Managing the Developed World 80/20 To GBP Portfolio with a yearly rebalancing, you would have obtained a 8.23% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.76%.
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 Developed World 80/20 To GBP 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)
| Return (%) and number of rebalances as of Jul 31, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~54Y) |
|||||
| No Rebalancing | 12.41 | (0) | 13.03 | (0) | 12.03 | (0) | 8.23 | (0) | 10.32 | (0) |
| Yearly Rebalancing | 10.33 | (1) | 10.30 | (5) | 10.52 | (10) | 7.84 | (30) | 10.09 | (54) |
| Half Yearly Rebalancing | 10.13 | (2) | 10.26 | (10) | 10.52 | (20) | 7.76 | (60) | 10.04 | (108) |
| Quarterly Rebalancing | 10.21 | (4) | 10.20 | (20) | 10.57 | (40) | 7.80 | (120) | 10.07 | (215) |
| 5% Tolerance per asset | 10.50 | (1) | 10.49 | (2) | 10.65 | (3) | 7.84 | (10) | 10.09 | (13) |
| 10% Tolerance per asset | 10.87 | (0) | 11.11 | (1) | 10.95 | (1) | 7.75 | (1) | 10.07 | (2) |
In order to have complete information about the portfolio, please refer to the Developed World 80/20 To GBP Portfolio: ETF allocation and returns page.
Performances as of Jul 31, 2025
Historical returns and stats of Developed World 80/20 To GBP Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 10.32 | (0) | 13.14 | 0.79 | -45.86 | 0.23 |
| Yearly Rebalancing | 10.09 | (54) | 12.16 | 0.83 | -39.79 | 0.25 |
| Half Yearly Rebalancing | 10.04 | (108) | 12.16 | 0.83 | -40.29 | 0.25 |
| Quarterly Rebalancing | 10.07 | (215) | 12.17 | 0.83 | -39.97 | 0.25 |
| 5% Tolerance per asset | 10.09 | (13) | 12.21 | 0.83 | -40.04 | 0.25 |
| 10% Tolerance per asset | 10.07 | (2) | 12.26 | 0.82 | -41.59 | 0.24 |
Drawdowns as of Jul 31, 2025
Historical Drawdowns of Developed World 80/20 To GBP Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-45.86
Sep 2000 - Mar 2010
|
-39.79
Sep 2000 - May 2007
|
-40.29
Sep 2000 - May 2007
|
-39.97
Sep 2000 - May 2007
|
-40.04
Sep 2000 - May 2007
|
-41.59
Sep 2000 - Dec 2009
|
|
-32.14
Jan 1990 - Nov 1992
|
-29.00
Jan 1990 - Oct 1992
|
-29.40
Jan 1990 - Oct 1992
|
-29.36
Jan 1990 - Oct 1992
|
-29.61
Jan 1990 - Oct 1992
|
-29.13
Jan 1990 - Oct 1992
|
|
-26.59
Sep 1987 - Mar 1989
|
-24.88
Sep 1987 - Mar 1989
|
-24.26
Sep 1987 - Jan 1989
|
-23.97
Sep 1987 - Jan 1989
|
-24.36
Sep 1987 - Mar 1989
|
-23.94
Sep 1987 - Mar 1989
|
|
-22.98
Nov 1973 - Apr 1975
|
-22.91
Nov 1973 - Apr 1975
|
-23.07
Nov 1973 - Apr 1975
|
-23.07
Nov 1973 - Apr 1975
|
-22.98
Nov 1973 - Apr 1975
|
-22.98
Nov 1973 - Apr 1975
|
|
-14.58
Aug 1998 - Nov 1998
|
-20.48
Jan 2008 - Sep 2009
|
-21.39
Jan 2008 - Sep 2009
|
-21.85
Jan 2008 - Sep 2009
|
-21.88
Jan 2008 - Sep 2009
|
-13.21
Aug 1998 - Nov 1998
|
| 5 Worst Drawdowns - Average | |||||
| -28.43 | -27.41 | -27.68 | -27.64 | -27.77 | -26.17 |
| 10 Worst Drawdowns - Average | |||||
| -20.50 | -19.64 | -19.75 | -19.73 | -19.89 | -18.94 |
For a deeper insight, please refer to the Developed World 80/20 To GBP Portfolio: ETF allocation and returns page.
