MORPHIC ETHICAL EQUITIES FUND LIMITED — Interim / Quarterly Report 2021

May 17, 2021

Morphic Ethical Equities Fund Limited Appendix 4D For the half-year ended 31 March 2021

Details of Reporting Period

Current: Half-year ended 31 March 2021 Previous: Half-year ended 31 March 2020

Results for announcement to the market		movement
	$	(up/down)	% movement
Revenue from ordinary activities	12,882,179	up	1883%
Profit from ordinary activities before tax attributable to members	11,928,340	up	662%
Profit from ordinary activities after tax attributable to members	8,368,497	up	675%
Dividend information
	Cents per	Franked	Tax rate for
	share	amount per	franking
		share
2021 Interim dividend (cents per share)	2.5	2.5	30.0%
Interim dividend dates
Ex-dividend date			5-Jul-21
Record date			6-Jul-21
Last election date for the DRP			16-Jul-21
Payment date			29-Jul-21
Date for issue of shares under DRP			29-Jul-21

Dividend Reinvestment Plan

The Dividend Reinvestment Plan (DRP) is in operation and the recommended fully franked interim dividend of 2.5 cent per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded to the nearest whole number) which the cash dividend would purchase at the issue price. The relevant issue price will be the volume weighted average price (VWAP) of shares sold on the ASX (on an ex-dividend basis) five days from the ex-dividend date inclusive of the ex-dividend date.

Net tangible assets

Net tangible assets
	31 March 2021	30 September 2020
Net Tangible Assets (per share) before tax	1.3820	1.1872
Net Tangible Assets (per share) after tax	1.2992	1.1563
Control gained or lost over entities during the half-year

The Company did not gain or lose control over any entities during the half-year.

Detail of associates and joint venture entities

The Company did not have any interests in any associates or joint ventures during the half-year.

Review

This report is based on the financial report which has been reviewed. All the documents comprise the information required by Listing Rule 4.2A.

This information should be read in conjunction with the 30 September 2020 Annual Financial Report.

Signed on behalf of Morphic Ethical Equities Fund Limited.

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JoAnna Fisher Chairman

Sydney 18 May 2021

Morphic Ethical Equities Fund Limited ASX: MEC

ABN 52 617 345 123

Interim Financial Report For the half-year ended 31 March 2021

Morphic Ethical Equities Fund Limited ASX: MEC

ABN 52 617 345 123

Interim Financial Report For the half-year ended 31 March 2021

Contents	Page
Directors' Report	2
Auditor's Independence Declaration	4
Statement of Profit or Loss and Other Comprehensive Income	5
Statement of Financial Position	6
Statement of Changes in Equity	7
Statement of Cash Flows	8
Notes to the Financial Statements	9
Directors' Declaration	14
Independent Review Report to the Members	15
Corporate Directory	17

1

Morphic Ethical Equities Fund Limited Directors' Report For the half-year ended 31 March 2021

Directors' Report

The Directors present their Report together with the Financial Report of Morphic Ethical Equities Fund Limited ("the Company") for the halfyear ended 31 March 2021 (“the Period”).

Information on directors

The following persons were directors of the Company during the half-year and up to the date of this report (unless otherwise indicated):

JoAnna Fisher Independent Chairman Jack Lowenstein Non-Independent Director and Company Secretary Mark Forstmann Independent Director Virginia Malley Independent Director (resigned 4 December 2020) Chad Slater Alternate Director (resigned 19 October 2020)

Principal activity

The Company’s principal activity is investing in global listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol and gambling.

The Company’s investment objectives are to: deliver investors an ethically screened portfolio; generate superior risk adjusted returns; and provide capital growth and consistent income. No change in this activity took place during the half-year or is likely to in the future.

Review of Operations

The portfolio was up 19.46% on a net basis over the Period and outperformed its benchmark by 6.60%. Portfolio performance is announced monthly to the ASX and also available at the manager’s website at www.morphicasset.com/fund-detail-mec.

The Company’s investments during the half-year resulted in operating profit before tax of $11,928,340 (2020: loss $2,124,035) and profit after tax of $8,368,497 (2020: loss $1,454,517). This reflects the performance of the investment portfolio over the Period as outlined below.

Investment Returns Gross Net Returns Over the Period 1 October 2020 to 31 March 2021	Gross Net Returns since inception (pa) 3 May 2017 to 31 March 2021
Investment Portfolio 20.05% 19.46% MSCI All Countries Total Return Daily Index 13.08% 12.86% Outperformance 6.97% 6.60%	11.86% 10.72% 12.66% 12.08% (0.81%) (1.37%)

Gross return is before fees and taxes.

Net return is net of investment management fees, before Company administration costs and taxes.

Past performance is not an indication of future performance.

The Company's Net Tangible Asset Value (NTA) per share at the end of the Period was $1.3820 before tax and $1.2992 after tax.

Dividends Paid or Recommended

On 3 November 2020, the Directors declared a fully franked dividend of 1.5 cents per share which amounted to $793,067 and was paid on 17 December 2020.

Since the end of the half-year, the Directors declared a fully franked interim dividend of 2.5 cents per share on 18 May 2021 to be paid on 29 July 2021.

This increased dividend is consistent with the Company’s policy of paying fully franked dividends to shareholders and raising the dividend over time, provided the Company has distributable profits, franking credits and it is within prudent business practices.

2

Morphic Ethical Equities Fund Limited Directors' Report For the half-year ended 31 March 2021 (continued)

Directors' Report (continued)

Rounding of Amounts to Nearest Dollar

In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest dollar (unless otherwise indicated).

Auditor's Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

Signed in accordance with a resolution of the directors.

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JoAnna Fisher Chairman

Sydney, 18 May 2021

3

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Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000

Postal Address GPO Box 1615 Sydney NSW 2001 p. +61 2 9221 2099

e. sydneypartners@pitcher.com.au

Auditor’s Independence Declaration To the Directors of Morphic Ethical Equities Fund Limited ABN 52 617 345 123

In relation to the independent auditor’s review of Morphic Ethical Equities Fund Limited for the half year ended 31 March 2021, to the best of my knowledge and belief there have been:

• (i) no contraventions of the auditor independence requirements of the Corporations Act 2001 ; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

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S M Whiddett Partner

Pitcher Partners Sydney

18 May 2021

4

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Adelaide Brisbane Melbourne Newcastle Perth Sydney

Pitcher Partners is an association of independent firms. An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

pitcher.com.au

Morphic Ethical Equities Fund Limited Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 March 2021

Statement of Profit or Loss and Other Comprehensive Income

Note Investment income Interest income Dividend income Net gains/(losses) on financial instruments at fair value through profit or loss Net gains on foreign exchange Other income Net investment income/(loss) Expenses Audit and tax Administration, registry and middle office fees Directors' fees Dividends on borrowed stock Interest expense (including on borrowed stock) Management fees Transaction costs Withholding tax expense Other expenses Total expenses Profit/(Loss) for the half-year before income tax expense Income tax expense/(benefit) Profit/(Loss) for the half-year Other comprehensive income Total comprehensive income/(loss) for the half-year Basic earnings/(losses) per share 3 Diluted earnings/(losses) per share 3	Half-year ended Half-year ended 31 March 2021 31 March 2020 $ $ - 3,142 195,015 787,782 12,350,770 (2,115,883) 336,041 602,442 353 10
	12,882,179 (722,507)
	31,050 30,883 60,040 106,483 63,900 70,000 45,537 327,265 15,687 113,652 426,492 396,188 203,193 160,853 26,655 103,938 81,285 92,266
	953,839 1,401,528
	11,928,340 (2,124,035) 3,559,843 (669,518)
	8,368,497 (1,454,517) - -
	8,368,497 (1,454,517)
	15.81 cents (2.76) cents
	15.81 cents (2.76) cents

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the Notes to the Financial Statements which follow.

5

Morphic Ethical Equities Fund Limited Statement of Financial Position As at 31 March 2021

Statement of Financial Position

Note Assets Current assets Cash and cash equivalents 5 Receivables Prepayments Investments 2 Total current assets Non-current assets Deferred tax asset Total non-current assets Total assets Liabilities Current liabilities Borrowings 5 Payables Investments 2 Current tax liability Total current liabilities Non-current liabilities Deferred tax liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 4(a) Accumulated losses Profits reserve Total equity	As at As at 31 March 2021 30 September 2020 $ $ 7,202,750 7,050,184 796,814 2,321,657 85,946 30,486 68,749,999 67,301,664
	76,835,509 76,703,991
	60,921 145,475
	60,921 145,475
	76,896,430 76,849,466
	1,122,105 4,396,274 1,611,460 2,695,608 919,883 6,841,980 1,909,534 814,179
	5,562,982 14,748,041
	2,535,062 964,635
	2,535,062 964,635
	8,098,044 15,712,676
	68,798,386 61,136,790
	55,776,248 55,690,082 (1,302,229) (1,302,229) 14,324,367 6,748,937
	68,798,386 61,136,790

The above Statement of Financial Position should be read in conjunction with the Notes to the Financial Statements which follow.

6

Morphic Ethical Equities Fund Limited Statement of Changes in Equity For the half-year ended 31 March 2021

Statement of Changes in Equity

Statement of Changes in Equity
Note Loss for the half-year Transfer to profits reserve Other comprehensive income Transactions with owners: Shares issued during the half-year 4(a) Dividends provided for or paid 6 Balance at 31 March 2020 Balance at 30 September 2020 Profit for the half-year Transfer to profits reserve Other comprehensive income Transactions with owners: Shares issued during the half-year 4(a) Dividends provided for or paid 6 Balance at 31 March 2021 Balance at 30 September 2019	Issued capital Profits reserve Total equity $ $ $ $ 55,510,102 (1,003,827) 5,073,269 59,579,544 Accumulated losses
	- (1,454,517) - (1,454,517) - (2,731,248) 2,731,248 - - - - - 96,423 - - 96,423 - - (527,285) (527,285) 55,606,525 (5,189,592) 7,277,232 57,694,165
	55,690,082 (1,302,229) 6,748,937 61,136,790
	- 8,368,497 - 8,368,497 - (8,368,497) 8,368,497 - - - - - 86,166 - - 86,166 - - (793,067) (793,067)
	55,776,248 (1,302,229) 14,324,367 68,798,386

The above Statement of Changes in Equity should be read in conjunction with the Notes to the Financial Statements which follow.

7

Morphic Ethical Equities Fund Limited Statement of Cash Flows For the half-year ended 31 March 2021

Statement of Cash Flows

Note Cash flows from operating activities Dividends received Other income received Interest paid Dividends on borrowed stock Management fees paid Directors' fees paid Withholding tax paid Other operating expenses paid Transaction costs paid Income tax paid Net cash outflow from operating activities Cash flows from investing activities Proceeds from sale of investments Payments for purchase of investments Net cash inflow from investing activities Cash flows from financing activities Dividends paid net of dividend reinvestment Cash outflow from financing activities Net increase in cash and cash equivalents Effect of exchange rate fluctuations on cash Cash and cash equivalents at beginning of the half-year Cash and cash equivalents at end of the half-year 5 Non-cash financing activities Ordinary shares issued under dividend reinvestment plan 4(a)	Half-year ended Half-year ended 31 March 2021 31 March 2020 $ $ 187,492 824,700 353 10 (15,687) (122,734) (63,429) (344,536) (413,323) (395,922) (63,900) (70,000) (26,655) (103,939) (235,605) (303,392) (203,193) (160,853) (809,506) -
	(1,643,453) (676,666)
	71,429,201 42,095,047 (65,757,958) (27,154,722)
	5,671,243 14,940,325
	(706,901) (430,862)
	(706,901) (430,862)
	3,320,889 13,832,797 105,846 399,452 2,653,910 (7,872,529)
	6,080,645 6,359,720
	86,166 96,423

The above Statement of Cash Flows should be read in conjunction with the Notes to the Financial Statements which follow.

8

Morphic Ethical Equities Fund Limited Notes to the Financial Statements For the half-year ended 31 March 2021

1. General information and summary of significant accounting policies

Morphic Ethical Equities Fund Limited ("the Company") is a publicly listed company, incorporated and domiciled in Australia. The Company was incorporated with the Australian Securities and Investments Commission ("ASIC") on 13 February 2017. The registered office and principal place of business of the Company is Level 11, 179 Elizabeth Street, Sydney NSW 2000.

These condensed interim financial statements are for the half-year ended 31 March 2021, and were authorised for issue by the Directors on 18 May 2021.

The Company’s principal objectives are to:

• deliver investors an ethically screened portfolio;

· deliver investors superior risk adjusted returns; and

• provide capital growth and consistent income.

The Manager achieves this through a long and short equity strategy focusing on global securities.

The Company primarily invests in global listed securities. It may also invest in cash, unlisted global securities, fixed interest instruments, commodities, credit instruments and currencies through assets, exchange traded funds or other derivatives, including futures, options, forwards and swaps.

A summary of the material accounting policies adopted by the Company in the preparation of the interim financial statements is set out below:

(a) Basis of preparation

These condensed interim financial statements for the half-year ended 31 March 2021 have been prepared in accordance with accounting standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 in Australia. The Company is a for-profit entity for financial reporting purposes under Australian Accounting Standard.

These condensed interim financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the 30 September 2020 annual financial report and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The condensed interim financial statements, except for cash flow information, have been prepared on an accruals basis and are based on historical costs, modified where applicable, by the measurement of fair value of investment assets and liabilities.

The accounting policies adopted are consistent with those applied to the Company's financial statement for the year ended 30 September 2020.

(b) New and revised accounting requirements applicable to the current reporting period

There are no new standards, interpretations or amendments to existing standards that are effective for the first time for the financial period beginning 1 October 2020 that have a material impact on the Company.

(c) New accounting standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published by the AASB that are not mandatory for the interim period ended 31 March 2021 and have not been early adopted by the Company. The directors have considered these standards and interpretations and have concluded that they will not have a material impact on the financial report of the Company.

(d) Rounding amounts

In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest dollar, unless otherwise indicated.

9

Morphic Ethical Equities Fund Limited Notes to the Financial Statements For the half-year ended 31 March 2021 (continued)

2. Fair value measurement

The Company measures and recognises financial assets and liabilities at fair value through profit or loss on a recurring basis.

The Company has no assets or liabilities measured at fair value on a non-recurring basis in the current reporting period.

Fair value hierarchy

AASB 13: Fair value measurement requires disclosure of fair value measurements by level of the fair value hierarchy:

• Level 1 - measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 - measurements based on inputs other than quoted prices included in level 1 that are observable for the asset or liability; and

• Level 3 - measurements based on unobservable inputs from the asset or liability.

(i) Fair value in an active market (level 1)

The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the end of the reporting period without any deduction for estimated future selling costs.

The Fund values its investments and derivatives in accordance with the accounting policies set out in Note 1 to the annual financial statements. For the majority of investments, information provided by independent pricing services is relied upon for valuation of investments.

The quoted market price used to fair value financial assets and financial liabilities held by the Fund is the last-traded prices.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

(ii) Valuation techniques used to derive level 2 and level 3 fair value

The fair value of financial assets and liabilities that are not exchange-traded in an active market is determined using valuation techniques. These include the use of recent arm’s length market transactions, reference to the current fair value of a substantially similar other instrument, discounted cash flow techniques, option pricing models or any other valuation technique that provides a reliable estimate of prices obtained in actual market transactions. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate used is a market rate at the end of the reporting period applicable for an instrument with similar terms and conditions.

For other pricing models, inputs are based on market data at the end of the reporting period. Fair values for unquoted equity investments are estimated, if possible, using applicable price/earnings ratios for similar listed companies adjusted to reflect the specific circumstances of the issuer.

The fair value of derivatives that are not exchange traded is estimated at the amount that the Fund would receive or pay to terminate the contract at the end of the reporting period taking into account current market conditions (volatility and appropriate yield curve) and the current creditworthiness of the counterparties.

Some of the inputs to these models may not be market observable and are therefore estimated based on assumptions.

The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the Fund holds. Valuations are therefore adjusted, where appropriate, to allow for additional factors including liquidity risk and counterparty risk.

The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Fund for similar financial instruments.

The determination of what constitutes ’observable’ requires significant judgment by management. Management consider observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.

10

Morphic Ethical Equities Fund Limited Notes to the Financial Statements For the half-year ended 31 March 2021 (continued)

2. Fair value measurement (continued)

Recognised fair value measurements

The following table presents the Company’s financial assets and liabilities measured and recognised at fair value as at 31 March 2021 and 30 September 2020.

As at 31 March 2021 Financial assets Listed equities Forward currency exchange contracts Financial liabilities Futures Swap contracts Forward currency exchange contracts As at 30 September 2020 Financial assets Listed equities Listed unit trusts Futures Swap contracts Financial liabilities Listed equities Swap contracts Total financial liabilities at fair value through profit or loss Total financial assets at fair value through profit or loss Total financial assets at fair value through profit or loss Total financial liabilities at fair value through profit or loss	Level 1 Level 2 Level 3 Total $ $ $ $ 68,716,974 - - 68,716,974 - 33,025 - 33,025
	68,716,974 33,025 - 68,749,999
	1,505 - - 1,505 - 885,379 - 885,379 - 32,999 - 32,999
	1,505 918,378 - 919,883
	28,573,052 - - 28,573,052 34,216,332 - - 34,216,332 4,083 - - 4,083 - 4,508,197 - 4,508,197
	62,793,467 4,508,197 - 67,301,664
	2,950,212 - - 2,950,212 - 3,891,768 - 3,891,768
	2,950,212 3,891,768 - 6,841,980

(iii) Transfer between levels

Management’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

There were no transfers between levels in the fair value hierarchy at the end of the reporting period.

(iv) Fair value measurements using significant unobservable inputs (level 3)

The Fund did not hold any financial instruments with fair value measurements using significant unobservable inputs as at 31 March 2021 or at 30 September 2020.

(v) Fair value of financial instruments not carried at fair value

The carrying value of trade receivables and trade payables approximate their fair value because of the short-term nature of the instruments and low credit risk.

11

Morphic Ethical Equities Fund Limited

Notes to the Financial Statements For the half-year ended 31 March 2021 (continued)

3. Earnings/(losses) per share Basic earnings/(losses) per share Diluted earnings/(losses) per share Profit/(Loss) used in calculating basic earnings/(losses) per share Profit/(Loss) used in calculating diluted earnings/(losses) per share Weighted average number of ordinary shares used in the calculation of basic earnings/(losses) per share Weighted average number of shares used in the calculation of diluted earnings/(losses) per share

Half-year ended Half-year ended 31 March 2021 31 March 2020 $ $ 15.81 cents (2.76) cents 15.81 cents (2.76) cents 8,368,497 (1,454,517) 8,368,497 (1,454,517) 52,918,448 52,786,738

52,918,448 52,786,738

The weighted average number of shares used as a denominator in calculating basic and diluted earnings per share is based on the weighted average number of shares from 1 October 2020 to 31 March 2021.

4. Issued Capital

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

Capital risk management

The Company’s policy is to maintain a strong capital base so as to maintain investor and market confidence. The overall strategy remains unchanged. To achieve this, the Board of Directors regularly monitor NTA results, investment performance and share price movements. The Board is focused on maximising returns to shareholders with capital management a key objective of the Company. The Company is not subject to any externally imposed capital requirements.

(a) Movements in ordinary share capital Opening balance Costs of issued capital, net of tax Closing balance Ordinary shares issued under dividend reinvestment plan	Shares $ Shares $ 52,871,147 55,690,082 52,728,519 55,510,102 82,322 86,166 142,628 136,382 - - - 43,598 Year ended 30 September 2020 31 March 2021 Half-year ended
	52,953,469 55,776,248 52,871,147 55,690,082

5. Cash flow information

Cash flow information
Components of cash and cash equivalents Cash at bank Prime broker funding facility Cash as at the end of the financial period as shown in the statement of cash flows is reconciled to the statement of financial position as follows:	As at As at 31 March 2021 30 September 2020 7,202,750 7,050,184 (1,122,105) (4,396,274)
	6,080,645 2,653,910

12

Morphic Ethical Equities Fund Limited Notes to the Financial Statements For the half-year ended 31 March 2021 (continued)

	Half-year ended	Half-year ended
	31 March 2021	31 March 2020
	$	$
Dividends
Paid in the current period
Dividends paid in the current period
A fully franked final dividend on ordinary shares in respect of the 2021 financial year of 1.5
cents per share was paid on 17 December 2020 (2020: A fully franked final dividend on
ordinary shares in respect of the 2020 financial year of 1.0 cent per share was paid on 17
December 2019)	793,067	527,285
	793,067	527,285

6. Dividends

On 18 May 2021, the Directors declared a fully franked dividend of 2.5 cents per share which amounted to $1,323,837 and will be paid on 29 July 2021.

7. Contingent liabilities and commitments

As at 31 March 2021, the Company had no contingent liabilities or commitments.

8. Segment information

The Company has only one reportable segment and one industry. It operates predominantly in Australia and in the securities industry. It earns revenue from dividend income, interest income and other returns from the investment portfolio. The Company invests in different types of securities, as detailed at Note 2 Fair Value Measurement.

9. Events subsequent to reporting date

Since the end of the half-year, the Directors declared a fully franked interim dividend of 2.5 cents per share to be paid on 29 July 2021.

No other matters or circumstances have arisen since the end of the half-year which significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

13

Morphic Ethical Equities Fund Limited Directors' Declaration For the half-year ended 31 March 2021

Director's Declaration

The Directors declare that:

• (a) the financial statements and notes set out on pages 5 to 13 are in accordance with the Corporations Act 2001, and:

• i) complying with Australian Accounting Standard AASB134 Interim Financial Reporting and the Corporations Regulations 2001;

• ii) giving a true and fair view of the financial position of the Company as at 31 March 2021 and of its performance for the financial half-year ended on that date.

• (b) In the directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors of the Company.

On behalf of the Directors

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JoAnna Fisher Chairman Morphic Ethical Equities Fund Limited

Sydney, 18 May 2021

14

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Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000

Postal Address GPO Box 1615 Sydney NSW 2001 p. +61 2 9221 2099 e. sydneypartners@pitcher.com.au

Independent Auditor’s Review Report

To the Members of Morphic Ethical Equities Fund Limited ABN 52 617 345 123

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Morphic Ethical Equities Fund Limited (“the Company”) which comprises the statement of financial position as at 31 March 2021, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Morphic Ethical Equities Fund Limited does not comply with the Corporations Act 2001 including:

• a) giving a true and fair view of the Company’s financial position as at 31 March 2021 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

15

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Adelaide Brisbane Melbourne Newcastle Perth Sydney

Pitcher Partners is an association of independent firms. An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

pitcher.com.au

Independent Auditor’s Review Report to the Members of Morphic Ethical Equities Fund Limited ABN 52 617 345 123

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Auditor’s Responsibility for the Review of the Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Company’s financial position as at 31 March 2021 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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S M Whiddett Partner

==> picture [157 x 32] intentionally omitted <==

Pitcher Partners Sydney

18 May 2021

16

Pitcher Partners is an association of independent firms. ABN 17 795 780 962. An independent New South Wales Partnership.

Morphic Ethical Equities Fund Limited Corporate Directory For the half-year ended 31 March 2021

Corporate directory

Directors

JoAnna Fisher Jack Lowenstein Mark Forstmann

Company Secretary Jack Lowenstein

Registered Office

Level 11, 179 Elizabeth Street SYDNEY NSW 2000

Contact Details

P: (02) 9021 7701 www.morphicasset.com

Manager

Morphic Asset Management Pty Limited ACN 155 937 901 Level 11, 179 Elizabeth Street SYDNEY NSW 2000

Auditor

Pitcher Partners Level 16, Tower 2 Darling Park 201 Sussex Street SYDNEY NSW 2000 P: (02) 9221 2099

Share Registry Computershare Level 4, 60 Carrington Street SYDNEY NSW 2000 P: (02) 9221 2099

Securities Exchange Listing

ASX code (ordinary shares): MEC

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