Strategic Asset Allocation for Conservative Investor

As a financial advisor, you are tasked with constructing a strategic asset allocation plan for a conservative investor who is primarily focused on preserving capital while achieving modest growth. The investor's risk tolerance is low, and they have a time horizon of 10 years before retirement.

Discuss the key factors you would consider in developing this strategic asset allocation. In your response, include an explanation of the role of asset classes, the importance of diversification, and how strategic asset allocation can be adjusted over time to reflect changing market conditions and the investor's circumstances.