19 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
Recession talk intensified as the US government bond yield curve inverted and yields on the bonds of major currencies remained negative.  Despite rising anxiety reflected in more equity price volatility, markets were generally orderly. The equity market mood was improved by comments from German government officials suggesting a willingness to use fiscal policy to improve the growth outlook. The headline resource sector equity indices fell although, once again, the smallest stocks in the sector primarily engaged in exploration showed greater resilience, albeit after having suffered unprecedented weakness since of the cyclical peak in sector market conditions in early 2011.        More...

Portfolio Performance and Positioning
Phase I stock returns slipped behind those of  both Phase II and Phase III companies in the past week as each of the portfolio segments ran ahead of the benchmark which is dominated by the two global market leaders and the companies most susceptible to a generalised equity market sell-off. 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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