Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1994 to May 2024
Consolidated Returns as of 31 May 2024

Managing the Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio with a yearly rebalancing, you would have obtained a 6.41% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.23%.

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 May 31, 2024

Implementing different rebalancing strategies, the Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1994.

Portfolio returns are calculated in EUR, 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)
  • 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.
AIM WAYS ULCER FREE STRATEGY TO EUR BOND HEDGED PORTFOLIO RETURNS
Period: January 1994 - May 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of May 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~30Y)
Yearly Rebalancing 5.69 (1) 3.52 (5) 3.84 (10) 6.41 (30) 6.11 (31)
Half Yearly Rebalancing 5.42 (2) 3.34 (10) 3.81 (20) 6.17 (60) 5.87 (61)
Quarterly Rebalancing 5.28 (4) 3.29 (20) 3.79 (40) 6.23 (120) 5.93 (122)
5% Tolerance per asset 6.10 (1) 3.71 (2) 4.07 (4) 6.39 (13) 6.09 (13)
10% Tolerance per asset 6.96 (0) 4.38 (1) 4.57 (2) 6.70 (5) 6.39 (5)

In order to have complete information about the portfolio, please refer to the Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio: ETF allocation and returns page.

Performances as of May 31, 2024

Historical returns and stats of Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio, after implementing different rebalancing strategies.

AIM WAYS ULCER FREE STRATEGY TO EUR BOND HEDGED PORTFOLIO PERFORMANCES
Period: January 1994 - May 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 6.11 (31) 5.47 1.12 -15.00 0.41
Half Yearly Rebalancing 5.87 (61) 5.36 1.10 -15.08 0.39
Quarterly Rebalancing 5.93 (122) 5.37 1.10 -15.20 0.39
5% Tolerance per asset 6.09 (13) 5.45 1.12 -15.24 0.40
10% Tolerance per asset 6.39 (5) 5.68 1.13 -15.25 0.42
(*) Since Jan 1994 (~30 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

Historical Drawdowns of Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio, after implementing different rebalancing strategies.

AIM WAYS ULCER FREE STRATEGY TO EUR BOND HEDGED PORTFOLIO DRAWDOWNS
Period: January 1994 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-15.00
Jan 2022 - In progress
-15.08
Sep 2021 - In progress
-15.20
Sep 2021 - In progress
-15.24
Jan 2022 - In progress
-15.25
Jan 2022 - In progress
-10.20
Feb 1994 - Aug 1995
-10.13
Feb 1994 - Aug 1995
-10.17
Feb 1994 - Aug 1995
-10.20
Feb 1994 - Aug 1995
-10.20
Feb 1994 - Aug 1995
-7.02
Sep 2000 - Apr 2003
-7.14
Mar 2008 - Mar 2009
-7.29
Mar 2008 - Mar 2009
-7.72
Mar 2008 - Apr 2009
-9.23
Sep 2000 - May 2003
-6.69
Mar 2008 - Jan 2009
-6.84
Sep 2000 - May 2003
-6.86
Sep 2000 - Nov 2002
-5.87
Sep 2000 - Jan 2003
-6.69
Mar 2008 - Dec 2008
-4.63
Apr 2000 - Aug 2000
-4.63
Apr 2000 - Aug 2000
-4.19
Apr 2013 - Jan 2014
-4.63
Apr 2000 - Aug 2000
-5.78
Apr 2000 - Aug 2000
5 Worst Drawdowns - Average
-8.71 -8.76 -8.74 -8.73 -9.43
10 Worst Drawdowns - Average
-6.13 -6.08 -6.06 -6.03 -6.33

For a deeper insight, please refer to the Aim Ways Ulcer Free Strategy To EUR Bond Hedged Portfolio: ETF allocation and returns page.