Strategic Asset Allocation and Income Stability

During a recent review, a portfolio manager is assessing the long-term strategic asset allocation (SAA) of a diversified investment fund. The fund's objective is to maximize returns while minimizing risk, based on the demographics and risk tolerance of its investors, who primarily consist of retirees seeking stable income. The manager notes that the current allocation is 60% equities, 30% bonds, and 10% alternative investments (such as real estate and commodities).

The manager is considering a reallocation strategy based on the changes in market conditions and economic outlook. Given these considerations, which of the following actions would best align with the principles of strategic asset allocation to meet the fund's objective?