Reso 2025-166 OPEB & Investments Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2025 Multi-Asset Class Management ALTERNATIVES • Real estate investment trusts (REITs), as measured by the MSCI U.S. REITs Index, returned 4.8% in the third quarter (a reversal from negative returns in the second quarter) leading to a YTD return of 4.7%. Private real estate, as measured by the NCREIF Property Index, gained 1.27% in the first quarter of 2025. Q1 2025 marked the second quarter of positive total returns in two years as property value declines leveled off across most sectors. The Seniors Housing category was the top performer, returning 1.9%, while Hotels returned a marginally positive 0.5%. • Listed infrastructure, as measured by the MSCI World Core Infrastructure Index, returned 1.8% in the third quarter, down from a 5.4% return in the prior quarter. By the end of Q2 2025, 39 private infrastructure funds raised $104.0 billion, maintaining the brisk pace of Q1. Most of the capital went to funds larger than $5 billion which seek to capitalize on rising AI demand. Infrastructure dry powder has fallen from the previous year and stands at $377.8 billion as of the end of 2024. According to PitchBook, infrastructure funds posted a return of 0.2% in Q1 2025. The asset class has generated an annualized return of 11.1% for the five years ended Q1 2025. • By the end of Q2 2025, 82 private debt funds raised $114.2 billion, with fundraising now on pace for another strong year by historical standards. Private debt dry powder remains above the long-term average at $542.7 billion as of the end of 2024; although over 50% has been outstanding for more than two years. According to PitchBook, private debt funds posted a return of 2.14% in Q1 2025. The asset class has generated an annualized return of 10.37% for the five years ended Q1 2025. • As of Q2 2025, 252 private equity funds raised $212.5 billion – continuing the slower pace compared to the historical norms as constrained distributions hindered fundraising efforts. The bulk of the capital raised continues to flow 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 $1.6 trillion as of the end of 2024. Recent private equity performance continues to feel the effects of higher borrowing costs and a slowdown in deal activity. According to PitchBook, private equity funds posted a return of 0.3% in Q1 2025. The asset class has generated an annualized return of 18.29% for the five years ended Q1 2025. Source: NCREIF, PitchBook. As of March 31, 2025, the most recent period for which all index data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2025 as of June 30, 2025 - most recent period for which ALL fundrais- ing data is available. ** Cumulative dry powder and total AUM as of December 31, 2024. *** Excluding open-end, evergreen fund vehicles. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD 1.27%0.17%2.14%0.28% YTD 1.27%0.17%2.14%0.28% 1 Year 2.80%6.42%10.37%8.36% 0% 2% 4% 6% 8% 10% 12% Closed- End Real Estate Infrastruc ture Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$55.57 $103.98 $114.18 $212.51 $50.38 Dry Powder ($B)**$362.80 $377.75 $542.71 $1,558.75 $632.79 Total AUM ($B)**$1,298.73 $1,541.08 $1,853.32 $5,906.84 $3,290.58 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $ Billions2.7 Exhibit A Resolution No. 2025-166 Page 10