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 DOMESTIC EQUITY • The S&P 500 Index (S&P) posted a 2.7% return in the fourth quarter (of 2025). That equates to a return of 17.9% for the year. • Within the S&P 500, the performance varied greatly across sectors, with nine of the 11 seeing positive returns. The best performing sectors were Healthcare (11.7%), Communication Services (7.3%), and Financials (2.0%). Utilities saw a loss of (-1.4%) while Real Estate performed the worst, with a negative return (-2.9%). • Positive returns were seen across all capitalizations with large caps, as represented by the Russell 1000 Index, returning 2.4% during the quarter while mid and small caps, as represented by the Russell Midcap and Russell 2000 indices returned 0.2% and 2.2% respectively. Value stocks outperformed growth stocks across all capitalizations. • According to FactSet Earnings Insight as of December 22, 2025, analysts are projecting earnings growth of 8.3% in Q4 2025, up from an initial estimate of 7.2% in September. This is below the five- and 10-year average earnings growth rates, but remains relatively strong, and would mark the tenth consecutive quarter of year-over-year earnings growth for the index. The index has once again been supported by the technology space. For calendar year 2025, analysts are projecting year-over-year earnings growth of 12.3%. • At quarter end, the 12-month adjusted positive forward price-to-earnings (P/E) ratio (includes only positive earnings results for consistency) for the S&P 500 is 27.5, which is above the five year average of 23.3. The Russell 2000 Index, which represents small cap stocks, had an adjusted positive forward P/E ratio of 21.4, also above its five year average of 17.7. Source: Bloomberg. S&P 500 Index Performance by Sector Periods Ended December 31, 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 0.71% 0.01% 1.53% 2.01% 11.68% 0.86% 1.42% 1.12% -2.87% 7.26% -1.40% YTD 6.04% 3.90% 8.68% 14.97% 14.60% 19.27% 24.04% 10.54% 3.15% 33.56% 16.04% 1 Year 6.04% 3.90% 8.68% 14.97% 14.60% 19.27% 24.04% 10.54% 3.15% 33.56% 16.04% -5% 0% 5% 10% 15% 20% 25% 30% 35% 0 5 10 15 20 25 30 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 S&P 500 S&P 500 5-Year Average Russell 2000 Russell 2000 5-Year Average 2.4 Exhibit A Resolution No. 2026-061