b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 7CASH, TEMPORARY INVESTMENTS, AND OTHER INVESTMENTS (Continued)Investment PolicyThe Board is responsible for adopting an investment policy using the prudent person standard per Article XI, Section 1106 (c) of the City Charter.Investments are made with care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims. The Boards adopted allocation policy effective during fiscal years 2024 and 2023 were as follow: Asset Class 2024 2023Large Cap U.S. Equity 23.00% 23.00%Small Cap U.S. Equity 6.00% 6.00%Developed International Equity 18.00% 16.00%Emerging Markets Equity 0.00% 5.00%Private Equity 15.00% 14.00%U.S. Core Fixed Income 10.78% 9.90%Treasury Inflation Protected Securities (TIPS) 3.52% 4.40%High Yield Bonds 2.20% 2.75%Unconstrained Fixed Income 2.20% 2.20%Global Credit 3.30% 2.75%Private Credit 3.00% 2.00%Real Estate 7.00% 7.00%Real Estate Investment Trusts (REITS) 3.00% 3.00%Commodities 2.00% 1.00%Cash 1.00% 1.00%Total Portfolio 100.00% 100.00% Credit RiskCredit risk is the risk that an issuer or a counterparty to an investment will not fulfill its obligations.The System seeks to maintain a diversified portfolio of fixed income securities in order to obtain the highest total return at an acceptable level of risk within this asset class. 39 56 LAFPP ANNUAL REPORT 2024'