$1.859 mil Daedalus Income Portfolio Update – Jun 2026 – Investment Moats

Here is the update for my Daedalus portfolio for Jun 2026. If work is not too busy, I will try to provide an update where possible.

I explained how I constructed this portfolio in Deconstructing Daedalus Income Portfolio and Why I Currently Invest in These Funds for Daedalus. You might not understand what I wrote below if you haven’t read this post.

All my personal planning notes such as income planning, insurance planning, investment & portfolio construction will be under my personal notes section of this blog.

You can also find the past updates similar to this in the personal planning notes section.

Portfolio Change Since Last Update

The portfolio was valued at $1.826 million at the end of May and is at $1.852 million at the end of June.

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

The portfolio is valued in SGD because that is the currency that I would most likely be spending on.

As of 5th July 2026, the portfolio is valued at $1.859 million.

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

We all want to know what cause the portfolio to do better or worse. If you have just one fund that covers the MSCI World, or you have a bunch of funds, would you know if it did better or worse?

In this section, I try my best to explain the portfolio performance in my way.

Here are the primary security holding returns for the month-to-date and year-to-date for the funds that I own [the top fund table] and reference benchmark ETFs [the bottom Major Index ETF table]:

The table that shows the fund holdings denotes the month-to-date and year-to-date performance of the funds that I own, against Major Index ETFs. The Major Index ETFs is present to compare the performance. Just to be clear, I do not own the major index ETFs and you should see the top table (Fund) as what I own. The bottom table (Major Index ETFs) are benchmark ETFs to provide performance reflections.

The returns of all funds are in USD. This includes the performance of the Dimensional funds, which I use the returns of the USD share class so that the returns are comparable. I have also listed the major index ETF performance for comparison.

a. General Equity Performance

June closed out a volatile but historically strong first half for global equities. The S&P 500 fell about 1.3% over the month, closing near 7,499 after opening above 7,600, snapping a two-month winning streak that had added roughly 15% since the end of March.

Despite the pullback, the S&P 500 posted its best quarterly performance since 2020, and finished the first half up 9.5%, almost exactly matching its long-run average annual return since 1950. The MSCI World index moved in step, down 0.72% for the month but up 13.76% over the quarter and 9.69% year to date.

But beneath the index level, the dispersion was wide. Semiconductor and chip-equipment names, Applied Materials and KLA among them, extended a rally that has taken the sector up almost 88% since March on AI infrastructure demand, while other AI-adjacent names came under pressure. Oracle fell over 35% in June despite reporting record cloud revenue, as investors focused on its negative $23.7 billion free cash flow and the roughly $40 billion in additional financing it expects to raise in fiscal 2027 to fund its build-out. Microsoft fell 17%, its worst month since the dot-com bust in 2000.

The rotation reflects a market that has grown more selective about which AI beneficiaries can turn spending into profit, rather than a broad reassessment of the AI theme itself.

Fixed income had a rockier first half.

Ten-year Treasury yields broke above 4.5% in mid-May and thirty-year yields crossed 5%, as sticky inflation pushed investors to reprice the path of Fed policy. Core PCE inflation rose from 3.0% year over year in December to 3.3% by April, and the Fed’s June dot plot showed the median projection shifting toward a 2026 rate hike, a reversal from the two cuts markets had priced in at the start of the year.

Yields gave back some of that move later in June as geopolitical tension eased, with the ten-year settling around 4.37%. Investment-grade credit held up well, with the Bloomberg US Corporate index returning about 0.41% for the month and agency MBS 0.56%, against a slightly negative return for high yield as spreads widened on caution around AI-related issuers.

The common thread across both equities and bonds this year has been an escalation and de-escalation cycle around the Iran conflict that began February 27, which pushed oil prices and inflation expectations higher, layered on top of a market still working out how much AI capital spending, an estimated $723 billion committed by the top five hyperscalers in 2026 alone, can be justified by actual returns.

b. Developed Equity Performance

There were a few multifactor funds targeting the developed equities region in Daedalus:

I hope you look at them as a diversified group of equities that gives exposure to developed large cap and mid cap global equities. They also systematically gives exposure to cheaper and more profitable companies with a little bit of short term momentum.

The overall valuation of this global portfolio segment is lower than the market cap weighted index. The aggregate forward earnings growth of the portfolio should be reasonably high, despite the cheaper valuation.

The main comparison will be against the MSCI World.

I thought GGRA did a nice recovery. GGRA has been struggling for the longest time, even going back last year. JPGL is sector neutral and its poorer performance should tell you that certain hot sectors are driving performance more.

A quite up-and-down month sees those multifactor funds that has less memory and hard disk do better.

Almost all the multifactor funds except GGRA did better than the MSCI World ETF.

c. Developed + Emerging Markets Equity Performance

The Dimensional World Equity sits as part of my SRS account. It is a single fund that gives exposure to the developed and emerging markets large cap and mid cap stocks.

You should compare this against the MSCI All Country World and MSCI All Country World IMI.

Dimensional World Equity’ has done slightly better in this topsy turvy month.

d. Emerging Markets Equity Performance

AVEM and EMSD is my emerging market exposure. One is a large, mid and small cap fund that should tilt towards value and profitability. The other is a pure emerging market small cap with no factor tilts.

I think after a while, the performance of large cap emerging markets is significantly driven by how well SK Hynix, Samsung and Taiwan Semi Conductors do. AVEM will tilt towards value and they may find the China Software stocks such as Alibaba and Tencent to be more value at this point and that may be where things will shirt.

Emerging market small caps fell more heavily probably due to the strengthening of the USD. But I want to take this moment to profile EMSD.

It’s an ETF with 1800 small companies that each make up a very tiny portion of the portfolio.

Very dominated by IT now.

A year ago in June the sectors were:

1. Industrials: 18.65%
2. Information Technology: 15.91%
3. Financials: 12.18%
4. Materials: 11.32%
5. Health Care: 10.61%
6. Consumer Discretionary: 10.60%
7. Consumer Staples: 6.06%
8. Real Estate: 5.79%

We can see the biggest driver was Information Technology. Consumer Discretionary looks pretty positive as well while Materials looked like it went down a fair bit.

A year ago the top 4 countries:

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

India and China should have gone down a fair bit due to the AI apocalypse, while Taiwan and Korea benefited.

I want you to be able to appreciate that beneath that 12.64% year to date return, there are probably a lot of sharp sell offs, and monster swing up.

COFORGE Limited out of India was the top holdings a year ago. Look at how it languish in 2026.

The current top holding in EMSD is Winbond and it did like 150% this year.

I don’t think I want to see what happens beneath the surface of a fund haha but this is the reality what is happening. The combination of this results to…. that 12% YTD performance.

e. Small Cap Equity Performance.

About 32% of the portfolio or 36.5% of the equity allocation is invested in Global Small Cap Value or Value-weighted funds. You should look at Dimensional Global Targeted Value, AVGS. USSC used to be a significant allocation but no more. I still leave the performance in for this year just so you can contextualize its performance.

In general, small caps did better than large caps for the month.

Russell 2000 continue to do very well this month after a great May, lead by a lot of the small semi-conductor names. If a lot of those nascent no-profits small cap do well, then Russell 2000 will do better than the S&P 600, which is a small cap index that requires the securities to have positive 12-month trailing earnings to be included. The Russell 2000 starts off this year as the worst (you can check my early Daedalus Income portfolio updates) but now ends up as one of the highest return.

AVGS and Global Targeted Value do worst most likely because energy has weaken after oil prices go down significantly and they are mores significantly heavy in Energy.

International small cap did worse than US, due to the strong USD. Strong USD might not be a good thing for everyone!

For context here is AVGS’s sector allocation two month ago (Apr):

And a month ago:

The benchmark is the MSCI Global Small Cap Value index not MSCI Global Small Cap. The biggest difference tends to be less real estate, biotech and IT and more energy and consumer discretionary.

AVGS and Global Targeted Value won’t do as well if these overweight sucks and not owning biotech when biotech does well.

This is how biotech did this year:

It will be pretty hard to beat.

S&P 600 and S&P 400 actually did very well.

In fact what pulled down AVGS most likely is that energy was not doing so well.
PSCT, the small cap technology ETF, fell 5% in June and continues to fall in the first few days so AVGS is going to feel some pain.

f. Global Aggregate Bond Performance

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

The chart below is the US government yield curve at 30th June (Red) and 1st June (Blue):

After the new Fed chair speak the short end of the rates went up but the long end moderated down which shows more demand for long end fixed income, not sure if a sign of lower future growth.

g. Currency Effect

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

Since the portfolio is based in SGD, this currency strength positively affects the portfolio.

Role of Portfolio

The goal of the portfolio is to generate steady, inflation-adjusted income to cover my essential living expenses. It’s built using a conservative initial withdrawal rate of 2.0–2.5%, which is designed to hold up even under extremely tough market conditions — including scenarios like the Great Depression, prolonged periods of high inflation (averaging 5.5–6% over 30 years), or major global conflicts. In other words, it’s stress-tested to withstand some of the worst financial environments in history.

The income needs to last: from today (age 45) for the rest of your life — potentially forever.

I am currently not drawing down the portfolio.

For further reading on:

1. My notes regarding my essential spending.
2. My notes regarding my basic spending.
3. My elaboration of the Safe Withdrawal Rate: Article | YouTube Video

Based on current portfolio value, the amount of monthly passive income that can be conservatively generated from the portfolio is

The lower the SWR, the more capital is needed, but the more resilient the income stream is.

Nature of the Income I Planned for

Generally, different income strategies produce different types of income streams. They can vary by:

• Consistency: Some provide steady income, others fluctuate over time
• Inflation Protection: Some adjust with inflation, others remain fixed
• Duration: Some last for a set number of years, others are designed to last indefinitely (perpetual)

An income stream based on the Safe Withdrawal Rate framework is consistent and inflation-adjusted, and if we use a low initial Safe Withdrawal Rate of 2.0-2.5%, the income stream leans towards a long duration to perpetual.

Here is a visual illustration of how the income stream will be based on the current portfolio value:

The income for the initial year is based on a 2% Safe Withdrawal Rate. The income for subsequent years is based on the inflation rate in the prior year (refer to the bottom pane of inflation in the previous year). If the inflation is high, the income scales up and if there is deflation, the income is reduced.

Amount of Cash Flow/Income Withdrawn/Extracted from Daedalus Income Portfolio

I wish to be fully transparent about the schedule of withdrawals from the portfolio because if the goal of the portfolio is eventually or currently provide income for spending, you would be interested to know how much is taken out from the portfolio.

There have not been any withdrawals or cash flow extraction for spending since the publication of the portfolio. I will update as and when it happens.

Capital Injected Into Daedalus

My goal for Daedalus is not to inject capital into the portfolio since its first report in May 2024. One of the reason is to show a portfolio that is buy-and-hold, instead of some weird “war chest market timing” strategy.

Usually the injection is if I have SRS commitments to reduce the tax expense.

Here are my historical Capital Injections to the portfolio:

Investment Strategy & Philosophy

After trying my best to learn how to invest for a while, the portfolio expresses my thoughts about investing at this point.

The portfolio is run in a

1. Strategic: allocation doesn’t change by short-term events.
2. Systematic: rules/decision-tree-based implemented either myself or an external manager.
3. Low-cost: investment implementation cost is kept reasonably low both on the fund level and also on the custodian level.
4. Passive: I spend relatively little effort mentally considering investments and also action-wise.

You can read more in this note article: Deconstructing Daedalus My Passive Income Investment Portfolio for My Essential & Basic Spending.

Portfolio Change Since Last Update (Usually Last Month)

There are no portfolio changes for the month.

Current Holdings – By Dollar Value and Percentages

The following table shows more details about the securities that I currently held.

The securities are grouped based on general strategy, whether they are:

1. Systematic Passive Fixed Income to reduce volatility.
2. Systematic Passive, which are equities that tries to capture the market risk in a systematic manner.
3. Systematic Active, which are equities that tries to capture various proven risk premiums such as value, momentum, quality, high profitability, and size in a systematic manner.
4. Hard Assets, securities that are more commodities related, that tends to do well in commodities related inflation situations.
5. Legacy Tracking Positions, securities that I still keep around, minimized to track their historical performance.

Portfolio Grouped by Account Money Source Location

Generally, you won’t have just one view about the securities in your portfolio.

In the following sections, I show my portfolio when viewed from different angles.

The first is the portfolio based on location.

1. Cash means held in accounts that we can make independent choices of which platform that we choose to invest in, when we decide to buy, when we decide to sell without any liquidity, tax, or locking considerations.
2. SRS Account is a Singapore-related retirement account. There are tax advantages on your ordinary working income if a person contributes to it. You can defer the income tax until after your retirement, where only 50% of your withdrawal then will be tax, at the prevailing tax bracket then.

This view does nothing much but some might be curious whether it makes up my money in CPF, here or there and so basically these are basically my cash monies and SRS.

Portfolio Grouped by Geographical Region Exposure of Securities

The second view groups the securities based on its geographical exposure.

Returns comes potentially from taking systematic risks and risks comes partly from the macro, interest and inflation exposure in different geographical regions.

The general regions:

1. Developed Markets – Strategies that systematically considers the large-cap and mid-cap equities in developed countries. You can view the countries, and sector composition at this MSCI World Index page.
2. Global – Strategies that systematically considers the large-cap, mid-cap, small-cap equities in both developed and emerging market countries. You can view the countries, and sector composition at this MSCI Emerging Markets IMI Index page.
3. US – Strategies that mainly tap small-cap US equities.

Portfolio Grouped by Fund, Cash or Individual Security

The third view groups the securities based on whether they are fund, cash or individual securities.

Almost 100% of the portfolio is implemented with funds. Funds can be:

1. Singapore Unit Trusts domiciled in Ireland.
2. London Stock Exchange listed exchange traded funds (ETFs) domiciled in Ireland.

Portfolio Grouped by Investment Strategy.

The last view groups the securities based on commonly known high level strategy names.

What Systematic Active Means: Funds that help me execute passively very specific, repeatable underlying securities selection on an ongoing basis. Here are some examples of the systematic active strategies in my portfolio:

1. Global Multifactor: From a basket of 1,600 developed market large and mid-cap stocks, rank the stocks by their value, by their 12-month momentum, by their degree of ROE and debt to asset, and then own the top 300. Do this every half-yearly or quarterly. You end up with a strategy that consistently owns 300 companies that are cheaper, quality and have greater momentum relative to a market cap weighted index.
2. Small Cap Value: From a basket of 3,000 developed market small cap stocks, rank the stocks based on price-to-book value (include intangibles in the book value). Also rank the stocks by operating earnings minus interest divide by book value. Eliminate the companies with low profitability. What we end up is two group of small cap stocks: The more profitable small caps but not too expensive, and the small caps stocks that are at least profitable but are very cheap. Own the top 30-35% of this cohort consistently. Have a manager that consistently helps me execute this.

In contrast, Systematic Passive are funds that help me track certain benchmark indexes. These indexes can be market-cap weighted, or equal-weighted, and reconstituted periodically so that they mirror the performance of benchmark indexes.

Hard Assets are the funds that provide exposure to energy-related securities.

Systematic Passive Fixed Income main helps damp the volatility of the portfolio. They are maintain based on the historical research that it is better to be less than 100% in equities if your portfolio is meant for income.

The fixed income/cash should not be viewed as a war chest to rebalanced to equity or take profit from equity. This is a strategic long term allocation whose main purpose is to optimized negative sequence of return risks.

The Main Custodians for the Securities in this Portfolio

The current custodians are:

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

If you want to trade these stocks I mentioned, you can open an account with Interactive Brokers. Interactive Brokers is the leading low-cost and efficient broker I use and trust to invest & trade my holdings in Singapore, the United States, London Stock Exchange and Hong Kong Stock Exchange. They allow you to trade stocks, ETFs, options, futures, forex, bonds and funds worldwide from a single integrated account.

You can read more about my thoughts about Interactive Brokers in this Interactive Brokers Deep Dive Series, starting with how to create & fund your Interactive Brokers account easily.

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.

Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory Firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.

You can view Kyith’s current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.