$1.859 mil Daedalus Revenue Portfolio Replace – Jun 2026 – Funding Moats

Right here is the replace for my Daedalus portfolio for Jun 2026. If work shouldn’t be too busy, I’ll attempt to present an replace the place doable.

I defined how I constructed this portfolio in Deconstructing Daedalus Revenue Portfolio and Why I Presently Put money into These Funds for Daedalus. You may not perceive what I wrote under if you happen to haven’t learn this submit.

All my private planning notes akin to earnings planning, insurance coverage planning, funding & portfolio building might be below my private notes part of this weblog.

It’s also possible to discover the previous updates just like this within the private planning notes part.

Portfolio Change Since Final Replace

The portfolio was valued at $1.826 million on the finish of Might and is at $1.852 million on the finish of June.

We reported a portfolio change of 1.4% or $26,000 for June 2026.

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

As of fifth July 2026, the portfolio is valued at $1.859 million.

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

All of us need to know what trigger the portfolio to do higher or worse. If in case you have only one fund that covers the MSCI World, or you will have a bunch of funds, would you recognize if it did higher or worse?

On this part, I strive my greatest to clarify 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 check the efficiency. Simply to be clear, I don’t personal the most important index ETFs and it is best to 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 contains the efficiency of the Dimensional funds, which I take advantage of the returns of the USD share class in order that the returns are comparable. I’ve additionally listed the most important index ETF efficiency for comparability.

a. Common Fairness Efficiency

June closed out a risky however traditionally sturdy first half for international equities. The S&P 500 fell about 1.3% over the month, closing close to 7,499 after opening above 7,600, snapping a two-month profitable streak that had added roughly 15% for the reason that finish of March.

Regardless of the pullback, the S&P 500 posted its greatest quarterly efficiency since 2020, and completed the primary half up 9.5%, virtually precisely matching its long-run common annual return since 1950. The MSCI World index moved in step, down 0.72% for the month however up 13.76% over the quarter and 9.69% yr so far.

However beneath the index degree, the dispersion was large. Semiconductor and chip-equipment names, Utilized Supplies and KLA amongst them, prolonged a rally that has taken the sector up virtually 88% since March on AI infrastructure demand, whereas different AI-adjacent names got here below stress. Oracle fell over 35% in June regardless of reporting report cloud income, as traders targeted on its destructive $23.7 billion free money movement and the roughly $40 billion in extra financing it expects to boost in fiscal 2027 to fund its build-out. Microsoft fell 17%, its worst month for the reason that dot-com bust in 2000.

The rotation displays a market that has grown extra selective about which AI beneficiaries can flip spending into revenue, fairly than a broad reassessment of the AI theme itself.

Fastened earnings had a rockier first half.

Ten-year Treasury yields broke above 4.5% in mid-Might and thirty-year yields crossed 5%, as sticky inflation pushed traders to reprice the trail of Fed coverage. Core PCE inflation rose from 3.0% yr over yr in December to three.3% by April, and the Fed’s June dot plot confirmed the median projection shifting towards a 2026 fee hike, a reversal from the 2 cuts markets had priced in at the beginning of the yr.

Yields gave again a few of that transfer later in June as geopolitical rigidity eased, with the ten-year settling round 4.37%. Funding-grade credit score held up effectively, with the Bloomberg US Company index returning about 0.41% for the month and company MBS 0.56%, towards a barely destructive return for prime yield as spreads widened on warning round AI-related issuers.

The frequent thread throughout each equities and bonds this yr has been an escalation and de-escalation cycle across the Iran battle that started February 27, which pushed oil costs and inflation expectations increased, layered on prime of a market nonetheless figuring out how a lot AI capital spending, an estimated $723 billion dedicated by the highest 5 hyperscalers in 2026 alone, may be justified by precise returns.

b. Developed Fairness Efficiency

There have been a couple of multifactor funds focusing on the developed equities area in Daedalus:

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

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

The primary comparability might be towards the MSCI World.

I believed 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.

A fairly up-and-down month sees these multifactor funds that has much less reminiscence and onerous disk do higher.

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 offers publicity to the developed and rising markets giant cap and mid cap shares.

It is best to evaluate this towards the MSCI All Nation World and MSCI All Nation World IMI.

Dimensional World Fairness’ has executed barely higher on this topsy turvy month.

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.

I believe after some time, the efficiency of enormous cap rising markets is considerably pushed by how effectively SK Hynix, Samsung and Taiwan Semi Conductors do. AVEM will tilt in direction of worth they usually could discover the China Software program shares akin to Alibaba and Tencent to be extra worth at this level and that could be the place issues will shirt.

Rising market small caps fell extra closely in all probability as a result of strengthening of the USD. However I need to take this second to profile EMSD.

It’s an ETF with 1800 small firms that every make up a really tiny portion of the portfolio.

Very dominated by IT now.

A yr in the past in June the sectors have been:

1. Industrials: 18.65%
2. Data Know-how: 15.91%
3. Financials: 12.18%
4. Supplies: 11.32%
5. Well being Care: 10.61%
6. Shopper Discretionary: 10.60%
7. Shopper Staples: 6.06%
8. Actual Property: 5.79%

We are able to see the most important driver was Data Know-how. Shopper Discretionary seems fairly constructive as effectively whereas Supplies appeared prefer it went down a good bit.

A yr in the past the highest 4 international locations:

1. India: 27%
2. Taiwan: 18.87%
3. Korea: 13.23%
4. China: 11.20%

India and China ought to have gone down a good bit as a result of AI apocalypse, whereas Taiwan and Korea benefited.

I need you to have the ability to respect that beneath that 12.64% yr so far return, there are in all probability loads of sharp promote offs, and monster swing up.

COFORGE Restricted out of India was the highest holdings a yr in the past. Take a look at the way it languish in 2026.

The present prime holding in EMSD is Winbond and it did like 150% this yr.

I don’t assume I need to see what occurs beneath the floor of a fund haha however that is the fact what is occurring. The mixture of this outcomes to…. that 12% YTD efficiency.

e. Small Cap Fairness Efficiency.

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

Normally, small caps did higher than giant caps for the month.

Russell 2000 proceed to do very effectively this month after an important Might, lead by loads of the small semi-conductor names. If loads of these nascent no-profits small cap do effectively, 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. The Russell 2000 begins off this yr because the worst (you may verify my early Daedalus Revenue portfolio updates) however now finally ends up as one of many highest return.

AVGS and World Focused Worth do worst most probably as a result of vitality has weaken after oil costs go down considerably and they’re mores considerably heavy in Vitality.

Worldwide small cap did worse than US, as a result of sturdy USD. Robust USD may not be an excellent factor for everybody!

For context right here is AVGS’s sector allocation two month in the past (Apr):

And a month in the past:

The benchmark is the MSCI World Small Cap Worth index not MSCI World Small Cap. The largest distinction tends to be much less actual property, biotech and IT and extra vitality and client discretionary.

AVGS and World Focused Worth received’t do as effectively if these obese sucks and never proudly owning biotech when biotech does effectively.

That is how biotech did this yr:

Will probably be fairly onerous to beat.

S&P 600 and S&P 400 truly did very effectively.

In truth what pulled down AVGS most probably is that vitality was not doing so effectively.
PSCT, the small cap know-how ETF, fell 5% in June and continues to fall within the first few days so AVGS goes to really feel some ache.

f. World Combination Bond Efficiency

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

The chart under is the US authorities yield curve at thirtieth June (Crimson) and 1st June (Blue):

After the brand new Fed chair communicate the quick finish of the charges went up however the lengthy finish moderated down which exhibits extra demand for lengthy finish fastened earnings, undecided if an indication of decrease future progress.

g. Forex Impact

The USD strengthen by 1.3% for the month towards the SGD.

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

Position of Portfolio

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

The earnings must final: from as we speak (age 45) for the remainder of your life — doubtlessly without end.

I’m at present not drawing down the portfolio.

For additional studying on:

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

Based mostly on present portfolio worth, the quantity of month-to-month passive earnings that may be conservatively generated from the portfolio is

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

Nature of the Revenue I Deliberate for

Usually, different earnings methods produce several types of earnings streams. They will differ by:

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

An earnings 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 earnings stream leans in direction of an extended period to perpetual.

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

The earnings for the preliminary yr is predicated on a 2% Secure Withdrawal Charge. The earnings for subsequent years is predicated on the inflation fee within the prior yr (discuss with the underside pane of inflation within the earlier yr). If the inflation is excessive, the earnings scales up and if there may be deflation, the earnings is diminished.

Quantity of Money Movement/Revenue Withdrawn/Extracted from Daedalus Revenue 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 ultimately or at present present earnings 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 movement 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 Might 2024. One of many cause is to point out a portfolio that’s buy-and-hold, as a substitute of some bizarre “battle chest market timing” technique.

Often 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 making an attempt my greatest to learn 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 applied both myself or an exterior supervisor.
3. Low-cost: funding implementation price is stored fairly low each on the fund degree and in addition on the custodian degree.
4. Passive: I spend comparatively little effort mentally contemplating investments and in addition action-wise.

You may learn extra on this observe article: Deconstructing Daedalus My Passive Revenue Funding Portfolio for My Important & Fundamental Spending.

Portfolio Change Since Final Replace (Often Final Month)

There are not any portfolio modifications for the month.

Present Holdings – By Greenback Worth and Percentages

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

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

1. Systematic Passive Fastened Revenue to scale back volatility.
2. Systematic Passive, that are equities that tries to seize the market threat in a scientific method.
3. Systematic Lively, that are equities that tries to seize varied confirmed threat premiums akin to worth, momentum, high quality, excessive profitability, and dimension in a scientific method.
4. Exhausting Belongings, securities which are extra commodities associated, that tends to do effectively 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

Usually, you received’t have only one view concerning the securities in your portfolio.

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

The primary is the portfolio primarily based on location.

1. Money means held in accounts that we are able to make unbiased selections of which platform that we select to put money into, once we determine to purchase, once we determine to promote with none liquidity, tax, or locking concerns.
2. SRS Account is a Singapore-related retirement account. There are tax benefits in your abnormal working earnings if an individual contributes to it. You may defer the earnings 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 perhaps 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 doubtlessly from taking systematic dangers and dangers comes partly from the macro, curiosity and inflation publicity in several geographical areas.

The overall areas:

1. Developed Markets – Methods that systematically considers the large-cap and mid-cap equities in developed international locations. You may view the international locations, and sector composition at this MSCI World Index web page.
2. World – Methods that systematically considers the large-cap, mid-cap, small-cap equities in each developed and rising market international locations. You may 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 applied with funds. Funds may be:

1. Singapore Unit Trusts domiciled in Eire.
2. London Inventory Alternate listed alternate 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 lively methods in my portfolio:

1. World Multifactor: From a basket of 1,600 developed market giant 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 constantly owns 300 firms which are 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 (embody intangibles within the e-book worth). Additionally rank the shares by working earnings minus curiosity divide by e-book worth. Remove 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 are a minimum of worthwhile however are very low cost. Personal the highest 30-35% of this cohort constantly. Have a supervisor that constantly helps me execute this.

In distinction, Systematic Passive are funds that assist me observe 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.

Exhausting Belongings are the funds that present publicity to energy-related securities.

Systematic Passive Fastened Revenue fundamental 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 earnings.

The fastened earnings/money shouldn’t be considered as a battle chest to rebalanced to fairness or take revenue from fairness. This can be a strategic long run allocation whose fundamental goal is to optimized destructive sequence of return dangers.

The Fundamental 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 may open an account with Interactive Brokers. Interactive Brokers is the main low-cost and environment friendly dealer I take advantage of and belief to take a position & commerce my holdings in Singapore, the USA, 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 may learn extra about my ideas about Interactive Brokers in this Interactive Brokers Deep Dive Collection, beginning with methods 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, methods to have a Passive funding technique, know extra about investing in REITs and the nuts and bolts of Lively Investing.

Readers additionally comply with Kyith to learn to plan effectively 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 characterize the views of Providend.

You may 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 completely different exchanges all around the world, at very low fee charges, with out custodian charges, close to spot forex charges.

You may learn extra about Kyith right here.