Assessing Implementation Strategies for Asset Allocation

Andrew is a senior portfolio manager at a wealth management firm and is currently reviewing an asset allocation strategy for one of his client portfolios. The portfolio has a moderate risk tolerance and is primarily composed of equities and fixed-income securities. Andrew needs to decide whether to rebalance the portfolio due to recent market movements that have disproportionately affected the asset classes. The current allocation is 70% equities and 30% fixed income, but equities have outperformed and now represent 75% of the total portfolio value.

In light of the portfolio's objectives, Andrew is considering three implementation strategies: selling some equities to rebalance to the target allocation, retaining the current allocation to capture potential further growth in equities, or reallocating a portion of the fixed income to real assets to hedge against inflation. Which implementation strategy should Andrew choose to align with the moderate risk tolerance and objectives of his client?