20 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 apparent failure of US-China trade talks has raised the probability of weakening global growth during 2019.  Financial markets are leading expectations for one or more interest rate cuts in the later part of 2019, a prospect helping to sustain US equity markets despite the otherwise adverse change in conditions. The stronger US dollar - with its negative connotations for US dollar denominated commodity prices - and expectations of stalling global growth have pushed the Australian currency down, holding up pricing for ASX-listed gold companies.   More...

Portfolio Performance and Positioning
Strong gains among Phase III stocks have reflected currency moves and, ironically, weakening global growth prospects.  Phase I and Phase II stock prices continue to display heightened volatility stemming from their bottom of the cycle leverage to even minor changes in market conditions. Exploration companies have remained historically unpopular investments compared with those on more established development or production paths.  The portfolio has a lowered Phase III weighting in anticipation of a negative impact from an ongoing cyclical downturn 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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