b'The Fund also terminated the following contract:Boston Common Asset Management, LLC, an active international equity managerThe Systems assets are managed by both active and passive investment managers. The active managers are hired to outperform a market index. The passive managers are hired to match the performance of certain investment indices. These indices include the domestic public equity S&P 500 and 600 indices, the Russell 1000 Growth index, the international public equity MSCI EAFE index, the fixed income Bloomberg U.S. Aggregate index (liquidated as of the end of the fiscal year), the Bloomberg U.S. Treasury TIPS 1-5 Years index, and the real estate public equity FTSE EPRA/NAREIT Developed index. A list of the Systems managers is provided at the end of this section.EMERGING MANAGER PROGRAMLAFPPs Emerging Manager Program was establishedThe current program includes two direct fixed income to expand access for investment managers who haveand five direct domestic equity emerging managers. traditionally been overlooked by institutional investorsThe System also has a Specialized Manager Program duetotheirsmallersizeorshorterhistoryininsti- as part of the private equity allocation. This program tutionalinvesting.TheBoardscommitmenttothewas established in 2007 and is focused on attracting Emerging Manager Program is founded on the thesisprivate equity funds that are first, second, or third-that newer and/or smaller firms have the potential totime funds and have a fund size of approximately $500 produce competitive investment returns for the Plan.million or less for a first-time commitment and up to Overtheyears,LAFPPhasextendeditsoutreach$1billionforfuturecommitments.Additionally,the criteria to include firms owned by minorities, women,programincludesminority,woman,LGBTQ,persons persons with disabilities, U.S. military veterans, and/orwithdisabilities,orU.S.militaryveteranownership, Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ)investments in underserved areas, or investments in individuals. The Emerging Manager Program seeks toCalifornia or Los Angeles. Since 2007, several managers remove barriers to the hiring of successful smaller andhave graduated from the Specialized Manager Program less established firms. to the Core Private Equity portfolio. Future Standard, the Boards private equity consultant, is tasked with The System has had an Emerging Manager Programmanaging this program.since 1987. LM Capital Group, LLC (an opportunistic fixed income manager first hired in 1997) is an example of a former emerging manager that is now one of our core managers. LM graduated long ago from emerg-ing manager status and continues to manage money for the System.102 LAFPP ANNUAL REPORT 2025'