11 November 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 prices were propelled higher through the week by reassurances over a pending solution to the US-China trade dispute and expected support from central banks. US corporate earnings reports also contributed.  Higher bond yields, at least for the present, are being interpreted as a sign of improved global growth conditions and beneficial for equities despite a theoretically negative impact on valuations.  Mining equity prices were helped to higher levels by the broad based strength in equity prices despite mixed commodity price outcomes.  Higher bond yields negatively impacted gold prices.    More...

Portfolio Performance and Positioning
A clear majority of stocks in each development phase moved higher in the past week although net gains were modest and less than the benchmark change.  The largest stocks continue to be the main beneficiaries of general equity market strength and, as a consequence, are most leveraged to future weakness.  Other parts of the sector remain historically weak having failed to participate in the most recent market strength.  No further changes have been made to portfolio models which remain biased to the Phase I stock category.      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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