On the agenda: Berkley Public Safety Pension Board Meeting — Hyperscale (Jan 26)

City of Berkley Public Safety Pension Board
January 26, 2026 - 4:00 PM
Berkley Public Safety Meeting Room - 2nd Floor
2395 Twelve Mile Road
Berkley, MI 48072
1.

Call to Order

2. Approval of the Agenda
3. Approval of Meeting Minutes – October 20, 2025
4. Visitor Recognition and Comments
5. Old Business
6. New Business
a. Approval of invoices
1. GRS – Inv# 496934 - $2,349.00
 Pension Benefit Statements
2. GRS – Inv# 496935 - $1,300.00
 Summary Annual Report
3. Boston Partners – Inv# 20250930-364-A - $2,193.77
 Investment Services – 7/1-9/30/25
4. Boston Partners – Inv# 20250930-595-A - $3,473.14
 Investment Services – 7/1-9/30/25
5. Asher Kelly – Inv# 10180 - $774.00
 Professional Services – 8/1-8/31/2025
6. Asher Kelly – INV# 10764 – $216.00
 Professional Services – 11/1-11/30/2025
7. CAPTRUST – INV# LT141885 - $10,588.04
 Advisory Fees – 7/1-9/30/25
8. CAPTRUST – INV# LT143711 – $9,088.04


Advisory Fees - 10/1 – 12/31/25

Page | 1

b. Approval of 2026 Pension Board Meetings Schedule
c. PSO Lt. Hadfield Approval of AFC (Provided to board separately)
d. CAPTRUST Quarterly Review
7. Next Board Meeting Date - Monday, February 23, 2026, at 4:00 PM
8. Adjournment

Page | 2

Gabriel, Roeder, Smith & Company
One Towne Square
Suite 800

Invoice

Southfield, Michigan 48076-3723
(248) 799-9000
Date

Invoice

10/28/2025

496934

Bill To:

Please Remit To:

City of Berkley Public Safety Retirement System

Dept. # 78009
Gabriel, Roeder, Smith & Company

Attention: Ms. Amy Zurawski, Deputy Finance Director
3338 Coolidge
Berkley, Michigan 48072

PO Box 78000
Detroit, Michigan 48278-0009
Federal Tax ID

38-1691268
Client 480, Benefit Statements 2025-0630, Project 480-091

Amount

Preparation of the Pension Benefit Statements as of June 30, 2025:

Base fee per group (based on benefit structure, not employment division):

2,254.00

$1,127 x 2 Benefit Strucutures

Per statement charges:

95.00

$3.80 x 25 Prepared Statements

$2,349

Amount Due:

PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU.
Page 1 of 1

Gabriel, Roeder, Smith & Company
One Towne Square
Suite 800

Invoice

Southfield, Michigan 48076-3723
(248) 799-9000
Date

Invoice

10/28/2025

496935

Bill To:

Please Remit To:

City of Berkley Public Safety Retirement System

Dept. # 78009
Gabriel, Roeder, Smith & Company

Attention: Ms. Amy Zurawski, Deputy Finance Director
3338 Coolidge
Berkley, Michigan 48072

PO Box 78000
Detroit, Michigan 48278-0009
Federal Tax ID

38-1691268
Client 480, Pen Val 2025-0630, Project 480-088

Amount

The preparation of the June 30, 2025 Summary Annual Report sent October 17,
2025

1,300.00

$1,300

Amount Due

PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU.
Page 1 of 1

Finance Department
City of Berkley
3338 Coolidge Highway
Berkley, MI 48072

COPY INVOICE - DO NOT REMIT
Invoice Date:

09/30/2025

Invoice Number:

20250930-364-A

Billing Portfolio(s): 00518 - City of Berkley Public Safety Retirement System
BPSMID
Billing Period:

07/01/2025 to 09/30/2025

SUMMARY FOR INVESTMENT SERVICES
Current Period Amount Due:

QUARTEREND Fee

Invoice

City of Berkley Public Safety Retirement
System BPSMID

20250331-364-A

City of Berkley Public Safety Retirement
System BPSMID

20250930-364-A

Total Amount Due

Current
Period Due

30-60 Days

$ 2,193.77

60-90 Days

Over 90 Days

Total

1,952.11

1,952.11

2,193.77
2,193.77

2,193.77
1,952.11

4,145.88

Please contact Ali Ayub directly at 617-832-8441 with any billing inquiries. As always, you may also direct
any questions to your Relationship Manager.

For Informational Purposes Only - Do Not Pay

Period Market Values (USD)
09/30/2025
CITY OF BERKLEY PUBLIC SAFETY RETIREMENT
SYSTEM - 00518
Market Value

975,009.45

Total Adjusted Market Value

$ 975,009.45

Annual Fee Schedule (IMFEE - USD)
0.00 and above

90.00 BPS

Quarterly Fee Calculation (IMFEE - USD)
975,009.45

*

90.00 BPS

*

90

/

360

Schedule Total:

=

2,193.77

$ 2,193.77

Fee Details:
Total IMFEE (00518)

2,193.77

Fee Total:

$ 2,193.77

Invoice Summary Fee Totals:
Fee Total For IMFEE:

2,193.77

Total Amount Due:

$ 2,193.77

Amy Zurawski, Deputy Finance Director
City of Berkley
3338 Coolidge Highway
Berkley, MI 48072

Invoice Date:

09/30/2025

Invoice Number:

20250930-595-A

Billing Portfolio(s): 00769 - City of Berkley Public Safety Pension System BPLCV
Billing Period:

07/01/2025 to 09/30/2025

SUMMARY FOR INVESTMENT SERVICES
Current Period Amount Due:

QUARTEREND Fee

Invoice

Current
Period Due

30-60 Days

$ 3,473.14

60-90 Days

Over 90 Days

Total

City of Berkley Public Safety Pension System 20250930-595-A
BPLCV

3,473.14

3,473.14

Total Amount Due

3,473.14

3,473.14

Please contact Ali Ayub directly at 617-832-8441 with any billing inquiries. As always, you may also direct
any questions to your Relationship Manager.

We would appreciate receiving your payment along with the remittance slip within 30 days of receipt of this invoice.
WIRE / TRANSFER FUNDS TO:
JP Morgan Chase; ABA #021000021; ACCT #066-654610
REFERENCE: Boston Partners
Ref Acct #: 00769
MAIL REMITTANCES TO:
Accounts Receivable
Boston Partners
One Grand Central Place, 60 East 42nd Street, Suite 1550
New York, NY 10165
Email [email protected] Thank You

Period Market Values (USD)
09/30/2025
City of Berkley Public Safety Pension System BPLCV 00769
Market Value

2,315,426.08

Total Adjusted Market Value

$ 2,315,426.08

Annual Fee Schedule (IMFEE - USD)
0.00 to

10,000,000.00

60.00 BPS

10,000,000.01 to

50,000,000.00

50.00 BPS

50,000,000.01 and above

0.00 BPS

Quarterly Fee Calculation (IMFEE - USD)
2,315,426.08

*

60.00 BPS

*

90

/

360

Schedule Total:

=

3,473.14

$ 3,473.14

Fee Details:
Total IMFEE (00769)

3,473.14

Fee Total:

$ 3,473.14

Invoice Summary Fee Totals:
Fee Total For IMFEE:

3,473.14

Total Amount Due:

$ 3,473.14

25800 Northwestern Highway
Suite 1100
Southfield, MI 48075
Telephone: (248) 746-2710

FEDERAL TAX I.D. No.:84-3379113

FAX:

(248) 746-2738

www.asherkellylaw.com

Attn: AMY ZURAWSKI
CITY OF BERKLEY PUBLIC SAFETY RETIREMENT SYSTEM
3338 COLLIDGE HWY
BERKLEY, MI 48072

September 15, 2025
Client Matter ID:
Invoice #:
Billing Atty:

BPS.115993
10180
CBD
Page:

1

RE: GENERAL MATTERS

FOR PROFESSIONAL SERVICES RENDERED THROUGH 08/01/2025 AND
08/31/2025

Fees

INVESTIGATE STATUS OF ARC AND CALCULATION OF INTEREST OWED
DRAFT EMAIL REGARDING CONTRIBUTION ISSUE AND RESEARCH
REGARDING SAME

Hours
0.60
1.30

REVIEW EMAILS FROM CHAIRMAN AND DRAFT RESPONSE TO SAME

0.60

PREPARATION FOR, ATTENDANCE AT, AND FOLLOW UP OF MEETINGS

2.20

REVIEW OF MINUTES, AGENDAS, ATTACHMENTS AND REPORTS

0.50

DRAFT EMAIL REGARDING FINANCE DIRECTOR POSITION ON BOARD

0.40

Total For Current Fees Rendered

5.60

1,008.00

Fee Recap
Timekeeper
Matt I. Henzi
Cynthia Billings-Dunn

Hours
0.60
5.00

Rate
$180.00
180.00

Total
$108.00
900.00

Total Current Work

1,008.00

Previous Balance

$1,854.00
Payments

08/25/2025
09/15/2025

PAYMENT BERKLEY MI PENSION PNC - PNC
PAYMENT

-1,854.00
-234.00

Total Payments

-2,088.00

Balance Due

$774.00

Payment Due Upon Receipt. Please include the invoice number on all remittance. Make checks payable to Asher Kelly.

AsherKelly
BERKLEY PUBLIC SAF
RE: GENERAL MATTERS
I.D. BPS-115993

Invoice
- CBD

09/15/2025
10180
Page:
2

Client Retainer Funds
08/25/2025

09/15/2025

DUPLICATE PAYMENT OF INVOICE NO. 9883 RECEIVED FROM CITY OF BERKLEY
RETIREMENT SYSTEM - PNC INSTITUTIONAL ASSET MANAGEMENT CK NO.
294375
PAYMENT
Ending Retainer Balance

234.00
-234.00
$0.00

Please Remit

$774.00

We are now accepting electronic and credit card payments.
All credit card payments are charged a 2.95% processing fee.
There is no charge for eChecks.

25800 Northwestern Highway
Suite 1100
Southfield, MI 48075
Telephone: (248) 746-2710

FEDERAL TAX I.D. No.:84-3379113

FAX:

(248) 746-2738

www.asherkellylaw.com

Attn: AMY ZURAWSKI
CITY OF BERKLEY PUBLIC SAFETY RETIREMENT SYSTEM
3338 COLLIDGE HWY
BERKLEY, MI 48072

December 2, 2025
Client Matter ID:
Invoice #:
Billing Atty:

BPS.115993
10764
CBD
Page:

1

RE: GENERAL MATTERS

FOR PROFESSIONAL SERVICES RENDERED THROUGH 11/01/2025 AND
11/30/2025

Fees
Hours
RESEARCH RE: PURCHASE OF MILITARY SERVICE AND DRAFT EMAIL RE:
SAME

1.20

Total For Current Fees Rendered

1.20

216.00

Fee Recap
Timekeeper
Cynthia Billings-Dunn

Hours
1.20

Rate
$180.00

Total
$216.00

Total Current Work

216.00

Previous Balance

$774.00

Balance Due

$990.00
Aged Due Amounts

Stmt Date
09/15/2025

Stmt #
10180

Billed
1,008.00

Due
774.00
774.00

Please Remit

$990.00

We are now accepting electronic and credit card payments.
All credit card payments are charged a 2.95% processing fee.
There is no charge for eChecks.
Payment Due Upon Receipt. Please include the invoice number on all remittance. Make checks payable to Asher Kelly.

4208 Six Forks Road Suite 1700
Raleigh, NC 27609
ph fax 919.870.8891
toll free 800.216.0645
Invoice:
Date:
Statement Period:
Customer No:
PO Number:
Amount Due upon
Receipt:

LT141885
12/01/2025
07/01/2025 - 09/30/2025
2J-CITYBP
$10,588.04

Please remit payment to:

Amy Zurawski
City of Berkley Public Safety Retirement System
3338 Coolidge
Berkley, MI 48072

CAPFinancial Partners, LLC.
P.O. Box 896952
Charlotte, NC, 28289-6952

Summary of Assets
Assets

Billable Assets

City of Berkley Public Safety Retirement System
T Rowe Price Mid-Cap Growth I

$2,308,137.15

$2,308,137.15

Vanguard Total Intl Stock Index Admiral

$4,966,543.57

$4,966,543.57

Boston Partners Large Cap Value SMA

$2,315,500.58

$2,315,500.58

Boston Partners Small/Mid Cap Value

$975,078.34

$975,078.34

Harding Loevner: International Equity

$7,997.26

$7,997.26

$2,534,130.13

$2,534,130.13

Loomis Sayles Large Cap Growth
Federated Hermes Govt Obl Premier

$491,606.95

$491,606.95

PIMCO Income Instl

$517,963.31

$517,963.31

Vanguard Inflation-Protected Secs Adm

$973,270.00

$973,270.00

$2,357,648.38

$2,357,648.38

Fidelity 500 Index
JPMorgan Core Bond R6

$7,340,936.73

$7,340,936.73

Portfolio Value as of 9/30/2025

$24,788,812.40

$24,788,812.40

Assets subject to advisory fees

$24,788,812.40

Advisory Fees
$0

- $2,000,000

2,000,000.00

% Of
Assets
100.0

2,000,000.00

Annual
Rate (%)
0.500

0.25

$2,500.00

$2,000,000

- $5,000,000

3,000,000.00

100.0

3,000,000.00

0.300

0.25

$2,250.00

$5,000,000

- $10,000,000

5,000,000.00

100.0

5,000,000.00

0.200

0.25

$2,500.00

$10,000,000

- $20,000,000

10,000,000.00

100.0

10,000,000.00

0.100

0.25

$2,500.00

$20,000,000

- $50,000,000

4,788,812.40

100.0

4,788,812.40

0.0700

0.25

$838.04

$50,000,000

- $100,000,000

0.00

100.0

0.00

0.0500

0.25

$0.00

$100,000,000

- and above

0.00

100.0

0.00

0.0300

0.25

Fee Brackets

Total Assets

Billable Assets

Freq

Advisory Fee

24,788,812.40

Total Net Fees Due & Payable

$0.00
$10,588.04

$10,588.04

In the event any payments have been received, they have been credited above. For a calculation explanation, please call our
Accounts Receivable department at 1-800-216-0645. If you have already mailed your payment, please disregard this notice and
accept our thanks.

TIN: 26-0058143
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City of Berkley

Public Safety Retirement Pension Board of Directors
Proposed Meeting Dates for 2026
Meeting Time: 4 P.M.
Berkley Public Safety Meeting Room – 2nd Floor
2395 Twelve Mile Road
Berkley, Michigan, 48072

January 26th, 2026
February 23rd, 2026
March 16th, 2026
April 20th, 2026
May 18th, 2026
June 15th, 2026
July 20th, 2026
August 17th, 2026
September 21st, 2026
October 19th, 2026
November 16th, 2026
No December Meeting

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety
Retirement System
4th Quarter, 2025

QUARTERLY REVIEW

CAPTRUST
3000 Town Center Boulevard, Suite 2650, Southfield, MI, 48075
99 Monroe Avenue, N.W., Suite 901, Grand Rapids, MI 49503

Our mission is to enrich the lives of our clients, colleagues and communities through sound
financial advice, integrity, and a commitment to service beyond expectation.

in this review

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Section 1

INDUSTRY UPDATES
City of Berkley Public Safety Retirement System
4th Quarter, 2025 Quarterly Review

Section 2

MARKET COMMENTARY AND REVIEW
Section 3

prepared by:

EXECUTIVE SUMMARY

Brett Reardon, CIMA®, CPFA
Senior Financial Advisor | Relationship Manager
Appendix
Tyler Sites, CPFA
Financial Advisor | Relationship Manager

section 1 : industry updates
City of Berkley Public Safety Retirement System

Period Ending 12.31.25 | Q4 25

defined benefit marketplace — topical spotlight

Period Ending 12.31.25 | Q4 25

HIGHLIGHTS FROM OUR LATEST CAPITAL MARKET ASSUMPTIONS
CAPTRUST periodically updates its capital market assumptions (CMAs) to align with the evolving investment landscape. This involves a mix of
quantitative and qualitative analyses of economic conditions, policies, and more. CMAs are not intended to represent exact market predictions.
Instead, they are best estimates for potential annualized growth over a seven- to 10-year period, likely covering a full market cycle.
Economy
Inflation remains steady. Policy shifts should ease as
technology-driven disinflation takes hold. Growth also
remains unchanged, supported in the near term by
stimulus and in the long term by productivity gains.
Equity
U.S. large-cap return expectations rose due to solid
fundamentals and strong AI-driven productivity
potential. International return expectations also
increased as pro-growth policies are likely to help
unlock significant valuation gaps.
Fixed Income
While lower interest rates may temporarily boost
prices, we expect the yield curve to continue
steepening. This suggests short-term rates will
continue to fall while longer-term rates remain the
same or rise slightly.
Alternatives
Alternatives assumptions have largely remained stable,
apart from notable increases in direct private equity
and core private credit returns, as well as a decrease in
core private real-asset risk expectations.

Your CAPTRUST advisor can help craft a suitable
investment plan, taking into account other factors
and your organization’s needs.

U.S. Economy
Economic Growth (Real GDP)
Inflation (CPI)
Equity Markets
Large-Cap Equity
Mid-Cap Equity
Small-Cap Equity
Developed International Stocks
Emerging International Stocks
Fixed Income
Cash
Core Fixed Income
Long-Term Treasury Bonds
Invest. Grade Corporate Bonds
Long-Term Corporate Bonds
High-Yield Corporate Bonds
Alternative Investments
Public Real Estate (R/E)
Private R/E: Opportunistic
Commodities
Core Private Real Assets
Private Equity: Direct
Low Volatility Alternatives
Hedged Equity
Core Private Credit

2024

Return
2025 Change

2024

Risk
2025

Change

2.00%
2.30%

2.00%
2.30%

-

2.60%
1.00%

2.70%
1.00%

0.10%
-

7.25%
7.50%
7.00%
6.25%
6.75%

7.75%
7.50%
7.00%
7.25%
7.00%

0.50%
1.00%
0.25%

15.20%
17.00%
19.90%
16.20%
21.80%

16.80% 1.60%
17.20% 0.20%
20.20% 0.30%
16.20%
21.50% -0.30%

3.20%
4.20%
4.40%
4.50%
4.80%
5.70%

3.10%
4.40%
4.90%
4.60%
5.00%
5.90%

-0.10%
0.20%
0.50%
0.10%
0.20%
0.20%

0.60% 0.60%
4.10%
4.10%
13.90% 13.80%
5.90% 5.80%
9.90% 9.90%
8.50% 8.50%

7.00%
9.00%
2.60%
6.50%
10.25%
4.70%
5.90%
7.50%

7.00%
9.00%
2.60%
6.50%
10.75%
4.70%
6.10%
7.90%

20.20% 20.20%
24.20% 24.20%
15.20% 15.30% 0.10%
11.70% 7.90% -3.80%
0.50% 18.20% 18.30% 0.10%
5.10%
5.10%
0.20% 11.40% 11.50% 0.10%
0.40% 10.00% 9.40% -0.60%

-0.10%
-0.10%
-

Increases in return expectations are marked in green, with decreases marked in red.
Risks are color-coded conversely, with green indicating a decrease in risk and red
indicating an increase.

defined benefit marketplace — topical spotlight

Period Ending 12.31.25 | Q4 25

CAPITAL MARKET ASSUMPTIONS: CHANGE IMPLICATIONS
Capital market assumption (CMA) changes tend to be incremental. Institutional investors benefit from a long-term perspective. In 2025, a slight
increase in fixed income and some global equity return expectations has led to an increase in expected returns for most traditional portfolios.
However, investors should consider the many roles that bonds play in their portfolio beyond their contribution to total return.

ADDITIONAL ROLES

Portfolio A Portfolio B Portfolio C

RETURN
FORECAST

ALLOCATION
WEIGHTINGS

Liability Hedging

LDI Fixed Income

70.00%

50.00%

30.00%

Global Equities

20.00%

40.00%

60.00%

Strategic
Opportunities

10.00%

10.00%

10.00%

2024

5.41%

5.92%

6.34%

•

LDI strategies hedge
funded status volatility
created by interest rate
movement.

•

Historically, fixed income
returns demonstrate a low
correlation to equity
returns.

•

When interest rates fall,
bonds appreciate as
liabilities increase, helping
preserve funding status.

•

Both our previous and
new CMAs expect this low
correlation to persist.

•

Bonds tend to exhibit a
lower standard deviation
(a measure of risk) than
equities.

•

2025

5.68%

6.28%

6.78%

Change

+0.27%

+0.36%

+0.44%

Diversification

When rates rise, funding
generally improves; most
plans’ assets maintain less
interest rate exposure than
their liabilities.

Plan sponsors should consider whether these updates suggest reevaluating the expected return on assets used for accounting and actuarial purposes.
CMAs provide an input for strategic asset allocation decisions, but modest annual changes should not upend long-term investment policies.
Investors should balance slightly higher expected fixed income returns against the roles this asset class can serve in a portfolio. Returns are
hypothetical and based on CAPTRUST created CMAs which reflect macro-level expectations for the risk and return of asset classes across full
market cycles, incorporating factors including current and future interest rates, potential earnings growth, and valuations. Your CAPTRUST
financial advisor can help you contextualize your investment strategy, goals, and objectives within the current market outlook. No
representation is being made that any performance will or is likely to achieve the returns shown. There are frequently sharp differences between
hypothetical performance results and the actual results achieved by any particular investment strategy.

section 2 : market commentary and review
City of Berkley Public Safety Retirement System

Period Ending 12.31.25 | Q4 25

market commentary

Period Ending 12.31.25 | Q4 25

A STRONG FINISH SETS THE STAGE
Global markets ended 2025 on a strong note, buoyed
by AI infrastructure spending and continued economic
resilience. U.S. equity leadership began to diversify,
expanding beyond the tech concentration that
dominated most of the year. International stocks were
the standout performers, aided by a weaker dollar,
strong earnings, and pro-growth structural reforms.
•

U.S. stocks rose modestly as investors rotated out
of the crowded technology trade to a broader
range of cyclical and defensive sectors.

•

International equities meaningfully outpaced U.S.
stocks, driven by multiple expansion, currency
effects, and fiscal support.

•

Short-term bond yields moved lower in tandem
with a third Federal Reserve rate cut. Returns
were muted as investors contemplated the
forward path of monetary policy.

•

Commodities added to year-to-date gains as
precious metals, a safe-haven asset class, climbed.

•

Real estate moved lower despite falling interest
rates, pressured by uncertainty over future
economic conditions.

Real
Estate

U.S. Bonds

U.S. SmallCap Stocks

Commodities

U.S. LargeCap Stocks

Developed
International
Stocks

Emerging
International
Stocks

34.4%
31.9%

17.9%
15.8%
12.8%
7.3%
3.8%
1.1%

5.8%
2.2%

4.9%
2.7%

4.8%

-2.3%

Q4 2025

2025

Asset class returns are represented by the following indexes: Bloomberg U.S. Aggregate Bond Index (U.S. bonds), S&P 500 Index (U.S. large-cap stocks),
Russell 2000® (U.S. small-cap stocks), MSCI EAFE Index (international developed market stocks), MSCI Emerging Market Index (emerging market stocks), Dow
Jones U.S. Real Estate Index (real estate), and Bloomberg Commodity Index (commodities). Past performance is no guarantee of future results. Indexes are
unmanaged; do not incur management fees, costs, and expenses; and cannot be invested in directly. Please refer to the index definitions and other important
disclosures provided at the end of this presentation.

market commentary

Period Ending 12.31.25 | Q4 25

DIGGING DEEPER: STOCKS AND BONDS
Equities

Fixed Income
Q4
2025

2025

Last 24
Months*

U.S. Stocks

2.7%

17.9%

47.4%

• Q4 Best Sector: Health Care

11.7%

14.6%

17.6%

• Q4 Worst Sector: Real Estate

-2.9%

3.2%

8.6%

Developed International Stocks

4.9%

31.9%

37.6%

Emerging International Stocks

4.8%

34.4%

45.2%

12.31.25

9.30.25

12.31.24

1-Year U.S. Treasury Yield

3.48%

3.68%

4.16%

10-Year U.S. Treasury Yield

4.18%

4.16%

4.58%

Q4 2025*

2025

Last 24
Months*

1.10%

8.19%

6.32%

10-Year U.S. Treasury
Total Return

*Q4: 9.30.2025 through 12.31.2025. Last 24 months: 1.1.2024 through 12.31.2025

All information is point-in-time as of the last day of the month noted, except
total return, which is defined to the left.

Equities: Relative Performance by Market Capitalization and Style
Q4 2025

Last 24 Months*

2025

Value

Blend

Growth

Large

3.8%

2.7%

1.1%

Mid

1.4%

0.2%

Small

3.3%

2.2%

Value

Blend

Growth

Large

32.6%

47.4%

58.1%

8.7%

Mid

25.6%

27.6%

32.7%

13.0%

Small

21.7%

25.8%

30.1%

Value

Blend

Growth

Large

15.9%

17.9%

18.6%

-3.7%

Mid

11.0%

10.6%

1.2%

Small

12.6%

12.8%

Sources: Morningstar, U.S. Treasury. Asset class returns are represented by the following indexes: S&P 500 Index (U.S. stocks), MSCI EAFE Index (international
developed market stocks), and MSCI Emerging Markets Index (emerging market stocks). Relative performance by market capitalization and style is based on
the Russell US Style Indexes except for large-cap blend, which is based on the S&P 500 Index. Past performance is no guarantee of future results. Indexes are
unmanaged; do not incur management fees, costs, and expenses; and cannot be invested in directly. Please refer to the index definitions and other important
disclosures provided at the end of this presentation.

market commentary

Period Ending 12.31.25 | Q4 25

DIGGING DEEPER: U.S. EQUITY MARKETS
The S&P 500® Index is a market-capitalization-weighted index of U.S. large-cap stocks across a diverse set of industry sectors. The stocks
represented in these 11 sectors generated a range of returns for the last 12 months* and the most recent quarter.

Returns by S&P 500® Sector
S&P 500®
Index

Technology

Financials

Communication

Services

Consumer
Discretionary

Health Care

Industrials

Consumer
Staples

Energy

Utilities

Materials

Real Estate

33.6%

24.0%
19.4%

17.9%
15.0%
7.3%
2.7%

1.4%

16.0%

14.6%
11.7%

2.0%

6.0%
0.9%

0.7%

10.5%

8.7%
3.9%
0.0%

1.5%

1.1%
-1.4%

Sector
Weight

34.4%

13.4%

10.6%

10.4%

9.6%

8.2%

4.7%

2.8%

2.2%

3.2%

-2.9%

Last 12 Months

Q4 2025

1.8%

1.8%

Sources: Morningstar, S&P Global. All calculations are cumulative total return, not annualized, including dividends for the stated period. Past performance is no
guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance. Indexes cannot be invested in directly. This
material represents an assessment of the market environment at a specific time and is not intended to be a forecast or guarantee of future results.
Investing involves risk; principal loss is possible. *Last 12 months: 12.30.2024 through 12.31.2025.

market commentary

Period Ending 12.31.25 | Q4 25

DIGGING DEEPER: FIXED INCOME MARKET
Interest Rates

3 Months

2 Years

5 Years

10 Years

30 Years

Mortgage
Rate

September 2025

4.02%

3.60%

3.74%

4.16%

4.73%

6.30%

December 2025

3.67%

3.47%

3.73%

4.18%

4.84%

6.15%

Change

-0.35%

-0.13%

-0.01%

0.02%

0.11%

-0.15%

Short-term yields contracted in December as the Federal Reserve delivered a third rate cut. Mortgage rates fell in tandem.
Core Fixed Income

Yield to
Worst

Duration

September 2025

4.37%

5.88

December 2025

4.33%

5.86

Change

-0.04%

-0.02

Total Return
Q4 2025

1.10%

Spread

Treasury Rate

AA Spread

BBB Spread

0.28%

4.09%

0.29%

0.89%

0.27%

4.06%

0.33%

0.92%

-0.01%

-0.03%

0.04%

0.03%

Core bond performance was positive as the December rate cut influenced short-term yields. Index spread effects were mixed, with corporate
spreads widening while non-corporate sectors tightened.
Long Credit

Yield to
Worst

Duration

September 2025

5.55%

12.78

December 2025

5.64%

12.75

Change

0.09%

-0.03

Total Return
Q4 2025

0.00%

Spread

Treasury Rate

AA Spread

BBB Spread

0.96%

4.60%

0.59%

1.17%

1.01%

4.63%

0.65%

1.22%

0.05%

0.03%

0.06%

0.05%

Longer-maturity bond performance was muted amid concerns about rising fiscal debt and the forward path of monetary policy.
Sources: Morningstar, FactSet, U.S. Treasury, Federal Reserve Bank of St. Louis, CAPTRUST research. All information is point-in-time as of the last day of the
month noted, except total return, which was calculated from 09.30.2025 through 12.31.2025. Please refer to definitions and other important disclosures at the
end of this presentation.

market commentary

Period Ending 12.31.25 | Q4 25

ECONOMIC OUTLOOK
2025 defied expectations, as markets shrugged off tariff and inflation fears to deliver a third consecutive year of strong returns. Technology
stocks again propelled global markets amid unprecedented investment in AI infrastructure. Investors enter 2026 with high hopes for tax relief,
investment incentives, and lower interest rates. However, lingering unknowns about AI payoffs, energy and labor constraints, mounting federal
debt, and sticky inflation risk could rain on the parade.

HEADWINDS

TAILWINDS

Real-World Limits

A Global Investment Supercycle

•

•

Investors are anxious to see a return on
investment from trillions of dollars of AI
commitments, but aging power grids and long
lead times may limit deployment speed.

Policy Squeeze
•

Tighter immigration policy and higher input costs from tariffs
are colliding with a significant cash injection from tax reform.
The resulting pressure could complicate the Fed’s path to
lower interest rates and further escalate federal debt and
deficit concerns.

Tax provisions in the One Big Beautiful Bill
Act (OBBBA) could supercharge U.S. business investment.
Meanwhile, a synchronized global push to rebuild defense
capabilities, plus continued investment in power and
computing infrastructure may create a price floor for real
assets.

Tax Refund Windfalls
•

Under the OBBBA, tax refunds are poised to rise by 44% yearover-year. Sustained highs in stock and housing markets
continue to boost the high-end consumer.

Priced to Perfection

Broadening Base

•

•

Elevated valuations may limit further gains in investor
optimism. Historic levels of concentration in a small group of
technology stocks leave markets more susceptible to
pullbacks if AI investments disappoint.

Lower global interest rates offer support for smaller and more
cyclical companies, just as AI productivity projects may start to
pay off. This could deliver a long-awaited broadening of
corporate profits and power the next phase of global growth.

The economy is balanced between the optimism of AI promises and policy support and pessimism from supply and financial constraints.
Can AI-led productivity gains outpace the drag of sticky inflation?

market commentary

Period Ending 12.31.25 | Q4 25

THE GREAT RACE: PRODUCTIVITY VS. PRICES
The U.S. economy faces a unique tug-of-war. On one side, Fed rate cuts, pro-growth fiscal policies, ongoing trade friction, and immigration
controls risk overheating demand amid constrained supply. On the other side, the AI revolution promises disinflationary growth. Will AI-driven
efficiency win out over policy-fueled inflation?

Labor Productivity and Core Personal Consumption
Expenditure (PCE) Inflation
Year-over-Year Growth%, 8-quarter moving average

PRODUCTIVITY AS AN INFLATION CAP

8%
Shaded regions represent periods
when productivity growth
exceeded inflation.

•

Productivity gains can help limit inflation by
helping companies produce more with fewer
resources.

•

Over the past 65 years, we’ve seen several
periods when the rate of productivity growth
(blue) exceeded inflation (yellow).
o The 1960s and 1990s were periods of high
growth supported by tech innovation.

6%

o The others were periods of crisis recovery
and a shrinking labor force.

4%

•

AI-driven efficiencies could launch a new era
where productivity growth outpaces inflation.
While this may raise fears of job losses,
echoing concerns from the 1960s’ factory
automation wave and 1990s’ retail disruption,
history tells a different story.

•

Technology advances rarely trigger mass
unemployment. Instead, they reduce costs
and unlock new demand, supporting
disinflationary growth.

2%

0%
1961

1973

1985

Non-Farm Labor Productivity

1997

2009

Core PCE Inflation

2021

Sources: U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, CAPTRUST research. Please refer to definitions
and other important disclosures at the end of this presentation.

market commentary

Period Ending 12.31.25 | Q4 25

AI: MOVING FROM PROMISE TO PAYOFF
AI capital spending has been a major driver, fueling more than 50% of U.S. economic growth in 2025—a historic investment in an unproven
technology. In 2026, the focus pivots from promise to payoff. Whether the next phase represents a productivity supercycle or a supply glut
depends on the resolution of the biggest question facing investors today: Can AI deliver on its lofty promises?

Capital Spending Arms Race
Estimated Hyperscaler Spend (USD, Billions)

$700

80%

$600

70%

$500

60%

$400

50%

$300

40%

$200

30%

$100

20%

$0
2020

2021

2022

Google, Microsoft, Amazon, Meta

2023

2024 2025e 2026e

Other Cloud Companies

Year-over-Year Growth in Capital Spending %

BEAR CASE

AI demand is greater and
more diverse than
appreciated.

The laws of physics and
economics still apply.

•

The Magnificent 7 remain
historically profitable.

•

Significant productivity
gains lie ahead.

•

AI demand is still
exploding.

•

Datacenter assets have
long-lived benefits.

10%
2019

BULL CASE

•

AI will face real-world
capacity and energy
constraints.

•

Expensive hardware
becomes obsolete before
payoff.

•

Not all participants will be
winners.

•

Societal and ethical
questions remain.

•

If AI productivity promises are realized, the infrastructure spending cycle can continue, creating a significant economic tailwind. But if
pilot project returns underwhelm, investor appetite for more speculative investment may wane.

•

Mega-cap tech players are in a strong position to pivot if capacity demand slows. But private players such as OpenAI, Anthropic, and
other debt-funded tech companies face pressure to monetize more quickly. The speed and scale at which these investments pay off will
determine the winners and losers.

Sources: JPMorgan, FactSet, CAPTRUST research. Other cloud companies include Apple, CoreWeave, and Oracle. Data as of 12.31.25. In the right-hand columns
of the chart, 2025e and 2026e refer to capital-spending estimates (e), as compiled by JPMorgan.

market commentary

Period Ending 12.31.25 | Q4 25

PRICES BACKED BY PROFITS
In 2025, investors took note when the Buffett Indicator (the ratio of S&P 500 market capitalization to U.S. GDP) surpassed levels that were last
seen in the dot-com bubble. However, stock prices are just one part of the story. Underneath the market’s relentless rise is a profitability engine
that has seen corporate margins double over the past 25 years. The question for anxious investors is whether the conditions that propelled
margins higher can persist in a more capital-intensive AI future.

S&P 500 Market Capitalization and Corporate
Profitability as a % of U.S. GDP
Prices supported
by earnings

140%

80%

Speculative
price bubble

8%
6%

50%
20%

1988

12%
10%

110%

1992

1996 2000 2004 2008 2012

Stock Prices (Market Cap/GDP)

2016 2020 2024

What Changed?

Future Risk Factors

Profitability

The shift from
lower-margin
industries to highmargin technology
and services

Are profit margins
sustainable as labor,
production input and
depreciation costs
mount?

Capital
Intensity

Capital-light
business models
allowed revenues
to scale with less
capital investment

The AI buildout
represents an
unprecedented
capex cycle with
rapid obsolescence

Policy
Support

Decades of falling
interest and tax
rates

Fiscal deficits and
sticky inflation may
raise the cost of
capital and
compress valuations

14%

4%

Profitability (Corp Profits/GDP)

Corporate Profits

S&P 500 Market Cap

170%

Driver

PRICES FOLLOW PROFITS
History shows a strong relationship between the path of profits and prices. Even though traditional valuation signals are flashing red,
today’s high prices are underpinned by record profitability, not simply “hope.” However, today’s high valuations do suggest more fragility,
with a thinner margin of safety. If huge capital investments fail to deliver returns, prices could follow profits on a downward trajectory.
Sources: S&P Dow Jones Indices, U.S. Bureau of Economic Analysis, Federal Reserve Bank of St. Louis, CAPTRUST Research. Corporate profit series shown is
corporate profits after-tax (without inventory valuation and capital consumption adjustments).

market commentary

Period Ending 12.31.25 | Q4 25

THE GREAT ROTATION: BROADENING EARNINGS LEADERSHIP
For the past few years, investors have anticipated broader market leadership that never arrived. S&P 500 Index earnings growth was dominated
by mega-cap technology stocks, which almost-single-handedly powered the index through the 2023 earnings recession and subsequent
recovery. 2026 may mark a turning point as growth catalysts favor the remaining 493 companies. Late 2025 market reactions suggest the
rotation may be underway.

Market Cap Change in S&P Sectors since Oct. 2025 Tech Peak

Magnificent 7 vs. Remaining 493
Contribution to S&P 500 Earnings Growth

10.29.2025 to 12.31.2025, USD$ Billions

$0

16%

-$200

12%

-$1,000

4%

$151

-$1,200

0%

-$1,400

$(68)

$2

$14

$15

$17

$18

+$369

-$800

-$1,326
-$1326

-$600

8%

+$382

-$400

$92

-$1,600

-4%
2023

2024

2025e

Mag 7 Earnings Contribution (%)

2026e

2027e

Remaining 493 (%)

•

Consensus estimates project that S&P 500 earnings growth will accelerate through 2027, albeit with a decisive change in leadership.

•

As Magnificent 7 growth normalizes, the remaining 493 companies are expected to pick up the growth baton, aided by interest-rate relief,
OBBBA tax incentives, and early payoffs from AI productivity investments.

•

This rotation is no longer theoretical. Late 2025 market movements show a reallocation of capital from the crowded technology sector to a
broader range of cyclical and defensive sectors, with lower valuations. Investors are already positioning for a more diversified expansion.

Sources: FactSet, CAPTRUST research. Market capitalization change may differ from index returns due to index reconstitution or other shifts. In the right-hand
columns of the chart, 2025e, 2026e, 2027e refer to capital-spending estimates (e), as compiled by CAPTRUST.

market commentary

Period Ending 12.31.25 | Q4 25

PENALIZED FOR PRUDENCE
Markets posted impressive gains in 2025, but the mechanics of the rally created unique challenges for diversified investors. Time-tested risk
management practices, including asset class diversification, an emphasis on quality and fundamentals, and valuation discipline, held back
performance in a market driven by historic levels of concentration and a speculative surge in lower-quality stocks.

2025 Return Divergence
(01.01.2025-12.17.2025)
15%

THE DIVERSIFICATION PENALTY
•

2025’s S&P 500 returns were driven by the
Magnificent 7, which grew earnings twice as fast as
the average company.

•

This created a challenging backdrop for active stock
selection, with the median diversified fund manager
trailing the benchmark by historic margins.

•

In some cases, standard risk controls, such as portfolio
concentration limits, made keeping up nearly
impossible.

Liberation
Day

5%
Earnings-driven
Divergence

-5%

S&P 500
S&P 500 (Market-cap weighted)
Average S&P 500 stock

-15%
Jan

Apr

Jun

Sep
THE QUALITY PENALTY
•

In the small-cap universe, the market rewarded more
speculative, unprofitable companies.

•

Of Russell 2000 Index constituents, 41% are
unprofitable, yet elevated investor risk appetites
propelled it well above the S&P 600 Index, which
requires profitability for inclusion.

15%
5%
-5%

Low-quality Rally

-15%

Small Cap Stocks
Russell 2000
S&P 600 (profitable companies)

-25%
Jan

Apr

Jun

Sep

Sources: Morningstar, FactSet, CAPTRUST research. Data as of 12.17.2025.

While disciplined investors may have trailed the indexes in
2025, absolute returns were strong. Risk management
seeks to dampen risk over full market cycles, even if it may
limit returns during more speculative periods.

market commentary

Period Ending 12.31.25 | Q4 25

S&P 500® Index: Forward P/E Ratio
25

Current: 22.1x

20

+1 Std Dev: 19.8x
25-Year Average: 16.6x
15

-1 Std Dev: 13.5x
10

5

0
2001

2003

2005

2007

2009

Valuation
Measure

Description

Latest

Long-Term
Average

Standard Deviation
(Std Dev)
Over/ Undervalued

Inception
Year

P/E

Forward P/E

22.1x

16.6x

1.8

2000

Div. Yield

Dividend Yield

1.1%

1.8%

1.8

2000

P/B

Price to Book

5.4x

3.2x

2.4

2000

P/CF

Price to Cash Flow

18.7x

11.4x

2.4

2000

2011

2013

2015

2017

2019

2021

2023

2025

Sources: FactSet, NASDAQ, CAPTRUST research. Price-to-earnings (P/E) ratio is price divided by consensus analyst estimates of earnings per share for the
next 12 months, provided by Bloomberg. Average P/E and standard deviations are calculated using 25 years of history. Dividend yield is calculated as the
current year's consensus dividend divided by the most recent price. Price-to-book (P/B) ratio is the price divided by book value per share. Price-to-cashflow (P/CF) ratio is the price divided by cash flow for the next 12 months. Standard deviation over/undervalued is calculated using the average and standard
deviation for each measure. Past performance is no guarantee of future results. Indexes are unmanaged; do not incur management fees, costs, and expenses;
and cannot be invested in directly. Please refer to the index definitions and other important disclosures provided at the end of this presentation.

special topics

ACTIVE MANAGEMENT LAGS AMID MARKET EXTREMES
The global equity market has been a complex landscape over the past two years. While headline indexes delivered exceptionally
active managers struggled to beat their benchmarks. This was especially true in the third quarter, when the majority of activ
and developed international managers underperformed. Although active manager performance is best evaluated over a full market
combination of extreme market conditions has contributed to significant recent underperformance.

ACTIVE MANAGER QUARTERLY EXCESS RETURNS

MOST CHALLENGING QUARTER IN
DECADES

(5th - 95th percentile over past 20 years vs. 3Q 2025)
5th

Percentile

3rd Quarter 2025 Median

4%

•

25th
Median
75th

Excess Performance vs. Benchmark

95th

Over the past 20 years, the quarterly
return of the median manager within the
U.S. small - cap, U.S. large - cap, and
developed international categories has
delivered near - benchmark returns. Top
performers have exceeded index returns,
while bottom quartile managers have
trailed.

•

Q3 2025 was a significant departure from
this pattern. As shown to the left, Q3
median active manager performance fell
well below the 95th percentile of
historical results in several categories.

•

Only one category shown, U.S. large
value, delivered median manager results
in excess of the benchmark.

0.05%

0%

-2%
- 1.92%
- 3.18%
- 3.86%
- 4.42%
- 5.13%

-6%
Large Value

Large
Growth

Small Value

Sources: Morningstar, CAPTRUST research. Data as of 09.30.2025

Small Growth

Foreign
Large Value

Foreign
Large
Growth

The magnitude of underperformance in
Q3 has led to an outsized impact on
trailing three - and five - year benchmark
relative returns.

•

2%

-4%

st rong returns,
ely - managed U.S.
cy cle, a

-

- cap

special topics

DRIVERS OF BENCHMARK

- RELATIVE PERFORMANCE

U.S. LARGE CAP

U.S. SMALL CAP

Year - to - Date S&P 500 Returns by Sector

Rolling Six

AI - Related Sectors

7%

24.5%

- month Relative Returns: Russell 2000 vs.
S&P 600 Indexes

S&P 600 Outperforms

22.3%

20 - year Average: +0.4%
18.4%

17.7%

2%

S&P 500 Returns: 14.8%
12.8%
9.3%
7.0%

6.2%

-3%
5.3%

3.9%

Russell 2000 Outperforms
2.6%

- 7.5%
Comm
Services

Industrials
Tech

Financials
Utilities

Energy
Materials

Real
Estate

Cons.
Discr .

•

A small cohort of dominant tech companies and other
beneficiaries of the AI buildout have driven market returns,
causing indexes to become increasingly concentrated.

•

This poses challenges for active managers whose mandate calls
for diversified portfolios. Narrow market breadth reduces the
benefits of skillful security selection.

•

•

Cons.
Staples

Most active managers are constrained by diversification rules that
impose caps of 5% by issuer, and 25% by industry. Vanguard
disclosed last year that its S&P 500 index funds may not meet
these conditions, exposing investors to “non
-diversification risk.”
Macro positioning misfires have also detracted, as managers
shifted portfolios for tariffs, inflation, and policy moves.

Sources: FactSet, Morningstar, CAPTRUST research. Data as of 09.30.2025.

Health
Care

-8%
Sep-05

Sep-09

Sep-13

Sep-17

Sep-21

Sep-25

•

Active small -cap managers tend to prefer higher
-quality, more
profitable companies —a profile that has delivered solid returns
with lower volatility over longer time horizons. However, recent
outperformance by less profitable stocks has erased years of
active manager outperformance.

•

As of Q1 2025, the median small
-cap -blend manager showed
annualized three -year excess return of 1.1%. By Q3, this fell to an
-0.9%.

•

The outperformance of unprofitable companies has reached a 20
year peak. The chart above compares two small
-cap indexes: the
broad -based Russell 2000, and the more selective S&P 600, which
screens out unprofitable firms. Over the past six months, the
Russell 2000 has outperformed by 7.5%.

-

special topics

DRIVERS OF BENCHMARK

- RELATIVE PERFORMANCE
KEY TAKEAWAYS

DEVELOPED INTERNATIONAL
International Equities

– Style Returns

•

The past three years have provided a good environment for
investors to make money but a challenging landscape for active
manager outperformance.

•

Given the unique and extreme market conditions, active
manager results shouldn’t be viewed merely as a reflection of
skill but, to some extent, as a predictable outcome. The key is
how active managers react to changing conditions.

•

Poor relative performance, alongside the simplicity and low
cost of passive investing, creates natural questions about the
role of active management within portfolios.

•

It is important to consider that factors contributing to recent
active manager underperformance could also elevate risks for
passive - only investors:

32.8%
19.8%

25.7%
18.9%18.0%

18.9%
6.4%

4.4% 2.4%

- 4.9%
- 14.0%
- 22.7%

2022
MSCI EAFE Value

•

•
•

2023

2024
MSCI EAFE

2025 (9/30)
MSCI EAFE Growth

Persistent outperformance by value
-oriented sectors has been a
significant headwind for active international equity managers.
International indexes tend to be naturally value
-tilted, and many
active managers compensate with a growth bias.
As shown above, 2025 marks the fourth consecutive year of
underperformance for MSCI EAFE growth relative to value.
Other challenges for active international managers include:
• The government -stimulus -driven resurgence of Chinese
equities after years of underperformance;
• A reversal of decades of underperformance in Japan;
• The return differential between low
- and high -quality stocks
has reached quarter -century highs (as in the U.S.)

Sources: FactSet, Bloomberg, CAPTRUST research. Data as of 09.30.2025.

•

•

Index concentration could magnify the impact of
drawdowns, particularly if the AI theme is pressured.

•

The recent low - quality rally reflects a degree of valuation
indifference that could reverse.

•

Index strategies provide little flexibility. By nature, passive
strategies provide near
- 100% exposure to market upside and
downside.

The use of passive strategies requires active decisions.
Investors should consider the characteristics of each asset
class, risk and return objectives, expenses, diversification, and
other factors to build portfolios that can perform across a
range of market conditions.

asset class returns
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Real
Estate
17.77%

Small-Cap
Stocks
38.82%

Real
Estate
30.38%

Strategic
Opportunities
2.86%

Small-Cap
Stocks
21.31%

International
Equities
27.19%

Cash
1.87%

Large-Cap
Stocks
31.43%

Large-Cap
Stocks
20.96%

Real
Estate
38.99%

Cash
1.46%

Large-Cap
Stocks
26.53%

Large-Cap
Stocks
24.51%

International
Equities
32.39%

Mid-Cap
Stocks
17.28%

Mid-Cap
Stocks
34.76%

Large-Cap
Stocks
13.24%

Real
Estate
2.14%

Mid-Cap
Stocks
13.80%

Large-Cap
Stocks
21.69%

Fixed
Income
0.01%

Mid-Cap
Stocks
30.54%

Small-Cap
Stocks
19.96%

Large-Cap
Stocks
26.45%

Strategic
Opportunities
0.85%

Mid-Cap
Stocks
17.23%

Mid-Cap
Stocks
15.34%

Large-Cap
Stocks
17.37%

International
Equities
16.83%

Large-Cap
Stocks
33.11%

Mid-Cap
Stocks
13.22%

Large-Cap
Stocks
0.92%

Large-Cap
Stocks
12.05%

Mid-Cap
Stocks
18.52%

Strategic
Opportunities
-0.49%

Real
Estate
28.92%

Mid-Cap
Stocks
17.10%

Mid-Cap
Stocks
22.58%

Fixed
Income
-13.01%

Small-Cap
Stocks
16.93%

Small-Cap
Stocks
11.54%

Small-Cap
Stocks
12.81%

Large-Cap
Stocks
16.42%

International
Equities
15.29%

Fixed
Income
5.97%

Fixed
Income
0.55%

Real
Estate
7.56%

Small-Cap
Stocks
14.65%

Real
Estate
-4.03%

Small-Cap
Stocks
25.52%

International
Equities
10.65%

Small-Cap
Stocks
14.82%

International International International
Equities
Equities
Equities
5.53%
-16.00%
15.62%

Mid-Cap
Stocks
10.60%

Small-Cap
Stocks
16.35%

Strategic
Opportunities
3.58%

Small-Cap
Stocks
4.89%

Cash
0.05%

International
Equities
4.50%

Real
Estate
9.84%

Large-Cap
Stocks
-4.78%

International
Equities
21.51%

Fixed
Income
7.51%

International
Equities
7.82%

Mid-Cap
Stocks
-17.32%

Real
Estate
12.25%

Cash
5.25%

Fixed
Income
7.30%

Fixed
Income
4.22%

Real
Estate
2.47%

Strategic
Opportunities
0.79%

Mid-Cap
Stocks
-2.44%

Fixed
Income
2.65%

Fixed
Income
3.54%

Mid-Cap
Stocks
-9.06%

Fixed
Income
8.72%

Strategic
Strategic
Opportunities Opportunities
2.72%
2.10%

Large-Cap
Stocks
-19.13%

Fixed
Income
5.53%

Real
Estate
4.92%

Strategic
Opportunities
5.57%

Strategic
Opportunities
0.88%

Cash
0.07%

Cash
0.03%

Small-Cap
Stocks
-4.41%

Cash
0.33%

Strategic
Opportunities
3.40%

Small-Cap
Stocks
-11.01%

Strategic
Opportunities
4.37%

Cash
0.67%

Cash
0.05%

Small-Cap
Stocks
-20.44%

Cash
5.01%

Strategic
Opportunities
4.86%

Cash
4.18%

Cash
0.11%

Fixed
Income
-2.02%

Cash
0.86%

International
Equities
-14.20%

Cash
2.28%

Real
Estate
-5.29%

Fixed
Income
-1.54%

Real
Estate
-25.17%

Strategic
Opportunities
2.95%

Fixed
Income
1.25%

Real
Estate
2.27%

International International
Strategic
Equities
Equities
Opportunities
-3.87%
-5.66%
0.31%

Small-Cap Stocks (Russell 2000 Index)

Real Estate (Dow Jones U.S. Real Estate Index)

International Equities (ACWI Ex-U.S. Index)

Mid-Cap Stocks (Russell Mid-Cap Index)

Strategic Opportunities (HFRX Absolute Return Index)

Fixed Income (Bloomberg U.S. Aggregate Bond Index)

Large-Cap Stocks (Russell 1000 Index)

Cash (Merrill Lynch 3-Month Treasury Bill)

Sources: Morningstar, S&P Global. All calculations are cumulative total return, not annualized, including dividends for the stated period. Past performance is no
guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance. Indexes cannot be invested in directly. This
material represents an assessment of the market environment at a specific time and is not intended to be a forecast or guarantee of future results.
Investing involves risk; principal loss is possible. *Last 12 months: 12.30.2024 through 12.31.2025.

Source: Markov Processes, Inc., Bloomberg, Mobius

Period Ending 12.31.25 | Q4 25

definitions
ACWI Ex-U.S. Index: Measures the performance of the large- and
mid-cap segments of the particular regions, excluding U.S. equity
securities, including developed and emerging market. Index is freefloat-adjusted market-capitalization-weighted.
Bloomberg U.S. Aggregate Index: Measures the investment-grade,
U.S. dollar-denominated, fixed-rate taxable bond market. The index
includes Treasurys, government-related and corporate securities,
mortgage passthrough securities, commercial mortgage-backed
securities and asset-backed securities that are publicly for sale in
the U.S.
Dow Jones U.S. Real Estate Index: Tracks the performance of real
estate investment trusts (REITS) and other companies that invest
directly or indirectly in real estate through development,
management, or ownership, including property agencies.
Duration: Is a measure of interest rate risk or the price sensitivity of a
bond to interest rate changes.
FTSE NAREIT All Equity REITs TR USD Index: Measures the
performance of all tax-qualified REITs with more than 50 percent of
total assets in qualifying real estate assets other than mortgages
secured by real property that also meet minimum size and liquidity
criteria. A REIT is a company that owns, and in most cases, operates
income-producing real estate.
HFRX Absolute Return Index: Measures the performance of a
diversified portfolio of hedge funds that aim to achieve consistent,
positive returns with low volatility and minimal correlation to
traditional markets. Index is asset weighted.
Merrill Lynch 3-Month Treasury Bill: Measures the performance of a
single issue of outstanding treasury bill that matures closest to, but
not beyond, three months from the rebalancing date. The issue is

Period Ending 12.31.25 | Q4 25

purchased at the beginning of the month and held for a full month; at
the end of the month that issue is sold and rolled into a newly
selected issue.
MSCI EAFE Index: Measures the performance of the large- and midcap equity market across 21 developed markets around the world,
excluding the U.S. and Canada. It is a free-float-adjusted marketcapitalization-weighted index and includes the reinvestment of
dividends into the index.
PCE Inflation: Refers to the Personal Consumption Expenditures
index which tracks the changes in prices of goods and services
consumed by households on a year-over-year basis.
Russell 1000® Index: Measures the performance of the large-cap
segment of the U.S. equity universe. The Russell 1000® Index is a
subset of the Russell 3000® Index, which is designed to represent
approximately 98% of the investable U.S. equity market. It includes
approximately 1,000 of the largest securities based on a combination
of their market cap and current index membership.
Russell 1000® Value Index: Measures the performance of the largecap value segment of the U.S. equity universe. It includes the Russell
1000 companies with relatively lower price-to-book ratios, lower
forecast medium-term (2 years) growth, and lower sales-per-share
historical growth (5 years).
Russell 1000® Growth Index: Measures the performance of the largecap growth segment of U.S. equities. It includes the Russell 1000
companies with relatively higher price-to-book ratios, higher forecast
medium-term (2 years) growth, and higher sales-per-share historical
growth (5 years).

definitions (continued)
Russell Mid-Cap® Index: Measures the performance of the mid-cap
segment of U.S. equities. It is a subset the Russell 1000® Index. It is a
market-capitalization weighted index and includes approximately
800 of the smallest securities based on a combination of their market
cap and current index membership. The index represents
approximately 31% of the total market capitalization of the Russell
1000® companies.
Russell 2000® Index: Measures the performance of the 2,000
smallest companies in the Russell 3000® Index. It is a marketcapitalization-weighted index.
Russell 2000® Value Index: Measures the performance of the smallcap value segment of U.S. equities. It includes the Russell 2000
companies with relatively lower price-to-book ratios, lower forecast
medium-term (2 years) growth, and lower sales-per-share historical
growth (5 years).
Russell 2000® Growth Index: Measures the performance of the smallcap growth segment of U.S. equities. It includes those Russell 2000
companies with relatively higher price-to-book ratios, higher forecast
medium-term (2 years) growth, and higher sales-per-share historical
growth (5 years).
Russell 3000® Index: Measures the performance of the largest 3,000
U.S. companies designed to represent approximately 98% of the
investable U.S. equity market.
S&P 500® Index: Measures the performance of 500 leading publicly
traded U.S. companies from a broad range of industries. It is a floatadjusted market-capitalization-weighted index.
Yield to Worst indicates the lowest potential return an investor can
achieve on a bond, assuming the issuer does not default, and
accounting for any prepayment or call provisions.

Period Ending 12.31.25 | Q4 25

definitions and important disclosures
MSCI EAFE Index
: Measures the performance of the large
- and mid cap equity market across 21 developed markets around the world,
excluding the U.S. and Canada. It is a free
- float - adjusted market capitalization - weighted index and includes the reinvestment of
dividends into the index.

Russell 2000® Index
: Measures the performance of the small
- cap
segment of U.S. equities. It is a subset of the Russell 3000 companies
and is constructed to provide an unbiased small
- cap barometer,
reconstituted annually to ensure larger stocks do not distort the
performance and characteristics of the small
- cap opportunity set.

MSCI EAFE Growth Index
: Measures the performance of large
- and
mid - cap securities exhibiting overall growth style characteristics
across 21 developed markets around the world, excluding the US and
Canada. The growth characteristics are defined using long
- term
forward EPS growth rate, short
- term forward EPS growth rate,
current internal growth rate and long
- term historical EPS growth
trend and long - term historical sales per share growth trend.

S&P 600 Index
: Measures the small
- cap segment of the U.S. equity
market. The index is designed to track companies that meet specific
inclusion criterion to ensure they are liquid and financially viable.

MSCI EAFE Value Index
: Measures the performance of large
mid - cap securities exhibiting overall value style characteristics across
21 developed markets around the world, excluding the US and
Canada. The value characteristics are defined using book value to
price, 12 - month forward earnings to price, and dividend yield.

- and

The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation,
to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein from third
obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
contained herein constitutes financial, legal, tax, or other advice. Consult your tax and legal professional for details on y

or recommendation
- pa rty providers is
No thing
our situation.

Past performance is no guarantee of future results. The opinions presented cannot be viewed as an indicator of future perform
material represents an assessment of the market environment at a specific time and is not intended to be a forecast or guaran
results.
Investing involves risk, including possible loss of principal.
Asset allocation and diversification do not ensure a profit or pr
Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly.
Investment advisory services offered by
CapFinancial
registered under The Investment Advisers Act of 1940.

Partners, LLC (CAPTRUST or CAPTRUST Financial Advisors), an investment advisor

anc e. This
tee of future

otect against loss.

important disclosures

Period Ending 12.31.25 | Q4 25

The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation, or
recommendation to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein
from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability
cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax, or other advice. Consult your tax and legal
professional for details on your situation.
Past performance is no guarantee of future results. The opinions presented cannot be viewed as an indicator of future performance.
This material represents an assessment of the market environment at a specific time and is not intended to be a forecast or
guarantee of future results.
Investing involves risk, including possible loss of principal. Asset allocation and diversification do not ensure a profit or protect
against loss.
Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually
fall, and vice versa. This effect is usually more pronounced for longer-term securities). Fixed income securities also carry inflation
risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities
involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Foreign investments
involve greater risks than U.S. investments, and can decline significantly in response to adverse issuer, political, regulatory, market,
and economic risks. Any fixed-income security sold or redeemed prior to maturity may be subject to loss.
Any reference to credit ratings refers to the highest rating given by one of the following national rating agencies: S&P, Moody’s, or
Fitch. Credit ratings are subject to change. AAA, AA, A, BBB (ratings scale used by S&P and Fitch), and Aaa, Aa, A, Baa (ratings
scale used by Moody's) are investment grade ratings. BB, B, CCC, CC, C, D (ratings scale used by S&P and Fitch), and Ba, B, Caa,
Ca, C (ratings scale used by Moody's) are below investment grade ratings.
Investment advisory services offered by CapFinancial Partners, LLC (CAPTRUST or CAPTRUST Financial Advisors), an investment
advisor registered with the SEC under The Investment Advisers Act of 1940.

section 3 : executive summary
City of Berkley Public Safety Retirement System

Period Ending 12.31.25 | Q4 25

MARKET VALUES & CASH FLOW SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

MARKET VALUES & CASH FLOW SUMMARY
$31,500,000

Market Value

$25,200,000

$18,900,000

$12,600,000

$6,300,000

$0
Jun-10

Jun-11

Jun-12

Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Total Portfolio

Last 3 Months

CYTD

2024

Jun-18

Jun-19

Jun-20

Jun-21

Jun-22

Jun-23

Dec-25

Net Cash Flow

2023

2022

Since Inception

Total Portfolio
Beginning Market Value

Jun-24

Inception
Date
07/01/2010

$24,788,812

$22,689,224

$21,095,960

$18,212,734

$23,489,154

$12,847,871

Net Contributions

-$31,384

-$467,573

-$544,416

-$58,833

-$1,553,790

-$11,596,281

Net Investment Return

$470,764

$3,006,542

$2,137,680

$2,942,058

-$3,722,630

$23,976,602

Ending Market Value

$25,228,192

$25,228,192

$22,689,224

$21,095,960

$18,212,734

$25,228,192

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. Please refer to the official custodial account
statement for verification. For Institutional Use Only.

ASSET ALLOCATION SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

ACTUAL ALLOCATION

HISTORIC ALLOCATION TREND
100

80

60

40

20

0

QUARTERLY HISTORIC ALLOCATION TREND
TARGET ALLOCATION
¢

03 23
(%)

06 23
(%)

09 23
(%)

12 23
(%)

03 24
(%)

06 24
(%)

09 24
(%)

12 24
(%)

03 25
(%)

06 25
(%)

09 25
(%)

12 25
(%)

1.21

2.29

0.73

0.50

4.41

6.05

2.85

2.10

1.98

2.62

1.02

1.08

¢

35.61

34.08

34.29

33.10

35.40

35.85

35.61

34.94

37.32

35.58

35.63

35.21

¢

42.71

44.35

44.76

44.89

44.07

43.86

40.36

40.97

40.26

42.07

42.32

41.56

¢

20.66

20.49

19.73

19.72

19.80

19.78

19.62

18.04

19.58

20.24

20.07

20.60

ASSET REBALANCING ANALYSIS
Asset Class

Asset Allocation (%) Target Allocation (%)

(+/-) Variance (%)

¢ Total Cash & Equivalents

2.62

4.40

-1.78

¢ Total Fixed Income

35.21

35.55

-0.34

¢ Total U.S. Equities

41.56

40.35

1.21

¢ Total International Equities

20.60

19.70

0.90

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. For Institutional Use Only.

ASSET ALLOCATION DETAIL

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

MANAGER NAME

CASH

INVESTED

Federated Hermes Govt Obl Premier

$661,063

-

100.00

$661,063

-

2.62

-

Total Cash & Equivalents

$661,063

-

100.00

$661,063

4.40

2.62

-1.78

JPMorgan Core Bond R6

-

$7,417,586

-

$7,417,586

-

29.40

-

PIMCO Income Instl

-

$523,174

-

$523,174

-

2.07

-

Vanguard Inflation-Protected Secs Adm

-

$942,321

-

$942,321

-

3.74

-

Total Fixed Income

-

$8,883,082

-

$8,883,082

35.55

35.21

-0.34

Fidelity 500 Index

-

$2,405,821

-

$2,405,821

-

9.54

-

Loomis Sayles Large Cap Growth

$24,889

$2,518,810

0.98

$2,543,699

-

10.08

-

Robeco Boston Partners Large Cap Value

$56,478

$2,319,974

2.38

$2,376,452

-

9.42

-

Robeco Boston Partners Sm/Mid Value

$26,705

$945,212

2.75

$971,917

-

3.85

-

-

$2,187,966

-

$2,187,966

-

8.67

-

$108,072

$10,377,784

1.03

$10,485,856

40.35

41.56

1.21

$6,314

$1,754

78.26

$8,067

-

0.03

-

-

$5,190,124

-

$5,190,124

-

20.57

-

$6,314

$5,191,878

0.12

$5,198,192

19.70

20.60

0.90

$775,449

$24,452,744

3.07

$25,228,192

100.00

100.00

0.00

T. Rowe Price Mid-Cap Growth I
Total U.S. Equities
Harding Loevner International ADR
Vanguard Total Intl Stock Index Admiral
Total International Equities
Total Portfolio

CASH (%)

TOTAL

TARGET (%)

ACTUAL (%)

VARIANCE (%)

Information and statistics have been provided by the custodian and are not guaranteed to be accurate or complete. This is not a substitute for the official custodial account
statement; please refer to the custodial statement for verification.

INVESTMENT RETURNS | TOTAL PORTFOLIO

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

TOTAL PORTFOLIO TRAILING PERFORMANCE

Total Portfolio
Total Portfolio Benchmark

Rates Of Return (%)

20

15

10

5

0

Last 3 Months

1 Year

3 Years

5 Years

7 Years

10 Years

Inception

Total Portfolio

1.90

13.58

13.30

6.43

8.89

7.70

7.86

Total Portfolio Benchmark

2.40

15.93

14.38

6.99

9.65

8.32

8.64

TOTAL PORTFOLIO CALENDAR PERFORMANCE

Total Portfolio
Total Portfolio Benchmark

Rates Of Return (%)

30

15

0

-15

-30

CYTD

2024

2023

2022

2021

2020

2019

Inception

Total Portfolio

13.58

10.23

16.18

-15.97

11.72

13.56

17.06

7.86

Total Portfolio Benchmark

15.93

11.29

15.99

-15.87

11.35

13.24

20.06

8.64

Performance returns over one-year are annualized. For important details regarding benchmarks, please refer the slides entitled "Benchmark Summary" in this presentation.

INVESTMENT RETURNS | MANAGER RESULTS

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Last
Quarter

2024

2023

2022

2021

1 Year

3 Years

5 Years

10 Years

Since
Inception

Inception
Date

Total Cash & Equivalents

0.97

5.38

5.04

2.07

0.03

4.24

4.89

3.33

2.17

1.40

07/01/2010

FTSE 3 Month T-Bill

1.02

5.45

5.26

1.50

0.05

4.40

5.03

3.31

2.23

1.45

Federated Hermes Govt Obl Premier

0.97

5.38

5.04

2.07

0.03

4.24

4.89

3.33

2.17

1.40

FTSE 3 Month T-Bill

1.02

5.45

5.26

1.50

0.05

4.40

5.03

3.31

2.23

1.45

Money Market-Taxable Median

0.94

5.00

4.83

1.36

0.01

4.04

4.62

3.01

1.90

1.22

Total Fixed Income

1.03

2.29

5.63

-12.33

-0.39

7.68

5.18

0.32

2.38

2.76

Blmbg. U.S. Aggregate Index

1.10

1.25

5.53

-13.01

-1.55

7.30

4.66

-0.36

2.01

2.42

JPMorgan Core Bond R6

1.04

2.31

5.85

-

-

7.54

5.21

-

-

5.21

Blmbg. U.S. Aggregate Index

1.10

1.25

5.53

-

-

7.30

4.66

-

-

4.66

Intermediate Core Bond Median

0.98

1.49

5.58

-

-

7.13

4.70

-

-

4.70

PIMCO Income Instl

2.53

5.41

9.31

-7.81

2.60

11.03

8.56

3.89

-

4.42

Blmbg. U.S. Aggregate Index

1.10

1.25

5.53

-13.01

-1.55

7.30

4.66

-0.36

-

1.99

Multisector Bond Median

1.28

5.98

8.69

-10.77

2.43

7.96

7.61

2.65

-

3.66

Vanguard Inflation-Protected Secs Adm

0.09

1.84

3.85

-11.89

5.68

6.86

4.16

1.03

2.95

2.87

Blmbg. U.S. TIPS Index

0.13

1.84

3.90

-11.85

5.96

7.01

4.23

1.12

3.09

2.93

Inflation-Protected Bond Median

0.00

1.86

3.46

-12.03

5.05

6.67

3.98

0.77

2.80

2.52

Total U.S. Equities

1.45

19.73

25.79

-17.20

23.41

12.99

19.39

11.70

13.29

15.78

Russell 3000 Index

2.40

23.81

25.96

-19.21

25.66

17.15

22.25

13.15

14.29

14.72

Fidelity 500 Index

2.65

24.99

26.28

-

-

17.82

22.98

-

-

14.05

S&P 500 Index

2.66

25.02

26.29

-

-

17.88

23.01

-

-

14.08

Large Blend Median

2.46

23.29

24.66

-

-

16.43

21.48

-

-

12.79

07/01/2010

07/01/2010

01/01/2023

04/01/2018

07/01/2010

07/01/2010

03/01/2022

Performance returns over one-year are annualized. Information and statistics have been provided by the custodian and are not guaranteed to be accurate or complete. This is not a
substitute for the official custodial account statement; please refer to the custodial statement for verification.

INVESTMENT RETURNS | MANAGER RESULTS

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Last
Quarter

2024

2023

2022

2021

1 Year

3 Years

5 Years

10 Years

Since
Inception

Inception
Date

Loomis Sayles Large Cap Growth

0.39

33.42

49.52

-27.52

19.00

15.50

32.08

14.73

17.13

17.82

10/01/2015

Russell 1000 Growth Index

1.12

33.36

42.68

-29.14

27.60

18.56

31.15

15.32

18.13

18.46

Large Growth Median

0.88

29.76

39.35

-31.16

21.96

15.61

28.24

11.48

15.41

15.81

Robeco Boston Partners Large Cap Value

2.65

14.86

14.07

-4.31

30.16

18.35

15.75

14.07

11.63

11.84

Russell 1000 Value Index

3.81

14.37

11.46

-7.54

25.16

15.91

13.90

11.33

10.53

10.85

Large Value Median

3.33

14.38

11.18

-5.62

26.04

15.40

13.57

11.64

10.61

10.89

Robeco Boston Partners Sm/Mid Value

-0.29

13.66

16.43

-10.03

26.67

5.83

11.88

9.80

9.74

11.06

Russell 2500 Value Index

3.15

10.98

15.98

-13.08

27.78

12.73

13.21

10.02

9.72

10.95

Small Value Median

1.84

9.30

15.34

-11.36

30.62

6.62

10.42

9.33

8.77

10.20

T. Rowe Price Mid-Cap Growth I

0.89

9.54

20.30

-

-

3.83

11.01

-

-

5.10

Russell Midcap Growth Index

-3.70

22.10

25.87

-

-

8.66

18.64

-

-

9.62

Mid-Cap Growth Median

-2.98

14.83

20.78

-

-

5.77

14.25

-

-

5.40

Total International Equities

4.50

4.17

16.06

-21.34

9.36

28.28

15.75

5.93

6.83

6.94

MSCI AC World ex USA (Net)

5.05

5.53

15.62

-16.00

7.82

32.39

17.33

7.91

8.41

7.24

Vanguard Total Intl Stock Index Admiral

4.50

-

-

-

-

-

-

-

-

8.30

MSCI AC World ex USA (Net)

5.05

-

-

-

-

-

-

-

-

8.84

Foreign Large Blend Median

4.36

-

-

-

-

-

-

-

-

7.41

Total Portfolio

1.90

10.23

16.18

-15.97

11.72

13.58

13.30

6.43

7.70

7.86

Total Portfolio Benchmark

2.40

11.29

15.99

-15.87

11.35

15.93

14.38

6.99

8.32

8.64

10/01/2015

09/01/2010

03/01/2022

07/01/2010

09/01/2025

07/01/2010

Performance returns over one-year are annualized. Information and statistics have been provided by the custodian and are not guaranteed to be accurate or complete. This is not a
substitute for the official custodial account statement; please refer to the custodial statement for verification.

MARKET VALUES & CASH FLOW SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Period Ending

Beginning Value

Net Flows

Investment Gain/Loss

Ending Value

Rate of Return

Sep-2010

$12,847,871

-$1,427,283

$2,320,240

$13,740,827

7.86

Dec-2010

$13,740,827

-$751,150

$805,396

$13,795,074

5.78

Mar-2011

$13,795,074

-$11,615

$531,688

$14,315,147

3.77

Jun-2011

$14,315,147

-$20,669

$152,996

$14,447,474

0.98

Sep-2011

$14,447,474

-$13,593

-$1,433,322

$13,000,558

-10.00

Dec-2011

$13,000,558

-$612,428

$684,185

$13,072,315

5.17

Mar-2012

$13,072,315

-$42,612

$1,008,712

$14,038,415

7.65

Jun-2012

$14,038,415

-$937

-$301,439

$13,736,039

-2.21

Sep-2012

$13,736,039

$2,497,129

$901,457

$17,134,626

5.43

Dec-2012

$17,134,626

-$63,547

$179,682

$17,250,760

1.01

Mar-2013

$17,250,760

-$678,239

$875,850

$17,448,371

5.08

Jun-2013

$17,448,371

-$18,013

$14,674

$17,445,032

0.01

Sep-2013

$17,445,032

-$9,910

$868,586

$18,303,709

4.93

Dec-2013

$18,303,709

-$16,037

$1,017,601

$19,305,272

5.47

Mar-2014

$19,305,272

-$843,978

$245,184

$18,706,478

1.38

Jun-2014

$18,706,478

-$22,571

$684,867

$19,368,774

3.60

Sep-2014

$19,368,774

-$90,951

-$285,067

$18,992,755

-1.59

Dec-2014

$18,992,755

-$4,282

$367,381

$19,355,854

1.94

Mar-2015

$19,355,854

-$938,794

$316,502

$18,733,562

1.71

Jun-2015

$18,733,562

-$25,520

$2,593

$18,710,635

-0.09

Sep-2015

$18,710,635

-$11,795

-$1,002,579

$17,696,260

-5.42

Dec-2015

$17,696,260

-$1,102,841

$537,989

$17,131,408

3.00

Mar-2016

$17,131,408

-$19,136

$102,942

$17,215,214

0.48

Jun-2016

$17,215,214

-$9,142

$325,320

$17,531,392

1.89

Sep-2016

$17,531,392

-$14,542

$635,773

$18,152,624

3.57

Dec-2016

$18,152,624

-$12,611

$43,770

$18,183,783

0.19

Mar-2017

$18,183,783

-$1,142,923

$736,978

$17,777,838

4.18

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. Please refer to the official custodial account
statement for verification. For Institutional Use Only. Inception Date is 07/01/2010.

MARKET VALUES & CASH FLOW SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Period Ending

Ending Value

Rate of Return

Jun-2017

Beginning Value
$17,777,838

Net Flows
-$20,312

Investment Gain/Loss
$639,256

$18,396,782

3.55

Sep-2017

$18,396,782

-$25,166

$656,931

$19,028,546

3.52

Dec-2017

$19,028,546

-$11,270

$664,161

$19,681,437

3.44

Mar-2018

$19,681,437

-$1,219,265

-$21,399

$18,440,773

-0.34

Jun-2018

$18,440,773

-$12,162

$81,880

$18,510,491

0.44

Sep-2018

$18,510,491

-$15,272

$546,433

$19,041,653

2.89

Dec-2018

$19,041,653

-$9,207

-$1,609,513

$17,422,933

-8.49

Mar-2019

$17,422,933

-$1,018,165

$1,448,028

$17,852,796

6.36

Jun-2019

$17,852,796

-$19,765

$654,954

$18,487,984

3.62

Sep-2019

$18,487,984

-$13,901

$107,955

$18,582,038

0.59

Dec-2019

$18,582,038

-$14,180

$1,041,190

$19,609,048

5.59

Mar-2020

$19,609,048

-$19,356

-$2,746,544

$16,843,147

-14.04

Jun-2020

$16,843,147

-$21,364

$2,416,377

$19,238,160

14.33

Sep-2020

$19,238,160

-$14,409

$1,012,805

$20,236,556

5.20

Dec-2020

$20,236,556

-$1,165,179

$1,921,802

$20,993,179

9.84

Mar-2021

$20,993,179

-$10,476

$613,484

$21,596,187

2.92

Jun-2021

$21,596,187

-$25,633

$1,176,962

$22,747,515

5.45

Sep-2021

$22,747,515

$95,556

-$182,952

$22,660,118

-0.80

Dec-2021

$22,660,118

-$24,150

$853,186

$23,489,154

3.77

Mar-2022

$23,489,154

-$13,758

-$1,452,012

$22,023,384

-6.18

Jun-2022

$22,023,384

-$1,516,569

-$2,512,223

$17,994,592

-11.61

Sep-2022

$17,994,592

-$11,010

-$985,083

$16,998,499

-5.48

Dec-2022

$16,998,499

-$12,453

$1,226,688

$18,212,734

7.22

Mar-2023

$18,212,734

-$17,059

$1,151,263

$19,346,938

6.32

Jun-2023

$19,346,938

-$14,323

$684,325

$20,016,941

3.54

Sep-2023

$20,016,941

-$14,169

-$734,588

$19,268,183

-3.67

Dec-2023

$19,268,183

-$13,282

$1,841,058

$21,095,960

9.56

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. Please refer to the official custodial account
statement for verification. For Institutional Use Only. Inception Date is 07/01/2010.

MARKET VALUES & CASH FLOW SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

Period Ending

Beginning Value

Net Flows

Investment Gain/Loss

Ending Value

Rate of Return

Mar-2024

$21,095,960

-$261,610

$1,183,007

$22,017,356

5.64

Jun-2024

$22,017,356

-$273,614

$52,775

$21,796,517

0.20

Sep-2024

$21,796,517

-$4,729

$1,222,325

$23,014,113

5.61

Dec-2024

$23,014,113

-$4,462

-$320,427

$22,689,224

-1.39

Mar-2025

$22,689,224

-$769,928

-$26,411

$21,892,885

-0.20

Jun-2025

$21,892,885

-$223,452

$1,546,687

$23,216,120

7.11

Sep-2025

$23,216,120

$557,191

$1,015,501

$24,788,812

4.27

Dec-2025

$24,788,812

-$31,384

$470,764

$25,228,192

1.90

$12,847,871

-$11,596,281

$23,976,602

$25,228,192

7.86

Total

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. Please refer to the official custodial account
statement for verification. For Institutional Use Only. Inception Date is 07/01/2010.

BENCHMARK SUMMARY

Period Ending 12.31.25 | Q4 25

City of Berkley Public Safety Retirement System

FROM DATE

TO DATE

BENCHMARK

Total Portfolio
08/01/2024

Present

40.35% Russell 3000 Index, 35.55% Blmbg. U.S. Aggregate Index, 19.70% MSCI AC World ex USA (Net), 4.40% FTSE 3 Month T-Bill

10/01/2020

07/31/2024

42.00% Russell 3000 Index, 37.00% Blmbg. U.S. Aggregate Index, 20.50% MSCI AC World ex USA (Net), 0.50% FTSE 3 Month T-Bill

07/01/2010

09/30/2020

100.00% Historical Portfolio Benchmark

The summary has been compiled using data from sources believed to be reliable but is not guaranteed to be accurate or complete. Please refer to the official custodial account
statement for verification. For Institutional Use Only.

appendix
City of Berkley Public Safety Retirement System

Period Ending 12.31.25 | Q4 25

glossary

Period Ending 12.31.25 | Q4 25

ALPHA

CAPTURE RATIO

PERCENTILE RANK

Alpha measures a manager’s rate of return in
excess of that which can be explained by its
systematic risk, or Beta. It is a result of
regressing a manager’s returns against those of a
benchmark index. A positive alpha implies that a
manager has added value relative to its
benchmark on a risk-adjusted basis.

Up Market Capture is the average return of a
manager relative to a benchmark index using only
periods where the benchmark return was positive.
Down Market Capture is the average return of a
manager relative to a benchmark index using only
periods where the benchmark return was negative.
An Up Market Capture of greater than 100% and a
Down Market Capture of less than 100% is
considered desirable.

Percentile Rankings are based on a manager’s
performance relative to all other available funds
in its universe. Percentiles range from 1, being the
best, to 100 being the worst. A ranking in the
50th percentile or above demonstrates that the
manager has performed better on a relative basis
than at least 50% of its peers.

BETA
Beta measures a manager’s sensitivity to
systematic, or market risk. Beta is a result of the
analysis regressing a manager’s returns against
those of a benchmark Index. A manager with a
Beta of 1 should move perfectly with a
benchmark. A Beta of less than 1 implies that a
manager’s returns are less volatile than the
market’s (i.e., selected benchmarks). A Beta of
greater than 1 implies that a manager exhibits
greater volatility than the market (i.e., selected
benchmark).

BEST (WORST) QUARTER
Best (Worst) Quarter is the best (worst) threemonth return in the measurement period. The
three-month period is not necessarily a calendar
quarter.

CONSISTENCY (BATTING AVERAGE)
Formerly known as Batting Average,
Consistency measures the percentage of time an
active manager outperforms the benchmark.

CONTINUED…

POSITIVE (NEGATIVE) MONTHS RATIO
INFORMATION RATIO
The Information Ratio measures a manager’s excess
return over the passive index divided by the
volatility of that excess return or Tracking Error. To
obtain a higher Information Ratio, which is
preferable, a manager must demonstrate the ability
to generate returns above its benchmark while
avoiding large performance swings relative to that
same benchmark.

Positive (Negative) Months Ratio is the ratio of
months in the measurement period where the
returns are positive (negative).

RISK-ADJUSTED PERFORMANCE
Risk-adjusted Performance, or RAP, measures the
level of return that an investment option would
generate given a level of risk equivalent to the
benchmark index.

MAXIMUM DRAWDOWN

R-SQUARED

The Maximum Drawdown measures the maximum
observed percentage loss from a peak to a trough
in the measurement period.

R-squared measures the portion of a manager’s
movements that are explained by movements in a
benchmark index. R-squared values range from 0
to 100. An R-squared of 100 means that all
movements of a manager are completely
explained by movements in the index. This
measurement is identified as the coefficient of
determination from a regression equation. A high
R-squared value supports the validity of the
Alpha and Beta measures, and it can be used as a
measure of style consistency.

MAX DRAWDOWN RECOVERY PERIOD
The Maximum Drawdown Recovery period counts
the number of months needed to meet or exceed
the prior peak starting from the beginning of the
Maximum Drawdown period. If the prior peak has
not been met or exceeded, this statistic will not
populate.

glossary
SHARPE RATIO
Sharpe ratio measures a manager’s return per
unit of risk, or standard deviation. It is the ratio
of a manager’s excess return above the risk-free
rate divided by a manager’s standard deviation.
A higher Sharpe ratio.
STANDARD DEVIATION
Standard Deviation is a measure of the extent to
which observations in a series vary from the
arithmetic mean of the series. This measure of
volatility or risk allows the estimation of a range
of values for a manager’s returns. The wider the
range, the more uncertainty, and, therefore, the
riskier a manager is assumed to be.
TRACKING ERROR
Tracking Error is the standard deviation of the
portfolio’s residual (i.e. excess) returns. The
lower the tracking error, the closer the portfolio
returns have been to its risk index. Aggressively
managed portfolios would be expected to have
higher tracking errors than portfolios with a
more conservative investment style..
TREYNOR RATIO
The Treynor Ratio is a measure of reward per
unit of risk. With Treynor, the numerator (i.e.
reward) is defined as the excess return of the
portfolio versus the risk-free rate. The
denominator (i.e. risk) is defined as the portfolio
beta. The result is a measure of excess return per
unit of portfolio systematic risk. As with Sharpe
and Sortino ratios, the Treynor Ratio only has
value when it is used as the basis of comparison
between portfolios. The higher the Treynor
Ratio, the better.

Period Ending 12.31.25 | Q4 25

index definitions
Bloomberg U.S. Aggregate Index: Measures the investment-grade,
U.S. dollar-denominated, fixed-rate taxable bond market. The index
includes Treasuries, government-related and corporate securities,
mortgage pass through securities, commercial mortgage backed
securities and asset backed securities that are publicly for sale in the
United States.
FTSE NAREIT All Equity REITs TR USD Index: Measures the
performance of all tax-qualified REITs with more than 50 percent of
total assets in qualifying real estate assets other than mortgages
secured by real property that also meet minimum size and liquidity
criteria. A REIT is a company that owns, and in most cases, operates
income-producing real estate.
MSCI EAFE Index: Measures the performance of the large- and midcap equity market across 21 developed markets around the world,
excluding the U.S. and Canada. It is a free float-adjusted marketcapitalization weighted index and includes the reinvestment of
dividends into the index.
Merrill Lynch 3-Month Treasury Bill: Measures the performance of a
single issue of outstanding treasury bill that matures closest to, but
not beyond, three months from the rebalancing date. The issue is
purchased at the beginning of the month and held for a full month; at
the end of the month that issue is sold and rolled into a newly
selected issue.
Russell 1000® Index: Measures the performance of the large-cap
segment of the U.S. equity universe. The Russell 1000® Index is a
subset of the Russell 3000® Index which is designed to represent
approximately 98% of the investable U.S. equity market. It includes
approximately 1,000 of the largest securities based on a combination
of their market cap and current index membership.

Period Ending 12.31.25 | Q4 25

Russell Mid-Cap® Growth Index: Measures the performance of the
mid-cap growth segment of the U.S. equity universe. It includes those
Russell Mid-cap Index companies with relatively higher price-to-book
ratios, higher I/B/E/S forecast medium term (2 year) growth and
higher sales per share historical growth (5 years).
Russell Mid-Cap® Value Index: Measures the performance of the midcap value segment of the U.S. equity universe. It includes those
Russell Mid-cap Index companies with relatively lower price-to-book
ratios, lower I/B/E/S forecast medium term (2 year) growth and
lower sales per share historical growth (5 years).
Russell 1000® Value Index: Measures the performance of the large
cap value segment of the U.S. equity universe. It includes the Russell
1000 companies with relatively lower price-to-book ratios, lower
forecast medium term (2 year) growth and lower sales per share
historical growth (5 years).
Russell 1000® Growth Index: Measures the performance of the large
cap growth segment of U.S. equities. It includes the Russell 1000
companies with relatively higher price-to-book ratios, higher forecast
medium term (2 year) growth and higher sales per share historical
growth (5 years).
Russell 2000® Index: Measures the performance of the 2,000
smallest companies in the Russell 3000® Index. It is a marketcapitalization weighted index.

index definitions (continued)
Russell 2000® Value Index: Measures the performance of the small
cap value segment of U.S. equities. It includes the Russell 2000
companies with relatively lower price-to-book ratios, lower forecast
medium term (2 year) growth and lower sales per share historical
growth (5 years).
Russell 2000® Growth Index: Measures the performance of the small
cap growth segment of U.S. equities. It includes those Russell 2000
companies with relatively higher price-to-book ratios, higher forecast
medium term (2 year) growth and higher sales per share historical
growth (5 years).
Russell 3000® Index: Measures the performance of the largest 3,000
U.S. companies designed to represent approximately 98% of the
investable U.S. equity market.
S&P 500® Index: Measures the performance of 500 leading publicly
traded U.S. companies from a broad range of industries. It is a floatadjusted market-capitalization weighted index.

Period Ending 12.31.25 | Q4 25

important disclosures

Period Ending 12.31.25 | Q4 25

General Disclosure
The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an
offer to buy securities, investment products, or investment advisory services. Data contained herein from third-party providers is obtained from what are
considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax,
or other advice. Consult your tax and legal professional for details on your situation.
Past performance is no guarantee of future results. The opinions presented cannot be viewed as an indicator of future performance. This material represents an
assessment of the market environment at a specific time and is not intended to be a forecast or guarantee of future results.
Investing involves risk, including possible loss of principal. Asset allocation and diversification do not ensure a profit or protect against loss.
Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This
effect is usually more pronounced for longer-term securities). Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks
for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit
quality of the issuer. Foreign investments involve greater risks than U.S. investments, and can decline significantly in response to adverse issuer, political,
regulatory, market, and economic risks. Any fixed-income security sold or redeemed prior to maturity may be subject to loss.
Any reference to credit ratings refers to the highest rating given by one of the following national rating agencies: S&P, Moody’s, or Fitch. Credit ratings are
subject to change. AAA, AA, A, BBB (ratings scale used by S&P and Fitch), and Aaa, Aa, A, Baa (ratings scale used by Moody's) are investment grade ratings.
BB, B, CCC, CC, C, D (ratings scale used by S&P and Fitch), and Ba, B, Caa, Ca, C (ratings scale used by Moody's) are below investment grade ratings.
Investment advisory services offered by CapFinancial Partners, LLC (“CAPTRUST” or "CAPTRUST Financial Advisors”), an investment advisor registered with
the SEC under The Investment Advisers Act of 1940.