Mercy Investment Services has established two types of investment funds—Mercy Funds and Sponsored Ministry Funds. The Mercy Funds and the Sponsored Ministry Funds will each invest specified percentages of their assets in certain of the Asset Class Pools, which will purchase and hold portfolio securities in accordance with each Asset Class Pool’s investment guidelines. The primary difference between Mercy Funds and Sponsored Ministry Funds is that certain Mercy Funds allocate a percentage of their assets to the Alternative Assets Pool, which is described in further detail in the Information Memorandum.

A diagram of the program structure is provided below:

Each Mercy Fund and each Sponsored Ministry Fund (with the exception of the 100% Cash Fund) will be diversified among various Asset Class Pools to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the total amount invested by each Investor Participant. Although the Investment Committee and the Chief Investment Officer will select the Investment Advisers for each Asset Class Pool, the choice of the amount to be invested in a particular Sponsored Ministry Fund is the sole responsibility of the Sponsored Ministry.

The Asset Class Pools serve as the underlying investment funds for the Mercy Funds and the Sponsored Ministry Funds. Six Asset Class Pools, including the Mercy Partnership Fund, will be initially established, with the possibility that additional pools, which would provide further diversification, may be added in future years. Specific financial objectives, risk and return expectations, benchmarks, diversification guidelines, and restrictions for the Asset Class Pools are provided in the Information Memorandum. The Investment Committee may change any of these guidelines in its discretion, and will provide prompt notice to Investor Participants of material changes to the investment guidelines.

Each Asset Class Pool is comprised of several underlying investment management accounts (with the exception of the Mercy Partnership Fund). The Chief Investment Officer will provide each Investment Adviser with a set of mutually agreed-upon guidelines that will incorporate any restrictions of the social responsibility policy. Subject to such guidelines, the Investment Advisers will have complete discretion over the investment of funds in the accounts they manage.