26 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
Monetary policy and trade policy intersected in an unexpected manner on Friday solidifying the chances of further rate cuts in the month ahead (in the absence of a dramatic reversal in approach to trade policy by either the US or Chinese sides).    A swing towards safety characterised the week with investors seemingly ready to entrust their cash to governments without any compensation for risk. The gold price continued to track bond prices higher. The copper price once again appeared unresponsive to growing fears elsewhere about a global growth slowdown. Against the trend in the headline sector indices, prices of exploration stocks pushed higher.      More...

Portfolio Performance and Positioning
Phase I stock returns ran ahead of those for both Phase II and Phase III companies as companies in the latter development stages were more likely to suffer directly from the emerging global slowdown in growth.  Phase I stocks were also displaying stronger leverage to higher gold prices as a result of having experienced unprecedentedly low share prices. 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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