Morphic Ethical Equities Fund Ltd. · ASX:MEC
Morphic Ethical Equities Fund — Shareholder Meeting (November 2019)
31 slides from Morphic Ethical Equities Fund's shareholder meeting presentation, Nov 29, 2019
Slide 1: Global Responsible Investors
For personal use only Global Responsible Investors November 2019 1 Global Responsible Investors
Slide 2: For personal use only
For personal use only 2 Global Responsible Investors
Slide 3: Company Results
Company Results Company Performance Dividends For personal use only Year ended Year ended Amount 30 September 2018 30 September 2019 Pre-Tax Operating Profit $ 5.29m $ 1.96m Total Dividend 2019 2 c per share Post-Tax Operating Profit Interim Dividend $ 3.81m $ 1.41m 1 c per share (Payment date: 19 J
Slide 4: AGM Agenda
AGM Agenda For personal use only • Consideration of Financial Statements and Reports • Resolution 1: Remuneration Report • Resolution 2: Re-election of JoAnna Fisher as a Director • Resolution 3: Re-election of Jack Lowenstein as a Director 4 Global Responsible Investors
Slide 5: Financial Statements
Financial Statements For personal use only To receive the Financial Report, Directors’ Report and Auditor’s Report for the Company for the financial year ended 30 September 2019. There is no requirement for shareholders to approve these reports. 5 Global Responsible Investors
Slide 6: 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 September 2019 be adopted.” 6 Global Responsible Investors
Slide 7: Resolution – Re-election of JoAnna Fisher
RESOLUTION 2 – Re-election of JoAnna Fisher For personal use only “That Ms JoAnna Fisher, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution and, being eligible, offers herself for re-election, be re-elected as a director of the Company.” 7 Global Responsible Investors
Slide 8: Resolution – Re-election of Jack Lowenstein
RESOLUTION 3 – Re-election of Jack Lowenstein For personal use only “That Mr Jack Lowenstein, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution and, being eligible, offers himself for re-election, be re-elected as a director of the Company.” 8 Global Responsible Inves
Slide 9: For personal use only
For personal use only 9 Global Responsible Investors
Slide 10: Morphic Asset / Ellerston Capital
Morphic Asset / Ellerston Capital For personal use only HIGHLY SUCCESSFUL, AUSTRALIAN BOUTIQUE INVESTMENT MANAGER • Ellerston Capital (ECL) acquired Morphic Asset WELL-ESTABLISHED Founded in 2004 BUSINESS Over A$5 billion in FUM* Management (MAM) in May 2019 • MAM team moved to ECL offices in June 2
Slide 11: Growth of RI Assets by Region 2014-2018
Growth of RI Assets by Region 2014-2018 For personal use only Compound Growth Per Period Annual Growth Growth Growth Rate 2014 2016 2018 2014-2016 2016-2018 2014-2018 Europe € 9,885 € 11,045 € 12,306 12% 11% 6% United States $ 6,572 $ 8,723 $ 11,995 33% 38% 16% Canada (in CAD) $ 1,011 $ 1,505 $ 2,13
Slide 12: The explosion of interest for Responsible Investing
The explosion of interest for Responsible Investing $1.4 tn For personal use only climate-aligned bond universe8 $866 bn 85% 34% FUM in of S&P500 Companies Publish Global FUM Australia1 Sustainability Growth 2016- 20181 Reports5 50% p.a. FUM 1,900 $30.7 tn growth in Australia /NZ1 PRI Signatories gl
Slide 13: Responsible Investing styles
Responsible Investing styles For personal use only Environment Social Traditional Thematic “Sustainable” Governance (ESG) Impact Investing Philanthropy Ethical Investing Investing Investing Funding for direct and Impact-only: “Defined by what we Focussed on ESG risks Focussed on areas measurable soc
Slide 14: Our approach to Responsible Investing
Our approach to Responsible Investing “Negative Screen” excludes buying shares in: For personal use only Tobacco Intensive animal Oil & gas Coal & Uranium Gambling Rain forest & old Armaments & alcohol farming & aquaculture Mining growth logging We seek out “positive” investments that support: Water
Slide 15: Morphic received top rating in Australasia for Responsible Investing
Morphic received top rating in Australasia for Responsible Investing For personal use only Source: PRI 2019 Assessment Report for Morphic 15 Global Responsible Investors
Slide 16: For personal use only
For personal use only FIRST DONATION FROM MANAGING THE TRIUM TO YOUTH MENTAL HEALTH TO AUSTRALIAN BIODIVERSITY MORPHIC ESG L/S FUND Rainforest Alliance 16 16 Global Responsible Investors
Slide 17: For personal use only
For personal use only 17 Global Responsible Investors
Slide 18: Portfolio positioning
Portfolio positioning As at October 2019 by country, sector and stock For personal use only Stocks (Shorts) Theme Region Weighting Service Corp US Deathcare North America 5.1% Alstom Global Rail Equipment Europe 5.0% Qantas Australian Airline Asia Pacific (3.6%) Bank Leumi Israeli Bank Middle East 3
Slide 19: The Big Train that will: Alstom (France)
The Big Train that will: Alstom (France) Alstom share price performance For personal use only EUR, January 2015 – October 2019 Alstom (ALO) 50 Alstom share price Morphic ownership World leader in train technology. Cheaply priced for its growth prospects. Pioneer of hydrogen fuel-powered, zero-
Slide 20: When Investor Engagement Bears Fruit: Panalpina (Switzerland)
When Investor Engagement Bears Fruit: Panalpina (Switzerland) Panalpina share price performance For personal use only CHF, March 2018 - September 2019 Panalpina (PWTN SW) Global logistics provider with low margins but 240 Panalpina share price Morphic ownership improving performance. 220 Non-ind
Slide 21: Prada's Devilish Governance Is Out Of Fashion
Prada’s Devilish Governance Is Out Of Fashion Kering and Prada share price performance For personal use only USD, November 2017 - October 2019 Kering (KER FP) 650 Kering Share Price (LHS) Prada Share Price (RHS) 7.0 Morphic Ownership Morphic Short Ownership Strong, well managed Gucci brand 600 6.0
Slide 22: 2019 Thus far – Markets rebound but Asia lags
2019 Thus far – Markets rebound but Asia lags For personal use only Markets returns by region USD, January 2019 – 25 November 2019 30.0% 25.3% 25.0% Asian Equities fail to bounce back 20.1% 20.1% 20.0% 18.5% 14.8% 15.0% 9.1% 9.7% 10.0% 5.0% 0.0% MSCI Emerging MSCI Asia Ex MSCI Japan MSCI Australia M
Slide 23: Outlook – Updates on July Anti-predictions
Outlook – Updates on July Anti-predictions For personal use only Anti-Predictions How are we going? Status As at 1 July 2019 As at 25 November 2019 The Federal Reserve will NOT cut interest The Federal Reserve cut interest rates in October rates three times (or 75bps) in 2019 for the third time this
Slide 24: For personal use only
For personal use only 24 Global Responsible Investors
Slide 25: Morphic Global Opportunities Fund
Morphic Global Opportunities Fund 2018 Finalist “Best Global Equity Fund of the Year” For personal use only • Objectives Morphic Global Opportunities Fund Performance of $10,000** o Outperform the Index in Australian dollars over rolling three year AUD, Aug 2012 – Oct 2019 o Preserve capital in fall
Slide 26: Morphic Ethical Equities Fund Update
Morphic Ethical Equities Fund (ASX: MEC) Update 2018 Finalist “New Fund of the Year” For personal use only MEC Share Price vs NTA1 AUD, weekly, April 2017 – 21 November 2019 MEC Performance2 As at October 2019 Pre-tax per share Share Price 1.20 1 Month 3 Months 6 Months CYTD ITD (p.a.) $1.1652 1.15
Slide 27: For personal use only
For personal use only 27 Global Responsible Investors
Slide 28: For personal use only
For personal use only 28 Global Responsible Investors
Slide 29: Portfolio positioning
Portfolio positioning As at October 2019 by country, sector and stock By Region By Sector For personal use only Information Technology 18.79% North America 55.48% Financials 18.37% Western Europe 20.38% Consumer Discretionary 15.98% Industrials 11.68% Asia Pacific 15.83% Health Care 11.37% Africa /
Slide 30: For personal use only
For personal use only 30 Global Responsible Investors
Slide 31: Morphic Asset Management
Morphic Asset Management Level 11, 179 Elizabeth St For further enquiries: Sydney 2000 For personal use only New South Wales Irene Kardasis Australia Marketing and IR Manager Phone:+612 9021 7726 Email: ikardasis@morphicasset.com Disclaimer: Unless specifically indicated, this presentation is for in
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