21 October 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
US and global equity markets moved generally higher as nervousness over the course of monetary policy and future international trade conditions played a lesser role in farming market outcomes.  The latest round of corporate earnings results helped sustain market prices. Metal prices continued to display surprising resilience against a backdrop of pessimism about the global growth outlook. Resource sector equity prices weakened, against the trend in broader equity market conditions.   Some weakening in the US dollar will have contributed to stronger metal price outcomes.     More...

Portfolio Performance and Positioning
Phase I company results, reflecting scope for discovery driven returns, continue to produce relatively strong gains.  Phase III stocks, which are the investments most vulnerable to changed macroeconomic conditions via institutional asset allocation decisions, have taken the brunt of the impact from lowered growth expectations.  Phase II stocks, in the process of trying to expand production, cannot generate the discovery surprise of Phase I companies and risk being unable to meet production targets. No changes were made to the portfolio models. Portfolio models remain tilted toward an exposure to Phase I companies trading at historically depressed prices.    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.    
More...

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.

Copyright 2018 PortfolioDirect All Rights Reserved.