5 November 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?
None of the five PortfolioDirect cyclical guideposts are turned to ‘green’.  The cyclical positioning has been reclassified as ‘downswing’ with global growth decelerating and less supportive monetary policy settings. Unusually prolonged supply side constraints which have been offsetting the effect of weak demand growth are losing their impact as newly initiated production starts to flow in some metal categories.  More...

Market Directions
Mining and oil and gas stocks were caught up in a broader equity market resurgence after optimistic talk from the Us president about the prospects for a trade agreement with China.  Broader market conditions were also assisted by favourable quarterly earnings reports.  Commodity prices in the past week were marginally stronger although crude oil prices continued to tumble amid fears of emerging oversupply. Resources sector stocks have largely given up gains made over the past year.    More...

Portfolio Performance and Positioning
Phase I and Phase III stocks made gains during the week. Phase II companies, typically at critical junctures in their development paths and most sensitive to changes in current conditions, have tended to perform least well causing the macro portfolio to underperform the benchmark. The relatively large weighting in Phase I companies which now have less downside risk due to having been omitted from the earlier cyclical rally, has been retained.  No changes have been made to the 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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