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IV.B1.BB2Q21
BOYNTON BEACH GENERAL EMPLOYEES’ PENSION FUND INVESTMENT PERFORMANCE ANALYSIS SECOND QUARTER 2021 Note: For a copy of Part II of Southeastern Advisory Services, Inc.’s most recent Form ADV please write: Southeastern Advisory Services, Inc., 3495 Piedmont Road, N.E., Bldg. 12-202, Atlanta, GA 30305, or e-mail your request to ben@seadvisory.com. Part II of Form ADV will be mailed within seven (7) days upon receipt of the request. Jeffrey D. Swanson, Senior Consultant Southeastern Advisory Services, Inc. 3495 Piedmont Road, N.E., Bldg. 12-202 Atlanta, Georgia 30305 TEL: (404) 237-3156 FAX: (404) 237-2650 Only the executive summary portion of our reporting is provided herein. If you would like an electronic copy of the back-up pages to this executive summary, send your request to jeff@seadvisory.com. BOYNTON BEACH EMPLOYEES’ PENSION FUND INVESTMENT PERFORMANCE ANALYSIS JUNE 30, 2021 TABLE OF CONTENTS TAB 1 MARKET ENVIRONMENT TAB 2 PORTFOLIO GROWTH AND ASSET ALLOCATION TAB 3 TOTAL FUND AND ASSET MANAGER PERFORMANCE COMPARISONS TAB 4 INVESTMENT POLICY COMPLIANCE 1 Executive Summary BOYNTON BEACH EMPLOYEES’ PENSION FUND Quarter Ending June 30, 2021 I. MARKET ENVIRONMENT Index Second Quarter 1 Year 3 Year Standard & Poor’s 500 Index 8.6% 40.8% 18.7% Russell 2000 Index 4.3% 62.0% 13.5% MSCI EAFE Index (Net) 5.2% 32.4% 8.3% NCREIF Property Index 3.6% 7.4% 5.5% CS Hedge Index 3.0% 16.6% 5.9% BbgBarc U.S. Aggregate 1.8% -0.3% 5.3% 91 Day Treasury Bills 0.0% 0.1% 1.3% Consumer Price Index (NSA) 2.6% 5.4% 2.5% Inflation continues to accelerate in 2021, and it is unclear as to whether this is the beginning of a persistent trend or one effect of a rapidly reopening economy. U.S. CPI is up 6.5% (annualized) YTD through May, largely due to a spike in energy prices, with oil up more than 50%. Fed Chair Jerome Powell believes that price increases will wane, saying that current pressure points "don’t speak to a broadly tight economy." Though not typically large contributors to overall inflation, used car and truck prices, which were up 10% in April and another 7% in May, provide some evidence of p otentially transitory spikes. Real GDP grew by an annualized 6.4% during the first quarter of 2021 and is now just -0.9% below its pre-COVID high. The largest contributor to growth was personal consumption, up 11.4% for the quarter, which added 7.4% to the increase in real GDP. Strong household and business s pending actually detracted from growth in other facets of GDP. Businesses had to draw down inventories and increasing demand for imports acted as detractors to growth. The Atlanta Fed’s GDP now forecast for the second quarter currently stands at 8.3%. Equities: The U.S. stock market, represented by the Standard & Poor’s 500 Index, was up 8.6% for the second quarter of 2021. Nearly all eleven sectors were in positive territory, with Energy (11.3%) and Real Estate (13.1%) representing the best performing sectors. The only sector with negative performance this quarter was Utilities (-0.4%), which represents a relatively small segment of the U.S. market, with a weight of 2.3%. From a size perspective, large-cap outperformed small-cap during the quarter. Style-based results were mixed as large-growth outperformed large-value while growth underperformed within the small-cap space. Fixed Income: The U.S. Treasury yield curve flattened during the quarter with yields beyond a 3-year maturity falling and shorter-term rates generally rising. The 10-year Treasury yield ended the quarter at 1.5%, down .3% from March. Credit spreads tightened, with the spread on the broad high yield market closing the quarter at 2.7%. The Federal Open Market Committee (FOMC) met twice during the quarter, a s scheduled, with no change to their overnight rate. Economists are split, however, on interpreting the Fed’s current intentions. The FOMC recently opened the conversation on possible tapering of bond purchases and their median forecast for the future overnight rate moved from no change to a 0.5% increase --albeit in 2023. However, a week after the last meeting, Chair Jerome Powell indicated that the Fed would not raise rates "preemptively" on possible inflation fears. Alternatives: CalSTRS, the second-largest U.S. public pension fund, recently reported that the hedge fund fee structure is “broken”. CalSTRS is now seeking to replicate hedge funds through cheaper, passive strategies. Overall, Hedge Funds gained more than 10% in 2021, mark ing the industry’s strongest first half performance in over 22 years. Total hedge capital surpassed a record $3.96 trillion. HRF/ CNBC 2 II. Live Universe Comparisons and Reporting Wilshire Public Plan Sponsor Universe Number of Plans 252 Median Size $316.9 Million Total Assets $2.6 Trillion Total Plans over $1 Billion 93 Total Plans between $100 - $1,000 Million 88 Total Plans between $20 Million - $100 Million 42 Total Plans under $20 Million 29 About Wilshire Associates The Wilshire Cooperative is collaboration between Wilshire Associates and more than 60 independent investment consulting firms. Wilshire provides advanced performance measurement and attribution reporting systems to participating firms while Cooperative members provide asset and performance data for their sponsor clients. These are then pooled into peer groups for comparative purposes. Today, the Wilshire Cooperative is the standard utilized by over 1600 plan sponsors with assets over $3.9 trillion dollars. Our Universe Comparisons As a Wilshire affiliate, we are granted access to large and diverse peer comparisons, including t otal fund, portfolio-level, and style- based universes. The Wilshire Public Fund Universe (above) includes the actual, live results of over 250 public pension systems across the country. These are real public funds who face similar investment restrictions and guidelines to your own. These peer -to-peer performance comparisons are critical to the evaluation process. Our Reporting Unique to Southeastern Advisory Services is our customized reporting platform. We have the ability to accurately calculate performance against virtually any benchmark, comparison or metric. These industry -leading tools include sophisticated attribution analyses and holdings-based style and characteristic analysis. Our goal is to deliver a clear, easily-understood picture of performance that fairly assesses the effectiveness of your investment policy, strategy and managers. Each performance report is fully-customized based on your input. We welcome your requests and suggestions. 3 III. PORTFOLIO GROWTH - F IVE Y EARS ENDED J UNE 30, 2021 Period Ending Beginning Value $(000) Net Cash Flow Net Gain/Loss Ending Value $(000) Quarterly Return Fiscal Year Return Sep-16 145,701 -4,828 5,129 146,002 3.5% 12.6% Dec-16 146,002 301 1,788 148,091 1.2% Mar-17 148,091 4,334 6,112 158,537 4.1% June-17 158,537 -2,067 4,935 161,405 3.1% Sep-17 161,405 -2,090 5,649 164,965 3.5% 12.5% Dec-17 164,965 3,323 7,195 175,483 4.3% Mar-18 175,483 -712 327 175,097 0.2% Jun-18 175,097 -2,262 3,021 175,856 1.7% Sep-18 175,856 -2,586 5,524 178,794 3.2% 9.7% Dec-18 178,794 -1,512 -15,841 161,441 -8.9% Mar-19 161,441 1,914 15,001 178,356 9.2% Jun-19 178,356 -89 6,458 184,724 3.6% Sep-19 184,724 -2,899 1,294 183,120 0.7% 3.8% Dec-19 183,120 4,101 10,745 197,966 5.7% Mar-20 197,966 -2,299 -29,680 165,987 -15.1% Jun-20 165,987 -2,853 22,141 185,276 13.3% Sep-20 185,276 -2,604 10,440 193,112 5.5% 7.3% Dec-20 193,112 3,699 19,244 216,055 9.9% Mar-21 216,055 -1,702 5,455 219,807 2.5% Jun-21 219,807 -3,154 12,658 229,312 5.8% 19.3% Total 145,701 -13,985 97,595 229,312 69.8% Annual Return Objective: 6.9% 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 220.0 230.0 240.0 06/16 12/16 06/17 12/17 06/18 12/18 06/19 12/19 06/20 12/20 06/21Market Value (In Millions)Total Fund Net Cash Flow Only 4 IV. ALLOCATION OF ASSETS Asset Class Target Allocation Current Allocation Median Public Plan Dom estic Equity 45% 52.0% 54.0 % International Equity 20% 13.8 % 11.1 % Real Estate 15% 15.1 % 1.0 % Fixed Income 20% 18.8% 20.9 % Cash Equivalents 0% 0.3 % 1.8 % 09/18 12/18 03/19 06/19 09/19 12/19 03/20 06/20 09/20 12/20 03/21 06/21 Domestic Equity %46.4 43.3 44.9 45.2 46.1 47.4 42.5 46.8 48.4 49.2 51.0 52.0 Intl Equity %18.1 17.2 17.5 17.2 15.9 15.9 13.8 13.3 13.0 13.7 13.5 13.8 Real Estate %16.1 18.2 17.7 17.2 17.5 16.5 19.9 17.5 16.8 15.3 15.2 15.1 Domestic Fixed %18.1 20.7 19.0 19.0 19.2 19.2 22.1 21.7 21.0 21.1 19.7 18.8 Cash & Equiv %1.3 0.6 0.9 1.5 1.2 1.0 1.7 0.8 0.8 0.7 0.5 0.3 Historical Asset Allocation Domestic Equity % Intl Equity % Real Estate % Domestic Fixed % Cash & Equiv % Dom Equity 45% Intl Equity 20% Real Estate 15% Fixed Income 20% Policy Allocation Dom Equity 52.0% Intl Equity 13.8% Real Estate 15.1% Fixed Income 18.8% Cash 0.3% Current Allocation 5 Manager Dom Equity Intl Equity Real Estate Fixed Income Cash Atlanta Capital 100.0%0.0%0.0%0.0%0.0% Clearbridge 99.3%0.0%0.0%0.0%0.7% Vanguard 500 100.0%0.0%0.0%0.0%0.0% Vanguard Dividend Growth Fund 100.0%0.0%0.0%0.0%0.0% Mutual of America S&P 400 99.9%0.0%0.0%0.0%0.1% Europacific Growth 0.0%100.0%0.0%0.0%0.0% Harding Loevner Intl Equity 0.0%100.0%0.0%0.0%0.0% Invesco / Oppenheimer Intl Growth 0.0%100.0%0.0%0.0%0.0% Alliance Bernstein- Fixed 0.0%0.0%0.0%98.6%1.4% Garcia Hamilton - Fixed 0.0%0.0%0.0%99.1%0.9% PIMCO Capital & Sec & Fin Ins 0.0%0.0%0.0%100.0%0.0% PIMCO Income 0.0%0.0%0.0%100.0%0.0% JP Morgan RE Strategic Property 0.0%0.0%100.0%0.0%0.0% JP Morgan RE Special Situation 0.0%0.0%100.0%0.0%0.0% Total Fund 52.0%13.8%15.1%18.8%0.3% 6 V. MANAGER ALLOCATION AND CASH FLOWS- Quarter ending June 30, 2021 Manager Beginning Value % Alloc Cash In Cash Out Gain/Loss Ending Value % Alloc Clearbridge $36,857,199 16.8%$0 ($1,750,361)$4,094,545 $39,201,383 17.1% Schwab Total Stock Market Index $17,999,706 8.2%$0 $0 $1,491,070 $19,490,776 8.5% Vanguard 500 $9,950,001 4.5%$0 $0 $849,450 $10,799,450 4.7% Vanguard Dividend Growth Fund $11,795,059 5.4%$0 $0 $773,980 $12,569,039 5.5% Large Cap Equity $76,601,965 34.8%$0 ($1,750,361)$7,209,044 $82,060,648 35.8% Atlanta Capital $19,831,448 9.0%$0 $0 $1,000,906 $20,832,353 9.1% Mutual of America S&P 400 $16,116,701 7.3%$123 $0 $584,822 $16,701,646 7.3% SMID Cap Equity $35,948,149 16.4%$123 $0 $1,585,728 $37,533,999 16.4% EuroPacific Growth R6 $16,121,685 7.3%$0 $0 $1,124,188 $17,245,872 7.5% Harding Loevner Intl Equity $13,626,327 6.2%$0 $0 $736,944 $14,363,270 6.3% International Equity $29,748,011 13.5%$0 $0 $1,861,131 $31,609,142 13.8% Alliance Bernstein Fixed $14,568,131 6.6%$0 ($650,030)$255,301 $14,173,402 6.2% Garcia Hamilton Fixed $15,171,759 6.9%$0 ($650,000)$174,670 $14,696,429 6.4% PIMCO Capital Sec & Fin Ins $5,318,321 2.4%$0 $0 $166,764 $5,485,084 2.4% PIMCO Income $8,968,269 4.1%$0 $0 $180,490 $9,148,759 4.0% Fixed Income $44,026,480 20.0%$0 ($1,300,030)$777,224 $43,503,674 19.0% JP Morgan RealEst Strategic Prop (Core)$18,992,986 8.6%$0 ($46,732)$553,607 $19,499,861 8.5% JP Morgan RealEst Special Sit (Value Add)$14,486,961 6.6%$0 ($57,130)$671,402 $15,101,233 6.6% Real Estate $33,479,946 15.2%$0 ($103,862)$1,225,009 $34,601,094 15.1% Money Market (WF Money Mkt)$2,838 0.0%$3,050,141 ($3,050,000)$3 $2,982 0.0% Cash & Equiv.$2,838 0.0%$3,050,141 ($3,050,000)$3 $2,982 0.0% Total Fund $219,807,388 100%$3,050,264 ($6,204,252)$12,658,139 $229,311,538 100% Receipts & Disbursements $1,271,258 $3,532,344 ($3,501,274)$203 $1,302,531 Total Fund + R&D $221,078,646 $6,582,608 ($9,705,526)$12,658,342 $230,614,069 For this report, all performance and asset allocation information for the Total Fund does not include the Receipts & Disbursements Account held at CenterState Bank of Florida. The Money Market assets listed above are held in the Mutual fund ledger at Wells Fargo. Clearbridge $39,201,383 17.1% Vanguard Div Growth Fund $12,569,039 5.5% Schwab $19,490,776 8.5% Vanguard 500 $10,799,450 4.7% Mut of America $16,701,646 7% Atlanta Capital $20,832,353 9.1% Harding Loevner $14,363,270 6.3% EuroPacific $17,245,872 7.5% Bernstein Fixed $14,173,402 6.2% GHA Fixed $14,696,429… PIMCO Capital Sec & Fin Ins $5,485,084 2.4%PIMCO Income $9,148,759 4.0%Money Market $2,982 0.0% JPM RE StratProp $19,499,861 8.5% JPM RE SpecSit $15,101,233 6.6% 7 V I . TOTAL FUND PERFORMANCE COMPARISONS Manager/Index/Universe Quarter 1 Year 3 Year 5 Year Total Fund - Gross of Fees 5.8%25.9%11.1%11.2% Total Fund - Net of Fees 5.7%25.6%10.9%11.0% Target Index 5.4%27.9%12.4%12.0% Wilshire Public Fund Ranking 43 65 64 51 Total Domestic Equities 7.9%40.7%15.8%16.7% 80% Russell 1000/20% Russell 2500 7.9%46.1%18.5%17.7% vs. Equity Returns of Public Funds 29 73 72 56 Total International Equities 6.3%37.4%12.6%13.1% MSCI EAFE Index (Net)5.2%32.4%8.3%10.3% vs. Intl Equity Returns of Public Funds 41 75 28 34 Total Real Estate 3.7%8.1%5.8%6.9% NCREIF ODCE Index 3.9%8.0%5.5%6.6% vs. Real Estate Returns of Total Funds 65 57 61 46 Total Fixed Income 1.8%3.2%5.3%3.2% BbgBarc US Aggregate 1.8%-0.3%5.3%3.0% vs. Fixed Inc Returns of Public Funds 55 32 63 61 Current Policy Index: 35% Russell 1000 Index/ 10% Russell 2000 Index/ 20% BbgBarc US Aggregate/ 20% MSCI EAFE (N et)/15% NCREIF ODCE Index. Prior to 4Q15 35% Russell 1000 Index/ 10% Russell 2500 Index/ 25% BbgBarc US Aggregate/ 20% MSCI EAFE (Net)/10% NCREIF ODCE Index. Prior to 2Q11, Policy Index: 40% Russell 1 000 Index/ 10% Russell 2500 Index/ 35 % BbgBarc US Aggre gate / 15 % MSCI EAFE (Net) For this report, all performance and asset allocation information for the Total Fund does not include the Receipts & Disbursements Account held at CenterState Bank of Florida . Boynton Beach General Employees’ Pension Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 6/21 High 1st Qt Median 3rd Qt Low T Total Fund Return Rank 1 Target Index Return Rank Last Qtr Last 2 Qtrs Last 3 Qtrs Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years 7.2 6.2 5.7 5.0 3.4 5.8 43 5.4 62 11.7 10.4 9.6 7.8 3.9 8.5 71 9.3 60 25.7 22.4 20.7 18.3 6.8 19.3 69 21.8 32 33.3 29.1 27.1 23.8 10.0 25.9 65 27.9 39 17.5 15.6 14.3 12.6 8.6 13.6 61 15.5 25 14.2 12.6 11.7 10.6 8.6 11.1 64 12.4 29 13.2 12.0 11.0 9.7 7.7 10.8 54 11.6 31 13.6 12.1 11.2 9.9 7.3 11.2 51 12.0 29 11.2 10.3 9.5 8.3 6.1 9.8 37 10.2 31 10.3 9.4 8.6 7.5 5.4 9.1 34 9.3 31 0% 5% 10% 15% 20% 25% 30% 35% T1 T1 T 1 T 1 T 1 T 1 T1 T1 T1 T1 8 Boynton Beach General Employees’ Pension Return vs Risk Total Returns of Total Fund Public Sponsors Annualized Rate of Return6.0 7.8 9.6 11.4 13.2 15.0 16.8 18.6 20.4 22.2 24.0 7.0 7.9 8.8 9.7 10.5 11.4 12.3 13.2 14.1 15.0 15.9 T 1MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 6/30/21 Annualized Return Standard Deviation Value Rank Value Rank T Total Fund 1 Target Index Median 11.1 64 15.8 72 12.4 29 15.6 69 11.7 15.0 Annualized Rate of Return5.0 6.3 7.6 8.9 10.2 11.5 12.8 14.1 15.4 16.7 18.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 T 1MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 6/30/21 Annualized Return Standard Deviation Value Rank Value Rank T Total Fund 1 Target Index Median 11.2 51 12.2 72 12.0 29 12.0 69 11.2 11.7 9 10 VII . EQUITY MANAGER COMPARISON Manager/Index/Universe Quarter 1 Year 3 Year 5 Year Schwab Total Stock Market 8.3%44.2%n/a n/a Russell 1000 8.5%43.1%19.2%18.0% vs. LP Large Cap Core Mutual Funds 45 11 n/a n/a Vanguard 500 8.5%40.8%n/a n/a S&P 500 8.5%40.8%18.7%17.6% vs. Large Cap Equity Portfolios 51 45 n/a n/a Clearbridge 11.5%38.6%23.0%22.3% Russell 1000 Growth 11.9%42.5%25.1%23.7% vs. Large Growth Equity Portfolios 33 80 72 70 Vanguard Dividend Growth Fund 6.6%n/a n/a n/a Russell 1000 8.5%43.1%19.2%18.0% `vs. All Large Cap Equity Mutual Funds 78 n/a n/a n/a Mutual of America S&P 400 3.6%52.8%13.0%14.2% S&P 400 3.6%53.2%13.2%14.3% vs. SMID Cap Equity Portfolios 70 37 58 58 Atlanta Capital 5.0%41.1%15.5%16.3% Russell 2500 5.4%57.8%15.2%16.3% vs. SMID Cap Equity Portfolios 17 89 13 5 Manager/Index/Universe Quarter 1 Year 3 Year 5 Year EuroPacific Growth R6 7.0%40.1%13.8%14.5% MSCI EAFE (Net) 5.2%32.4%8.3%10.3% vs. International Equity Mutual Funds 18 37 19 16 Harding Loevner Intl Equity 5.4%34.1%11.4%12.7% MSCI EAFE (Net) 5.2%32.4%8.3%10.3% vs. International Equity Mutual Funds 42 66 33 30 11 Domestic Equity Portfolio Summary: Total Fund * Portfolio 80% R1000/20% R2500 Total Number Of Securities 448 3,510 Equity Market Value 119,304,484 Average Capitalization $(000)383,964,902 373,507,003 Median Capitalization $(000)6,212,298 Equity Segment Yield 0.8 1.3 Equity Segment P/E - Average 47.4 45.9 Equity Segment P/E - Median 22.9 Equity Segment Beta 1.1 1.1 Price/Book Ratio 5.2 4.0 Debt/Equity Ratio 59.7 69.7 Five Year Earnings Growth 15.2 12.1 Ten Largest Holdings Market Value % of Portfolio Quarterly Return Amazon Com Inc 2,834,692 5.1%11.2% Facebook Inc 2,407,892 4.3%18.1% Microsoft Corp 2,057,486 3.7%15.2% Visa Inc 1,937,199 3.5%10.6% Apple Inc 1,874,435 3.4%12.3% Nvidia Corp 1,456,182 2.6%49.9% Adobe Sys Inc 1,407,293 2.5%23.2% Salesforce Com Inc 1,221,350 2.2%15.3% Unitedhealth Group I 1,207,727 2.2%8.0% Home Depot Inc 1,041,176 1.9%5.0% Ten Best Performers Quarterly Return Ten Worst Performers Quarterly Return Scientific Games Cor 101.0%Haemonetics Corp -40.0% Macerich Co 57.7%Emergent Biosolution -32.2% Nvidia Corp 49.0%Tripadvisor Inc -25.1% Crocs Inc 44.8%Fluor Corp -23.3% Staar Surgical Co 44.7%Scotts Co -21.4% Nutanix Inc 43.9%Dycom Inds Inc -19.7% Murphy Oil Corp 42.7%Exelixis Inc -19.3% Targa Res Corp 40.4%Jetblue Awys Corp -17.5% Navient Corp 36.2%Strategic Ed Inc -16.6% Progyny Inc 32.6%Thor Inds Inc -16.1% * Above statistics i ncludes separate account portfolios only, excludes mutual funds. 12 Equity Portfolio Characteristics 0.6% 57.8x $545.0B 1.1 8.2x Dividend Yield P/E Ratio Avg. Market Cap.Beta Price/Book Ratio 0% 20% 40% 60% 80% 100% 120% 140%Percent of R1000 IndexCLEAR R1000G 1.2%33.5x $7.7M 1.2 2.7x 94.0% 96.0% 98.0% 100.0% 102.0% 104.0% 106.0% 108.0% 110.0% 112.0% Dividend Yield P/E Ratio Avg. Market Cap.Beta Price/Book RatioPercent of R2500 IndexMut of America S&P Midcap 400 13 Growth-Value Size Clearbridge 78.8 106.0 Mutual of America -4.1 -26.4 Total Fund 53.1 64.9 Russell 2000 -3.4 -137.0 Russell 1000 12.1 93.4 Russell 1000 Growth 82.7 114.9 Russell 1000 Value -61.9 70.9 Clearbridge Mut of America Total Fund R2000 R1000 R1000GR1000V -160 -110 -60 -10 40 90 140 -160 -110 -60 -10 40 90 140 Equity Style Map (Current Quarter) Small Cap Large Cap ValueGrowth Schwab Total Stock Market Index (USD) Morningstar Analyst RatingTM Œ 03-16-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQQ S&P 500 TR USD Russell 1000 TR USD US Fund Large Blend 1,257 US Fund Large Blend Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 14.04 4.08 1.12 9.04 30.88 2020 -20.98 22.07 9.06 14.75 20.71 2021 6.44 8.28 — — 15.26 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 44.23 18.64 17.82 14.63 8.09 Std 06-30-2021 44.23 — 17.82 14.63 8.09 Total Return 44.23 18.64 17.82 14.63 8.09 +/- Std Index 3.44 -0.03 0.17 -0.21 — +/- Cat Index 1.16 -0.51 -0.18 -0.27 — % Rank Cat 22 27 21 21 No. in Cat 1386 1257 1099 820 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield — — Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 877-824-5615 or visit www.schwab.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.03 12b1 Expense %NA Gross Expense Ratio %0.03 Risk and Return Profile 3 Yr 5 Yr 10 Yr 1257 funds 1099 funds 820 funds Morningstar RatingTM 3Q 4Q 4Q Morningstar Risk +Avg +Avg Avg Morningstar Return +Avg +Avg +Avg 3 Yr 5 Yr 10 Yr Standard Deviation 19.45 15.66 14.14 Mean 18.64 17.82 14.63 Sharpe Ratio 0.92 1.06 1.00 MPT Statistics Standard Index Best Fit Index Russell 3000 TR USD Alpha -0.68 -0.09 Beta 1.05 1.00 R-Squared 99.43 99.99 12-Month Yield — Potential Cap Gains Exp 42.30% 4 4 4 4 4 4 4 4 4 4 4 4 99 99 99 97 98 98 99 99 99 99 99 99 4k 10k 20k 40k 60k 80k 100k Investment Style Equity Stocks % Growth of $10,000 Schwab Total Stock Market Index 48,864 Category Average 39,139 Standard Index 48,668 & * * * * * & * * * & _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 22.75 22.62 25.76 33.67 36.98 36.11 39.74 47.25 43.58 55.96 66.46 76.60 NAV/Price 17.23 1.32 16.30 33.36 12.39 0.41 12.58 21.06 -5.30 30.88 20.71 15.26 Total Return % 2.16 -0.79 0.30 0.98 -1.29 -0.98 0.62 -0.77 -0.92 -0.60 2.31 0.01 +/- Standard Index 1.13 -0.18 -0.12 0.25 -0.84 -0.51 0.53 -0.63 -0.52 -0.54 -0.25 0.30 +/- Category Index 12 28 29 32 39 37 21 48 44 38 21 —% Rank Cat 2010 1786 1686 1559 1568 1606 1409 1396 1402 1387 1363 1460 No. of Funds in Cat Portfolio Analysis 06-30-2021 Asset Allocation %Net % Long % Short % Cash 0.66 0.66 0.00 US Stocks 98.22 98.22 0.00 Non-US Stocks 1.12 1.12 0.00 Bonds 0.00 0.00 0.00 Other/Not Clsfd 0.00 0.00 0.00 Total 100.00 100.00 0.00 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 25.5 0.96 0.97 P/C Ratio TTM 17.0 0.97 0.96 P/B Ratio TTM 4.2 0.94 0.83 Geo Avg Mkt Cap $mil 110861 0.56 0.42 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity — Avg Eff Duration — Avg Wtd Coupon — Avg Wtd Price — Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 98.9 1.00 Greater Europe 0.8 0.98 Greater Asia 0.3 1.53 Share Chg since 05-2021 Share Amount Holdings : 3,364 Total Stocks , 0 Total Fixed-Income, 4% Turnover Ratio Net Assets % Y 6 mil Apple Inc 4.78 T 3 mil Microsoft Corp 4.54 T 159,677 Amazon.com Inc 3.28 T 892,518 Facebook Inc A 1.85 T 112,016 Alphabet Inc A 1.63 Y 106,068 Alphabet Inc Class C 1.59 Y 705,894 Berkshire Hathaway Inc Class B 1.17 T 287,078 Tesla Inc 1.16 T 232,053 NVIDIA Corp 1.11 Y 1 mil JPMorgan Chase & Co 1.05 T 980,800 Johnson & Johnson 0.96 T 630,031 Visa Inc Class A 0.88 T 351,429 UnitedHealth Group Inc 0.84 T 437,570 PayPal Holdings Inc 0.76 Y 395,932 The Home Depot Inc 0.75 Sector Weightings Stocks %Rel Std Index h Cyclical 31.8 1.02 r Basic Materials 2.4 1.08 t Consumer Cyclical 11.9 0.99 y Financial Services 13.9 0.98 u Real Estate 3.6 1.39 j Sensitive 46.7 0.99 i Communication Services 10.5 0.94 o Energy 2.8 0.98 p Industrials 9.3 1.05 a Technology 24.1 0.99 k Defensive 21.5 0.98 s Consumer Defensive 5.7 0.91 d Healthcare 13.5 1.03 f Utilities 2.3 0.94 Operations Family:Schwab Funds Manager:Multiple Tenure:8.5 Years Objective:Growth and Income Base Currency:USD Ticker:SWTSX ISIN:US8085097561 Minimum Initial Purchase: $0 Purchase Constraints:— Incept:06-01-1999 Type:MF Total Assets:$17,231.22 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 5 of 16 14 Vanguard 500 Index Admiral (USD) Morningstar Analyst RatingTM Œ 02-10-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQQQ S&P 500 TR USD Russell 1000 TR USD US Fund Large Blend 1,257 US Fund Large Blend Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 13.65 4.30 1.69 9.06 31.46 2020 -19.61 20.54 8.92 12.15 18.37 2021 6.18 8.54 — — 15.24 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 40.76 18.64 17.61 14.80 7.84 Std 06-30-2021 40.76 — 17.61 14.80 7.84 Total Return 40.76 18.64 17.61 14.80 7.84 +/- Std Index -0.03 -0.03 -0.04 -0.04 — +/- Cat Index -2.31 -0.52 -0.38 -0.09 — % Rank Cat 51 27 26 13 No. in Cat 1386 1257 1099 820 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield 08-05-21 1.23 1.23 Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800-662-7447 or visit www.vanguard.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.04 12b1 Expense %NA Gross Expense Ratio %0.04 Risk and Return Profile 3 Yr 5 Yr 10 Yr 1257 funds 1099 funds 820 funds Morningstar RatingTM 4Q 4Q 5Q Morningstar Risk Avg Avg Avg Morningstar Return +Avg +Avg +Avg 3 Yr 5 Yr 10 Yr Standard Deviation 18.53 14.99 13.59 Mean 18.64 17.61 14.80 Sharpe Ratio 0.95 1.08 1.04 MPT Statistics Standard Index Best Fit Index S&P 500 TR USD Alpha -0.03 -0.03 Beta 1.00 1.00 R-Squared 100.00 100.00 12-Month Yield 1.33% Potential Cap Gains Exp 41.82% 4 4 4 4 4 4 4 4 4 4 4 4 100 100 100 99 100 100 100 100 99 100 100 100 4k 10k 20k 40k 60k 80k 100k Investment Style Equity Stocks % Growth of $10,000 Vanguard 500 Index Admiral 48,499 Category Average 39,139 Standard Index 48,668 * & * * & & * * * & * _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 115.83 115.80 131.37 170.36 189.89 188.48 206.57 246.82 231.44 298.14 346.57 396.66 NAV/Price 15.05 2.08 15.96 32.33 13.64 1.36 11.93 21.79 -4.43 31.46 18.37 15.24 Total Return % -0.01 -0.03 -0.04 -0.06 -0.05 -0.02 -0.03 -0.05 -0.04 -0.03 -0.03 -0.01 +/- Standard Index -1.05 0.58 -0.46 -0.78 0.40 0.45 -0.13 0.10 0.36 0.03 -2.60 0.29 +/- Category Index 29 17 35 42 18 20 27 29 27 24 38 —% Rank Cat 2010 1786 1686 1559 1568 1606 1409 1396 1402 1387 1363 1460 No. of Funds in Cat Portfolio Analysis 06-30-2021 Asset Allocation %Net % Long % Short % Cash 0.04 0.04 0.00 US Stocks 98.96 98.96 0.00 Non-US Stocks 1.01 1.01 0.00 Bonds 0.00 0.00 0.00 Other/Not Clsfd 0.00 0.00 0.00 Total 100.00 100.00 0.00 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 26.5 1.00 1.01 P/C Ratio TTM 17.6 1.00 1.00 P/B Ratio TTM 4.4 1.00 0.89 Geo Avg Mkt Cap $mil 197452 1.00 0.74 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity — Avg Eff Duration — Avg Wtd Coupon — Avg Wtd Price — Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 99.0 1.00 Greater Europe 0.8 1.00 Greater Asia 0.2 1.00 Share Chg since 05-2021 Share Amount Holdings : 507 Total Stocks , 0 Total Fixed-Income, 4% Turnover Ratio Net Assets % Y 324 mil Apple Inc 5.92 Y 156 mil Microsoft Corp 5.62 T 9 mil Amazon.com Inc 4.06 Y 50 mil Facebook Inc A 2.29 Y 6 mil Alphabet Inc A 2.02 Y 6 mil Alphabet Inc Class C 1.97 Y 39 mil Berkshire Hathaway Inc Class B 1.44 T 16 mil Tesla Inc 1.44 T 13 mil NVIDIA Corp 1.37 Y 63 mil JPMorgan Chase & Co 1.30 T 54 mil Johnson & Johnson 1.19 Y 35 mil Visa Inc Class A 1.08 Y 20 mil UnitedHealth Group Inc 1.04 T 24 mil PayPal Holdings Inc 0.94 Y 22 mil The Home Depot Inc 0.93 Sector Weightings Stocks %Rel Std Index h Cyclical 31.1 1.00 r Basic Materials 2.3 1.00 t Consumer Cyclical 12.0 1.00 y Financial Services 14.2 1.00 u Real Estate 2.6 1.00 j Sensitive 47.1 1.00 i Communication Services 11.1 1.00 o Energy 2.8 1.00 p Industrials 8.9 1.00 a Technology 24.2 1.00 k Defensive 21.8 1.00 s Consumer Defensive 6.3 1.00 d Healthcare 13.1 1.00 f Utilities 2.4 0.99 Operations Family:Vanguard Manager:Multiple Tenure:5.3 Years Objective:Growth Base Currency:USD Ticker:VFIAX ISIN:US9229087104 Minimum Initial Purchase: $3,000 Purchase Constraints:— Incept:11-13-2000 Type:MF Total Assets:$246,264.43 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 6 of 16 15 Vanguard Dividend Growth Inv (USD) Morningstar Analyst RatingTM Œ 02-26-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQ S&P 500 TR USD Russell 1000 TR USD US Fund Large Blend 1,257 US Fund Large Blend Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 13.84 6.29 3.47 4.58 30.95 2020 -17.29 13.14 9.88 8.98 12.06 2021 4.26 6.56 — — 11.10 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 33.04 17.04 14.69 13.45 9.31 Std 06-30-2021 33.04 — 14.69 13.45 9.31 Total Return 33.04 17.04 14.69 13.45 9.31 +/- Std Index -7.76 -1.63 -2.95 -1.39 — +/- Cat Index -10.04 -2.12 -3.30 -1.45 — % Rank Cat 89 55 80 55 No. in Cat 1386 1257 1099 820 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield 08-05-21 1.44 1.44 Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800-662-7447 or visit www.vanguard.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.25 12b1 Expense %NA Gross Expense Ratio %0.26 Risk and Return Profile 3 Yr 5 Yr 10 Yr 1257 funds 1099 funds 820 funds Morningstar RatingTM 3Q 3Q 3Q Morningstar Risk Low Low Low Morningstar Return Avg -Avg Avg 3 Yr 5 Yr 10 Yr Standard Deviation 15.97 13.14 11.71 Mean 17.04 14.69 13.45 Sharpe Ratio 0.99 1.03 1.09 MPT Statistics Standard Index Best Fit Index S&P 500 TR USD Alpha 1.50 1.50 Beta 0.81 0.81 R-Squared 88.87 88.87 12-Month Yield 1.51% Potential Cap Gains Exp 40.14% 4 4 4 4 4 4 7 4 4 4 4 4 95 94 98 96 97 97 99 98 99 98 98 99 4k 10k 20k 40k 60k 80k 100k Investment Style Equity Stocks % Growth of $10,000 Vanguard Dividend Growth Inv 42,581 Category Average 39,139 Standard Index 48,668 ) & ) ( * & ) ( & * ) _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 14.38 15.42 16.64 21.36 23.09 22.42 23.43 26.55 24.46 30.56 33.24 36.46 NAV/Price 11.42 9.43 10.39 31.53 11.85 2.62 7.53 19.33 0.18 30.95 12.06 11.10 Total Return % -3.64 7.31 -5.62 -0.86 -1.84 1.24 -4.43 -2.50 4.56 -0.54 -6.34 -4.15 +/- Standard Index -4.67 7.92 -6.04 -1.59 -1.39 1.70 -4.52 -2.35 4.96 -0.48 -8.90 -3.86 +/- Category Index 81 1 91 55 47 11 84 70 3 36 76 —% Rank Cat 2010 1786 1686 1559 1568 1606 1409 1396 1402 1387 1363 1460 No. of Funds in Cat Portfolio Analysis 06-30-2021 Asset Allocation % 03-31-2021 Net % Long % Short % Cash 1.08 1.08 0.01 US Stocks 88.66 88.66 0.00 Non-US Stocks 10.26 10.26 0.00 Bonds 0.00 0.00 0.00 Other/Not Clsfd 0.00 0.00 0.00 Total 100.00 100.01 0.01 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 29.1 1.10 1.10 P/C Ratio TTM 18.7 1.06 1.06 P/B Ratio TTM 5.8 1.31 1.17 Geo Avg Mkt Cap $mil 153227 0.78 0.58 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity — Avg Eff Duration — Avg Wtd Coupon — Avg Wtd Price — Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 92.3 0.93 Greater Europe 7.7 9.65 Greater Asia 0.0 0.00 Share Chg since 03-2021 Share Amount Holdings : 41 Total Stocks , 0 Total Fixed-Income, 15% Turnover Ratio Net Assets % Y 11 mil Johnson & Johnson 3.46 Y 8 mil McDonald's Corp 3.39 Y 4 mil UnitedHealth Group Inc 3.36 Y 10 mil American Express Co 3.27 Y 30 mil Coca-Cola Co 3.12 Y 4 mil Northrop Grumman Corp 3.03 Y 6 mil Microsoft Corp 2.99 Y 12 mil Medtronic PLC 2.97 T 19 mil Colgate-Palmolive Co 2.96 T 7 mil Honeywell International Inc 2.94 Y 7 mil Union Pacific Corp 2.94 T 22 mil TJX Companies Inc 2.93 Y 10 mil Nike Inc Class B 2.90 Y 10 mil Marsh & McLennan Companies Inc 2.79 Y 5 mil Linde PLC 2.75 Sector Weightings Stocks %Rel Std Index h Cyclical 32.5 1.05 r Basic Materials 4.9 2.16 t Consumer Cyclical 11.5 0.96 y Financial Services 12.4 0.87 u Real Estate 3.7 1.42 j Sensitive 31.0 0.66 i Communication Services 1.9 0.17 o Energy 0.0 0.00 p Industrials 23.7 2.67 a Technology 5.5 0.23 k Defensive 36.5 1.67 s Consumer Defensive 15.8 2.50 d Healthcare 20.7 1.58 f Utilities 0.0 0.00 Operations Family:Vanguard Manager:Donald Kilbride Tenure:15.5 Years Objective:Equity-Income Base Currency:USD Ticker:VDIGX ISIN:US9219086041 Minimum Initial Purchase: $3,000 Purchase Constraints:A Incept:05-15-1992 Type:MF Total Assets:$52,953.42 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 7 of 16 16 American Funds Europacific Growth R6 (USD) Morningstar Analyst RatingTM „ 08-04-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQ MSCI ACWI Ex USA NR USD MSCI ACWI Ex USA Growth NR USD US Fund Foreign Large Growth384 US Fund Foreign Large Growth Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 13.20 3.87 -1.59 10.09 27.40 2020 -22.43 22.77 9.66 19.95 25.27 2021 -0.43 6.97 — — 6.51 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 40.10 13.79 14.50 8.33 10.81 Std 06-30-2021 40.10 — 14.50 8.33 10.81 Total Return 40.10 13.79 14.50 8.33 10.81 +/- Std Index 4.39 4.40 3.42 2.89 — +/- Cat Index 6.42 0.56 1.13 1.06 — % Rank Cat 22 42 34 38 No. in Cat 445 384 323 225 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield 06-30-21 0.49 0.46 Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800-421-4225 or visit www.americanfunds.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.41 12b1 Expense %NA Gross Expense Ratio %0.46 Risk and Return Profile 3 Yr 5 Yr 10 Yr 384 funds 323 funds 225 funds Morningstar RatingTM 3Q 3Q 3Q Morningstar Risk +Avg +Avg Avg Morningstar Return Avg Avg Avg 3 Yr 5 Yr 10 Yr Standard Deviation 18.69 15.46 14.91 Mean 13.79 14.50 8.33 Sharpe Ratio 0.72 0.88 0.57 MPT Statistics Standard Index Best Fit Index Morningstar Gbl Mkts xUS GR USD Alpha 3.78 3.19 Beta 1.04 1.03 R-Squared 96.37 96.68 12-Month Yield 0.50% Potential Cap Gains Exp 45.28% 4 7 7 7 7 7 7 7 7 7 7 7 92 91 90 92 86 89 93 92 92 92 97 96 4k 10k 20k 40k 60k 80k 100k Investment Style Equity Stocks % Growth of $10,000 American Funds Europacific Growth R6 25,580 Category Average 25,064 Standard Index 19,611 _ _ _ _ * ( & * ( ( * _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 41.37 35.13 41.18 49.03 47.09 45.32 45.04 56.14 44.99 55.55 69.30 70.75 NAV/Price 9.76 -13.31 19.64 20.58 -2.29 -0.48 1.01 31.17 -14.91 27.40 25.27 6.51 Total Return % -1.39 0.40 2.81 5.29 1.57 5.18 -3.48 3.98 -0.71 5.89 14.61 -2.65 +/- Standard Index -4.69 0.90 2.97 5.09 0.36 0.77 0.89 -0.84 -0.48 0.06 3.06 -0.01 +/- Category Index — — — — 27 66 20 44 58 59 33 —% Rank Cat — — — — 341 361 363 399 439 469 447 457 No. of Funds in Cat Portfolio Analysis 06-30-2021 Asset Allocation %Net % Long % Short % Cash 3.57 3.57 0.00 US Stocks 0.94 0.94 0.00 Non-US Stocks 95.32 95.32 0.00 Bonds 0.05 0.05 0.00 Other/Not Clsfd 0.13 0.13 0.00 Total 100.00 100.00 0.00 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 27.1 1.43 0.94 P/C Ratio TTM 17.0 1.57 0.90 P/B Ratio TTM 2.9 1.49 0.75 Geo Avg Mkt Cap $mil 63906 1.33 1.04 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity — Avg Eff Duration — Avg Wtd Coupon 2.63 Avg Wtd Price — Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 15.2 1.48 Greater Europe 44.5 1.02 Greater Asia 40.2 0.87 Share Chg since 03-2021 Share Amount Holdings : 376 Total Stocks , 1 Total Fixed-Income, 32% Turnover Ratio Net Assets % Y 10 mil ASML Holding NV 3.40 T 210 mil Taiwan Semiconductor Manufacturing 2.28 Y 352 mil AIA Group Ltd 2.22 Y 151 mil Reliance Industries Ltd Shs Demate 2.19 T 3 mil MercadoLibre Inc 2.09 Y 5 mil LVMH Moet Hennessy Louis Vuitton SE 2.09 T 164 mil Vale SA ADR 1.91 Y 13 mil Sea Ltd ADR 1.87 Y 26 mil Airbus SE 1.69 T 172 mil WuXi Biologics (Cayman) Inc Regist 1.60 Y 2 mil Shopify Inc A 1.48 Y 138 mil HDFC Bank Ltd 1.42 Y 5 mil Keyence Corp 1.22 T 101 mil VALE SA 1.18 Y 105 mil Daiichi Sankyo Co Ltd 1.15 Sector Weightings Stocks %Rel Std Index h Cyclical 38.2 0.91 r Basic Materials 8.1 0.98 t Consumer Cyclical 13.1 1.06 y Financial Services 16.3 0.88 u Real Estate 0.8 0.29 j Sensitive 41.3 1.11 i Communication Services 7.5 0.99 o Energy 5.6 1.18 p Industrials 9.8 0.86 a Technology 18.4 1.38 k Defensive 20.5 0.97 s Consumer Defensive 5.0 0.58 d Healthcare 13.0 1.36 f Utilities 2.6 0.88 Operations Family:American Funds Manager:Multiple Tenure:20.2 Years Objective:Foreign Stock Base Currency: USD Ticker:RERGX ISIN:US2987068218 Minimum Initial Purchase: $250 Min Auto Investment Plan: $250 Minimum IRA Purchase: $25 Purchase Constraints:A Incept:05-01-2009 Type:MF Total Assets:$196,616.52 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 1 of 16 17 Harding Loevner International Eq Instl (USD) Morningstar Analyst RatingTM „ 04-12-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQ MSCI ACWI Ex USA NR USD MSCI ACWI Ex USA Growth NR USD US Fund Foreign Large Growth384 US Fund Foreign Large Growth Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 11.60 4.45 -2.40 10.07 25.23 2020 -19.37 18.29 8.63 16.13 20.33 2021 0.84 5.41 — — 6.30 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 34.10 11.43 12.71 7.87 6.99 Std 06-30-2021 34.10 — 12.71 7.87 6.99 Total Return 34.10 11.43 12.71 7.87 6.99 +/- Std Index -1.62 2.05 1.63 2.43 — +/- Cat Index 0.42 -1.80 -0.65 0.60 — % Rank Cat 49 79 62 51 No. in Cat 445 384 323 225 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield — — Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 877-435-8105 or visit www.hardingloevnerfunds.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.67 12b1 Expense %NA Gross Expense Ratio %0.81 Risk and Return Profile 3 Yr 5 Yr 10 Yr 384 funds 323 funds 225 funds Morningstar RatingTM 2Q 3Q 3Q Morningstar Risk Avg Avg Avg Morningstar Return -Avg Avg Avg 3 Yr 5 Yr 10 Yr Standard Deviation 17.31 14.44 14.69 Mean 11.43 12.71 7.87 Sharpe Ratio 0.64 0.82 0.55 MPT Statistics Standard Index Best Fit Index MSCI ACWI Ex USA NR USD Alpha 2.23 2.23 Beta 0.95 0.95 R-Squared 94.15 94.15 12-Month Yield — Potential Cap Gains Exp 21.29% 7 7 7 7 7 7 7 7 7 4 7 4 94 96 96 96 97 96 97 97 98 98 96 97 4k 10k 20k 40k 60k 80k 100k Investment Style Equity Stocks % Growth of $10,000 Harding Loevner International Eq Instl 26,528 Category Average 25,064 Standard Index 19,611 & * & ) & ) & ( * ) ( _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 14.98 13.36 15.94 18.03 17.56 17.10 17.83 22.78 19.31 23.80 28.42 30.21 NAV/Price 17.49 -9.78 20.28 14.02 -1.61 -1.62 5.30 29.90 -13.96 25.23 20.33 6.30 Total Return % 6.34 3.93 3.45 -1.27 2.25 4.04 0.81 2.71 0.23 3.72 9.67 -2.86 +/- Standard Index 3.04 4.43 3.62 -1.47 1.04 -0.36 5.18 -2.11 0.46 -2.11 -1.88 -0.22 +/- Category Index 22 31 24 77 24 83 2 53 47 76 56 —% Rank Cat 261 251 250 278 341 361 363 399 439 469 447 457 No. of Funds in Cat Portfolio Analysis 06-30-2021 Asset Allocation %Net % Long % Short % Cash 2.57 2.57 0.00 US Stocks 0.00 0.00 0.00 Non-US Stocks 97.43 97.43 0.00 Bonds 0.00 0.00 0.00 Other/Not Clsfd 0.00 0.00 0.00 Total 100.00 100.00 0.00 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 25.5 1.35 0.88 P/C Ratio TTM 15.6 1.44 0.83 P/B Ratio TTM 3.0 1.56 0.79 Geo Avg Mkt Cap $mil 82737 1.72 1.34 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity — Avg Eff Duration — Avg Wtd Coupon — Avg Wtd Price — Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 5.9 0.57 Greater Europe 54.1 1.24 Greater Asia 40.1 0.87 Share Chg since 03-2021 Share Amount Holdings : 59 Total Stocks , 40 Total Fixed-Income, 17% Turnover Ratio Net Assets % T 21 mil Infineon Technologies AG 3.93 T 7 mil Taiwan Semiconductor Manufacturing 3.68 T 12 mil Atlas Copco AB A 3.47 T 2 mil L'Oreal SA 3.42 T 52 mil AIA Group Ltd 3.02 T 260,587 Adyen NV 3.00 T 8 mil BHP Group Ltd ADR 2.87 T 2 mil Roche Holding AG 2.78 T 3 mil Schneider Electric SE 2.47 Y 509 mil Northern Institutional Treasury Pr 2.39 T 7 mil Tencent Holdings Ltd 2.39 T 2 mil Allianz SE 2.35 T 22 mil DBS Group Holdings Ltd 2.29 T 6 mil Rio Tinto PLC 2.15 T 637,290 Lonza Group Ltd 2.12 Sector Weightings Stocks %Rel Std Index h Cyclical 29.2 0.70 r Basic Materials 10.2 1.23 t Consumer Cyclical 2.4 0.19 y Financial Services 16.6 0.90 u Real Estate 0.0 0.00 j Sensitive 43.0 1.16 i Communication Services 4.3 0.57 o Energy 3.1 0.65 p Industrials 14.7 1.29 a Technology 20.9 1.56 k Defensive 27.8 1.32 s Consumer Defensive 13.1 1.52 d Healthcare 13.7 1.43 f Utilities 1.1 0.37 Operations Family:Harding Loevner Manager:Multiple Tenure:16.8 Years Objective:Foreign Stock Base Currency:USD Ticker:HLMIX ISIN:US4122951076 Minimum Initial Purchase: $100,000 Purchase Constraints:— Incept:05-11-1994 Type:MF Total Assets:$22,218.94 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 2 of 16 18 19 REAL ESTATE PERFORMANCE COMPARISONS Manager/Index/Universe Quarter 1 Year 3 Year 5 Year JPM Real Estate SPF (Core)2.9%6.8%4.7%6.0% NCREIF ODCE Index 3.9%8.0%5.5%6.6% vs. Real Estate Portfolios 76 76 72 69 JPM Real Estate SSF (Value Add)4.7%9.9%7.3%8.3% NCREIF ODCE Index 3.9%8.0%5.5%6.6% vs. Real Estate Portfolios 46 48 44 29 VIII. FIXED INCOME PERFORMANCE COMPARISONS Manager/Index/Universe Quarter 1 Year 3 Year 5 Year Alliance Bernstein 1.8%-0.5%5.1%2.9% BbgBarc US Aggregate 1.8%-0.3%5.3%3.0% vs. Fixed Income Portfolios 49 96 62 72 GHA 1.2%-0.4%4.6%3.0% BbgBarc US Aggregate 1.8%-0.3%5.3%3.0% vs. Fixed Income Portfolios 69 90 82 61 PIMCO Capital Sec & Fin Ins 3.1%n/a n/a n/a CPI + 4 3.6%n/a n/a n/a PIMCO Income 2.0%10.2%n/a n/a BbgBarc US Aggregate 1.8%-0.3%n/a n/a vs. Multi-Sector Income Mutual Funds 55 41 n/a n/a 20 Fixed Income Portfolio Characteristics 0.7% 1.9 6.0 9.4 1.7%2.9 7.6 9.0 0% 20% 40% 60% 80% 100% 120% 140% Yield to Maturity Current Coupon Effective Duration QualityPercent of BbgBarc AggBernstein GHA BbgBarc Aggregate PIMCO Income Instl (USD)Morningstar Analyst RatingTM Œ 05-17-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQQQ BBgBarc US Agg Bond TR USD BBgBarc US Universal TR USD US Fund Multisector Bond289 US Fund Multisector Bond Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 3.03 2.40 -0.11 2.53 8.05 2020 -7.66 6.48 3.01 4.46 5.80 2021 -0.17 2.01 — — 1.84 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 9.59 5.65 5.80 6.97 7.91 Std 06-30-2021 9.59 — 5.80 6.97 7.91 Total Return 9.59 5.65 5.80 6.97 7.91 +/- Std Index 9.92 0.31 2.78 3.58 — +/- Cat Index 8.47 0.01 2.33 3.23 — % Rank Cat 47 48 15 1 No. in Cat 347 289 256 134 Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield 06-30-21 2.84 2.84 Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 888-877-4626 or visit www.pimco.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.50 12b1 Expense %NA Gross Expense Ratio %0.62 Risk and Return Profile 3 Yr 5 Yr 10 Yr 289 funds 256 funds 134 funds Morningstar RatingTM 3Q 5Q 5Q Morningstar Risk -Avg -Avg -Avg Morningstar Return Avg +Avg High 3 Yr 5 Yr 10 Yr Standard Deviation 5.75 4.56 4.20 Mean 5.65 5.80 6.97 Sharpe Ratio 0.77 1.01 1.48 MPT Statistics Standard Index Best Fit Index Morningstar EM Bd GR USD Alpha 2.91 0.55 Beta 0.38 0.63 R-Squared 5.08 87.76 12-Month Yield 4.10% Potential Cap Gains Exp 0.52% 0 0 0 0 0 0 0 0 0 0 0 0 84 94 88 87 72 69 73 68 72 65 57 61 4k 10k 20k 40k 60k 80k 100k Investment Style Fixed-Income Bond % Growth of $10,000 PIMCO Income Instl 24,945 Category Average 17,232 Standard Index 15,280 & & & & & & * & & ) * _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History 11.04 10.85 12.36 12.26 12.33 11.73 12.06 12.41 11.81 12.04 12.11 12.09 NAV/Price 20.46 6.36 22.17 4.80 7.18 2.63 8.72 8.60 0.58 8.05 5.80 1.84 Total Return % 13.92 -1.48 17.95 6.83 1.21 2.08 6.07 5.06 0.57 -0.67 -1.71 3.44 +/- Standard Index 13.29 -1.04 16.63 6.15 1.62 2.20 4.81 4.51 0.84 -1.24 -1.78 2.99 +/- Category Index 1 7 1 18 7 3 31 10 18 78 47 —% Rank Cat 268 250 283 308 276 304 299 321 326 302 336 369 No. of Funds in Cat Portfolio Analysis 03-31-2021 Asset Allocation %Net % Long % Short % Cash 11.42 118.84 107.42 US Stocks 0.75 0.75 0.00 Non-US Stocks 2.75 2.75 0.00 Bonds 79.93 199.62 119.69 Other/Not Clsfd 5.15 5.15 0.00 Total 100.00 327.12 227.12 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 13.6 — 0.82 P/C Ratio TTM 8.8 — 0.68 P/B Ratio TTM 0.9 — 0.59 Geo Avg Mkt Cap $mil 7771 — 0.15 Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity 3.94 Avg Eff Duration 2.50 Avg Wtd Coupon 3.28 Avg Wtd Price 104.99 Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 22.7 — Greater Europe 6.7 — Greater Asia 70.6 — Share Chg since 12-2020 Share Amount Holdings : 15 Total Stocks , 7,108 Total Fixed-Income, 396% Turnover Ratio Net Assets % R 151,108 10 Year Treasury Note Future June -14.65 R 6,887 mil Federal National Mortgage Associat 5.22 R 6,873 mil Federal National Mortgage Associat 5.07 R 4,285 mil Federal National Mortgage Associat 3.31 Y 451 mil Pimco Fds 3.29 R 19,019 FTSE Bursa Malaysia KLCI Future Ju 2.47 R 16,810 Fin Fut Us Ultra 30yr Cbt 06/21/21 -2.26 R 17,279 US Treasury Bond Future June 21 -1.98 Y 2,152 mil CSMC TRUST 3.30155%1.69 R 1,637 mil Durham Mortgages A PLC 0.84887%1.68 R 2,063 mil Federal National Mortgage Associat 1.57 R 1,929 mil Federal National Mortgage Associat -1.42 R 11 mil Secretaria Tesouro Nacional 0%1.38 T 1,611 mil United States Treasury Notes 0.25%1.31 R 1,723 mil Federal National Mortgage Associat 1.31 Sector Weightings Stocks %Rel Std Index h Cyclical 52.6 — r Basic Materials 8.2 — t Consumer Cyclical 4.3 — y Financial Services 32.4 — u Real Estate 7.7 — j Sensitive 24.1 — i Communication Services 18.4 — o Energy 3.2 — p Industrials 2.6 — a Technology 0.0 — k Defensive 23.3 — s Consumer Defensive 9.2 — d Healthcare 6.9 — f Utilities 7.3 — Operations Family:PIMCO Manager:Multiple Tenure:14.4 Years Objective:Multisector Bond Base Currency:USD Ticker:PIMIX ISIN:US72201F4900 Minimum Initial Purchase: $1 mil Purchase Constraints:A Incept:03-30-2007 Type:MF Total Assets:$141,617.58 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 3 of 16 21 PIMCO Preferred and Capital Secs Instl (USD) Morningstar Quantitative RatingTM ´Q 06-30-2021 Overall Morningstar RatingTM Standard Index Category Index Morningstar Cat QQQQQ BBgBarc US Agg Bond TR USD ICE BofA Fxd Rate Pref TR USD US Fund Preferred Stock57 US Fund Preferred Stock Performance 06-30-2021 Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total % 2019 6.77 4.55 3.60 4.12 20.42 2020 -13.71 10.74 4.63 6.77 6.75 2021 0.94 3.14 — — 4.10 Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly 16.29 9.24 9.35 —7.62 Std 06-30-2021 16.29 — 9.35 —7.62 Total Return 16.29 9.24 9.35 —7.62 +/- Std Index 16.63 3.90 6.32 —— +/- Cat Index 4.44 2.17 3.60 —— % Rank Cat 49 2 1 — No. in Cat 64 57 46 — Subsidized Unsubsidized 7-day Yield — — 30-day SEC Yield 06-30-21 2.43 1 2.32 1. Contractual waiver; Expires 07-31-2022 Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 888-877-4626 or visit www.pimco.com. Fees and Expenses Sales Charges Front-End Load %NA Deferred Load %NA Fund Expenses Management Fees %0.79 12b1 Expense %NA Gross Expense Ratio %0.91 Risk and Return Profile 3 Yr 5 Yr 10 Yr 57 funds 46 funds 25 funds Morningstar RatingTM 5Q 5Q — Morningstar Risk Avg Avg — Morningstar Return High High — 3 Yr 5 Yr 10 Yr Standard Deviation 10.38 8.42 — Mean 9.24 9.35 — Sharpe Ratio 0.79 0.97 — MPT Statistics Standard Index Best Fit Index Morningstar US HY Bd TR USD Alpha 5.22 1.55 Beta 0.74 1.04 R-Squared 5.83 90.19 12-Month Yield 3.78% Potential Cap Gains Exp 5.13% 0 0 0 0 0 0 0 0 0 0 0 0 — — — — — 65 56 36 41 35 33 48 4k 10k 20k 40k 60k 80k 100k Investment Style Fixed-Income Bond % Growth of $10,000 PIMCO Preferred and Capital Secs Instl 15,833 Category Average 14,202 Standard Index 12,141 _ _ _ _ _ _ & & & & * _Performance Quartile (within category) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 06-21 History — — — — —9.82 9.97 10.52 9.49 10.73 11.10 11.36 NAV/Price — — — — — —8.12 13.27 -4.17 20.42 6.75 4.10 Total Return % — — — — — —5.48 9.73 -4.18 11.70 -0.76 5.70 +/- Standard Index — — — — — —5.81 2.69 0.17 2.71 -0.20 2.11 +/- Category Index — — — — — —17 2 22 4 36 —% Rank Cat — — — — — — 56 55 59 66 63 64 No. of Funds in Cat Portfolio Analysis 03-31-2021 Asset Allocation %Net % Long % Short % Cash -3.28 24.27 27.55 US Stocks 2.02 2.02 0.00 Non-US Stocks 0.98 0.98 0.00 Bonds 53.79 67.99 14.20 Other/Not Clsfd 46.49 46.49 0.00 Total 100.00 141.75 41.75 Equity Style Value Blend Growth LargeMidSmallPortfolio Statistics Port Avg Rel Index Rel Cat P/E Ratio TTM 9.1 — — P/C Ratio TTM — — — P/B Ratio TTM 0.3 — — Geo Avg Mkt Cap $mil 46814 — — Fixed-Income Style Ltd Mod Ext HighMedLowAvg Eff Maturity 4.15 Avg Eff Duration 3.80 Avg Wtd Coupon 5.63 Avg Wtd Price 108.56 Credit Quality Breakdown —Bond % AAA — AA — A — BBB — BB — B — Below B — NR — Regional Exposure Stocks % Rel Std Index Americas 67.3 — Greater Europe 32.7 — Greater Asia 0.0 — Share Chg since 12-2020 Share Amount Holdings : 4 Total Stocks , 112 Total Fixed-Income, 59% Turnover Ratio Net Assets % R 18 mil Pimco Capital Securities Fd (Cayma 16.70 R 1,009 10 Year Treasury Note Future June -6.95 R 841 5 Year Treasury Note Future June 21 5.46 Y 8 mil Pimco Fds 4.12 R 294 2 Year Treasury Note Future June 21 3.42 32 mil Stichting AK Rabobank Certificaten 2.54 R 238 Euro Bund Future June 21 -2.52 41 mil Barclays PLC 6.125%2.35 41 mil Bank of America Corporation 5.875%2.33 38 mil Wells Fargo & Company 5.9%2.13 R 40 mil Wells Fargo & Company 3.9%2.13 37 mil JPMorgan Chase & Co. 4.6%1.97 R 194 Fin Fut Us Ultra 30yr Cbt 06/21/21 1.85 32 mil Goldman Sachs Group, Inc. 5%1.67 24 mil ABN AMRO Bank N.V. 4.75%1.60 Sector Weightings Stocks %Rel Std Index h Cyclical 100.0 — r Basic Materials 0.0 — t Consumer Cyclical 0.0 — y Financial Services 100.0 — u Real Estate 0.0 — j Sensitive 0.0 — i Communication Services 0.0 — o Energy 0.0 — p Industrials 0.0 — a Technology 0.0 — k Defensive 0.0 — s Consumer Defensive 0.0 — d Healthcare 0.0 — f Utilities 0.0 — Operations Family:PIMCO Manager:Philippe Bodereau Tenure:6.3 Years Objective:Growth and Income Base Currency:USD Ticker:PFINX ISIN:US72202E6822 Minimum Initial Purchase: $1 mil Purchase Constraints:A Incept:04-13-2015 Type:MF Total Assets:$2,224.93 mil Release date 06-30-2021 ©2021 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial professional which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 4 of 16 22 23 X. P OLICY COMPLIANCE - For Discussion Only A. Investment Guidelines: Total Fund Goal 1 Year 3 Years 5 Years Exceed Target Index Rank Above 50th Percentile in Public Fund Universe Exceed 6.9% Absolute Return Target Standard Deviation Relative to Target Index N/A > > Guideline Total Fund Equity securities limited to less than 75% of Total Fund @ market 65.8% Investment in foreign company stock limited to 25% of cost value of Total Fund 11.7% Equity securities with Market Cap < $3 billion limited to 20% of market value of Total Fund Fixed Income portfolio average credit quality of “A” or better Fixed Income portfolio duration should be less than 135% of the market index duration < 2.5% of fixed income portfolio (at market) shall be invested in single corporate issuer 24 B. Fund Performance Objective Manager Exceed Benchmark 3-Year Exceed Benchmark 4-Year Exceed Benchmark 5-Year Risk vs. Benchmark 5-Year Clearbridge < Schwab Total Stock Market Index n/a n/a n/a n/a Atlanta Capital < Vanguard 500 n/a n/a n/a n/a Vanguard Dividend Growth Fund n/a n/a n/a n/a Mutual of America S&P 400 = EuroPacific Growth > Harding Loevner Intl Equity > Alliance Bernstein Fixed < Garcia Hamilton Fixed = < PIMCO Capital Sec & Fin Ins n/a n/a n/a n/a PIMCO Income n/a n/a n/a n/a JPM Strategic Property Fund > JPM Special Situation Fund > Manager Rank Above 50th Percentile 3-Year Rank Above 50th Percentile 4-Year Rank Above 50th Percentile 5-Year Clearbridge 80th 72nd 70th Schwan Total Stock Market Index n/a n/a n/a Atlanta Capital Vanguard 500 n/a n/a n/a Vanguard Dividend Growth Fund n/a n/a n/a Mutual of America S&P 400 58th 62nd 58th EuroPacific Growth Harding Loevner Intl Equity Alliance Bernstein Fixed 62nd 67th 72nd Garcia Hamilton Fixed 82nd 64th 61st PIMCO Capital Sec & Fin Ins n/a n/a n/a PIMCO Income n/a n/a n/a JPM Strategic Property Fund 72nd 72nd 69th JPM Special Situation Fund 25 HISTORICAL EARNINGS ANALYSIS (Net of Fees) Fiscal Year Fiscal Year Earnings FY Return (NET) 1992 $2,635,666 12.4% 1993 $3,062,820 11.9% 1994 ($567,443) 0 -1.9% 1995 $5,316,432 17.6% 1996 $4,320,516 12.0% 1997 $9,819,224 24.3% 1998 $4,239,413 8.4% 1999 $6,296,353 11.4% 2000 $5,844,369 9.8% 2001 ($6,123,671) -9.4% 2002 ($3,744,638) -6.4% 2003 $7,923,854 14.4% 2004 $4,620,118 7.3% 2005 $7,301,581 10.9% 2006 $5,446,508 7.4% 2007 $11,645,687 14.9% 2008 ($13,013,710) -15.0% 2009 $379,643 0.6% 2010 $7,172,900 9.2% 2011 ($44,118) -0.2% 2012 $16,184,331 17.9% 2013 $14,621,956 13.6% 2014 $12,382,268 10.0% 2015 $2,057,231 0.8% 2016 $16,874,891 12.5% 2017 $18,483,354 12.3% 2018 $16,067,810 9.5% 2019 $6,911,976 3.8% 2020 $13,646,724 7.2% 2021 $37,356,262 19.1% FY 1992-2021 $217,954,819 8.0%* *Annualized, net of fees. All performance and gain/loss data prior to 1Q2008 was provided by the previous consultant, Merrill Lynch Consulting. 26 C. Manager Status Manager MS Rating Status Effective Date Clearbridge N/A Good Standing Schwab Total Stock Market Index Gold Good Standing Vanguard 500 Gold Good Standing Vanguard Dividend Growth Fund Gold Good Standing Atlanta Capital N/A Good Standing Mutual of America N/A Good Standing EuroPacific Growth R6 Silver Good Standing Harding Loevner International Equity Silver Good Standing Alliance Bernstein Fixed Income N/A Good Standing Garcia Hamilton Fixed Income N/A Good Standing PIMCO Capital Sec & Fin Ins Bronze Good Standing PIMCO Income Gold Good Standing JPM Real Estate Strategic Properties N/A Good Standing JPM Real Estate Special Situations N/A Good Standing XI. NOTES 1) The prior investment consultant, Merrill Lynch Consulting Services, provided all performance and market value data for periods prior to April 1, 2008. 2) Investment Manger fees are not paid directly out of the Alliance Bernstein, Garcia Hamilton, DRZ, Mutual of America, and Atlanta Capital accounts, therefore those management fees are not included in the Net of Fee performance on page 6.. 3) Funds were transferred to Atlanta Capital and MOA S&P 400 on June 28, 2012. 4) Initial investment in the Atlanta Capital commingled account is January 3, 2011. 5) The inception date of Harding Loevner International Equity and Oppenheimer International Growth was March 21, 2013. 6) Assets were transferred from Alliance Bernstein Equity to DePrince Race Zollo on March 18, 2013. 7) The inception date of Baron Real Estate Fund was March 21, 2014. 8) The inception of JPM Real Estate Special Situations was April 2, 2014. 9) The inception of Clearbridge was February 4, 2015. 10) The inception of PIMCO Income Fund was December 5, 2017. 11) The inception of Schwab Total Stock Market Index was August 31, 2018. 12) The inception of Vanguard 500 was May 27, 2020 13) The inception of PIMCO Capital Sec & Fin Ins was September 3, 2020 14) The inception of Vanguard Dividend Growth Fund was September 22, 2020