Consolidated Returns as of 31 October 2024
Managing the All Country World 40/60 To EUR Portfolio with a yearly rebalancing, you would have obtained a 7.72% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 6.14%.
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 Oct 31, 2024
Implementing different rebalancing strategies, the All Country World 40/60 To EUR Portfolio guaranteed the following returns.
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)
| Return (%) and number of rebalances as of Oct 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~52Y) |
|||||
| No Rebalancing | 27.35 | (0) | 10.17 | (0) | 9.33 | (0) | 7.72 | (0) | 7.71 | (0) |
| Yearly Rebalancing | 15.58 | (1) | 4.06 | (5) | 5.24 | (10) | 6.26 | (30) | 6.40 | (52) |
| Half Yearly Rebalancing | 15.39 | (2) | 4.05 | (10) | 5.25 | (20) | 6.14 | (60) | 6.34 | (104) |
| Quarterly Rebalancing | 15.26 | (4) | 4.09 | (20) | 5.29 | (40) | 6.21 | (120) | 6.39 | (209) |
| 5% Tolerance per asset | 15.38 | (0) | 4.06 | (2) | 5.26 | (4) | 6.24 | (18) | 6.43 | (31) |
| 10% Tolerance per asset | 15.55 | (0) | 4.26 | (1) | 5.49 | (2) | 6.21 | (5) | 6.40 | (8) |
In order to have complete information about the portfolio, please refer to the All Country World 40/60 To EUR Portfolio: ETF allocation and returns page.
Performances as of Oct 31, 2024
Historical returns and stats of All Country World 40/60 To EUR Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 7.71 | (0) | 13.48 | 0.57 | -45.13 | 0.17 |
| Yearly Rebalancing | 6.40 | (52) | 9.99 | 0.64 | -33.80 | 0.19 |
| Half Yearly Rebalancing | 6.34 | (104) | 9.96 | 0.64 | -33.92 | 0.19 |
| Quarterly Rebalancing | 6.39 | (209) | 9.96 | 0.64 | -33.28 | 0.19 |
| 5% Tolerance per asset | 6.43 | (31) | 10.03 | 0.64 | -33.14 | 0.19 |
| 10% Tolerance per asset | 6.40 | (8) | 10.14 | 0.63 | -34.15 | 0.19 |
Drawdowns as of Oct 31, 2024
Historical Drawdowns of All Country World 40/60 To EUR Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-45.13
Sep 2000 - Feb 2013
|
-33.80
Jan 1973 - May 1981
|
-33.92
Jan 1973 - May 1981
|
-33.28
Jan 1973 - May 1981
|
-33.14
Jan 1973 - May 1981
|
-34.15
Jan 1973 - May 1981
|
|
-34.75
Sep 1989 - Jun 1993
|
-24.05
Nov 2000 - May 2007
|
-24.79
Nov 2000 - Jan 2010
|
-24.20
Sep 1989 - Dec 1992
|
-24.62
Sep 1989 - Dec 1992
|
-25.36
Nov 2000 - Mar 2010
|
|
-33.37
Jan 1973 - Feb 1981
|
-23.68
Sep 1989 - Dec 1992
|
-23.97
Sep 1989 - Dec 1992
|
-24.05
Nov 2000 - May 2007
|
-24.18
Nov 2000 - May 2007
|
-25.17
Sep 1989 - Jan 1993
|
|
-26.33
Sep 1987 - Sep 1988
|
-17.48
Sep 1987 - Jun 1988
|
-17.08
Feb 1994 - Jan 1996
|
-17.10
Feb 1994 - Jan 1996
|
-16.95
Feb 1994 - Jan 1996
|
-16.90
Aug 1987 - Jun 1988
|
|
-16.31
Jan 2020 - Nov 2020
|
-17.01
Feb 1994 - Jan 1996
|
-16.13
Aug 1987 - Jun 1988
|
-15.35
Aug 1987 - Jun 1988
|
-16.13
Aug 1987 - Jun 1988
|
-16.75
Feb 1994 - Jan 1996
|
| 5 Worst Drawdowns - Average | |||||
| -31.18 | -23.21 | -23.18 | -22.80 | -23.00 | -23.67 |
| 10 Worst Drawdowns - Average | |||||
| -22.06 | -16.79 | -16.19 | -16.75 | -16.96 | -16.53 |
For a deeper insight, please refer to the All Country World 40/60 To EUR Portfolio: ETF allocation and returns page.
