b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 AND 2023NOTE 7CASH, TEMPORARY INVESTMENTS, AND OTHER INVESTMENTS (Continued)Interest Rate Risk (Continued)Highly sensitive investments are certain debt investments whose terms may cause their fair value to be highly sensitive to market interest rate changes.The following are asset-backed investments by investment type:2024 2023Investment Type Fair Value Fair ValueAsset Backed Securities $ 391,479,918 $337,188,760Commercial Mortgage-Backed158,064,104117,156,293Government Agencies Bonds112,415,30890,242,534Government Mortgage Backed Securities898,532,255647,405,731Non-Government Backed Collateralized Mortgage Obligations188,666,700140,882,261$ 1,749,158,285 $ 1,332,875,579 Foreign Currency RiskForeign currency risk is the risk that changes in exchange rates will adversely affect the fair values of deposits or investments.The Systems asset allocation policy sets a target of 18% and 21% of the total portfolio for non-U.S. investments in equities for fiscal years 2024 and 2023 respectively.The majority of the Systems currency exposure comes from its holdings of foreign stocks.In addition, fixed income, real estate,andprivateequitymanagersmayholdnon-U.S.investmentsdependingontheirindividual investment strategies. The Systems foreign investment holdings, including foreign currencies in temporary investments as of June 30, 2024 and 2023 are as follows: 43 60 LAFPP ANNUAL REPORT 2024'