Understanding Strategic Asset Allocation

Maria is a financial planner who has recently taken on a new client, Tom. Tom has a significant investment portfolio and expresses a desire to achieve a balance between risk and return. As they discuss investment strategies, Maria explains the importance of strategic asset allocation in managing his wealth.

Strategic asset allocation involves establishing a long-term mix of asset classes based on the investor's risk tolerance, investment goals, and time horizon. Maria highlights that this approach is typically reviewed periodically, rather than frequently adjusted to market conditions.

With this information in mind, which of the following statements best captures the essence of strategic asset allocation?