Strategic Asset Allocation for Long-Term Investment

John is a portfolio manager at XYZ Asset Management, focusing on strategic asset allocation for a high-net-worth client. The client has a long-term investment horizon and wishes to navigate through economic cycles while maintaining a level of risk aligned with their risk tolerance. John is contemplating an allocation strategy that emphasizes a diversified mix of equities, fixed income, and alternative investments.

Given the client’s profile, which of the following strategic asset allocation approaches would be most appropriate for optimizing the client’s risk-return profile over the long term?