b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 5NET PENSION LIABILITY (Continued)Investment Return Rate (Continued)Target Allocation Long Term Expected RealPercentage Rate of ReturnAsset Class 2024 2023 2024 2023Large Cap U.S. Equity 23.00% 23.00% 6.00% 6.00%Small Cap U.S. Equity 6.00% 6.00% 6.65% 6.65%Developed International Equity 16.00% 16.00% 7.01% 7.01%Emerging Markets Equity 5.00% 5.00% 8.80% 8.80%U.S. Core Fixed Income 9.90% 9.90% 1.97% 1.97%High Yield Bonds 2.75% 2.75% 4.63% 4.63%Global Credit 2.75% 2.75% 0.89% 0.89%Real Estate 7.00% 7.00% 3.86% 3.86%Treasury Inflation Protected Securities (TIPS) 4.40% 4.40% 1.77% 1.77%Commodities 1.00% 1.00% 4.21% 4.21%Cash 1.00% 1.00% 0.63% 0.63%Private Credit 2.00% 2.00% 6.48% 6.48%Unconstrained Fixed Income 2.20% 2.20% 2.50% 2.50%Private Equity 14.00% 14.00% 9.84% 9.84%Real Estate Investment Trusts (REITS) 3.00% 3.00% 5.25% 5.25%Total Portfolio 100.00% 100.00% 5.80% 5.80% Discount RateThe discount rate used to measure the TPL was 7.00% as of June 30, 2024 and June 30, 2023. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rates for each tier and that employer contributions will be made at rates equal to the actuarially determined contribution rates for each tier. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the Pension Plans fiduciary net position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on Pension Plan investments was applied to all periods of projected benefit payments to determine the TPL as of June 30, 2024 and 2023. 29 46 LAFPP ANNUAL REPORT 2024'