Investment Strategy for Insurance Companies

XYZ Insurance Company, a mid-sized property and casualty insurer, is in the process of reassessing its asset allocation strategy to better align with its long-term liability profile. The company has seen significant changes in the regulatory landscape and was recently required to increase its reserves for future claims. The Chief Financial Officer (CFO) is particularly concerned about duration matching to ensure investments can cover expected liabilities while taking into account the low-interest rate environment. The CFO has called for a more aggressive investment approach, suggesting an increase in equities and alternative investments to enhance returns.

Considering this new strategy, which of the following investment approaches would best address the CFO's concerns regarding both duration matching and the potential for achieving higher returns?