Optimal Asset Allocation for a Sovereign Wealth Fund

As a portfolio manager for a sovereign wealth fund (SWF) located in a resource-rich country, you are reviewing the optimal asset allocation strategy for the fund. Given the current economic climate characterized by declining commodity prices and increasing volatility in global markets, your fund's investment objectives have become even more critical. One important aspect to consider is the liquidity needs of the fund alongside its long-term goals of capital appreciation and risk management.

What is the most appropriate approach for the SWF to adopt in the asset allocation process given these circumstances?