10 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
Equity markets reversed earlier losses during the week despite global growth concerns, monetary policy uncertainty and unresolved trade disputes. Lower than expected US employment gains in May helped solidify expectations of interest rates cuts by the Federal Reserve. Despite the nature of the growth outlook, headline resource sector equity price indicators are proving resilient largely as a consequence of stronger iron ore prices which are bucking the trend among industrial metals.  Gold prices benefitted from rising bond prices. .   More...

Portfolio Performance and Positioning
All classes of stock lost ground in the past week with little differences across the key development stages.  Phase I stock prices, as a group, were firmer than they had been over the prior two months but the dispersion in returns meant that they featured among the strongest and weakest returns in the models.  Exploration exposure remains unpopular among investors. 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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