Right here is the replace for my Daedalus portfolio for February 2026. If work shouldn’t be 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 Spend money on These Funds for Daedalus. You may not perceive what I wrote under should you haven’t learn this submit.
All my private planning notes akin to earnings planning, insurance coverage planning, funding & portfolio development will probably be underneath my private notes part of this weblog.
You can too discover the previous updates just like this within the private planning notes part.
Portfolio Change Since Final Replace
The portfolio was valued at $1.686 million on the finish of January and is at $1.736 million on the finish of February.
We reported a portfolio change of two.9% or $50,000 for February 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 fifth March 2026, the portfolio is valued at $1.725 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 need 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 realize if it did higher or worse?
On this part, I strive my finest 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 reveals 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 key index ETFs and you must 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 take advantage of the returns of the USD share class in order that the returns are comparable. I’ve additionally listed the key index ETF efficiency for comparability.
a. Normal Fairness Efficiency
The MSCI World appreciated 0.76% for the month in USD phrases and the rising markets did higher at 5.2%.
It will 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.
In case you see the S&P 500 doing -0.73%, it means worldwide fairness is doing higher than the US.
In case you don’t perceive that there’s a distinction between quantity efficiency and expertise efficiency now you’ll know. In case you have been informed that S&P 500 has higher efficiency over many time frames (which is appropriate), you’ll have a WTF and “why is it like that?” feeling.
They’re all pure. That is expertise efficiency or efficiency expertise. I can’t make up my thoughts.
b. Developed Fairness Efficiency
There have been a couple of multifactor funds concentrating 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 provides publicity to developed giant cap and mid cap international equities. Additionally they systematically provides publicity to cheaper and extra worthwhile corporations with just a little 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 will probably be towards the MSCI World.
JPGL is clearly the nice performer. JPGL is like equal weighted or extra impartial over the sectors so which means they’ve the next power and supplies allocation and fewer data know-how.
In a while durations, JPGL will look silly however in a interval the place power has carried out so nicely, you may see the influence.
IFSW did the more severe and final 12 months it was the most effective. I half suspect JPGL and IFSW will do that, which is why it feels silly to reallocate away from JPGL, GGRA to place into IFSW and AVGC. The choices that I make shouldn’t be for immediately, tomorrow, a 12 months later however for decade and within the center, we received’t understand how the market is however to have some belief within the issue methodology and see the way it performs out.
One different factor: All of them together with the Dimensional International Core Fairness did higher than the MSCI World. They’re all utilizing completely different methodologies however in a approach that is partially what the returns are exhibiting us: There will probably be these ebbs and flows that in a broadening market, the most important corporations may not do 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 provides publicity to the developed and rising markets giant cap and mid cap shares.
You need to examine this towards the MSCI All Nation World.
World Fairness continues to do nicely versus the index at 3.1% versus 1.3% or 1.5% whether or not you need to consider IMI. I believe you must which signifies that try to be evaluating towards the IMID.
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.
Each of them underperformance the benchmark index however their efficiency was not too shabby.
2 months into the 12 months and AVEM is doing 13% and EMSD is doing 11%. AVEM is at present underperforming EIMI however barely narrowing the hole. Rising small caps is doing higher than international small cap.
e. Small Cap Fairness Efficiency.
About 32% of the portfolio or 36.5% of the fairness allocation is invested in International and US Small Cap Worth or Worth-weighted funds. You need to take a look at Dimensional International Focused Worth, AVGS and USSC.
- Russell 2000 did 1%.
- The extra worthwhile S&P 600 did 2.7%.
- The midcap S&P 400 did 4.2%
We’re beginning to see the mid caps waking up!
Extra so on this broadening out, we see extra participation from industrials which is a bigger allocation to the extra worthwhile small caps and mid caps.
The MSCI World Small Cap did 4.2%, indicating that worldwide small caps is doing higher and that much less worthwhile small caps within the US is doing higher.
- AVGS did 5.7%
- USSC did 3.3%
- International Focused Worth did 3.7%
Shucks, I’m not certain if I obtained the International Focused Worth efficiency proper however I cross checked towards the UCITS ETF model (DDGT) and its exhibiting 3.4% so I assume it’s not too far off. International Focused Worth shouldn’t be doing as nicely AVGS, or the World Small Cap index and its laborious to clarify:
- If International Focused Worth has a bigger proportion of corporations nearer to mid cap, then it ought to do higher.
- In the event that they haven’t been doing as nicely as a result of the securities chosen is extra deep worth versus extra “move” or profitability pushed then I suppose sooner or later the deep worth did nicely.
So it is a bit perplexing.
USSC is just a little underwhelming however it’s not doing something out of the norms.
The methodology of Avantis would find yourself with the next power allocation than regular (however not tremendous excessive its like 6-7%) and so since power have carried out so nicely, AVGS benefited.
f. International Combination Bond Efficiency
12.7% of the portfolio is in iShares Core International Combination Bond UCITS ETF (AGGU).
The chart under is the US authorities yield curve at finish Jan (Blue) and finish Feb (Pink):
The distinction examine to final month’s replace is that as an alternative of a slight shift up, the curve shifted all the way in which down. When market curiosity falls, current bond costs rise.
Thus AGGU did 1.2% within the month of February examine to only 0.17% in January.
g. Forex Impact
The USD weakened by 0.48% for the month towards the SGD.
Because the portfolio relies in SGD, this forex weak spot negatively 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 price of two.0–2.5%, which is designed to carry up even underneath extraordinarily powerful market situations — together with situations 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 resist among the worst monetary environments in historical past.
The earnings must final: from immediately (age 45) for the remainder of your life — probably ceaselessly.
I’m at present not drawing down the portfolio.
For additional studying on:
- My notes concerning my important spending.
- My notes concerning my fundamental spending.
- My elaboration of the Protected Withdrawal Price: Article | YouTube Video
Primarily based 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 Earnings I Deliberate for
Usually, different earnings methods produce several types of earnings streams. They’ll differ by:
- Consistency: Some present regular earnings, others fluctuate over time
- Inflation Safety: Some modify with inflation, others stay mounted
- Period: Some final for a set variety of years, others are designed to final indefinitely (perpetual)
An earnings stream based mostly on the Protected Withdrawal Price framework is constant and inflation-adjusted, and if we use a low preliminary Protected Withdrawal Price of two.0-2.5%, the earnings stream leans in direction of a protracted period to perpetual.
Here’s a visible illustration of how the earnings stream will probably be based mostly on the present portfolio worth:
The earnings for the preliminary 12 months relies on a 2% Protected Withdrawal Price. The earnings for subsequent years relies on the inflation price within the prior 12 months (check with the underside pane of inflation within the earlier 12 months). If the inflation is excessive, the earnings scales up and if there’s deflation, the earnings is lowered.
Quantity of Money Circulate/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 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 move extraction for spending for the reason that publication of the portfolio. I’ll replace as and when it occurs.
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
- Strategic: allocation doesn’t change by short-term occasions.
- Systematic: guidelines/decision-tree-based applied 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 may learn extra on this word article: Deconstructing Daedalus My Passive Earnings Funding Portfolio for My Important & Primary Spending.
Portfolio Change Since Final Replace (Normally Final Month)
There are no adjustments to the portfolio within the final month.
Present Holdings – By Greenback Worth and Percentages
The next desk reveals extra particulars concerning the securities that I at present held.
The securities are grouped based mostly on common technique, whether or not they’re:
- Mounted Earnings / Money to cut back volatility.
- Systematic Passive, which tries to seize the market danger in a scientific method.
- Systematic Energetic, which tries to seize varied confirmed danger premiums akin to 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 seen from completely different angles.
The primary is the portfolio based mostly on location.
- Money means held in accounts that we are able to make impartial selections of which platform that we select to spend money on, once we resolve to purchase, once we resolve to promote with none liquidity, tax, or locking concerns.
- SRS Account is a Singapore-related retirement account. There are tax benefits in your bizarre 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 will probably 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 based mostly on its geographical publicity.
Returns comes probably from taking systematic dangers and dangers comes partly from the macro, curiosity and inflation publicity in several geographical areas.
The overall areas:
- International Developed – 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.
- International Developed + Rising IMI – Methods that systematically considers the large-cap, mid-cap, small-cap equities in developed and rising market international locations. You may 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 based mostly on whether or not they’re fund, money or particular person securities.
Virtually 100% of the portfolio is applied with funds. Funds may be:
- Singapore Unit Trusts domiciled in Eire.
- London Inventory Trade listed alternate traded funds (ETFs) domiciled in Eire.
Portfolio Grouped by Technique.
The final view teams the securities based mostly on generally recognized 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 lively methods in my portfolio:
- International 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 persistently owns 300 corporations which are cheaper, high quality and have larger 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 based mostly 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. Eradicate 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 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.
Sector are the funds that present publicity to dangers of sure sector akin to semi-conductor or power for instance.
Mounted Earnings/Money predominant helps damp the volatility of the portfolio. They’re preserve based mostly on the historic analysis that it’s higher to be lower than 100% in equities in case your portfolio is supposed for earnings.
The mounted earnings/money shouldn’t be seen 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 damaging sequence of return dangers.
The Essential Custodians for the Securities on this Portfolio
The present custodians are:
- Money: Interactive Brokers LLC (not SG)
- SRS: Philips FAME
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I break down my assets in accordance with these subjects:
- All my private notes about how my philosophy behind my very own cash and the way I handle it.
- Constructing Your Wealth Basis – If you realize and apply these easy monetary ideas, your long run wealth needs to be fairly nicely managed. Discover out what they’re
- Energetic Investing – For lively inventory buyers. My deeper ideas from my inventory investing expertise
- Studying about REITs – My Free “Course” on REIT Investing for Newcomers and Seasoned Buyers
- Dividend Inventory Tracker – Monitor all of the frequent 4-10% yielding dividend shares in SG
- Free Inventory Portfolio Monitoring Google Sheets that many love
- Retirement Planning, Monetary Independence and Spending down cash – My deep dive into how a lot you want to obtain these, and the alternative ways you may be financially free
- Providend – The place I used to work doing analysis. Payment-Solely Advisory. No Commissions. Monetary Independence Advisers and Retirement Specialists. No cost for the primary assembly to know the way it works
- Havend – The place I at present work. We want to ship commission-based insurance coverage recommendation in a greater approach.
Kyith is the Proprietor and Sole Author behind Funding Moats. Readers tune in to Funding Moats to be taught and construct stronger, firmer wealth foundations, the best way to 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 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 spend money on 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.
