5 August 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 US Federal Reserve met expectations with a cut in its policy rate of 0.25 percentage points and simultaneously disappointed investors.  The Fed Chairman fumbled his reasoning about the reasons for the rate cut and the associated forward guidance, describing the rate cut as a mid-cycle adjustment which should not be taken as the first of many.  Disappointment over the Fed’s reluctance to offer more stimulus caused equity prices to falter.  As market sentiment cooled, resource sector equity prices joined the downtown after having remained surprisingly resilient in the face of so much negativity about global growth.      More...

Portfolio Performance and Positioning
Phase I stocks again outperformed the Phase II and Phase III development stages although gains from the earliest stage stocks in the sector are coming from historically low levels. Phase III stocks are taking the brunt of deteriorating cyclical conditions having already shown the strongest leverage to improved equity market conditions. The portfolio has an elevated cash position in recognition of the ongoing risk of cyclical downturn in metal markets. 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.    
More...

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.

Copyright 2018 PortfolioDirect All Rights Reserved.