Global Asset Allocation Strategy for High-Net-Worth Client

As a portfolio manager for a global investment firm, you have been tasked with developing a comprehensive asset allocation strategy for a high-net-worth client with a long-term investment horizon. The client is looking to diversify their portfolio internationally to mitigate country-specific risks and capture potential growth opportunities in emerging markets.

The client's current portfolio consists of 60% equities, 30% fixed income, and 10% cash, predominantly invested in their home country. The client has expressed interest in increasing international exposure, particularly in equities and alternative investments such as real estate and private equity.

Considering the current global economic environment, including interest rate trends, geopolitical risks, and varying economic growth forecasts among regions, outline an asset allocation strategy that integrates global diversification. In your response, discuss the rationale for your recommended allocation, the potential benefits and risks, and how you would monitor and adjust the portfolio over time to meet the client's objectives.