Morphic Ethical Equities Fund Ltd. · ASX:MEC
Morphic Ethical Equities Fund — Shareholder Meeting (November 2022)
35 slides from Morphic Ethical Equities Fund's shareholder meeting presentation, Nov 8, 2022
Slide 1: AGM Chairman's Address and Presentation
ASX: MEC 8 November 2022 For personal use only Market Announcements Platform Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 AGM Chairman’s Address and Presentation Please find attached the following documents to be delivered at MEC’s AGM today: - Chairman’s address; and - AGM Presen
Slide 2: 2022 Annual General Meeting – Chairman's Address
2022 ANNUAL GENERAL MEETING – CHAIRMAN’S ADDRESS For personal use only (Slide 1) Good morning ladies and gentlemen. On behalf of the Board, I would like to welcome all Morphic Ethical Equities Fund shareholders, invited guests and other visitors to our 2022 Annual General Meeting. My name is JoAnna
Slide 3: Chairman's Address (continued)
Also present with us is our auditor for the 2022 financial year, Ms Rita Da Silva from Ernst & Young. Rita is available to take questions relevant to the conduct of the audit and the preparation and content of the Independent Audit Report. For personal use only Richard Powell, representative of MEC'
Slide 4: Chairman's Address: questions and voting
into the chat box and press ‘Send’. To ask a verbal question, follow the instructions on the virtual meeting platform. Please note that while you can submit questions from now on, I will not address them For personal use only until the relevant time in the meeting. Please also note that your questio
Slide 5: Chairman's Address: proxies and results
will vote in favour of the resolution to the extent permitted. During the meeting we will display on the presentation slides the number of direct and proxy votes received prior to the meeting. For personal use only If you are a proxy, you must direct your votes according to the instructions received
Slide 6: Profit reserve, dividends and resolutions
As at 30 June 2022, the Company’s profit reserve was 39.0 cents per share, before the payment of the fully franked dividend of 1.5 cents per share. After the payment of the fully franked dividend, the profit reserve balance of 37.5 cents per share represents over For personal use only 6 years of div
Slide 7: Remuneration Report resolution script
If there are no questions, or after questions have been dealt with: As there are no (further) questions we shall move to the next item of business. For personal use only RESOLUTION 1 - REMUNERATION REPORT (Slide 8) The next item of business, Resolution 1, is the Adoption of the Remuneration Report.
Slide 8: Election of director script
(Slide 9) The next item of business to consider and if thought fit to pass the following resolution The Board of directors has recommended Ms. Kirstin Hunter be elected as director of the For personal use only Company. The directors recommend that shareholders vote in favour of Resolution 2 I will n
Slide 9: Questions, close and portfolio update handover
(Slide 12) I will now allow an opportunity for questions in relation to the management and/or general business of the company. We will give shareholders a minute to enter any questions. Any portfolio related questions will be addressed by Bill in his For personal use only presentation following this
Slide 10: Morphic Asset Management – November 2022
For personal use only Morphic Asset Management Global Responsible Investors November 2022 1 Global Responsible Investors
Slide 11: AGM Agenda
AGM Agenda For personal use only • Consideration of Financial Statements and Reports • Resolution 1: Remuneration Report • Resolution 2: Election of Kirstin Hunter as a Director • Portfolio Update 2 Global Responsible Investors
Slide 12: Morphic Ethical Equities Fund AGM
For personal use only Morphic ethical equities fund AGM 3 Global Responsible Investors
Slide 13: Online Attendees – Question Process
Online Attendees – Question Process For personal use only To ask a question select the ‘Q & A’ icon and choose the topic your question relates to. Type your question into the chat box at the bottom of the screen and press send. To ask a verbal question, follow the instructions on the virtual meeting
Slide 14: Online Attendees – Voting Process
Online Attendees – Voting Process For personal use only When the Chair declares the poll open, select the ‘Vote’ icon and the voting options will appear on screen To vote, select your voting direction. A tick will appear to confirm receipt of your vote. To change your vote, select ‘Click here to cha
Slide 15: Company Results
Company Results Company Performance Dividends For personal use only Amount Year ended 9 months to 30 September 2021 30 June 2022** Total Dividend CY22 6¢ per share Pre-Tax Operating $ 19.8m -$ 16.2m Profit/Loss 16 March 2022 1.5¢ per share Post-Tax Operating Profit/Loss $ 13.9m -$ 11.3m 6 June 2022
Slide 16: Financial Statements
Financial Statements For personal use only To receive and consider the Financial Report, Directors’ Report and Auditor’s Report for the Company for the financial year ended 30 June 2022. There is no requirement for shareholders to approve these reports. 7 Global Responsible Investors
Slide 17: Resolution – Remuneration Report
RESOLUTION 1 – Remuneration Report For personal use only “That the Remuneration Report of the Company (which forms part of the Directors' Report) for the financial year ended 30 June 2022 be adopted.” 8 Global Responsible Investors
Slide 18: Resolution – Election of Kirstin Hunter
RESOLUTION 2 – Election of Kirstin Hunter For personal use only “That Ms. Kirstin Hunter, being eligible, offers herself for election as a director of the Company.” 9 Global Responsible Investors
Slide 19: Voting closed
For personal use only Voting closed 10 Global Responsible Investors
Slide 20: Questions
For personal use only questions 11 Global Responsible Investors
Slide 21: For personal use only
For personal use only Investor Update 12 Global Responsible Investors
Slide 22: Ellerston Global Mid Small Cap Team
Ellerston Global Mid Small Cap Team Ashok Jacob – Chairman For personal use only Dedicated Global Team Bill Pridham Quinn Pierson Kevin Zheng Kelsey Bentley Portfolio Manager Senior Investment Analyst Investment Analyst Investment Analyst (24) (11) (4) (4) • Joined Ellerston in 2015. • Joined Ellers
Slide 23: Global Mid Small Caps in Context
Global Mid Small Caps in Context For personal use only THE SIZE OF THE AUSTRALIAN MARKET AND OUR DOMESTIC BIAS CAN OFTEN DISTORT THE PERCEPTION OF SIZE AND RISK What do these Australian companies have in common with: They are roughly the same ‘size’, and yet the Australian equivalents are regarded a
Slide 24: Macro considerations
Macro considerations • Small caps remain at historical lows, time for mean reversion? For personal use only • With valuations below long term averages and cheap versus large caps 15 Global Responsible Investors
Slide 25: Our Philosophy: Connecting to Tomorrow's Returns, Today
Our Philosophy: Connecting to Tomorrow's Returns, Today Concentrated Mid/Small Cap Bias For personal use only Between 20 – 40 global stocks $$$ Sub US$15 billion Absolute Contrarian Benchmark Independent Where the crowd isn’t Post IPO Risk/Reward Asymmetry Embedded Corporate The trade-off between ri
Slide 26: ESG Process: Screen
ESG Process: Screen We exclude investments in companies fundamentally Market Cap>USD 1b For personal use only misaligned with sustainable practices: Liquidity > USD 5m ADTV • Oil & Gas Armaments • Tobacco & Alcohol production GICS Level III – Aerospace & Defense • Gambling Intensive Animal Farming &
Slide 27: Positioning Considerations
Positioning Considerations For personal use only Inflation Concerns Conservative Approach Rising Rates Strong Balance Sheet / Cash Flow Lingering Pandemic Valuation Support Russia/Ukraine Tangible Assets Growth Concerns Build on Conviction 18 Global Responsible Investors
Slide 28: Positioning – Barbell Approach
1 9 Positioning – Barbell Approach Value Secular Growth For personal use only High Growth 19 Global Responsible Investors
Slide 29: Companies doing good
Companies doing good Leading global contract manufacturer driven by key megatrends of electrification and digital health. Owns world’s largest solar tracking business called Nextracker which has c30% global share. For personal use only Largest folding carton manufacturer in the world which designs a
Slide 30: Companies doing good
Companies doing good Largest independent provider of out of hospital infusion services in the US. It provides extraordinary care that changes lives through For personal use only a comprehensive approach to care along every step of the infusion therapy process. Top global testing, inspection and cert
Slide 31: Morphic Ethical Equities Fund Performance
Morphic Ethical Equities Fund Performance MEC Share Price vs NTA1 AUD, weekly, October 2019 – October 2022 For personal use only Dividend - cents per share per calendar year 1.7 5.5 6.0 1.5 1.3 1.1 2.5 0.9 2.0 2.0 Share Price Pre-tax NTA 0.7 2018 2019 2020 2021 2022 Since Portfolio 3 Years Key Facts
Slide 32: ESG In Focus
ESG In Focus For personal use only Sustainable Home Fast Fashion is Renovation about to Slow Down Plastic pandemic Supply Chain Circular Economy Sustainability part II Circular Economy 23 Global Responsible Investors
Slide 33: Questions
For personal use only Questions 24 Global Responsible Investors
Slide 34: Thank You
For personal use only THANK YOU 25 Global Responsible Investors
Slide 35: Morphic Asset Management contact and disclaimer
Morphic Asset Management Level 11, 179 Elizabeth St For further enquiries: Sydney 2000 For personal use only Investor Relations Team New South Wales Phone:+612 9021 7701 Australia Email: info@ellerstoncapital.com Disclaimer: Unless specifically indicated, this presentation is for information purpose
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