All Country World 20/80 To GBP Portfolio: Rebalancing Strategy

Data Source: from January 1985 to June 2025
Consolidated Returns as of 30 June 2025
This asset allocation includes ETFs not denominated in GBP. Returns are calculated using exchange rates or, if applicable, interest rate differentials for currency hedging.

Managing the All Country World 20/80 To GBP Portfolio with a yearly rebalancing, you would have obtained a 6.99% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.47%.

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.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Jun 30, 2025

Implementing different rebalancing strategies, the All Country World 20/80 To GBP Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1985.

Portfolio returns are calculated in GBP, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
ALL COUNTRY WORLD 20/80 TO GBP PORTFOLIO RETURNS
Period: January 1985 - June 2025
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jun 30, 2025
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~41Y)
No Rebalancing 2.27 (0) 2.80 (0) 6.38 (0) 6.99 (0) 7.39 (0)
Yearly Rebalancing -0.04 (1) 0.38 (5) 5.08 (10) 6.55 (30) 7.05 (41)
Half Yearly Rebalancing -0.08 (2) 0.44 (10) 5.10 (20) 6.47 (60) 7.00 (81)
Quarterly Rebalancing -0.01 (4) 0.40 (20) 5.15 (40) 6.51 (120) 7.03 (162)
5% Tolerance per asset 0.15 (0) 0.47 (1) 5.16 (2) 6.59 (10) 7.12 (13)
10% Tolerance per asset 0.48 (0) 0.97 (1) 5.36 (1) 6.53 (2) 7.06 (3)

In order to have complete information about the portfolio, please refer to the All Country World 20/80 To GBP Portfolio: ETF allocation and returns page.

Performances as of Jun 30, 2025

Historical returns and stats of All Country World 20/80 To GBP Portfolio, after implementing different rebalancing strategies.

ALL COUNTRY WORLD 20/80 TO GBP PORTFOLIO PERFORMANCES
Period: January 1985 - June 2025
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 7.39 (0) 10.73 0.69 -22.93 0.32
Yearly Rebalancing 7.05 (41) 10.19 0.69 -20.37 0.35
Half Yearly Rebalancing 7.00 (81) 10.15 0.69 -20.52 0.34
Quarterly Rebalancing 7.03 (162) 10.15 0.69 -20.62 0.34
5% Tolerance per asset 7.12 (13) 10.18 0.70 -20.44 0.35
10% Tolerance per asset 7.06 (3) 10.28 0.69 -20.76 0.34
(*) Since Jan 1985 (~41 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jun 30, 2025

Historical Drawdowns of All Country World 20/80 To GBP Portfolio, after implementing different rebalancing strategies.

ALL COUNTRY WORLD 20/80 TO GBP PORTFOLIO DRAWDOWNS
Period: January 1985 - June 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-22.93
Dec 1989 - May 1991
-20.37
Dec 1989 - May 1991
-20.52
Dec 1989 - May 1991
-20.62
Dec 1989 - May 1991
-20.44
Dec 1989 - May 1991
-20.76
Dec 1989 - May 1991
-19.65
Feb 1987 - Jan 1989
-19.83
Feb 1987 - Mar 1989
-19.24
Feb 1987 - Mar 1989
-19.15
Feb 1987 - Mar 1989
-19.19
Feb 1987 - Mar 1989
-19.23
Feb 1987 - Mar 1989
-15.71
Mar 1985 - May 1986
-15.71
Mar 1985 - May 1986
-15.73
Mar 1985 - May 1986
-15.74
Mar 1985 - May 1986
-15.71
Mar 1985 - May 1986
-15.71
Mar 1985 - May 1986
-14.51
Mar 2002 - May 2005
-12.47
Mar 2002 - May 2005
-12.63
Mar 2002 - May 2005
-12.57
Mar 2002 - May 2005
-12.50
Mar 2002 - May 2005
-12.67
Jan 1994 - Aug 1995
-11.51
Jan 1994 - Jul 1995
-12.26
Jan 1994 - Aug 1995
-12.32
Jan 1994 - Aug 1995
-12.36
Jan 1994 - Aug 1995
-12.17
Jan 1994 - Aug 1995
-12.36
Mar 2002 - Jun 2005
5 Worst Drawdowns - Average
-16.86 -16.13 -16.09 -16.09 -16.00 -16.14
10 Worst Drawdowns - Average
-12.81 -12.02 -12.00 -11.98 -12.00 -12.17

For a deeper insight, please refer to the All Country World 20/80 To GBP Portfolio: ETF allocation and returns page.