U-Quiet Compounding Portfolio Overview
| CAGR | 15.5% |
|---|---|
| Maximum drawdown | -6.7% |
| MAR ratio | 2.31 |
| History | 23 years (281 months) |
U-Quiet Compounding is the UCITS version of Quiet Compounding, developed by Randy Harris of Dual Momentum Systems for investors outside the United States who buy UCITS funds rather than US-listed ETFs.
It is built exactly like Quiet Compounding: four strategies at equal weight, each reading a different signal, with the four blocks reset to equal weight every January and left to drift in between. The only difference is that each block is the UCITS version of its strategy.
The Four Strategies
| Block | Weight | Reads | UCITS change from the US version |
|---|---|---|---|
| U-Carrier | 25% | High yield credit spread | No long/short equity fund; more managed futures |
| U-Catalyst | 25% | Growth and breakeven inflation | Intermediate Treasuries in place of the tail-risk fund |
| U-GPMv | 25% | Breadth and correlation across eleven risk assets | None to the rules; Pacific held as a fund pair |
| U-Triad | 25% | Relative momentum in three sleeves | No long/short equity fund; mid cap for mid-cap value |
Each strategy's page lists its UCITS funds, with tickers and ISINs. Because the blocks overlap, a fund can appear in more than one of them; the portfolio's holding in a fund is the sum across blocks. Gold, held by U-Catalyst, U-GPMv and U-Triad, is held through a physical gold ETC.
Performance Highlights
May 2003 through September 2026, net of trading friction:
| CAGR | Max Drawdown | Ulcer Index | UPI | |
|---|---|---|---|---|
| U-Quiet Compounding | +15.5% | -6.7% | 2.06 | 6.73 |
| Quiet Compounding | +16.2% | -7.2% | 2.12 | 6.89 |
| S&P 500 | +11.3% | -51.0% | 11.72 | 0.82 |
The Ulcer Index measures how deep and how long drawdowns were, not just the single worst one: lower is better. UPI (Ulcer Performance Index) is return above T-bills per unit of Ulcer Index: higher is better.
U-Quiet Compounding gives up about 0.7% a year to Quiet Compounding, spread across U-Carrier, U-Catalyst and U-Triad, with a slightly shallower worst drawdown and a slightly lower Ulcer Index. Diversifying across four signals absorbs most of what the individual UCITS changes cost. The history begins in 2003 because that is when U-Catalyst's breakeven inflation series starts.
Notes for Investors Outside the US
- Results are in US dollars. The strategy is calculated on the history of the equivalent US funds, in US dollars. If you measure your portfolio in pounds, euros or another currency, your results will also move with the exchange rate.
- Why UCITS funds. Irish-domiciled UCITS funds are the standard way for non-US investors to hold US markets. They often receive US dividends at a lower withholding rate than a non-US investor holding US-listed ETFs directly would, and they are not US assets for US estate tax purposes. Rules vary by country, so check with a tax adviser where you live.
- Gold is held as an ETC. UCITS rules do not allow a fund that holds only gold, so gold is held through the iShares Physical Gold ETC, a security backed by physical gold. It is not a UCITS fund, but it is UCITS eligible and widely available to investors in the UK, Europe and elsewhere.
- Listings. The tickers above are the London Stock Exchange USD lines unless noted. Most of the funds also trade in London in pounds and on European exchanges in euros, under the same ISIN, which is the surest way to find the right fund at any broker.
Who It's For
U-Quiet Compounding is for investors outside the US who want strong long-run returns without the volatility of a market portfolio, from a single blended portfolio built only from UCITS funds and a physical gold ETC. It makes a natural anchor for a barbell approach.
Past performance, including backtested results, is not indicative of future results. Backtested performance is hypothetical, does not reflect actual trading, and benefits from hindsight in the selection of strategy rules. U-Quiet Compounding is calculated on the history of the equivalent US-listed funds; the UCITS funds track the same or closely matching indexes but their returns will differ, including from fees, tax treatment and currency. Portions of the long-term history rely on reconstructed proxy data for funds that did not exist for the full period across its four strategies. Investors should carefully consider their risk tolerance and consult with a financial advisor.
For the latest details, visit www.DualMomentumSystems.com