Morphic Ethical Equities Fund

Product Name

Morphic Ethical Equities Fund

Issuer

Morphic Asset Management

Category

Investment product

Type

Listed Investment Company

Target

Retail, Wholesale

Certified Since

2017

Certification Symbol

Ethical

Asset Classes

Equities - International markets

Markets

Australia, New Zealand

Investment Approaches

Negative Screening, Positive Screening

It Includes

  • Riaa icons 11 More sustainable companies
  • Riaa icons 10 Renewable energy
  • Riaa icons 12 Healthcare & medical products
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Default selected inclusion No specific inclusions

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 34 Logging
  • Riaa icons 35 Tobacco
  • Riaa icons 50 Nuclear energy (including uranium)
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Default selected exclusion No specific exclusions

Overview

Morphic Ethical Equities Fund Ltd (the Company) has been established to grow investors’ wealth without investing in businesses that harm the environment, people or society. The Company uses a long/short investment strategy to construct a portfolio of ethically screened global securities, designed to provide superior risk-adjusted returns to shareholders.


Description


The Manager seeks to build the Portfolio by applying a “negative screen” that prohibits direct investments in Securities that are issued by entities in the following industries:

–– Armaments;
–– Tobacco and alcohol;
–– Gambling;
–– Coal and Uranium mining;
–– Oil and gas Extraction;
–– Intensive animal farming and aquaculture; or
–– Logging of rainforest or old growth timber.

If the Company has indirect exposure to Excluded Securities by investing in Derivatives (including Exchange Traded Funds), the Company will seek to hedge this indirect exposure using Short sales.

The Manager intends to apply a “positive screen” by investing a minimum of 5% of the Company’s Net Assets in Securities issued by companies which produce products or services that it considers are likely to improve the planet.  

The Company will also use a variety of investment instruments including Derivatives to manage volatility.

The Portfolio will mainly consist of investments constructed using a long and short investment strategy. The investments will be carefully selected by the Manager with a view to their specific attributes and their resonance with the Manager’s broader global economic and market analysis.

Consistent with the Company’s ethical objectives the Portfolio will not include direct investments in Excluded Securities. It may include Short Positions in Excluded Securities.

The Company will invest primarily in global listed Securities and Derivatives. The Company may also invest in cash, unlisted Securities, fixed interest instruments, commodities, credit instruments and currencies. The Equity Exposure limit for each country is based on the size of each relevant market. Similar rules apply to managing Portfolio concentrations in individual sectors. Index futures may be used to hedge overall risk in the portfolio or to amplify returns at sudden market turning points.

Exclusion list is derived from Norges Bank Investment Managers.

Other products certified by the Responsible Investment Association Australasia (RIAA)

Morphic Global Opportunities Fund

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