Managing the Harry Browne Permanent Portfolio To GBP Hedged with a yearly rebalancing, you would have obtained a 10.00% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 6.74%.
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 Jun 30, 2025
Implementing different rebalancing strategies, the Harry Browne Permanent Portfolio To GBP Hedged guaranteed the following returns.
Portfolio returns are calculated in GBP, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
- the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
| Return (%) and number of rebalances as of Jun 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~76Y) |
|||||
| No Rebalancing | 14.22 | (0) | 13.97 | (0) | 11.11 | (0) | 10.00 | (0) | 10.69 | (0) |
| Yearly Rebalancing | 14.32 | (1) | 4.84 | (5) | 5.33 | (10) | 6.89 | (30) | 8.62 | (76) |
| Half Yearly Rebalancing | 13.90 | (2) | 4.72 | (10) | 5.33 | (20) | 6.74 | (60) | 8.50 | (151) |
| Quarterly Rebalancing | 14.22 | (4) | 4.68 | (20) | 5.42 | (40) | 6.79 | (120) | 8.44 | (302) |
| 5% Tolerance per asset | 14.48 | (1) | 5.15 | (4) | 5.51 | (6) | 6.93 | (21) | 8.55 | (52) |
| 10% Tolerance per asset | 14.68 | (1) | 5.48 | (2) | 5.71 | (3) | 7.32 | (9) | 8.81 | (20) |
In order to have complete information about the portfolio, please refer to the Harry Browne Permanent Portfolio To GBP Hedged: ETF allocation and returns page.
Performances as of Jun 30, 2025
Historical returns and stats of Harry Browne Permanent Portfolio To GBP Hedged, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 10.69 | (0) | 12.01 | 0.89 | -43.63 | 0.25 |
| Yearly Rebalancing | 8.62 | (76) | 6.68 | 1.29 | -16.89 | 0.51 |
| Half Yearly Rebalancing | 8.50 | (151) | 6.62 | 1.28 | -16.96 | 0.50 |
| Quarterly Rebalancing | 8.44 | (302) | 6.57 | 1.29 | -17.24 | 0.49 |
| 5% Tolerance per asset | 8.55 | (52) | 6.59 | 1.30 | -16.88 | 0.51 |
| 10% Tolerance per asset | 8.81 | (20) | 6.74 | 1.31 | -16.89 | 0.52 |
Drawdowns as of Jun 30, 2025
Historical Drawdowns of Harry Browne Permanent Portfolio To GBP Hedged, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-43.63
Nov 2007 - Feb 2011
|
-16.89
Jan 2022 - Jun 2024
|
-16.96
Jan 2022 - Jun 2024
|
-17.24
Jan 2022 - Jul 2024
|
-16.88
Jan 2022 - Jun 2024
|
-16.89
Jan 2022 - May 2024
|
|
-38.58
Sep 2000 - Jun 2005
|
-14.82
Dec 1980 - Oct 1982
|
-15.15
Dec 1980 - Oct 1982
|
-15.10
Dec 1980 - Oct 1982
|
-14.21
Dec 1980 - Oct 1982
|
-13.43
Dec 1980 - Oct 1982
|
|
-25.15
Dec 1980 - Jan 1983
|
-12.00
May 1969 - Jan 1971
|
-12.41
Apr 1974 - Jan 1975
|
-12.21
May 1969 - Jan 1971
|
-12.11
May 1969 - Jan 1971
|
-13.29
May 1969 - Jan 1971
|
|
-24.43
Jan 2022 - Feb 2024
|
-11.24
Feb 1980 - Jun 1980
|
-12.10
May 1969 - Jan 1971
|
-11.63
Mar 2008 - Aug 2009
|
-11.24
Feb 1980 - Jun 1980
|
-11.10
Apr 1974 - Jan 1975
|
|
-24.26
Dec 1968 - Mar 1971
|
-11.23
Apr 1974 - Jan 1975
|
-11.24
Feb 1980 - Jun 1980
|
-11.31
Apr 1974 - Jan 1975
|
-11.10
Apr 1974 - Jan 1975
|
-11.06
Mar 2008 - Dec 2008
|
| 5 Worst Drawdowns - Average | |||||
| -31.21 | -13.24 | -13.57 | -13.50 | -13.11 | -13.15 |
| 10 Worst Drawdowns - Average | |||||
| -25.13 | -10.47 | -10.55 | -10.56 | -10.23 | -10.29 |
For a deeper insight, please refer to the Harry Browne Permanent Portfolio To GBP Hedged: ETF allocation and returns page.
