24 June 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
The Federal Reserve succumbed to pressure from financial markets as it all but promised a rate cut in July without having the data to justify such a move. Investors are hopeful that differences over trade policy will be resolved but will most likely be satisfied with nothing more than abandonment of the mutual threats to escalate tariffs.  With further trade restraints out of the way, it is hard to see why the Fed should rush into a sequence of rate cuts, other than as a response to the demands of financial markets to keep stoking a potential asset bubble.   More...

Portfolio Performance and Positioning
The performance divergence between the largest stocks in the sector and the small mine developers and explorers making up the vast bulk of the numbers of companies remained evident in the composition of performance among the selected stocks.  The best performing stocks reflected depressed process and the leverage from historically low levels to even minor changes in conditions. 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.    
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.