Reso 2025-133 OPEB & Pension Trust Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended June 30, 2025 Multi-Asset Class Management ALTERNATIVES • Real estate investment trusts (REITs), as measured by the FTSE NAREIT Equity REITs Index, returned -1.5% in the second quarter, down from the 0.9% return in the prior quarter. Three of the nine major sectors saw positive returns. Private real estate, as measured by the NCREIF Property Index, gained 0.9% in the fourth quarter of 2024, resulting in a 0.6% return for the year. Q4 marked the second quarter of positive total returns in two years as property value declines leveled off across most sectors. Senior Housing was the top performer, returning 2.1%, while Office Properties continued to fare poorly, returning -0.6%. • Listed infrastructure, as measured by the MSCI World Infrastructure Index, performed strongly in the second quarter, growing 5.4%. This compares to a 7.6% return in the prior quarter. In Q1 2025, 13 private infrastructure funds raised $49.7 billion, a strong quarter following a year of subdued fundraising. Most of the capital went to funds larger than $5 billion which seek to capitalize on secular trends around the adoption of artificial intelligence (AI) and decarbonization. Infrastructure dry powder has fallen from the previous year and stands at $394.4 billion as of Q3 2024. According to PitchBook, infrastructure funds posted a return of 1.7% in Q4 2024. The asset class has generated an annualized return of 10.7% for the five years ended Q4 2024. • In Q1 2025, 42 private debt funds raised $68.7 billion. Private debt dry powder remains above the long-term average at $556.7 billion as of Q3 2024; although over 50% has been outstanding for more than two years. According to PitchBook, private debt funds posted a return of -0.2% in Q4 2024. The asset class has generated an annualized return of 8.1% for the five years ended Q4 2024. • In Q1 2025, 131 private equity funds raised $115.5 billion – a slower pace compared to the prior year as constrained distributions hindered fundraising efforts. The bulk of the capital raised went to experienced managers raising capital for funds larger than $1 billion. Global private equity dry powder, which accounts for the bulk of private capital dry powder, remains high at $1.6 trillion as of Q3 2024. Recent private equity performance has been muted due to higher borrowing costs and a slowdown in deal activity. According to PitchBook, private equity funds posted a return of 0.7% in Q4 2024. The asset class has generated an annualized return of 15.8% for the five years ended Q4 2024. Source: NCREIF, PitchBook. As of December 31, 2024, the most recent period for which all index data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2025 as of March 31, 2025 - most recent period for which ALL fundrais- ing data is available. ** Cumulative dry powder and total AUM as of September 30, 2024. *** Excluding open-end, evergreen fund vehicles. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD 0.92%1.73%-0.24%0.66% YTD 0.60%9.67%5.89%8.87% 1 Year 0.60%9.67%5.89%8.87% -2% 0% 2% 4% 6% 8% 10% 12% Closed- End Real Estate*** Infrastruct ure*** Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$19.01 $49.30 $68.71 $115.48 $18.70 Dry Powder ($B)**$390.28 $386.40 $556.68 $1,646.43 $701.16 Total AUM ($B)**$1,325.45 $1,549.50 $1,866.50 $5,974.94 $3,389.30 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $ Billions2.7 Resolution No. 2025-133 Exhibit A Page 10 of 26