Adjusting Strategic Asset Allocation for Risk Management

Jane is managing a well-diversified portfolio comprised of equities, fixed income, and alternative assets. With current market conditions showing increased economic uncertainty, she is revisiting her strategic asset allocation to ensure it aligns with her long-term investment objectives. Initially, her target allocation was 60% equities, 30% fixed income, and 10% alternatives. However, after considering the risk-return profile, as well as correlations between asset classes, Jane is contemplating a shift in her allocations to either optimize for higher returns or reduce potential downside risk.

In her analysis, Jane evaluates the historical performance and standard deviations of these asset classes over varying economic cycles. She also acknowledges that her risk tolerance has moderately changed due to her approaching retirement. In light of this, Jane decides to adjust her target allocations to reflect a more conservative stance that still meets her growth objectives.

Which of the following adjustments to Jane's strategic asset allocation would be most appropriate considering her increased focus on risk management while maintaining a growth strategy?