5. A defined benefit plan has a strategic (i.e., target) asset allocation of 60% equity and 40% debt. This means that the pension should be weighted 60% in equities and 40% in debt instruments. During a certain year, interest rates increase by 300 basis points (3%), impacting the debt portion of the portfolio. The equity portion of the portfolio increases by 4%. Discuss the impact of these changes on the defined benefit pension plan and its asset allocation. Considering the pension funds strategic asset allocation, what actions should the portfolio manager take, if any.