Developed World 20/80 To GBP Bond Hedged Portfolio: Rebalancing Strategy
Managing the Developed World 20/80 To GBP Bond Hedged Portfolio with a yearly rebalancing, you would have obtained a 5.03% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 3.98%.
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, 2026
Implementing different rebalancing strategies, the Developed World 20/80 To GBP Bond Hedged Portfolio guaranteed the following returns.
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)
- 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, 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~52Y) |
|||||
| No Rebalancing | 13.72 | (0) | 4.61 | (0) | 4.78 | (0) | 5.03 | (0) | 8.96 | (0) |
| Yearly Rebalancing | 4.25 | (1) | 0.00 | (5) | 1.57 | (10) | 4.04 | (30) | 8.44 | (52) |
| Half Yearly Rebalancing | 4.28 | (2) | -0.08 | (10) | 1.50 | (20) | 3.98 | (60) | 8.41 | (103) |
| Quarterly Rebalancing | 4.27 | (4) | -0.09 | (20) | 1.54 | (40) | 4.04 | (120) | 8.44 | (207) |
| 5% Tolerance per asset | 4.88 | (1) | 0.21 | (3) | 1.76 | (5) | 4.15 | (10) | 8.51 | (15) |
| 10% Tolerance per asset | 5.09 | (1) | 0.45 | (2) | 2.05 | (3) | 4.11 | (3) | 8.40 | (3) |
In order to have complete information about the portfolio, please refer to the Developed World 20/80 To GBP Bond Hedged Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2026
Historical returns and stats of Developed World 20/80 To GBP Bond Hedged Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.96 | (0) | 5.85 | 1.53 | -12.59 | 0.71 |
| Yearly Rebalancing | 8.44 | (52) | 5.61 | 1.50 | -15.37 | 0.55 |
| Half Yearly Rebalancing | 8.41 | (103) | 5.62 | 1.50 | -15.44 | 0.54 |
| Quarterly Rebalancing | 8.44 | (207) | 5.62 | 1.50 | -15.45 | 0.55 |
| 5% Tolerance per asset | 8.51 | (15) | 5.64 | 1.51 | -15.17 | 0.56 |
| 10% Tolerance per asset | 8.40 | (3) | 5.65 | 1.49 | -15.16 | 0.55 |
Drawdowns as of Jun 30, 2026
Historical Drawdowns of Developed World 20/80 To GBP Bond Hedged Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-12.59
Jan 2022 - Jun 2024
|
-15.37
Dec 2021 - In progress
|
-15.44
Dec 2021 - In progress
|
-15.45
Dec 2021 - In progress
|
-15.17
Dec 2021 - In progress
|
-15.16
Dec 2021 - In progress
|
|
-11.55
Feb 1994 - Nov 1995
|
-11.47
Feb 1994 - Nov 1995
|
-11.51
Feb 1994 - Nov 1995
|
-11.54
Feb 1994 - Nov 1995
|
-11.34
Feb 1994 - Nov 1995
|
-11.55
Feb 1994 - Nov 1995
|
|
-8.77
Sep 1989 - Mar 1991
|
-7.67
Sep 1989 - Feb 1991
|
-8.41
Sep 1989 - Feb 1991
|
-8.54
Sep 1989 - Feb 1991
|
-8.34
Sep 1989 - Feb 1991
|
-8.77
Sep 1989 - Mar 1991
|
|
-7.36
Nov 2007 - Mar 2010
|
-7.64
Nov 2007 - Feb 2010
|
-7.79
Nov 2007 - Feb 2010
|
-7.85
Nov 2007 - Feb 2010
|
-7.96
Nov 2007 - Mar 2010
|
-7.36
Nov 2007 - Mar 2010
|
|
-6.40
Feb 2025 - Jul 2025
|
-4.80
Sep 1987 - Jan 1988
|
-4.70
Jun 1992 - Oct 1992
|
-4.77
Jun 1992 - Oct 1992
|
-4.72
Jun 1992 - Oct 1992
|
-5.32
Sep 1987 - Jan 1988
|
| 5 Worst Drawdowns - Average | |||||
| -9.33 | -9.39 | -9.57 | -9.63 | -9.51 | -9.63 |
| 10 Worst Drawdowns - Average | |||||
| -6.92 | -6.76 | -6.82 | -6.84 | -6.79 | -6.86 |
For a deeper insight, please refer to the Developed World 20/80 To GBP Bond Hedged Portfolio: ETF allocation and returns page.