 to Total Market Value for Fund: 24,555,641.92$ Detail of Calculation: Market Value Basis Point Rate Annual Fee Quarterly Fee Total Market Value 0.000525 $12,891.71 3,222.93$ Account Number Activty Amount Charge 0740001482 Highland Large Cap Buy / Sell 14 $63.00 0740001508 Boston Partners Buy / Sell 752 $3,384.00 0740001516 Fiera Capital Buy / Sell 80 $360.00 0740001524 Highland Int'l Value Buy / Sell 5 $22.50 0740001540 R&D Buy / Sell 0 $0.00 0740002985 Highland Fixed Income Buy / Sell 12 $54.00 0740007166 iShares Buy / Sell 1 $4.50 0740007174 Lazard Buy / Sell 0 $0.00 0740007216 Polen Buy / Sell 74 $333.00 0740007836 Clearbridge Buy / Sell 120 $540.00 0740007885 Genter Buy / Sell 3 $13.50 Buy / Sell Total 1061 $4.50 4,774.50 Total Amount Due 7,997.43 These fees will automatically be charged to your account. If you have any questions, please contact Karen Russo at (954) 815-6928. billing@foster-foster.com October 15, 2024 Siera Feketa September 30, 2024 2503 Del Prado Blvd S Suite 502 Foster & Foster Cape Coral, FL 33904  1715 N. WESTSHORE BLVD., SUITE 750    TAMPA, FL  33607    TEL (877) 382‐5268    FAX (813) 301‐1295 www.salemtrust.com Pamela Conn Foster-Foster 2503 Del Prado Blvd. S. Suite 502 Cape Coral, FL 33904 09/30/2024 20240930-690-A Invoice Date: Invoice Number: Billing Portfolio(s): Billing Period:07/01/2024 to 09/30/2024 SUMMARY FOR INVESTMENT SERVICES Please contact James Vitelli directly at 212-908-0149 with any billing inquiries. As always, you may also direct any questions to your Relationship Manager. Current Period Amount Due:$ 7,023.84 QUARTEREND Fee Invoice Current Period Due 30-60 Days 60-90 Days Over 90 Days Total 20240930-690-A 7,023.84City of Sebastian Police Officers' Retirement System 7,023.84 7,023.847,023.84Total Amount Due 00844 - City of Sebastian Police Officers' Retirement System .00 90.00 BPS and above Quarterly Fee Calculation (IMFEE - USD) 3,121,707.08 90.00 BPS 90 360 7,023.84=*/* Annual Fee Schedule (IMFEE - USD) Period Rule - Custom (USD) City of Sebastian Police Officers' Retirement System - 06/30/2024 Monthly Values Market Value 2,889,084.47 2,889,084.47 07/31/2024 Market Value 3,097,329.02 3,097,329.02 08/31/2024 Market Value 3,120,354.96 3,120,354.96 09/30/2024 Market Value 3,147,437.25 3,147,437.25 Adjusted Input $ 3,121,707.08 $ 7,023.84Schedule Total: Fee Details: Total IMFEE (00844)7,023.84 $ 7,023.84Fee Total: Invoice Summary Fee Totals: Fee Total For IMFEE:7,023.84 Total Amount Due:$ 7,023.84 October 18, 2024 INVOICE NUMBER: 10129924292 GRAYSTONE TAMPA 813-228-9888 www.morganstanley.com*745-568 DCGIIC 0272456719* 1225 Main St Sebastian FL 32958 PLEASE REVIEW INVESTMENT ADVISORY FEE PAYMENT REQUIRED We value you as a client and thank you for the opportunity to serve your investment needs. Please see below for the investment advisory fee(s) due. FEE TYPE PLAN BILLABLE VALUE FEE AMOUNT Consulting City of Sebastian Police Officers $22,387,591.22 $4,000.00 Total Fees This Period $4,000.00 Past Due Balance $0.00 Net Amount Due $4,000.00 CONSULTING FEE SCHEDULE Annual consulting fee is fixed at $16,000.00 Investments and services offered through Morgan Stanley Smith Barney LLC. Member SIPC. Graystone Consulting is a business of Morgan Stanley. 1 of 4 REMITTANCE INSTRUCTIONS 3 of 4 INVOICE NUMBER: 10129924292 Please return payment using this page and include it with your check in the enclosed business reply envelope. Please note that cash payments cannot be accepted. Wire and check information are below. If you have any questions, please contact your Financial Advisor. Total Fees (07/01/2024 - 09/30/2024)$4,000.00 Past Due Balance $0.00 Net Amount Due $4,000.00 Investments and services offered through Morgan Stanley Smith Barney LLC. Member SIPC. Graystone Consulting is a business of Morgan Stanley. By Check Morgan Stanley Global Banking Operations ATTN: Advisory Fee Billing 1300 Thames Street Wharf, 4th Floor Baltimore, MD 21231-9907 Ref: Invoice 10129924292 Please note that cash payments cannot be accepted. ACH, wire, and check payment instructions are below. For tracking purposes, electronic payments are preferred. If a check is used for payment, the Remit page of the invoice must be accompanied with the check. Any payments that do not include the payment instructions provided, or Remittance page, may result in delayed processing or return of the payment. Please expect longer processing times for payments by check.   :%!"   &:: "*    %"  57 %  %!"  +'5  3> >   "  " "  A            ! ) $) &%  "     ,%#&7)*&(')%)*)#+&*&,**)&*%-    :# " " : .  :%!"   &:: "C*    %"  +%. (   :# " " : .  :%!"   &:: "C*     %"   *  /  (,% + 2  2 # +"01(23 9-0 "-# ) $) &% 7  ""3 "!!+3 4$5# $ %&  '( )*+ '*)   66"0 3 " "/%/7" 80!    "-# ) $) &% 6"/$/9!"060:6"300: 33"76:"3:3 ! 9";" 9" 76: 3"/70"3 )"0:/"3/9"9   63"0:/"3"<08 !"3/"76:"98"/;/./"<08 !"063 !;/0"3 00/:"9 0."3 06:9"9 8"060:6 -00: 33"76:"3 FOR RATIFICATION: Warrant #16, Invoiecs   :%!"   &:: "*    %"  57 %  %!"  +'5  3> >   "  " "  A            ! ) $) &%  "     ')%)*)7##$%%##)7)#6#$&,*7)#-    :# " " : .  :%!"   &:: "C*    %"  +%. (   :# " " : .  :%!"   &:: "C*     %"   *  /  (,% + 2  2 # +"01(23 9-0 "-# ) $) &% 7  ""3 "!!+3 4$5# $ %&  '( )*+ '*)   66"0 3 " "/%/7" 80!    "-# ) $) &% 6"/$/9!"060:6"300: 33"76:"3:3 ! 9";" 9" 76: 3"/70"3 )"0:/"3/9"9   63"0:/"3"<08 !"3/"76:"98"/;/./"<08 !"063 !;/0"3 00/:"9 0."3 06:9"9 8"060:6 -00: 33"76:"3 As per SEC Rule 206(4)-2, we urge you to compare this report with your custodian statements. It is the client’s responsibility to verify the accuracy of the computation. The custodian will not do an independent verification of the accuracy of the computation of fees. Myron Charas mcharas@fieracapital.com and BillingFCI@fieracapital.com 937-388-1437 Oct 15, 2024 Siera Feketa ?, ? ? USA City of Sebastian Police Officer's Retirement System - FIERA CAPITAL INC. SUMMARY OF MANAGEMENT FEES For The Period Q3 2024 Portfolio Value as of 09-30-24 $ 1,953,321.14 1,953,321 @ 0.75% per annum 3,662.48 Quarterly Management Fee $ 3,662.48 TOTAL DUE AND PAYABLE $ 3,662.48 nvoice Date 11/5/2024 Invoice # 33693 Bill To City of Sebastian Police Officers' Retirement System c/o Foster & Foster, Inc. 2503 Del Prado Blvd. S, Suite 502 Cape Coral, FL 33904 Terms Net 30 Due Date 12/5/2024 Balance Due Thank you for your business! Plan Administration Division Phone: (239) 333-4872 Fax: (239) 481-0634 billing@foster-foster.com www.foster-foster.com Federal EIN: Description Amount Plan Administration services for the month of October 2024. 2,200.00 Attendance at October 16, 2024 Board meeting (out-of-pocket expenses only). 164.31 For payment via a mailed check, please remit to: Foster & Foster, Inc. 13420 Parker Commons Blvd, Ste 104, Fort Myers, FL 33912 $2,364.31 Invoice Date 12/3/2024 Invoice # 34069 Bill To City of Sebastian Police Officers' Retirement System c/o Foster & Foster, Inc. 2503 Del Prado Blvd. S, Suite 502 Cape Coral, FL 33904 Terms Net 30 Due Date 1/2/2025 Balance Due Thank you for your business! Plan Administration Division Phone: (239) 333-4872 Fax: (239) 481-0634 billing@foster-foster.com www.foster-foster.com Federal EIN: Description Amount Plan Administration services for the month of November 2024. 2,200.00 Annual online administration portal fee commencing August 2024 - July 2025 5,000.00 For payment via a mailed check, please remit to: Foster & Foster, Inc. 13420 Parker Commons Blvd, Ste 104, Fort Myers, FL 33912 $7,200.00 NVOICE Stacey Vick (Seminole Firefighters Pension Fund) 13425 PARKER COMMONS BLVD STE 104 FORT MYERS, FL 33912 United States Invoice Date: 12/06/2024 Invoice Number: INV_13503 Reference: Online Event Registration: 2025 Winter Trustee School Florida Public Pension Trustees Association 2946 WELLINGTON CIR BUILD 2 TALLAHASSEE, FL 32309 United States mj@fppta.org 8506688552 Description Quantity Unit Price Sales Tax Amount USD Registration Fee - Trustee Registration Fee (Robert Allen, Attendee)1 $850.00 -$850.00 Program Enrollment Fee - Not participating in the Certificate Program ( Attendee)1 $0.00 -$0.00 Sunday Orientation Program - I am not enrolling in the CPPT program, but would like to attend ONLY the "Water the Bamboo" keynote address Sunday afternoon. ( Attendee) 1 $0.00 -$0.00 Sub Total $850.00 TOTAL USD $850.00 Amount Paid ($0.00) AMOUNT DUE:$850.00 DUE DATE: December 16, 2024 PAYMENT ADVICE To: Florida Public Pension Trustees Association 2946 WELLINGTON CIR BUILD 2 TALLAHASSEE, FL 32309 United States mj@fppta.org 8506688552 Customer:Stacey Vick Invoice Number:INV_13503 Amount Due:$850.00 Due Date:December 16, 2024 FOR RATIFICATION: Warrant #17, invoices INVOICE Sebastian Municipal Police Officers' Fund (Sebastian Municipal Police Officers' Fund) 1225 MAIN ST SEBASTIAN, FL 32958 United States For organization: Sebastian Municipal Police Officers' Fund Invoice Date: 12/31/2024 Invoice Number: INV_13737 Reference: Online Payment: Membership Dues Florida Public Pension Trustees Association 2946 WELLINGTON CIR BUILD 2 TALLAHASSEE, FL 32309 United States mj@fppta.org 8506688552 Description Quantity Unit Price Sales Tax Amount USD 2025 Membership - Pension Board 1 $750.00 -$750.00 Sub Total $750.00 TOTAL USD $750.00 Amount Paid ($0.00) AMOUNT DUE:$750.00 DUE DATE: January 10, 2025 PAYMENT ADVICE To: Florida Public Pension Trustees Association 2946 WELLINGTON CIR BUILD 2 TALLAHASSEE, FL 32309 United States mj@fppta.org 8506688552 Customer:Sebastian Municipal Police Officers' Fund Invoice Number:INV_13737 Amount Due:$750.00 Due Date:January 10, 2025 Retirees Term Date Monthly Benefit Option Selection Sent to Custodian None this period DROP Entries Entry Date Monthly Benefit Option Selection None this period DROP Exits Exit Date Monthly Benefit Account Balance Sent to Custodian None this period Refunded Contributions Term Date Refund Amount Status (Vested/Non-Vested)Sent to Custodian None this period Purchase of Service Credit Years Purchased Amount Due Rollover Contributions Payroll Deductions Sent to City None this period Deceased Members Date of Death Benefit Amount Option Selection Sent to Custodian None this period Beneficiary Payments Effective Date Benefit Amount Sent to Custodian None this period COLA Adjustments Effective Date Benefit Amount Sent to Custodian None this period . FUND ACTIVITY REPORT CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM Activity for Period October 10, 2024 through January 14, 2025