Managing the UK Government Bonds Portfolio with a yearly rebalancing, you would have obtained a 4.50% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 4.50%.
How do returns and drawdowns change, implementing different rebalancing strategies?
Rebalancing Strategies
In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Jul 31, 2025
Implementing different rebalancing strategies, the UK Government Bonds Portfolio guaranteed the following returns.
Portfolio returns are calculated in GBP, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Jul 31, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~226Y) |
|||||
| No Rebalancing | -0.39 | (0) | -6.06 | (0) | -0.39 | (0) | 4.50 | (0) | 4.63 | (0) |
| Yearly Rebalancing | -0.39 | (1) | -6.06 | (5) | -0.39 | (10) | 4.50 | (30) | 4.63 | (226) |
| Half Yearly Rebalancing | -0.39 | (2) | -6.06 | (10) | -0.39 | (20) | 4.50 | (60) | 4.63 | (452) |
| Quarterly Rebalancing | -0.39 | (4) | -6.06 | (20) | -0.39 | (40) | 4.50 | (120) | 4.63 | (903) |
| 5% Tolerance per asset | -0.39 | (0) | -6.06 | (0) | -0.39 | (0) | 4.50 | (0) | 4.63 | (0) |
| 10% Tolerance per asset | -0.39 | (0) | -6.06 | (0) | -0.39 | (0) | 4.50 | (0) | 4.63 | (0) |
In order to have complete information about the portfolio, please refer to the UK Government Bonds Portfolio: ETF allocation and returns page.
Performances as of Jul 31, 2025
Historical returns and stats of UK Government Bonds Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 4.63 | (0) | 4.40 | 1.05 | -31.86 | 0.15 |
| Yearly Rebalancing | 4.63 | (226) | 4.40 | 1.05 | -31.86 | 0.15 |
| Half Yearly Rebalancing | 4.63 | (452) | 4.40 | 1.05 | -31.86 | 0.15 |
| Quarterly Rebalancing | 4.63 | (903) | 4.40 | 1.05 | -31.86 | 0.15 |
| 5% Tolerance per asset | 4.63 | (0) | 4.40 | 1.05 | -31.86 | 0.15 |
| 10% Tolerance per asset | 4.63 | (0) | 4.40 | 1.05 | -31.86 | 0.15 |
Drawdowns as of Jul 31, 2025
Historical Drawdowns of UK Government Bonds Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-31.86
Jun 2020 - In progress
|
-31.86
Jun 2020 - In progress
|
-31.86
Jun 2020 - In progress
|
-31.86
Jun 2020 - In progress
|
-31.86
Jun 2020 - In progress
|
-31.86
Jun 2020 - In progress
|
|
-18.07
Mar 1972 - Mar 1975
|
-18.07
Mar 1972 - Mar 1975
|
-18.07
Mar 1972 - Mar 1975
|
-18.07
Mar 1972 - Mar 1975
|
-18.07
Mar 1972 - Mar 1975
|
-18.07
Mar 1972 - Mar 1975
|
|
-12.22
Feb 1994 - Aug 1995
|
-12.22
Feb 1994 - Aug 1995
|
-12.22
Feb 1994 - Aug 1995
|
-12.22
Feb 1994 - Aug 1995
|
-12.22
Feb 1994 - Aug 1995
|
-12.22
Feb 1994 - Aug 1995
|
|
-9.82
Feb 1803 - Nov 1804
|
-9.82
Feb 1803 - Nov 1804
|
-9.82
Feb 1803 - Nov 1804
|
-9.82
Feb 1803 - Nov 1804
|
-9.82
Feb 1803 - Nov 1804
|
-9.82
Feb 1803 - Nov 1804
|
|
-8.97
Sep 1989 - Oct 1990
|
-8.97
Sep 1989 - Oct 1990
|
-8.97
Sep 1989 - Oct 1990
|
-8.97
Sep 1989 - Oct 1990
|
-8.97
Sep 1989 - Oct 1990
|
-8.97
Sep 1989 - Oct 1990
|
| 5 Worst Drawdowns - Average | |||||
| -16.19 | -16.19 | -16.19 | -16.19 | -16.19 | -16.19 |
| 10 Worst Drawdowns - Average | |||||
| -11.91 | -11.91 | -11.91 | -11.91 | -11.91 | -11.91 |
For a deeper insight, please refer to the UK Government Bonds Portfolio: ETF allocation and returns page.
