b'For the five-year period that ended June 30, 2024, the Systems total assets increased by $8.08 billion to approximately $31.35 billion. For the one-year period that ended June 30, 2024, the Systems total assets increased by $1.96 billion.Market Value Growth of System Assets 1(in billions)$35$30.72 $31.35$30 $29.39$28.00$25 $23.27 $23.52$22.33$20.64$20 $18.72 $18.53$15$10$5$014-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-241 Based on the most recent final valuations of each fiscal year and supersedes earlier annualreport exhibits.INVESTMENT ENVIRONMENT Over the one-year period ending June 30, 2024, global financial markets experienced a high degree of volatility driven by evolving economic indicators, monetary policy shifts, and geopolitical events.In the United States, equity markets ultimately delivered strong returns despite the volatility. The third quarter of 2023 saw a reversal into negative territory due to rising inflation, a U.S. debt rating downgrade, labor disputes, and government funding uncertainties. Investors grappled with the prospect of higher forlongerinterestrates,leadingtoincreaseduncertaintyabouttheeconomicenvironmentand negative equity returns.However, in the fourth quarter, markets rebounded sharply. The Russell 3000 Index returned 12.1%, driven largely by a few mega-cap growth companies known as the Magnificent 7. Advancements in artificial intelligence (AI) contributed to positive sentiment, benefiting companies directly involved in AI development, particularly the Magnificent 7.SECTION 4 Investments 97'