Right here is the replace for my Daedalus portfolio for January 2026. If work just isn’t 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 At the moment Put money into These Funds for Daedalus. You may not perceive what I wrote under in the event you haven’t learn this put up.
All my private planning notes resembling revenue planning, insurance coverage planning, funding & portfolio development shall be below 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 $1.646 million on the finish of December and is at $1.686 million on the finish of January.
We reported a portfolio change of $40,000 for January 2026.
The portfolio is valued in SGD as a result of that’s the foreign money that I might most certainly be spending on.
As of fifth February 2026, the portfolio is valued at $1.713 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. In case you have only one fund that covers the MSCI World, or you’ve got a bunch of funds, would you recognize if it did higher or worse?
On this part, I attempt my greatest to elucidate the portfolio efficiency in my means.
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 it’s best to see the highest desk (Fund) as what I personal. The underside desk (Main Index ETFs) are benchmark ETFs to offer 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
The MSCI World appreciated 1.6% for the month in USD phrases however the rising markets did higher at 8% simply in a single month.
This may clarify why the MSCI All Nation World IMI and MSCI All Nation World ETFs are doing higher than the world due to their rising market publicity.
Should you see the S&P 500 doing 0.64%, it means worldwide fairness is doing higher than the US.
I’m barely glad that worldwide shares do nicely extra hoping that now we have two consecutive years of fine developed worldwide efficiency.
b. Developed Fairness Efficiency
There have been a number of multifactor funds focusing on the developed equities area in Daedalus:
- JPGL
- GGRA
- AVGC
- IFSW
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 offers publicity to cheaper and extra worthwhile corporations with a little bit little bit of quick time period momentum.
The general valuation of this portfolio section is decrease than the market cap weighted index. The mixture ahead earnings progress of the portfolio ought to be fairly excessive, regardless of the cheaper valuation.
The primary comparability shall be towards the MSCI World.
JPGL and AVGC did higher than the MSCI World whereas GGRA and IFSW did worse.
IFSW was the standout performer in 2025, and when what labored in 2025 don’t work so nicely in January, its efficiency suffered.
We lastly see JPGL shine as a result of JPGL is extra sector impartial which implies it has a bigger allocation to the supplies, industrial, monetary, vitality sector which did nicely.
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.
You must evaluate this towards the MSCI All Nation World.
I lastly am in a position to see the World Fairness do nicely relative to the MSCI All Nation World. A couple of different sectors had been working in 2025 and but Dimensional World Fairness efficiency was mediocre.
So most certainly the efficiency is because of… vitality.
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 the direction of worth and profitability. The opposite is a pure rising market small cap with no issue tilts.
Each of them underperformance the benchmark index however their efficiency was not too shabby.
EMSD is probably going nonetheless levered extra in the direction of a weaken USD and given its 1,911 securities holdings which the most important being 0.65% of the portfolio, an excellent efficiency means its more durable to attribute why it did 6.6% in January.
e. Small Cap Fairness Efficiency.
About 32% of the portfolio or 36.5% of the fairness allocation is invested in World and US Small Cap Worth or Worth-weighted funds. You must take a look at Dimensional World Focused Worth, AVGS and USSC.
Russell 2000 did 4.59%. The extra worthwhile S&P 600 did 3.89%.
The MSCI World Small Cap did 5.1%, indicating that worldwide small caps is doing higher and that much less worthwhile small caps within the US is doing higher.
World Focused Worth did barely lesser than the MSCI World Small Cap, whereas AVGS did higher.
USSC did higher than the S&P 600 however did worse than the Russell 2000.
f. World Mixture Bond Efficiency
12.7% of the portfolio is in iShares Core World Mixture Bond UCITS ETF (AGGU).
The chart under is the US authorities yield curve at finish Dec (Blue) and finish Jan (Crimson):
The curve shifted upwards so this a little bit of headwind for a hard and fast revenue portfolio with 6 years of period on common.
g. Forex Impact
The USD weakened by 1.13% for the month towards the SGD.
For the reason that portfolio relies in SGD, this foreign money weak point negatively impacts the portfolio.
Position of Portfolio
The objective of the portfolio is to generate regular, inflation-adjusted revenue to cowl my important residing bills. It’s constructed utilizing a conservative preliminary withdrawal price of two.0–2.5%, which is designed to carry up even below extraordinarily robust market situations — together with situations just like the Nice Despair, extended durations of excessive inflation (averaging 5.5–6% over 30 years), or main international conflicts. In different phrases, it’s stress-tested to resist a number of the worst monetary environments in historical past.
The revenue must final: from immediately (age 45) for the remainder of your life — probably eternally.
I’m at present not drawing down the portfolio.
For additional studying on:
- My notes relating to my important spending.
- My notes relating to my primary spending.
- My elaboration of the Protected Withdrawal Fee: Article | YouTube Video
Based mostly 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
Usually, different revenue methods produce various kinds of revenue streams. They will range by:
- Consistency: Some present regular revenue, others fluctuate over time
- Inflation Safety: Some alter with inflation, others stay fastened
- Period: Some final for a set variety of years, others are designed to final indefinitely (perpetual)
An revenue stream primarily based on the Protected Withdrawal Fee framework is constant and inflation-adjusted, and if we use a low preliminary Protected Withdrawal Fee of two.0-2.5%, the revenue stream leans in the direction of an extended period to perpetual.
Here’s a visible illustration of how the revenue stream shall be primarily based on the present portfolio worth:
The revenue for the preliminary 12 months relies on a 2% Protected Withdrawal Fee. The revenue for subsequent years relies on the inflation price within the prior 12 months (discuss with the underside pane of inflation within the earlier 12 months). If the inflation is excessive, the revenue scales up and if there may be deflation, the revenue is lowered.
Quantity of Money Movement/Earnings Withdrawn/Extracted from Daedalus Earnings Portfolio
I want to be totally clear concerning the schedule of withdrawals from the portfolio as a result of if the objective of the portfolio is ultimately or at present present revenue for spending, you’d 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.
Funding Technique & Philosophy
After making an attempt my greatest 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
- Strategic: allocation doesn’t change by short-term occasions.
- Systematic: guidelines/decision-tree-based carried out both myself or an exterior supervisor.
- Low-cost: funding implementation price is saved fairly low each on the fund degree and in addition on the custodian degree.
- Passive: I spend comparatively little effort mentally contemplating investments and in addition action-wise.
You’ll be able to learn extra on this observe article: Deconstructing Daedalus My Passive Earnings Funding Portfolio for My Important & Primary Spending.
Portfolio Change Since Final Replace (Often Final Month)
There are no modifications to the portfolio within the final 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 common technique, whether or not they’re:
- Mounted Earnings / Money to scale back volatility.
- Systematic Passive, which tries to seize the market danger in a scientific method.
- Systematic Energetic, which tries to seize numerous confirmed danger premiums resembling worth, momentum, high quality, excessive profitability, and measurement in a scientific method.
- Lengthy-term sectorial positions.
Portfolio Grouped by Account 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 totally different angles.
The primary is the portfolio primarily based on location.
- Money means held in accounts that we will make impartial decisions of which platform that we select to spend money on, after we resolve to purchase, after we resolve to promote with none liquidity, tax, or locking issues.
- SRS Account is a Singapore-related retirement account. There are tax benefits in your strange 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 shall be tax, on the prevailing tax bracket then.
This view does nothing a lot however some may be curious whether or not it makes up my cash in CPF, right here or there and so principally these are principally 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 overall areas:
- World Developed – 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.
- World Developed + Rising IMI – Methods that systematically considers the large-cap, mid-cap, small-cap equities in 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.
- 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 might be:
- Singapore Unit Trusts domiciled in Eire.
- London Inventory Alternate listed alternate traded funds (ETFs) domiciled in Eire.
Portfolio Grouped by Technique.
The final view teams the securities primarily based on generally identified excessive degree technique names.
What Systematic Energetic 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:
- 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 corporations which are cheaper, high quality and have better momentum relative to a market cap weighted index.
- 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 guide worth). Additionally rank the shares by working earnings minus curiosity divide by guide 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 are at the very least 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 monitor sure benchmark indexes. These indexes might be market-cap weighted, or equal-weighted, and reconstituted periodically in order that they mirror the efficiency of benchmark indexes.
Sector are the funds that present publicity to dangers of sure sector resembling semi-conductor or vitality for example.
Mounted Earnings/Money important helps damp the volatility of the portfolio. They’re keep 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 fastened revenue/money shouldn’t be considered as a battle chest to rebalanced to fairness or take revenue from fairness. It is a strategic long run allocation whose important function is to optimized detrimental sequence of return dangers.
The Principal Custodians for the Securities on this Portfolio
The present custodians are:
- Money: Interactive Brokers LLC (not SG)
- SRS: Philips FAME
If you wish to commerce these shares I discussed, you’ll be able to open an account with Interactive Brokers. Interactive Brokers is the main low-cost and environment friendly dealer I exploit and belief to speculate & commerce my holdings in Singapore, the US, London Inventory Alternate and Hong Kong Inventory Alternate. They 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 how you can 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, how you can have a Passive funding technique, know extra about investing in REITs and the nuts and bolts of Energetic Investing.
Readers additionally comply with Kyith to discover ways to plan nicely for Monetary Safety and Monetary Independence.
Kyith labored as an IT operations engineer from 2004 to 2019. At the moment, he works as a Senior Options Specialist in Payment-only Wealth Advisory Agency Providend. All opinions on Funding Moats are his personal and doesn’t characterize 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 spend money on securities from totally different exchanges all around the world, at very low fee charges, with out custodian charges, close to spot foreign money charges.
You’ll be able to learn extra about Kyith right here.
