Reso 2026-070 2026 Q1 OPEB Trust and Pension Trust Investment Report

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QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2026 Multi-Asset Class Management Inflation (U.S.): •The inflation outlook depends on the duration of the Middle East conflict and degree to which higher energy and commodity costs raise core goods and services prices. •Near-term inflation expectations have increased due to the higher energy prices while long-run expectations remain anchored. Economic Growth (Global): •Stable consumer and business spending support growth, offsetting the weakness seen from the U.S. government shutdown in Q4 GDP. •Risks to global growth prospects have increased amid the escalating conflict due to higher energy prices, supply-chain disruptions, and increased uncertainty. Monetary Policy (Global): •The Fed held rates steady in Q1 amid persistent inflation pressures and limited net job creation. •The “dot plot” projects 25 bps of rate cuts in both 2026 and 2027; however, this is predicated on inflation progress. •Global central banks remained on pause in Q1,but energy inflation pressures may necessitate hikes. Labor Markets (U.S.): •Labor market conditions continued to cool with net new job creation close to zero. •The Fed has framed the combination of limited job growth and a stable unemployment rate as an uncomfortable balance. •Initial jobless claims and layoff rates remain low, consistent with a continued “low-hire/low-fire” environment. Consumer Spending (U.S.): •Wage growth continues to exceed inflation, but this gap has narrowed. Energy shocks may compress real incomes and reduce discretionary spending. •Lower-income cohorts remained more exposed to higher energy prices as a larger share of household budgets are allocated to essentials. •Higher-income cohorts benefit from strong equity markets and home prices. Financial Conditions (U.S.): •The conflict in the Middle East has tightened financial conditions. The duration of the conflict and its impact on the economy will be a key driver of corporate fundamentals. •Geopolitical conflict, higher energy prices, and the evolution of the economy are key risks to watch. At this time,we view volatility in private credit as contained and not a systemic risk. Political/Policy Risks: •Conflict with Iran and the ongoing geopolitical uncertainty are impacting risk assets negatively. We expect geopolitical uncertainty to remain elevated in the near-term. •Tariff-related uncertainty and upcoming mid-term elections in the U.S. also warrant attention. Valuations: •Recent sell-off has led to improvement in valuations across U.S. equities and credit markets. •Resilient growth, strong earnings growth and profit margins are supportive of the current valuations. •Any prolonged disruption to energy or elevated geopolitical uncertainty warrant caution. Corporate Fundamentals: •Earnings growth expectations are positive across global equities with double digit growth expected across U.S. and international equity benchmarks. •In the U.S., M&A and capital spending pickup, tax changes and rate cuts are positives while any energy and commodity related cost pressure impact needs to be monitored. Factors to Consider Over the Next 6-12 Months Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views 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 (March 31, 2026) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness, or suitability. Stance Unfavorable to Risk Assets Stance Favorable to Risk Assets Current outlook Outlook one quarter ago PositiveSlightly PositiveNeutralSlightly NegativeNegative 2.8 Exhibit A Resolution No. 2026-070 Page 11