Reso 2026-061 2025 Q4 OPEB Trust & Pension Trust Investment Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended December 31, 2025 Multi-Asset Class Management ALTERNATIVES • Real estate investment trusts (REITs), as measured by the MSCI U.S. REITs Index, returned -1.7% in the fourth quarter leading to a year-to-date return of 3.0%. Private real estate, as measured by the NCREIF Property Index, gained 1.2% in the second quarter of 2025, marking the third consecutive quarter of positive total returns as property value declines leveled off across most sectors. The “Other” category, which includes a wide variety of non-categorized property types including data centers was the top performer, returning 2.3%, while Hotels returned a marginally positive 0.1%. • Listed infrastructure, as measured by the MSCI World Core Infrastructure Index, returned 0.3% in the fourth quarter, down from a 4.9% return in the prior quarter. According to PitchBook, Private infrastructure funds posted a return of -1.4% in Q2 2025. Over the longer term, they generated an annualized return of 9.9% for the five years ended Q2 2025. By the end of Q3 2025, 57 private infrastructure funds raised $123.9 billion, beating the funds raised during all of 2024 with one quarter remaining. 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 $383.5 billion as of March 31, 2025. • By the end of Q3 2025,125 private debt funds raised $155.0 billion, with fundraising now on pace for another strong year by historical standards. Private debt dry powder remains above the long-term average at $598.8 billion as of March 31, 2025. According to Cliffwater, the performance of private debt funds continues to be strong but is softening, posting a return of 2.3% in Q2 2025. The asset class has generated an annualized return of 11.1% for the five years ended Q2 2025. • As of Q3 2025, 411 private equity funds raised $319.8 billion –as the slower pace of fundraising continues due to constrained distributions hindering 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 $1.8 trillion as of March 31, 2025. Exit tailwinds of lower borrowing costs and greater market clarity should aid fundraising efforts into 2026. PitchBook, private equity funds posted a return of -1.7% in Q2 2025. The asset class has generated an annualized return of 17.6% for the five years ended Q2 2025. Source: NCREIF, PitchBook, Cliffwater, Cambridge Associate. As of June 30, 2025, the most recent period for which all index data is available. Returns for Private Capital Assets Sources: Pitchbook. * Total capital raised in 2025 as of September 30, 2025 - most recent period for which ALL fundraising data is available. ** Cumulative dry powder and total AUM as of March 31, 2025. *** Excluding open-end, evergreen fund vehicles. Private Capital Fundraising & Dry Powder Private Real Estate Infrastructure Private Debt Private Equity QTD 1.22%-1.42%2.34%-1.70% YTD 2.51%1.47%4.53%0.26% 1 Year 4.30%4.10%-1.07%4.25% -3% -2% -1% 0% 1% 2% 3% 4% 5% Closed- End Real Estate Infrastruct ure Private Debt Private Equity Venture Capital YTD Fundraising ($B)*$74.48 $123.87 $154.99 $319.84 $82.57 Dry Powder ($B)**$412.33 $383.51 $598.77 $1,754.25 $699.67 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $ B i l l i o n s 2.7 Exhibit A Resolution No. 2026-061