MORPHIC ETHICAL EQUITIES FUND LIMITED — Net Asset Value 2017

May 15, 2017

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May 16[th] , 2017

Company Update

The directors of the Morphic Ethical Equities Fund Ltd (the Company) are pleased to announce that the Company is now fully invested.

As at close of business on Thursday May 11[th] the Company’s after tax net asset value (NAV) per share had reached $1.094 compared to $1.074 at the time of its listing on May 3[rd] .

At close of business on Tuesday May 16[th] the combined value of the Company’s shares (MEC) and options (MECO) was $1.123, compared to the $1.10 offer price for the shares and options.

The ten largest positions in the Company’s portfolio as at Thursday May 11[th] were:

Name	Country/Region	Business	Weighting	PositiveScreenStock
RURAL ELECTRIFICATION CORP	India	Specialistpower sector financier	4.5%	
POWER GRID CORP OF INDIA	India	National Grid operator	3.7%	
D.G. KHAN CEMENT	Pakistan	Cement	3.2%
ALSTOM	Europe	Rail transportation equipmentand services	3.0%	
HCA HEALTHCARE INC	North America	Hospitals	2.9%
FUND MANAGERS BASKET	Global	Fund management	-2.6%
WELLS FARGO & CO	North America	Bank	-2.1%
PING AN INSURANCE GROUP	China	Life, property and casualtyinsurance	2.1%
PANALPINA WELTTRANSPORT	Europe	Global Freighter	-2.0%
SES	Europe	Satellite Operator	1.9%

Holdings shown in red and with negative weightings are short positions.

In accordance with the Company’s Ethical Charter, the portfolio:

• excludes investments in companies with exposure to armaments, tobacco and alcohol, intensive farming and aquaculture, oil and gas extraction, coal and uranium mining, and rainforest and old growth logging.

• includes exposures exceeding 10% (as against the minimum 5% required) to businesses that are working to make the world a better place.

The Company’s portfolio is not hedged back into Australian dollars.

The regular monthly announcement of the Company’s NAV will be published in early June.

For any questions please contact Irene Kardasis at Morphic Asset Management on 02 9194 6707.

Morphic Ethical Equities Fund Ltd, Level 3, 139 Macquarie St, Sydney, NSW 2000, Australia

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Disclaimer

This communication has been prepared by Morphic Ethical Equities Fund Limited (“MEC”) (ACN 617 345 123) and its Manager, Morphic Asset Management Pty Ltd (“Morphic”) (ACN 155 937 901) (AFSL 419916). The information contained in this communication is for information purposes only and is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this communication, MEC and Morphic have not considered the objectives, financial position or needs of any particular recipient. MEC and Morphic strongly suggest that investors consult a financial advisor prior to making an investment decision.

No warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this communication. To the maximum extent permitted by law, none of MEC, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this communication.

If this communication includes “forward looking statements”, such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of MEC and its officers, employees, agents or associates that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. MEC and Morphic assume no obligation to update such information.