The "IPS" (Investment Policy Statement) for a qualified retirement plan under ERISA states the asset allocations permitted in the plan. The IPS requires that 50% of assets be placed in stocks; and 50% of assets be placed in fixed income securities. The allocation percentage is allowed to vary by up to 10%, giving the manager the ability to time the market to enhance returns. The investment manager expects a bull market in equities and increases the equities allocation to 65% and reduces the fixed income allocation to 35%. The equities market rallies and the overall portfolio increases by 18% for the year. At the end of the year, the manager rebalances, bringing the portfolio allocation back to 50/50. The investment manager:.