2 July 2018

Remuneration Report Analysis and Commentary: PortfolioDirect scores annual remuneration reports from ASX listed companies against a consistent analytical framework designed to help assess which reports are most worthy of shareholder support. 
Contents

Where are we in the Cycle?
Weak productivity outcomes among advanced economies and structural impediments among developing economies are evident headwinds to the advancement of an already mature cycle.  Uncertainties over trade restrictions are putting corporate investment decisions at risk at a critical juncture. Supply constraints, monetary conditions and exchange rates, important commodity price props, have become less supportive.     More...

Market Directions
Precious and industrial metal prices are on a downward trajectory.  Iron ore is weak but coal remains strong.  Crude oil has risen again.  Uranium remains in a lengthy cyclical slump.  Large mining stocks are holding up best.  The prices  of explorers dropped further during the week and finished lower over the June quarter despite strong rises among the market leaders.   More...

Portfolio Performance and Positioning
Phase I stocks fell as funds flowed to lower risk investment alternatives in markets generally as well as within the resources sector.  Relatively strong Phase III companies during June led to the macro portfolio falling short of the performance benchmark which is dominated by the large cap stocks.  The macro portfolio remains tilted toward the smaller end of the market and advanced exploration efforts where there is less correlation with broader equity market conditions.  No changes to the portfolio models have been suggested.  A modest cash position remains.   More...

Stock Reviews and Rating Analysis 
PortfolioDirect rating reports analyse the quality and risk attributes of proposed mineral developments.  Rating criteria apply to mining and oil and gas stocks at any stage of development.  PortfolioDirect uses a five point rating scale to measure the risk adjusted quality of proposed mineral developments or companies.    
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The 'Steak or Sizzle' blog provides summary judgements on the top performing ASX-listed resources stocks. More...

Although the statements of fact in this report have been added from and are based upon sources the authors of the report believe to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.  To the extent permitted by law, the authors of the report are not liable for any loss or damage arising as a result of reliance placed on the contents of this report.  

All opinions and estimates in this communication constitute judgments by the authors at the report date and are subject to change without notice.  The report publisher is under no obligation to make public any change in view about any matter referred to in this document.    

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.

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