Richard Fulford, Executive Vice President and Head of U.S. Retirement: Our approach to glide path development I would say is in the early stages of being adopted by the marketplace. So when we look ahead five, 10 years, I think what we're doing in glide path development will be something you see the broader universe of managers adopt. Really, two things make our glide path design stand out relative to, call it the market average glide path.
The first is that we're seeking to maximize wealth, which everyone does, but importantly, it's not—it's not in an absolute sense. It's relative to what we know a participant needs in terms of retirement income in retirement.
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What's interesting, though, is that that wealth level that you need at retirement is not a fixed number, it moves. As interest rates go up and down, as capital market assumptions, return assumptions change, that wealth number changes over time. And so what's really important, and this is what we do in our glide path, is incorporate that knowledge and understanding into the selection of the assets that we use so that in totality the portfolio tends to track that wealth level that's needed much more closely.
And you’ll find that our glide path is pretty highly diversified, if not one of the most diversified out there, so we'll tend to have greater exposures in risk seeking assets, not just U.S. equities but international equities, emerging market equities, and a broader set of diversifiers including real assets like TIPS, commodities, REITs, and things that we refer to as sort of stealth inflation fighters.
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