15 July 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
The main US equity market indices posted new records, as did the principal global price index, as confidence grew that the US Federal Reserve would act to support the US equity market. Metal prices are somewhat at odds with the bond market outlook as their pace of decline has slowed in recent weeks, intimating an improvement in global growth momentum.  Inconsistencies in the flow of market data imply the need for some realignment of prices between those which imply more favourable conditions with those intimating less propitious investment outcomes.        More...

Portfolio Performance and Positioning
Once again, against the trend of recent months, weekly Phase I stock returns were relatively strong although gains from this segment of the market are coming from historically low levels leaving absolute prices, as a group, still near all time low levels. Phase II companies were again the weakest of the three portfolio segments as development risks magnify disadvantageous cyclical positioning. The portfolio has an elevated cash position in recognition of the ongoing cyclical downturn 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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