Glide Path Design , Guiding Principles Key objective is to introduce a framework to guide the de-risking processMain driver should be funded status. As funding status goes up, the upside generally gets more limited and risk should be reducedStart from the end state and fill in a simple path to get there. Seek adequate return for current and end state to help achieve plan objectivesMay consider introducing additional variables that indicate the relative attractiveness of Return-Seeking Assets (RSA) relative to Liability-Hedging Assets (LHA) for more tactical allocationsTry to keep it simple EXAMPLE STRUCTURE Funded Status LHA Allocation 70% 35% 80% 50% 90% 65% 100% 80% The ability of an actual portfolio to deliver the required cash flows is not guaranteed and is subject to a variety of factors including, but not limited to, the availability of bonds, active management and trading, transaction costs, default risk, reinvestment risk, rebalancing risk and liquidity risk. Any investment that has the possibility for profits also has the possibility of losses. This is for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein reflect subjective judgments and assumptions of the author and do not necessarily reflect the views of Loomis, Sayles & Company, L. P. Investment recommendations may be inconsistent with these opinions. There can be no assurance that developments will transpire as forecasted. Examples and analysis are provided for illustrative purposes only and do not represent actual accounts. Accuracy of data is not guaranteed but represents our best judgment and can be derived from a variety of sources. Opinions are subject to change at any time without notice.