The BEAT

Bonds | Equities | Alternatives | Transition

May 2025

Previously known as the Monthly Market Monitor.

The BEAT | May 2025
 The BEAT, previously known as the Monthly Market Monitor, provides connectivity between
TOP IDEAS changing market events and implications for investor portfolios.

3 Spanning Bonds, Equities, Alternatives and Transition *, this monthly review provides timely
information across a broad array of markets and investment topics.

BONDS Each edition explores investment ideas, identifies areas of focus and provides a
comprehensive outlook on asset allocation — all supported by a concise review of economic
23 and asset class data through clear and impactful charts.

We believe The BEAT is a critical desk reference that enables more informed discussion and
EQUITIES
understanding of financial markets.
35
17
29
3
ALTERNATIVES
46
If you are viewing this book on your computer or
TRANSITION tablet, click or tap on the section box to jump to
the beginning of each section.
52

Data provided is for informational use only. See end of report for important additional information.
*Transition is an asset allocation view, which refers to cash, cash equivalents or liquid short-duration assets, such as short-dated Treasuries, that can be used to “transition” to other
asset classes.

The BEAT | May 2025 2

TOP IDEAS

Key Themes for May 2025

Loss of Faith in U.S. Assets? High Correlation Risks
No! We think the narrative in which there is a loss of trust and faith Equities vs. Bond Returns. It's not supposed to work this way!
in U.S. assets - including the U.S. dollar’s (USD) reserve currency Longer duration bond yields rose as equities sold off, leaving many
status - is a great extrapolation and exaggeration of the truth. We to question if there is loss of confidence in USTs. We do not think
believe the USD's performance has mainly been tied to U.S. equity this is the case, rather there is a technical explanation: 1) Equity
asset performance over the last several years. This prompted an and bond return correlations have been rising for the last several
exponential rise in foreign assets converting local currency into years and historically become more highly correlated when inflation
USDs to buy U.S. assets. As equity prices fell, there was a persists above the 2% target level; 2) A technical unwind of the
repatriation of USDs back into local currency, causing the USD to “basis trade” (short bond futures v. USTs). Many “fast money”
fall. This spilled over into U.S. Treasuries (USTs) as well. There are players had this levered arbitrage position on and were forced to
many other factors at work, but we think this is the main one. Once rapidly sell USTs to raise cash against falling equity prices. This
a clearing price is reached to adjust for current risks, the USD and was a large part of the reason Treasury bonds sold off when
assets will resume more traditional relationships. equities fell.

Where's the Put? Fiscal Policy Is Up Next

The Fed, or Trump, Put. A common question asked is where the From Tariffs to Taxes. We explained the three components to Trump's
“policy put” may reside in the markets. The reference is the “Fed policy process: 1) deregulation, 2) tariffs and 3) taxes. 1 & 2 are
put” where the Fed may ease policy to support a weakening equity underway, now we start on 3. So far, Trump's budget has been voted on
market. The “Trump put” refers to where communication around and approved to be done through a procedural process called
tariff and fiscal policy may change to support the equity market. reconciliation, which only requires a simple majority, making it easier to
Judging by recent history, the communication on tariff policy pass. In addition to making the 2017 Tax Cut and Jobs Act (TCJA)
changed when the S&P 500 fell toward the 4850 level, so this may permanent, there may be an increase in State and Local Tax (SALT)
represent a support level for equities. But the monetary policy side deductions and possibly a reduction in corporate taxes, et. al. None of
may be more complicated because inflation is running higher than this is known at the moment, but between the potential for tariff
target, making the Fed more reluctant to cut. However, the Fed may negotiations and the possibility of friendly tax policy, there could be some
respond more to a rise in the unemployment rate to 4.5% or higher positive offsets to the negative news surrounding tariffs in April. Will the
than to a level in the equity market. So, there may still be a Fed put, positives outweigh the negatives? Probably not, but given how negative
but it's struck against the 4.5% unemployment rate. sentiment has become, positive news has the potential to punch above
its weight.

The views and opinions expressed are those of the Portfolio Solutions Group at the time of writing of this presentation and are subject to change at any time due to market, economic, or
other conditions, and may not necessarily come to pass. Not to be construed as an investment or research recommendation.

The BEAT | May 2025 3

TOP IDEAS

The Portfolio Solutions Group – Our Top 5 Ideas

Adding Duration Europe Is Not Germany, and Germany Is Not Europe
Dislocation in USTs present a buying opportunity. As stated, we see the Increasing exposure to Germany. In Europe we continue to look for market
rise in UST yields as mainly technical in nature and we do not believe they are segments that are relatively less exposed to tariff risks, and are direct
losing safe-haven status. The backup in UST yields is largely due to an beneficiaries of the nascent fiscal stimulus wave. German mid-caps fit this bill,
unwinding of the basis trade, a leveraged way to own USTs, that was rapidly as the incoming government’s agenda seeks to prioritize re-industrialization
unwound to raise cash by fast money traders as equities sold-off extremely by incentivizing equipment and infrastructure investments, cutting
quickly. If the U.S. economy is slowing due to tariffs, and recession risks are bureaucratic red tape and reducing energy costs. While this will have benefits
rising, we then believe longer duration USTs have both outright and hedging for the broader European ecosystem, we think German mid-caps will stand to
value to investors. Additionally, the Fed is very capable of managing a benefit the most.
disorderly sell-off of USTs, where we think they will readily intercede to
provide support if needed.

Taking a Breather in Emerging Market Debt (EMD) Exiting Materials Overweight

Tactically reducing an asset class that has outperformed. For a given When all that glitters is gold. Earlier this year we initiated an overweight in
credit rating, EMD generally offers spread pickup versus corporate credit. U.S. materials to gain leverage to a burgeoning recovery in U.S.
Today, spreads versus corporate credit look expensive compared to historical manufacturing and manufacturing Purchasing Managers’ Indexes (PMIs).
averages, albeit still slightly positive. This is understandable as the USD has While we saw some green shoots emerge in early 2025, a worse-than-
weakened versus most currencies, making it easier for countries to repay their expected tariff outcome has effectively halted the recovery and sent PMIs
USD debts. However, with the global economic outlook uncertain, we are back into contraction. While we do expect an eventual recovery in the U.S.
cautious that the EMD outperformance may have gone too far and think better manufacturing sector, we opted to exit our overweight position because
relative entry points may appear in the future. weaker consumer demand and slower growth pose meaningful headwinds.
Despite these challenges, the sector has outperformed the index YTD, but
Adding to Municipals
much of that is attributable to its metals and mining segment, where gold
Attractive relative value. Following April’s selloff, yields in the municipal
miners continue to benefit from the record rally in gold prices.
bond market are well above one standard deviation wide compared to the
index’s five-year average. From a relative value perspective, muni-to-treasury
ratios look increasingly attractive, rising to over 90% on some parts of the
curve. We continue to see relative value in this segment of the credit markets.

The views and opinions expressed are those of the Portfolio Solutions Group at the time of writing of this presentation and are subject to change at any time due to market, economic, or
other conditions, and may not necessarily come to pass. Not to be construed as an investment or research recommendation.

The BEAT | May 2025 4

TOP THEMES

Rethinking Asset Allocation and Portfolio Risk Management

Passive investing may produce lower returns, as bond and equity return correlations have risen.
The 60/40 Portfolio Has Delivered Roughly 5% in Total Returns Since 2022
Cumulative performance of the 60% MSCI ACWI/40% Global Aggregate Bond Index portfolio since 2022
15%

10%

5%

0%

-5%

-10%

-15%

-20%

-25%
Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025

60% MSCI ACWI / 40% Global Aggregate Bond Index

Source: Bloomberg, MSIM. As of April 15, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 5

TOP THEMES

The U.S. Dollar: Strong and Still a Reserve Currency

The performance of the USD is very much tied to flows from foreign demand to hold U.S. assets. Total foreign holdings of
U.S. assets grew exponentially following the Global Financial Crisis (GFC), which has been supportive of the USD.
The USD Has Exhibited Long-Term Stability Foreign Demand to Own U.S. Assets Rose Rapidly
Fed Trade-Weighted Nominal Broad Dollar Index Total foreign holdings by asset type (in $ trillions)
130 25

125

~20% of US Equities
120 20
18.5

115
Today
110 15

105

100 10
~30% of USTs
7.2
95 ~30% of Credit
4.6
5
90

85
2010
0
80
US Corporate Credit US Treasuries US Equities
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Source: Bloomberg, Apollo Chief Economist, MSIM. As of April 15, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly
in an index. The views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market,
economic, or other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to
pass. Past performance is not indicative of future results.

The BEAT | May 2025 6

TOP THEMES

Credit Spreads Have Widened to Longer Term Averages

After displaying some resilience to the initial derisking in U.S. equities, credit spreads have widened from all-time tight levels
back to medium-term averages. Investment Grade (IG) spreads have returned to 5-year averages, while High Yield (HY)
spreads briefly broke above their trailing 10-year average.
IG and HY Credit Spreads Have Widened to Levels at or Above Recent Historical Averages
IG average spread (LH chart); HY average spread (RH chart)

Investment Grade Spreads High Yield Spreads

170
600
160
550
150
140 500
130
450
120
110 400

100 350
90
300
80
70 250
60
200
2021 2022 2023 2024 2025
2021 2022 2023 2024 2025
US IG Spread 1Y Average
US HY Spread 1Y Average
5Y Average 10Y Average
5Y Average 10Y Average
Source: Bloomberg, MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 7

TOP THEMES

Tariff News Has Steepened the Curve and Tightened Financial Conditions
Recent tariff announcements have contributed to both the rapid steepening in the yield curve (measured by the 2Y/10Y
spread) and the tightening in financial conditions. This has also driven a divergence in monetary policy expectations, with the
implied Dec 2025 Fed funds rate falling below the Fed’s projected level (median dot as of 3/19/2025).

Tariff Uncertainty Has Tightened Financial Conditions… … Leading to Divergent Monetary Policy Expectations
2Y/10Y spread (LH, basis points), U.S. Financial Conditions Index (RH) Dec 2025 implied rate, Fed’s projected policy rate as of 3/19/2025

70 100.3 4.1
Fed’s Projected Policy
60 100.1 4.0
Rate
99.9 3.9 (as of 3/19/2025)
50

99.7 3.8
40
99.5 3.7
30
99.3 3.6
20
99.1 3.5 Market implied rate has
fallen ~40 basis points below
10 Tariff announcements begin 98.9 3.4 the Fed’s projected rate
0 98.7 3.3

-10 98.5 3.2

Sep 2024 Nov 2024 Jan 2025 Mar 2025 Nov 2024 Dec 2024 Jan 2025 Feb 2025 Mar 2025 Apr 2025
US 2Y10Y Spread (LH) US Financial Conditions Index (RH) Fed Dec 2025 Implied Rate
FOMC YE2025 Median Dot Projection
Source: Bloomberg, Goldman Sachs (Financial Conditions Index), MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not
possible to invest directly in an index. The views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change
at any time due to market, economic, or other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and
may not necessarily come to pass. Past performance is not indicative of future results.

The BEAT | May 2025 8

TOP THEMES

International Equities Long-Term Relative Performance Hits Historic Lows

Developed markets ex-US equities persistently underperformed the U.S. for over 15 years. While ex-US equities have seen
notable year-to-date (YTD) outperformance, the magnitude is small in the context of the long-term trend. The shift in U.S.
trade policy marks a significant realignment of global economic relationships. While much remains uncertain, it is reasonable
to question if this marks a longer-term inflection in regional equity performance.

International Equities Long-Term Relative Performance vs. U.S. is ~2 Standard Deviations Below Trend
MSCI World ex-US/MSCI U.S. relative index ratio with long-term trend and standard deviations (log scale)
2.5

2.0

1.5

1.0

0.5

0.0

-0.5

-1.0

-1.5
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023

MSCI World ex-US/US (log scale) Trend +/- 1 std +/- 2 std
Source: Bloomberg, MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 9

TOP THEMES

Cyclicals vs. Defensives: The Recent Move Placed in Historical Context

Amid heightened tariff policy concerns and weaker GDP growth estimates, cyclicals have underperformed defensives in the
U.S. YTD 2025. With recent underperformance, cyclical sector valuations relative to defensives have now returned to levels
consistent with the slowdown in 2022, with greater moves limited to the GFC and the pandemic.

U.S. Cyclical Sector Relative Valuations vs. Defensives Have Returned to the Levels of the Slowdown in 2022
Median cyclical sector (ex-energy) cyclically-adjusted multiple/median defensive sector cyclically adjusted multiple
1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
0.90
2022 Level
0.85
0.80
0.75
Covid/GFC
0.70 Level
0.65
0.60
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Cyclicals ex Energy/Defensives - Cyclically Adjusted Valuation Ratio
Source: Bloomberg, MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 10

TOP THEMES

Without Corrective Measures, the Deficit Can Get Worse

In the absence of significant corrective measures, the deficit can grow over the next decade. The current policy baseline,
including a TCJA extension, with $1.5 trillion in deficit reduction, would serve to keep the deficit at current levels.
The Deficit Can Grow Unless Corrective Actions Are Taken
Historical budget deficit as % of GDP, with forecasts under different scenarios, 1962 – 2035
4%

2% China Joins WTO

0%

-2% Forecasted
-4%

-6%

-8%

-10%
Deficit
-12%

-14%

-16%

Historical Deficit Current Law Baseline

Current Policy Baseline (TCJA Extended) Current Policy With $1.5tn In Deficit Reduction
With All Trump Tax Priorities & No Deficit Reduction
Source: Bloomberg, Don Schneider (Piper Sandler), MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest
directly in an index. The views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to
market, economic, or other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily
come to pass. Past performance is not indicative of future results.

The BEAT | May 2025 11

TOP IDEAS

Exit U.S. Materials: Trade Headwinds Have Halted Manufacturing Recovery

While we continue to expect an eventual recovery in U.S. manufacturing, the sector faces nearer-term headwinds in the form
of higher-than-expected tariffs, weaker consumer demand and weaker global growth. While a recovery looked to have been
in play in 2025, recent dynamics have reversed that trend, sending PMIs back into contraction.
Forward-Looking Manufacturing PMI Surveys Have Dipped Back Into Contraction Following Nascent Recovery
Regional Fed surveys, 6-month forecasts for new orders
Large-scale tariffs have reversed
80 the manufacturing recovery
70

60

50

40

30

20

10

-10

-20

-30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Empire Manufacturing 6M New Orders Forecast Philadelphia Fed 6M Ahead New Orders Forecast Richmond Fed Expected New Orders
Source: Bloomberg, MSIM. As of April 15, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 12

TOP IDEAS

Municipal Bonds: Elevated Starting Yields and Relative Value

After April’s selloff, yields in the municipal bond market are well above one standard deviation to the index’s 5-year average.
From a relative value perspective, muni-to-treasury ratios are attractive, rising to over 90% on some parts of the curve.
Between elevated starting yields and compelling relative value, we believe now is a great entry point for the asset class.

Index Yield-to-Worst is Wide Compared to Historical Averages Muni-UST Ratios Signal Relative Value
Muni index YTW (%) with 5Y average with +/- 1 standard deviations Current muni-UST ratios vs. end of 2024

5.00
4.50 Muni/UST 4/30/25 12/31/24
4.00
3.50
2-year 78% 67%
3.00
2.50
2.00 5-year 79% 66%
1.50
1.00
0.50 10-year 79% 65%
0.00
2020 2021 2022 2023 2024 2025

30-year 92% 74%

Bloomberg Municipal Bond Index Average
- - - +/- 1 Standard Deviation
Source: Bloomberg, MSIM. As of April 30, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views
and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or other
conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 13

TOP IDEAS

Macro Review
While rates have fallen across most of the curve to start the year, spreads have widened in many sectors, leaving absolute
yields at attractive levels vs. the last 10 years.
Current Yield vs. 10-Year Average
Yield to Maturity (%)
14%
10Y Average

12% 11.6%

10% 10.1%
9.1%
8.2%
8%

7.0%
6.6%
6% 5.7%
5.4%
4.7%
4.3%
3.9%
4%
3.7%
3.5%
3.0%
2.6%
2% 2.1%

0%
2Y Treasury 10Y Treasury Agg US IG Corps Agency MBS US High Yield Loans BB CLO Debt

Source: Bloomberg. As of 4/15/25. Loans represented by Morningstar LSTA US Leveraged Loan Index. US High Yield represented by ICE BofA US High Yield Index. US IG Corporates
represented by ICE BofA US Corporate Index. 10Y Treasury represented by ICE BofA Current 10Y US Treasury Index. Agg represented by the Bloomberg US Aggregate Bond Index.
Agency MBS represented by the Fannie Mae Current Coupon MBS Index. BB CLOs represented by the BB portion of the J.P. Morgan CLOIE Post-Crisis Index. For illustrative purposes
only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The views and opinions expressed are those of the portfolio management team at
the time of writing/of this presentation and are subject to change at any time due to market, economic, or other conditions, and may not necessarily come to pass. Forecasts/estimates
are based on current market conditions, subject to change, and may not necessarily come to pass. Past performance is not indicative of future results.

The BEAT | May 2025 14

TOP IDEAS

Fixed Income Sector Views – Non-Agency MBS

Substantial build-up in home equity has improved risk/reward in non-agency MBS. Meanwhile, there is a massive gap
between today’s rate vs. outstanding mortgage rates.
Housing Market Value vs. Mortgage Debt Outstanding Today’s vs. Effective Rate of Outstanding Mortgages
As of 12/31/24 As of 3/31/25
$60,000

$50,000

$40,000
$ Billions

$30,000

$20,000

$10,000

$0
2000 2004 2008 2012 2016 2020 2024

Household Equity Mortgage Debt Total Value of Housing Market

Source: Bloomberg, Eaton Vance. As of 3/31/2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The
views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or
other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 15

TOP IDEAS

Fixed Income Sector Views – Below IG Credit

Valuations have become more compelling, but selectivity will be key.

Credit sector spreads vs. history CLOs offer higher yield rating-for-rating
As of 4/15/25 Yields by credit tier

10yr 14% CLO IG / HY Corporates Loans

Sector Yield Spread Low High
%ile

12%
US IG Corp 5.40% 114 38% 78 397

10%
US HY Corp 8.24% 426 58% 277 1,082

8%

Yield
US Bank Loans 9.05% 477 61% 358 1,107

6%

EM Corp 6.90% 300 28% 231 641

4%

BBB CLO 7.61% 386 53% 255 972

2%

BB CLO 11.61% 777 62% 509 1,756

0%
AAA AA A BBB BB

Source: Bloomberg, Eaton Vance. As of 4/15/2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The
views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or
other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 16

TOP IDEAS

Moving to Overweight on the German MDAX (Mid-Cap) Index

In Europe we continue to look for market segments that are relatively less exposed to tariff risks and direct beneficiaries of
the nascent fiscal stimulus wave. German mid-caps fit this bill, standing to benefit from the incoming government’s push to
incentivize re-industrialization investments, cut bureaucratic red tape and reduce energy costs.

With a Higher Correlation to Domestic Activity and Less Valuations Remain Attractive After a Prolonged
Exposure To Tariffs, MDAX Is Our Preferred Exposure Manufacturing Slump in Germany
EPS Beta to German Real GDP MDAX 12M Forward PE vs MSCI Europe

1.7
8.5

1.5

6.0
1.3

1.1

0.9

0.7

0.5
MDAX DAX 2001 2004 2007 2010 2013 2016 2019 2022

Source: Bloomberg, Refinitiv, MSIM. As of April 17, 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index.
The views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic,
or other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results.

The BEAT | May 2025 17

TOP IDEAS

Real Estate Fundamentals Continue to Improve

Real estate has been experiencing a repricing over the last few years in response to higher interest rates, cyclical oversupply
and, in certain sectors, secular demand destruction. That said, the long-term operating outlook is markedly improving, with
future supply materially decreasing and the demand destruction seen in certain sectors stabilizing. Entry pricing is
meaningfully lower, providing a margin of safety and an interesting access point to improving fundamentals.

U.S. Cap Rates Have Stabilized… …and the Pace of New Construction Has Slowed
Real estate sector cap rates (%) Construction square footage (M, LH), as % of inventory (RH)
11.0% SF (M) Construction % of Inventory

1,200 7.0%
10.0%
6.0%
1,000

9.0% 5.0%
800
4.0%
8.0%
600
3.0%

7.0% 400
2.0%

200 1.0%
6.0%

0 0.0%
5.0%

4.0%

Office Retail
Multifamily Industrial
Office % of Inventory Retail % of Inventory
Office Retail Multifamily Industrial Multifamily % of Inventory Industrial % of Inventory

Source: CoStar (Dec 00 – Mar 25) as of April 2025. For illustrative purposes only. Not a recommendation to buy or sell any security. It is not possible to invest directly in an index. The
views and opinions expressed are those of the portfolio management team at the time of writing/of this presentation and are subject to change at any time due to market, economic, or
other conditions, and may not necessarily come to pass. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass. Past
performance is not indicative of future results..

The BEAT | May 2025 18

TOP IDEAS

Capital Markets Investment Framework Current allocation

Change from previous
––
–
High conviction underweight
Underweight
Representative Allocations from the Portfolio Solutions Group = Neutral
+ Overweight
++ High conviction overweight
Asset Allocation Our View Commentary
–– – = + ++
Bonds
We view the recent backup in UST 10Y yields as more technical in nature, and so we move to a neutral
Duration duration stance. With slowing economic growth and recession risks in focus, longer duration USTs have both
outright and hedging value to portfolios.
Credit spreads widened towards longer term averages after “Liberation Day” but have since tightened again.
Credit With the current economic and political uncertainty, we still view credit spreads as being asymmetrically
exposed to negative news, with limited upside from today’s levels.
Equities
With tariff policy presenting near-term headwinds to growth, we move our risk exposure in equities to neutral
primarily through reductions in the U.S. We prefer Europe, where the growth outlook has benefitted from
Risk Level
expansionary fiscal policy, growing real incomes and relatively supportive financial conditions.
Alternatives Private investment activity has been subdued YTD as investors cautiously interpreted announcements to
changes in U.S. Fed policy, including their interaction with global geopolitics. However, we believe the
Private Markets directional clarity of the new administration and the continuing maturation of relatively low-cost financing are
expected to expand deal-making activity in 2025. In addition, attractive entry prospects have emerged within
sub-segments of real estate, private equity and private credit, but investor commitment levels have not yet
responded to this heightened level of opportunity.
Hedge Funds Market activity YTD disrupted many fundamental hedge fund alpha themes, particularly in long/short equity
portfolios. We continue to favor macro and relative value strategies that are able to capitalize on high levels of
dispersion.
We remain neutral on energy commodity markets, as geopolitical upside risks are balanced by high spare
Commodities capacity in markets such as crude, which limit upside absent physical disruptions. In the current environment
we see precious metals as a segment that could enjoy structural tailwinds.
Transition

We remain underweight cash and short duration instruments.

Cash/Short Duration

For informational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The tactical views expressed
above are a broad reflection of our team’s views and implementations, expressed for client communication purposes. Individual team allocations may differ. The information herein does not
contend to address the financial objectives, situation or specific needs of any individual investor. The signals represent the Portfolio Solutions Group view on each asset class.

The BEAT | May 2025 19

TOP IDEAS

Global Fixed Income Current allocation

Change from previous
––
–
High conviction underweight
Underweight
Representative Positioning from Portfolio Solutions Group = Neutral
+ Overweight
++ High conviction overweight
Fixed Income Our View Commentary
–– – = + ++
Bonds
We move to a neutral duration stance in the U.S. with 10Y yields now ~4.40%. With slowing economic growth
U.S. Treasuries (USTs) and recession risks in focus, longer duration USTs have both outright and hedging value within portfolios.
With breakeven inflation falling, we see a bit of value in this space, particularly in the longer sections of the
curve with 5Y/5Y inflation at 2.20% today. We envision inflation settling higher than 2% over the long run.
Inflation Linked Bonds
We remain neutral European duration, as Germany’s fiscal pivot is likely to result in a higher trading range for
European rates compared to post-GFC.
Eurozone Govt. Bonds EMD has had wider spreads than corporate credit for the better part of the past 15 years. But currently, those
spreads are much tighter than they have been historically. Investors still get additional spread pickup from EMD
and creditworthiness has generally improved with the weakening USD. As such, we remain neutral EMD.
EM Hard Currency Govt. Bonds
EM Local presents an interesting opportunity with the USD recently weakening. The USD move has been
violent and abrupt, so we are hesitant to recommend a tactical overweight today in case we get a temporary
EM Local Currency Govt. Bonds USD bounce. However, we like the asset class on a longer-term perspective.

Public Credit

Municipal Bonds Muni-to-treasury ratios are at attractive entry levels that usually offer strong after-tax returns relative to USTs.
For taxable accounts, we recommend increasing muni allocations.
IG spreads have widened a bit but remain tight given the number of risks out there. The asset class has poor
Investment Grade (IG)
convexity in the current environment.
We continue to hold a high conviction in ABS as yield per unit of credit quality remains attractive.
MBS/ABS HY spreads have widened from all-time tight, but remain very expensive, and we do not like the convexity the
asset class offers. EU and U.S. HY spreads have notably converged.
High Yield (HY) Bank Loan spreads have widened and we considered an upgrade to overweight. However, we are still
concerned about the backdrop and idiosyncratic credit risks that may appear as we get more tariff data. There
is not quite the margin of safety we prefer.
Bank Loans

For informational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The tactical views expressed
above are a broad reflection of our team’s views and implementations, expressed for client communication purposes. Individual team allocations may differ. The information herein does not
contend to address the financial objectives, situation or specific needs of any individual investor. The signals represent the Portfolio Solutions Group view on each asset class.

The BEAT | May 2025 20

TOP IDEAS

Global Equity Current allocation

Change from previous
––
–
High conviction underweight
Underweight
Representative Positioning from Portfolio Solutions Group = Neutral
+ Overweight
++ High conviction overweight
Equity Our View Commentary
–– – = + ++
Regional
United States: We move to neutral on U.S. equities, as larger-than-expected tariffs present dual headwinds in
Developed Markets the form of a) weaker economic growth and b) higher inflationary pressures, while ex-US regions primarily face
demand effects.

Europe: We remain overweight European equities with the growth outlook benefiting from several factors: a)
U.S.
more fiscally expansive stance, b) rising real incomes supporting consumption; c) financial conditions relatively
more supportive than in the U.S. We continue to prefer segments of the market that are less exposed to tariffs
Eurozone and directly benefit from the nascent fiscal stimulus wave, such as banks, construction and German mid-caps.

Japan: We remain neutral Japanese equities given the scope for rates to increase further and the JPY (yen) to
re-value more strongly from a still extremely cheap Real Effective Exchange Rate perspective. We remain
Japan
optimistic about Japan’s structural reforms and longer-term prospects.

Emerging Markets: We move to neutral on EM via reduction in our exposure to Chinese equities, where large
Emerging Markets scale tariffs and subsequent retaliatory measures have shifted the balance of risks back to the downside.

Style

Growth vs. Value While we are not looking to take on any excess Big Tech exposure, recent underperformance should help
mitigate some of the valuation risk in Growth style indexes.
Quality With a weaker Growth outlook, we continue to prefer Quality.

Lower quality Small-caps are still best avoided. We prefer Mid-caps, where we hold exposure in both the U.S.
Large Cap vs. Small Cap and Germany.

Our current cyclical exposure sits in Europe and rests more on structural growth drivers.
Cyclical vs. Defensive Sectors

For informational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The tactical views expressed
above are a broad reflection of our team’s views and implementations, expressed for client communication purposes. Individual team allocations may differ. The information herein does not
contend to address the financial objectives, situation or specific needs of any individual investor. The signals represent the Portfolio Solutions Group view on each asset class.

The BEAT | May 2025 21

TOP IDEAS

Alternatives
Representative Positioning from Portfolio Solutions Group
Alternative Assets Commentary
Private Markets

We expect investor cash flows to recover through increasing market activity and asset pricing to offer a fair entry point. We anticipate an increase in performance dispersion going forward,
with successful value creation likely being associated with organic growth initiatives utilizing relatively modest leverage, participation in technology advancements, resiliency to upside inflation
Private Equity surprises and successful navigation of adjustments in global trade. We continue to focus on middle-market strategies that rely less on leverage and are well-placed to deliver asset
management initiatives to drive this form of earnings growth. Overall, we view the private equity universe as an important diversifier relative to public equities, given lower overall exposure to
imports and exports.

Commercial real estate is working through its debt maturity wall and pockets of elevated supply, leading to increased transaction volumes at more attractive entry valuations. These reset
valuations and retreat of bank lending have created interesting opportunities for commercial real estate lenders. At the same time, fundamentals are constructive, as debt liquidity improves
and the future supply in key sectors is materially lower, setting up an attractive opportunity set for commercial real estate equity as well - particularly in secularly growing sectors including
industrial, residential and net lease.

Private Private infrastructure continues to participate in the investable opportunities relating to the mega trends of digitization and power generation. These themes converge where data services
Real Assets require power, and generative Artificial Intelligence (AI) is highlighting the fact that the current power mix is insufficient in terms of volume, density and reliability. Private investors are playing a
key role in supplying this enabling infrastructure with attractive growth prospects. Recently observable policy changes in the U.S., including high tariffs, are expected to destabilize supply
chains. BESS (Battery Energy Storage Systems) are most at risk given reliance on both Chinese materials and manufacturing. Solar PV is also expected to face challenges, albeit not as
extreme, given larger onshore manufacturing capacity. The environment is expected to put pressure on poorly capitalized developers. As a result of an expected decreased reliance on the
U.S., we view the European infrastructure segment as a net beneficiary. There will be even more focus placed on energy security and localizing critical data which is currently being stored in
the U.S. The recent announcement of the €500 billion German Infrastructure Fund is the first in what we expect to be many steps to spur investment in the continent's ailing infrastructure.

Within corporate lending, covenant relief cases and PIK (payment-in-kind) payments have increased as debt service continues to be burdensome. This is providing opportunities for
Private Credit
opportunistic and special situation lenders that focus on opportunities that fall outside the purview of direct lending mandates.

Liquid Alternatives

YTD market activity disrupted many fundamental hedge fund alpha themes, particularly in long/short equity portfolios. We continue to prefer specialist hedge fund portfolio managers best
Hedge Funds positioned to analyze and adapt to the potential impacts of a multitude of stimuli, including tariffs, a rapidly evolving AI landscape and concerns over the path of economic growth and resultant
policy responses. Highly liquid macro strategies have been responsive to rapidly changing market dynamics, and we believe will continue to contribute to performance should broader volatility
persist. We maintain our high conviction in relative value strategies able to capitalize on high levels of intra-market dispersion.

We remain neutral on energy commodity markets as geopolitical upside risks are balanced by high spare capacity in markets such as crude, which limit upside absent physical disruptions. In
Commodities
the current environment we see precious metals as a segment that could enjoy structural tailwinds.

For informational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The tactical views
expressed above are a broad reflection of our team’s views and implementations, expressed for client communication purposes. Individual team allocations may differ. The information
herein does not contend to address the financial objectives, situation or specific needs of any individual investor. The signals represent the Portfolio Solutions Group view on each asset
class. Note: Over/underweight in private markets refers to decisions regarding the flow of new investments, not the stock of existing investments.

The BEAT | May 2025 22

BONDS

Sovereign Bond Yields

Developed Markets Emerging Markets
(10 yr. Yield) (10 yr. Yield)

16% 16%
1 Mo. Ago 1 Mo. Ago
12 Mo. Ago 12 Mo. Ago

12% 12%

8% 8%

4% 4%
Apr ’25

Apr ’25
0% 0%

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Factset as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 23

BONDS

Key Rates (%)

Security Current 12-Mo. Ago Average Minimum Maximum

1-Week SIFMA 2.78 3.77 3.20 1.86 4.21

Secured Overnight Financing Rate 4.41 5.34 4.83 4.27 5.40
1-Mo SOFR 4.32 5.32 4.79 4.29 5.35
3-Mo SOFR 4.27 5.33 4.72 4.21 5.35
2-Yr Treasury 3.59 5.03 4.20 3.54 4.97
5-Yr Treasury 3.72 4.71 4.10 3.41 4.65
10-Yr Treasury 4.16 4.68 4.25 3.62 4.79
30-Yr Treasury 4.69 4.79 4.50 3.93 4.98
2-Yr Japan 0.67 0.27 0.52 0.26 0.88
10-Yr Japan 1.31 0.87 1.09 0.80 1.58
2-Yr German Bund 1.69 3.10 2.32 1.66 3.11
10-Yr German Bund 2.45 2.58 2.41 2.03 2.91
2-Yr UK Gilt 3.83 4.49 4.15 3.53 4.60
10-Yr UK Gilt 4.46 4.34 4.31 3.74 4.89
Bloomberg US Agg 4.51 5.31 4.72 4.10 5.24
Bloomberg Global Agg 3.46 4.06 3.64 3.26 4.04
Bloomberg US Corporate 5.14 5.73 5.19 4.64 5.68
Bloomberg US Long Corporate 5.86 5.90 5.59 5.07 6.12
Bloomberg US Municipal 4.06 3.77 3.64 3.28 4.47
Bloomberg US Long Municipal 4.76 4.40 4.28 3.94 5.16
US High Yield 7.91 8.20 7.49 6.98 8.65
US Loans 8.82 9.82 9.13 8.36 9.86

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Bloomberg, Leveraged Commentary & Data (LCD), and Factset as of 4/30/25. Current represents most recent month. Average,
minimum, and maximum measure a 12-month period ending most recent month. Data provided is for informational use only. US High Yield is represented by ICE BofA US High Yield
Index. US Loans is represented by Morningstar LSTA U.S. Leveraged Loan Index. Bloomberg indices and ICE BofA US HY index using yield to worst. Morningstar LSTA U.S. Leveraged
Loan Index using yield to maturity. SOFR is the Secured Overnight Financing Rate, a broad measure of secured overnight U.S. Treasury repo rates. See end of report for important
additional information.

The BEAT | May 2025 24

BONDS

Monetary Policy

Central Bank Policy Rates Market Expectations for Future Central Bank Rates
Current 1-Mo. Ago 12-Mo. Ago
5.0%
U.S. Federal Reserve 4.50% 4.50% 5.50%
10% 4.49%
BOE
BOE 4.50% 4.50% 5.25% U.S. Federal Reserve 4.23%
9% 4.15% 3.95%
BOJ 0.50% 0.50% 0.10% 4.0% 4.29%
4.0% BOE 3.80% 3.74%
8% 4.06%
ECB 2.40% 2.65% 4.50%
4.01% 3.61%
U.S. Federal Reserve 3.80% 3.56%
3.41% 3.47%
3.70% 3.62% 3.55%
7%

3.0% 3.32% 3.36%

6% 3.0% 3.19%
BOE
U.S. Federal Reserve ECB
5%
2.48%

4% 2.0%
2.0% ECB 2.19%
1.95% 1.85%
1.96% 1.93%
1.72%
3% 1.66%
1.73% 1.68%
1.0% 0.83% 0.86%
2% ECB 0.74% 0.92%
1.0% 0.58% 0.79%
0.47% 0.65%
1% BOJ BOJ 0.53% 0.56%
BOJ
0% 0.0%
'98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 3M 6M 1Y 2Y 3Y
0.0%
(1%) 3M 6M 1Y 2Y 3Y

Source: Bloomberg, Factset as of 4/30/25. Data provided is for informational use only. See end of report for important additional information. Forecasts/estimates are based on current
market conditions, subject to change, and may not necessarily come to pass.

The BEAT | May 2025 25

BONDS

U.S. Treasury Yields

U.S. Treasury Yield Curves

Yields & Performance
7%
Yield (%) Total Return (%)

Security 1-Mo. 12-Mo.

6% Current 1-Mo. 12-Mo.
Ago Ago

5%
3-mo. Treasury 4.29 4.29 5.38 0.34 4.88
12-Mo. Ago
Apr ‘25
1-Mo. Ago
6-mo. Treasury 4.17 4.22 5.37 0.34 5.06
4%

2-yr. Treasury 3.59 3.89 5.03 0.81 6.41

3%
3-yr. Treasury 3.58 3.88 4.87 1.14 7.54

2%
5-yr. Treasury 3.72 3.95 4.71 1.36 8.38

1% 10-yr. Treasury 4.16 4.21 4.68 0.79 8.39

30-yr. Treasury 4.69 4.58 4.79 -1.32 5.47

0%
3M 2Y 5Y 10Y 30Y

Source: Factset, Morningstar as of 4/30/25. Data provided is for informational use only. Past Performance is not a reliable indicator of future results. See end of report for important
additional information.

The BEAT | May 2025 26

BONDS

Characteristics and Performance Analysis

Averages Total Returns (%)

Coupon Price Yield to Spread Maturity Duration

Index
(%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y
U.S. High Grade
Bloomberg U.S. Aggregate Index 3.52 92.4 4.51 40 8.4 6.1 0.39 2.64 3.18 8.02 1.95 -0.67 1.54
U.S. Treasury 3.10 93.2 3.94 − 7.7 5.9 0.63 3.04 3.57 7.68 1.22 -1.67 1.07
U.S. Mortgage Backed Securities 3.39 89.9 4.93 43 7.9 6.1 0.29 2.83 3.35 8.99 1.86 -0.76 1.13
U.S. Asset Backed Securities 4.78 99.9 4.49 74 3.6 2.6 0.49 1.70 2.03 7.08 3.94 2.20 2.22
U.S. Commercial Mortgage Backed Securities 3.42 94.9 4.75 97 4.5 4.0 0.91 2.76 3.49 9.37 3.33 1.20 2.32
U.S. Corp. Investment Grade 4.36 92.8 5.14 106 10.4 6.8 -0.03 1.71 2.27 7.60 3.04 0.47 2.50
Bloomberg Municipal Bond Index 4.61 99.4 4.06 − 13.4 6.5 -0.81 -1.52 -1.03 1.66 2.21 1.17 2.10
Bloomberg Taxable Municipal Bond Index 4.39 92.5 4.99 − 14.1 7.6 -0.08 2.42 2.91 7.54 2.38 0.21 2.78
ICE BofA US Inflation-Linked Treasury Index 1.10 94.1 1.46 - 7.6 5.9 0.00 2.92 4.24 8.01 0.51 1.62 2.43
ICE BofA Preferred Index (Fixed Rate) 5.42 88.7 6.45 171 - 6.2 -1.40 -1.93 -1.32 3.81 4.08 2.32 3.73
U.S. High Yield
ICE BofA US High Yield Index 6.50 94.4 7.91 394 4.7 3.1 0.00 -0.43 0.95 8.69 6.14 6.42 4.79
Morningstar LSTA U.S. Leveraged Loan Index S+3.31 95.8 8.82 480 4.6 − -0.05 -0.26 0.43 6.16 7.12 8.00 4.88
Emerging Markets
J.P. Morgan EM Bond Index (EMBI) Global Diversified 5.42 86.0 7.89 368 − 6.5 -0.22 0.57 2.02 8.77 5.33 2.99 2.97
J.P. Morgan Corp. EM Bond Index (CEMBI) Broad Diversified 5.34 94.6 6.59 258 − 4.3 -0.43 1.17 1.98 8.23 5.56 3.96 3.82
J.P. Morgan Govt. Bond Index-EM (GBI-EM) Global Diversified 5.59 − 6.09 − − 5.3 3.25 5.53 7.70 9.75 5.98 2.16 1.30
Global Developed Markets
Bloomberg Global Aggregate Ex-U.S. Index 2.30 96.3 2.57 33 8.5 7.0 5.11 7.14 7.77 9.48 0.49 -1.77 0.10
FTSE World Government Bond Index 2.58 − 3.32 − − 6.9 3.34 5.50 5.99 8.32 0.18 -2.56 0.17
ICE BofA European Union Government Bond Index 2.17 94.5 2.63 44 8.9 7.3 7.25 10.26 10.58 11.31 1.90 -1.35 0.03
ICE BofA Developed Mkts HY Ex-Sub Fincl Index (USD Hedged) 6.22 95.0 7.49 412 3.6 3.1 0.10 -0.16 1.08 8.85 6.49 6.50 4.94
Bloomberg Euro-Aggregate Corporates (EUR) 2.59 97.3 3.14 112 5.1 4.4 0.99 0.54 0.98 6.18 2.25 0.65 1.10
Bloomberg Pan-European High Yield Euro (EUR) 4.84 97.3 5.94 359 3.7 3.1 0.28 0.27 0.90 7.63 5.55 5.05 3.51

Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Bloomberg, J.P. Morgan, ICE BofA Data Indices, LLC, Factset, and Leveraged
Commentary & Data (LCD), as of 4/30/25. Data provided is for informational use only. See end of report for important additional information. Yield to maturity is shown for the Morningstar
LSTA U.S. Leveraged Loan Index and the FTSE World Government Bond Index. S+ refers to SOFR (Secured Overnight Financing Rate) as the base rate. Loan Index spread represents
the three-year discounted spread over SOFR. Returns of the ICE BofA Developed Mtks HY Ex-Sub Financial Index are USD Hedged. The averages for the index are unhedged. Returns
and averages for the Bloomberg Euro-Agg Corps and Bloomberg Pan-Euro HY indices are in EUR (unhedged).

The BEAT | May 2025 27

BONDS

Spread Analysis (bps)

1,600

1,400 1331
High

1,200 1087
Current
Median 1,000

Low
800
721

600 492
373 480 471
400 325 394 395
260 368 363
366
200 127 132
171 261 259
106 117 131
40 43 74 52 97 83
44 35
0 74
29 22 54
7
-200 -88
Floating-Rate Emerging
Aggregate MBS ABS CMBS Corporate Preferred Loans Markets (USD) High Yield

Max Spread Date 3/20/2020 3/19/2020 3/26/2020 3/25/2020 3/23/2020 3/23/2020 3/20/2020 3/23/2020 3/23/2020

Min Spread Date 4/14/2021 4/14/2021 6/21/2021 6/21/2021 11/08/2024 12/6/2017 4/20/2018 2/1/2018 1/22/2025

Spread on 12/31/24 34 43 44 80 80 77 424 325 292

Spread on 12/31/23 42 47 68 126 99 148 490 384 339

Spread on 12/31/22 51 51 76 120 130 227 645 452 479

Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Factset and Leveraged Commentary & Data (LCD) as of 4/30/25. Spread
history measures past 10 years. Data provided is for informational use only. See end of report for important additional information. All fixed-income spreads are in basis points and
measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries using daily data. Aggregate represented by Bloomberg US Aggregate Index. MBS represented by
Bloomberg U.S. Mortgage Backed Securities (MBS) Index. ABS represented by Bloomberg U.S. Asset Backed Securities (ABS) Index. CMBS represented by Bloomberg U.S. CMBS
Investment Grade Index. Corporate represented by Bloomberg U.S. Corporate Investment Grade Index. Preferred represented by ICE BofA Fixed Rate Preferred Securities Index.
Floating-Rate Loans represented by Morningstar LSTA U.S. Leveraged Loan Index. Loan Index spread represents the three-year discounted spread over SOFR (Secured Overnight
Financing Rate). Emerging Markets(USD) represented by J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified. High Yield represented by ICE BofA US High Yield Index.

The BEAT | May 2025 28

BONDS

Corporate Bond Market Update

Averages Total Returns (%)

Coupon Price Yield to Spread Maturity Duration

(%) ($) Worst (%) (bps) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y

U.S. High Grade

Bloomberg U.S. Corp. Investment Grade Index 4.36 92.8 5.14 106 10.4 6.8 -0.03 1.71 2.27 7.60 3.04 0.47 2.50

AAA Index 3.43 83.3 4.74 42 16.6 9.9 -0.07 2.38 2.62 6.39 0.32 -2.80 1.61

AA Index 3.71 89.4 4.74 59 12.4 7.7 0.06 2.00 2.49 7.00 1.59 -1.26 1.48

A Index 4.24 93.2 4.96 88 10.2 6.8 0.15 1.98 2.53 7.53 2.72 -0.20 2.23

BBB Index 4.61 93.2 5.40 132 10.2 6.6 -0.22 1.40 1.99 7.78 3.63 1.41 2.90

U.S. High Yield

ICE BofA U.S. High Yield Index 6.50 94.4 7.91 394 4.7 3.1 0.00 -0.43 0.95 8.69 6.14 6.42 4.79

BB Index 5.86 96.9 6.55 254 4.9 3.4 0.17 0.33 1.62 7.89 5.72 5.37 4.81

B Index 7.26 96.3 8.08 411 4.5 2.9 -0.06 -0.77 0.65 7.59 5.75 6.20 4.40

CCC Index 7.08 79.9 13.79 1000 4.0 2.8 -0.62 -2.88 -1.29 14.85 8.35 11.34 5.62

Morningstar LSTA U.S. Leveraged Loan Index S+3.31 95.8 8.82 480 4.6 - -0.05 -0.26 0.43 6.16 7.12 8.00 4.88

BBB Index S+1.89 99.6 6.31 205 5.2 - 0.30 0.90 1.51 6.50 6.89 5.81 4.30

BB Index S+2.50 98.7 7.16 297 5.0 - 0.00 0.28 0.94 6.34 7.25 6.72 4.40

B Index S+3.56 96.6 8.93 486 4.5 - 0.00 -0.32 0.35 6.50 7.55 8.49 5.20

CCC Index S+4.71 78.2 19.95 1535 3.3 - -1.74 -3.23 -2.30 1.83 3.64 9.91 5.54

D Index - 28.3 - - - - -4.58 -15.53 -13.60 -19.79 -32.09 -18.85 -19.05

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Bloomberg, J.P. Morgan, ICE BofA Data Indices, LLC, Factset, and Leveraged Commentary & Data (LCD), as of 4/30/25. Data
provided is for informational use only. See end of report for important additional information. Yield to maturity is shown for the Morningstar LSTA U.S. Leveraged Loan Index. S+ refers to
SOFR (Secured Overnight Financing Rate) as the base rate. Loan Index spread represents the three-year discounted spread over SOFR.

The BEAT | May 2025 29

BONDS

Corporate Bond Market Update

Average Spread (bps) Current 1-Mo. Ago 12-Mo. Ago Median

1,200 HY Corporate 394 355 318 393

1,000 Loans 480 461 465 465

800 IG Corporate 106 94 87 116

Loans
600

400 High Yield Corporate

200

0 Investment
Grade Corporate

Annual Default Rate

8%
Current 1-Mo. Ago 12-Mo. Ago Median
6% HY Corporate 0.31 0.27 1.55 1.78

High Yield Loans 0.73 0.82 1.31 1.42

4% Corporate

2%

Loans
0%

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: J.P. Morgan and Leveraged Commentary & Data (LCD), as of 4/30/25. Data provided is for informational use only. See end of report
for important additional information. Corporate spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries. Loan Index spread
represents the three-year discounted spread over SOFR (Secured Overnight Financing Rate).

The BEAT | May 2025 30

BONDS

Municipal Bond Market Update

Averages Total Returns (%)

Coupon Price Yield To Maturity Duration

(%) ($) Worst (%) (yrs.) (yrs.) 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y

Bloomberg Municipal Bond Index 4.61 99.4 4.06 13.4 6.5 -0.81 -1.52 -1.03 1.66 2.21 1.17 2.10

AAA Index 4.54 100.3 3.87 12.9 6.7 -0.63 -1.51 -0.96 1.56 1.92 0.49 1.69

AA Index 4.64 100.4 3.94 13.0 6.4 -0.74 -1.44 -1.04 1.54 2.11 0.82 1.90

A Index 4.61 97.8 4.31 13.6 6.5 -0.98 -1.61 -1.01 1.83 2.57 1.77 2.51

BBB Index 4.62 94.1 4.80 17.1 7.4 -1.30 -1.95 -1.16 2.49 2.84 3.12 3.03

5-Year Index 4.74 104.3 3.49 4.9 3.7 -0.51 -0.24 0.40 2.79 2.45 1.22 1.65

10-Year Index 4.59 102.8 3.83 9.9 5.9 -0.73 -1.28 -0.47 1.10 2.41 1.18 2.21

22+ Year Index 4.66 93.9 4.76 26.6 10.5 -1.27 -2.79 -2.72 1.10 1.49 0.74 2.27

Bloomberg High Yield Municipal Bond Index 4.76 64.6 5.84 19.2 7.2 -1.78 -1.72 -0.98 4.35 3.48 4.65 4.11

Hospital 5.34 75.6 6.05 20.5 6.6 -1.67 -1.09 -0.24 9.36 3.05 4.36 3.50

IDR/PCR 4.50 38.3 6.26 18.9 7.8 -1.97 -1.76 -1.09 2.08 3.18 4.35 4.86

Tobacco 2.48 19.4 6.42 27.1 12.4 -2.63 -2.80 -1.29 1.67 3.01 3.94 6.28

Puerto Rico 3.56 53.1 5.20 18.7 7.8 -3.41 -3.96 -2.97 -0.39 3.06 5.37 4.68

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Bloomberg, Morningstar as of 4/30/25. Coupon and Yield To Worst figures are based on average market prices while Price is based
on an average of par value. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 31

BONDS

Municipal Bond Market Update

AAA Muni-to-Treasury Yield Ratios

350% Current 1-Mo. Ago 12-Mo. Ago Median

5Y 81 72 61 73
280%
10Y 81 77 61 84
210% 30Y 95 92 84 94

140% 10Y 30Y

70%
5Y

0%

Credit Quality Spreads vs. AAA (bps)

200 Current 1-Mo. Ago 12-Mo. Ago Median

AA 11 11 7 16
150
A 35 35 31 38

BBB 83 83 83 84
100
BBB

50
A

AA
0

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Bloomberg as of 4/30/25. Data provided is for informational use only. See end of report for important additional information. All
spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries.

The BEAT | May 2025 32

BONDS

Emerging Markets Bond Market Update

Sovereign EMD Spreads (USD) Corporate EMD Spreads (USD) Local EMD Yields (%)
Bps Bps Bps

700 700 10%

8%
500 500
6%
300 300
4%

100 100 2%
'15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25
Avg. Spread (bps) Avg. Spread (bps) Avg. Yield (%)

Current 368 Current 258 Current 6.09

1-Mo. Ago 349 1-Mo. Ago 226 1-Mo. Ago 6.30

12-Mo. Ago 373 12-Mo. Ago 221 12-Mo. Ago 6.63

Median 368 Median 296 Median 6.29

Averages Total Returns (%)

Coupon (%) Price ($) Yield (%) Duration 1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y

JPMorgan Emerging Markets

5.42 86.0 7.89 6.5 -0.22 0.57 2.02 8.77 5.33 2.99 2.97
Bond Index (EMBI) Global Diversified
JPMorgan Corporate Emerging Markets
5.34 94.6 6.59 4.3 -0.43 1.17 1.98 8.23 5.56 3.96 3.82
Bond Index (CEMBI) Broad Diversified
JPMorgan Government Bond Index-Emerging
5.59 − 6.09 5.3 3.25 5.53 7.70 9.75 5.98 2.16 1.30
Markets (GBI-EM) Global Diversified

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: J.P. Morgan, Morningstar as of 4/30/25. Data provided is for informational use only. See end of report for important additional
information. All spreads are in basis points and measure option-adjusted yield spread relative to comparable maturity U.S. Treasuries.

The BEAT | May 2025 33

BONDS

Asset Class Return Analysis (%)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025
Higher EMD (Local Investment Global Agg Global Agg
Municipal High Yield Municipal High Yield Bank Loan High Yield Bank Loan
Currency) Grade Ex-U.S. Ex-U.S.
3.30 17.49 1.28 5.36 -0.77 13.46 8.95
15.21 14.54 10.11 7.77

EMD (Hard Global Agg EMD (Hard Investment EMD (Local

MBS MBS Bank Loan Municipal Bank Loan High Yield
Currency) Ex-U.S. Currency) Grade Currency)
1.51 0.99 5.20 -8.53 13.32 8.20
10.19 10.51 14.42 9.89 7.70

EMD EMD (Hard EMD (Local EMD

Bank Loan Treasury High Yield Treasury Municipal High Yield Treasury
(Corp. Bonds) Currency) Currency) (Corp. Bonds)
10.16 0.86 14.41 8.00 1.52 -11.22 3.57
1.30 9.32 12.70 7.63

EMD (Hard EMD (Local EMD EMD (Local EMD EMD EMD (Local EMD (Hard EMD (Hard
Bank Loan MBS
Currency) Currency) (Corp. Bonds) Currency) (Corp. Bonds) (Corp. Bonds) Currency) Currency) Currency)
0.44 3.35
1.23 9.94 7.96 13.47 7.13 0.91 -11.69 11.09 6.54

EMD EMD EMD Investment EMD Investment Investment

Treasury High Yield High Yield MBS
(Corp. Bonds) (Corp. Bonds) (Corp. Bonds) Grade (Corp. Bonds) Grade Grade
0.84 7.48 6.17 -11.81
9.65 -1.65 13.09 -1.04 9.08 2.13 2.27

Investment Investment Investment Global Agg EMD (Hard EMD Investment EMD (Hard
Bank Loan MBS MBS
Grade Grade Grade Ex-U.S. Currency) (Corp. Bonds) Grade Currency)
8.64 -1.04 1.20
-0.68 6.11 6.42 -2.15 5.88 -12.26 8.52 2.02

EMD (Hard EMD

Bank Loan MBS Municipal High Yield Municipal Municipal Treasury Municipal Municipal
Currency) (Corp. Bonds)
-0.69 1.67 5.45 -2.26 7.54 5.21 -12.46 6.40 1.05
-1.51 1.98

Global Agg Investment Investment Global Agg

High Yield Bank Loan Treasury MBS Treasury Treasury High Yield
Ex-U.S. Grade Grade Ex-U.S.
-4.64 4.12 6.86 3.87 -2.32 0.58 0.95
1.49 -2.51 -15.76 5.72

Global Agg EMD (Hard Global Agg EMD (Hard EMD (Local
Treasury MBS MBS Bank Loan MBS Bank Loan
Ex-U.S. Currency) Ex-U.S. Currency) Currency)
1.04 2.47 6.35 3.12 5.05 0.43
-6.02 -4.61 -7.05 -16.45 -2.38

EMD (Local EMD (Local Global Agg EMD (Local EMD (Local Global Agg Global Agg
Municipal Treasury Treasury Municipal
Currency) Currency) Ex-U.S. Currency) Currency) Ex-U.S. Ex-U.S.
0.25 2.31 4.05 -1.03
-14.92 -6.21 5.09 2.69 -8.75 -18.70 -4.22
Lower
Past performance is no guarantee of future results. It is not possible to invest directly in an index. In general, fixed income investments are subject to credit and interest rate risks. High
yield investments may have a higher degree of credit and liquidity risk. Foreign securities are subject to currency, political, economic and market risks. Investors should carefully review
the risks of each asset class prior to investing. Source: Morningstar as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.
Investment Grade represented by Bloomberg U.S. Corporate Index. MBS represented by Bloomberg U.S. Mortgage Backed Securities (MBS) Index. Treasury represented by Bloomberg
U.S. Treasury Index. High Yield represented by ICE BofA US High Yield Index. Municipal represented by Bloomberg Municipal Bond Index. Bank Loan represented by Morningstar LSTA
U.S. Leveraged Loan Index. Global Agg Ex-U.S. represented by Bloomberg Global Aggregate Ex-USD Index. EMD (Local Currency) represented by J.P. Morgan Government Bond
Index-Emerging Markets (GBI-EM) Global Diversified. EMD (Hard Currency) represented by J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified. EMD (Corp. Bonds)
represented by J.P. Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified.

The BEAT | May 2025 34

EQUITIES

Performance: Market Barometer (%)

1-Month Returns 1-Year Returns 3-Year Returns

Value Core Growth Value Core Growth Value Core Growth

Large Cap -3.05 -0.60 1.77 8.55 11.94 14.53 7.61 11.87 15.60

Mid Cap -2.48 -1.03 3.36 5.24 7.33 13.65 5.04 7.08 11.70

Small Cap -4.02 -2.31 -0.64 -0.68 0.87 2.42 1.38 3.27 5.05

< -20

-20 to -10 Global U.S. Global U.S. Global U.S.

0.93 -0.68 11.84 12.10 10.27 12.18
-10 to 0

0 to 10
Emerging Emerging Emerging
International International International
Markets Markets Markets
10 to 20 4.58 12.57 10.07
1.31 9.02 3.85

> 20

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.
Returns over 1 year are annualized. Large Cap Value represented by Russell 1000 Value Index. Large Cap Core represented by Russell 1000 Index. Large Cap Growth represented by
Russell 1000 Growth Index. Mid Cap Value represented by Russell Mid Cap Value Index. Mid Cap Core represented by Russell Mid Cap Index. Mid Cap Growth represented by Russell
Mid Cap Growth Index. Small Cap Value represented by Russell 2000 Value Index. Small Cap Core represented by Russell 2000 Index. Small Cap Growth represented by Russell 2000
Growth Index. Global represented by MSCI ACWI Index. US represented by S&P 500 Index. International represented by MSCI EAFE Index. Emerging Markets represented by MSCI
Emerging Markets Index.

The BEAT | May 2025 35

EQUITIES

Dividend Yields and Volatility Analysis

Historical Yields Current Yields

4.0%
5.0%
4.16
3.5%
MSCI EAFE 4.0%
3.0% 3.05
3.0% 2.71
2.5%
MSCI EM 1.86
2.0%
2.0% 1.32
MSCI World
1.5% 1.0%
S&P 500
1.0% 0.0%
'20 '21 '22 '23 '24 '25 S&P 500 MSCI World MSCI EM MSCI EAFE 10 Yr Treasury

Correlation of S&P 500 Stocks CBOE Market Volatility Index (VIX)

1.0 40.0
VIX
0.8
30.0
0.6 Average
Average 20.0
0.4
10.0
0.2

0.0 0.0
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '20 '21 '22 '23 '24 '25

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: FactSet and Ned Davis Research as of 4/30/25. Correlation of S&P 500 Stocks is measured by the median 63-day rolling correlation
of one day returns data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 36

EQUITIES

Valuation Analysis

Regions/Styles: Current NTM P/E vs. 10-Year High, Low, Average

High
70.0 65.3

Current
60.0
Average

Low
50.0

40.0
32.7

30.0
22.9
24.1 25.6 23.4 21.2
19.7
MSCI World 22.4 18.1
20.0 20.1 18.1 17.6 17.4 17.4
18.3 15.7
Current P/E 16.1 17.0
15.3 15.2 14.0 13.9
16.9 16.8 12.7 14.2 14.1 13.3 13.6
11.9 12.1
10.0 14.4 13.5
12.1 11.3 11.0 11.3
10.1 10.5

0.0 Russell 1000 Russell 1000 MSCI World ex MSCI AC

S&P 500 Russell 2000 Growth Value MSCI World USA Small Cap MSCI EAFE MSCI EM MSCI Europe Asia Pac

High Date 8/20 6/20 8/20 3/21 8/20 8/20 8/20 1/21 6/20 1/21

Low Date 12/18 9/22 2/16 9/22 12/18 9/22 9/22 10/18 9/22 12/18

Source: FactSet as of 4/30/25. NTM P/E is market price per share divided by expected earnings per share over the next twelve months. Data provided is for informational use only. See
end of report for important additional information. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass.

The BEAT | May 2025 37

EQUITIES

Valuation Analysis

S&P 500 Sectors: Current NTM P/E vs. 10-Year High, Low, Average

High
77.2

70.0
Current
Average
50.0 45.3
Low

30.4
24.0 26.2
30.0 22.1 21.3
S&P 500 25.4 22.6 19.9
24.1 17.7 22.1 24.7
22.3
17.5 19.8 18.7 21.6 19.8 17.8
Current P/E 16.6 15.3 16.1 16.9 16.3 17.3 17.7
14.2 13.5
10.0 16.9 16.4 14.7 14.7
13.8 13.6 12.2
10.0 9.3

(10.0)

(30.0) -263.8
*Not to scale
Communication Consumer Consumer Information
Services Discretionary Staples Energy Financials Health Care Industrials Technology Materials Utilities

High Date 8/20 6/20 2/25 4/16 11/24 8/24 8/20 6/24 7/20 3/22

Low Date 5/18 2/16 4/18 7/20 3/20 3/20 12/18 12/18 9/15 6/15

Source: FactSet as of 4/30/25. NTM P/E is market price per share divided by expected earnings per share over the next twelve months. The Real Estate sector is excluded from this 10-
year chart since the sector was created on August 31, 2016. Data provided is for informational use only. See end of report for important additional information. Forecasts/estimates are
based on current market conditions, subject to change, and may not necessarily come to pass.

The BEAT | May 2025 38

EQUITIES

Corporate Earnings Growth

Regions/Styles
Expected EPS Growth
50.0 2024 EPS Growth
36.67
40.0
30.0 28.97
20.0 14.57 14.45 18.25 14.08
9.67 17.32 9.40
10.48 7.58 6.35
10.0 3.33 1.92
7.41 7.46
2.66 0.16 3.02 0.50
0.0
(10.0)
Russell 2000 MSCI World ex Russell 1000 MSCI EM S&P 500 MSCI Asia Pac MSCI World Russell 1000 MSCI EAFE MSCI Europe
USA Small Cap Growth Value

S&P 500 Sectors

Expected EPS Growth

30.0
18.59 2024 EPS Growth
16.09 23.8515.10
20.0 18.80 16.84
18.95
8.58 6.97 12.51 6.94
10.0 6.03
2.25 2.18
4.01 4.05 2.18 0.82
0.0 0.01

(10.0) -10.25
-10.36
(20.0) -17.82
Info. Tech. Health Care Communications Industrials Materials Utilities Financials Discretionary Real Estate Staples Energy

Source: FactSet as of 4/30/25. Expected EPS Growth is defined as the expected % change in the EPS growth from the beginning of the current calendar year though the end of the
calendar year. 2024 EPS Growth is defined as the % change in EPS from the beginning of the year through the end of the year. Data provided is for informational use only. See end of
report for important additional information. Forecasts/estimates are based on current market conditions, subject to change, and may not necessarily come to pass.

The BEAT | May 2025 39

EQUITIES

S&P 500 Index: 1-Month Return Analysis

3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity

6.0% 2.0%
4.2 6.0% 5.0
4.0% 0.3
4.0%
0.0%
2.0% 2.0%
0.0% (0.7) (0.7) (0.5)
0.0%
(2.0%) (0.7) (0.5) (2.0%)
(2.0%) (0.7) (2.5)
(1.1) (4.0%) (2.8) (2.4)
(2.0)
(6.0%) (4.7)
(4.0%) (3.2) (4.0%) (3.5)
(4.2)
(6.0%)
S&P 500 14.0+ 9.4-14.0 7.2-9.4 4.4-7.2 <4.4

Market Cap Beta Dividend Yield

0.0% 4.0% 4.0% 2.9
(0.3) 2.4
(0.7) 2.0%
0.5
2.0%
(2.0%) (1.5) 0.0%
0.4
(2.0%) (0.7)
0.0%
(0.4)
(4.0%) (0.7) (4.0%) (3.6)
(2.0%)
(4.5) (6.0%) (4.5)
(2.3)
(6.5)
(6.0%) (4.0%) (3.4) (8.0%)
S&P 500 $100B+ $15B-$100B <$15B S&P 500 1.5+ 1.1-1.5 0.8-1.1 0.5-0.8 <0.65 S&P 500 3.5+ 2.4-3.5 1.6-2.4 0.6-1.6 0.0-0.6

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: FactSet as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 40

EQUITIES

S&P 500 Index: YTD Analysis

3-5 Year Earnings Growth Trailing 12 Month P/E Return On Equity

4.0% 0.0%
1.0 4.0%
1.8
0.0%
0.0% (1.7)
(2.5)
(4.0%) (2.4) (1.8) (4.0%)
(4.0%) (3.2)
(4.9) (4.8)
(4.9) (4.9)
(8.0%) (8.0%) (5.5)
(7.3) (7.1) (5.6)
(8.4) (8.3)
(12.0%) (12.0%) (8.0%) (7.1)

Market Cap Beta Dividend Yield

0.0% 4.0% 4.0%
2.4
(0.8) 0.7
0.2 0.3
0.0% 0.0%
(4.0%)
(2.1) (2.4)
(4.9) (4.0%) (4.0%)
(6.3)
(4.9) (4.9)
(8.0%) (5.7)
(7.9) (8.0%) (8.0%)
(7.3)

(9.9) (9.8)
(12.0%) (12.0%) (12.0%)
S&P 500 $100B+ $15B-$100B <$15B S&P 500 1.5+ 1.1-1.5 0.9-1.1 0.7-0.9 <0.7 S&P 500 3.5+ 2.4-3.5 1.6-2.4 0.6-1.6 0.0-0.6

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: FactSet as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 41

EQUITIES

Index Sectors: Return Analysis

S&P 500 MSCI World

Return % Return %
30.00 1 month 30.00 1 month
YTD YTD
1 year 1 year
20.00 20.00

10.00 10.00

0.00 0.00

(10.00) (10.00)

(20.00) (20.00)

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 42

EQUITIES

Current Characteristics and Sector Weights

MSCI MSCI World ex MSCI MSCI MSCI

S&P 500 R2000 R1000G R1000V World USA Small Cap EAFE EM MSCI Europe Asia Pac
Number of Holdings 503 1936 392 869 1352 2195 694 1206 399 1256
Maximum Market Cap $3,192.19B $17.79B $3,192.19B $1,150.76B $3,195.55B $11.99B $303.05B $699.42B $303.05B $699.42B
Minimum Market Cap $5.63B $0.01B $0.56B $0.24B $1.62B $0.10B $2.28B $0.11B $2.38B $0.11B
Dividend Yield 1.32 1.46 0.61 2.10 1.86 3.09 3.05 2.71 3.18 2.51
NTM PE 20.14 22.40 25.55 16.06 18.09 12.75 13.98 11.86 13.86 13.32
Price to Book 4.68 1.84 11.83 2.61 3.42 1.40 2.02 1.88 2.28 1.77
Price to Cash Flow 16.69 13.73 24.02 11.95 14.38 8.78 10.32 8.04 9.34 10.39
Price to Sales 2.84 1.14 5.21 1.73 2.27 0.91 1.48 1.48 1.51 1.45
Est 3-5 Yr EPS Growth 10.32 12.60 12.05 8.63 9.90 10.20 8.35 12.41 8.79 9.86
5Yr. Div Growth Rate 10.48 #N/A 11.95 7.18 5.10 5.34 3.80 2.47 4.29 1.22

Real Estate Utilities Real Estate Utilities

2% 3% 2% 3%

Materials Communication Services Communication Services

9% Materials 8%
2%
3%
Discretionary Discretionary
10% 10%
Information Technology Information Technology Staples
Staples 24% 7%
30%
6%
Energy Energy
3% 4%
Industrials
Industrials Financials 11% Financials
9% 15% 17%
Health Care Health Care
11% S&P 500 11% MSCI World

Source: FactSet as of 4/30/25. Data provided is for informational use only. See end of report for important additional information. Forecasts/estimates are based on current market
conditions, subject to change, and may not necessarily come to pass.

The BEAT | May 2025 43

EQUITIES

Asset Class Return Analysis (%)

1-Mo. 3-Mo. YTD 1Y 3Y 5Y 10Y 2024 2023 2022 2021 2020
S&P 500 -0.68 -7.50 -4.92 12.10 12.18 15.61 12.32 25.02 26.29 -18.11 28.71 18.40
Russell 1000 Defensive -1.10 -5.04 -2.42 11.39 10.00 12.76 11.43 18.55 20.23 -16.43 26.93 13.93
Russell 1000 Dynamic -0.08 -10.77 -7.57 12.46 13.72 17.90 12.44 30.63 33.34 -21.94 25.57 27.69
Russell 2500 -2.06 -12.51 -9.41 1.70 4.12 11.37 7.43 12.00 17.42 -18.37 18.18 19.99
U.S.
Russell 1000 Growth 1.77 -10.15 -8.37 14.53 15.60 17.23 15.27 33.36 42.68 -29.14 27.60 38.49
Equities
Russell 1000 Value -3.05 -5.36 -0.98 8.55 7.61 13.00 8.36 14.37 11.46 -7.54 25.16 2.80
Russell Mid Cap -1.03 -8.30 -4.40 7.33 7.08 12.96 8.81 15.34 17.23 -17.32 22.58 17.10
Russell 2000 -2.31 -13.83 -11.57 0.87 3.27 9.88 6.32 11.54 16.93 -20.44 14.82 19.96
CBOE S&P 500 Buywrite BXM -1.63 -6.72 -4.67 9.50 5.72 10.32 6.10 20.12 11.82 -11.37 20.47 -2.75

MSCI World 0.89 -4.30 -0.92 12.16 11.06 13.95 9.34 18.67 23.79 -18.14 21.82 15.90
MSCI EAFE 4.58 6.18 11.76 12.57 10.07 11.37 5.45 3.82 18.24 -14.45 11.26 7.82
MSCI EM 1.31 2.45 4.28 9.02 3.85 6.35 3.07 7.50 9.83 -20.09 -2.54 18.31
MSCI AC Asia Pac 2.73 2.16 3.63 9.65 5.98 7.19 4.43 9.56 11.45 -17.22 -1.46 19.71
MSCI ACWI 0.93 -3.64 -0.40 11.84 10.27 13.07 8.63 17.49 22.20 -18.36 18.54 16.25
Global MSCI Europe 4.37 7.88 15.31 13.69 11.04 12.82 5.68 1.79 19.89 -15.06 16.30 5.38
Equities MSCI World Small Cap 0.70 -6.31 -3.06 5.91 4.58 10.78 6.52 8.15 15.76 -18.76 15.75 15.96
MSCI World Ex USA Small Cap 5.52 5.74 9.10 12.54 5.12 9.46 5.47 2.76 12.62 -20.59 11.14 12.78
FTSE 100 2.80 6.70 12.42 15.43 10.27 12.86 4.53 7.73 14.38 -7.01 17.36 -8.73
FTSE All Small 4.62 3.93 3.53 11.40 4.14 11.83 5.28 8.62 12.57 -23.06 22.15 10.77
STOXX Europe 600 4.53 8.01 15.33 13.97 10.95 12.75 5.78 1.97 19.87 -16.14 16.09 6.83
Nikkei 225 Average 6.10 -0.40 0.27 5.14 8.57 7.62 6.12 8.45 22.05 -19.49 -4.69 23.99

S&P 500 Comm. Services 0.75 -13.40 -5.50 16.83 18.64 14.56 9.77 40.23 55.80 -39.89 21.57 23.61
S&P 500 Cons Disc -0.32 -17.70 -14.08 11.34 8.21 11.32 11.39 30.14 42.41 -37.03 24.43 33.30
S&P 500 Cons Staples 1.23 4.40 6.53 14.84 6.39 11.49 9.10 14.87 0.52 -0.62 18.63 10.75
S&P 500 Energy -13.65 -6.76 -4.83 -10.81 6.32 21.28 4.02 5.72 -1.33 65.72 54.64 -33.68
S&P 500 Financials -2.08 -4.87 1.37 22.82 14.36 18.77 11.80 30.56 12.15 -10.53 35.04 -1.69
Sectors S&P 500 Health Care -3.70 -3.93 2.59 1.86 4.29 8.90 8.88 2.58 2.06 -1.95 26.13 13.45
S&P 500 Industrials 0.19 -4.79 0.00 9.78 13.26 17.34 10.84 17.47 18.13 -5.48 21.12 11.06
S&P 500 Info Tech 1.62 -8.58 -11.24 13.79 19.12 21.56 20.56 36.61 57.84 -28.19 34.53 43.89
S&P 500 Materials -2.17 -4.75 0.58 -3.28 1.76 12.36 7.50 -0.04 12.55 -12.27 27.28 20.73
S&P 500 Real Estate -1.20 0.49 2.34 18.35 -0.39 7.65 6.97 5.23 12.36 -26.13 46.19 -2.17
S&P 500 Utilities 0.10 2.05 5.04 21.98 6.84 10.14 9.60 23.43 -7.08 1.57 17.67 0.48

Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. Data provided is for informational use only.
Results in US Dollar. See end of report for additional information.

The BEAT | May 2025 44

EQUITIES

Asset Class Return Analysis (%)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025
Higher Emerging
Growth Small-Cap Growth Growth Growth S&P 500 Value Growth Growth International
Markets
5.67 21.31 -1.51 36.39 38.49 28.71 -7.54 42.68 33.36 11.76
37.28

International International International

Value S&P 500 S&P 500 Small-Cap Growth International S&P 500 S&P 500
Small-Cap Small-Cap Small-Cap
17.34 -4.38 31.49 19.96 27.60 -14.45 26.29 25.02
5.46 31.04 9.10

Emerging
S&P 500 Mid-Cap Growth Value Mid-Cap S&P 500 Value Mid-Cap Global Global
Markets
1.38 13.80 30.21 -8.27 30.54 18.40 25.16 -17.32 22.20 17.49
4.28

Emerging
International S&P 500 International Mid-Cap Global Mid-Cap S&P 500 International Mid-Cap Global
Markets
-0.81 11.96 25.03 -9.06 26.60 22.58 -18.11 18.24 15.34 -0.40
18.31

Emerging
Global Global Global Value Mid-Cap Global Global Mid-Cap Value Value
Markets
-2.36 23.97 -9.42 26.54 17.10 18.54 -18.36 17.23 14.37 -0.98
11.19

Emerging
Mid-Cap Global S&P 500 Small-Cap Small-Cap Global Small-Cap Small-Cap Small-Cap Mid-Cap
Markets
-2.44 7.86 21.83 -11.01 25.52 16.25 14.82 16.93 11.54 -4.40
-20.09

International International International Emerging

Value Growth Mid-Cap International International Small-Cap S&P 500
Small-Cap Small-Cap Small-Cap Markets
-3.83 7.08 18.52 -13.79 11.26 -20.44 -4.92
25.41 12.78 12.62 7.50

International Emerging International International

Small-Cap Small-Cap International International Value International Growth
Small-Cap Markets Small-Cap Small-Cap
-4.41 14.65 22.01 7.82 11.46 3.82 -8.37
4.32 -14.58 11.14 -20.59

Emerging International Emerging Emerging Emerging International

International Value Value Growth Small-Cap
Markets Small-Cap Markets Markets Markets Small-Cap
1.00 13.66 2.80 -29.14 -11.57
-14.92 -18.07 18.42 -2.54 9.83 2.76
Lower

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. In general, Foreign securities are subject to currency, political, economic and market risks. The risks of investing in emerging market
countries are greater than investments in foreign developed countries. Investors should carefully review the risks of each asset class prior to investing. Source: Morningstar as of 4/30/25.
Data provided is for informational use only. See end of report for important additional information. Small-Cap represented by Russell 2000 Index. Emerging Markets represented by MSCI
Emerging Markets Index. Value represented by Russell 1000 Value Index. Mid-Cap represented by Russell Midcap Index. Global represented by MSCI ACWI Index. Growth represented
by Russell 1000 Growth Index. International represented by MSCI EAFE Index. International Small-Cap represented by MSCI World Ex USA Small Cap Index.

The BEAT | May 2025 45

ALTERNATIVES

Developed Market Currency Performance and Yields

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%)

Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y

U.S. Dollar (USD) - - - - - -4.97 -8.91 -5.94 -2.46 -0.74 4.00
Euro (EUR) * 5.24 9.78 6.31 2.52 0.75 - - - - - 1.77
British Pound (GBP) 3.48 6.65 6.67 2.09 1.15 -1.67 -2.85 0.34 -0.42 0.40 3.67
Japanese Yen (JPY) 4.84 10.18 10.32 -3.16 -5.60 -0.38 0.37 3.77 -5.54 -6.30 0.59
Australian Dollar (AUD) 2.68 3.34 -1.46 -3.44 -0.46 -2.43 -5.86 -7.31 -5.81 -1.19 3.45
Canadian Dollar (CAD) 4.20 4.12 -0.54 -2.56 0.11 -0.99 -5.15 -6.45 -4.95 -0.63 2.56
New Zealand Dollar (NZD) 4.79 5.93 0.29 -2.94 -0.77 -0.43 -3.51 -5.67 -5.33 -1.51 3.02
Norwegian Krone (NOK) 1.59 9.52 6.79 -3.51 -0.29 -3.47 -0.23 0.45 -5.88 -1.03 3.98
Swedish Krona (SEK) 4.15 14.56 13.80 0.51 0.25 -1.03 4.36 7.04 -1.96 -0.49 1.86
Danish Krone (DKK) 5.20 9.69 6.24 2.41 0.74 -0.04 -0.08 -0.07 -0.11 -0.01 1.55
Swiss Franc (CHF) 7.67 10.28 11.61 5.71 3.27 2.31 0.46 4.98 3.11 2.50 -0.16

U.S. Dollar Index

160

140

120

100

80

60
'70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. *German Rate. Source: Factset, Bloomberg as of 4/30/25. Dollar is represented by the US Trade Weighted Dollar Index (DXY). Data
provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 46

ALTERNATIVES

Emerging Market Currency Performance and Yields

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%)

Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y

Asia, excluding Japan

Chinese Renminbi (CNY) -0.15 0.50 -0.29 -3.20 -0.59 -5.12 -8.45 -6.21 -5.58 -1.32 1.44

Malaysian Ringgit (MYR) 2.84 3.63 10.60 0.30 -0.07 -2.28 -5.60 4.03 -2.17 -0.81 3.06

Indian Rupee (INR) 1.17 1.34 -1.24 -3.28 -2.33 -3.86 -7.69 -7.10 -5.66 -3.05 5.99

Indonesian Rupiah (IDR) -0.24 -3.04 -2.05 -4.41 -2.17 -5.20 -11.68 -7.86 -6.76 -2.89 6.12

Philippine Peso (PHP) 2.45 3.56 3.43 -2.23 -2.03 -2.64 -5.66 -2.72 -4.63 -2.76 4.17

Singapore Dollar (SGD) 2.94 4.48 4.45 1.88 1.52 -2.18 -4.83 -1.76 -0.62 0.76 2.10

South Korean Won (KRW) 3.59 3.56 -2.77 -4.04 -3.04 -1.57 -5.66 -8.55 -6.40 -3.75 2.34

Taiwanese Dollar (TWD) 3.81 2.51 1.81 -2.68 -1.45 -1.35 -6.62 -4.24 -5.08 -2.18 1.33

Thai Baht (THB) 1.56 2.07 10.94 0.84 -0.64 -3.50 -7.03 4.35 -1.64 -1.37 1.53

Latin America

Brazilian Real (BRL) 1.17 9.12 -8.45 -4.36 -0.89 -3.86 -0.60 -13.88 -6.71 -1.63 14.50

Chilean Peso (CLP) -0.46 3.99 -0.03 -3.74 -2.66 -5.42 -5.28 -5.97 -6.11 -3.38 5.02

Colombian Peso (COP) -0.75 4.30 -7.86 -1.98 -1.48 -5.68 -4.99 -13.33 -4.39 -2.21 8.98

Mexican Peso (MXN) 4.51 6.22 -12.96 1.40 3.99 -0.69 -3.24 -18.13 -1.09 3.23 8.41

Peruvian New Sol (PEN) -0.33 2.24 1.99 1.48 -1.68 -5.29 -6.86 -4.07 -1.02 -2.41 4.06

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Factset, Bloomberg as of 4/30/25. Data provided is for informational use only. See end of report for important additional information..

The BEAT | May 2025 47

ALTERNATIVES

Emerging Market Currency Performance and Yields

Spot Returns vs. USD (%) Spot Returns vs. EUR (%) Local Interest Rates (%)

Currency 1-Mo. YTD 1Y 3Y 5Y 1-Mo. YTD 1Y 3Y 5Y 1Y

Europe

Czech Koruna (CZK) 5.43 10.80 7.31 2.05 2.38 0.19 0.93 0.93 -0.45 1.62 3.25

Hungarian Forint (HUF) 4.88 11.66 2.75 0.26 -2.04 -0.34 1.72 -3.35 -2.21 -2.77 6.10

Polish Zloty (PLN) 3.06 9.78 7.54 5.65 1.94 -2.06 0.00 1.15 3.06 1.18 4.35

Romanian Leu (RON) 5.23 9.71 6.27 2.31 0.13 -0.01 -0.06 -0.04 -0.21 -0.61 6.51

Russian Ruble (RUB) 3.35 33.84 13.99 -4.77 -2.05 -1.79 21.92 7.22 -7.11 -2.77 --

Turkish New Lira (TRY) -1.30 -8.06 -15.82 -27.17 -28.90 -6.21 -16.25 -20.82 -28.96 -29.42 44.92

Middle East and Africa

Ghanaian Cedi (GHS) 9.93 4.26 -3.05 -18.89 -16.28 4.46 -5.03 -8.81 -20.88 -16.90 17.90

Israeli Shekel (ILS) 2.42 0.13 2.57 -2.80 -0.94 -2.68 -8.79 -3.52 -5.19 -1.67 4.12

Kenyan Shilling (KES) -0.08 -0.04 4.33 -3.63 -3.69 -5.05 -8.94 -1.87 -6.00 -4.40 17.90

Moroccan Dirham (MAD) 4.04 9.46 9.18 2.56 1.26 -1.14 -0.29 2.70 0.04 0.51 2.23

Nigerian Naira (NGN) -4.25 -3.66 -14.83 -36.26 -24.86 -9.01 -12.24 -19.89 -37.83 -25.41 21.57

South African Rand (ZAR) -1.15 1.42 1.23 -5.27 -0.26 -6.07 -7.62 -4.78 -7.60 -1.00 7.99

Ugandan Shilling (UGX) -0.08 1.01 3.93 -0.99 0.76 -5.05 -7.99 -2.24 -3.43 0.01 15.25

Zambian Kwacha (ZMK) 1.08 0.38 -3.60 -15.04 -7.69 -3.95 -8.56 -9.32 -17.13 -8.37 14.50

Past performance is no guarantee of future results. 4/30/25. Data provided is for informational use only. See end of report for important additional information..

The BEAT | May 2025 48

ALTERNATIVES

Local Sovereign Currency Yields

Developed Market Local Interest Rates % (1 Year) Emerging Market Local Interest Rates % (1 Year)
Current 1 Yr Prior Current 1 Yr Prior

4.00 44.92
U.S. Dollar (USD) Turkish New Lira (TRY)
5.06 42.49
3.98 Nigerian Naira (NGN) 21.57
Norwegian Krone (NOK) 11.54
4.27
Brazilian Real (BRL) 14.50
3.67 9.89
British Pound (GBP)
4.23 Mexican Peso (MXN) 8.41
10.99
3.45
Australian Dollar (AUD) South African Rand (ZAR) 7.99
4.03 9.21
3.02 Colombian Peso (COP) 8.98
New Zealand Dollar (NZD) 8.29
4.92
Indonesian Rupiah (IDR) 6.12
2.56 6.28
Canadian Dollar (CAD)
4.72 6.10
Hungarian Forint (HUF)
1.86 6.57
Swedish Krona (SEK) 5.02
3.42 Chilean Peso (CLP)
5.75
1.77 4.06
Euro (EUR) * Peruvian New Sol (PEN)
3.12 5.48
Philippine Peso (PHP) 4.17
1.55 5.96
Danish Krone (DKK)
3.23 4.35
Polish Zloty (PLN)
0.59 5.07
Japanese Yen (JPY) 3.06
0.18 Malaysian Ringgit (MYR)
3.27
-0.16 1.53
Swiss Franc (CHF) Thai Baht (THB)
0.94 2.11
-5.00 0.00 5.00 10.00 15.00 0.00 10.00 20.00 30.00 40.00 50.00

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. *German Rate. Source: Bloomberg as 4/30/25. Data provided is for informational use only. See end of report for important additional
information.

The BEAT | May 2025 49

ALTERNATIVES

Commodities Return Analysis (%)

Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y Index 1-Mo. 3-Mo. YTD 1Y 3Y 5Y

Bloomberg Commodity Index -4.81 -0.30 3.64 4.08 -3.70 13.74 Bloomberg Sub Industrial Metals -6.94 -0.33 1.04 -7.49 -6.91 11.02

Bloomberg Sub Agriculture 1.18 -1.53 3.23 3.24 -4.76 13.70 Aluminum -5.63 -7.72 -5.50 -7.96 -8.37 8.40

Coffee 6.57 10.46 31.00 103.2 34.63 34.79 Copper -9.15 6.59 13.69 1.60 3.30 15.34

Corn 3.02 -4.19 1.09 -1.49 -12.97 11.47 Nickel -3.19 1.02 0.13 -20.85 -21.49 4.79

Cotton -2.05 -1.62 -4.90 -16.77 -17.38 7.57 Zinc -9.10 -5.23 -13.12 -11.58 -11.18 7.89

Soybean 2.20 -1.37 2.08 -8.27 -5.16 12.01 Bloomberg Sub Precious Metals 3.09 13.31 21.94 37.69 17.65 13.55

Soybean Oil 8.49 5.25 20.69 15.23 -10.15 20.84 Gold 5.73 17.17 24.98 42.58 19.31 13.09

Sugar -7.27 -1.66 -0.84 0.12 8.95 18.33 Platinum -5.32 -7.35 6.59 1.98 2.61 4.01

Wheat -3.36 -8.71 -7.05 -20.71 -26.42 -6.36 Silver -5.71 0.88 11.72 21.89 11.86 15.82

Bloomberg Sub Energy -16.23 -8.64 -7.03 -10.61 -15.75 13.13 Bloomberg Sub Livestock 2.99 2.82 7.87 17.83 11.49 10.76

Brent Crude -17.16 -16.50 -14.08 -19.24 -4.12 30.83 Lean Hogs 3.51 -2.59 1.18 8.75 1.66 9.19

Heating Oil -10.27 -10.11 -5.74 -14.65 -0.70 33.67 Live Cattle 2.69 5.97 11.76 25.85 17.70 11.94

Natural Gas -17.81 9.49 7.98 9.10 -45.34 -21.41

Unleaded Gas -11.56 -10.29 -8.64 -17.57 1.64 37.72

WTI Crude Oil -17.86 -17.91 -16.12 -18.97 -6.68 29.62

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. Data provided is for informational use only. See end of report for important additional information.
Commodity represented by Bloomberg Commodity Index. Agriculture represented by Bloomberg Agriculture Subindex. Energy represented by Bloomberg Energy Subindex. Grains
represented by Bloomberg Grains Subindex. Industrial Metals represented by Bloomberg Industrial Metals Subindex. Livestock represented by Bloomberg Livestock Subindex. Precious
Metals represented by Bloomberg Precious Metals Subindex.

The BEAT | May 2025 50

ALTERNATIVES

Asset Class Return Analysis (%)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025
Higher Multi-Strategy MLP Long/Short Equity
Fixed Income
Long/Short Equity
Convertible
MLP MLP MLP MLP MLP
Arbitrage Arbitrage
3.84 18.31 13.41 12.17 40.17 30.92 26.56 24.41 12.58
1.10 10.25

Long/Short Equity Commodity Currency Global Macro Global Macro Long/Short Equity Commodity Managed Futures Long/Short Equity Long/Short Equity Commodity
3.55 11.77 11.54 -0.11 10.38 7.86 27.11 19.12 10.93 14.78 8.88

Equity Market Convertible Equity Market Equity Market

Multi-Strategy Managed Futures Event Driven Event Driven Commodity Event Driven Event Driven
Neutral Arbitrage Neutral Neutral
-1.05 9.01 6.95 12.92 16.09 9.30 13.03
1.69 6.60 8.45 4.41
Convertible Convertible
Multi-Strategy Multi-Strategy Event Driven Global Macro Global Macro Global Macro Currency Multi-Strategy Global Macro
Arbitrage Arbitrage
4.41 6.83 8.22 6.53 9.60 15.89 8.44 8.66 3.53
0.81 -2.26
Fixed Income Fixed Income Fixed Income Convertible Equity Market Fixed Income
Currency Multi-Strategy Long/Short Equity Multi-Strategy Multi-Strategy
Arbitrage Arbitrage Arbitrage Arbitrage Neutral Arbitrage
-3.33 5.60 8.35 8.04 3.44
0.59 4.29 6.52 8.15 1.71 8.49
Fixed Income Fixed Income Equity Market
Global Macro Global Macro Event Driven Event Driven Commodity Managed Futures Multi-Strategy Currency
Arbitrage Arbitrage Neutral
0.18 3.58 6.30 -3.95 7.69 8.19 1.27 3.13
3.64 7.71 8.05
Convertible Fixed Income Equity Market Convertible Fixed Income
Managed Futures Currency Long/Short Equity Multi-Strategy Managed Futures Multi-Strategy
Arbitrage Arbitrage Neutral Arbitrage Arbitrage
-0.93 3.54 -4.62 7.25 1.86 6.97
5.01 -0.97 6.73 7.35 2.67
Equity Market Convertible Convertible Convertible Convertible
Event Driven Event Driven Managed Futures MLP Currency Global Macro
Neutral Arbitrage Arbitrage Arbitrage Arbitrage
-6.29 2.68 3.29 6.56 1.73 5.52
-5.00 6.33 -3.32 4.04 2.51
Fixed Income Equity Market Equity Market
Currency Long/Short Equity Global Macro Managed Futures Long/Short Equity Managed Futures Commodity Event Driven
Arbitrage Neutral Neutral
-7.61 -3.43 2.14 -6.67 -5.77 -2.78 5.38 0.73
6.10 1.69 6.16
Equity Market Fixed Income
Commodity Commodity Commodity Currency Commodity Event Driven Global Macro Managed Futures Long/Short Equity
Neutral Arbitrage
-24.66 1.70 -11.25 5.20 -3.12 -6.80 -5.19 2.87 0.66
-4.58 5.22
Equity Market
MLP Managed Futures MLP MLP MLP Currency Currency Commodity Currency Managed Futures
Neutral
-32.59 -6.84 -6.52 -12.42 -28.69 -3.09 -7.14 -7.91 -1.08 -1.72
1.58
Lower

Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Morningstar as of 3/31/25. *Data is on a 1-month lag. Data provided is for
informational use only. Alternative investments often are speculative and include a high degree of risk. See end of report for important additional information. Global Macro represented by
Credit Suisse Global Macro Index. MLP represented by Alerian MLP Index. Event Driven represented by Credit Suisse Event Driven Index. Multi-Strategy represented by Credit Suisse
Multi-Strategy Index. Long/Short Equity represented by Credit Suisse Long/Short Equity Index. Convertible Arbitrage represented by Credit Suisse Convertible Arbitrage Index. Currency
represented by J.P. Morgan EMLI+ Index. Equity Market Neutral represented by Credit Suisse Equity Market Neutral Index. Fixed Income Arbitrage represented by Credit Suisse Fixed
Income Arbitrage Index. Managed Futures represented by Credit Suisse Managed Futures Index. Commodity represented by Bloomberg Commodity Index.

The BEAT | May 2025 51

TRANSITION

Major Asset Classes Correlation Table

Emerging
S&P 500 International Markets Small Cap U.S. Aggregate Municipal High Yield Bank Loan Commodities

S&P 500 1.00 0.85 0.68 0.86 0.39 0.42 0.80 0.60 0.38

International 0.83 1.00 0.79 0.76 0.43 0.47 0.80 0.59 0.42

Emerging
0.60 0.74 1.00 0.61 0.40 0.44 0.70 0.56 0.48
Markets

Small Cap 0.83 0.74 0.55 1.00 0.29 0.34 0.77 0.64 0.37

U.S.
0.61 0.69 0.62 0.51 1.00 0.84 0.50 0.15 -0.05
Aggregate

Municipal 0.66 0.68 0.66 0.56 0.88 1.00 0.57 0.29 0.04

High Yield 0.82 0.80 0.63 0.76 0.73 0.75 1.00 0.80 0.49

Bank Loan 0.56 0.56 0.51 0.58 0.34 0.42 0.70 1.00 0.49

Commodities 0.31 0.34 0.35 0.25 0.03 0.04 0.34 0.37 1.00

5 Years ended April 30, 2025 10 Years ended April 30, 2025

Past performance is no guarantee of future results.

It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. The table above shows the return correlation between various asset classes (represented by market
indices as defined in this disclosure) over the past five and ten years. Data provided is for informational use only. See end of report for important additional information. S&P 500 is
represented by the S&P 500 Index. International is represented by MSCI EAFE Index. Emerging Markets is represented by MSCI Emerging Markets Index. Small-Cap is represented by
Russell 2000 Index. US Aggregate is represented by the Bloomberg Barclays Capital US Aggregate Bond Index. Municipal is represented by Bloomberg Barclays Municipal Bond Index.
High Yield is represented by ICE BofA US High Yield Index. Bank Loan is represented by Morningstar LSTA U.S. Leveraged Loan Index. Commodities is represented by Bloomberg
Commodity Index.

The BEAT | May 2025 52

TRANSITION

Fund and ETF Flows by Category

Top 10 Open-End Mutual Fund Categories Top 10 Exchange-Traded Fund Categories

by Monthly Flows ($MM) by Monthly Flows ($MM)
1 Mo. 3 Mo. 12 Mo. 1 Mo. 3 Mo. 12 Mo.
Intermediate Core-Plus Bond 6,706 4,587 13,767 Large Blend 21,973 69,667 378,497
Multisector Bond 3,258 9,551 40,686 Ultrashort Bond 14,065 40,443 87,808
Ultrashort Bond 1,171 3,734 11,204 Large Value 11,261 18,911 68,460
Nontraditional Bond 988 4,674 12,117 Trading--Leveraged Equity 8,006 5,631 12,284
Equity Market Neutral 751 1,832 3,497 Foreign Large Blend 7,902 17,784 65,906
Equity Hedged 708 856 1,143 Commodities Focused 7,394 11,006 17,435
Europe Stock 707 1,162 1,563 Large Growth 6,397 22,369 97,483
Macro Trading 472 1,236 3,529 Europe Stock 5,718 7,994 1,158
Corporate Bond 468 332 3,986 Intermediate Core Bond 4,466 14,182 60,528
Long Government 363 2,702 5,381 Derivative Income 3,799 15,715 43,629

Bottom 10 Open-End Mutual Fund Categories Bottom 10 Exchange-Traded Fund Categories

by Monthly Flows ($MM) by Monthly Flows ($MM)
1 Mo. 3 Mo. 12 Mo. 1 Mo. 3 Mo. 12 Mo.
Mid-Cap Value -2,737 -7,200 -23,593 Technology -936 2,995 16,879
Mid-Cap Growth -2,798 -8,121 -32,881 Communications -1,001 331 -824
Long-Term Bond -3,110 -4,048 -5,250 Equity Energy -1,043 -3,679 -10,775
Diversified Emerging Mkts -3,590 -7,214 -18,143 Health -1,132 -1,888 -9,455
Intermediate Government -4,199 -5,163 -14,109 Digital Assets -1,465 1,951 31,505
Moderate Allocation -5,916 -12,359 -44,030 Consumer Cyclical -2,106 -1,968 -3,382
Foreign Large Blend -7,132 -13,777 -5,166 Small Value -2,382 -835 8,656
Large Value -7,371 -18,855 -71,763 Foreign Large Growth -3,020 -2,896 3,853
Large Blend -8,536 -19,678 -126,694 Bank Loan -3,639 671 8,646
Large Growth -9,482 -35,184 -127,956 Intermediate Government -4,588 -511 25,460

Source: Morningstar as of 3/31/25. Flow data is on a one-month lag. Data provided is for informational use only. See end of report for important additional information.

The BEAT | May 2025 53

TRANSITION

Major Asset Class Return Analysis (%)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025
Higher
Municipal Small-Cap Emerging Markets Municipal S&P 500 Small-Cap S&P 500 Commodities S&P 500 S&P 500 International
3.30 21.31 37.28 1.28 31.49 19.96 28.71 16.09 26.29 25 .02 11.76

S&P 500 High Yield International Bank Loan Small-Cap S&P 500 Commodities Bank Loan International Small-Cap Emerging Markets
1.38 17.49 25.03 0.44 25.52 18.40 27.11 -0.77 18.24 11.54 4.28

US Agg S&P 500 S&P 500 US Agg International Emerging Markets Small-Cap Municipal Small-Cap Asset Allocation Commodities
0.55 11.96 21.83 0.01 22.01 18.31 14.82 -8.53 16.93 9.79 3.64

Bank Loan Commodities Small-Cap High Yield Asset Allocation Asset Allocation Asset Allocation High Yield Asset Allocation Bank Loan US Agg
-0.69 11.77 14.65 -2.26 18.70 11.95 11.43 -11.22 14.09 8.95 3.18

International Emerging Markets Asset Allocation S&P 500 Emerging Markets International International US Agg High Yield High Yield High Yield
-0.81 11.19 14.02 -4.38 18.42 7.82 11.26 -13.01 13.46 8.20 0.95

Asset Allocation Bank Loan High Yield Asset Allocation High Yield US Agg High Yield Asset Allocation Bank Loan Emerging Markets Asset Allocation
-2.03 10.16 7.48 -5.40 14.41 7.51 5.36 -13.04 13.32 7.50 0.48

Small-Cap Asset Allocation Municipal Small-Cap US Agg High Yield Bank Loan International Emerging Markets Commodities Bank Loan
-4.41 8.61 5.45 -11.01 8.72 6.17 5.20 -14.45 9.83 5.38 0.43

High Yield US Agg Bank Loan Commodities Bank Loan Municipal Municipal S&P 500 Municipal International Municipal
-4.64 2.65 4.12 -11.25 8.64 5.21 1.52 -18.11 6.40 3.82 -1.03

Emerging Markets International US Agg International Commodities Bank Loan US Agg Emerging Markets US Agg US Agg S&P 500
-14.92 1.00 3.54 -13.79 7.69 3.12 -1.54 -20.09 5.53 1.25 -4.92

Commodities Municipal Commodities Emerging Markets Municipal Commodities Emerging Markets Small-Cap Commodities Municipal Small-Cap
-24.66 0.25 1.70 -14.57 7.54 -3.12 -2.54 -20.44 -7.91 1.05 -11.57
Lower
Past performance is no guarantee of future results. It is not possible to invest directly in an index. Source: Morningstar as of 4/30/25. Data provided is for informational use only.
Investing involves risks including the possible loss of principal. Investors should carefully review the risks of each asset class prior to investing. See end of report for important additional
information. S&P 500 represented by the S&P 500 Index. International represented by MSCI EAFE Index. Emerging Markets represented by MSCI Emerging Markets Index. Small-Cap
represented by Russell 2000 Index. US Aggregate represented by the Bloomberg Capital US Aggregate Bond Index. Municipal represented by Bloomberg Municipal Bond Index. High
Yield represented by ICE BofA US High Yield Index. Bank Loan represented by Morningstar LSTA U.S. Leveraged Loan Index. Commodity represented by Bloomberg Commodity Index.
The Asset Allocation portfolio assumes the following weights: 25% in the S&P 500 Index, 15% in the MSCI EAFE Index, 5% in the MSCI Emerging Markets Index, 10% in the Russell
2000 Index, 25% in the Bloomberg Capital US Aggregate Bond Index, 5% in the Bloomberg Municipal Bond Index, 5% in the Bloomberg US Corporate High Yield Index, 5% in the
Morningstar LSTA U.S. Leveraged Loan Index, and 5% in the Bloomberg Commodity Index.

The BEAT | May 2025 54

Portfolio Solutions Group
The Portfolio Solutions Group is a
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JIM CARON EWA TUREK ERIC ZHANG SCHUYLER
(public and private assets) and fully
Chief Investment SEMMELROTH Executive Director HOOPER
private portfolios. Offerings are Officer Executive Director Executive Director
delivered by a managed portfolio or Managing Director

model, in discretionary or advisory

format.

The team’s expertise lies in

partnering with institutional,
intermediaries and high net worth
investors to understand their unique
needs and crafting solutions to help GREG UMAR MALIK CHRIS CHIA SACHIN
them achieve their overall WATERMAN Vice President Vice President RAGHAVAN

investment objectives. Executive Director Associate

. 55
The BEAT | May 2025
Asset Allocation Committee

MARK BAVOSO VISHAL KHANDUJA, CFA

The Asset Allocation Committee Senior Portfolio Manager, Global Multi-Asset Team Portfolio Manager
is an independent group of senior Co-Head of the Broad Markets Fixed Income Team
JUSTIN BOURGETTE, CFA
investment professionals across Portfolio Manager KYLE LEE, CFA
Head of Investment Strategy for the High Yield Team Portfolio Manager
various disciplines within MSIM Co-Head of the Emerging Markets Team
CRAIG BRANDON, CFA
and Eaton Vance. The Portfolio Portfolio Manager SCOTT R. NORBY
Co-Head of the Municipals Team Private Credit and Equity
Solutions Group presents multi-
JIM CARON NISHA PATEL, CFA
sector research and investment Chief Investment Officer, Portfolio Solutions Group Senior Portfolio Manager
ideas to the Committee, who is Head of Fixed Income SMA Management, Parametric
AARON DUNN, CFA
responsible for vetting and Portfolio Manager CHRISTOPHER REMINGTON
Co-Head of the Value Equity Team Institutional Portfolio Manager
challenging these ideas to insure Head of Fixed Income Product & Portfolio Strategy
GREG FINCK
they meet their rigorous standards Portfolio Manager ANDREW SLIMMON
Co-Head of the Mortgage and Securitized Team Senior Portfolio Manager
and can then be included in Head of Applied Equity Advisors
BRAD GODFREY, CFA
representative asset allocation Co-Head of the Emerging Markets Team ANDREW SZCZUROWSKI, CFA
recommendations. Portfolio Manager
KATIE HERR Co-Head of the Mortgage and Securitized Team
Head of Fixed Income Product Strategy
STEVEN TURNER, CFA
LAUREN HOCHFELDER Head of Investment Selection,
Co-Chief Executive Officer of MSREI Portfolio Solutions Group
Head of MSREI Americas
MARK VAN DER ZWAN, CFA
JITANIA KANDHARI Chief Investment Officer and Head of the AIP Hedge
Deputy CIO, Solutions & Multi Asset Group; Fund Team
Head of Macro & Thematic Research,
Emerging Markets; Portfolio Manager

The BEAT | May 2025 56

Index Definitions
The Bloomberg Capital Expenditure Index measures capital CBOE Volatility Index (VIX) tracks the implied volatilities of a wide range Morgan Stanley Capital International (MSCI) Emerging Markets Index
expenditure in the U.S. of S&P 500 Index options. is an unmanaged index of emerging markets common stocks
Bloomberg Commodity Index is a broadly diversified index tracking CBOE S&P 500 BuyWrite Index measures the performance of a MSCI EMU Index (European Economic and Monetary Union) captures
futures contracts on physical commodities. hypothetical buy-write strategy on the S&P 500 Index. large and mid cap representation across the 10 Developed Markets
countries in the EMU. With 229 constituents, the index covers
The Bloomberg ECO Labor Market Surprise Index measures economic Citigroup Eurozone Economic Surprise Index represents the sum of
approximately 85% of the free float-adjusted market capitalization of the
data releases on the labor market compared to market expectations. the difference between official economic results and forecasts in Europe.
EMU.
Bloomberg Euro-Aggregate Corporates Index consists of bonds issued Citigroup U.S. Economic Surprise Index represents the sum of the
Morgan Stanley Capital International All Country Asia Pacific Index
in the euro or the legacy currencies of the 16 sovereign countries difference between official economic results and forecasts in the U.S.
(MSCI AC Asia Pac) is an unmanaged total return, capitalization-weighted
participating in the European Monetary Union (EMU)
The DAX consists of the 40 major German blue chip companies trading on index that measures the performance of stock markets in 15 Pacific region
Bloomberg Global Aggregate Ex-USD Index is a broad-based measure the Frankfurt Stock Exchange. countries, including Australia, China, Hong Kong, India, Indonesia, Japan,
of global Investment Grade fixed-rate debt investments, excluding USD- Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri
ICE BofA US Inflation-Linked Treasury Index tracks the performance of
denominated debt. Lanka, Taiwan and Thailand.
USD denominated inflation linked sovereign debt publicly issued by the
Bloomberg High Yield Municipal Bond Index is an unmanaged index of US government. Morgan Stanley Capital International (MSCI) Japan Index is an
non-Investment Grade Municipal bonds traded in the U.S. unmanaged index designed to measure the performance of the large and
ICE BofA Fixed Rate Preferred Securities Index is an unmanaged index
mid cap segments of the Japan market.
Bloomberg Magnificent 7 Index is an equal-dollar weighted equity of fixed-rate, preferred securities issued in the U.S.
benchmark consisting of Alphabet, Amazon, Apple, Microsoft, Meta, Morgan Stanley Capital International (MSCI) World Index is an
ICE BofA European Union Government Bond Index tracks the
Nvidia and Tesla. unmanaged index of equity securities in the developed markets.
performance of sovereign debt publicly issued by countries that are
Bloomberg Municipal Bond Index is an unmanaged index of Municipal members of the European Union. Morgan Stanley Capital International (MSCI) World ex USA Small Cap
bonds traded in the U.S. Index is an unmanaged index of small-cap equity securities in the
ICE BofA U.S. High Yield Index is an unmanaged index of below-
developed markets, excluding the United States.
Bloomberg Pan-European High Yield Index covers the universe of investment grade U.S. corporate bonds.
fixed-rate, sub-investment-grade debt denominated in euros or other Morgan Stanley Capital International All Country World (MSCI AC
ICE BofA Developed Markets High Yield Ex-Subordinated Financial
European currencies (except Swiss francs). World) Index is an unmanaged free float-adjusted market-capitalization-
Index (Hedged) is an unmanaged index of global developed market
weighted index designed to measure the equity market performance of
Bloomberg Taxable Municipal Bond Index is an unmanaged index of below investment grade corporate bonds, USD hedged.
developed and emerging markets.
Taxable Municipal bonds traded in the U.S.
FTSE 100 Index is an unmanaged market-capitalization weighted index
Morgan Stanley Capital International Europe (MSCI Europe) Index is
Bloomberg U.S. Agency Index measures agency securities issued by representing the performance of the 100 largest UK listed blue chip
an unmanaged free float-adjusted market-capitalization-weighted index
U.S government agencies, quasi-federal corporations, and corporate or companies, which pass screening for size and liquidity.
designed to measure the equity market performance of the developed
foreign debt guaranteed by the U.S. government.
FTSE All Small Index consists of all the companies in the FTSE markets in Europe.
Bloomberg U.S. Aggregate Index is an unmanaged index of domestic SmallCap and FTSE Fledgling indices.
Morgan Stanley Capital International Europe, Australasia, Far East
investment-grade bonds, including corporate, government and mortgage-
FTSE World Government Bond Index (WGBI) measures the (MSCI EAFE) Index is an unmanaged index of equities in the developed
backed securities.
performance of fixed-rate, local currency, investment-grade sovereign markets, excluding the U.S. and Canada.
Bloomberg U.S. Asset Backed Securities (ABS) Index measures ABS bonds.
MSCI USA Index is designed to measure the performance of the large and mid
with the following collateral type: credit and charge card, auto, and utility
J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Broad cap segments of the US market. With 625 constituents, the index covers
loans.
Diversified is an unmanaged index of USD-denominated emerging approximately 85% of the free float-adjusted market capitalization in the US.
Bloomberg U.S. CMBS Index measures the market of conduit and fusion market corporate bonds.
MSCI China captures large and mid-cap representation across China A-
CMBS deals with a minimum current deal size of $300mn.
J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified shares, B-shares, H-shares, Red-chips and P-chips. It reflects the Mainland
Bloomberg U.S. Corporate Investment Grade Index is an unmanaged is an unmanaged index of USD-denominated bonds with maturities of China and Hong Kong opportunity set from an international investor’s
index that measures the performance of investment-grade corporate more than one year issued by emerging markets governments. perspective.
securities within the Barclays U.S. Aggregate Index.
J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) The MSCI India Index is designed to measure the performance of the large
Bloomberg U.S. Mortgage-Backed Securities (MBS) Index measures Global Diversified is an unmanaged index of local-currency bonds with and mid cap segments of the Indian market.
agency mortgage-backed pass-through securities issued by GNMA, maturities of more than one year issued by emerging market governments.
FNMA, and FHLMC.
The MDAX lists German companies trading on the Frankfurt Stock
Bloomberg U.S. Treasury Index measures public debt instruments Exchange. It includes the 50 Prime Standard shares that rank in size
issued by the U.S. Treasury. immediately below the companies included in the DAX index.

The BEAT | May 2025 57

ADDITIONAL INFORMATION

Index Definitions, Terms and About Risk

The MSCI World Index is a free float adjusted market capitalization weighted index that is designed to measure sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any
the global equity market performance of developed markets. The term "free float" represents the portion of shares liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices.
outstanding that are deemed to be available for purchase in the public equity markets by investors. The
Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions,
performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends.
expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index. Data provided is for
The MSCI USA Health Care Index is designed to capture the large and mid cap segments of the US equity informational use only. Past performance is no guarantee of future results. See end of report for important
universe. All securities in the index are classified in the Health Care sector as per the Global Industry additional information.
Classification Standard.
Municipal-to-Treasury Yield Ratios are relative value indicators that measure the richness or cheapness of
Morningstar LSTA U.S. Leveraged Loan Index is an unmanaged index of the institutional leveraged loan Municipal bond yields to comparable maturity Treasury bond yields.
market. Prior to August 29, 2022, the index name was S&P/LSTA Leveraged Loan Index.
Nikkei 225 Stock Average Index is unmanaged price-weighted index of 225 top-rated Japanese companies
Terms
listed in the First Section of the Tokyo Stock Exchange. Yield to Worst is a measure which reflects the lowest potential yield earned on a bond without the issuer
defaulting. The yield to worst is calculated by making worst-case scenario assumptions by calculating the returns
Russell 1000 Index is an unmanaged index of 1,000 U.S. large-cap stocks.
that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer.
Russell 1000 Growth Index is an unmanaged index of 1,000 U.S. large-cap growth stocks.
Russell 1000 Value Index is an unmanaged index of 1,000 U.S. large-cap value stocks.
About Risk
Bank Loans – There can be no assurance that the liquidation of collateral securing an investment will satisfy the
Russell 2000 Index is an unmanaged index of 2,000 U.S. small-cap stocks.
issuer’s obligation in the event of non-payment or that collateral can be readily liquidated. The ability to realize the
Russell 2500 Index is an unmanaged index of approximately 2,500 U.S. small- and mid-cap U.S. stocks. benefits of any collateral may be delayed or limited. Commodities – The value of commodities investments will
generally be affected by overall market movements and factors specific to a particular industry or commodity
Russell Midcap Index is an unmanaged index of U.S. mid-cap stocks.
including weather, embargoes, tariffs, or health, political, international and regulatory developments. Credit –
Standard & Poor’s 400 Index is designed to measure the performance of 400 mid-sized U.S. companies, Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject
reflecting the distinctive risk and return characteristics of this market segment. to the risk of non-payment of principal and interest. The value of income securities also may decline because of
real or perceived concerns about the issuer’s ability to make principal and interest payments. Duration –
Standard & Poor’s 493 Index is designed to measure the performance of the S&P 500 excluding the “Mag 7” i.e.
Securities with longer durations tend to be more sensitive to interest rate changes than securities with shorter
Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
durations. Equity – Equity investment values are sensitive to stock market volatility. Foreign – Investments in
Standard & Poor’s 500 Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse
stock market performance. market, economic, political, regulatory, geopolitical, or other conditions. In emerging countries, these risks may be
more significant. Gov’t Agency – While certain U.S. Government-sponsored agencies may be chartered or
STOXX Europe 600 Index is a fixed component number index designed to provide a broad yet liquid
sponsored by acts of Congress, their securities are neither issued nor guaranteed by the U.S. Treasury. Income
representation of large, mid and small capitalization companies in Europe.
Market – An imbalance in supply and demand in the income market may result in valuation uncertainties and
ICE BofA Indexes: ICE® BofA® indices are not for redistribution or other uses; provided “as is”, without greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. There
warranties, and with no liability. Eaton Vance has prepared this report and ICE Data Indices, LLC does not generally is limited public information about Municipal issuers. Inflation-Linked – Interest payments on inflation-
endorse it, or guarantee, review, or endorse Eaton Vance’s products. BofA® is a licensed registered trademark of linked securities may vary widely and will fluctuate as principal and interest are adjusted for inflation. Investments
Bank of America Corporation in the United States and other countries. in inflation-linked securities may lose value in the event that the actual rate of inflation is different than the rate of
the inflation index. Interest Rate – As interest rates rise, the value of certain income investments is likely to
MSCI Indexes: Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides
decline.. Lower-Rated – Investments rated below Investment Grade (typically referred to as “junk”) are generally
no warranties, has not prepared or approved this report, and has no liability hereunder.
subject to greater price volatility and illiquidity than higher rated investments. Maturity – Longer-term bonds
J.P. Morgan Indices: Information has been obtained from sources believed to be reliable, but J.P. Morgan does typically are more sensitive to interest rate changes than shorter-term bonds. Preferred Stocks – When interest
not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used, rates rise, the value of preferred stocks will generally decline. Prepayment - MBS – Mortgage-backed securities
or distributed without J.P. Morgan’s prior written approval. Copyright 2019, J.P. Morgan Chase & Co. All rights are subject to prepayment risk. Prepayment - Bank Loan – Bank Loans are subject to prepayment risk. Real
reserved. Estate – Changes in real estate values or economic downturns can have a significant negative effect on issuers in
the real estate industry, including REITs.
S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for
use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow
Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not

The BEAT | May 2025 58

ADDITIONAL INFORMATION

Risk Considerations
This material has been prepared on the basis of publicly available information, internally developed data
Diversification does not eliminate the risk of loss.
and other third-party sources believed to be reliable. However, no assurances are provided regarding
In general, equity securities’ values also fluctuate in response to activities specific to a company. the reliability of such information and the Firm has not sought to independently verify information taken
Investments in foreign markets entail special risks such as currency, political, economic, and market from public and third-party sources.
risks. The risks of investing in emerging market countries are greater than risks associated with
This material is a general communication, which is not impartial, and all information provided has been
investments in foreign developed countries. Fixed income securities are subject to the ability of an
prepared solely for informational and educational purposes and does not constitute an offer or a
issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-
recommendation to buy or sell any particular security or to adopt any specific investment strategy. The
rate risk), the creditworthiness of the issuer and general market liquidity (market risk). In a rising
information herein has not been based on a consideration of any individual investor circumstances and
interest-rate environment, bond prices may fall and may result in periods of volatility and increased
is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory
portfolio redemptions. In a declining interest-rate environment, the portfolio may generate less income.
advice. To that end, investors should seek independent legal and financial advice, including advice as to
Longer-term securities may be more sensitive to interest rate changes. Alternative investments are
tax consequences, before making any investment decision.
speculative, involve a high degree of risk, are highly illiquid, typically have higher fees than other
investments, and may engage in the use of leverage, short sales, and derivatives, which may increase The Firm does not provide tax advice. The tax information contained herein is general and is not
the risk of investment loss. These investments are designed for investors who understand and are exhaustive by nature. It was not intended or written to be used, and it cannot be used by any taxpayer,
willing to accept these risks. Performance may be volatile, and an investor could lose all or a substantial for the purpose of avoiding penalties that may be imposed on the taxpayer. Each Jurisdiction tax laws
portion of its investment. are complex and constantly changing. You should always consult your own legal or tax professional for
information concerning your individual situation.
There is no guarantee that any investment strategy will work under all market conditions, and each
investor should evaluate their ability to invest for the long-term, especially during periods of downturn in Charts and graphs provided herein are for illustrative purposes only. Past performance is no
the market. guarantee of future results.
A separately managed account may not be appropriate for all investors. Separate accounts The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible
managed according to the Strategy include a number of securities and will not necessarily track to invest directly in an index. Any index referred to herein is the intellectual property (including registered
the performance of any index. Please consider the investment objectives, risks and fees of the trademarks) of the applicable licensor. Any product based on an index is in no way sponsored,
Strategy carefully before investing. A minimum asset level is required. endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect
thereto.
For important information about the investment managers, please refer to Form ADV Part 2.
This material is not a product of Morgan Stanley’s Research Department and should not be regarded as
The views and opinions and/or analysis expressed are those of the author or the investment team as of
a research material or a recommendation.
the date of preparation of this material and are subject to change at any time without notice due to
market or economic conditions and may not necessarily come to pass. Furthermore, the views will not The Firm has not authorized financial intermediaries to use and to distribute this material, unless such
be updated or otherwise revised to reflect information that subsequently becomes available or use and distribution is made in accordance with applicable law and regulation. Additionally, financial
circumstances existing, or changes occurring, after the date of publication. The views expressed do not intermediaries are required to satisfy themselves that the information in this material is appropriate for
reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and any person to whom they provide this material in view of that person’s circumstances and purpose. The
its subsidiaries and affiliates (collectively “the Firm”) and may not be reflected in all the strategies and Firm shall not be liable for, and accepts no liability for, the use or misuse of this material by any such
products that the Firm offers. financial intermediary.
Forecasts and/or estimates provided herein are subject to change and may not actually come to pass. This material may be translated into other languages. Where such a translation is made this English
Information regarding expected market returns and market outlooks is based on the research, analysis version remains definitive. If there are any discrepancies between the English version and any version
and opinions of the authors or the investment team. These conclusions are speculative in nature, may of this material in another language, the English version shall prevail.
not come to pass and are not intended to predict the future performance of any specific
strategy or product the Firm offers. Future results may differ significantly depending on factors such as
changes in securities or financial markets or general economic conditions.

The BEAT | May 2025 59

ADDITIONAL INFORMATION

The whole or any part of this material may not be directly or indirectly reproduced, copied, modified, Spain: MSIM FMIL (Madrid Branch), Calle Serrano 55, 28006, Madrid, Spain. Germany: MSIM FMIL
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Paris, France.

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ADDITIONAL INFORMATION

ASIA PACIFIC
Hong Kong: This material is disseminated by Morgan Stanley Asia Limited for use in Hong Kong and shall only be made available to “professional investors” as defined under the
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RO 4435861 Exp 5/31/2026

5265 | 5/5/2025

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