Asset Allocation


Thanks to a deep understanding of the markets, a consolidated awareness of regulatory principles and a team with more than ten years of experience, Link is able to support its clients with Strategic Asset Allocation (AAS) consistent with their Mission in terms of risk / return, regulatory and cost efficiency profile.

Upstream of the definition of the medium / long term Asset Allocation, in order to define the proper risk / return target, Link carries out the ALM (Asset Liability Management) analysis aimed at estimating the level of capitalization (Funding Ratio) of the Institution, both in the medium and long-term, keeping in mind changes in the specific social security characteristics of the client as well as in demographic, macroeconomic and financial indicators. In support of the AAS process, the Link research team conducts the macroeconomic-financial analysis of the main international financial markets on a daily basis, reporting it in an independent weekly report.

Tactical Asset Allocation (TAA)
The Company, thanks to the continuous monitoring of market dynamics, offers its clients a support in the tactical / dynamic adjustments of the Portfolio (Tactical Asset Allocation, TAA). These are made necessary by the change in the periodic estimates of the risk / return profile of the various asset classes during the short term and in order to maintain the portfolio composition consistent with the risk and performance targets decided during the AAS phase.

The TAA deviations with respect to the AAS approach are, however, carried out within the limits of the oscillation bands both in weight% and in terms of risk budgeting, established in the portfolio setting phase.
In support of Tactical Asset Allocation (TAA), Link provides scenario analysis and stress testing tools to simulate the effects of such deviations on the risk / return profile of the Portfolio in the short / medium term.