Historically, the permanent fund's allocation strategy has been defined as a series of percentages stating relative target values of the permanent fund by investment type - essentially a pie chart with slices for stocks, bonds, real estate, infrastructure, etc.
The new strategy defines the pie slices in a qualitatively different way. It's based on how exposed different types of investments are to interest rate changes and to companies' success.
Holding to an asset allocation model forces buying low and selling high. As the value of the investments fluctuate in the market, so do the sizes of pie slices relative to each other. To rebalance the portfolio, fund managers would sell inflated assets and buy deflated assets until the size of the pie slices are aligned with the targets set out in the Board of Trustees' strategy, which it revisits annually.