On the agenda: Burlington Retirement Board Meeting — hyperscale (Oct 19)
Past ⚠ Agenda Watch Burlington, Vermont · Monday, October 19, 2026 — 1 week ago
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Retirement Board
Monday, October 19, 2026, 9:30 AM, Bushor Conference Room, 149 Church Street, 1st
Floor
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1. Agenda
Subject
1.1. Motion to adopt agenda
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
1. Agenda
Department
Retirement Administration
Type
Action
Procedural
Recommended Action
Motion to adopt agenda
2. Public Forum
3. September 28, 2026 Retirement Board Meeting Minutes
Subject
3.1. September 28, 2026 Retirement Board Meeting Minutes - C/T
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Page 1 of 113
Category
3. September 28, 2026 Retirement Board Meeting Minutes
Department
Department of Finance and Administration
Type
Action
Information
Minutes
Recommended Action
approve the minutes
4. Approve Return of Contributions
Subject
4.1. Kadeem R. Noel, Class B $4,158.38; Effective Date of Benefit: 09/01/26
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
4. Approve Return of Contributions
Department
Retirement Administration
Type
Action
Recommended Action
approve return of contribution for Kadeem R. Noel
Subject
4.2. Matthew P. Deforge, Class B $11,125.13; Effective Date of Benefit:
09/01/26
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
4. Approve Return of Contributions
Department
Retirement Administration
Type
Action
Recommended Action
approve return of contribution for Matthew P. Deforge
5. Approve Retirement Application
Subject
5.1. Jennifer Lynn Blow, Class B $3,060.38; Effective Date of Benefit:
09/01/26; Payment Date: 10/15/26
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
5. Approve Retirement Application
Department
Retirement Administration
Type
Action
Recommended Action
approve retirement application for Jennifer Lynn Blow
6. Administrative Update
Page 2 of 113
Subject
6.1. City of Burlington, VT Burlington Employees' Retirement System
Actuarial Valuation Report GASB 68 Disclosure June 30, 2026 (Measurement
Date: June 30, 2025) — USI Consulting Group
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
6. Administrative Update
Department
Retirement Administration
Type
Discussion
Information
Presentation
7. Wealthspire Institutional
Subject
7.1. Quarterly Investment Review Third Quarter 2026 (as of September 30,
2026)
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
7. Wealthspire Institutional
Department
Retirement Administration
Type
Discussion
Information
Presentation
Subject
7.2. Repayment to City of Prepaid Pension Benefits for Fiscal Year Ending June
30, 2026
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
7. Wealthspire Institutional
Department
Retirement Administration
Type
Information
8. Adjournment
Subject
8.1. Motion to adjourn
Meeting
October 19, 2026 - Retirement Board Meeting - Monday, October 19, 2026, 9:30 AM,
Bushor Conference Room, 149 Church Street, 1st Floor
Category
8. Adjournment
Department
Council and Board
Type
Action
Procedural
Recommended Action
Motion to adjourn
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City of Burlington, VT
Burlington Employees’ Retirement System
Actuarial Valuation Report
GASB 68 Disclosure
June 30, 2026
GASB 67 AND 68
DISCLOSURE
(Measurement Date: June 30, 2025)
USICG.com
Page 14 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Table of Contents
Certification ............................................................................................................................................... 1
Contributions Compared to ADEC and Payroll.............................................................................................. 2
Discount Rate Calculation ........................................................................................................................... 3
Target Allocation and Expected Rate of Return ............................................................................................ 4
Schedule of Changes in Net Pension Liability and Related Ratios .................................................................. 5
Schedule of Net Pension Liability ................................................................................................................ 7
Disclosure Overview as of June 30, 2025...................................................................................................... 8
Changes in the Net Pension Liability ............................................................................................................ 9
Components of the Pension Expense for the Fiscal Year Ended June 30, 2025 ..............................................10
Pension Expense and Deferred Outflows and Inflows of Resources Related to Pensions ..............................15
Sensitivity of the Net Pension Liability to Changes in the Discount Rate ......................................................19
Participant Breakdown as of June 30, 2025 .................................................................................................19
Description of Significant Changes Prior to Year End ...................................................................................20
DROP Balances ..........................................................................................................................................20
Valuation Date and Roll Forward Process ...................................................................................................20
Funding Policy ...........................................................................................................................................20
Assumption Selection ................................................................................................................................20
Description of Actuarial Methods ...............................................................................................................21
Description of Actuarial Assumptions .........................................................................................................22
Summary of Plan Provisions .......................................................................................................................26
Supplemental Allocation Exhibits ...............................................................................................................33
All the items listed below are required by GASB 67 and GASB 68 but are not included in this report:
Money-Weighted Rate of Return
Schedule of Investment Returns
Statement of Changes in Fiduciary Net Position
Statement of Fiduciary Net Position
Investments That Represent 5% or More of the Plan’s Fiduciary Net Position
Investment Policy
Pension Board Composition
Authority to Amend Plan
Report Prepared By:
Richard S. Sych
Partner | Senior Vice President,
Retirement Services
860.856.2112
[email protected]
Robert P. Lessard
Assistant Vice President &
Consulting Actuary
860.856.2106
[email protected]
Rebecca Lunt
Senior Actuarial Analyst
860.856.2133
[email protected]
Page 15 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Certification
This report presents the results of the June 30, 2025 GASB 68 Disclosure for the Burlington Employees'
Retirement System (the Plan). The report is intended to satisfy the requirements of GASB 68. This report may
not be appropriate for any other purpose.
The report has been performed in accordance with generally accepted actuarial principles and practices. It is
intended to comply with the Actuarial Standards Board Standards of Practice.
As required under Part II, Section 24-61 of the Burlington Code of Ordinances, experience studies are performed
at least one in every five-year period. The assumptions in this report were based on an experience study
covering the period July 1, 2017 to June 30, 2022.
In our opinion, the actuarial assumptions used in this report are reasonably related to the experience of the Plan
and to reasonable long-term expectations.
In preparing this disclosure report, I have relied on employee data provided by the Plan Sponsor, and on asset
and contribution information provided by the Plan Sponsor or Trustee. I have audited neither the employee
data nor the financial information, although I have reviewed them for reasonableness.
The results in this disclosure report are based on the Plan as summarized in the Summary of Plan Provisions
section of this report and the actuarial methods and assumptions detailed in the Description of Actuarial
Methods and Procedures and Description of Actuarial Assumptions sections of this report.
Future actuarial measurements may differ significantly from the current measurements presented in this report
due to factors such as, but not limited to, the following: plan experience differing from that anticipated by the
economic or demographic assumptions; changes in economic or demographic assumptions; increases or
decreases expected as part of the natural operation of the methodology used for these measurements (such as
the end of an amortization period or additional cost or contribution requirements based on the plan’s funded
status); and changes in plan provisions or applicable law. Due to the limited scope of this report, an analysis of
the potential range of such future measurements has not been performed.
I have no relationship with the employer or the Plan that would impair, or appear to impair, my objectivity in
performing the work presented in this report. I am a member of the American Academy of Actuaries and meet
its Qualification Standards to render the actuarial opinion contained herein.
Richard S. Sych, FSA, MAAA
Enrolled Actuary 26-05065
Robert P. Lessard, ASA, MAAA
Enrolled Actuary 26-08801
July 15, 2026
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Page 16
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Contributions Compared to ADEC and Payroll
Schedule of Contributions Last 10 Fiscal Years
Actuarially determined employer contribution (ADEC)
2025
2024
2023
2022
$ 13,103,013
$ 11,716,667
$ 11,254,693
$ 10,821,716
13,103,013
11,716,667
11,254,693
10,821,716
Contributions in relation to the ADEC
Contribution deficiency (excess)
$
Covered payroll
$ 68,049,609
$ 64,019,663
19.26%
18.30%
Contributions as a % of covered payroll
-
$
2020
Actuarially determined employer contribution (ADEC)
$
Contributions in relation to the ADEC
-
9,715,892
$
9,715,892
9,516,913
-
Covered payroll
$ 50,603,498
$ 49,218,437
19.20%
19.34%
10,236,862
10,236,862
$
-
$ 58,652,428
$ 51,361,810
$
51,634,214
19.19%
21.07%
$
9,516,913
$
$
2018
$
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-
-
$
-
2019
Contribution deficiency (excess)
Contributions as a % of covered payroll
$
2021
2017
9,172,822
$
9,172,822
$
19.83%
-
2016
9,219,098
$
9,219,098
$
9,149,159
9,149,159
-
$
-
$ 49,012,028
$ 45,650,372
$
48,107,717
18.72%
20.20%
19.02%
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Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Discount Rate Calculation
The long-term expected rate of return on investments may be used to discount liabilities to the extent that the
plan’s fiduciary net position and future contributions are projected to be sufficient to cover expected benefit
payments and administrative expenses for current plan members. Projections of the plan’s fiduciary net position
incorporate all cash flows for contributions from the employer and employee and administrative expenses.
Professional judgment should be applied to the projections of contributions in circumstances where (a)
contribution amounts are established by statute or contract or (b) a formal written policy exists. Consideration
should also be given to the most recent five-year contribution history as key indicators of future contributions. It
should not include cash flows for future plan members.
If the amount of the plan’s fiduciary net position is projected to be greater than or equal to the benefit
payments and administrative expenses made in that period, the actuarial present value of payments should be
discounted using the long-term expected rate of return on those investments. A 20-year, high quality (AA/Aa or
higher), tax-exempt municipal bond yield or index rate must be used to discount benefit payments for periods
where the fiduciary net position is not projected to cover expected benefit payments and administrative
expenses.
Plans that are projected to have sufficient fiduciary net position indefinitely will use the long-term expected
return on investments to determine liabilities but will have to substantiate their projected solvency.
GASB permits alternative methods to evaluate the sufficiency of the plan’s net fiduciary position. Based on the
plan’s current net pension liability and current contribution policy, the plan’s projected fiduciary net position will
be sufficient to cover projected benefit payments and administrative expenses indefinitely. Therefore, since the
fund is not projected to run out of money, we have used the 7.10% interest rate assumption to discount plan
liabilities.
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Page 18
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Target Allocation and Expected Rate of Return
Actuarial Valuation as of June 30, 2025
Target
Allocation
Long-Term
Expected Nominal
Rate of Return*
Weighting
U.S. Core Fixed Income
20.00%
5.20%
1.04%
U.S. Bonds - Dynamic
7.00%
5.30%
0.37%
Domestic Large Cap Equity
33.00%
6.60%
2.18%
Domestic Small Cap Equity
10.00%
6.40%
0.64%
International Developed Equity
18.00%
7.50%
1.35%
Emerging Markets Equity
7.50%
8.60%
0.65%
Private Real Estate
3.00%
8.10%
0.24%
Broad Real Assets
1.50%
7.60%
0.11%
Asset Class
100.00%
6.58%
Interaction Effect
0.90%
Long-Term Expected Nominal Return
7.48%
*Long-Term Real Returns are provided by Fiducient Advisors. The supporting information was provided by
Fiducient Advisors and reflects the Capital Market Assumptions as of January 1, 2025. The returns are
geometric means.
The long-term expected rate of return on pension plan investments was determined using a building block
method in which best-estimate ranges of expected future real rates of return are developed. Best estimates of
the real rates of return for each major asset class are included in the pension plan’s target asset allocation.
The information above is based on geometric means and does not reflect additional returns through investment
selection, asset allocation and rebalancing. An expected rate of return of 7.10% was used.
The June 30, 2025 Actuarial Valuation directly calculated the June 30, 2025 Total Pension Liability (TPL).
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Page 19
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Fiscal Years
2025
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending: (a)
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income (loss)
Benefit payments, including refunds of member contributions
Administrative expenses
Other
Net change in plan fiduciary net position
2024
2023
2022
$
7,857,234 $
7,402,863 $
6,545,615 $
6,776,297 $
6,676,008
25,660,233
24,409,872
22,851,695
22,134,729
21,228,650
(231,287)
62,740
3,888,992
2,442,081
7,963,694
10,227,799
3,296,513
604,166
3,190,981
3,383,942
3,621,746
(23,176,877)
(22,082,080)
(21,384,228)
(20,615,115)
(18,411,850)
12,551,384
17,694,349
21,431,862
15,039,106
17,607,712
364,944,227
347,249,878
325,818,016
310,778,910
293,171,198
$ 377,495,611 $ 364,944,227 $ 347,249,878 $ 325,818,016 $ 310,778,910
$
13,103,013 $ 11,716,667 $ 11,254,693 $ 10,821,716 $ 10,236,862
4,621,956
3,992,236
4,075,840
3,957,281
3,522,346
30,561,521
28,289,170
21,190,350
(32,688,208)
59,811,708
(23,176,877)
(22,082,080)
(21,384,228)
(20,615,115)
(18,411,850)
(637,548)
(648,900)
(722,335)
(935,694)
(762,205)
(184,884)
(50,100)
(50,100)
24,472,065
21,267,093
14,229,436
(39,510,120)
54,346,761
Plan fiduciary net position - beginning
Plan fiduciary net position - ending: (b)
244,921,331
269,393,396
223,654,238
244,921,331
209,424,802
223,654,238
248,934,922
209,424,802
Net pension liability - ending: (a) - (b)
$ 108,102,215
$ 120,022,896
$ 123,595,640
$ 116,393,214
71.36%
67.11%
64.41%
64.28%
Plan fiduciary net position as a % of total pension liability
Covered payroll
Net pension liability as a % of covered payroll
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2021
$
68,049,609
158.86%
$
64,019,663
187.48%
$
58,652,428
210.73%
$
51,361,810
226.61%
194,588,161
248,934,922
$
61,843,988
80.10%
$
51,634,214
119.77%
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
2020
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending: (a)
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income (loss)
Benefit payments, including refunds of member contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Net pension liability as a % of covered payroll
USICG.COM
2017
2016
6,513,321 $
6,374,840 $
6,670,326 $
5,939,730 $
5,327,448
20,435,116
19,718,409
19,961,295
19,571,180
18,268,523
(138,534)
(414,295)
3,175,481
1,831,931
(1,453,843)
(4,272,574)
6,852,487
2,234,083
2,147,915
(7,508,856)
10,370,856
(17,337,994)
(16,617,928)
(15,616,191)
(14,770,644)
(13,971,175)
15,020,007
13,455,167
1,914,197
16,838,548
16,062,988
278,151,191
264,696,024
262,781,827
245,943,279
229,880,291
$ 293,171,198 $ 278,151,191 $ 264,696,024 $ 262,781,827 $ 245,943,279
$
9,715,892 $
9,516,913 $
9,172,822 $
9,219,098 $
9,149,159
3,458,775
3,630,844
3,624,939
2,712,823
2,304,971
4,500,109
9,561,727
16,762,760
21,882,460
(2,088,531)
(17,337,994)
(16,617,928)
(15,616,191)
(14,770,644)
(13,971,175)
(411,980)
(338,039)
(385,309)
(361,811)
(320,908)
(50,100)
(50,100)
(20,278)
(125,298)
5,703,417
13,538,743
18,681,926
(4,926,484)
194,713,459
194,588,161
$
Plan fiduciary net position as a % of total pension liability
Covered payroll
2018
$
Plan fiduciary net position - beginning
Plan fiduciary net position - ending: (b)
Net pension liability - ending: (a) - (b)
2019
98,583,037
189,010,042
194,713,459
$
66.37%
$
50,603,498
194.81%
83,437,732
175,471,299
189,010,042
$
70.00%
$
49,218,437
169.53%
75,685,982
156,789,373
175,471,299
$
71.41%
$
49,012,028
154.42%
87,310,528
161,715,857
156,789,373
$
66.77%
$
45,650,372
191.26%
89,153,906
63.75%
$
48,107,717
185.32%
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Schedule of Net Pension Liability
Last 10 Fiscal Years
2025
2024
2023
2022
2021
$ 377,495,611
$ 364,944,227
$ 347,249,878
$ 325,818,016
$ 310,778,910
Plan fiduciary net position
269,393,396
244,921,331
223,654,238
209,424,802
248,934,922
Net pension liability (asset)
$ 108,102,215
$ 120,022,896
$ 123,595,640
$ 116,393,214
71.36%
67.11%
64.41%
64.28%
Total pension liability
Plan fiduciary net position as a % of total pension liability
Covered payroll
$
Net pension liability as a % of covered payroll
Total pension liability
Net pension liability as a % of covered payroll
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64,019,663
$
187.48%
58,652,428
$
210.73%
51,361,810
61,843,988
80.10%
$
226.61%
51,634,214
119.77%
2020
2019
2018
2017
2016
$ 293,171,198
$ 278,151,191
$ 264,696,024
$ 262,781,827
$ 245,943,279
194,588,161
194,713,459
189,010,042
175,471,299
156,789,373
$
Plan fiduciary net position as a % of total pension liability
Covered payroll
$
158.86%
Plan fiduciary net position
Net pension liability (asset)
68,049,609
$
98,583,037
$
66.37%
$
50,603,498
194.81%
83,437,732
$
70.00%
$
49,218,437
169.53%
75,685,982
$
71.41%
$
49,012,028
154.42%
87,310,528
$
66.77%
$
45,650,372
191.26%
89,153,906
63.75%
$
48,107,717
185.32%
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Disclosure Overview as of June 30, 2025
Plan's Funded Status
Balances -- prior year disclosure
Changes in net pension liability:
Service cost
Interest
Net investment income
Contributions - employer
Contributions - member
Changes of benefit terms
Benefit payments, including refunds of
member contributions
Administrative expense
Other
Deferred Outflows/(Inflows) of Resources
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net
Pension
Liability
(364,944,227)
244,921,331
(120,022,896)
(7,857,234)
(25,660,233)
30,561,521
13,103,013
4,621,956
231,287
23,176,877
(23,176,877)
(637,548)
-
Assumption
Changes
Investment
(Gains)/
Losses
Recognized in
Net Pension
Liability
8,718,396
1,063,661
(3,074,684)
(120,022,896)
(7,857,234)
(25,660,233)
30,561,521
13,103,013
4,621,956
231,287
13,103,013
(4,621,956)
(231,287)
637,548
-
(6,877,859)
(1,063,661)
5,607,179
(2,442,081)
-
(2,442,081)
-
2,442,081
Balances -- end of year
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269,393,396
(108,102,215)
4,282,618
-
6,877,859
1,063,661
6,877,859
1,063,661
(5,607,179)
(5,607,179)
(2,442,081)
-
(13,384,575)
13,384,575
13,384,575
(14,459,167)
14,459,167
(10,852,080)
(108,102,215)
Total pension expense
(377,495,611)
Recognized in
Total Pension
Expense
7,857,234
25,660,233
(30,561,521)
(637,548)
-
Recognized in total pension expense
Differences between expected and actual
experience
Changes of assumptions
Differences between projected and actual
earnings on pension plan investments
Deferred outflows/inflows of resources
Differences between expected and actual
experience
Changes of assumptions
Differences between projected and actual
earnings on pension plan investments
Experience
(Gains)/
Losses
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Changes in the Net Pension Liability
Increase (Decrease)
Plan Fiduciary
Net Position
(b)
Total Pension
Liability
(a)
Balances as of June 30, 2024
$
364,944,227
$
244,921,331
Net Pension
Liability
(a) - (b)
$
120,022,896
Changes for the year:
Service cost
7,857,234
7,857,234
Interest
25,660,233
25,660,233
Differences between expected and
actual experience
2,442,081
2,442,081
Changes of benefit terms
(231,287)
(231,287)
Changes of assumptions
-
-
Contributions - employer
13,103,013
(13,103,013)
Contributions - member
4,621,956
(4,621,956)
Net investment income
30,561,521
(30,561,521)
(23,176,877)
-
(637,548)
637,548
-
-
24,472,065
(11,920,681)
Benefit payments, including refunds
of member contributions
(23,176,877)
Administrative expense
Other
Net changes
Balances at June 30, 2025
USICG.COM
12,551,384
$
377,495,611
$
269,393,396
$
108,102,215
9 of 113
Page 24
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Components of the Pension Expense for the Fiscal Year Ended June 30, 2025
Description
Service cost
Amount
$
Interest on the total pension liability
25,660,233
Differences between expected and actual experience
6,877,859
Changes of assumptions
1,063,661
Changes of benefit terms
(231,287)
Member contributions
(4,621,956)
Projected earnings on pension plan investments
(17,176,946)
Differences between projected and actual earnings
on plan investments
(5,607,179)
Pension plan administrative expense
637,548
Other changes in fiduciary net position
Total pension expense
USICG.COM
7,857,234
$
14,459,167
Page 10
25 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Increase (Decrease) in Pension Expense from the Recognition of the Effects
of Differences Between Expected and Actual Experience
Year
Differences
between
Expected and
Actual
Experience
2023
$
Recognition
Period (Years)
2025
10,227,799
3.0
$ 3,409,267
2024
7,963,694
3.0
2,654,565
$ 2,654,564
2025
2,442,081
3.0
814,027
814,027
$
814,027
$ 6,877,859
$ 3,468,591
$
814,027
Net increase (decrease) in pension expense
USICG.COM
2026
2027
11 26 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Increase (Decrease) in Pension Expense from the Recognition of the Effects of Changes of Assumptions
Year
Changes of
Assumptions
2023
$
Recognition
Period (Years)
2025
3,190,981
3.0
$ 1,063,661
2024
-
3.0
-
2025
-
3.0
-
Net increase (decrease) in pension expense
USICG.COM
2026
$ 1,063,661
$
$
2027
-
$
-
-
$
-
12 27 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Increase (Decrease) in Pension Expense from the Recognition of Differences Between
Projected and Actual Earnings on Pension Plan Investments
Year
Differences
between
Projected and
Actual Earnings
on Pension Plan
Investments
Recognition
Period (Years)
2025
2021
$ (45,802,729)
5
$ (9,160,545)
2022
50,370,201
5
10,074,040
$ 10,074,041
2023
(6,564,064)
5
(1,312,813)
(1,312,813)
$ (1,312,812)
2024
(12,654,728)
5
(2,530,946)
(2,530,946)
(2,530,946)
$ (2,530,944)
2025
(13,384,575)
5
(2,676,915)
(2,676,915)
(2,676,915)
(2,676,915)
$ (2,676,915)
$ (5,607,179)
$ 3,553,367
$ (6,520,673)
$ (5,207,859)
$ (2,676,915)
Net increase (decrease) in pension expense
USICG.COM
2026
2027
2028
2029
13 28 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Interest on the Total Pension Liability Recognized in Expense
Portion of
Period
Interest
Rate
Interest on
the Total
Pension
Liability
364,944,227
100%
7.10%
$ 25,911,040
7,857,234
100
7.10
557,864
(23,176,877)
50
7.10
(808,671)
Amount for
Period
Beginning total pension liability
$
Service cost
Benefit payments, including refunds of
member contributions
Total interest on the pension liability
$ 25,660,233
Projected Earnings on Pension Plan Investments Recognized in Expense
Portion of
Period
Projected
Rate of
Return
Projected
Earnings
244,921,331
100%
7.10%
$ 17,389,415
Contributions - employer
13,103,013
50
7.10
457,181
Contributions - member
4,621,956
50
7.10
161,266
(23,176,877)
50
7.10
(808,671)
(637,548)
50
7.10
(22,245)
Amount for
Period
Beginning plan fiduciary net position
Benefit payments, including refunds of
member contributions
Administrative expense and other
Total projected earnings
USICG.COM
$
$ 17,176,946
Page 14
29 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Pension Expense and Deferred Outflows and Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2025, the recognized pension expense is $14,459,167. As of
June 30, 2025, deferred outflows and inflows of resources related to pensions are reported as
follows:
Deferred
Outflows of
Resources
Differences between expected and actual experience
$
Deferred
Inflows of
Resources
4,282,618
Changes of assumptions
-
Net difference between projected and actual
earnings on pension plan investments
Total
$ (10,852,080)
$
4,282,618
$ (10,852,080)
Amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in the pension expense as follows:
Year Ended June 30:
2026
USICG.COM
$
7,021,958
2027
(5,706,646)
2028
(5,207,859)
2029
(2,676,915)
2030
-
Thereafter
-
Page 15
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Deferred Outflows and Inflows of Resources from
Differences Between Expected and Actual Experience
Experience
Losses
(a)
Year
2024
2025
$
7,963,694
2,442,081
Experience
Gains
(b)
Amounts Recognized
in Pension Expense
through June 30, 2025
(c)
Balances at June 30, 2025
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
(a) - (c)
(b) - (c)
$
$
5,309,130
814,027
1,628,054
$
USICG.COM
2,654,564
4,282,618
$
-
Page 16
31 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Deferred Outflows and Inflows of Resources from Changes of Assumptions
Balances at June 30, 2025
Year
2025
Increases in the
Total Pension
Liability
(a)
Decreases in
the Total
Pension
Liability
(b)
Amounts Recognized
in Pension Expense
through June 30, 2025
(c)
$
Deferred
Outflows of
Resources
(a) - (c)
$
USICG.COM
Deferred
Inflows of
Resources
(b) - (c)
-
$
-
Page 17
32 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Deferred Outflows and Inflows of Resources from Differences
Between Projected and Actual Earnings on Pension Plan Investments
Balances at June 30, 2025
Year
Investment
Earnings Less
Than Projected
(a)
2022
$ 50,370,201
2023
Investment
Earnings
Greater Than
Projected
(b)
$
Amounts Recognized
in Pension Expense
through June 30, 2025
(c)
Deferred
Outflows of
Resources
(a) - (c)
$
$ 10,074,041
40,296,160
Deferred
Inflows of
Resources
(b) - (c)
(6,564,064)
(3,938,439)
$
2024
(12,654,728)
(5,061,892)
(7,592,836)
2025
(13,384,575)
(2,676,915)
(10,707,660)
$ 10,074,041
USICG.COM
(2,625,625)
$ (20,926,121)
Page 18
33 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Net pension liability as of June 30, 2025
Current
Discount Rate
(7.10%)
1% Decrease
(6.10%)
$ 108,102,215
$ 151,782,351
1% Increase
(8.10%)
$
71,690,305
Participant Breakdown as of June 30, 2025
Participant
Count
Inactive plan members or beneficiaries currently receiving benefits
925
Inactive plan members entitled to but not yet receiving benefits
824
Active plan members
944
Total members
USICG.COM
2,693
Page 19
34 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Description of Significant Changes Prior to Year End
There were no significant plan changes since the last published valuation.
DROP Balances
Currently, there is no Deferred Retirement Option Plan (DROP). Therefore, the DROP balances are $0.
Valuation Date and Roll Forward Process
The Plan Sponsor uses the June 30, 2023 Actuarial Valuation to calculate the ADEC for the fiscal year ending
2025.
The June 30, 2025 Actuarial Valuation directly calculated the June 30, 2025 Total Pension Liability (TPL). The TPL
as of June 30, 2025 was also adjusted to reflect any material plan changes after the valuation, if applicable.
Funding Policy
The Plan Sponsor uses the Entry Age Normal Actuarial Cost Method to calculate the plan liabilities. The Funding
Policy has two parts.
1. Normal Cost
2. Amortization of the Unfunded Actuarial Liability (UAL)
Each year the Plan Sponsor pays the Normal Cost plus an amortization of the plan’s UAL. Unfunded accrued
liabilities as of June 30, 2023 were amortized over a closed 20-year period. Future changes in the unfunded
accrued liability will be amortized separately, assuming a new 20-year amortization each valuation.
Assumption Selection
The selections of all assumptions used in determining the total pension liability were made in conformity with
Actuarial Standards of Practice issued by the Actuarial Standards Board.
The actuarial assumptions used in the valuation were based on the results of an actuarial experience study for
the period July 1, 2017 through June 30, 2022.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Description of Actuarial Methods
Asset Valuation Method
The Actuarial Value of assets used in the development of plan contributions phases in the recognition of
differences between the actual return on Market Value and expected return on Market Value over a 5-year
period at 20% per year.
Actuarial Cost Method
Entry Age Normal (level percentage of salary)
Normal Cost: Under this method, the total normal cost is the sum of amounts necessary to fund each active
member’s normal retirement benefit if paid annually from entry age to assumed retirement age. Entry age is the
age at which the employee would have been first eligible for the plan, if it had always been in effect. The normal
cost for each participant is expected to remain a level percentage of the employee’s salary. The normal cost for
the plan is the difference between the total normal cost for the year and the anticipated member contributions
for that year.
Past Service Liability: The present value of future benefits that relates to service before the valuation date is the
total past service liability. The unfunded past service liability is the difference between the total past service
liability and any assets (including accumulated member contributions). Unfunded accrued liabilities as of June
30, 2023 were amortized over a closed 20-year period. Future changes in the unfunded accrued liability will be
amortized separately, assuming a new 20-year amortization each valuation.
Experience Gains and Losses: All experience gains and losses (the financial effect of the difference between the
actual experience during the prior period and the result expected by the actuarial assumptions for that prior
period) appear directly in the past service liability and are amortized at the same rate the plan is amortizing the
remaining unfunded past service liability.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Description of Actuarial Assumptions
Changes in Actuarial Assumptions
The valuation reflects changes in the actuarial assumptions listed below. (The assumptions used before and
after these changes are more fully described in the next section.)
•
Retirement age
The assumptions indicated were changed to better reflect the Enrolled Actuary’s current best estimate of
anticipated experience of the plan.
Investment rate of return (net of investment-related and administrative expenses)
7.10%.
Rate of compensation increase (including inflation)
Class A - Fire
Class A - Police
Class B
Completed Years
of Service
Rate*
<1
11.0%
1
9.0%
2
8.0%
3
7.0%
4
6.5%
5
6.0%
6
5.5%
7
5.0%
8
5.0%
9
5.0%
10
4.8%
11
4.7%
12
4.6%
13
4.5%
14
4.4%
15
4.3%
16
4.2%
17
4.0%
18
3.8%
19
3.7%
20+
3.6%
* Inflation: 2.70%
Completed Years
of Service
Rate*
<1
9.0%
1
8.0%
2
7.2%
3
6.2%
4
6.0%
5
5.7%
6
5.5%
7
5.3%
8
5.2%
9
5.1%
10
4.9%
11
4.7%
12
4.6%
13
4.5%
14
4.4%
15
4.3%
16
4.2%
17
4.0%
18
3.8%
19
3.7%
20+
3.6%
* Inflation: 2.70%
Completed Years
of Service
Rate*
<1
6.5%
1
6.2%
2
6.0%
3
5.1%
4
4.9%
5
4.8%
6
4.7%
7
4.6%
8
4.5%
9
4.4%
10
4.3%
11
4.2%
12
4.1%
13
4.1%
14
4.0%
15
3.9%
16
3.9%
17
3.9%
18
3.8%
19
3.7%
20+
3.6%
* Inflation: 2.70%
The actuarial assumption in regards to rate of compensation increases shown above are based on the results of
an actuarial experience study for the period July 1, 2017 through June 30, 2022.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Inflation
2.70%.
This assumption is based on long-term historical inflation numbers. While near term averages have been higher,
we do not believe this trend will continue indefinitely and expect that there will be a reversion to the long-term
average.
Mortality
Class A:
Retirees – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for Public Safety Employees,
for non-annuitants and annuitants, projected to the valuation date with Scale MP-2021, set forward 2 years.
Disabled – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for Public Safety Disabled
Retirees, projected to the valuation date with Scale MP-2021.
Survivors – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for Public Safety Contingent
Survivors, projected to the valuation date with Scale MP-2021.
Class B:
Retirees – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for General Employees, for
non-annuitants and annuitants, projected to the valuation date with Scale MP-2021, set forward 2 years.
Disabled – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for General Disabled Retirees,
projected to the valuation date with Scale MP-2021, set forward 3 years.
Survivors – Pub-2010 Public Retirement Plans Amount-Weighted Mortality Tables for General Contingent
Survivors, projected to the valuation date with Scale MP-2021, set forward 3 years.
Mortality improvement
Projected to date of decrement using Scale MP-2021 (generational).
We have selected this mortality assumption because it is based on a recently published public retirement
mortality study released by the Society of Actuaries.
Retirement age
Class A - Fire
Class A - Police
Completed Years
of Service
<15
15-18
19
20-23
24
25
26-29
30+
Completed Years
of Service
<15
15-16
17-18
19
20-24
25
26-29
30+
Rate
0%
2.5%
5%
20%
50%
85%
60%
100%
Rate
0%
2.5%
7.5%
20%
40%
85%
60%
100%
Compulsory retirement is assumed at age 63.
Compulsory retirement is assumed at age 63.
Prior: Compulsory retirement is assumed at age 60.
Prior: Compulsory retirement is assumed at age 60.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Retirement age (cont.)
Class B
Age
55-57
58-59
60-61
62
63-64
65-69
70-74
75+
Rate
3%
8%
10%
16%
20%
30%
50%
100%
Termination prior to retirement
Class A - Fire
Completed Years
of Service
<3
3
4
5
6
7
8
9
10+
Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.5%
4.0%
0.0%
Class A - Police
Completed Years
of Service
<2
2
3
4
5
6
7
8
9
10+
USICG.COM
Rate
12.0%
11.0%
10.0%
9.0%
7.0%
6.0%
5.0%
4.0%
3.0%
0.0%
Page 24
39 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Termination prior to retirement (cont.)
Class B – 110% of the Vaughn Select & Ultimate Withdrawal Table for service prior to 3 years, and 140% of the
Vaughn Select & Ultimate Withdrawal Table thereafter.
Sample rates
Age
20
25
30
35
40
45
50
55
Completed Years of Service
0
1
2
32.8%
27.5%
23.1%
30.6%
24.8%
20.4%
28.4%
22.0%
17.6%
26.2%
19.6%
15.2%
24.0%
17.4%
13.0%
21.8%
15.5%
11.1%
19.6%
13.9%
9.5%
0.0%
0.0%
0.0%
3+
26.0%
19.0%
14.1%
11.1%
9.1%
7.7%
6.3%
0.0%
Disability
Class A Fire: 1985 Pension Disability Study Class 3 Table for Males and Females.
Class A Police: 1985 Pension Disability Study Class 2 Table for Males and Females.
Class B: 60% of 1985 Pension Disability Study Class 1 Table for Males and Females.
The actuarial assumptions in regards to rates of decrement shown above are based on the results of an actuarial
experience study for the period July 1, 2017 through June 30, 2022.
Administrative expenses
Currently, there is no expense load assumed for administrative expenses.
Cost of living increases
2.60%.
Accrual rate election
Class A: 80% of retiring members are assumed to elect the no COLA accrual rate and 20% of retiring members
are assumed to elect the full COLA accrual rate.
Class B: 70% of retiring members are assumed to elect the no COLA accrual rate and 30% of retiring members
are assumed to elect the full COLA accrual rate.
Payroll growth
3.10% per year.
Percent of active employees married
80%.
Spouse’s age
Husbands are assumed to be 2 years older than wives.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Summary of Plan Provisions
This exhibit summarizes the major provisions of the Plan. It is not intended to be, nor should it be interpreted as
a complete statement of all plan provisions. To the extent that this summary does not accurately reflect the plan
provisions, then the results of this disclosure may not be accurate.
Plan identification
Single-employer pension plan.
Effective date
July 1, 1954.
Average Final Compensation (AFC)
For Class A Police non-union employees, Class A Police employees hired after January 10, 2011, Class A Fire
employees hired after October 7, 2011 Class B AFSCME Local 1343 employees hired after June 7, 2011, Class B
IBEW Local 300 employees hired after October 30, 2012 or any employees hired on or after January 1, 2018, it is
the average earnable compensation during the highest 5 non-overlapping 12-month periods. For all others, it is
the average earnable compensation during the highest 3 non-overlapping 12-month periods.
Membership eligibility
Regular employees of the City of Burlington excluding elective officers other than the mayor and excluding
teachers other than certain teachers employed prior to July 1, 1947.
Membership classification
Class A
Members of the Fire and Police Departments not including clerical employees.
Class B
All other members.
Service retirement
Eligibility
Class A
For Police employees hired before July 1, 2006, age 42 and 5 years of creditable service. For Police employees
hired after January 10, 2011, age 40 and 20 years of creditable service. For other Police Union employees, age 45
and 5 years of creditable service. For Fire employees hired after January 10, 2011, age 45 and 20 years of
creditable service. For Fire Union employees hired on or before January 10, 2011, age 45 and 5 years of
creditable service. For all others, age 42 and 5 years of creditable service. Compulsory at age 63.
Class B
Age 55 and 5 years of creditable service.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Service retirement (continued)
Amount of Benefit
Class A
For Fire employees hired before January 1, 2007 and Police employees hired before July 1, 2006, 2.75% of AFC
times creditable service not in excess of 25 years plus 0.50% of AFC times creditable service between 25 and 35
years. For Police employees hired after January 10, 2011, 2.50% of AFC times creditable service not in excess of
20 years plus 5.00% of AFC times creditable service between 20 and 25 years. For Fire employees hired after
January 10, 2011, 3.00% of AFC times creditable service not in excess of 25 years plus 0.50% of AFC times
creditable service between 25 and 35 years. For all others, 2.65% of AFC times creditable service not in excess
of 25 years plus 0.50% of AFC times creditable service between 25 and 35 years. Benefit increased by Cost of
Living Adjustment detailed below.
In lieu of this benefit, at the time of retirement, a member may choose either (i) an accrual rate of 3.25% for the
first 25 years of creditable service, plus an accrual of 0.50% for creditable service between 25 and 35 years, and
a Cost of Living Adjustment equal to one half of the Cost of Living Adjustment detailed below, or (ii) an accrual
rate of 3.80% for all years of service prior to June 30, 2006 for the first 25 years, an accrual rate of 3.60% for all
years of service commencing July 1, 2006 for the first 25 years, plus an accrual rate of 0.50% for creditable
service between 25 and 35 years, and no Cost of Living Adjustment.
A Fire employee hired on or after January 1, 2007 or a Police employee hired on or after July 1, 2006 may only
select a benefit with a full Cost of Living Adjustment. Any Fire employee hired after October 5, 2015 cannot
receive a pension that exceeds 90% of the employee’s average final compensation.
For Police employees hired after January 10, 2011, the above benefits based on AFC and creditable service at
retirement are reduced actuarially for the period of time by which retirement precedes age 50.
For all other Police employees, prior to age 55, the above benefit based on AFC and creditable service at
retirement is reduced actuarially for the period of time by which retirement precedes the earlier of 25 years of
creditable service and age 55. For employees who terminate with 20 to 25 years of creditable service the above
benefit based on AFC and creditable service at retirement is reduced by 1.82% for each year that creditable
service is less than 25 years.
For Fire employees hired on or after January 10, 2011, who are at least age 45 with 20 years of creditable
service, the normal retirement benefit is reduced actuarially for the period of time by which retirement
precedes age 50. For employees who terminate with 20 to 25 years of creditable service who retire at age 50 or
later, the above benefit based on AFC and creditable service at retirement is reduced by 1.82% for each year
that creditable service is less than 25 years. Employees that retiree at age 50 with at least 25 years of creditable
service receive an unreduced benefit.
For Fire employees hired on or after January 1, 2007 but before January 10, 2011, the normal retirement benefit
is reduced actuarially for the period to time by which retirement precedes age 55. For employees who
terminate with 20 to 25 years of creditable service and have attained age 48, the above benefit based on AFC
and creditable service at retirement is reduced by 1.82% for each year that creditable service is less than 25
years. Employees that retire at age 50 with at least 20 years of creditable service or at age 45 with at least 25
years of creditable service receive an unreduced benefit.
For Fire employees hired before January 1, 2007, the normal retirement benefit is reduced actuarially for the
period of time by which retirement precedes the earlier of age 55 or 25 years of creditable service. For
employees who terminate with 20 to 25 years of creditable service, the above benefit based on AFC and
creditable service at retirement is reduced by 1.82% for each year that creditable service is less than 25 years.
Employees that retire at age 45 with at least 25 years of creditable service receive an unreduced benefit.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Service retirement (continued)
Class B
For employees hired prior to July 1, 2006 (on or before May 4, 2008 for IBEW): Age 65 and older, the greater of
(i) 1.60% of AFC (at age 65) times creditable service not in excess of 25 years plus 0.50% of AFC (at age 65) times
creditable service in excess of 25 years or (ii) the actuarial equivalent of the benefit determined at age 65. This
benefit will be increased by the Cost of Living Adjustment detailed below.
In lieu of this benefit, at the time of retirement, an IBEW member may choose (i) an accrual rate of 1.90% for all
years of service prior on or before May 4, 2008 and an accrual rate of 1.80% for all years of service after May 4,
2008, and a Cost of Living Adjustment equal to one-half of the Cost of Living Adjustment detailed below, or (ii)
an accrual rate of 2.20% for all years of service on or before May 4, 2008 and an accrual rate of 2.00% for all
years of service after May 4, 2008, and no Cost of Living Adjustment.
In lieu of this benefit, at the time of retirement, a member not in IBEW may choose (i) an accrual rate of 1.90%
for all years of service prior to June 30, 2006 for the first 25 years, an accrual rate of 1.80% for all years of service
on or after July 1, 2006 for the first 25 years, plus an accrual of 0.50% for creditable service in excess of 25 years,
and a Cost of Living Adjustment equal to one-half of the Cost of Living Adjustment detailed below, or (ii) an
accrual rate of 2.20% for all years of service prior to June 30, 2006 (on or before May 4, 2008 for IBEW) for the
first 25 years, an accrual rate of 2.00% for all years of service on or after July 1, 2006 for the first 25 years, plus
an accrual of 0.50% for creditable service in excess of 25 years, and no Cost of Living Adjustment.
For employees hired on or after July 1, 2006 (after May 4, 2008 for IBEW): Age 65 and older, the greater of (i)
1.40% of AFC (at age 65) times creditable service not in excess of 25 years plus 0.50% of AFC (at age 65) times
creditable service in excess of 25 years or (ii) the actuarial equivalent of the benefit determined at age 65. This
benefit will be increased by the Cost of Living Adjustment detailed below.
An employee hired on or after July 1, 2006 (after May 4, 2008 for IBEW) may only select a benefit with a full Cost
of Living Adjustment.
Except for employees detailed below, prior to age 65, the above benefit based on AFC and creditable service at
retirement reduced by 2% for each year that retirement precedes age 65. For IBEW employees hired before
May 4, 2008, who elect a contribution rate of 4% is elected the early reduction factor is 2% for each year the
retirement precedes age 65. For IBEW employees hired before May 4, 2008, who elect a contribution rate of 3%
the benefit is reduced by a factor which varies with age. The factor equals 1 at 65 and .4 at 50.
For IBEW employees hired after May 4, 2008, the benefit is reduced by a factor which varies by age. The factor
equals 1 at 65 but is equal to .356 at age 55.
For AFSCME Local 1343 employees hired before January 1, 2006 that meet the Rule of 82 by December 7, 2011
but retire later than December 7, 2011, the reduction is 4% per year at ages 55 to 59 for each year under age 65,
and the standard 2% per year reduction for ages 60 to 65. For other AFSCME Local 1343 employees retiring after
December 7, 2011, there will be full actuarial reduction from ages 55 to 59 and the standard 2% per year
reduction for ages 60 to 65.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Cost of Living Adjustment
Benefits increase annually by changes in the Consumer Price Index of more than 1%. For Class A Fire employees
retiring after October 5, 2015, Class A Police employees retiring after August 29, 2016, Class B AFSCME
employees retiring after October 30, 2015, Class B IBEW employees retiring after March 9, 2016, and all
employees retiring after July 1, 2017, the maximum annual increase is 2.75%. For all other members, the
maximum annual increase is 5%. Increases are not applicable to deferred vested benefit prior to
commencement, survivor income benefit, disability benefit prior to normal retirement age or members who
choose to have no cost of living adjustment. For Class B employees that retire after July 1, 2018, the retirement
COLA will be determined annually by the BERS Board equal to the CPI-U Northeast Region, with a maximum
COLA increase of 2.75%, except that if the funding level of the BERS falls below 81%, the BERS Board may reduce
or vote for no COLA for payees prior to age 65 for the upcoming year. For Class A Police employees who retire
after February 1, 2019 and Fire employees who retire after March 28, 2019, the retirement COLA will be
determined annually by the BERS Board equal to the CPI-U Northeast Region, with a maximum COLA of 2.75%,
except that if the Class A funding level of the BERS falls below 73%, the BERS Board may reduce or vote for no
COLA for the upcoming year.
Service Adjustment
Class A service for calculation of benefits shall be adjusted such that any Class A employee shall be granted 1.07
years of credit for each year in which the employee worked prior to July 1, 1996, and 1.17 years thereafter, in a
position regularly assigned a workweek consisting on average of fifty-three or more hours of work per week.
Disability Retirement
Eligibility
All Members. Permanently disabled. Class B AFSCME Local 1343 employees must have 2 years of creditable
service to be eligible for disabilities that are not work-related. Class A Fire employees hired after October 7,
2011 must have 1 year of creditable service to be eligible for disabilities that are not work-related. All other
employees are immediately eligible.
Amount of Benefit
A benefit payable until normal service retirement eligibility (Class A - age 55 and 5 years of creditable service,
Class B - age 65 and 5 years of creditable service). For Class A Fire employees hired after October 7, 2011, it is
equal to 66 2/3% of the member's earnable compensation less workmen's compensation. For Class B IBEW
employees hired after October 20, 2012 and Class B AFSCME employees, it is equal to 66 2/3% of the member's
earnable compensation less workmen's compensation and Social Security. For all others, it is equal to 75% of the
member's earnable compensation less workmen's compensation and, in the case of Class B, less Social Security.
After normal service retirement eligibility, a service retirement benefit based on AFC at retirement and
creditable service at normal service retirement eligibility, including the period while permanently disabled and
receiving a disability benefit from the System.
Accidental Death
Eligibility
Class A only. Death due to accident while in the performance of duty.
Amount of Benefit
A benefit to the spouse until death or remarriage of the greater of (i) 55% of AFC, and (ii) the participant's
current accrued retirement benefit. Upon death or remarriage of the spouse, the benefit will be payable
to children until age 21.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Survivor Income
Eligibility
All members. Death in active service.
Amount of Benefit
Class A
30% of compensation during the July preceding death payable to spouse until earlier of death or 2nd
anniversary of remarriage. An additional 5% per unmarried child under 21 (maximum additional 10%) is payable
until benefits cease or children no longer eligible. If there is no spouse or spouse dies, the benefit is payable to
unmarried children under age 21 until earlier of death, marriage or age 21.
Class B
30% of compensation during the July preceding death payable to spouse until earlier of death, 2nd anniversary
of remarriage or age 62. Upon the spouse's attainment of age 62 (if not remarried) a benefit based on the 50%
Joint and Survivor form of payment will be paid to the spouse for life. If there is no spouse or spouse dies, the
benefit is payable to unmarried children under age 21 until earlier of death, marriage or age 21.
Return of Contributions
Accumulated contributions returned upon separation with no vested benefits under the plan or upon death with
no accidental death benefit payable. Interest will accrue on these contributions at a rate of 5.5% until
December 31, 2017 and 2.0% thereafter, or at a higher rate as may be set by the Retirement Board. Interest will
only accrue on contributions made after June 30, 1980.
Upon death of a retired member, the excess of his contribution at retirement over the benefits paid will be paid
to his beneficiary or estate.
Vested Retirement
Eligibility
5 years of creditable service.
Vesting percentage.
100% after 5 years. Prior to July 1, 2017, several groups had a graded vesting schedule of 20% after completion
of 3 years of creditable service to 100% after completion of 7 years of creditable service.
Amount of Benefit
Class A
Vesting percentage times the benefit calculated using AFC and creditable service at termination. The benefit is
payable commencing at age 55. Member may elect early receipt with reduction as for service retirement prior to
age 55.
Class B
Vesting percentage times the benefit calculated using AFC and creditable service at termination. The benefit is
payable commencing at age 65. Member may elect early receipt with reduction as for service retirement prior to
age 65.
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Survivor Spouse's Pension
Eligibility
All members. Death of a terminated member entitled to a vested retirement benefit prior to commencement of
such benefit.
Amount of Benefit
50% of reduced accrued benefit reflecting the 50% Joint and Survivor form of payment (ages as of date
payments commence) payable at member's early retirement date. Spouse may elect to receive payments later
than member's early retirement date with no reduction for receipt at member's 65th birthday.
Offsets on Benefits
Disability and accidental death benefits are offset by workmen's compensation paid for the same disability or
death.
Employee Contributions
Class A
11.0% of earnable compensation for Class A employees for the first 35 years of creditable service, and none
thereafter.
Class A employees shall contribute to the BERS a percentage of their salary. The total contribution required
from both the City and employees will be based on the annual system valuation prepared by the City’s actuaries.
Effective retroactive to July 1, 2018, employees shall contribute a percentage so that all employees are
contributing 28% (and the City is contributing 72%) of the total contribution required. For Fiscal Year 2019, this
means that each Class A employee contributed 12.69% of the employee’s base pay. The individual employee
contribution for each subsequent fiscal year will be determined prior to the beginning of the fiscal year.
Effective July 1, 2020, employees shall contribute a percentage so that all employees are contributing 29% (and
the City is contributing 71%) of the total contribution required.
Effective July 1, 2021, employees shall contribute a percentage so that all employees are contributing 30% (and
the City is contributing 70%) of the total contribution required.
Class B
Member contributions for Class B employees, who elected to continue to be eligible for early retirement
benefits at 2% per year deduction between ages 55 and 65, in accordance with the 2006-2009 collective
bargaining agreement will be 4.8% in fiscal year 2016-2017, and 5.2% beginning with fiscal year 2017-2018.
Member contributions for all other Class B employees will be will be 3.8% in fiscal year 2016-2017, and 4.2%
beginning with fiscal year 2017-2018.
Class B employees shall contribute to the BERS a percentage of their annual salary. The total contribution
required from both the City and employees will be based on the annual system valuation prepared by the City’s
actuaries.
Effective retroactive to July 1, 2018, employees shall contribute a percentage so that all employees are
contributing 28% (and the City is contributing 72%) of the total contribution required. For Fiscal Year 2019, this
shall mean that the contribution rate for a Class B employee was 4.41% of the employee’s base pay.
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46 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Employee Contributions (continued)
Effective July 1, 2022, employees shall contribute a percentage so that all employees are contributing 30% (and
the City is contributing 70%) of the total contribution required.
Notwithstanding the above, an individual Class A Fire employee’s contribution shall not exceed 14% of their
eligible wages in Fiscal Years 2026, 2027, and 2028.
Notwithstanding the above, an individual Class B employee’s contribution shall not exceed 7% of their eligible
wages in Fiscal Years 2023, 2024, 2025, and 2026.
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47 of 113
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Supplemental Allocation Exhibits
Exhibit A – Employers’ Allocation of Net Pension Liability as of June 30, 2025
Employer Name
Airport
Electric Department
General Fund
School
Waste Water
Water
Total
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FY 2025
Employer
Employer Total Pension Plan Fiduciary Net Pension
Contributions Proportion
Liability
Net Position
Liability
Total
Deferred
Outflows
Total
Deferred
Inflows
346,014
1,770,403
9,471,497
1,128,153
144,294
242,652
2.3254%
8,778,366
17.9303% 67,686,222
67.8655% 256,189,278
9.7156% 36,676,053
0.8901%
3,360,122
1.2730%
4,805,570
6,264,533
48,303,134
182,825,171
26,173,249
2,397,895
3,429,414
2,513,833
19,383,088
73,364,107
10,502,804
962,227
1,376,156
383,288
2,574,197
10,799,813
1,532,511
146,232
255,867
(580,337)
(4,637,925)
(14,201,616)
(2,168,865)
(324,737)
(347,890)
13,103,013
100.0000% 377,495,611
269,393,396
108,102,215
15,691,908
(22,261,370)
Plan Fiduciary
Net Position
as % of Total
Pension
Liability
Covered
Payroll
71.36% 68,049,609
Net
Net Pension
Pension Liability 1%
Liability
Increase
as % of (8.10%) in
Covered
Discount
Payroll
Rate
Net Pension
Liability 1%
Decrease
(6.10%) in
Discount
Rate
1,601,909
13,600,836
47,779,781
7,043,396
708,397
955,986
3,610,339
26,164,937
104,254,670
14,623,435
1,253,936
1,875,034
71,690,305
151,782,351
158.86%
33 48 of 113
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GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Exhibit B – Employers’ Allocation of Pension Amounts as of June 30, 2025
Employer Name
Airport
Electric Department
General Fund
School
Waste Water
Water
Total
Employer Name
Airport
Electric Department
General Fund
School
Waste Water
Water
Total
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Changes in
Proportion and
Differences
Between
Employer
Difference
Contributions
Between Projected
and
and Actual
Proportionate
Investment
Share of
Earnings
Contributions
Net Pension
Liability
Employer
Proportion
Difference
Between
Expected and
Actual
Experience
2,513,833
19,383,088
73,364,107
10,502,804
962,227
1,376,156
2.33%
17.93%
67.87%
9.72%
0.89%
1.27%
99,589
767,888
2,906,420
416,083
38,120
54,518
-
234,264
1,806,309
6,836,798
978,756
89,670
128,244
49,435
1,056,595
137,672
18,442
73,105
383,288
2,574,197
10,799,813
1,532,511
146,232
255,867
108,102,215
100.00%
4,282,618
-
10,074,041
1,335,249
15,691,908
Changes in
Assumptions
Changes in
Proportion and
Difference
Differences
Difference
Between
Between Employer
Between
Projected and Contributions and
Expected and
Actual
Proportionate
Actual
Changes in
Investment
Share of
Experience Assumptions
Earnings
Contributions
Total
Deferred
Inflows
Total
Deferred
Outflows
Net Amortization of
Deferred Amounts
from Changes in
Proportion and
Differences
Between Employer
Contributions and
Proportionate
Proportionate
Share of Pension
Share of
Plan Expense
Contributions
Total
-
-
(486,622)
(3,752,123)
(14,201,616)
(2,033,103)
(186,265)
(266,392)
(93,715)
(885,802)
(135,762)
(138,472)
(81,498)
(580,337)
(4,637,925)
(14,201,616)
(2,168,865)
(324,737)
(347,890)
336,237
2,592,577
9,812,786
1,404,798
128,702
184,067
(744)
(763,970)
829,061
(2,878)
(45,814)
(15,655)
335,493
1,828,607
10,641,847
1,401,920
82,888
168,412
-
-
(20,926,121)
(1,335,249)
(22,261,370)
14,459,167
-
14,459,167
34 49 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Exhibit B – Employers’ Allocation of Pension Amounts as of June 30, 2025 (continued)
Employer Name
Airport
Electric Department
General Fund
School
Waste Water
Water
Total
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Beginning Net
FYE 2025
Pension
Employer
Liability
Contributions
Expense
Change in
Deferred
Outflows
Change in
Deferred
Inflows
Ending Net
Pension
Liability
Total
Deferrals
2,939,932
22,032,125
80,699,125
11,443,041
1,251,283
1,657,390
(346,014)
335,493
(1,770,403) 1,828,607
(9,471,497) 10,641,847
(1,128,153) 1,401,920
(144,294)
82,888
(242,652)
168,412
(415,018)
(2,919,959)
(9,917,913)
(1,337,551)
(195,498)
(215,149)
(560)
212,718
1,412,545
123,547
(32,152)
8,155
2,513,833
19,383,088
73,364,107
10,502,804
962,227
1,376,156
(197,049)
(2,063,728)
(3,401,803)
(636,354)
(178,505)
(92,023)
120,022,896
(13,103,013) 14,459,167
(15,001,088)
1,724,253
108,102,215
(6,569,462)
35 50 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Exhibit C – Employers’ Allocation of Recognition of Deferred Outflows and Inflows
as of June 30, 2025
Employer Name
FYE 2026
FYE 2027
FYE 2028
FYE 2029
Airport
Electric Department
General Fund
School
Waste Water
Water
152,096
727,270
5,391,452
663,848
(9,173)
96,465
(165,789)
(1,377,231)
(3,442,216)
(534,148)
(99,150)
(88,112)
(121,105)
(933,786)
(3,534,339)
(505,976)
(46,356)
(66,297)
(62,251)
(479,981)
(1,816,700)
(260,078)
(23,826)
(34,079)
-
-
7,021,958
(5,706,646)
(5,207,859)
(2,676,915)
-
-
Total
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FYE 2030
Thereafter
36 51 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Exhibit D – Employer Contribution History
Employer Name
FYE 2025
FYE 2024
FYE 2023
FYE 2022
FYE 2021
Airport
Electric Department
General Fund
School
Waste Water
Water
346,014
1,770,403
9,471,497
1,128,153
144,294
242,652
307,241
1,728,654
8,391,605
999,560
107,996
181,611
237,931
1,530,804
8,083,438
1,102,512
111,875
188,133
263,244
1,436,777
7,716,789
1,119,077
101,392
184,437
248,981
1,234,417
7,408,254
1,074,750
93,045
177,415
13,103,013
11,716,667
11,254,693
10,821,716
10,236,862
Total
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3752 of 113
Page
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Exhibit E – Summary Status of BERS (Pre-GASB 67 Basis)
The Burlington Employees’ Retirement System became effective as of July 1, 1954, and covers virtually all City
employees, except the majority of teachers who are eligible for the Vermont Teachers Retirement System. The
Vermont Teachers Retirement System is funded by employee contributions of 5% of the teacher’s contract and
the remainder is funded from the Annual State of Vermont budget. Membership in the Burlington Employees
Retirement System (the pension plan) is divided into two classes. Class A consists of members of the Fire and
Police Departments not including clerical employees. Class B represents the remainder of Burlington’s City work
force.
The contribution by the City, excluding operation expenses, consists of two parts. The first part is a normal
contribution to cover the cost of benefits expected to accrue under the Plan during the fiscal year following the
valuation date, reduced by required Class A member contributions equal to 11.0% of compensation and required
Class B member contributions equal to 4.2% of compensation. Effective retroactive to July 1, 2022, employees
shall contribute a percentage such that all employees are contributing 30% (and the City is contributing 70%) of
the total contribution required. For Fiscal 2025, this means that each Class A member contributes no more than
14.0% of base pay, and each Class B member contributes no more than 7.0% of base pay. The second part is a
past service contribution to liquidate unfunded past service costs over a 20-year period in accordance with the
policy adopted by the Retirement Board. Unfunded past service costs are amortized over 20 years and per the
BERS Report Actuarial Valuation totaled $118.9 million at June 30, 2025. The City’s contribution under the plan as
of FY 2025 totaled $13.1 million. The pension is 68.5% funded on June 30, 2025 (pre-GASB 67).
The City’s share of the system is funded partially on an annual funding basis by a special government tax levy. This
retirement portion of the tax rate is determined by the City’s Retirement Board through the yearly budget
preparation process and subject to appropriation in the annual budget approved by the City Council and is not
subject to limit.
Governmental Accounting Standards Board (“GASB”) Statement No. 68, approved on June 25, 2012 (“GASB 68”),
requires governments that provide defined pension benefits to recognize their long-term obligation for pension
benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of
pension benefits. GASB Statement 68 is effective for fiscal years beginning after July 1, 2014.
For further information regarding the City’s pension fund, refer to Note 25 of the Notes to Financial Statements
contained in Appendix A to this Official Statement.
The following table sets forth the historical funding ratios of the Retirement System as of the actuarial valuation
dates listed below including among other things, the unfunded actuarial accrued liability. The schedule below is
pre-GASB 67 per the Actuarial Valuation for June 30, 2025.
Valuation
Date
(June 30)
2019
2020
2021
2022
2023
2024
2025
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Actuarial
Actuarial
Accrued
Value of
Liability
Assets (a)
(AAL)(b)
$202,509,768 $278,151,191
209,861,722 293,171,198
219,377,787 310,788,910
227,048,886 325,818,016
232,271,118 347,249,878
241,858,948 364,944,227
258,547,677 377,495,611
Excess of
Assets over
AAL (a-b)
$(75,641,423)
(83,309,476)
(91,401,123)
(98,769,130)
(114,978,760)
(123,085,279)
(118,947,934)
Funded
Ratio
(a/b)
72.81%
71.58%
70.59%
69.69%
66.89%
66.27%
68.49%
Covered
Payroll
(c)
$51,602,304
52,984,543
53,775,322
55,392,895
65,752,934
67,595,783
72,413,354
Excess as
a % of
Covered
Payroll
-146.59%
-157.23%
-169.97%
-178.31%
-174.86%
-182.09%
-164.26%
38 of 113
Page 53
GASB 68 DISCLOSURE
BURLINGTON EMPLOYEES' RETIREMENT SYSTEM
Schedule of Net Pension Liability for June 30, 2025 (measurement date for June 30, 2026 financial statements) is
as follows:
Total pension liability
$ 377,495,611
Plan fiduciary net position $ (269,393,396)
Net pension liability (asset) $ 108,102,215
Plan fiduciary net position as a percentage of the total pension liability is 71.36%.
The following table sets forth the historical employer contributions.
Year Ended
(June 30)
2019
2020
2021
2022
2023
2024
2025
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Annual Required
Contribution
$9,516,913
9,715,892
10,236,862
10,821,716
11,254,693
11,716,667
13,103,013
Actual
Contribution
$9,516,913
9,715,892
10,236,862
10,821,716
11,254,693
11,716,667
13,103,013
Percentage
Contributed
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
39 of 113
Page 54
Burlington Employees’ Retirement System
OVERVIEW OF GASB 67/68 DISCLOSURE FOR FINANCIAL REPORTING
Robert P. Lessard, ASA, MAAA, Enrolled Actuary
Assistant Vice President, Consulting Actuary
USI Consulting Group
October 19, 2026
©2026 USI Consulting Group | All rights reserved.
Page 55 of 113
Financial Reporting
ACFR: Annual Comprehensive Financial Report
§ ACFR is “a set of U.S. government financial statements
comprising the financial report of a state, municipal or other
governmental entity that complies with the accounting
requirements promulgated by the Governmental Accounting
Standards Board”*
§ Report is published annually
§ Pension is just one item of many covered in the ACFR
§ Different set of rules vs. funding
* Source: Accounting for Governmental and Nonprofit Entities (15th Ed.) (Earl Wilson,
2010); and as amended by GASB 98 (October 2021)
©2026 USI Consulting Group. All rights reserved.
| 1
Page 56 of 113
GASB 67/68 Terminology
§ GASB 67/68 – financial reporting standards for pension plans
• Burlington has separate GASB 67 and 68 reports
§ Balance sheet entry = net pension liability (NPL)
§ NPL = total pension liability – plan fiduciary net position
• NPL is the unfunded actuarial liability determined on an EAN
basis and using market value of assets
• Assets disclosed as of measurement date, though liability does
not have the same requirement
§ Also calculates an annual “pension expense” amount that is
recorded in the financials
©2026 USI Consulting Group. All rights reserved.
| 2
Page 57 of 113
GASB 67/68 Exhibits
§ Overview exhibit is not required by GASB but represents a one-page
reconciliation of the fiscal year
§ Additional disclosure items
• ADEC vs. actual employer contribution (10 years)
• NPL, including annual reconciliation (10 years)
• +/- 1% discount rate sensitivity for NPL measurement
• Target asset allocation and expected rate of return
§ Recognition of gains/losses, assumption changes and plan
amendments
§ Pension expense much more volatile than ADEC
©2026 USI Consulting Group. All rights reserved.
| 3
Page 58 of 113
Thank you!
This information is provided solely for educational purposes and is not to be construed as investment, legal or tax advice.
Prior to acting on this information, we recommend that you seek independent advice specific to your situation from a
qualified investment/legal/tax professional.
©2026 USI Consulting Group. All rights reserved.
Page 59 of 113
Quarterly
Investment
Review
Third Quarter 2026
City of
Burlington
Employees
Retirement
This information is intended for the exclusive use of clients or prospective clients (the “recipient”) of Wealthspire Institutional, a division of Wealthspire inclusive of
Wealthspire Institutional, LLC and Wealthspire Retirement, LLC dba Wealthspire Retirement Advisory. The information contained herein is confidential and the
dissemination or distribution to any other person without the prior approval of Wealthspire Institutional is strictly prohibited. Information has been obtained from
sources believed to be reliable, though not independently verified and should not be regarded as a complete analysis of these subjects. Any forecasts are
hypothetical and represent future expectations. Any opinions expressed are subject to change without notice. The opinions and analysis expressed herein are
based on Wealthspire Institutional research and professional experience and are expressed as of the date of this report. Please consult with your advisor, attorney
and accountant, as appropriate, regarding specific advice. Past performance does not indicate future performance and there is risk of loss. This document is for
informational purposes only and is not an offer/recommendation to buy any security or instrument. Investment advisory services offered through Wealthspire
Institutional, LLC, Wealthspire Retirement, LLC, or Wealthspire Advisors LLC, each separately registered investment advisers.
Page 60 of 113 1
Table of Contents
01
Fiduciary Governance Calendar
02
Capital Markets Overview
03
Portfolio and Manager Review
Page 61 of 113 2
Fiduciary Governance Calendar
Page 62 of 113 3
Fiduciary Governance Calendar
The fiduciary governance calendar is designed to create a disciplined framework around governance, which helps ensure
that over the course of a calendar year key fiduciary obligations and responsibilities are being met.
• Investment Review
• Investment Policy Review
• Fiduciary Training
• Investment Review
• Capital Markets
Assumptions
• Asset Allocation Review
Q1
Q2
Governance
Fee Focus
Q4
Asset
Allocation
Focus
Q3
Municipal
Landscape
• Investment Review
• Portfolio Expense and
Liquidity Review*
• Investment Review
• Municipal Landscape Update
• Annual Actuarial Review
Fiduciary Trail®
An evidence trail, documenting oversight of an organization’s investment program, designed to protect fiduciaries and stand up to scrutiny.
Fiduciary Lockbox®
Our Fiduciary Lockbox online portal is structured to record activities and store all documentation related to efforts to support your fiduciary role in one central
electronic location.
*Liquidity analysis is provided only for portfolios with marketable alternatives and/or private equity.
Page 63 of 113 4
Actuarial Review
City of Burlington Employees Retirement System
6/30/2025
6/30/2024
Actuarial Value of Assets
258,547,677
241,858,948
Total Accrued Liability
377,495,611
364,944,227
Funded Ratio
68.5%
66.3%
Actuarial Return Assumption
7.10%
7.10%
Source: USI Consulting Group, Actuarial Valuation Report, as of 6/30/2025
Page 64 of 113 5
Public Pension Plans: Trends in Funded Status
• Better capital market performance increased the estimated aggregate funded ratio for statewide and municipal plans
to 85.0% as of June 30, 2026, according to the Equable Institute Annual Report State of Pensions 2025. This
highlights the fourth straight year of improvement in funded statuses.
Source: The Equable Institute Annual Report State of Pensions 2026. 253 statewide and municipally managed retirement systems holding at least $1
billion in accrued liabilities.
Page 65 of 113 6
Public Pension Plans: Trends in Investment Assumptions
• Public pension plans have gradually reduced their investment return assumptions.
• All else being equal, a lower investment return assumption results in higher actuarial liability and Actuarially
Determined Employer Contribution (ADEC), and a lower funded ratio.
Source: The Equable Institute Annual Report State of Pensions 2026. 253 statewide and municipally managed retirement systems holding at least $1
billion in accrued liabilities.
Page 66 of 113 7
Public Pension Plans: Trends in Investment Assumptions
• The distribution of assumed rates of return across plans going back 20 years highlights the 1% decline in the median
return assumption from 8% in 2006 to 7% in 2026.
Source: The Equable Institute Annual Report State of Pensions 2026. 253 statewide and municipally managed retirement systems holding at least $1
billion in accrued liabilities.
Page 67 of 113 8
Public Pension Plans: Asset Allocation Trends
• Since 2001, the allocation to “alternatives” has
increased while the allocation to traditional
assets such as fixed income and equities steadily
declined.
• As the yield on fixed income declined over the
same period, pension plans turned to alternative
investments for higher return profiles to help
meet or exceed the plan’s investment return
assumption.
• Public pension plans are reassessing their current
allocations and planned future weightings to
public fixed income investments, reflecting both
the rise in bond yields from historic lows and the
adoption of lower investment return assumptions.
Source: The Equable Institute Annual Report State of Pensions 2026. 253 statewide and municipally managed retirement systems holding at least $1
billion in accrued liabilities.
Page 68 of 113 9
Capital Markets Overview
Page 69 of 11310
Market Themes
Return Expectations for Fixed Income are Higher
Bond markets experienced extreme interest rate moves during the third quarter,
against a backdrop of sticky inflation, resilient economic growth, government
deficit concerns, and shifting monetary policy expectations. The 10-year
Treasury yield touched the highest level in over 20 years and now sits closer to
the long-term average after decades of low interest rates. While price movement
has been painful in the near-term, current starting yields, a reasonably strong
indicator of future fixed income performance, put the long-term outlook for fixed
income returns at a favorable level.
The Coupon Cushion is Supportive
The Federal Reserve hiked interest rates in September, the first time since 2023.
With yields higher, the risk/reward trade off in fixed income is skewed positive.
Due to the increased cushion from income, the Bloomberg Agg can withstand an
approximately 100 basis point move higher in rates and still “break even” over a
12-month period. For context, this cushion was only ~25 basis points at the start
of 2022. Conversely, there is meaningful upside potential should rates move lower
from here.
18
14%
Bloomberg Agg Subsequent 10-year Return
Yield and Subsequent Return (%)
16
Avg Treasury Yield
14
12
10
8
6
5.3
Avg 10-Year Yield: 5.8%
4
2
0
Estimated Potential 12m Return of Bloomberg Agg
U.S. 10-Year Treasury Yield
12%
10%
8%
80
85
90
95
00
05
10
15
20
Sources: FactSet, Morningstar Direct, Wealthspire. For the period January 1, 1976 to
September 30, 2026.
25
5.6%
6%
8.4%
5.6%
5.6%
5.6%
4%
2%
5.8%
5.6%
2.7%
-2%
-4%
-6%
5.6%
2.9%
0%
-8%
75
Core bonds can withstand an
almost 100 bps move higher in
rates and still “break even” yet
have favorable upside potential
should rates fall.
11.3%
-0.2%
-2.9%
-5.8%
Estimated Duration Impact
Estimated Yield Impact
Potential Return
-100 bps
-50 bps
no change
+50 bps
+100 bps
Interest Rate Move
Sources: FactSet, Bloomberg. As of September 30, 2026.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 70 of 11311
Market Themes
Fundamentals Remain Supportive
The economic backdrop remains robust as GDP growth for Q2 2026 was
revised higher to 2.2%. Much of the strength can be attributed to capex and
other AI related spending, but consumer spending also remains strong,
supported in large part by a stable labor market. Despite large debt issuance,
corporate fundamentals remain strong as profit margins and earnings are at
record levels, while leverage remains manageable.
S&P 500 Profit Margin
16
Investors dislike uncertainty. Notably, the anticipation of uncertainty leading into
an election can create volatility and cloud the air of whatever else is driving
markets. The flip side is that the eventual election results bring clarity that has
historically supported market performance. Since 1934, the 12 months following
every midterm (all 23) have been positive for U.S. equities, with an average return
of 21%.
Corporate profit
margins sit near multi
decade highs.
130
125
12
10
115
8
6
4
2
0
105
100
Average return
pre/post midterm
90
6
2
1991
1993
1994
1996
1997
1999
2000
2002
2003
2005
2006
2008
2009
2011
2012
2014
2015
2017
2018
2020
2021
2023
2024
2026
1
Source: Bloomberg. As of September 30, 2026.
+10
+11
+12
+8
+9
+5
+6
+7
+4
+1
+2
+3
-1
Election
3
-3
-2
Leverage ratios
remain muted despite
massive issuance
from hyperscalers
-5
-4
80
4
-12
-11
-10
-9
-8
-7
-6
85
5
Leverage Ratio
110
95
S&P 500 Net Debt to EBITDA
0
+21%
120
Growth of $100
Profit Margin
14
Midterms Bring Volatility but Potential Positive Results
Months Pre/Post Election
Large-cap U.S. Equity, indexed to 100 at each midterm election, 1934-2022 (23 midterms). Dark
blue line average return, band is middle half of outcomes (quartile 1 to quartile 3).
Sources: Wealthspire analysis. Election dates and outcomes from the GPO Official
Congressional Directory, U.S. Senate Historical Office and the American Presidency Project
(UCSB). Returns are monthly total returns measured relative to Election Day; November of the
election year is the first post-election month. Return stream is a spliced long-history proxy:
Ibbotson SBBI U.S. Large Cap Total Return, February 1926 through December 1987, and S&P
500 Total Return, January 1988 through December 2025. Non-election years are calendar
years in which neither a midterm nor a general election took place.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 71 of 11312
Asset Class Returns
36
33
YTD
30
32.9
QTD
27
23.4
24
21
Total Returns (%)
18
15
12.3
12
16.2
13.7
10.3
9
7.9
6
3
-3
1.8
0.1
0
-3.2 -2.1
-3.6 -2.5
-3.5 -2.9
-6
-1.7
-1.8
-1.7
-5.5
-7.7
-9
-12
TIPS
Municipals 5- U.S. Core Bond
Year
High Yield
Municipals
High Yield
-0.4
Foreign Bond U.S Large Cap U.S. Small Cap International
Developed
-1.3
-1.5
-1.4
-6.1
-7.2
-7.0
U.S. Long
Duration
0.8
7.2
6.2
Emerging
Markets
U.S. Equity
REITs
Real Assets
Commodities Hedge Funds*
Source: Morningstar Direct. As of September 30, 2026. *Hedge fund returns as of August 31, 2026.
Fixed Income (3Q 2026)
- Fixed income markets struggled as interest rates
moved sharply higher during the quarter. The
Bloomberg Agg experienced one of its worst quarterly
returns in quite some time.
- Corporate high yield fell modestly during the quarter
as spreads widened. Concerns of rising borrowing costs
were a main driver of the move lower.
- Long-dated rates experienced a meaningful move
higher during the quarter, nearing multi-decade highs.
This was a significant headwind for long duration bonds.
Equity (3Q 2026)
Real Asset / Alternatives (3Q 2026)
- Small-cap U.S. stocks declined during the quarter,
pressured by concerns about rising borrowing costs.
+ Commodities posted a double-digit gain during the
quarter. On going geopolitical conflict in the Middle East
continues to create volatility in the energy markets and
oil prices moved sharply higher in the quarter.
+ U.S. large cap equities were modestly positive during
the third quarter. Strength in AI related names, which are
viewed as less rate sensitive, helped support the large
cap space.
+/- Non-U.S. markets were mixed, generating essentially
flat returns for the period. Developed markets were
modestly positive while weakness in South Korea was a
headwind for emerging markets.
- The more interest rates sensitive REIT sector fell as
interest rates moved higher during the quarter.
- Real assets fell modestly in the quarter as commodity
related areas held up well, but rate sensitive
components were negatively impacted by higher rates.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 72 of 11313
Fixed Income Market Update
U.S. Treasury Yield Curve
Rates jumped during the third quarter and the U.S. Treasury curve
steepened. The Fed hiked rates in September, putting upward pressure
on the short end of the curve. While long-end rates moved higher as
investors digested several economic crosscurrents including favorable
economic growth, government debt levels, and sticky inflation.
Corporate Credit Spreads
Risk-off sentiment late in the quarter pushed corporate credit spreads
wider. Lower quality segments were more impacted than higher quality
areas of the market as rising rates increased concerns about the
potential impact on future borrowing costs.
6.0
500
5.5
5.29
400
Spreads (bps)
5.0
4.44
4.5
4.14
9/30/2026 10Yr Avg
80 bps 110 bps
311 bps 370 bps
1,000
300
750
200
500
100
250
4.16
4.0
3.5
9/30/26
3.60
6/30/26
Bloomberg U.S. Inv. Grade Corp Index (LHS)
9/30/25
3.0
IG
HY
0
5
10
15
20
U.S. Treasury Maturity (yrs)
Source: FactSet. As of September 30, 2026.
25
Bloomberg U.S. Corp High Yield Index (RHS)
30
0
6/17
12/17
6/18
12/18
6/19
12/19
6/20
12/20
6/21
12/21
6/22
12/22
6/23
12/23
6/24
12/24
6/25
12/25
6/26
Yield (%)
4.88
1,250
0
Source: FactSet. As of September 30, 2026.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 73 of 11314
Equity Market Update
U.S. Equities – Returns by Sector (3Q 2026)
U.S. large cap equities, as marked by the S&P 500, produced a modest gain in the third quarter. Corporate fundamentals remain resilient, helping to
provide a solid foundation for the space. Earnings growth and AI related technology were key drivers. Microsoft rose over 30% during the quarter, while
Apple, NVIDIA and Meta also produced double digit gains. The energy sector rose over 15%, buoyed by higher oil prices. More interest rates sensitive
areas of the market, such as utilities and real estate declined during the quarter as interest rates jumped higher.
YTD
40.3%
QTD
28.4%
12.7%
5.3%
2.3%
-5.7% -5.6%
-12.4%
S&P 500
Utilities
Real Estate
8.8%
17.2%
8.5% 6.5%10.2%
7.2%
6.0%
-0.1%-1.3%
-2.8%
-1.9%
-9.7%
Materials
IT
Industrials Health Care
Financials
Energy
Source: Morningstar Direct. As of September 30, 2026.
Cons.
Staples
3.6%4.5%
-5.1%-5.8%
Cons. Disc.
Comm.
Services
Market Capitalization, Style, and Select Country Performance (3Q 2026)
Global equity markets were mixed during the quarter. U.S. large cap held up reasonably well amidst the volatility, supported by AI related earnings
strength. However, small-cap U.S. was negatively impacted by the shift higher in interest rates. Abroad, small cap was more resilient, and value
outpaced growth. International developed saw modest gains, while emerging markets slightly declined. Weakness in South Korea weighed on emerging
market returns as the AI chip trade paused following strength earlier in the year.
-0.9%
Int’l Developed
Brazil
-9.6%
S.Korea
Value
Growth
Small
Large
Value
Growth
Small
Large
U.S.
-3.6%
-5.7%
-7.2%
Growth
-2.5%
Source: Morningstar Direct. As of September 30, 2026.
3.1%
0.2%
Value
2.9%
Small
0.4%
Large
2.3%
Japan
0.5%
Switz.
1.8%
8.2%
6.0%
4.3%
Emerging Markets
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 74 of 11315
Real Assets Market Update
Commodity Performance (3Q 2026)
Geopolitical unrest and uncertainty about conflict resolution in the
Middle East continues to fuel volatility in the commodity markets.
The energy sub-component rose over 30% as brent crude oil
prices flared above $120 per barrel late in the quarter.
100
YTD
REIT Sector Performance (3Q 2026)
REITs have performed well year-to-date but gave back some of
the returns during the third quarter. The sharp rise in interest
rates, particularly on the long-end of the yield curve, negatively
impacted the real estate market.
YTD
QTD
Diversified
86.3
Health Care
Total Return (%)
20
11.2
4.3
0
-20
Lodging/Resorts
12.6
Industrial
2.7
Infrastructure
-5.1
Timber
-3.8
-10.5
Industrial
Metals
Precious
Metals
Source: Morningstar Direct. As of September 30, 2026.
Agriculture
10.0
-8.9
37.6
-3.6
-2.9
5.3
-10.6
-3.3
-15.9
-17.8
Office
Energy
6.9
-10.5
Self Storage
17.9
18.9
-1.1
Residential
34.4
28.0
-3.9
Retail
40
23.4
-7.9
Data Centers
60
5.4
-9.4
Specialty
80
QTD
-8.7
-40
2.7
-20
0
Total Return (%)
20
40
60
Source: Morningstar Direct. As of September 30, 2026.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 75 of 11316
The Case for Diversification
2016
2017
U.S. Small Cap
21.3
Emerging Markets
Equity
37.3
2018
2019
2020
2021
2022
High Yield Municipals
4.8
U.S. Large Cap
31.4
U.S. Large Cap
21.0
U.S. Equity REITs
41.3
Commodities
16.1
High Yield
17.1
International
Developed Equity
25.0
Cash
1.8
U.S. Mid Cap
30.5
U.S. Small Cap
20.0
Commodities
27.1
U.S. Mid Cap
13.8
U.S. Large Cap
21.7
Municipals 5-Year
1.7
U.S. Equity REITs
28.7
Emerging Markets
Equity
18.3
U.S. Large Cap
12.1
U.S. Mid Cap
18.5
U.S. Core Bond
0.0
U.S. Small Cap
25.5
Commodities
11.8
Balanced
15.4
TIPS
-1.3
Emerging Markets
Equity
11.2
U.S. Small Cap
14.6
U.S. Equity REITs
8.6
2024
2025
2026
10 Years (Ann)
U.S. Large Cap
26.5
U.S. Large Cap
24.5
Emerging Markets
Equity
33.6
Commodities
32.9
U.S. Large Cap
15.0
Cash
1.5
International
Developed Equity
18.2
U.S. Mid Cap
15.3
International
Developed Equity
31.2
Emerging Markets
Equity
23.4
U.S. Mid Cap
11.2
U.S. Large Cap
26.5
Hedge Funds
-5.3
U.S. Mid Cap
17.2
U.S. Small Cap
11.5
U.S. Large Cap
17.4
U.S. Small Cap
13.7
U.S. Small Cap
9.8
U.S. Mid Cap
17.1
U.S. Mid Cap
22.6
Municipals 5-Year
-5.3
U.S. Small Cap
16.9
Balanced
10.8
Balanced
16.2
U.S. Large Cap
12.3
Emerging Markets
Equity
9.1
International
Developed Equity
22.0
Balanced
13.5
U.S. Small Cap
14.8
High Yield
-11.2
Balanced
15.4
Hedge Funds
9.1
Commodities
15.8
U.S. Mid Cap
11.8
International
Developed Equity
9.1
High Yield
-2.1
Balanced
19.4
TIPS
11.0
International
Developed Equity
11.3
TIPS
-11.8
High Yield
13.4
High Yield
8.2
U.S. Small Cap
12.8
International
Developed Equity
10.3
Balanced
8.0
High Yield Municipals
9.7
U.S. Equity REITs
-4.0
Emerging Markets
Equity
18.4
Hedge Funds
10.9
Balanced
10.2
U.S. Core Bond
-13.0
U.S. Equity REITs
11.4
Emerging Markets
Equity
7.5
U.S. Mid Cap
10.6
U.S. Equity REITs
7.9
Commodities
7.9
Balanced
5.9
U.S. Equity REITs
8.7
Hedge Funds
-4.0
High Yield
14.3
International
Developed Equity
7.8
Emerging Markets
Equity
9.8
High Yield Municipals
6.3
Hedge Funds
9.2
Hedge Funds
7.2
Hedge Funds
5.7
TIPS
4.7
Hedge Funds
7.8
U.S. Large Cap
-4.8
High Yield Municipals
10.7
U.S. Core Bond
7.5
Hedge Funds
6.2
International
Developed Equity
-14.5
High Yield Municipals
9.2
Commodities
5.4
High Yield
8.6
Balanced
6.6
U.S. Equity REITs
5.4
High Yield Municipals
3.0
High Yield
7.5
Balanced
-5.5
U.S. Core Bond
8.7
High Yield
7.1
TIPS
6.0
Balanced
-16.0
Hedge Funds
6.1
Cash
5.3
U.S. Core Bond
7.3
Cash
2.8
High Yield
5.1
U.S. Core Bond
2.6
U.S. Core Bond
3.5
U.S. Mid Cap
-9.1
TIPS
8.4
High Yield Municipals
4.9
High Yield
5.3
U.S. Mid Cap
-17.3
U.S. Core Bond
5.5
U.S. Equity REITs
4.9
TIPS
7.0
High Yield
0.1
High Yield Municipals
3.2
International
Developed Equity
1.0
Municipals 5-Year
3.1
U.S. Small Cap
-11.0
Hedge Funds
8.4
Municipals 5-Year
4.3
Municipals 5-Year
0.3
U.S. Large Cap
-19.1
Cash
5.1
International
Developed Equity
3.8
Municipals 5-Year
5.0
High Yield Municipals
-1.7
Cash
2.4
Hedge Funds
0.5
TIPS
3.0
Commodities
-11.2
Commodities
7.7
Cash
0.5
Cash
0.0
Emerging Markets
Equity
-20.1
Municipals 5-Year
4.3
TIPS
1.8
Cash
4.3
TIPS
-2.1
TIPS
2.1
Cash
0.3
Commodities
1.7
International
Developed Equity
-13.8
Municipals 5-Year
5.4
Commodities
-3.1
U.S. Core Bond
-1.5
U.S. Small Cap
-20.4
TIPS
3.9
U.S. Core Bond
1.3
High Yield Municipals
2.5
Municipals 5-Year
-2.5
Municipals 5-Year
1.4
Municipals 5-Year
-0.4
Cash
0.8
Emerging Markets
Equity
-14.6
Cash
2.2
U.S. Equity REITs
-5.1
Emerging Markets
Equity
-2.5
U.S. Equity REITs
-24.9
Commodities
-7.9
Municipals 5-Year
1.2
U.S. Equity REITs
2.3
U.S. Core Bond
-2.9
U.S. Core Bond
1.1
High Yield Municipals High Yield Municipals
7.8
-13.1
2023
Sources: Morningstar, FactSet. As of September 30, 2026. *Periods greater than one year are annualized. Total returns in U.S. dollars. Hedge Funds as of August 31, 2026.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 76 of 11317
Financial Markets Performance
Total Return as of September 30, 2026
Periods greater than one year are annualized
All returns are in U.S. dollar terms
Global Fixed Income Markets
QTD
YTD
1YR
3YR
5YR
7YR
10YR
15YR
Bloomberg 1-3-Month T-Bill
Bloomberg U.S. TIPS
Bloomberg Municipal Bond (5 Year)
Bloomberg High Yield Municipal Bond
Bloomberg U.S. Aggregate
Bloomberg U.S. Corporate High Yield
Bloomberg Global Aggregate ex-U.S. Hedged
Bloomberg Global Aggregate ex-U.S. Unhedged
Bloomberg U.S. Long Gov / Credit
0.9%
-3.2%
-3.6%
-5.5%
-3.5%
-1.8%
-1.8%
-1.6%
-7.7%
2.8%
-2.1%
-2.5%
-1.7%
-2.9%
0.1%
-0.2%
-2.5%
-7.0%
3.8%
-2.0%
-2.0%
-0.6%
-1.8%
1.4%
0.3%
-3.0%
-7.1%
4.6%
3.8%
2.9%
5.4%
4.1%
8.0%
4.3%
3.5%
2.5%
3.8%
0.0%
0.5%
0.6%
-0.6%
3.6%
1.0%
-2.9%
-5.4%
2.8%
2.1%
1.1%
2.1%
0.4%
4.6%
0.9%
-1.5%
-2.6%
2.4%
2.1%
1.4%
3.2%
1.1%
5.1%
1.9%
-0.9%
-0.2%
1.6%
2.1%
1.8%
4.6%
1.8%
6.1%
2.9%
-0.4%
1.9%
Global Equity Markets
QTD
YTD
1YR
3YR
5YR
7YR
10YR
15YR
S&P 500
Dow Jones Industrial Average
NASDAQ Composite
Russell 3000
Russell 1000
Russell 1000 Growth
Russell 1000 Value
Russell Mid Cap
Russell Mid Cap Growth
Russell Mid Cap Value
Russell 2000
Russell 2000 Growth
Russell 2000 Value
MSCI ACWI
MSCI ACWI ex. U.S.
MSCI EAFE
MSCI EAFE Growth
MSCI EAFE Value
MSCI EAFE Small Cap
MSCI Emerging Markets
2.3%
-2.3%
2.6%
1.4%
1.8%
0.9%
2.6%
-3.0%
-5.8%
-2.0%
-7.2%
-9.4%
-4.9%
1.6%
0.5%
0.8%
-2.5%
4.3%
2.9%
-0.4%
12.7%
7.2%
16.1%
12.4%
12.3%
6.3%
19.3%
11.8%
1.0%
15.3%
13.7%
10.7%
17.0%
13.0%
14.2%
10.3%
6.4%
14.3%
10.8%
23.4%
15.7%
11.5%
19.2%
15.1%
15.0%
7.5%
23.8%
12.0%
-2.7%
16.9%
16.2%
12.1%
20.8%
16.8%
20.0%
15.7%
8.4%
23.3%
13.7%
29.2%
22.9%
17.0%
27.5%
22.3%
22.5%
24.3%
20.1%
17.2%
15.4%
17.5%
17.7%
17.5%
17.9%
21.7%
20.5%
18.4%
13.9%
23.0%
18.2%
24.1%
13.8%
10.6%
14.0%
12.6%
13.0%
13.7%
11.9%
8.0%
4.9%
9.3%
6.3%
4.7%
7.8%
11.6%
9.6%
9.3%
4.3%
14.3%
5.8%
8.9%
16.2%
11.7%
19.8%
15.5%
15.8%
18.7%
12.3%
11.4%
10.7%
10.8%
10.5%
9.9%
10.7%
13.5%
10.5%
10.2%
7.8%
12.3%
9.0%
10.4%
15.3%
13.1%
18.6%
14.7%
15.0%
18.2%
11.4%
11.2%
11.9%
9.9%
9.8%
9.9%
9.4%
12.4%
9.2%
9.1%
7.8%
10.1%
8.1%
9.1%
15.7%
13.3%
18.6%
15.3%
15.5%
17.6%
13.0%
13.0%
13.2%
12.4%
11.8%
11.9%
11.4%
11.8%
8.2%
8.5%
8.1%
8.7%
9.0%
7.0%
Alternatives
QTD
YTD
1YR
3YR
5YR
7YR
10YR
15YR
FTSE NAREIT All Equity REITs
S&P Real Assets
FTSE EPRA NAREIT Developed
FTSE EPRA NAREIT Developed ex U.S.
Bloomberg Commodity Total Return
HFRI Fund of Funds Composite*
HFRI Asset Weighted Composite*
-6.1%
-1.5%
-5.9%
-5.6%
16.2%
-1.3%
0.7%
7.9%
6.2%
3.7%
-7.1%
32.9%
7.2%
6.9%
5.6%
7.8%
3.2%
-5.8%
40.6%
12.5%
11.9%
11.0%
10.7%
10.6%
7.5%
15.6%
9.9%
9.0%
2.4%
4.9%
1.6%
-2.1%
11.3%
5.5%
6.2%
3.8%
5.5%
2.3%
-0.8%
12.1%
6.6%
6.0%
5.4%
5.4%
3.5%
1.4%
7.9%
5.7%
5.5%
8.8%
5.6%
6.7%
4.3%
1.8%
4.6%
4.9%
Sources: Morningstar, FactSet. As of September 30, 2026. *HFRI indexes as of August 31, 2026.
See disclosures for list of indices representing each asset class. Past performance does not indicate future performance and there is a possibility of a loss. Indices cannot be invested in
directly. Please refer to Material Risk disclosure for important information associated with market volatility.
Page 77 of 11318
Portfolio and Manager Review
Page 78 of 11319
Asset Allocation
Total Plan
Total Plan
As of September 30, 2026
Asset
Allocation
($)
Asset
Allocation
(%)
Target
Allocation
(%)
Differences
(%)
309,766,725
100.0
100.0
0.0
Pension Benefits Payable to the City
-10,387,055
-3.4
0.0
-3.4
Total Invested Assets
320,153,780
103.4
100.0
3.4
Short Term Liquidity
6,294,501
2.0
0.0
2.0
331,086
0.1
0.0
0.1
Key Bank Cash Portfolio
First American Govt Oblig Fund Z
5,963,415
1.9
0.0
1.9
Fixed Income
82,302,228
26.6
27.0
-0.4
JIC Core Bond Fund I
60,526,580
19.5
20.0
-0.5
BlackRock Strategic Income Opportunities K
21,775,648
7.0
7.0
0.0
Equity
218,072,990
70.4
68.5
1.9
Domestic Equity
137,040,069
44.2
43.0
1.2
BNYM Mellon DB NSL Stock Index Fund
107,097,867
34.6
33.0
1.6
BNYM Mellon DB SL SMID Cap Stock Index Fund
29,942,202
9.7
10.0
-0.3
International Equity
80,942,033
26.1
25.5
0.6
BNYM Mellon DB NSL International Stock Index Fund
57,273,391
18.5
18.0
0.5
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
23,668,642
7.6
7.5
0.1
Private Equity
90,889
0.0
0.0
0.0
Hamilton Lane VII A
25,601
0.0
-
-
Hamilton Lane VII B
65,288
0.0
-
-
Real Assets
13,484,060
4.4
4.5
-0.1
UBS Trumbull Property Fund
7,654,313
2.5
3.0
-0.5
DWS RREEF Real Assets R6
5,829,747
1.9
1.5
0.4
Valuations data as of:
Hamilton Lane VII - 6/30/2026
UBS Trumbull Property Fund - 6/30/2026
All private equity and real estate assets are adjusted for any subsequent capital activity.
Investments with a zero balance were held in the portfolio during the reporting period and will be removed once they no longer impact portfolio performance.
Asset Allocation weightings may not add up to 100% due to rounding.
Page 79 of 11320
Reconciliation of BERS Pension Benefits Payable to the City, FYE26
Funds Received
by the City
for BERS*
Expenses & Benefits
Paid by the City
for BERS*
Misc.
Adjustment*
Monthly Amount
due To/(From)
BERS
Beginning Balance, 7/1/2025
Balance Due
To/(From)
BERS
(5,737,200)
July
366,642
(2,067,536)
(1,700,894)
(7,438,094)
August
412,171
(2,167,097)
(1,754,926)
(3,455,820)
September
931,747
(2,102,352)
(1,164,452)
(4,620,272)
October
2,277,565
(4,397,794)
(2,120,229)
(6,740,502)
November
280,319
(102,583)
(4,719)
173,017
(6,567,485)
December
1,054,852
(2,287,198)
(52)
(1,232,397)
(7,799,882)
January
439,977
(2,202,278)
(1,762,301)
(9,562,183)
February
8,655,288
(2,356,695)
6,298,594
(3,263,589)
March
2,115,798
(2,571,553)
(455,755)
(3,719,344)
April
1,518,942
(2,197,077)
(678,135)
(4,397,479)
May
1,428,005
(2,373,460)
(945,454)
(5,342,933)
FYE June 2026
1,701,878
(2,167,838)
121,228
(344,732)
(5,687,664)
21,183,186
(26,993,461)
122,610
(5,687,664)
(5,687,664)
Total
Actuarially Determined Employer Contribution (FYE 2026):
6,153
Payment
From BERS to
the City
5,737,200
5,737,200
15,478,508
Administrative Fees:
648,000
Additional Employer Contribution per union contracts:
367,840
Total required from the City Depts to BERS:
16,494,348
Remaining Balance until Fully Funded:
(4,688,838)
Note: COB Department changes will be billed and booked before Jan 1, 2026
Amounts are provided by the City of Burlington, VT on a monthly basis. The actual amounts recorded by the City each month may vary from the information shown above as additional
funds are received by the City and allocated to previous periods. This exhibit does not reflect adjustments to previous periods, however the cumulative impact of any changes is reflecting
in the "Balance Due To/(From) BERS".
Page 80 of 11321
Reconciliation of BERS Pension Benefits Payable to the City, FYE27
Funds Received
by the City
for BERS*
Expenses & Benefits
Paid by the City
for BERS*
Misc.
Adjustment*
Monthly Amount
due To/(From)
BERS
Balance Due
To/(From)
BERS
Payment
From BERS to
the City
-
Beginning Balance, 7/1/2026
July
370,563
(2,217,103)
(1,846,539)
(1,846,539)
August
973,344
(2,231,321)
(1,257,977)
(3,104,516)
September
715,136
(2,310,011)
(1,594,875)
(4,699,391)
2,059,043
(6,758,434)
(4,699,391)
(4,699,391)
October
November
December
January
February
March
April
May
FYE June 2027
Total
Actuarially Determined Employer Contribution (FYE 2026):
14,412,559
City GF Class A
$7,489,916
City GF Class B
$2,301,254
Airport Class B
$409,562
Water Resources Class B
$493,867
Traffic Class B
$131,271
CEDO Class B
$278,241
Marketplace Class B
$1,943,710
Burlington School District
$1,319,844
625,644
BFFA
$506,364
BPOA
$119,280
Employee Contributions:
-
=A
$44,894
Burlington Electric
Additional Employer Contribution per union contracts:
-
5,515,459
Class A
$2,315,845
Class B
$1,770,455
Burlington Electric
$722,304
Burlington School District
$706,855
=B
=C
Total required from the City Depts to BERS:
20,553,662
=A+B+C
Remaining Balance until Fully Funded:
18,494,619
= "Total required from the City Depts to BERS" - "Funds Received by the City for BERS*" Total
Amounts are provided by the City of Burlington, VT on a monthly basis. The actual amounts recorded by the City each month may vary from the information shown above as additional funds are received by the City and allocated
to previous periods. This exhibit does not reflect adjustments to previous periods, however the cumulative impact of any change is reflecting in the "Balance Due To/(From) BERS".
Page 81 of 11322
Asset Allocation
Total Invested Assets
Total Invested Assets
Short Term Liquidity
Key Bank Cash Portfolio
As of September 30, 2026
Asset
Allocation
($)
Asset
Allocation
(%)
Target
Allocation
(%)
Differences
(%)
320,153,780
100.0
100.0
0.0
6,294,501
2.0
0.0
2.0
0.1
331,086
0.1
0.0
First American Govt Oblig Fund Z
5,963,415
1.9
0.0
1.9
Fixed Income
82,302,228
25.7
27.0
-1.3
JIC Core Bond Fund I
60,526,580
18.9
20.0
-1.1
BlackRock Strategic Income Opportunities K
21,775,648
6.8
7.0
-0.2
Equity
218,072,990
68.1
68.5
-0.4
Domestic Equity
137,040,069
42.8
43.0
-0.2
BNYM Mellon DB NSL Stock Index Fund
107,097,867
33.5
33.0
0.5
-0.6
BNYM Mellon DB SL SMID Cap Stock Index Fund
29,942,202
9.4
10.0
International Equity
80,942,033
25.3
25.5
-0.2
BNYM Mellon DB NSL International Stock Index Fund
57,273,391
17.9
18.0
-0.1
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
23,668,642
7.4
7.5
-0.1
Private Equity
90,889
0.0
0.0
0.0
Hamilton Lane VII A
25,601
0.0
-
-
65,288
0.0
-
-
Real Assets
Hamilton Lane VII B
13,484,060
4.2
4.5
-0.3
UBS Trumbull Property Fund
7,654,313
2.4
3.0
-0.6
DWS RREEF Real Assets R6
5,829,747
1.8
1.5
0.3
Valuations data as of:
Hamilton Lane VII - 6/30/2026
UBS Trumbull Property Fund - 6/30/2026
All private equity and real estate assets are adjusted for any subsequent capital activity.
Investments with a zero balance were held in the portfolio during the reporting period and will be removed once they no longer impact portfolio performance.
Asset Allocation weightings may not add up to 100% due to rounding.
Page 82 of 11323
Recent Portfolio Activities
Quarter
4Q2026 (through 10/14/2026)
3Q 2026
Cash Flow
• October 5, 2026: $23,553.74 UBS Trumbull Property Fund LP
redemption.
• July 7, 2026: $46,139.87 UBS Trumbull Property Fund LP redemption.
• July 30, 2026: $57,172.93 UBS Trumbull Property Fund LP distribution.
• June 15, 2026: Raising cash for upcoming repayment to the City for
pension benefits.
2Q 2026
• May 20, 2026: Rebalancing to strategic targets completed in May
2026.
• April 6, 2026: $92,320.64 UBS Trumbull Property Fund LP redemption.
• April 28, 2026: $58,801.13 UBS Trumbull Property Fund LP distribution.
1Q 2026
4Q 2025
• January 28, 2026: $57,549.45 UBS Trumbull Property Fund LP
distribution.
• October 3, 2025: $22,939.07 UBS Trumbull Property Fund LP
redemption.
• October 27, 2025: $57,768.34 UBS Trumbull Property Fund LP
distribution.
• July 7, 2025: $3,689,564 cash raised to reimburse the General Fund.
3Q 2025
• July 25, 2025: $57,987.44 UBS Trumbull Property Fund LP distribution.
• August 19,2025: $1,031,535.48 invested excess cash.
• April 14, 2025: Funded DWS RREEF Real Asset Fund.
2Q 2025
• April 28, 2025: $58,224.58 UBS Trumbull Property Fund LP
distribution.
• June 23, 2025: $3,000,000 cash raised to reimburse the General
Fund.
Page 83 of 11324
Portfolio Dashboard
Total Invested Assets
As of September 30, 2026
Historical Performance
Summary of Cash Flows
QTR
Fiscal
YTD
YTD
1
Year
Since
Inception
322,182,349
322,182,349
293,197,767
285,413,337
126,047,968
24.0
Total Invested Assets
16.015.5
Return (%)
16.0
Beginning Market Value
Net Contributions
12.211.7
9.2 8.8
7.8 7.8
8.0
0.0
9.2 9.4
6.5
7.4
-
-
-
14
-57,163,323
-2,028,569
-2,028,569
26,956,012
34,740,428
251,269,135
320,153,780
320,153,780
320,153,780
320,153,780
320,153,780
Gain/Loss
Ending Market Value
Current Benchmark Composition
-0.6 -0.7
-0.6 -0.7
From Date
To Date
04/2025
Present
27.00% Blmbg. U.S. Aggregate, 33.00% S&P 500, 10.00%
Russell 2500 Index, 18.00% MSCI EAFE (Net), 7.50% MSCI
Emerging Markets (Net), 3.00% NCREIF Fund Index - ODCE
(net), 1.50% DWS Real Assets Benchmark
-8.0
QTR
Fiscal
YTD
YTD
1
Year
Portfolio (01/2008)
3
Years
5
Years
10
Years
Since
Inception
Portfolio Benchmark (01/2008)
Portfolio Allocation
Actual vs. Target Allocations
Short Term Liquidity
2.0%
Real Assets
4.2%
Private Equity
0.0%
International Equity
25.3%
Fixed Income
25.7%
0.0%
2.0%
2.0%
Short Term Liquidity
$6,294,501
Fixed Income
$82,302,228
Domestic Equity
$137,040,069
International Equity
$80,942,033
-1.3 %
Short Term Liquidity
Fixed Income
Domestic Equity
International Equity
Private Equity
Real Assets
Real Assets
$13,484,060
43.0%
42.8%
-0.2 %
25.5%
25.3%
-0.2 %
0.0%
0.0%
0.0%
Private Equity
$90,889
Domestic Equity
42.8%
27.0%
25.7%
-0.3 %
-15.0 %
0.0%
Target
4.5%
4.2%
15.0%
Actual
30.0%
45.0%
60.0%
Differences
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees.
Page 84 of 11325
Asset Class Performance & BERS Benchmark Attribution
Page 85 of 11326
Asset Allocation
Total Invested Assets
As of September 30, 2026
Actual vs. Target
0.0%
2.0%
2.0%
Short Term Liquidity
$6,294,501
27.0%
25.7%
Fixed Income
$82,302,228
-1.3 %
43.0%
42.8%
Domestic Equity
$137,040,069
-0.2 %
25.5%
25.3%
International Equity
$80,942,033
-0.2 %
0.0%
0.0%
0.0%
Private Equity
$90,889
4.5%
4.2%
Real Assets
$13,484,060
-16.0 %
-0.3 %
-8.0 %
0.0%
8.0%
Target Allocation
Asset
Allocation
($)
16.0%
24.0%
Actual Allocation
Asset
Allocation
(%)
32.0%
40.0%
48.0%
56.0%
Allocation Differences
Target
Allocation
(%)
Differences
(%)
Short Term Liquidity
6,294,501
2.0
0.0
2.0
Fixed Income
82,302,228
25.7
27.0
-1.3
Domestic Equity
137,040,069
42.8
43.0
-0.2
International Equity
80,942,033
25.3
25.5
-0.2
Private Equity
Real Assets
Total Invested Assets
90,889
0.0
0.0
0.0
13,484,060
4.2
4.5
-0.3
320,153,780
100.0
100.0
0.0
Page 86 of 11327
Fixed Income Asset Class Summary
Total Invested Assets
As of September 30, 2026
Important Disclosure Information:
Holding characteristics are sourced from Morngingstar Direct and manager provided data. Mutual fund data is as of the most recent submission to Morningstar.
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments,
including derivatives, which may be used to gain or reduce market exposure and/or risk management.
Past performance may not be indicative of future results. Account information has been compiled solely by Wealthspire Institutional has not been independently verified, and does not reflect the impact of taxes
on non-qualified accounts. In preparing this report, Wealthspire Institutional has relied upon information provided by third party sources. A copy of our current written disclosure statement discussing our
advisory services and fees continues to remain available for your review upon request. Historical performance results for investment indices and/or categories have been provided for general comparison
purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have
the effect of decreasing historical performance results. It should not be assumed that your account holdings correspond directly to any comparative indices.
Page 87 of 11328
Performance Overview
Total Invested Assets
As of September 30, 2026
Trailing Performance Summary
Current
Quarter
Fiscal
YTD
YTD
1
Year
3
Years
5
Years
7
Years
10
Years
Since
Inception
Inception
Date
Total Invested Assets
-0.6
-0.6
9.2
12.2
16.0
7.8
9.7
9.2
6.5
01/2008
Policy Benchmark
-0.7
-0.7
8.8
11.7
15.5
7.8
9.9
9.4
7.4
01/2008
Calendar Year Performance Summary
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Total Invested Assets
17.7
11.2
15.0
-15.4
14.6
12.7
19.1
-5.2
17.0
8.7
Policy Benchmark
17.4
10.7
14.9
-14.7
14.4
14.5
20.6
-5.2
16.9
9.0
Since
Inception
Inception
Date
Plan Reconciliation
Fiscal
YTD
QTR
1
Year
YTD
3
Years
5
Years
10
Years
Total Invested Assets
Beginning Market Value
Net Contributions
Gain/Loss
Ending Market Value
01/2008
322,182,349
322,182,349
293,197,767
285,413,337
214,015,326
244,250,469
163,820,244
-
-
-
14
-11,133,023
-24,885,261
-46,519,886
126,047,968
-57,163,323
-2,028,569
-2,028,569
26,956,012
34,740,428
117,271,477
100,788,571
202,853,422
251,269,135
320,153,780
320,153,780
320,153,780
320,153,780
320,153,780
320,153,780
320,153,780
320,153,780
Benchmark Composition
Weight (%)
Apr-2025
Blmbg. U.S. Aggregate
27.0
S&P 500
33.0
Russell 2500 Index
10.0
MSCI EAFE (Net)
18.0
MSCI Emerging Markets (Net)
7.5
NCREIF Fund Index - ODCE (net)
3.0
DWS Real Assets Benchmark
1.5
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees.
Page 88 of 11329
Manager Performance
Fiscal Year
Total Invested Assets (excluding Prepaid)
Policy Benchmark
As of September 30, 2026
Performance(%)
Jul-2020
Jul-2019
To
To
Jun-2021
Jun-2020
Jul-2025
To
Jun-2026
Jul-2024
To
Jun-2025
Jul-2023
To
Jun-2024
Jul-2022
To
Jun-2023
Jul-2021
To
Jun-2022
19.6
12.6
12.8
10.3
-13.2
31.1
19.1
12.4
12.1
10.9
-12.5
30.2
Jul-2018
To
Jun-2019
Jul-2017
To
Jun-2018
Jul-2016
To
Jun-2017
Jul-2015
To
Jun-2016
0.8
5.1
9.6
13.9
-1.2
2.9
6.0
9.6
13.7
0.4
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a statement
or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of fees unless
otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception. Inception dates for asset
class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of underlying component strategies.
Fund level peer groups changed from Lipper to Morningstar effective 09/30/2025. As a result of this change, the peer rankings of funds may differ.
Page 89 of 11330
Manager Performance
Total Invested Assets
As of September 30, 2026
Performance(%)
Allocation
Market
Value
($)
%
QTR
Fiscal
YTD
320,153,780 100.0
-0.6
-0.6
9.2
12.2
16.0
7.8
9.2
6.5
Policy Benchmark
-0.7
-0.7
8.8
11.7
15.5
7.8
9.4
7.4
Secondary Benchmark
-0.7
-0.7
8.8
11.7
15.6
7.6
9.2
7.3
0.9
0.9
1.4
1.5
2.0
1.6
-
1.4
0.9
0.9
2.6
3.6
4.5
3.7
2.4
3.2
Total Invested Assets
Short Term Liquidity
6,294,501
2.0
90 Day U.S. Treasury Bill
Key Bank Cash Portfolio
First American Govt Oblig Fund Z
331,086
0.1
5,963,415
1.9
YTD
1
Year
3
Years
5
Years
10
Years
Since
Inception
Inception
Date
0.9
0.9
2.7
3.7
4.5
3.7
2.3
4.0
90 Day U.S. Treasury Bill
0.9
0.9
2.6
3.6
4.5
3.7
2.4
4.0
Money Market-Taxable Median
0.9
0.9
2.6
3.5
4.3
3.5
2.2
3.9
32
32
23
23
20
20
16
21
-3.3
-3.3
-2.1
-0.9
5.0
0.1
-
-0.3
-3.5
-3.5
-2.9
-1.8
4.1
-0.6
1.1
-0.8
First American Govt Oblig Fund Z Rank
Fixed Income
82,302,228
25.7
Blmbg. U.S. Aggregate
JIC Core Bond Fund I
-3.8
-3.8
-3.2
-2.1
4.3
-0.8
1.3
-0.2
Blmbg. U.S. Aggregate
-3.5
-3.5
-2.9
-1.8
4.1
-0.6
1.1
-0.2
Intermediate Core Bond Median
-3.7
-3.7
-3.1
-2.1
4.0
-0.7
1.1
-0.2
JIC Core Bond Fund I Rank
61
61
59
49
23
58
34
50
BlackRock Strategic Income Opportunities K
60,526,580
-1.9
-1.9
0.4
2.0
6.7
3.1
3.7
3.9
Blmbg. U.S. Aggregate
-3.5
-3.5
-2.9
-1.8
4.1
-0.6
1.1
0.0
Nontraditional Bond Median
-1.1
-1.1
0.3
1.4
5.5
2.6
3.1
3.3
67
67
47
35
24
36
23
31
BlackRock Strategic Income Opportunities K Rank
21,775,648
18.9
6.8
Manager
Status
01/2008
01/2021
03/2022
01/2021
03/2020
Maintain
03/2022
Maintain
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a statement
or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of fees unless
otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception. Inception dates for asset
class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of underlying component strategies.
Page 90 of 11331
Manager Performance
Total Invested Assets
As of September 30, 2026
Performance(%)
Allocation
Domestic Equity
Market
Value
($)
%
137,040,069
42.8
Domestic Equity Benchmark
BNYM Mellon DB NSL Stock Index Fund
107,097,867
33.5
QTR
Fiscal
YTD
YTD
1
Year
3
Years
5
Years
0.3
0.2
10
Years
Since
Inception
Inception
Date
0.3
13.2
16.1
21.8
12.4
-
13.5
0.2
13.3
16.2
21.8
12.4
14.2
13.5
2.3
2.3
12.7
15.7
22.9
13.8
15.3
15.2
S&P 500
2.3
2.3
12.7
15.7
22.9
13.8
15.3
15.2
Large Blend Median
1.7
1.7
11.4
14.2
21.3
12.4
14.1
14.0
32
32
26
25
21
18
12
12
BNYM Mellon DB NSL Stock Index Fund Rank
BNYM Mellon DB SL SMID Cap Stock Index Fund
-6.3
-6.3
14.9
17.4
17.8
7.6
10.9
11.4
Russell 2500 Index
29,942,202
9.4
-6.4
-6.4
14.9
17.4
17.7
7.5
10.8
11.3
U.S. SMID Cap Equity (MF) Median
-7.0
-7.0
11.3
12.9
14.4
6.4
9.6
10.1
42
42
25
25
22
35
26
27
0.5
0.5
14.8
20.3
20.6
9.7
-
9.1
0.5
0.5
14.2
19.7
20.3
9.5
9.5
9.2
BNYM Mellon DB SL SMID Cap Stock Index Fund Rank
International Equity
80,942,033
25.3
International Equity Benchmark
BNYM Mellon DB NSL International Stock Index Fund
0.9
0.9
10.6
16.0
18.8
9.7
9.5
9.5
MSCI EAFE (Net)
57,273,391
17.9
0.8
0.8
10.3
15.7
18.4
9.3
9.1
9.1
Foreign Large Blend Median
0.0
0.0
10.6
15.2
18.7
8.8
8.8
9.0
25
25
51
43
50
28
29
31
BNYM Mellon DB NSL International Stock Index Fund Rank
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
-0.2
-0.2
24.4
30.2
24.3
8.9
9.0
9.6
MSCI Emerging Markets (Net)
-0.4
-0.4
23.4
29.2
24.1
8.9
9.1
9.6
Diversified Emerging Mkts Median
-2.1
-2.1
23.1
28.9
22.7
7.8
8.6
9.3
32
32
38
40
36
34
41
42
BNYM Mellon DB NSL Emerging Markets Stock Index Fund Rank
23,668,642
7.4
Manager
Status
01/2021
04/2016
Maintain
04/2016
Maintain
01/2021
04/2016
Maintain
04/2016
Maintain
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a statement
or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of fees unless
otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception. Inception dates for asset
class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of underlying component strategies.
Page 91 of 11332
Manager Performance
Total Invested Assets
As of September 30, 2026
Performance(%)
Allocation
Market
Value
($)
%
QTR
Fiscal
YTD
YTD
1
Year
3
Years
5
Years
10
Years
Since
Inception
Inception
Date
Manager
Status
Private Equity
90,889
0.0
0.0
0.0
-4.2
-35.0
-22.3
-16.9
-
-12.5
01/2021
Hamilton Lane VII A
25,601
0.0
0.0
0.0
-3.3
-35.1
-22.6
-17.4
-1.4
2.8
07/2011
Maintain
Hamilton Lane VII B
65,288
0.0
0.0
0.0
-5.1
-33.4
-20.6
-13.9
-3.1
1.8
07/2011
Maintain
13,484,060
4.2
-1.0
-1.0
2.3
3.8
0.4
-0.9
-
0.7
01/2021
0.0
0.0
2.3
3.1
-0.7
0.7
-
2.5
Real Assets
Real Assets Benchmark
UBS Trumbull Property Fund
7,654,313
2.4
NCREIF Fund Index - ODCE (net)
DWS RREEF Real Assets R6
5,829,747
DWS Real Assets Benchmark
1.8
0.0
0.0
2.4
3.5
0.1
-0.6
1.0
1.2
0.0
0.0
2.3
3.1
-0.7
0.6
3.5
3.6
-2.3
-2.3
5.3
7.4
10.9
4.6
6.7
8.8
-0.8
-0.8
9.3
11.1
11.8
5.7
5.9
12.1
07/2016
Terminate
04/2025
Maintain
Valuations data as of:
Valuations data as of:
Hamilton Lane VII - 6/30/2026
UBS Trumbull Property Fund - 6/30/2026
All private equity and real estate assets are adjusted for any subsequent capital activity.
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a statement
or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of fees unless
otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception. Inception dates for asset
class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of underlying component strategies.
Page 92 of 11333
Calendar Year Performance
Total Invested Assets
As of September 30, 2026
2025
2024
2023
2022
Performance(%)
2021
2020
2019
2018
2017
2016
Total Invested Assets
17.7
11.2
15.0
-15.4
14.6
12.7
19.1
-5.2
17.0
8.7
Policy Benchmark
17.4
10.7
14.9
-14.7
14.4
14.5
20.6
-5.2
16.9
9.0
Secondary Benchmark
17.4
10.7
14.7
-15.1
14.1
14.0
19.8
-5.3
16.7
9.1
1.0
2.9
2.3
0.3
0.0
-
-
-
-
-
4.2
5.3
5.0
1.5
0.0
0.7
2.3
1.9
0.9
0.3
Short Term Liquidity
90 Day U.S. Treasury Bill
First American Govt Oblig Fund Z
4.2
5.2
5.0
1.5
0.0
0.4
2.1
1.7
0.8
0.2
90 Day U.S. Treasury Bill
4.2
5.3
5.0
1.5
0.0
0.7
2.3
1.9
0.9
0.3
Money Market-Taxable Median
4.0
5.0
4.8
1.4
0.0
0.3
1.8
1.5
0.5
0.0
19
22
26
23
22
20
13
17
11
13
8.1
2.5
6.0
-12.7
-2.0
-
-
-
-
-
7.3
1.3
5.5
-13.0
-1.5
7.5
8.7
0.0
3.5
2.6
First American Govt Oblig Fund Z Rank
Fixed Income
Blmbg. U.S. Aggregate
JIC Core Bond Fund I
7.9
1.2
5.4
-13.7
-2.0
9.7
8.9
0.1
3.7
3.7
Blmbg. U.S. Aggregate
7.3
1.3
5.5
-13.0
-1.5
7.5
8.7
0.0
3.5
2.6
Intermediate Core Bond Median
7.1
1.5
5.6
-13.4
-1.6
7.9
8.5
-0.4
3.5
2.6
JIC Core Bond Fund I Rank
10
72
64
63
80
14
30
20
37
17
BlackRock Strategic Income Opportunities K
8.7
5.4
7.4
-5.6
1.1
7.3
7.8
-0.5
5.0
3.7
Blmbg. U.S. Aggregate
7.3
1.3
5.5
-13.0
-1.5
7.5
8.7
0.0
3.5
2.6
Nontraditional Bond Median
6.3
5.9
7.2
-6.5
1.1
4.6
6.2
-0.7
3.8
4.5
19
59
48
43
52
25
29
47
30
66
BlackRock Strategic Income Opportunities K Rank
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a
statement or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of
fees unless otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception.
Inception dates for asset class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of
underlying component strategies.
Page 93 of 11334
Calendar Year Performance
Total Invested Assets
Domestic Equity
Domestic Equity Benchmark
BNYM Mellon DB NSL Stock Index Fund
As of September 30, 2026
2025
2024
2023
2022
Performance(%)
2021
2020
2019
2018
2017
2016
16.6
22.1
24.4
-18.1
26.0
-
-
-
-
-
16.5
22.1
24.4
-18.1
26.3
19.3
30.1
-6.6
19.9
14.2
17.9
25.0
26.2
-18.1
28.7
18.3
31.4
-4.4
21.8
-
S&P 500
17.9
25.0
26.3
-18.1
28.7
18.4
31.5
-4.4
21.8
12.0
Large Blend Median
16.4
23.3
24.5
-18.2
26.7
17.6
30.0
-5.6
21.2
10.3
24
25
27
49
23
42
27
24
34
-
BNYM Mellon DB NSL Stock Index Fund Rank
BNYM Mellon DB SL SMID Cap Stock Index Fund
12.0
12.1
17.6
-18.3
18.4
20.0
27.9
-9.9
17.0
-
Russell 2500 Index
11.9
12.0
17.4
-18.4
18.2
20.0
27.8
-10.0
16.8
17.6
U.S. SMID Cap Equity (MF) Median
7.9
12.1
16.1
-16.3
23.3
13.6
25.9
-11.0
15.7
16.0
22
51
35
57
63
42
37
46
46
-
BNYM Mellon DB SL SMID Cap Stock Index Fund Rank
International Equity
32.4
5.1
16.3
-15.8
5.5
-
-
-
-
-
32.2
5.0
16.1
-15.7
6.7
13.2
20.3
-14.1
31.1
6.2
31.6
4.2
18.6
-14.1
11.5
8.6
22.3
-13.3
25.7
-
MSCI EAFE (Net)
31.2
3.8
18.2
-14.5
11.3
7.8
22.0
-13.8
25.0
1.0
Foreign Large Blend Median
31.2
4.6
16.3
-15.9
10.3
9.7
22.1
-14.9
25.5
0.8
BNYM Mellon DB NSL International Stock Index Fund Rank
46
56
18
24
34
57
48
22
48
-
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
33.8
7.3
9.5
-20.6
-2.6
18.3
18.4
-14.6
37.2
-
MSCI Emerging Markets (Net)
33.6
7.5
9.8
-20.1
-2.5
18.3
18.4
-14.6
37.3
11.2
Diversified Emerging Mkts Median
31.8
6.3
11.0
-22.5
-1.3
17.8
20.5
-16.4
35.4
8.4
35
38
63
35
60
48
65
30
43
-
International Equity Benchmark
BNYM Mellon DB NSL International Stock Index Fund
BNYM Mellon DB NSL Emerging Markets Stock Index Fund Rank
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a
statement or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of
fees unless otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception.
Inception dates for asset class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of
underlying component strategies.
Page 94 of 11335
Calendar Year Performance
Total Invested Assets
As of September 30, 2026
2025
2024
2023
2022
Performance(%)
2021
2020
Private Equity
-42.2
-15.1
-7.0
-10.5
18.8
Hamilton Lane VII A
-43.8
-15.9
-4.7
-13.8
Hamilton Lane VII B
-37.7
-12.9
-7.0
6.0
-2.5
2.9
-2.3
4.8
2.9
Real Assets
Real Assets Benchmark
UBS Trumbull Property Fund
NCREIF Fund Index - ODCE (net)
2019
2018
2017
2016
-
-
-
-
-
33.9
14.6
13.9
14.7
9.9
9.0
-3.8
0.4
18.6
6.8
8.3
10.7
9.1
-15.8
0.8
15.7
-
-
-
-
-
-12.7
7.5
19.3
-
-
-
-
-
-2.5
-15.8
4.9
15.1
-5.1
-3.0
6.0
5.2
-
-2.3
-12.7
6.5
21.0
0.3
4.4
7.4
6.7
7.8
DWS RREEF Real Assets R6
13.2
5.6
2.6
-9.6
23.9
3.9
21.8
-5.1
15.0
4.4
DWS Real Assets Benchmark
14.5
3.0
4.2
-7.5
22.3
-3.7
19.7
-7.7
11.6
12.0
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a
statement or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of
fees unless otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception.
Inception dates for asset class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of
underlying component strategies.
Page 95 of 11336
Performance Attribution
Total Invested Assets vs. Secondary Benchmark
1 Year Ending September 30, 2026
Total Fund Performance
Total Value Added:0.5%
0.5%
Total Value Added
11.7%
Total Fund Benchmark
Total Fund
4.0%
8.0%
0.3%
Manager Value Added
12.2%
0.0%
0.3%
Asset Allocation
12.0%
Other
16.0%
-0.1 %
-0.4 %
-0.2 %
Total Asset Allocation:0.3%
Weight (%)
0.5%
0.0%
0.4%
0.0%
-2.0 %
0.3%
Domestic Equity
1.0%
International Equity
0.9%
Real Assets
Average Active Weight
-0.1 %
0.0%
0.1%
0.0%
0.1%
-2.0 %
0.3%
0.0%
-0.5 %
Private Equity
-4.0 %
0.2%
Total Manager Value Added:0.3%
Short Term Liquidity
Fixed Income
0.0%
0.0%
-0.1 %
-0.1 %
2.0%
-0.4 %
-0.2 %
0.0%
0.0%
0.2%
Asset Allocation Value Added
0.4%
-0.4 %
-0.2 %
0.0%
0.2%
0.4%
Manager Value Added
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees.
Page 96 of 11337
Manager Status Commentary
City of Burlington Employees Retirement System
Manager
As of September 30, 2026
Recommendation
Comments
Fixed Income
JIC Core Bond Fund I
Maintain
BlackRock Strategic Income Opportunities K
Maintain
Equity
Domestic Equity
BNYM Mellon DB NSL Stock Index Fund
Maintain
BNYM Mellon DB SL SMID Cap Stock Index Fund
Maintain
International Equity
BNYM Mellon DB NSL International Stock Index Fund
Maintain
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
Maintain
Private Equity
Hamilton Lane VII A
Maintain
Hamilton Lane VII B
Maintain
Real Assets
UBS Trumbull Property Fund
Terminate
DWS RREEF Real Assets R6
Maintain
Following the departures of two key team members in 2020, Matt Lynch, Head of US Real Estate, and Jack Connelly, Head of Transactions, the UBS Trumbull Property Fund was evaluated for
potential impacts and conversation with the team took place. Following this due diligence the Trumbull Property Fund was moved to terminate status. A significant redemption queue remains
for the Fund. Redemptions are paid out on a pro-rata basis according to the ratio of the requesting investor’s units to the total units of all investors requesting redemptions. It is anticipated that
satisfying the pool will be a multi-year process.
BERS is in the redemption queue for a full liquidation of the UBS Trumbull Property Fund.
Commentary produced upon change of status.
Page 97 of 11338
Investment Gain/Loss Summary
City of Burlington Employees Retirement System
1 Quarter Ending September 30, 2026
Market Value
as of
07/01/2026
Net Contributions
Gain/Loss
Market Value
As of
09/30/2026
316,373,457
-4,578,163
-2,028,569
309,766,725
-5,808,892
-4,578,163
-
-10,387,055
Total Invested Assets
322,182,349
-
-2,028,569
320,153,780
Short Term Liquidity
6,138,292
103,313
52,896
6,294,501
Key Bank Cash Portfolio
331,086
-
-
331,086
First American Govt Oblig Fund Z
5,807,206
103,313
52,896
5,963,415
Fixed Income
85,078,961
-
-2,776,733
82,302,228
JIC Core Bond Fund I
62,885,149
-
-2,358,568
60,526,580
BlackRock Strategic Income Opportunities K
22,193,812
-
-418,164
21,775,648
Equity
217,238,255
-
834,735
218,072,990
Domestic Equity
136,646,528
-
393,540
137,040,069
BNYM Mellon DB NSL Stock Index Fund
104,682,156
-
2,415,710
107,097,867
BNYM Mellon DB SL SMID Cap Stock Index Fund
31,964,372
-
-2,022,170
29,942,202
International Equity
80,500,838
-
441,195
80,942,033
BNYM Mellon DB NSL International Stock Index Fund
56,781,940
-
491,451
57,273,391
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
Total Plan
Pension Benefits Payable to the City
23,718,898
-
-50,256
23,668,642
Private Equity
90,889
-
-
90,889
Hamilton Lane VII A
25,601
-
-
25,601
Hamilton Lane VII B
65,288
-
-
65,288
Real Assets
13,726,841
-103,313
-139,468
13,484,060
UBS Trumbull Property Fund
7,757,626
-103,313
-
7,654,313
DWS RREEF Real Assets R6
5,969,214
-
-139,468
5,829,747
Valuations data as of:
Valuations data as of:
Hamilton Lane VII - 6/30/2026
UBS Trumbull Property Fund - 6/30/2026
All private equity and real estate assets are adjusted for any subsequent capital activity.
Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees. Manager performance for mutual funds and ETFs is based on NAV and
provided by Morningstar. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager statement, or calculations based on a statement
or data from the client’s custodian. Funds may include returns of an equivalent share class with a longer return history if period includes dates prior to the fund's inception. Returns are net of fees unless
otherwise stated. The fund’s inception date represents the first month the client made the investment. Composite performance includes all funds held in the composite since inception. Inception dates for asset
class composites reflect the start date at which these returns could be calculated using historical and existing system capabilities and may vary from the inception dates of underlying component strategies.
Page 98 of 11339
Portfolio Statistics
Total Invested Assets
As of September 30, 2026
QTD
YTD
1
Year
3
Years
5
Years
10
Years
Since
Inception
Inception
Date
Return
-0.6
9.2
12.2
16.0
7.8
Standard Deviation
1.5
3.5
10.6
9.5
11.7
9.2
6.5
01/2008
12.9
12.8
Upside Risk
1.0
3.0
2.7
9.2
9.3
10.3
10.0
Downside Risk
1.1
2.0
6.1
4.9
7.6
8.2
8.2
Alpha
0.0
0.0
-0.1
0.1
0.0
1.8
3.2
Beta
1.0
1.0
1.0
1.0
1.0
0.8
0.5
Information Ratio
0.9
0.3
0.9
1.2
0.2
0.0
-0.1
Tracking Error
0.0
0.2
0.5
0.4
0.4
9.4
12.7
-0.3
0.2
0.8
1.2
0.4
0.6
0.4
vs. Policy Benchmark
vs. 90 Day U.S. Treasury Bill
Sharpe Ratio
Calculation based on monthly periodicity. Client portfolio performance is presented net of underlying investment manager fees but gross of Wealthspire Institutional's fees.
Page 99 of 11340
Estimated Fee Analysis
Total Invested Assets
As of September 30, 2026
Market Value
($)
Estimated
Annual Fee
($)
Estimated
Annual Fee
(%)
Total Invested Assets
320,153,780
492,141
0.15
-
Short Term Liquidity
6,294,501
10,734
0.17
-
Key Bank Cash Portfolio
First American Govt Oblig Fund Z
Fixed Income
Fee Schedule Details
(Ex. Mutual Fund Investments)
Universe Median
Expense Ratio
(%)
331,086
-
-
-
5,963,415
10,734
0.18
0.40
82,302,228
288,503
0.35
-
JIC Core Bond Fund I
60,526,580
151,316
0.25
0.67
BlackRock Strategic Income Opportunities K
21,775,648
137,187
0.63
1.41
Equity
218,072,990
81,498
0.04
-
Domestic Equity
137,040,069
41,112
0.03
BNYM Mellon DB NSL Stock Index Fund
107,097,867
32,129
0.03
0.03 % of Assets
0.81
BNYM Mellon DB SL SMID Cap Stock Index Fund
29,942,202
8,983
0.03
0.03 % of Assets
1.19
80,942,033
39,477
0.05
BNYM Mellon DB NSL International Stock Index Fund
57,273,391
22,909
0.04
0.04 % of Assets
1.04
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
23,668,642
16,568
0.07
0.07 % of Assets
1.44
90,889
909
1.00
Hamilton Lane VII A
25,601
256
1.00
1.00 % of Assets
-
Hamilton Lane VII B
65,288
653
1.00
1.00 % of Assets
-
13,484,060
111,406
0.83
UBS Trumbull Property Fund
7,654,313
58,938
0.77
DWS RREEF Real Assets R6
5,829,747
52,468
0.90
International Equity
Private Equity
Real Assets
-
-
-
0.77 % of Assets
-
Estimated Annual Fee (%): The figures on this page have been obtained from sources we deem to be reliable. Wealthspire Institutional has not independently verified this information. Fee calculations for
mutual funds represent fees at the net expense level. Fee calculations for commingled funds and/or alternative investments reflect base management fees and exclude underlying fund expenses captured at
the NAV level, any applicable performance-based fees, or incentive fees. Fees for fund of funds are shown at the fund of fund level and do not include fees charged by underlying investment managers/funds.
Universe Median Net Expense Ratio (%): Mutual fund equivalent universe shown for comparative purposes, where available. Private Equity universe fee average: Fund of Funds 0.87% (excludes underlying
fund fees and performance-based fees), Direct Funds 2.0% management fee (excludes performance-based fee and any pass- through expenses).
The figures on this page have been obtained from sources we deem to be reliable. Wealthspire Institutional has not independently verified this information.
Fee calculations for mutual funds represent fees at the net expense level. Fee calculations for commingled funds and/or alternative investments reflect base management fees and exclude underlying fund
expenses captured at the NAV level, any applicable performance-based fees, or incentive fees. Fees for fund of funds are shown at the fund of fund level and do not include fees charged by underlying
investment managers/funds.
Page 100 of 11341
Liquidity Schedule
Total Invested Assets
Investments
As of September 30, 2026
Subscriptions
Redemptions
Market Value
($)
Liquid
($)
Semi Liquid
($)
Illiquid
($)
Short Term Liquidity
Key Bank Cash Portfolio
Daily
Liquid
331,086
331,086
-
-
First American Govt Oblig Fund Z
Daily
Liquid
5,963,415
5,963,415
-
-
JIC Core Bond Fund I
Daily
Liquid
60,526,580
60,526,580
-
-
BlackRock Strategic Income Opportunities K
Daily
Liquid
21,775,648
21,775,648
-
-
BNYM Mellon DB NSL Stock Index Fund
Daily
Liquid
107,097,867
107,097,867
-
-
BNYM Mellon DB SL SMID Cap Stock Index Fund
Daily
Liquid
29,942,202
29,942,202
-
-
BNYM Mellon DB NSL International Stock Index Fund
Daily
Liquid
57,273,391
57,273,391
-
-
BNYM Mellon DB NSL Emerging Markets Stock Index Fund
Daily
Liquid
23,668,642
23,668,642
-
-
Hamilton Lane VII A
Illiquid
Illiquid
25,601
-
-
25,601
Hamilton Lane VII B
Illiquid
Illiquid
65,288
-
-
65,288
UBS Trumbull Property Fund
Quarterly
Semi Liquid
7,654,313
-
7,654,313
-
DWS RREEF Real Assets R6
Daily
Liquid
5,829,747
5,829,747
-
-
Total ($)
320,153,780
312,408,577
7,654,313
90,889
Total (%)
100.0
97.6
2.4
0.0
Fixed Income
Domestic Equity
International Equity
Private Equity
Real Assets
Liquid – daily to monthly | Semi-Liquid – greater than monthly and up to one year | Illiquid – greater than one year
The figures on this page have been obtained from sources we deem to be reliable. Wealthspire Institutional has not independently verified this information.
Page 101 of 11342
Liquidity Schedule
Total Invested Assets
Redemptions
Illiquid
Semi Liquid
As of September 30, 2026
Market Value
($)
90,889
% of
Total Plan
0.0
7,654,313
2.4
Liquid
312,408,577
97.6
Total
320,153,780
100.0
BERS is in the redemption queue for a full liquidation of the UBS Trumbull Property Fund.
Liquid – daily to monthly | Semi-Liquid – greater than monthly and up to one year | Illiquid – greater than one year
The figures on this page have been obtained from sources we deem to be reliable. Wealthspire Institutional has not independently verified this information.
Page 102 of 11343
Benchmark History
Total Invested Assets
As of September 30, 2026
Account Name
From Date
To Date
Benchmark
Total Invested Assets
04/2025
Present
27.0% Blmbg. U.S. Aggregate, 33.0% S&P 500, 10.0% Russell 2500 Index, 18.0% MSCI EAFE (Net), 7.5% MSCI Emerging
Markets (Net), 3.0% NCREIF Fund Index - ODCE (net), 1.5% DWS Real Assets Benchmark
04/2024
03/2025
27.0% Blmbg. U.S. Aggregate, 33.5% S&P 500, 9.5% Russell 2500 Index, 19.0% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 4.0% NCREIF Fund Index - ODCE (net)
01/2023
03/2024
25.0% Blmbg. U.S. Aggregate, 32.5% S&P 500, 9.0% Russell 2500 Index, 20.5% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 6.0% NCREIF Fund Index - ODCE (net)
09/2022
12/2022
25.0% Blmbg. U.S. Aggregate, 31.5% S&P 500, 9.0% Russell 2500 Index, 20.5% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 6.0% NCREIF Fund Index - ODCE (net), 1.0% NCREIF Timberland Index
05/2021
08/2022
18.0% Blmbg. U.S. Aggregate, 31.5% S&P 500, 10.5% Russell 2500 Index, 23.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 6.0% NCREIF Fund Index - ODCE (net), 1.0% NCREIF Timberland Index
12/2019
04/2021
20.0% Blmbg. U.S. Aggregate, 32.0% S&P 500, 18.0% Russell 2500 Index, 10.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 8.0% NCREIF Fund Index - ODCE (net), 2.0% NCREIF Timberland Index
06/2017
11/2019
20.0% Blmbg. Intermed. U.S. Government/Credit, 30.0% S&P 500, 18.0% Russell 2500 Index, 2.0% S&P Completion Index,
10.0% MSCI EAFE (Net), 10.0% MSCI Emerging Markets (Net), 8.0% NCREIF Fund Index - ODCE (net), 2.0% NCREIF
Timberland Index
01/2016
05/2017
28.0% Blmbg. Intermed. U.S. Government/Credit, 30.0% S&P 500, 18.0% Russell 2500 Index, 2.0% S&P Completion Index,
10.0% MSCI EAFE (Net), 10.0% MSCI Emerging Markets (Net), 2.0% NCREIF Timberland Index
01/2008
12/2015
20.0% Blmbg. U.S. Aggregate, 32.0% S&P 500, 18.0% Russell 2500 Index, 10.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 8.0% NCREIF Fund Index - ODCE (net), 2.0% NCREIF Timberland Index
04/2025
Present
27.0% Blmbg. U.S. Aggregate, 33.0% S&P 500, 10.0% Russell 2500 Index, 18.0% MSCI EAFE (Net), 7.5% MSCI Emerging
Markets (Net), 3.0% UBS Trumbull Property Fund, 1.5% DWS Real Assets Benchmark
04/2024
03/2025
27.0% Blmbg. U.S. Aggregate, 33.5% S&P 500, 9.5% Russell 2500 Index, 19.0% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 4.0% UBS Trumbull Property Fund
01/2023
03/2024
25.0% Blmbg. U.S. Aggregate, 32.5% S&P 500, 9.0% Russell 2500 Index, 20.5% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 6.0% UBS Trumbull Property Fund
09/2022
12/2022
25.0% Blmbg. U.S. Aggregate, 31.5% S&P 500, 9.0% Russell 2500 Index, 20.5% MSCI EAFE (Net), 7.0% MSCI Emerging
Markets (Net), 6.0% UBS Trumbull Property Fund, 1.0% Molpus SWF II
05/2021
08/2022
18.0% Blmbg. U.S. Aggregate, 31.5% S&P 500, 10.5% Russell 2500 Index, 23.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 6.0% UBS Trumbull Property Fund, 1.0% Molpus SWF II
12/2019
04/2021
20.0% Blmbg. U.S. Aggregate, 32.0% S&P 500, 18.0% Russell 2500 Index, 10.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 8.0% UBS Trumbull Property Fund, 2.0% Molpus SWF II
06/2017
11/2019
20.0% Blmbg. Intermed. U.S. Government/Credit, 30.0% S&P 500, 18.0% Russell 2500 Index, 2.0% S&P Completion Index,
10.0% MSCI EAFE (Net), 10.0% MSCI Emerging Markets (Net), 8.0% UBS Trumbull Property Fund, 2.0% Molpus SWF II
07/2016
05/2017
28.0% Blmbg. Intermed. U.S. Government/Credit, 30.0% S&P 500, 18.0% Russell 2500 Index, 2.0% S&P Completion Index,
10.0% MSCI EAFE (Net), 10.0% MSCI Emerging Markets (Net), 2.0% Molpus SWF II
01/2016
06/2016
28.0% Blmbg. Intermed. U.S. Government/Credit, 30.0% S&P 500, 18.0% Russell 2500 Index, 2.0% S&P Completion Index,
10.0% MSCI EAFE (Net), 10.0% MSCI Emerging Markets (Net), 2.0% Molpus SWF II
03/2009
12/2015
20.0% Blmbg. U.S. Aggregate, 32.0% S&P 500, 18.0% Russell 2500 Index, 10.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 8.0% NCREIF Fund Index - ODCE (net), 2.0% Molpus SWF II
Secondary Benchmark
Page 103 of 11344
Benchmark History
Total Invested Assets
Account Name
As of September 30, 2026
From Date
To Date
Benchmark
01/2008
02/2009
20.0% Blmbg. U.S. Aggregate, 32.0% S&P 500, 18.0% Russell 2500 Index, 10.0% MSCI EAFE (Net), 10.0% MSCI Emerging
Markets (Net), 8.0% NCREIF Fund Index - ODCE (net), 2.0% NCREIF Timberland Index
Page 104 of 11345
For current investors and
consultants only
Trumbull Property Fund
Flash Report 2Q26 (TPF)
The Fund's objective seeks to outperform the NFI-ODCE index over full market cycles.
Returns (%)
Portfolio distribution by geographic region (%)6
Income
Appreciation
Quarter
Year-to-date
0.88
1.82
East
32
0.87
South
17
0.65
Total gross
1.53
2.70
Midwest
3
Total net (estimated)⁹
1.37
2.38
West
46
Various
2
Key statistics
Distribution by property type (%)7
Gross asset value (GAV, USD bn)
12.7
Net asset value (NAV, USD bn)
9.6
Apartments
41
Cash as a % of GAV (%)
1.6
Industrial
35
Debt as % of GAV (%)
23.1
Office
9
Number of investments¹
162
Retail
8
Number of investors
400
Life science
4
0.0
Seniors housing
2
50.0
Self-storage
1
2.9
Manufactured housing
1
Deposits (USD m)
2
Redemptions (USD m)
2
Redemption pool (USD bn)3
Transaction activity
Quarter
Year-to-date
Dispositions⁴
32.4
210.1
Acquisitions⁵
349.1
349.1
Fountainwood at Lake Houston, Atascocita, TX (Welltower)
Historical performance (%)⁸
Periods ended June 30, 2026
2Q26
1 year
3 years
5 years
10 years
Since inception
Fund gross return
1.53
5.30
0.35
1.41
2.11
7.61
Fund net return (estimated)⁹
1.37
4.61
(0.35)
0.70
1.34
6.67
NFI-ODCE gross return10
1.49
4.45
(0.62)
2.73
4.63
7.89
NFI-ODCE net return10
1.29
3.60
(1.44)
1.86
3.73
6.85
Highlights
– Fund performance: TPF's gross total return outperformed NFI-ODCE's preliminary return by 4 bps in the second quarter. TPF has now
outperformed the NFI-ODCE benchmark over the trailing one-year, two-year, and three-year time periods by 85 bps, 69 bps, and 97 bps,
respectively.
– Sector performance: TPF's industrial and residential sectors experienced the largest valuation increases overall during the quarter. The
Fund's retail and specialty sectors provided modest increases while valuations within the office sector decreased.
– Transactions: TPF completed an IOS industrial acquisition in New Jersey and acquired a joint-venture partner’s interest in a 51-asset
industrial portfolio. The Fund also made a new commitment with Welltower into a seniors housing debt venture and increased its
commitment to the existing Extra Space self-storage venture. Disposition activity included two land sales and the repayment of an office
mortgage investment.
– Leverage: TPF’s LTV ended at 23.1%, increasing slightly from 22.7%. Activity this quarter included the refinancing and upsizing of the USD
250.0m term loan backed by an industrial portfolio to a USD 300.0m commitment.
– Investor activity: The Fund made a redemption payment of USD 50.0m in July. This quarter, TPF received recission requests totaling USD
783.0m, increasing the 2026 total recissions to USD 1.6bn and reducing the redemption pool to USD 2.9bn.
Page 105 of 11346
TPF's Property count increased by 51 following the purchase of Becknell's
interest of the BIOP portfolio. TPF previously counted all BIOP assets as one
investment.
1
Deposits and redemptions for the second quarter of 2026 are recorded in
July 2026.
2
Redemption pool balance available for repayment at quarter end, less
redemptions paid following-quarter end.
3
Dispositions are Fund's share of gross sales price after adjustments.
4
Acquisitions represent committed capital for fund investments.
5
Percentage of gross market value of real estate investments. Totals may
not sum due to rounding. The regional allocation of TPF's investment in
Manufactured housing venture is in accordance with the regional allocation
of the underlying fund. TPF’s investments in Seniors housing & Self-storage
ventures, with properties across the US, are not allocated by region and are
considered various. TPF's investment share is USD 230.7m (1.9%) and USD
46.3m (0.4%), respectively, which rounds to two in the above chart.
6
Percentage of gross market value of real estate investments. TPF holds land
investments of USD 11.2m (0.1%) not included in the chart above.
7
⁸Inception date January 13, 1978. Past performance is not indicative of
future results. Gross fund returns are compared to NFI-ODCE gross returns.
Net fund returns are compared to NFI-ODCE net returns. The NFI-ODCE
Index is unmanaged and not available for direct investment. Gross fund
returns do not reflect the deduction of fees and expenses.
⁹Estimated fees for the current quarter were utilized in this report for
calculation of net returns. The net return estimate is based the difference
between net and gross returns last quarter plus an estimated fee decline
resulting from the fee savings program.
NFI-ODCE returns are preliminary numbers and may be subject to change.
Upon release of final NFI-ODCE, final returns will be provided in the Facts
& Figures.
10
All figures and performance reflect data as of June 30, 2026, and are
denominated in USD, unless otherwise stated. Returns herein, unless
otherwise noted, are presented gross and net of fees. TPF’s net returns
are shown after the deduction of actual Advisory Fees earned by the
Advisor. Advisory fees include base management fees, variable fees
and fee discount programs. Base fees are scaled based on the size of an
investors’ investment. Advisory fees do not include contract charges that
were only applicable through February 29, 2008. Net returns represent
the average net return for all investor capital and does not represent the
actual net return earned by any specific investor. Additional information
on fees is available upon request. Investors considering investment in
the Fund may request a calculation of the effective fee at the proposed
investment amount including any applicable fee discount programs.
The manager seeks to achieve the stated objectives; however, there is no
guarantee the objectives will be met.
Sale prices shown are TPF's share of gross sale price. Numbers may not
sum due to rounding.
This summary is not a recommendation, an offer, a solicitation, or advertisement to purchase or sell securities or interests in the Fund. The Fund
will only be offered pursuant to a confidential offering memorandum
and then only to accredited investors on a private placement basis in
jurisdictions in which such an offer may be legally made. The Fund may
not be available to investors in all jurisdictions—investors should consult
their legal and tax advisors regarding investment in the Fund. The product
described herein aligns to Article 6 of Regulation (EU) 2019/2088.
The Trumbull Property Fund (TPF) is a Delaware limited partnership and
is part of the group of funds known as the Trumbull Funds. The Fund is
denominated in USD. Returns include reinvestment of income and are
before deduction of management fees. All returns shown are before the
deduction of contract charges, which are only applicable through February
29, 2008. NCREIF Fund Index-Open End Diversified Core Equity (“NFIODCE”) returns are time-weighted, fund-level returns that include cash
balances and leverage and are presented gross of fees. With property
investment, the underlying assets are very illiquid, and redemptions may
UBS Realty Investors LLC
10 State House Square, 12th Floor
Hartford, CT 06103-3604
Tel. +1-860-616 9000
Fax. +1-860-616 9104
www.ubs.com/realestate-us
be delayed. Past performance is not indicative of future results and the
possibility of loss does exist. In the US, investment in the Fund is offered by
UBS Fund Services (USA) LLC member FINRA and SIPC. In no circumstances
may this document or any of the information included herein (including
any forecast, value, index or other calculated amount ("Values")) be used
for any of the following purposes: (i) valuation or accounting purposes;
(ii) determine the amounts due or payable, the price or the value of any
financial instrument, investment fund or financial contract; or (iii) to measure the performance of any investment fund or other financial instrument
including, without limitation, for the purpose of tracking the return or
performance of any Value or of defining the asset allocation of portfolio
or of computing performance fees.
Ownership interests in the Fund are not endorsed or guaranteed by UBS
AG, UBS Realty Investors LLC, UBS Fund Services (USA) LLC, any of their
affiliates or any other banking entity, and are not insured by the federal
deposit insurance corporation or any other governmental agency. Any
losses in the Fund will be borne solely by investors in the Fund and not by
UBS AG, UBS Realty Investors LLC, UBS Fund Services (USA) LLC or any of
their affiliates. Therefore, losses of UBS AG, UBS Realty Investors LLC, UBS
Fund Services (USA) LLC or any of its affiliates' in the Fund will be limited
to losses attributable to the ownership interests in the covered Fund held
by UBS AG, UBS Realty Investors LLC, UBS Fund Services (USA) LLC or any
of its affiliates in their capacity as investors in the Fund. Investors should
always read the Fund offering documents prior to investing in the Fund
which includes a description of the roles of UBS AG, UBS Realty Investors
LLC, UBS Fund Services (USA) LLC and its affiliates in greater detail.
Canada (CA) Investors – Services to Canadian persons for any strategy
herein are provided by UBS Asset Management (Canada) Inc., a Nova
Scotia corporation and a member of the UBS Asset Management business
division of UBS AG, a publicly traded Swiss bank (NYSE: UBS). UBS Asset
Management (Canada) Inc. is an indirect wholly-owned subsidiary of UBS
AG and is registered as a portfolio manager and exempt market dealer (in
all provinces of Canada), commodity trading manager (Ontario), adviser
– commodity futures (Manitoba) and investment fund manager (Ontario,
Quebec and Newfoundland), all pursuant to Canadian securities law.
This document can be distributed to Accredited Investors and Permitted
Clients in Canada only. The investment or fund referred to in this presentation may be a connected or related issuer of UBS Asset Management
(Canada) Inc. in connection with a distribution of the investment or fund
to investors in Canada. Investment opportunities referred to herein are
available only to Permitted Clients in Canada.
Switzerland (CH): This document has been issued by UBS AG, a company registered under the Laws of Switzerland. The Fund is intended only
for Swiss qualified investors pursuant to Art 10 para. 3 et sqq. of the
Collective Investment Schemes Act (CISA). Information for Swiss Investors:
Representative in Switzerland: UBS Fund Management (Switzerland) AG,
Aeschenplatz 6, CH-4052 Basel. Paying Agent in Switzerland: UBS Switzerland AG, Bahnhofstrasse 45, CH-8001 Zurich. The relevant fund documents to this Fund (Private Placement Memorandum / Trust Investment /
Limited Partnership Agreement and the Annual Reports) are available free
of charge from the Representative in Switzerland. Before any investment,
please read the latest Legal Fund Documents. The information herein is
not intended to be construed as a solicitation or an offer to invest in the
Fund. Past performance is not a reliable indicator of future results. The
performance shown does not take account of any commissions and costs
charged when subscribing and redeeming. If the currency of the Fund
is different from your reference currency, the return can increase or decrease as a result of currency fluctuations. This information pays no regard
to the specific or future investment objectives, financial or tax situation
or particular needs of any specific recipient. The details and opinions contained in this document are provided by UBS Asset Management Funds
Ltd without any guarantee or warranty and are for the recipient's personal
use and information purposes only. This document and its contents have
not been reviewed by any regulatory authority in Switzerland.
Approval code: M-005965. Approved for CA, CH and US. © UBS 2026.
The key symbol and UBS are among the registered and unregistered
trademarks of UBS. All rights reserved. Published July 16, 2026.
Page 106 of 11347
Definitions & Disclosures
Please note: Due to rounding methodologies of various data providers, certain returns in this report might differ slightly when compared to other sources
REGULATORY DISCLOSURES
Offer of ADV Part 2A: Rule 204-3 under the Investment Advisers Act of 1940 requires that we make an annual offer to clients to send them, without charge, a written disclosure statement meeting the requirements of such rule.
We will be glad to send a copy of our ADV Part 2A to you upon your written request to [email protected].
INDEX DEFINITIONS
Benchmarks and financial indices are shown for discussion purposes only and should not be used in making any investment decision. They provide general market data that serves as point of reference to compare the
performance of a strategy with the performance of other securities that make up a particular market. Comparisons to any indices referenced herein are for illustrative purposes only and are not meant to imply that actual returns
or volatility will be similar to the indices. No representation is made that any benchmark or index is an appropriate measure for comparison. They do not reflect the actual cost of investing in the instruments that comprise it or
other fees. Indices cannot be invested in directly. Unmanaged index returns assume reinvestment of any and all distributions and do not reflect our fees or expenses.
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Citigroup 3 Month T-Bill measures monthly return equivalents of yield averages that are not marked to market. The Three-Month Treasury Bill Indexes consist of the last three three-month Treasury bill issues.
Citigroup Corporate Bond is an index which serves as a benchmark for corporate bond performance. You cannot invest directly in an index.
Citigroup Mortgage Master is an index which serves as a benchmark for U.S. mortgage-backed securities performance.
Citigroup WGBI Index is an index which serves as a benchmark for global bond performance, including 22 different government bond markets.
Credit Suisse High Yield Index is an unmanaged, trader priced index constructed to mirror the characteristics of the high yield bond market.
BC (Barclays Capital) U.S. Aggregate Bond Index represents securities that are U.S., domestic, taxable, and dollar dominated. The index covers the U.S. investment grade fixed rate bond market, with index components for
government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
BC Credit Bond Index includes publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SECregistered.
BC U.S. Corporate Investment Grade represents investment grade corporate securities that are U.S., domestic, taxable, and dollar denominated.
BC High Yield Corporate Bond represents below investment grade corporate securities that are U.D., domestic, taxable, and dollar denominated.
BC TIPS Index includes publicly issued U.S. government treasury inflation protected securities that meet the specified maturity, liquidity and other requirements.
BC Mortgage-Backed Securities covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARMs) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
BC Muni Bond covers the USD-denominated long-term tax-exempt bond market with four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds.
BC Government Index includes publicly issued U.S. government securities that meet the specified maturity, liquidity and other requirements.
BC Government Index includes publicly issued U.S. government securities that meet the specified maturity, liquidity and other requirements.
BarCap U.S. Aggregate 1-3 Yr. TR USD Index represents securities in the BC U.S.
Aggregate Index that have maturity dates over the next 1-3 years.
BarCap U.S. Aggregate 3-5 Yr. TR USD Index represents securities in the BC U.S. Aggregate Index that have maturity dates over the next 3-5 years.
BarCap U.S. Aggregate 5-7 Yr. TR USD Index represents securities in the BC U.S. Aggregate Index that have maturity dates over the next 5-7 years.
BarCap U.S. Aggregate 7-10 Yr. TR USD Index represents securities in the BC U.S. Aggregate Index that have maturity dates over the next 7-10 years.
BarCap U.S. Aggregate 10+ Yr. TR USD Index represents securities in the BC U.S. Aggregate Index that have maturity dates over 10 years.
Ryan 3 Yr. GIC is an arithmetic mean of market rates of $1 million Guaranteed Interest Contracts held for three years.
Bloomberg Treasury U.S. T-Bills-1-3 Month Index includes aged U.S. Treasury bills, notes and bonds with a remaining maturity from 1 up to (but not including) 3 months. It excludes zero coupon strips.
Bloomberg Capital US Treasury Inflation Protected Securities Index consists of Inflation-Protection securities issued by the U.S. Treasury.
Bloomberg Muni Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. Bonds must be rated investment-gradeby at least two ratings agencies.
Bloomberg Muni 1 Year Index is the 1-year (1-2) component of the Municipal Bond index.
Bloomberg Muni 3 Year Index is the 3-year (2-4) component of the Municipal Bond index.
Bloomberg Muni 5 Year Index is the 5-year (4-6) component of the Municipal Bond index.
Bloomberg Muni 7 Year Index is the 7-year (6-8) component of the Municipal Bond index.
Bloomberg Intermediate U.S. Gov’t/Credit is the Intermediate component of the U.S. Government/Credit index, which includes securities in the Government and Credit Indices. The Government Index includes treasuries
and agencies, while the credit index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements.
Bloomberg U.S. Aggregate Index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset backed securities.
Bloomberg Global Aggregate ex. USD Indices represent a broad-based measure of the global investment-grade fixed income markets. The two major components of this index are the Pan-European Aggregate and the
Asian-Pacific Aggregate Indices. The index also includes Euro dollar and Euro-Yen corporate bonds and Canadian government, agency and corporate securities.
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Bloomberg U.S. Corporate High Yield Index covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issues from countries designated as emerging markets (sovereign rating of Baa1/BBB+/BBB+
and below using the middle of Moody’s, S&P, and Fitch) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included.
JP Morgan Government Bond Index-Emerging Market (GBI-EM) Index is a comprehensive, global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government
bonds to which international investors can gain exposure.
The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major
industries.
The Dow Jones Industrial Index is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.
The NASDAQ is a broad-based capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market and Capital Market.
Russell 3000 is a market-cap-weighted index which consists of roughly 3,000 of the largest companies in the U.S. as determined by market capitalization. It represents nearly 98% of the investable U.S. equity market.
Russell 1000 consists of the largest 1000 companies in the Russell 3000 Index.
Russell 1000 Growth measures the performance of those Russell 1000 companies with higher P/B ratios and higher forecasted growth values.
Russell 1000 Value measures the performance of those Russell 1000 companies with lower P/B ratios and lower forecasted growth values.
Russell Mid Cap measures the performance of the 800 smallest companies in the Russell 1000 Index.
Russell Mid Cap Growth measures the performance of those Russell Mid Cap companies with higher P/B ratios and higher forecasted growth values.
Russell Mid Cap Value measures the performance of those Russell Mid Cap companies with lower P/B ratios and lower forecasted growth values.
Russell Top 200 Growth Index is a market-capitalization weighted index of those firms in the Russell Top 200 with higher price-to-book ratios and higher forecasted growth values.
Russell Top 200 Value Index is a market-capitalization weighted index of those firms in the Russell Top 200 with lower price-to-book ratios and lower forecasted growth values.
Russell 2000 consists of the 2,000 smallest U.S. companies in the Russell 3000 index.
Russell 2000 Growth measures the performance of the Russell 2000 companies with higher P/B ratios and higher forecasted growth values.
Russell 2000 Value measures the performance of those Russell 2000 companies with lower P/B ratios and lower forecasted growth values.
Russell 2500 consists of the 2,500 smallest U.S. companies in the Russell 3000 index.
Russell 2500 Growth measures the performance of the Russell 2500 companies with higher P/B ratios and higher forecasted growth values.
Russell 2500 Value measures the performance of those Russell 2500 companies with lower P/B ratios and lower forecasted growth values.
MSCI World captures large and mid-cap representation across 23 Developed Markets countries. With 1,645 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each
country.
MSCI Europe ex UK Index is a rules-based index that serves as a benchmark for Europe’s equity markets, excluding the United Kingdom.
MSCI Pacific ex Japan Index is a rules-based index that serves as a benchmark for Asia Pacific’s equity markets, excluding Japan.
MSCI United Kingdom Index is a rules-based index that serves as a benchmark for the United Kingdom’s equity markets.
MSCI Japan is a rules-based index that serves as a benchmark for Japan’s equity markets.
MSCI ACWI (All Country World Index) ex. U.S. Index captures large and mid-cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 23 Emerging Markets countries. With 1,859
constituents, the index covers approximately 85% of the global equity opportunity set outside the US.
MSCI ACWI (All Country World Index) ex. U.S. Small Cap Index captures small cap representation across 22 of 23 Developed Markets countries (excluding the US) and 23 Emerging Markets countries. With 4,368
constituents, the index covers approximately 14% of the global equity opportunity set outside the US.
MSCI FI Emerging Markets is a rules-based index which serves as a benchmark for emerging country fixed income performance.
MSCI FI EAFE International is a rules-based index which serves as a benchmark for developed international country fixed income performance.
MSCI EAFE is an equity index which captures large and mid-cap representation
MSCI EAFE Value captures large and mid-cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada. The value investment style
characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. With 507 constituents, the index targets 50% coverage of the free floatadjusted market capitalization of the MSCI EAFE Index.
MSCI EAFE Growth captures large and mid-cap securities exhibiting overall growth style characteristics across Developed Markets countries around the world, excluding the US and Canada. The growth investment style
characteristics for index construction are defined using five variables: 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. With 542 constituents, the index targets 50% coverage of the free float-adjusted market capitalization of the MSCI EAFE Index.
MSCI Emerging Markets captures large and mid-cap representation across 23 Emerging Markets countries. With 836 constituents, the index covers approximately 85% of the free-float adjusted market capitalization in
each country.
Consumer Price Index is a measure of prices paid by consumers for a market basket of consumer goods and services. The yearly (or monthly) growth rates represent the inflation rate.
FTSE NAREIT Equity REITs Index contains all Equity REITs not designed as Timber REITs or Infrastructure REITs.
NAREIT AII REIT Index includes all tax-qualified REITs with common shares that trade on the New York Stock Exchange the American Stock Exchange or the NASDAQ National Market List.
Salomon 1-10 Yr. Governments is an index which serves as a benchmark for U.S. Government bonds with maturities ranging from 1 to 10 years.
S&P 500 Index measures the performance of the largest 500 U.S. common equity securities, and serves as an index of large cap stocks traded in the U.S.
S&P 1500 Energy Index measures the performance of the energy sector in the S&P
1500 Index.
S&P Global REIT serves as a comprehensive benchmark of publicly traded equity REITs listed in both developed and emerging markets.
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S&P 1500 Industrials measures the performance of the industrial sector in the S&P
1500 Index.
S&P 1500 Financials measures the performance of the financials sector in the S&P
1500 Index.
S&P 1500 Utilities measures the performance of the utilities sector in the S&P 1500 Index.
S&P 1500 Consumer Discretionary Index measures the performance of the consumer discretionary sector in the S&P 1500 Index.
S&P 1500 Consumer Staples Index measures the performance of the consumer staples sector in the S&P 1500 Index.
S&P 1500 Information Technology measures the performance of the information technology sector in the S&P 1500 Index.
S&P 1500 Materials measures the performance of the materials sector in the S&P
1500 Index.
S&P 1500 Health Care measures the performance of the health care sector in the S&P 1500 Index.
S&P 1500 Telecommunications Services Index measures the performance of the telecommunications services sector in the S&P 1500 Index.
S&P Developed World Property defines and measures the investable universe of publicly traded property companies domiciled in developed markets. The companies in the index are engaged in real estate related
activities, such as property ownership, management, development, rental and investment.
S&P Developed World Property x U.S. defines and measures the investable universe of publicly traded property companies domiciled in developed countries outside of the U.S. The companies included are engaged in real
estate related activities, such as property ownership, management, development, rental and investment.
Fund Specific Broad Real Asset Benchmarks:
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DWS Real Assets: 30%: Dow Jones Brookfield Infrastructure Index, 30%: FTSE EPRA/NAREIT Developed Index,15%: Bloomberg Commodity Index, 15%: S&P Global Natural Resources Index, 10%: U.S. Treasury
Inflation Notes Total Return Index
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PIMCO Inflation Response Multi Asset Fund: 45% Bloomberg U.S. TIPS, 20% Bloomberg Commodity Index, 15% JP Morgan Emerging Local Markets Plus, 10% Dow Jones Select REIT, 10% Bloomberg Gold
Subindex Total Return
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Principal Diversified Real Assets: 35% BBgBarc U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index NTR, 20% S&P Global Natural Resources Index NTR, 15% Bloomberg Commodity Index, and 10% FTSE
EPRA/NAREIT Developed Index NTR
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Wellington Diversified Inflation H: 50% MSCI ACWI Commodity Producers Index, 25% Bloomberg Commodity Index, and 25% Bloomberg Bloomberg US TIPS 1 – 10 Year Index
Bloomberg Commodity Index is calculated on an excess return basis and reflects commodity futures price movements. The index rebalances annually weighted 2/3 by trading volume and 1/3 by world production and
weight-caps are applied at the commodity, sector and group level for diversification.
HFRI Fund Weighted Composite Index is a global, equal-weighted index of over 2,000 single-manager funds that report to HFR Database. Constituent funds report monthly net of all fees performance in US Dollar and
have a minimum of $50 Million under management or a twelve (12) month track record of active performance. The HFRI Fund Weighted Composite Index does not include Funds of Hedge Funds.
The Alerian MLP Index is the leading gauge of energy Master Limited Partnerships (MLPs). The float adjusted, capitalization-weighted index, whose constituents represent approximately 85% of total float-adjusted market
capitalization, is disseminated real-time on a price-return basis (AMZ) and on a total-return basis.
The Adjusted Alerian MLP Index is commensurate with 65% of the monthly returns of the Alerian MLP Index to incorporate the effect of deferred tax liabilities incurred by MLP entities.
Cambridge Associates U.S. Private Equity Index is based on data compiled from more than 1,200 institutional-quality buyout, growth equity, private equity energy, and mezzanine funds formed between 1986 and 2017.
Cambridge Associates U.S. Venture Capital Index is based on data compiled from over1,600 institutional-quality venture capital funds formed between 1986 and 2017.
Vanguard Spliced Bloomberg US1-5Yr Gov/Cr Flt Adj Index: Bloomberg U.S. 1–5 Year Government/Credit Bond Index through December 31, 2009; Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index
thereafter.
Vanguard Spliced Bloomberg US5-10Yr Gov/Cr Flt Adj Index: Bloomberg U.S. 5–10 Year Government/Credit Bond Index through December 31, 2009; Bloomberg U.S. 5–10 Year
Government/Credit Float Adjusted Index thereafter.
Vanguard Spliced Bloomberg US Agg Flt Adj Index: Bloomberg U.S. Aggregate Bond Index through December 31, 2009; Bloomberg U.S. Aggregate Float Adjusted Index thereafter.
Vanguard Spliced Bloomberg US Long Gov/Cr Flt Adj Index: Bloomberg U.S. Long Government/Credit Bond Index through December 31, 2009; Bloomberg U.S. Long Government/Credit Float Adjusted Index thereafter.
Vanguard Balanced Composite Index: Made up of two unmanaged benchmarks, weighted 60% Dow Jones U.S. Total Stock Market Index (formerly the Dow Jones Wilshire 5000 Index) and 40% Bloomberg U.S. Aggregate
Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Bloomberg U.S. Aggregate Bond Index through December 31, 2009; 60% MSCI US Broad Market Index and 40% Bloomberg U.S. Aggregate
Float Adjusted Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Blomberg U.S. Aggregate Float Adjusted Index thereafter.
Vanguard Spliced Intermediate-Term Tax-Exempt Index: Bloomberg 1–15 Year Municipal Bond Index.
Vanguard Spliced Extended Market Index: Dow Jones Wilshire 4500 Index through June 17, 2005; S&P Transitional Completion Index through September 16, 2005; S&P Completion Index thereafter.
Vanguard Spliced Value Index: S&P 500 Value Index (formerly the S&P 500/Barra Value Index) through May 16, 2003; MSCI US Prime Market Value Index through April 16, 2013; CRSP US Large Cap Value Index thereafter.
Vanguard Spliced Large Cap Index: Consists of MSCI US Prime Market 750 Index through January 30, 2013, and the CRSP US Large Cap Index thereafter.
Vanguard Spliced Growth Index: S&P 500 Growth Index (formerly the S&P 500/Barra Growth Index) through May 16, 2003; MSCI US Prime Market Growth Index through April 16, 2013; CRSP US Large Cap Growth Index
thereafter.
Vanguard Spliced Mid Cap Value Index: MSCI US Mid Cap Value Index through April 16, 2013; CRSP US Mid Cap Value Index thereafter.
Vanguard Spliced Mid Cap Index: S&P MidCap 400 Index through May 16, 2003; the MSCI US Mid Cap 450 Index through January 30, 2013; and the CRSP US Mid Cap Index thereafter.
Vanguard Spliced Mid Cap Growth Index: MSCI US Mid Cap Growth Index through April 16, 2013; CRSP US Mid Cap Growth Index thereafter.
Vanguard Spliced Total Stock Market Index: Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005; MSCI US Broad Market Index through June 2, 2013;
and CRSP US Total Market Index thereafter.
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Vanguard Spliced Small Cap Value Index: SmallCap 600 Value Index (formerly the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US Small Cap Value Index through April 16, 2013; CRSP US Small Cap
Value Index thereafter.
Vanguard Spliced Small Cap Index: Russell 2000 Index through May 16, 2003; the MSCI US Small Cap 1750 Index through January 30, 2013; and the CRSP US Small Cap Index thereafter.
Vanguard Spliced Small Cap Growth Index: S&P SmallCap 600 Growth Index (formerly the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US Small Cap Growth Index through April 16, 2013; CRSP US
Small Cap Growth Index thereafter.
Vanguard Spliced Total International Stock Index: Consists of the Total International Composite Index through August 31, 2006; the MSCI EAFE + Emerging Markets Index through December 15, 2010; the MSCI ACWI ex
USA IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter. Benchmark returns are adjusted for withholding taxes.
Vanguard Spliced Developed Markets Index: MSCI EAFE Index through May 28, 2013; FTSE Developed ex North America Index through December 20, 2015; FTSE Developed All Cap ex US Transition Index through May 31,
2016; FTSE Developed All Cap ex US Index thereafter. Benchmark returns are adjusted for withholding taxes.
Vanguard Spliced Emerging Markets Index: Select Emerging Markets Index through August 23, 2006; MSCI Emerging Markets Index through January 9, 2013; FTSE Emerging Transition Index through June 27, 2013; FTSE
Emerging Index through November 1, 2015; and FTSE Emerging Markets All Cap China A Transition Index thereafter. Benchmark returns are adjusted for withholding taxes.
Vanguard REIT Spliced Index: MSCI US REIT Index adjusted to include a 2% cash position (Lipper Money Market Average) through April 30, 2009; MSCI US REIT Index through January 31, 2018; MSCI US Investable Market
Real Estate 25/50 Transition Index through July 24, 2018; MSCI US Investable Market Real Estate 25/50 Index thereafter.
Additional:
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Equity sector returns are calculated by Russell and MSCI for domestic and international markets, respectively. MSCI sector definitions correspond to the MSCI GICS® classification (Global Industry Classification System);
Russell uses its own sector and industry classifications.
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MSCI country returns are calculated by MSCI and are free float-adjusted market capitalization indices that are designed to measure equity market performance in each specific country.
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Currency returns are calculated using Bloomberg’s historical spot rate indices and are calculated using the U.S. dollar as the base currency.
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The Index of Leading Economic Indicators, calculated by The Conference Board, is used as a barometer of economic activity over a range of three to six months. The index is used to determine the direction and stability of
the economy. The composite index of leading indicators, which is derived from 10 leading indicators, helps to signal turning points in the economy and forecast economic cycles. The leading indicators are the following:
average weekly hours, average weekly initial claims, manufacturers’ new orders, both consumer and non-defense capital goods, vendor performance, building permits, stock prices, money supply (M2), the interest rate
spread and the index of consumer expectations.
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S&P Target Date Indexes are constructed using a survey method of current target date investments with $100 million or more in assets under management. Allocations for each vintage are comprised of exchange traded
funds that represent respective asset classes used in target date portfolios. The indexes are designed to represent a market consensus glide path.
DEFINITION OF KEY STATISTICS AND TERMS
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Returns: A percentage figure used when reporting historical average compounded rate of investment return. All returns are annualized if the period for which they are calculated exceeds one year.
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Universe Comparison: The universe compares the fund's returns to a group of other investment portfolios with similar investment strategies. The returns for the fund, the index and the universe percentiles are displayed.
A percentile ranking of 1 is the best, while a percentile ranking of 100 is the worst. For example, a ranking of 50 indicates the fund outperformed half of the universe. A ranking of 25 indicates the fund was in the top 25% of
the universe,outperforming75%.
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Returns In Up/Down Markets: This measures how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as
defined by the index, was positive and negative. Quarters with negative index returns are treated as down markets, and quarters with positive index returns are treated as up markets. Thus, in a 3 year or 12 quarter period,
there might be 4 down quarters and 8 up quarters. A simple arithmetic average of returns is calculated for the fund and the index based on the up quarters. A simple arithmetic average of returns is calculated for the fund
and the index based on the down quarters. The up market capture ratio is the ratio of the fund's return in up markets to the index. The down market capture ratio is the ratio of the fund's return in down markets to the
index. Ideally, the fund would have a greater up market capture ratio than down market capture ratio.
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Standard Deviation: Standard deviation is a statistical measure of the range of performance within which the total returns of a fund fall. When a fund has a high standard deviation, the range of performance is very wide,
meaning there is a greater volatility. Approximately 68% of the time, the total return of any given fund will differ from the average total return by no more than plus or minus the standard deviation figure. Ninety-five
percent of the time, a fund’s total return will be within a range of plus or minus two times the standard deviation from the average total return. If the quarterly or monthly returns are all the same the standard deviation
will be zero. The more they vary from one another, the higher the standard deviation. Standard deviation can be misleading as a risk indicator for funds with high total returns because large positive deviations will increase
the standard deviation without a corresponding increase in the risk of the fund. While positive volatility is welcome, negative is not.
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R-Squared: This reflects the percentage of a fund’s movements that are explained by movements in its benchmark index. An R-squared of 100 means that all movements of a fund are completely explained by movements
in the index. Conversely, a low R-squared indicates very few of the fund’s movements are explained by movements in the benchmark index. R-squared can also be used to ascertain the significance of a particular beta.
Generally, a higher R-squared will indicate a more reliable beta figure. If the R-squared is lower, then the beta is less relevant to the fund’s performance. A measure of diversification, R-squared indicates the extent to
which fluctuations in portfolio returns are explained by market. An R-squared = 0.70 implies that 70% of the fluctuation in a portfolio's return is explained by the fluctuation in the market. In this instance, overweighting or
underweighting of industry groups or individual securities is responsible for 30% of the fund's movement.
•
Beta: This is a measure of a fund’s market risk. The beta of the market is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the market in up markets and 10% worse that the market in down
markets. It is important to note, however, a low fund beta does not imply the fund has a low level of volatility; rather, a low beta means only that the fund’s market-related risk is low. Because beta analyzes the market risk
of a fund by showing how responsive the fund is to the market, its usefulness depends on the degree to which the markets determine the fund's total risk (indicated by R-squared).
•
Alpha: The Alpha is the nonsystematic return, or the return that can’t be attributed to the market. It can be thought of as how the manager performed if the market’s return was zero. A positive alpha implies the manager
added value to the return of the portfolio over that of the market. A negative alpha implies the manager did not contribute any value over the performance of the market.
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Sharpe Ratio: The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. Higher numbers are better, indicating more return for the level of risk experienced. The ratio is a fund's return
minus the risk-free rate of return (30-day T-Bill rate) divided by the fund’s standard deviation. The higher the Sharpe ratio, the more reward you are receiving per unit of total risk. This measure can be used to rank the
performance of mutual funds or other portfolios.
•
Treynor Ratio: The Treynor ratio measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The ratio relates excess return over the risk-free rate to the
additional risk taken; however, systematic risk is used instead of total risk. The Treynor ratio is similar to the Sharpe ratio, except in the fact that it uses the beta to evaluate the returns rather than the standard deviation of
portfolio returns. High values mean better return for risk taken.
Tracking Error: Tracking error measures the volatility of the difference in annual returns between the manager and the index. This value is calculated by measuring the standard deviation of the difference between the manager
and index returns. For example, a tracking error of +/- 5 would mean there is about a 68% chance (1 standard deviation event) that the manager's returns will fall within +/- 5% of the benchmark's annual return.
•
Information Ratio: The information ratio is a measure of the consistency of excess return. This value is determined by taking the annualized excess return over a benchmark (style benchmark by default) and dividing it by
the standard deviation of excess return.
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Consistency: Consistency shows the percent of the periods the fund has beaten the index and the percent of the periods the index has beat the fund. A high average for the fund (e.g., over 50) is desirable, indicating the
fund has beaten the index frequently.
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Downside Risk: Downside risk is a measure similar to standard deviation but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of
returns. The higher the factor, the riskier the product.
•
M-Squared: M-squared, or the Modigliani risk-adjusted performance measure is used to characterize how well a portfolio’s return rewards an investor for the amount of risk taken, relative to that of some benchmark
portfolio and to the risk-free rate.
•
Asset allocation strategies: investment strategies that invest in a broad array of asset classes that may include U.S. equity, international equity, emerging markets, real estate, fixed income, high yield bonds and cash (to
name a few asset classes). These strategies are typically structured in either a risk-based format (the strategies are managed to a level of risk, e.g., conservative or aggressive) or, in an age-based format (these strategies
are managed to a retirement date or life expectancy date, typically growing more conservative as that date is approached).
•
Excess return: the difference between the returns of a mutual fund and its benchmark.
•
Explained variance: the explained variance measures the variance of the fund that is explained by the benchmark (similar to the R-squared statistic).
•
Median rank: refers to the midpoint of the range numbers that are arranged in order of value (lowest to highest).
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Passive strategies: investment strategies where the fund manager is trying to track or replicate some area of the market. These types of strategies may be broad-based in nature (e.g., the fund manager is trying to
track/replicate the entire U.S. equity market like the S&P 500) or may be more specific to a particular area of the market (e.g., the fund manager may be trying to track/replicate the technology sector). These investment
strategies typically have lower costs than active investment strategies due to their passive nature of investing and are commonly referred to as index funds.
•
Style drift: is the tendency of a fund to deviate from its investment style over time is style drift. This generally occurs because of a change in the fund’s strategy, the manager’s philosophy or even a portfolio manager
change.
•
Volatility of rank: is measured by taking the median of a series of numbers, or taking the absolute value of the distance of each individual number to that median, then finding the median of those distances. Volatility is
used because it makes a better companion to the median than the standard deviation. Standard deviation is commonly used when measuring volatility around the mean (average), while volatility of rank is used for
medians.
•
DEFINITION OF KEY PRIVATE EQUITY TERMS
•
PIC (Paid in Capital): The amount of committed capital that has been transferred from the limited partner to the general partner.
•
TVPI (Total Value to Paid in Capital): Money returned to limited partners plus the fund’s unrealized investments, divided by money paid-in to the partnership. The TVPI should equal RVPI plus DPI.
•
DPI (Distribution to Paid In Capital): Money returned (distributions) to limited partners divided by money paid in to the partnership. Also called cash-on-cash multiple.
•
RVPI (Residual Value to Paid In Capital): The value of a fund’s unrealized investments divided by money paid-in to the partnership.
•
Internal rate of return (IRR): This is the most appropriate performance benchmark for private equity investments. It is a time-weighted return expressed as a percentage. IRR uses the present sum of cash drawdowns
(money invested), the present value of distributions (money returned from investments) and the current value of unrealized investments and applies a discount.
•
Commitment: Every investor in a private equity fund commits to investing a specified sum of money in the fund partnership over a specified period of time. The fund records this as the limited partnership’s capital
commitment. The sum of capital commitments is equal to the size of the fund.
•
Capital Distribution: These are the returns that an investor in a private equity fund receives. It is the income and capital realized from investments less expenses and liabilities. Once a limited partner has had their cost of
investment returned, further distributions are actual profit. The partnership agreement determines the timing of distributions to the limited partner. It will also determine how profits are divided among the limited
partners and general partner.
•
Carried Interest: The share of profits that the fund manager is due once it has returned the cost of investment to investors. Carried interest is normally expressed as a percentage of the total profits of the fund.
•
Co-Investment: Co-Investments are minority investments made alongside a private equity investor in an LBO, a recapitalization, or an expansion capital transaction. It is a passive, non-controlling investment, as the private
equity firm involved will typically exercise control and perform monitoring functions.
•
General Partner (GP): This can refer to the top-ranking partners at a private equity firm as well as the firm managing the private equity fund.
•
GP Commitments: It is normal practice for the GP managing a private equity fund to also make a financial commitment to the fund on the same basis as the LPs in the fund, and this is seen as an important factor driving
the alignment of GP and LP interests. The historic benchmark for GP commitments has been 1% of the total fund size, but this is by no means universal, and many GPs commit significantly larger amounts. Furthermore,
there has been a marked trend towards GPs making larger commitments to their funds over recent years.
•
Leveraged Buy-Out (LBO): The acquisition of a company using debt and equity finance.
•
Limited Partner (LP): Institutions or high-net-worth individuals/sophisticated investors that contribute capital to a private equity fund.
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•
•
Public Market Equivalent (PME): Performance measure used to evaluate performance relative to the market. It is calculated as the ratio of the discounted value of the LP’s inflows divided by the discounted value of
outflows, with the discounting performed using realized market returns.
Primaries: An original investment vehicle that invests directly into a company or asset.
VALUATION POLICY
Wealthspire Institutional does not engage an independent third-party pricing service to value securities. Our reports are generated using the security prices provided by custodians used by our clients. Our custodial pricing hierarchy is
available upon request. If a client holds a security not reported by the first custodian within the hierarchy, the valuation is generated from the next custodian within the hierarchy, and so forth. Each custodian uses pricing services
from outside vendors, where the vendors may generate nominally different prices. Therefore, this report can reflect minor valuation differences from those contained in a custodian’s report. In rare instances where FA overrides a
custodial price, prices are taken from Bloomberg.
REPORTING POLICY
Wealthspire Institutional, a division of Wealthspire, is inclusive of Fiducient Advisors LLC and Wealthspire Retirement, LLC dba Wealthspire Retirement Advisory, each separately registered investment advisers. This report is intended
for the exclusive use of the client listed within the report. Content is privileged and confidential. Any dissemination or distribution is strictly prohibited. Information has been obtained from a variety of sources believed to be reliable
though not independently verified. Any forecast represents median expectations and actual returns, volatilities and correlations will differ from forecasts. Please note each client has customized investment objectives and constraints
and the investment strategy for each portfolio is based on a client-specific asset allocation model. Past performance does not indicate future performance and there is a possibility of a loss. Performance calculated net of investment
fees. Certain portfolios presented may be gross of Wealthspire Institutional’s fees and actual performance would be reduced by investment advisory fees. This report does not represent a specific investment recommendation. Please
consult with your advisor, attorney, and accountant, as appropriate, regarding specific advice. Investment advisory services offered through Wealthspire Institutional, LLC or Wealthspire Retirement, LLC each separately registered
investment advisers.
Custodian reports are the reports that govern the account. There will be different account values between Wealthspire Institutional’s reports and the custodian reports based on whether the report utilizes trade date or settlement
date to calculate value. Additionally, difference between values contained on reports may be caused by different accrued income values. Any forecasts represent future expectations and actual returns, volatilities and correlations will
differ from forecasts. This report does not represent a specific investment recommendation. Please consult with your advisor, attorney, and accountant, as appropriate, regarding specific advice. Past performance does not indicate
future performance and there is a possibility of a loss.
Manager performance for mutual funds and ETFs is based on NAV and provided by Lipper. Performance for non-mutual fund or ETF investments is based on the returns provided by managers, calculations based on a manager
statement, or calculations based on a statement or data from the client’s custodian. Unless specified otherwise, all returns are net of individual manager fees, represent total returns and are annualized for periods greater than one
year. The deduction of fees produces a compounding effect that reduces the total rate of return over time. As an example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee
assessment, (b) $1,000,000 investment, (c) portfolio return of 8% a year, and (d) 0.50% annual investment advisory fee would be $5,228 in the first year, and cumulative effects of $30,342 over five years and $73,826 over ten years.
Additional information on advisory fees charged by Wealthspire Institutional are described in Part 2 of the Form ADV.
MATERIAL RISKS & LIMITATIONS
Fixed Income securities are subject to interest rate risks, the risk of default and liquidity risk. U.S. investors exposed to non-U.S. fixed income may also be subject to currency risk and fluctuations.
-Liability Driven Investing (LDI) Assets
Cash may be subject to the loss of principal and over longer period of time may lose purchasing power due to inflation.
-Short Term Liquidity
Domestic Equity can be volatile. The rise or fall in prices take place for a number of reasons including, but not limited to changes to underlying company conditions, sector or industry factors, or other macro events. These may
happen quickly and unpredictably.
The returns from the types of securities in which an ETF and mutual fund invests may underperform returns from the various general securities markets or different asset classes. The securities in the underlying indexes may
underperform fixed-income investments and stock market investments that track other markets, segments and sectors. Different types of securities tend to go through cycles of out-performance and underperformance in
comparison to the general securities markets.
Value of investments in client portfolios can be impacted by changes in the level of interest rates, the spread between rates, the shape of the yield curve and other rate related movements. These changes can be unpredictable and
can cause losses.
International Equity can be volatile. The rise or fall in prices take place for a number of reasons including, but not limited to changes to underlying company conditions, sector or industry impacts, or other macro events. These may
happen quickly and unpredictably. International equity allocations may also be impact by currency and/or country specific risks which may result in lower liquidity in some markets.
Investment strategies focusing on large-cap companies may underperform other equity investment strategies as large cap companies may not experience sustained periods of growth in the mature product markets in which they
operate.
Some investments are subject to limited liquidity. This means clients are not able to buy or sell securities quickly enough to prevent or minimize a loss. In addition, clients can be subject to high costs or losses due to wide bid-ask
spreads or large price movements. In times of crisis, liquidity risk can even affect investments generally deemed “safe,” including money market funds and similar investments.
Marketable Alternatives involves higher risk and is suitable only for sophisticated investors. Along with traditional market risks, marketable alternatives are also subject to higher fees, lower liquidity and the potential for leverage
that may amplify volatility or the potential for loss of capital. Additionally, short selling involved certain risks including, but not limited to additional costs, and the potential for unlimited loss on certain short sale positions.
Real Assets can be volatile and may include asset segments that may have greater volatility than investment in traditional equity securities. Such volatility could be influenced by a myriad of factors including, but not limited to overall
market volatility, changes in interest rates, political and regulatory developments, or other exogenous events like weather or natural disaster.
Portfolio, volatility or return targets or objectives, if any, are used solely for illustration, measurement or comparison purposes and as an aid or guideline for prospective investors to evaluate a particular strategy. Volatility and
performance will fluctuate, including over short periods, and should be evaluated over the time period indicated and not over shorter periods. Actual volatility and returns will depend on a variety of factors including overall market
conditions and the ability to implement the appropriate investment process, investment objectives and risk management.
Private Equity involves higher risk and is suitable only for sophisticated investors. Along with traditional equity market risks, private equity investments are also subject to higher fees, lower liquidity and the potential for leverage that
may amplify volatility and/or the potential loss of capital.
Private Credit involves higher risk and is suitable only for sophisticated investors. These assets are subject to interest rate risks, the riskof default and limited liquidity. U.S. investors exposed to non-U.S. private credit may also be
subject to currency risk and fluctuations.
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Private Real Estate involves higher risk and is suitable only for sophisticated investors. Real estate assets can be volatile and may include unique risks to the asset class like leverage and/or industry, sector or geographical
concentration. Declines in real estate value may take place for a number of reasons including, but are not limited to economic conditions, change in condition of the underlying property or defaults by the borrow.
Investment strategies focusing on small- and mid-cap stocks involve more risk than strategies focused on larger more established companies because small- and mid-cap companies may have smaller revenue, narrower product lines,
less management depth, small market share, fewer financial resources and less competitive strength.
OTHER
By regulation, closed-end funds utilizing debt for leverage must report their interest expense, as well as their income tax expense, as part of their total expense ratio. To make for a useful comparison between closed-end funds and
both open-end funds and exchange-traded funds, adjusted expense ratios excluding interest and income tax expenses are utilized for closed-end funds within this report. See disclosure on closed-end fund fact sheets for information
regarding the total expense ratio of each closed-end fund.
Please advise us of any changes in your objectives or circumstances.
CUSTODIAN STATEMENTS
Please remember to review the periodic statements you receive from you custodian. If you do not receive periodic statements from your custodian or notice issues with the activity reported in those statements, please contact FA or
your custodian immediately.
Page 113 of 11354
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