19 March 2018

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?
Cyclical progress continues to depend on a stronger growth profile than is currently anticipated with needed improvements in productivity outcomes hard to foresee. Unusually constrained metal supplies, a weakening US dollar and supportive monetary policies in all major economic regions - none of which can be taken for granted - have dominated recent outcomes.     More...

Market Directions
As commodity market conditions became less supportive, mining and oil and gas stocks toward the smaller end of the market lagged the larger market capitalisation companies with a stronger connection to broader equity market conditions. The Australian resources benchmark index has failed to get past mid 2014 levels suggesting a lack of underlying impetus for a genuine cyclical change in pricing.    More...

Portfolio Performance and Positioning
Portfolio returns in the past week reflected the disparity in performance between the largest stocks and the smallest stocks in the sector although, over the past four weeks, the relative performance has been in the opposite direction. The macro portfolio has been tilted increasingly toward the smaller end of the market where there is less correlation with broader equity market conditions.  A significant cash position remains. No further changes have been made to the models in the past week.              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.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.

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