3 June 2019

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?
Of the five PortfolioDirect cyclical guideposts, two are ‘red’ and three ‘amber’.  The cyclical positioning has been classified as ‘downswing’ with decelerating global growth forcing a negative change to expectations, a loss of output momentum in China, the largest national user of metal, and less supportive monetary policy settings than have prevailed for most of the post-2009 period.     More...

Market Directions
The downward trajectory in equity prices continued. Aggravating already pronounced signs of weakening growth, the US president tweeted out his intention to tax goods imported from Mexico. Chinese officials will now be wondering why they should bother seriously pursuing a deal if the US is so prepared to renege on an already concluded agreement.  Resource sector equity prices have continued to display unusual resilience in light of the broader macro position.  Financial market pricing reflects expectations of multiple reductions in US interest rates and easier monetary conditions in Europe.   More...

Portfolio Performance and Positioning
All classes of stock lost ground in the past week.  Phase I companies faced the heaviest losses for the month as a whole even as the market leaders posted a positive result helped by favourable moves in iron ore prices. Over the past month, exploration companies have remained historically unpopular investments compared with those on more established development or production paths.  The portfolio has a lowered Phase III weighting in anticipation of a negative impact from an ongoing cyclical downturn with a correspondingly higher cash position. No changes were been made to portfolio models.    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.

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