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 DOMESTIC EQUITY • The S&P 500 Index (S&P) posted a 10.9% return for the second quarter of 2025, recovering from a steep drop at the start of the quarter as markets reacted to the tariff announcements. • Within the S&P 500, performance was mixed across the 11 GICS sectors. Only three sectors saw declines in the quarter: Energy (-8.6%), Healthcare (-7.2%) and Real Estate (-0.1%). The best performing sectors were Information Technology (23.7%), Communication Services (18.5%), and Industrials (12.9%). • Positive returns were seen across all capitalizations with large caps, as represented by the Russell 1000 Index, returning 11.1% during the quarter while mid and small caps, as represented by the Russell Midcap and Russell 2000 indices both returned approximately 8.5%. • According to FactSet Earnings Insight (as of June 27, 2025), analysts are projecting moderate earnings growth of 5.0% for Q2 2025, and for calendar year 2025, analysts are projecting year-over-year earnings growth of 9.1%. If the projected earnings growth for Q2 is correct, this will mark the lowest earnings growth since Q4 2023. • As of the end of the quarter, the forward 12-month adjusted positive price-to- earnings (P/E) ratio (includes only positive earnings results for consistency) for the S&P 500 is 25.7, which is above the 5-year average of 23.3. The Russell 2000, which represents small cap stocks, had an adjusted positive forward P/E ratio of 19.6, also above its 5-year average of 17.7. Source: Bloomberg. S&P 500 Index Performance by Sector Periods Ended June 30, 2025 Source: Bloomberg. *P/E ratios are calculated based on one-year forward estimates and adjusted to include only posi- tive earnings results for consistency. P/E Ratios of Major Stock Indices* Consumer Disc. Consumer Staples Energy Financials H'lthcare Industrials Info. Tech Materials Real Estate Telecom Utilities QTD 11.52%1.11% -8.56% 5.51% -7.18%12.94% 23.71%3.13% -0.06%18.49%4.26% YTD -3.87% 6.40% 0.77% 9.19% -1.11%12.72%8.05% 6.03% 3.52%11.14%9.41% 1 Year 18.40% 12.16%-3.96%29.35%-5.90%22.71% 15.10%1.86%11.66% 23.02% 23.40% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 0 5 10 15 20 25 30 10 15 20 25 30 35 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Russell 2000S&P 500S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average 2.4 Resolution No. 2025-133 Exhibit A Page 7 of 26