b'INVESTMENT STATEMENTThe main goal of the Los Angeles Fire and Police Pension Plans (System, Fund, or Plan) investment program is to manage the Systems assets to be able to provide the retirement benefits promised to the Systems members and their beneficiaries. The Charter of the City of Los Angeles created the System, and it delegates control and management of the System to the Board of Fire and Police Pension Commissioners (Board). Article XI, Section 1106 of the City Charter grants the Board sole and exclusive fiduciary responsibility for administering the System and specifies the Boards powers and duties, which includes the power to adopt any rules, regulations or forms necessary to carry out its administration of the System and the assets under its control.The Board has adopted Investment Policies to assist and guide it in managing the Systems assets. The Investment Policies assist the Board in effectively supervising and monitoring the Systems investments by providing the goals of the investment program, the policies and procedures for the management of the investments, specific asset allocations and minimum diversifica-tion requirements, performance objectives and criteria for investment performance evaluation, and oversight standards for the parties responsible for carrying out the Investment Policies. The Investment Policies are reviewed by the Board at least annually and are revised as needed. The Policies are available at lafpp.lacity.gov/investment-policies.The single most important decision the Board can make in the management of the investment program is the determination of the Systems asset allocation. The allocation of the Systems assets among various asset classes influences both the expected investment return and the amount of investment risk undertaken. The asset allocation employed in 2024-25 was approved by the Board on October 6, 2022, and updated on August 3, 2023. Later, on March 7 and August 15, 2024, new Fixed Income and Real Assets portfolio structures were adopted based on thorough studies of the asset classes. The approved asset allocation is available in Appendix 1 of Section 1.0 of the Investment Policies; it is also illustrated and discussed later in this Section under Asset Allocation Decisions.For the five-year period that ended June 30, 2025, the Systems total assets increased by $10.56 billion to approximately $34.08 billion. For the one-year period that ended June 30, 2025, the Systems total assets increased by $2.73 billion.96 LAFPP ANNUAL REPORT 2025'