23 December 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 equity benchmarks hit new records as confidence about the growth outlook gained ground.  Market volatility measures subsided after a brief flurry in prior weeks adding to signs that investors had become less worried about the outlook.  Government bond yields edged higher even as high yield corporate yields fell in further signs of ebbing pessimism about the growth outlook. The main sector equity benchmarks are now at the highest levels for several months.  Prices of mining commodities were generally higher although few look like finishing the year higher than they had been at the end of 2018.     More...

Portfolio Performance and Positioning
Phase III stocks once again ran ahead of the rest of the sector as they took their lead from broader equity market conditions reflective of greater optimisms about global growth conditions. Earlier stage companies are yet to benefit from any market re-pricing.  No changes have been made to portfolio models which remain biased to the Phase I stock category.  Phase I stocks are likely to show less leverage to any cyclical weakness than they have done in past cycles since they are starting from already historically depressed price levels and greater leverage to a sustained improvement in sentiment toward the sector which would accompany stronger global growth.     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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