John is a financial advisor working with a client who has a moderate risk tolerance and a long-term investment horizon. The client has a diversified portfolio that includes a mix of equity and fixed income securities. After reviewing the current market conditions, John believes that a slight reallocation of the assets could be beneficial for enhancing the potential for returns without significantly increasing risk exposure.
John is considering three different asset allocation strategies to implement this change. He wants to ensure that the chosen strategy aligns with the client’s objectives and risk profile. Which of the following strategies should John implement to achieve effective asset allocation?