Managing the UK Stocks/Bonds 80/20 Portfolio with a yearly rebalancing, you would have obtained a 7.23% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 6.93%.
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 Stocks/Bonds 80/20 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 (~155Y) |
|||||
| No Rebalancing | 14.37 | (0) | 12.98 | (0) | 6.99 | (0) | 7.23 | (0) | 7.03 | (0) |
| Yearly Rebalancing | 11.54 | (1) | 9.33 | (5) | 5.76 | (10) | 6.97 | (30) | 6.90 | (155) |
| Half Yearly Rebalancing | 11.45 | (2) | 9.32 | (10) | 5.74 | (20) | 6.93 | (60) | 6.88 | (310) |
| Quarterly Rebalancing | 11.44 | (4) | 9.27 | (20) | 5.78 | (40) | 6.96 | (120) | 6.86 | (619) |
| 5% Tolerance per asset | 11.72 | (0) | 9.66 | (2) | 5.97 | (4) | 7.03 | (9) | 6.88 | (23) |
| 10% Tolerance per asset | 11.83 | (0) | 10.20 | (1) | 5.98 | (1) | 6.97 | (2) | 6.93 | (7) |
In order to have complete information about the portfolio, please refer to the UK Stocks/Bonds 80/20 Portfolio: ETF allocation and returns page.
Performances as of Jul 31, 2025
Historical returns and stats of UK Stocks/Bonds 80/20 Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 7.03 | (0) | 11.14 | 0.63 | -63.52 | 0.11 |
| Yearly Rebalancing | 6.90 | (155) | 9.54 | 0.72 | -56.02 | 0.12 |
| Half Yearly Rebalancing | 6.88 | (310) | 9.51 | 0.72 | -56.55 | 0.12 |
| Quarterly Rebalancing | 6.86 | (619) | 9.51 | 0.72 | -56.92 | 0.12 |
| 5% Tolerance per asset | 6.88 | (23) | 9.56 | 0.72 | -57.18 | 0.12 |
| 10% Tolerance per asset | 6.93 | (7) | 9.76 | 0.71 | -58.82 | 0.12 |
Drawdowns as of Jul 31, 2025
Historical Drawdowns of UK Stocks/Bonds 80/20 Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-63.52
Sep 1972 - Apr 1976
|
-56.02
Sep 1972 - Nov 1975
|
-56.55
Sep 1972 - Jan 1976
|
-56.92
Sep 1972 - Jan 1976
|
-57.18
Sep 1972 - Jan 1976
|
-58.82
Sep 1972 - Feb 1976
|
|
-40.40
Nov 2007 - Apr 2011
|
-31.84
Nov 2007 - Oct 2010
|
-32.14
Nov 2007 - Oct 2010
|
-32.52
Nov 2007 - Dec 2010
|
-32.35
Nov 2007 - Dec 2010
|
-34.59
Nov 2007 - Feb 2011
|
|
-40.22
Sep 2000 - Dec 2005
|
-31.08
Sep 2000 - Jul 2005
|
-31.43
Sep 2000 - Jul 2005
|
-31.09
Sep 2000 - Jul 2005
|
-30.89
Sep 2000 - Jul 2005
|
-30.28
Sep 2000 - Jun 2005
|
|
-34.61
Aug 1929 - Nov 1935
|
-30.51
Aug 1929 - May 1935
|
-30.68
Aug 1929 - May 1935
|
-30.91
Aug 1929 - Jun 1935
|
-30.70
Aug 1929 - Jun 1935
|
-29.35
Aug 1929 - Dec 1934
|
|
-31.76
Oct 1987 - Jul 1989
|
-26.19
Oct 1987 - Apr 1989
|
-24.93
Oct 1987 - Jan 1989
|
-24.11
Oct 1987 - Jan 1989
|
-24.93
Oct 1987 - Jan 1989
|
-26.83
Oct 1987 - Apr 1989
|
| 5 Worst Drawdowns - Average | |||||
| -42.10 | -35.13 | -35.15 | -35.11 | -35.21 | -35.97 |
| 10 Worst Drawdowns - Average | |||||
| -33.08 | -27.71 | -27.73 | -27.73 | -27.91 | -28.85 |
For a deeper insight, please refer to the UK Stocks/Bonds 80/20 Portfolio: ETF allocation and returns page.
