Execution Strategies for Portfolio Rebalancing

ABC Wealth Management is tasked with executing a large portfolio rebalancing for a high-net-worth client whose investment objectives have shifted from aggressive growth to capital preservation. The portfolio, which includes a diversified mix of equities, fixed income, and alternative investments, has assets totaling $10 million. Due to market volatility, the firm's clients are concerned about liquidity and the impact of trading costs associated with executing such a significant portfolio adjustment.

As the portfolio manager, describe the execution strategies you would employ to rebalance the portfolio while minimizing market impact and trading costs. Discuss the advantages and disadvantages of each strategy, and provide recommendations for the best approach in this specific context, considering current market conditions and the client’s risk tolerance.