Mercy Investment Services will take all actions necessary, consistent with the requirement to act prudently, to rebalance assets of the Sponsored Ministry Funds and the Asset Class Pools to come within the targeted ranges in a timely and cost-effective manner when actual weights are outside the prescribed ranges. In addition, from time to time, Mercy Investment Services may choose to rebalance the funds to the stated targets, even if the actual allocation is within the stated ranges. Finally, the Investment Committee will provide recommendations related to tactical over- or under-weightings within the prescribed ranges to Mercy Investment Services for implementation.

Due to market movements, cash flows, and varying portfolio performance, there will be periodic deviations in actual asset weights from the policy asset weights. As significant movements from the asset class policy weights will alter the intended expected return and risk of the funds, the Chief Investment Officer will monitor the actual asset allocation relative to established targets and ranges.