Morphic Ethical Equities Fund Ltd. · ASX:MEC

Morphic Ethical Equities Fund — Investor Presentation (April 2020)

14 slides from Morphic Ethical Equities Fund's investor presentation, Apr 28, 2020

  1. Slide 1: Investment Manager's Presentation

    ASX: MEC 28 April 2020 For personal use only Market Announcements Platform Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Investment Manager’s Presentation MEC’s investment manager, Morphic Asset Management Limited, will provide an update on the Fund via a webinar on Wednesday 29 Ap

  2. Slide 2: Global Responsible Investors, April 2020

    For personal use only Global Responsible Investors April 2020 1 Global Responsible Investors

  3. Slide 3: Philosophy: Markets misprice change

    Philosophy: Markets misprice change Illustration of a typical Morphic investment by stage of the change cycle For personal use only Reduce and exit Change ending position through stop losses Buy Internal screens Changes now widely flag opportunity recognised Early “Change creates opportunity” is ado

  4. Slide 4: Morphic's Responsible Investing style

    Morphic’s Responsible Investing style For personal use only Environment Social Traditional Thematic “Sustainable” Governance (ESG) Impact Investing Philanthropy Ethical Investing Investing Investing 2.5% of 100% of the Favour – Engagement management 100% of the portfolio subject to and fees donated

  5. Slide 5: Reflections on the Quarter

    Reflections on the Quarter March was “one of the biggies” But the speed was different this time Some stats on major markets For personal use only  March saw the most consecutive  Markets did the moves of the 1st  Behavior of regions largely played 4% move days since 1928 year of GFC falls in.. 3

  6. Slide 6: Performance Summary – Downside Protection

    Performance Summary – Downside Protection Investment Returns AUD, Net of fees, as at March 2020 For personal use only 1 Month CYTD FYTD 1 Year 5 Years p.a. 1 April – 24 April Morphic Global -6.78% -5.58% 0.46% 3.53% 5.46% 2.19% Opportunities Fund (MGOF) Morphic Ethical Equities -6.31% -4.88% 0.02% 2

  7. Slide 7: Attribution Summary – Not owning Energy helps, but not the whole story

    Attribution Summary – Not owning Energy helps, but not the whole story For personal use only % Average Weight and Total Return MGOF Gross Alpha 3.36% AUD, FYTD 2020 AUD, FYTD 2020 25 25 Sector Total Attribution (Alpha) (%) 20 15 IT 0.98 Financials 0.25 15 5 Consumer Discretionary 0.33 Industrials -0

  8. Slide 8: Ethical Investing hasn't cost performance in this downturn

    Ethical Investing hasn’t cost performance in this downturn YTD relative performance of top quintile ESG-ranked stocks For personal use only (Sustainalytics) vs. the equal-weighted S&P 500 universe – There is a view amongst some investors that ethical investing is a “fairweather friend” – That by not

  9. Slide 9: For personal use only

    For personal use only 8 Global Responsible Investors

  10. Slide 10: New Beginnings: Where to for the investment clock?

    New Beginnings: Where to for the investment clock? Investment theme Investment clock For personal use only • Markets exist in different regimes. Since Morphic’s launch in 2012 we have been Zone 3 Miners, Zone 1 Zone 2 commods Ind commods • After bear markets, regimes often change. Now is Reflationar

  11. Slide 11: Medium Term Investment Themes

    Medium Term Investment Themes # 1 Governments to “pick” winners #2: Travel disrupted for longer than #3 MMT may have arrived early – Buy expected Gold For personal use only  It took 18 months for the US  Once the virus is under control  At some point, it may be 20% of government to launch any fis

  12. Slide 12: Portfolio positioning: Drive the car slower in the "wet"

    Portfolio positioning: Drive the car slower in the “wet” As at March 2020 by country, sector and stock For personal use only Stocks (Shorts) Industry Region Weighting Service Corp Consumer Staples North America 2.5% Tencent Information Technology Asia Pacific 2.3% Keysight Technologies Industrials N

  13. Slide 13: For personal use only

    For personal use only 12 Global Responsible Investors

  14. Slide 14: Morphic Asset Management contact details

    Morphic Asset Management Level 11, 179 Elizabeth St For further enquiries: Sydney 2000 For personal use only New South Wales Irene Kardasis Australia Marketing & IR Manager Phone:+612 9021 7726 Email: ikardasis@morphicasset.com Disclaimer: Unless specifically indicated, this presentation is for info

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