13 May 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 global growth decelerating, 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 downswing in equity prices continued apace as US-China trade talks faltered. Resource stocks continued their decline as fears about global growth, partially related to the failure to resolve US-China trade tensions, rose.  Market trends continued to imply that central banks will mitigate the negative impact of slower growth on demand for metals. Falling prices of high yield corporate bonds suggested some marginal deterioration in funding conditions for mine developers.    More...

Portfolio Performance and Positioning
Several Phase II stocks showed relative strength to produce an overall positive return during the week.  Phase I stocks offset these gains as exploration companies remained historically unpopular investments compared with those on more established development or production paths.  The share prices of Phase III companies have begun to react to weakening cyclical conditions.  In anticipation of this move persisting, the portfolio has a lowered Phase III weighting 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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