b'EMERGING AND DIVERSEMANAGER PROGRAMLAFPPs Emerging and Diverse Manager Program began with the goal of providing access to invest-ment managers who may historically or traditionally not have had access to institutional investors due to their size and/or years of institutional investing experience as a firm. The Board believes that newer and/or smaller firms have the potential to produce competitive investment returns for the Plan. Over the years, LAFPP has extended its outreach criteria to include firms owned by minorities, women, persons with disabilities, U.S. military veterans, and/or Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ) individuals. The Emerging Manager Program seeks to remove barriers to the hiring of successful small-er and less established firms. The System has had an Emerging Manager Program since 1987. LM Capital Group, LLC (an opportunis-tic fixed income manager first hired in 1997) is an example of a former emerging manager that is now one of our core managers. LM graduated long ago from emerging manager status and continues to manage money for the System. The current program includes two direct fixed income emerging managers, and five direct domestic equity emerging managers. The System also has a Specialized Manager Program as part of the private equity allocation. This program was established in 2007 and is focused on attracting private equity funds that are first, second, or third-time funds and have a fund size of approximately $500 million or less for a first-time commitment and up to $1 billion for future commitments. Additionally, the focus is on funds that include minority, woman, LGBTQ, persons with disabilities, or U.S. military veteran owner-ship, investments in underserved areas, or investments in California or Los Angeles. Since 2007, several managers have graduated from the Specialized Manager Program to the Core Private Equity portfolio. Portfolio Advisors is tasked with managing this successful program. SECTION 4 Investments 103'