Author: openjargon

The Fortescue Ltd (ASX: FMG) share price has dropped over 6% in the past week, as shown on the chart below. Market sentiment about the ASX iron ore share is usually influenced by the commodity price, which appears to be the cause right now.

Demand for iron ore is largely driven by China because of how much of the commodity the Asian superpower purchases. When demand in China weakens, it can lead to a decline for the iron ore price.

The most recent data from China has not been encouraging.

Weak Chinese demand

According to reporting by The Australian, Singapore iron ore futures dropped 3.5% to a near six-week low of US$111.45 per tonne after China’s monthly manufacturing PMI (purchasing managers’ index) for May dropped back to a level that indicates “contraction”, suggesting a weak Chinese outlook.

There has been a rapid decline in iron ore futures; on Thursday, the price reached a three-month high of US$123 per tonne.

The Australian also reported that the value of new home sales in China from the 100 biggest real estate companies showed a 34% year-over-year decline in May. It was also reported that the level of iron ore inventory at China’s ports reached a two-year high.

Chinese officials recently reiterated the country’s stance on continuing to control crude steel output in 2024, according to reporting by Mining.com. China is aiming to reduce its level of carbon dioxide emissions by 1% compared to 2023’s national total.

China is planning to strengthen its control over steel output and capacity. Analysts from Sinosteel Futures were quoted by Mining.com, who said:

It remains unclear whether steel output this year will be flat on year or be lowered; such details are worth monitoring further.

Is there any positivity for the iron ore price and Fortescue shares?

Some analysts are optimistic about where the iron ore price can go from here.

Global bank HSBC‘s chief economist Paul Bloxham believes there could be a surge in demand that will support the iron ore price and keep it relatively high for the next 12 months, according to reporting by the ABC.

Bloxham suggests the iron ore ice will average US$105 per tonne in 2025, which is stronger than what other analysts are forecasting. Goldman Sachs thinks it could be US$95 per tonne in 2025.

While there is weakness in the Chinese real estate market, HSBC suggests an increase in renewable energy manufacturing in China and globally can compensate for any shortfall. The US Inflation Reduction Act funding could indirectly help boost iron ore demand. Bloxham said:

It’s a big policy measure there that has been taken to support investing in capacity to make the energy transition.

It’s happening in Europe, it’s happening in Japan. Australia of course has followed as well to support our energy transition.

That’s driving a lot of the demand for the increase in the products that go into electric vehicles, solar panels, batteries, and wind farm equipment.

Fortescue share price

When the iron ore price falls, Fortescue receives less revenue for the same amount of production but pays the same amount for the mining costs. This hurts its net profit after tax (NPAT).

That’s why a lower iron ore price is bad news for the Fortescue share price, which is down 15% since the start of 2024.

The post Down 6% in a week. Are Fortescue shares carrying an iron anchor? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Forget Fortescue and buy this ASX mining stock now
• Buy, hold, or sell: What is Bell Potter saying about Fortescue shares?
• Why these 3 top ASX 300 stocks dragged the benchmark lower this week
• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today

Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are wanting to grow your wealth, then the share market and ASX shares could be the way to do it.

That’s because thanks to the power of compounding, a single investment has the potential to grow materially in value.

But how could you turn $10,000 into $100,000 with ASX shares? Let’s take a look and see.

Growing your wealth with ASX shares

As I mentioned above, compounding is your best friend when it comes to investing.

It is what happens when you generate returns on top of returns. It essentially supercharges your returns the longer you leave it.

For example, historically, the share market has delivered an average total return of 10% per annum.

There’s no guarantee that this will happen again in the future, but I think it is reasonable to base our assumptions on this level of return for the purpose of this exercise.

If you were to invest $10,000 into ASX shares and generated a 10% return per annum, your investment would become $11,000 after one year and then approximately $26,000 after 10 years.

You’re still only a quarter of the way there. So, let’s keep going and let compounding do its thing.

If we fast forward another 10 years, your investment would have grown to just over $67,000 if it continued to compound by 10% per annum.

You’re now getting very close to your goal. In fact, with compounding now going into overdrive, it would take just a touch over four more years for your portfolio of ASX shares to become worth $100,000.

All in all, that’s approximately 24 years of investing to reach your goal.

Getting there quicker

If you can beat the market, which is no easy feat, you could get there sooner.

For example, a $10,000 investment in ASX shares that compounds by 13% per annum would get to $100,000 in 19 years.

But how can you beat the market? Well, one person that has beaten the market consistently since the 1960s is Warren Buffett.

His penchant for buying high quality companies with sustainable competitive advantages and fair valuations has been one of the keys to his success.

And the good news for Aussie investors is that the VanEck Morningstar Wide Moat ETF (ASX: MOAT) has been designed to allow investors to invest their hard-earned money into the type of shares that Buffett would buy.

Over the last 10 years, the index the fund tracks has generated a market-beating return of 17.06% per annum. This would have turned a $10,000 investment into $48,000. Clearly it pays to follow Buffett’s investment style.

The post How to turn $10,000 into $100,000 with ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX ETFs to buy in June
• How I’d aim to turn $20,000 invested in ASX shares into passive income of $1,200 a month!
• Buy and hold these ASX ETFs for 10 years
• Warren Buffett’s sister uses this simple method for passive income without dividends
• I’d invest $10,000 into these excellent ASX shares for the long term

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The average dividend yield on the Australian share market usually sits at around 4%.

While this is a nice yield, income investors don’t have to settle for it. Not when there are some high quality ASX dividend stocks out there with notably better forecast yields.

Let’s take a look at three that are expected to provide dividend yields greater than 5% this year and next:

Rio Tinto Ltd (ASX: RIO)

If you’re not averse to investing in the mining sector, then Rio Tinto could be worth considering.

Goldman Sachs is feeling very positive about the mining giant and has a buy rating and $138.90 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of US$4.29 (A$6.42) in FY 2024 and then US$4.55 (A$6.81) in FY 2025. Based on the latest Rio Tinto share price of $128.52, this will mean yields of approximately 5% and 5.3%, respectively.

Telstra Group Ltd (ASX: TLS)

Goldman Sachs also thinks that income investors should consider buying Telstra shares while they are down.

Although the broker was quite disappointed with its recent trading update, it still sees significant value in the telco giant’s shares at current levels and is forecasting some attractive yields from its shares in the coming years.

Goldman currently has a buy rating and $4.25 price target on the ASX dividend stock.

As for income, its analysts are now expecting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.47, this equates to dividend yields of 5.2% and 5.3%, respectively.

Transurban Group (ASX: TCL)

A third ASX dividend stock that could be a buy this month according to analysts is Transurban. It manages and develops urban toll road networks in Australia and the United States. In Australia, this includes the Cross City Tunnel, the Eastern Distributor, and Westlink M7.

Citi is a fan of the company and currently has a buy rating and $15.50 price target on its shares.

As well as plenty of upside, its analysts are expecting some great yields from its shares in the coming years. For example, the broker is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.59, this will mean dividend yields of 5% and 5.2%, respectively.

The post Buy Rio Tinto and these ASX dividend stocks for 5%+ yields appeared first on The Motley Fool Australia.

More reading

• Should you buy this defensive ASX 200 stock on a pullback?
• Rio Tinto shares marching higher amid an ‘exciting new chapter’ for production
• Here is the earnings forecast through to 2026 for Telstra shares
• How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now
• How UBS expects Telstra shares to gain 27% and deliver dividend growth

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you wanting to add some ASX 200 growth shares to your portfolio this month?

If you are, then it could be well worth checking out the four buy-rated options listed below. Here’s what you need to know about these high quality stocks:

NextDC Ltd (ASX: NXT)

Goldman Sachs thinks that NextDC is an ASX 200 growth share to buy. It is one of the region’s leading colocation service providers from its growing collection of world-class data centres.

It likes the company due to “the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets.”

Goldman currently has a buy rating and $18.59 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX 200 growth share that could be a buy in June is ResMed. It is a sleep treatment-focused medical device company with an industry-leading portfolio of hardware and software solutions.

It has been tipped to grow strongly over the long term. This is thanks largely to the quality of its products and huge market opportunity. In respect to the latter, management estimates that there are 1 billion people impacted by sleep apnoea worldwide. However, only ~20% of these sufferers are believed to have been diagnosed.

Macquarie is bullish on ResMed and has an outperform rating and $34.85 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX 200 growth share that could be a buy is Treasury Wine. It is one of the world’s largest wine companies and the owner of a collection of very popular brands. The jewel in the crown is of course Penfolds.

Morgans rates the wine giant highly and believes its recent US acquisition could prove to be a great addition. It notes that the addition of DAOU Vineyards “is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio.”

The broker currently has an add rating and $14.03 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX 200 growth share that could be a buy in June is Xero. It is a cloud accounting platform provider with ~4.16 million subscribers globally.

But if you thought this number was close to peaking, think again. Management estimates that its addressable market is 45 million subscribers, which means it has only captured a small slice of its market so far.

Goldman Sachs thinks its market opportunity could be even larger. Its analysts “see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.”

The broker has a buy rating and $164.00 price target on Xero’s shares.

The post 4 high quality ASX 200 growth shares to buy in June appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• $20,000 invested in these ASX 200 shares 10 years ago is now worth… (a lot!)
• Here’s how the ASX 200 market sectors stacked up last week
• Growth spurt: 2 ASX growth shares set to skyrocket
• Brokers name 3 ASX shares to buy now

Motley Fool contributor James Mickleboro has positions in Nextdc, ResMed, Treasury Wine Estates, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, ResMed, and Xero. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX share Adairs Ltd (ASX: ADH) paid its shareholders big dividends before inflation hit the Australian economy, and the Commsec forecast implies sizeable dividends could be on their way again.

A leading retailer of homewares in Australia, Adairs also sells furniture through its Mocka and Focus on Furniture businesses.

The ASX share may not seem like an obvious candidate for sizeable passive income, but there are a couple of important factors to focus on. The first mention goes to the company’s now very low price.

Extremely low valuation

Two inputs decide what a company’s dividend yield will be. There’s the dividend payout ratio – how much of its annual profit it pays to shareholders. There’s also the price/earnings (P/E) ratio – the multiple of earnings the business trades at.

ASX retail shares typically trade on a lower earnings multiple than some other sectors, such as technology. However, Adairs is on a particularly low P/E ratio.

According to Commsec’s estimates, Adairs shares are valued at just 9x FY24’s estimated earnings and around 6x FY26’s estimated earnings. As a comparison, the JB Hi-Fi Ltd (ASX: JBH) share price is valued at 15x FY24’s estimated earnings and just under 15x FY26’s estimated earnings, according to Commsec.

It’s understandable that investors are somewhat nervous about discretionary retailers at the moment because of the cost-of-living difficulties for households. Based on the RBA’s latest comments, interest rates appear likely to stay higher for longer, which may prolong the pain for some consumers.

Big dividend yield tipped

Adairs’ board has shown a willingness over the years to reward shareholders with a pleasing level of investment income.

As the chart below shows, the Adairs share price has fallen by around a third since 27 March 2024 and by around 60% since June 2021. A lower share price can raise the potential dividend yield.

The estimate on Commsec suggests that Adairs could pay a dividend per share of 10.8 cents in FY24 and 19.8 cents in FY26. That could translate into a grossed-up dividend yield of around 9% in FY24 and more than 16% in FY26.

Foolish takeaway

Despite the uncertainty of the current economic environment, Adairs could be a compelling investment because it is working on several profit improvement initiatives.

For example, the company’s transition to operating a new national distribution centre is improving its service and cost per unit dispatched. Adairs is also focused on managing its overall costs to return to an earnings before interest and tax (EBIT) margin of more than 10%.

In addition, the ASX share is looking to open additional upsized Adairs stores, close some smaller ones, open more Focus on Furniture Stores and keep improving Mocka’s inventory, margins and costs.

The post This ASX share is projected to pay a huge yield of 16% in 2026! appeared first on The Motley Fool Australia.

More reading

• What are 3 of the safest ASX consumer discretionary shares in Australia right now?
• ASX retail shares mixed amid modest April sales growth
• 2 ASX retail shares just upgraded by brokers (and 1 downgraded)
• Dump ’em! Top broker says sell these 3 ASX retail shares
• Here’s how the ASX 200 market sectors stacked up last week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s never too early, or too late, to think about how adding to your superannuation might improve your retirement goals.

For the purposes of this article, we’ll look at what putting an extra $10,000 into superannuation in 2024 could be worth when the time comes to hang up your hat and kick up your feet.

Now, much of that is going to depend on your current age. And we’ll work with the assumption that you were born from 1957 onwards, meaning you’ll be 67 before you retire.

Depending on your super balance at that stage, you may be eligible for a full pension, part pension, or none at all, providing you’ve managed to grow your retirement nest egg to a sustainable size.

We won’t make any assumptions here about how large your overall superannuation pool will be at retirement. We’ll just look at the potential benefits off adding in that extra $10,000 this year.

How much could this help your final superannuation balance?

Now, aside from how much time you’ve got left before retirement, there’s another big variable at play here.

Namely, the kind of returns you can expect from your superannuation fund.

For a better idea of that, we turn to KPMG’s Super Insights 2024 report.

According to the report, “With global financial market growth, Australian superannuation funds posted strong investment returns. Average returns were 8.62% for the year FY 2023.”

This saw the total super assets under management in Australia grow to more than $3.5 trillion.

And the good news is that management fees, which can take a big bite out of your final nest egg, have been coming down.

According to KPMG, “Amid strong competition between super funds to attract and retain members, average fees continue to decline.” A positive trend the report says is likely to continue.

I should note, however, that the strong FY 2023 result came after most super funds posted losses in FY 2022.

Taking a longer-term perspective, the average return of Australian superannuation funds over the past 20 years sits at around 6.5%.

So, working with the 6.5% annual returns, if you were to add $10,000 to your superannuation in 2024 and aimed to retire in 10 years, that extra investment would be worth $19,122.

That’s already almost double in just 10 years.

However, by tapping into the magic of compounding, younger workers could do far better.

If you’re 47 and looking to retire in 20 years, that same $10,000 could balloon into $36,564.

And if you’re 27 and not aiming to retire for 40 years, adding $10,000 to your superannuation balance in 2024 could give you an extra $133,696 to enjoy in your golden years.

The post What an extra $10,000 of superannuation in 2024 could be worth in retirement appeared first on The Motley Fool Australia.

More reading

• 4 high quality ASX 200 growth shares to buy in June
• This ASX share is projected to pay a huge yield of 16% in 2026!
• Why Qantas could be one the best shares to buy in the Asia-Pacific
• Would I be crazy to buy Coles shares at $16?
• I think this excellent ASX ETF ticks all the boxes

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Limited (ASX: QAN) shares could not only be one of the best options for investors in Australia, but also in the whole Asia-Pacific region.

That’s the view of analysts at Goldman Sachs, which have just added the airline operator’s shares to their highly coveted Asia-Pacific conviction list. These are the most compelling investment opportunities in the region according to the investment bank’s analysts.

And with only three other ASX shares making the list of 29, Qantas shares are in rarefied company.

What is the broker saying about Qantas shares?

The Flying Kangaroo has joined the likes of Lynas Rare Earths Ltd (ASX: LYC), Woolworths Group Ltd (ASX: WOW), and Xero Ltd (ASX: XRO), as well as Taiwan Semiconductor Manufacturing (NYSE: TSM) and Hyundai Motor Co, on the list after Goldman’s analyst, Niraj Shah, predicted that its valuation gap with peers would soon close.

Commenting on Shah’s bullish view on the airline, the broker said:

Niraj expects sustainably improved earnings capacity relative to pre-COVID, which is not reflected in Qantas’ current valuation. He believes market concerns around: 1) investment in fleet renewal and customer experience, and 2) willingness to return capital to shareholders, is reflected in Qantas trading on 6.4x FY25E P/E versus regional/US peers trading on 9.1x, a discount of 29%. This is more than 2x below the historical 5Y average discount of 14%. Niraj expects this gap to narrow as QAN delivers earnings that are sustainably above pre-COVID levels and demonstrates ability/willingness to distribute capital to shareholders while renewing the fleet.

Goldman’s analyst believes that earnings in FY 2024 will be up significantly on pre-COVID times and, importantly, be sustainable at these levels. The broker adds:

With capacity expected to be ~95% of pre-COVID levels in FY24E, Niraj forecasts group EPS of A$0.85, materially ahead of A$0.57 in FY19A, underpinned by the A$1bn cost out program implemented by the business during COVID and, importantly, he believes this is a sustainable reset, with an EPS forecast of A$0.96 in FY25E despite a 4% yoy decline in unit revenue.

In light of this, Goldman has put a conviction buy rating and $8.05 price target on Qantas’ shares. Based on its current share price of $6.10, this implies potential upside of 32% for investors over the next 12 months.

And with Goldman expecting a 4.9% dividend yield in FY 2025, there’s potential for some dividend income to come the way of shareholders by this time next year.

The post Why Qantas could be one the best shares to buy in the Asia-Pacific appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 shares are still cheap! Here’s one to consider buying now
• Top ASX shares to buy in June 2024
• Brokers name 3 ASX shares to buy now
• Qantas shares maintain altitude amid ‘historic’ $5 billion deal

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Taiwan Semiconductor Manufacturing, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Coles Group Ltd (ASX: COL) share price has outperformed Woolworths Group Ltd (ASX:  WOW) over the past 12 months. Coles shares have fallen 8%, whereas Woolworths shares have dropped by 17% during the same period. At the time of writing, the Coles share price is trading at $16.56.

Both consumer staple stocks have underperformed the S&P/ASX 200 Index (ASX: XJO), which is up 8.6% over the past year. The retail sector has been hit hard by weak consumer sentiment due to rising energy costs, rents, and other necessity prices. 

With this challenging business environment and Coles’s share price outperformance compared to Woolworths, investors may be wondering whether now is the right time to invest in Coles shares.

Business growth outpaces rival Woolworths

Despite the weak consumer sentiment affecting both supermarket giants, Coles has outpaced Woolworths in the supermarket sector. In the March quarter, Coles achieved a 5.1% growth in supermarket sales, compared to Woolworths’ 1.5% growth. 

Coles benefitted from a successful promotion campaign, but CEO Leah Weckert believes the success goes beyond promotions. Weckert highlighted in the third quarter sales update:

We have delivered another solid sales result across our supermarkets this quarter reflecting strong execution of our trade plans and our continued focus on delivering great value and great quality alongside improved availability.

We have also seen a meaningful increase in customers interacting with our digital platforms and loyalty programs which is allowing us to engage on a more personalised basis with these customers.

Coles has implemented advanced technology such as Smart Gates to prevent theft, which was an issue last year. Additionally, Coles’ online supermarket sales have increased significantly, rising 35% year-over-year in the March quarter, bringing online sales penetration to 9.3%.

How cheap are Coles shares compared to peers?

Coles shares are trading at 19 times FY24’s estimated earnings. This compares with its past trading range of 17 to 25 times since being re-listed on the ASX in January 2019. 

Comparing Coles to its competitors based on earnings estimates provided by S&P Capital IQ:

• The Woolworths share price is valued at 22x FY24’s estimated earnings.
• Wesfarmers Ltd (ASX: WES) share price is valued at 26x FY24’s estimated earnings.
• IGA owner Metcash Ltd (ASX: MTS) share price is valued at 13x FY24’s estimated earnings.

Foolish takeaway

A price-to-earnings ratio (P/E) of 19 might appear high, given Coles’ single-digit earnings growth.

With that said, Coles offers high earnings visibility and predictability as a key player in the essential grocery market. The company generates strong cash flows, which support its dividend payments.

Coles shares are cheaper than some of its rivals and its own historical trading range. This is based on forward P/E ratios and currently a dividend yield of 3.3% using actual dividend payments over the last 12 months.

Considering all the factors mentioned, Cole shares could be a worthwhile investment for dividend-focused investors.

The post Would I be crazy to buy Coles shares at $16? appeared first on The Motley Fool Australia.

More reading

• About to retire? I’d buy these ASX dividend shares for income
• Forget NAB and buy these ASX dividend shares
• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• 2 ASX dividend shares that are coiled springs for a lifetime of passive income

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Wesfarmers. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.