Geopolitical Risk Management for Sovereign Wealth Funds

As an investment strategist for a large sovereign wealth fund (SWF), you are tasked with considering the impact of geopolitical risk on your portfolio. One of your key concerns revolves around investments in emerging markets, which offer substantial potential returns but also come with heightened volatility due to political instability and economic uncertainties. Given the fund's mandate to ensure both growth and stability over the long term, how should the portfolio be adjusted in response to these risks?

After extensive research and discussions with regional experts, you identify three potential strategies to mitigate geopolitical risks while maintaining exposure to emerging markets. You must evaluate which strategy provides the most prudent approach to securing the fund's long-term objectives.