Monitoring Underperformance: Portfolio Management Considerations

John, a CFA charterholder and portfolio manager at a wealth management firm, is reviewing the performance of several client portfolios for the year. He observes that one portfolio has consistently underperformed its benchmark over the last three quarters, despite having a strategic allocation aligned with the client’s risk profile. John is considering whether to make changes to the portfolio's allocations or hold steady until the next scheduled review.

In monitoring the performance, John has also been alerted to significant changes in market conditions, including increased volatility and shifts in asset correlations. He understands that maintaining an appropriate risk-return profile is essential for long-term investment success.

What should be John's primary consideration before deciding to rebalance or alter the current investment strategy in the underperforming portfolio?