Reso 2025-166 OPEB & Investments Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended September 30, 2025 Multi-Asset Class Management CommentsOur Q4 2025 Investment OutlookAsset Class •Equity market rally on the back of trade deals led us to maintain neutral positioning through Q3 unwinding defensive stance taken in Q2. •Looking ahead, we remain neutral at a time when easing monetary and fiscal policies and strong corporate earnings are positives while higher inflation, softening labor market, tariff/trade tensions (effective tariff rate currently at ~20%) and elevated valuations lead to some caution. •Small-caps have been rallying recently in anticipation of Fed rate cuts, higher liquidity and improving sentiment, reaching their all time high at the end of Q3. We expect to remain neutral until we see some recovery across employment and manufacturing indicators. U.S. Equities Large-Caps Small-Caps •International equities have posted strong returns this year. Valuations are attractive relative to U.S.equities,but multiples have continued to creep higher this year as earnings growth has not kept the pace. •Across Europe and China, we believe that there are structural/geopolitical issues that need to be addressed for long-term sustained outperformance. •Fed rate cuts, weaker USD, improved sentiment and continued stimulus in China led to strong performance for EM equities but tariff driven uncertainty remains in place. Non-U.S. Equities Developed Markets Emerging Markets •Fed cut rates by 25 bps in September for the first time in 2025 and provided guidance for two more rate cuts this year. •Yield curve has steepened in anticipation of the rate cuts. We expect long term rates to be range-bound due to inflation expectations and fiscal debt concerns. •We remain duration neutral at this time. Absolute yield levels look attractive even as credit spreads are closer to historical lows. We are neutral to credit sectors at this time given the tighter spreads even as corporate fundamentals remain strong. Fixed Income Core Bonds Investment Grade Credit High Yield Credit •REIT performance has been sensitive to the long-term yields and have recently shown recovery in performance. Rate cuts and period of slow but continued growth are expected to be tailwinds. •Improving AI sentiment bodes well for data center buildout and utilities are long-term tailwinds for listed infrastructure. Diversifying Assets Listed Real Estate Listed Global Infrastructure Investment Strategy Overview The view 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 (September 30, 2025) and are subject to change. Current outlook Outlook one quarter ago PositiveSlightly PositiveNeutralSlightly NegativeNegative 2.9 Exhibit A Resolution No. 2025-166 Page 12