MORPHIC ETHICAL EQUITIES FUND LIMITED — AGM Information 2024

Nov 17, 2024

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Morphic Ethical equities fund limited

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18 November 2024 Annual General Meeting

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Global Responsible Investors

AGM Agenda

• Consideration of Financial Statements and Reports

• Resolution 1: Remuneration Report

• Resolution 2: Re-election of Jack Lowenstein as a Director

• Resolution 3: Approval to increase on-market buy back capacity

• Portfolio Update

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Consideration of Financial Statements and Reports

To receive the Financial Report, Directors’ Report and Auditor’s Report for the Company for the financial year ended 30 June 2024.

There is no requirement for Shareholders to approve these reports

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Company Results

Company Performance Dividend – cents per share per calendar year

	9 months to 30 June 2022**	12 months to 30 June 2023	12 months to 30 June 2024
Pre-Tax Operating Profit/Loss	-$ 16.2m	+$ 10.7m	-$1.2m
Post-Tax Operating Profit/Loss	-$ 11.3m	+$ 7.6m	-$1.0m

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Amount
Total Dividend CYTD 2024 5¢ per share
February 2024 3.5¢ per share
May 2024 1.5¢ per share
Profits reserve 54.86 cents per unit
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Dividend - cents per share per calendar year

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12.0
10.0
10.0
8.0
6.0
5.5
6.0 5.0
4.0 2.5
2.0 2.0
2.0
0.0
2018 2019 2020 2021 2022 2023 CYTD 2024
Past performance is not indicative of future performance.
As at 30 June 2024. ** Reflects 9 months transition period.
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AGM – PROXIES & VOTING
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RESOLUTION 1 –Remuneration Report

“That the Remuneration Report of the Company (which forms part of the Directors' Report) for the financial year ended 30 June 2024 be adopted.”

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RESOLUTION 1- Proxy Voting Results

		Number	%
FOR		7,223,869	94.57
AGAINST		176,071	2.30
OPEN	– Nominated Chair1	28,417	0.37
	– Other Nomination	211,011	2.76
1. To be voted	in favour of the resolution
		7	Global Responsible Investors

RESOLUTION 2 – Re-election of Director

“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.”

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RESOLUTION 2 - Proxy Voting Results

		Number	%
FOR		7,331,112	95.51
AGAINST		105,522	1.37
OPEN	– Nominated Chair1	28,417	0.37
	– Other Nomination	211,011	2.75
1. To be voted	in favour of the resolution
		9	Global Responsible Investors

RESOLUTION 3 – Approval to increase on-market buy back capacity

“That for the purposes of section 257C of the Corporations Act and for all other purposes, approval is given to the Company to buy back up to 7,447,531 Shares on the terms described in the Explanatory Memorandum which accompanied the Notice of Annual General Meeting.”

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RESOLUTION 3 - Proxy Voting Results

		Number	%
FOR		7,386,858	96.21
AGAINST		51,777	0.67
OPEN	– Nominated Chair1	28,417	0.37
	– Other Nomination	211,011	2.75
1. To be voted	in favour of the resolution
		11	Global Responsible Investors

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Voting
closed
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questions
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Thank you
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Morphic / Ellerston Global Mid Small Cap Team Ashok Jacob – Chairman

• Bill Pridham Nick Markiewicz Gaurav Pathak* Deija Li Teng Lin

• Portfolio Manager Co-Portfolio Manager Snr. Investment Analyst Snr. Investment Analyst Investment Analyst (26) (13) (19) (8) (9)

• • Previously an Investment • Previously an Investment • Previously an Equity • Previously an Equity • Previously a Performance, Manager at JGL Investments. Manager at Lanyon Asset Investment Analyst at Nuvest Research Associate at CLSA. Attribution and Data Analyst

• • Holds a Bachelor of Management. Capital. • Holds a Master of within the Ellerston Capital team.

• Commerce from Bond • Holds a Bachelor of • Holds an MBA and Post Commerce from the University and is a CFA Business (Hons), Economics Graduate Diploma in Australian National • Holds a Bachelor of Risk Charterholder. from University of Management (Finance) from University and is a CFA Management from Zhejiang Technology, Sydney. the Indian Institute of Charterholder. University and a Master of Management. Actuarial Studies from Australian National

• *Shared Resource University.

Shared Resource University. Operations Legal and Compliance Dedicated ESG Team*

Ellerston team of 32 investment professionals with an average of 20 years of experience

Source: Ellerston Capital. All team members based in Ellerston’s Sydney office. Numbers in parentheses indicate years of investment experience.

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Global Mid Small Caps in Context

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Source: Factset, MSCI World Index and S&P/ASX200 Index. For illustrative purposes only, not to scale.

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17 Source: Ellerston Capital

Our Philosophy: Connecting to Tomorrow's Returns, Today

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What are our guideposts
Concentrated
Between 20 – 40 global stocks
Mid/Small Cap Bias
< US$20 billion
Absolute
Benchmark Independent
Contrarian
Where the crowd isn’t
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How we differentiate
Spin-Off
Fallen
Embedded
Angels
Optionality
Post Management
IPO Change
Corporate
Restructures
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Risk/Reward Asymmetry

The trade-off between risk and return is improved by investing in the highest conviction ideas from a filtered universe of securities that are in a period of “Price Discovery”.

Source: Ellerston Capital.

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Investment Screening Summary

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Source: Ellerston Capital,[1] Revenue is defined as total consolidated revenue for the company, as per the most recent values disclosed to the market.[2] Investment companies are not involved in the production of tobacco, manufacture of nicotine alternatives and tobacco-based products.

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What We are Looking For?

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Stock attributes we look for

Secular and/or Structural Growth – drives sales

• High or growing market share in large addressable

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Stock attributes we avoid

Companies engaging in harmful activities

Concept stocks

• markets

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• High customer retention and recurring revenue

• Pricing power

Companies that are doing good

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Questionable management

• Disruption candidates

Low growth attributes

Source: Ellerston Capital.

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Global Thematics

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Source: Ellerston Capital.

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Thematic Exposure

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5G & Data GrowthAI & D ta Growth Circular EconomyCircular Economy
5G
Energy Resiliency Net Zero
NET
0
Source: Ellerston Capital as at 31 October 2024.
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Portfolio Holdings

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AtkinsRealis provides consulting, engineering, design and project management services.

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KBR provides solutions for challenges like climate change, national security, energy transition, cybersecurity, and space exploration.

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A leading provider of paperbased packaging solutions including folding cartons, cups and foodservice packaging.

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RadNet is the largest, fixed site, independent diagnostic imaging service provider in U.S.

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Aritzia offers a diverse range of lifestyle apparel through upscale retail locations throughout Canada and the United States, as well as online.

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QXO provides technology solutions, primarily to clients in the manufacturing, distribution and service sectors.

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Itron provides products and services to enable utilities and cities to better manage energy and water.

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Daifuku is the world's leading provider of automated material handling solutions.

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France-based international industrial company specialized in generating and manufacturing high performance semiconductor materials.

Aspen Technology, Inc. is a leading industrial software partner, with more than 60 locations worldwide.

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World leader in laboratory Testing, Inspection and Certification (TIC) services.

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Largest independent owner of mobile tower assets across Europe.

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Provides solutions for records management, data backup and recovery, doc management, secure shredding and data centers.

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Global contract logistics company that manages outsourced supply chains and warehousing for customers in 27 countries.

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TKO Group Holdings, Inc is a premium sports and entertainment company.

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Greatland is a leading mining development and exploration company focussed on precious and base metals.

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Warner Music Group Corp. is a multinational entertainment and record label conglomerate.

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Option Care Health is the largest independent provider of in home infusion services in the US.

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Leading provider of enterprise grade employee benefits and program administration including payroll, health benefits and administering 401ks.

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Core Scientific develops specialized infrastructure, tailored towards the Bitcoin network, digital assets, AI applications.

Source: Ellerston Capital

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Portfolio Holdings

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AerCap is the industry leader across all areas of aviation leasing - aircraft, engines and helicopters.

Curtiss-Wright provides leading edge sensors, controls, sub-systems and mission critical components, as well as critical services and industry-leading valves,

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One of the world’s largest digital infrastructure firms investing across five key digital infrastructure verticals: data centres, macro cell towers, fiber networks, small cells, and edge infrastructure.

Operates in a global duopoly providing mission critical semiconductor testing equipment.

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Global technology firm specialising in the creation and delivery of high-end innovative technologies in Telecom, Building and Industrial Solutions.

LGI Homes constructs high-quality homes and housing developments across the United States.

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Corpay is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner.

OBIC Business Consultants is a developer and manufacturer of solutions for enterprise operations, contributing to their customers’ operational efficiency.

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Resona Holdings is a financial services group focused on retail banking & asset management, corporate banking, and market banking.

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Global leader in CAD and PLM software as well as solutions to unlock the value of IoT.

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Nebius Group develops infrastructure used across AI industries.

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Vivendi is a global leader in culture, entertainment, media and communications. Its businesses include Canal + Group, Lagardère Publishing, Prisma Media and Gameloft.

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GFL Environmental is the only major diversified environmental services company in North America offering services in solid waste management and liquid waste management.

The leading real estate marketplace offering an on-demand experience for selling, buying, renting and financing with transparency and nearly seamless end-to-end service.

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Nexans designs and manufactures cable systems and services, assisting in the global energy transition.

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Sigma Lithium is a global lithium producer with resources based in Brazil.

Source: Ellerston Capital

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	Morphic	Morphic	Morphic	Morphic	Morphic	Morphic	Morphic	Morphic	Morphic	Morphic	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Ethical	Equities	Equities	Equities	Equities	Equities	Equities	Equities	Equities	Equities	Equities	Fund	Fund	Fund	Fund	Fund	Fund	Fund	Performance	Performance	Performance	Performance	Performance	Performance	Performance	Performance	Performance
	MEC Share Price							vs NTA1				AUD, weekly,								October 2019 – October 2024																										Dividend - cents		per share per calendar year
	1.7
	1.5																																													12.0
																					D																															10.0
																																														10.0
	1.1 1.3										D					D						D D				D	D					D		D		D		D		D						6.0 8.0					5.5	6.0	5.0
	0.7 0.9		D					D														Pre-Tax NTA							Share D				Price													0.0 2.0 4.0	2.0	2.0		2.5
																																															2018	2019		2020	2021	2022 2023	2024
	Portfolio Performance						FY24				1	Month					3		Months			CYTD					1 Year					3 Years (p.a.)					5 Years (p.a.)					Since Inception (p.a.)^					Key Facts as at Pre-tax NTA				30 June 2024 $1.0703
	Net						1.12%				3.23%								1.99%			12.27%				23.36%						1.18%					8.05%					7.44%					Share Price					$0.98
	Benchmark*					18.98%					3.54%								2.25%			20.84%				28.36%						10.43%					12.21%					12.28%				Annual Dividend/Dividend Yield						$0.05/5.1%
	Alpha					-17.86%					-0.31%							-0.26%				-8.57%				-5.00%						-9.25%					-4.16%					-4.84%					Profit	Reserve				54.9 cents per unit

Source: Ellerston Capital, ASX, as at 31 October 2024. performance.

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Questions
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THANK YOU
27 Global Responsible Investors
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Morphic Asset Management

Level 11, 179 Elizabeth St

Sydney 2000 New South Wales Australia

For further enquiries:

Investor Relations Team Phone:+612 9021 7701 Email: info@ellerstoncapital.com

Disclaimer: Unless specifically indicated, this presentation is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security by the sender or Morphic Asset Management Pty Ltd (“Morphic”) (ACN 155 937 901) (AFSL 419916). This presentation does not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision. Past performance is no guarantee of future performance. Investment returns have been calculated in accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distribution of income and realised profits. Statements of fact in this presentation have been obtained from and are based upon sources that Morphic believes to be reliable, but Morphic does not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this presentation constitute Morphic's judgement as of the date of this communication and are subject to change without notice.

The Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that Morphic Ethical Equities Fund adheres to the strict disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and Morphic Ethical Equities Fund’s methodology, performance and stock holdings can be found at www.responsibleinvestment.org, together with details about other responsible investment products certified by RIAA.[1]

1 The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.

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