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 INTERNATIONAL EQUITY • Markets outside of the United States, as measured by the MSCI ACWI ex-U.S. Index, outperformed domestic equities in the fourth quarter returning 5.1% for the quarter, with a year-to-date return of 32.4%, its highest return since 2009. • Seven of the 11 sectors posted positive returns for the quarter. The top performing sectors were Information Technology (11.0%), Materials (9.3%), and Utilities (7.9%). The worst performers for the quarter were Real Estate (-0.5%), Consumer Discretionary (-2.5%), and Communication Services (-6.9%). • Developed ex-U.S. markets, as represented by the MSCI EAFE Index, outperformed emerging markets (EM), as represented by the MSCI Emerging Market Index, returning 4.9% versus 4.7% for the quarter. While the U.S. Dollar (USD) strengthened somewhat during the quarter, the continued softness positively impacted returns from all international indices, as they are stated in USD. • Of the five largest-weighted countries in the MSCI EAFE Index, the MSCI Switzerland (9.8%) and MSCI United Kingdom (7.0%) indices outperformed the overall EAFE index. The MSCI France (3.4%), MSCI Japan (3.2%), and MSCI Germany (2.6%) indices underperformed. • Of the five largest-weighted countries in EM, MSCI Korea (27.3%), MSCI Taiwan (10.4%), and MSCI Brazil (8.3%) outperformed the MSCI Emerging Markets index, while MSCI India (4.8%) performed in line and MSCI China (-7.4%) underperformed with notable negative returns. Both Korea and Taiwan continued their streak of double-digit returns supported by semiconductor names positively impacted by the artificial intelligence (AI) theme. • Value stocks outperformed growth stocks for the quarter as represented by the broad benchmarks. The MSCI AC World ex-USA Growth Index returned 2.6%, while the MSCI AC World ex-USA Value Index returned 7.6%. Within EM, value stocks (MSCI EM Value) returned 5.8% versus 3.1% for growth. Small caps, as represented by the MSCI ACWI ex-U.S. Small Cap Index posted a return of 3.0%. • Non-U.S. equity valuations increased in both emerging and developed markets. Both sit slightly above long-term averages. As of quarter-end, the MSCI EAFE’s Adjusted Positive Forward P/E stood at 17.8 versus a five year average of 15.6. MSCI EM ended the quarter with an Adjusted Positive Forward P/E ratio of 15.5, above its five year average of 13.2. Source: Bloomberg. MSCI ACWI ex-U.S. Sectors 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 MSCI Equity Indices* Consumer Disc. Consumer Staples Energy Financials Healthcare Industrials Info Tech Materials Real Estate Telecom Utilities QTD -2.50%2.80% 4.87% 7.73% 7.45% 3.27%11.04%9.34%-0.53% -6.88%7.89% YTD 15.52% 16.96% 22.68% 43.81% 16.16% 34.79% 40.58% 45.52% 18.04% 31.54% 36.51% 1 Year 15.52% 16.96% 22.68% 43.81% 16.16% 34.79% 40.58% 45.52% 18.04% 31.54% 36.51% -10% 0% 10% 20% 30% 40% 50% 8 10 12 14 16 18 20 22 24 26 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 MSCI EAFE MSCI EAFE 5-Year Average MSCI Emerging Markets MSCI Emerging Markets 5-Year Average 2.5 Exhibit A Resolution No. 2026-061