$1.814 mil Daedalus Earnings Portfolio Replace – Could 2026 – Funding Moats

Right here is the replace for my Daedalus portfolio for Could 2026. If work is just not too busy, I’ll attempt to present an replace the place potential.

I defined how I constructed this portfolio in Deconstructing Daedalus Earnings Portfolio and Why I Presently Spend money on These Funds for Daedalus. You may not perceive what I wrote under when you haven’t learn this publish.

All my private planning notes resembling revenue planning, insurance coverage planning, funding & portfolio development might be beneath my private notes part of this weblog.

You too can discover the previous updates just like this within the private planning notes part.

Portfolio Change Since Final Replace

The portfolio was valued at $1.776 million on the finish of April and is at $1.826 million on the finish of Could.

We reported a portfolio change of two.8% or $50,000 for Could 2026.

The portfolio is valued in SGD as a result of that’s the forex that I might most certainly be spending on.

As of 2th June 2026, the portfolio is valued at $1.814 million.

Portfolio Attribution – Why did the portfolio do higher/worse examine to final month [or a year ago if this is a December update]?

All of us wish to know what trigger the portfolio to do higher or worse. When you’ve got only one fund that covers the MSCI World, or you will have a bunch of funds, would you already know if it did higher or worse?

On this part, I attempt my finest to elucidate the portfolio efficiency in my approach.

Listed here are the first safety holding returns for the month-to-date and year-to-date for the funds that I personal [the top fund table] and reference benchmark ETFs [the bottom Major Index ETF table]:

The desk that exhibits the fund holdings denotes the month-to-date and year-to-date efficiency of the funds that I personal, towards Main Index ETFs. The Main Index ETFs is current to match the efficiency. Simply to be clear, I don’t personal the foremost index ETFs and you must see the highest desk (Fund) as what I personal. The underside desk (Main Index ETFs) are benchmark ETFs to supply efficiency reflections.

The returns of all funds are in USD. This consists of the efficiency of the Dimensional funds, which I exploit the returns of the USD share class in order that the returns are comparable. I’ve additionally listed the foremost index ETF efficiency for comparability.

a. Common Fairness Efficiency

Some market individuals who have been ready for the coast to clear earlier than investing was in a state of disbelief after they noticed the Nasdaq simply go straight up.

We obtained to some extent like final yr virtually the identical interval the place they market simply went straight up earlier than the coast is evident. Is the market too exuberant?

You would possibly want one other lens: If time and time once more, you count on that solely when the coast is evident, when earnings begin exhibiting up then the costs begin shifting, and it doesn’t occur, maybe you must ask in case you are taking a look at it with the best psychological mannequin.

Markets observe earnings, and a few demand and provide of the info heart is telling you.. hey what occur in Straits of Hormuz issues however not as a lot as you suppose.

The MSCI World rose 4.95% for the month in USD phrases after rising 10% final month and the rising markets did even higher rising 8% after rising 13% final month. Rising markets are doing 24% this yr with the MSCI World lastly exhibiting 9.88% return.

The S&P 500 rose 5.99% for the month which suggests they really did higher than worldwide shares.

b. Developed Fairness Efficiency

There have been a number of multifactor funds concentrating on the developed equities area in Daedalus:

I hope you take a look at them as a diversified group of equities that provides publicity to developed massive cap and mid cap international equities. Additionally they systematically provides publicity to cheaper and extra worthwhile firms with a little bit little bit of quick time period momentum.

The general valuation of this portfolio phase is decrease than the market cap weighted index. The combination ahead earnings progress of the portfolio needs to be fairly excessive, regardless of the cheaper valuation.

The primary comparability might be towards the MSCI World.

I assumed GGRA did a pleasant restoration. GGRA has been struggling for the longest time, even going again final yr. JPGL is sector impartial and its poorer efficiency ought to let you know that sure sizzling sectors are driving efficiency extra.

JPGL would do nicely when breadth of the markets do nicely. It’s nonetheless barely inline with MSCI World yr up to now.

After a poor begin of the yr, the chameleon-like IFSW might lastly be exhibiting us what its multifactor technique with its quarterly allocation assessment technique is ready to do.

Nearly all of the multifactor funds besides GGRA did higher than the MSCI World ETF.

c. Developed + Rising Markets Fairness Efficiency

The Dimensional World Fairness sits as a part of my SRS account. It’s a single fund that provides publicity to the developed and rising markets massive cap and mid cap shares.

You need to examine this towards the MSCI All Nation World and MSCI All Nation World IMI.

Having much less in semi-conductors affected Dimensional World Fairness’s efficiency however yr up to now it nonetheless has accomplished nicely.

d. Rising Markets Fairness Efficiency

AVEM and EMSD is my rising market publicity. One is a big, mid and small cap fund that ought to tilt in direction of worth and profitability. The opposite is a pure rising market small cap with no issue tilts.

Rising market is a monster actually.

A whole lot of you would possibly say “I can’t imagine that its doing X% after the Y% it did..” however you bought to recollect in that 2000 to 2007 stretch, rising market went up 4 instances.

e. Small Cap Fairness Efficiency.

About 32% of the portfolio or 36.5% of the fairness allocation is invested in International Small Cap Worth or Worth-weighted funds. You need to take a look at Dimensional International Focused Worth, AVGS. USSC was a big allocation however no extra. I nonetheless go away the efficiency in for this yr simply so you possibly can contextualize its efficiency.

Russell 2000 did very nicely this month, lead by a whole lot of the small semi-conductor names. If a whole lot of these nascent no-profits small cap do nicely, then Russell 2000 will do higher than the S&P 600, which is a small cap index that requires the securities to have constructive 12-month trailing earnings to be included.

Worldwide small cap battle to a sure diploma however typically financials, industrials, shopper discretionary struggled on the prospect that we’d see extra charge hikes than charge cuts.

f. International Mixture Bond Efficiency

11.5% of the portfolio is in iShares Core International Mixture Bond UCITS ETF (AGGU).

The chart under is the US authorities yield curve at twenty ninth Could (Blue) and 1st Could (Purple):

The lengthy finish of the yield curve at 10-year transfer lower than the 2-year/3-year vary.

That gives setting for AGGU to be respectable and we see AGGU transfer up 0.52%.

The quick period ERNA was up 0.25%. That is a lot decrease than final month’s 0.44%. Let’s see if that is the month the place the quick time period yield goes decrease.

g. Forex Impact

The USD strengthen by 0.27% for the month towards the SGD.

Because the portfolio is predicated in SGD, this forex energy positively impacts the portfolio.

Position of Portfolio

The aim of the portfolio is to generate regular, inflation-adjusted revenue to cowl my important residing bills. It’s constructed utilizing a conservative preliminary withdrawal charge of two.0–2.5%, which is designed to carry up even beneath extraordinarily robust market situations — together with eventualities just like the Nice Melancholy, extended durations of excessive inflation (averaging 5.5–6% over 30 years), or main international conflicts. In different phrases, it’s stress-tested to face up to a few of the worst monetary environments in historical past.

The revenue must final: from right now (age 45) for the remainder of your life — probably perpetually.

I’m presently not drawing down the portfolio.

For additional studying on:

1. My notes relating to my important spending.
2. My notes relating to my fundamental spending.
3. My elaboration of the Secure Withdrawal Charge: Article | YouTube Video

Primarily based on present portfolio worth, the quantity of month-to-month passive revenue that may be conservatively generated from the portfolio is

The decrease the SWR, the extra capital is required, however the extra resilient the revenue stream is.

Nature of the Earnings I Deliberate for

Typically, different revenue methods produce various kinds of revenue streams. They’ll fluctuate by:

• Consistency: Some present regular revenue, others fluctuate over time
• Inflation Safety: Some alter with inflation, others stay mounted
• Period: Some final for a set variety of years, others are designed to final indefinitely (perpetual)

An revenue stream primarily based on the Secure Withdrawal Charge framework is constant and inflation-adjusted, and if we use a low preliminary Secure Withdrawal Charge of two.0-2.5%, the revenue stream leans in direction of an extended period to perpetual.

Here’s a visible illustration of how the revenue stream might be primarily based on the present portfolio worth:

The revenue for the preliminary yr is predicated on a 2% Secure Withdrawal Charge. The revenue for subsequent years is predicated on the inflation charge within the prior yr (seek advice from the underside pane of inflation within the earlier yr). If the inflation is excessive, the revenue scales up and if there may be deflation, the revenue is decreased.

Quantity of Money Move/Earnings Withdrawn/Extracted from Daedalus Earnings Portfolio

I want to be absolutely clear concerning the schedule of withdrawals from the portfolio as a result of if the aim of the portfolio is finally or presently present revenue for spending, you’ll have an interest to understand how a lot is taken out from the portfolio.

There have not been any withdrawals or money circulate extraction for spending for the reason that publication of the portfolio. I’ll replace as and when it occurs.

Capital Injected Into Daedalus

My aim for Daedalus is to not inject capital into the portfolio since its first report in Could 2024. One of many purpose is to indicate a portfolio that’s buy-and-hold, as a substitute of some bizarre “warfare chest market timing” technique.

Normally the injection is that if I’ve SRS commitments to scale back the tax expense.

Listed here are my historic Capital Injections to the portfolio:

Funding Technique & Philosophy

After attempting my finest to discover ways to make investments for some time, the portfolio expresses my ideas about investing at this level.

The portfolio is run in a

1. Strategic: allocation doesn’t change by short-term occasions.
2. Systematic: guidelines/decision-tree-based carried out both myself or an exterior supervisor.
3. Low-cost: funding implementation value is stored fairly low each on the fund degree and likewise on the custodian degree.
4. Passive: I spend comparatively little effort mentally contemplating investments and likewise action-wise.

You’ll be able to learn extra on this be aware article: Deconstructing Daedalus My Passive Earnings Funding Portfolio for My Important & Fundamental Spending.

Portfolio Change Since Final Replace (Normally Final Month)

There aren’t any portfolio adjustments for the month.

Present Holdings – By Greenback Worth and Percentages

The next desk exhibits extra particulars concerning the securities that I presently held.

The securities are grouped primarily based on basic technique, whether or not they’re:

1. Systematic Passive Fastened Earnings to scale back volatility.
2. Systematic Passive, that are equities that tries to seize the market danger in a scientific method.
3. Systematic Lively, that are equities that tries to seize numerous confirmed danger premiums resembling worth, momentum, high quality, excessive profitability, and dimension in a scientific method.
4. Laborious Property, securities which can be extra commodities associated, that tends to do nicely in commodities associated inflation conditions.
5. Legacy Monitoring Positions, securities that I nonetheless maintain round, minimized to trace their historic efficiency.

Portfolio Grouped by Account Cash Supply Location

Typically, you gained’t have only one view concerning the securities in your portfolio.

Within the following sections, I present my portfolio when considered from totally different angles.

The primary is the portfolio primarily based on location.

1. Money means held in accounts that we will make impartial selections of which platform that we select to put money into, after we resolve to purchase, after we resolve to promote with none liquidity, tax, or locking concerns.
2. SRS Account is a Singapore-related retirement account. There are tax benefits in your unusual working revenue if an individual contributes to it. You’ll be able to defer the revenue tax till after your retirement, the place solely 50% of your withdrawal then might be tax, on the prevailing tax bracket then.

This view does nothing a lot however some is likely to be curious whether or not it makes up my cash in CPF, right here or there and so mainly these are mainly my money monies and SRS.

Portfolio Grouped by Geographical Area Publicity of Securities

The second view teams the securities primarily based on its geographical publicity.

Returns comes probably from taking systematic dangers and dangers comes partly from the macro, curiosity and inflation publicity in numerous geographical areas.

The final areas:

1. Developed Markets – Methods that systematically considers the large-cap and mid-cap equities in developed international locations. You’ll be able to view the international locations, and sector composition at this MSCI World Index web page.
2. International – Methods that systematically considers the large-cap, mid-cap, small-cap equities in each developed and rising market international locations. You’ll be able to view the international locations, and sector composition at this MSCI Rising Markets IMI Index web page.
3. US – Methods that primarily faucet small-cap US equities.

Portfolio Grouped by Fund, Money or Particular person Safety

The third view teams the securities primarily based on whether or not they’re fund, money or particular person securities.

Nearly 100% of the portfolio is carried out with funds. Funds may be:

1. Singapore Unit Trusts domiciled in Eire.
2. London Inventory Alternate listed trade traded funds (ETFs) domiciled in Eire.

Portfolio Grouped by Funding Technique.

The final view teams the securities primarily based on generally identified excessive degree technique names.

What Systematic Lively Means: Funds that assist me execute passively very particular, repeatable underlying securities choice on an ongoing foundation. Listed here are some examples of the systematic energetic methods in my portfolio:

1. International Multifactor: From a basket of 1,600 developed market massive and mid-cap shares, rank the shares by their worth, by their 12-month momentum, by their diploma of ROE and debt to asset, after which personal the highest 300. Do that each half-yearly or quarterly. You find yourself with a method that persistently owns 300 firms which can be cheaper, high quality and have better momentum relative to a market cap weighted index.
2. Small Cap Worth: From a basket of three,000 developed market small cap shares, rank the shares primarily based on price-to-book worth (embrace intangibles within the ebook worth). Additionally rank the shares by working earnings minus curiosity divide by ebook worth. Get rid of the businesses with low profitability. What we find yourself is 2 group of small cap shares: The extra worthwhile small caps however not too costly, and the small caps shares which can be no less than worthwhile however are very low-cost. Personal the highest 30-35% of this cohort persistently. Have a supervisor that persistently helps me execute this.

In distinction, Systematic Passive are funds that assist me monitor sure benchmark indexes. These indexes may be market-cap weighted, or equal-weighted, and reconstituted periodically in order that they mirror the efficiency of benchmark indexes.

Laborious Property are the funds that present publicity to energy-related securities.

Systematic Passive Fastened Earnings predominant helps damp the volatility of the portfolio. They’re preserve primarily based on the historic analysis that it’s higher to be lower than 100% in equities in case your portfolio is supposed for revenue.

The mounted revenue/money shouldn’t be considered as a warfare chest to rebalanced to fairness or take revenue from fairness. This can be a strategic long run allocation whose predominant objective is to optimized detrimental sequence of return dangers.

The Important Custodians for the Securities on this Portfolio

The present custodians are:

1. Money: Interactive Brokers LLC (not SG)
2. SRS: Philips FAME

If you wish to commerce these shares I discussed, you possibly can open an account with Interactive Brokers. Interactive Brokers is the main low-cost and environment friendly dealer I exploit and belief to take a position & commerce my holdings in Singapore, the US, London Inventory Alternate and Hong Kong Inventory Alternate. They will let you commerce shares, ETFs, choices, futures, foreign exchange, bonds and funds worldwide from a single built-in account.

You’ll be able to learn extra about my ideas about Interactive Brokers in this Interactive Brokers Deep Dive Sequence, beginning with the right way to create & fund your Interactive Brokers account simply.

Kyith is the Proprietor and Sole Author behind Funding Moats. Readers tune in to Funding Moats to study and construct stronger, firmer wealth foundations, the right way to have a Passive funding technique, know extra about investing in REITs and the nuts and bolts of Lively Investing.

Readers additionally observe Kyith to discover ways to plan nicely for Monetary Safety and Monetary Independence.

Kyith labored as an IT operations engineer from 2004 to 2019. Presently, he works as a Senior Options Specialist in Price-only Wealth Advisory Agency Providend. All opinions on Funding Moats are his personal and doesn’t symbolize the views of Providend.

You’ll be able to view Kyith’s present portfolio right here, which makes use of his Free Google Inventory Portfolio Tracker.

His funding dealer of alternative is Interactive Brokers, which permits him to put money into securities from totally different exchanges all around the world, at very low fee charges, with out custodian charges, close to spot forex charges.

You’ll be able to learn extra about Kyith right here.