b'LETTER OF TRANSMITTALTO THE BOARD OFFIRE AND POLICE PENSIONCOMMISSIONERSJune 30, 2024This year marks the 125th anniversary of Los Angeles Fire and Police Pensions (LAFPP) - a milestone that reflects over a century of dedica-tion to the financial security of our members. As stewards of this insti-tution, it is important to recognize the significance of this anniversary and the legacy it represents.The roots of pension plans in the United States date back to the late 19thcentury.In1875,theAmericanExpressCompanyestablished the first private pension plan, followed by public pension systems like LAFPP. These plans emerged as a response to a critical need: to provide financial stability for employees who dedicated their working yearstobuildingorganizations,industries,andcommunities,but often faced uncertainty in retirement. werecreatedtoensurethatPublicpensionplans,inparticular, government employees - teachers, police officers, firefighters, and other public servants - could retire with dignity and security. TheseThis growth plansnotonlyrecognizedtheinvaluablecontributionsoftheseworkers but also established a framework for shared responsibility,reflects prudent where employers and employees together invest in a secure future. management and For 125 years, our plan has embodied this purpose, evolving to meeteffective investment the challenges of changing economic landscapes while remainingstrategies employed steadfast in its mission. This year, we honor those who laid the founda- by the Board.tion for this plan, those who have entrusted us with its stewardship, and those who will carry its promise into the future.FINANCIAL PERFORMANCE AND FUND STABILITYThePlanexperiencedcontinuedstrongfinancialperformance in FY 2023-24, with an investment return of 9.94%, contributing to the overall growth of our assets. Since 2014, the Plans assets have grown significantly, from $18 billion to $31 billion. This growth reflects prudent management and effective investment strategies employed by the Board.SECTION 1 Introduction 5'