Jamie, a 45-year-old individual, seeks to create a strategic asset allocation plan that will optimize her long-term portfolio growth while managing risk. She currently holds a diversified portfolio consisting of 60% equities, 30% fixed income, and 10% alternative investments. Jamie has a moderate risk tolerance, a long-term investment horizon of 20 years, and she prioritizes capital preservation but also wishes to achieve returns that outpace inflation over her investing period.
Jamie is considering three different strategic asset allocation frameworks to adopt going forward. The first framework allows for a static allocation base, which is rebalanced annually to reflect the original weights regardless of market movements. The second framework introduces tactical tilts, allowing for temporary adjustments to the investment weights based on market conditions and economic outlook, while still maintaining a core strategic allocation. The last framework is a dynamic allocation, which changes the investment weights automatically in response to changing market dynamics and economic indicators.
Given Jamie's long-term horizon, moderate risk tolerance, and desire for a balance of growth and preservation, which strategic asset allocation framework would be most appropriate for her objectives?