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QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2025 Multi-Asset Class Management Inflation (U.S.): •While inflation has fallen since its peak in 2022, progress towards 2% target remains slow. •The Fed has acknowledged higher inflation and slower growth in their recent projections. Proposed tariff policies may put pressure on input costs and goods while demand side pullback could ease some pressure. Economic Growth (Global): •U.S. GDP is expected to grow slower than in 2024. Recession probability is rising,and we are closely watching economic activity indicators. •Economic growth outside the U.S. remains modest with some improvement in Eurozone expected due to increased fiscal spending. Tariffs pose growth and inflation risks. Monetary Policy (Global): •Recent uncertainty had led Fed to continue to pause on rate cuts so far this year. Market expects first rate cut in June. Path and magnitude of rate cuts for 2025 remains uncertain. •European Central Bank has continued to ease this year while the Bank of Japan has delivered rate hikes –both diverging from the Fed. Labor Markets (U.S.): •The labor market remains well-positioned,but continued tariff uncertainty could lead to an increase in unemployment rate. Federal layoffs make up a smaller proportion of overall labor force but sustained slowdown in pace of hiring as negative impact on economic growth expectations. Consumer Spending (U.S.): •Broad consumer metrics are supportive of economic strength. A growing divergence among consumers exists as lower-income cohorts continue to feel more strain due to the higher overall level of prices. •An unexpected material deterioration of labor market conditions is the biggest risk to consumer spending. Financial Conditions (U.S.): •Even after the recent bout of volatility, risk,and credit conditions still point to the stability of financial conditions. •While our base case is not for a dramatic shift in conditions, the uncertainty associated with tariff policies could lead to pullback in financial conditions in the near-term. Political/Policy Risks: •Geopolitical risks continue to remain elevated. Prospects of peace deal in Middle East and Russia/Ukraine are positives,while reciprocity in global tariffs and strained relationships with major trading partners for the U.S. due to ongoing tariffs cause economic and political uncertainty. Valuations: •U.S. equity experienced increased volatility in Q1, and credit markets widened from historical lows – both still remain expensive relative to history and are susceptible to increased economic uncertainty. •International equities look attractive but continued economic and geopolitical uncertainty is leading to increased volatility. Corporate Fundamentals: •Earnings growth expectations are positive across global equities, but tariff impact need to closely monitored for any impact on profit margins. •In the U.S., any tax cuts/deregulation initiatives are positives while near team headwinds from tariff uncertainty could impact both earnings growth expectations and profit margins negatively. Factors to Consider Over the Next 6-12 Months Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within this material constitute the perspective and judgment of PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc., at the time of distribution (March 31, 2025) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness, or suitability. Stance Unfavorable to Risk Assets Stance Favorable to Risk Assets Current outlook Outlook one quarter ago PositiveSlightly Positive NeutralSlightly Negative Negative For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public.2.8