12 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
Unusually strong intraday swings modified the net change in equity prices but a swift sentiment switch during the week left markets reeling.  Moves in prices of equities, bonds, foreign exchange and commodities marked the week. Resource sector equity indices, consistent with the commodity price moves, were led lower by the iron ore exposed market leaders while gold stocks rose. The small end of the market - mostly exploration companies - posted gains. The widening disparity between copper price and bond yield moves implies one or other of the bond or copper markets appears to have a mistaken view about the prospects for global growth.     More...

Portfolio Performance and Positioning
Phase I stocks continued to outperform stocks in the Phase II and Phase III development stages although gains from the earliest stage stocks in the sector are coming from historically depressed levels. Phase III stocks are taking the brunt of deteriorating cyclical conditions after having tracked equity prices higher despite the forecast for a downturn in rates of economic activity. The portfolio has an elevated cash position and exposure to Phase I companies in recognition of the ongoing risk of cyclical weakness 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.    
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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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