Morphic Ethical Equities Fund (ASX: MEC)

Responsible Investing Approach

The Fund seeks to invest in an ethically screened global investment Portfolio to meet the investment objectives the stock selection is subject to compliance with the ethical screens described in the Morphic Ethical Charter. The Fund excludes investments which have as a significant part of their business activities that create un-remediated damage to land, air or water, mine coal or uranium, extract oil and gas, manufacture armaments, tobacco products, or alcohol. As well as companies that engage in, or are reliant on, logging of rainforest or old growth timber, are involved in gambling, or use cruel or unsustainable methods to farm or produce fish. Furthermore, 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.

Documents

Exclusions

The Fund excludes investments which have as a significant part of their business activities that create un-remediated damage to land, air or water, mine coal or uranium, extract oil and gas, manufacture armaments, tobacco products, or alcohol. As well as companies that engage in, or are reliant on, logging of rainforest or old growth timber, are involved in gambling, or use cruel or unsustainable methods to farm or produce fish.

Exclusions	Full/Partial Exclusion	Description
Tobacco	Full	The Fund does not invest in companies that derive any revenue through involvement in the production of tobacco, manufacture of nicotine alternatives and tobacco-based products.
Alcohol	Partial	The Fund excludes investment in companies that have as a significant part of their business activities in alcohol manufacture.
Weapons	Full	The Fund does not invest in companies that derive any revenue through involvement in the development and production of controversial weapons, including, nuclear weapons.
Fossil fuel exploration, mining and production	Partial	The Fund excludes investment in companies that have a significant part of their business activities involved in the mining of coal or the extraction of oil and gas.
Environmental damage	Partial	The Fund excludes investment in companies that have a significant part of their business activities involved in logging of rainforest or old growth timber, or that create un-remediated damage to land, air or water.
Unethical treatment of livestock	Partial	The Fund excludes investment in companies that have a significant part of their business activities involved in the use of cruel or unsustainable methods to farm or produce fish.
Gambling	Partial	The Fund excludes investment in companies that have a significant part of their business activities involved in gambling.
Nuclear power (including uranium mining)	Partial	The Fund excludes investment in companies that have a significant part of their business activities involved in the mining of uranium.

Inclusions

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. It seeks to invest in businesses which find solutions for reducing the emission of greenhouse gases, that reduce damage to water supplies, work to improve air quality, provide alternatives to deforestation, or otherwise enhance the human experience without creating future problems for mankind or the environment.

Biodiversity preservation & conservation

UN Sustainable Development Goals

Conventions & Treaties

Ellerston is a signatory of the Principles of Responsible Investment (PRI) and a member of the Responsible Investment Association of Australasia (RIAA).

Conventions & Treaties	Aligned	Description
Principles for Responsible Investment	Yes	Signatory

ESG Score

ESG Score
Does the portfolio have an ESG score?	Not disclosed
If so, who is responsible for calculating the score?	Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.?	Not disclosed
If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings?	Not disclosed

Impact Investing Score

Impact Investing Score
Does the portfolio have an Impact Investment score?	Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.?	Not disclosed
If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings?	Not disclosed
Does the fund publish its holdings publicly?	Yes

Policies, Certification & Marketing

Policies, Certification & Marketing
Responsible investing policy	View Responsible investing policy document
Proxy voting policy	View Proxy voting policy document
Stewardship policy	View Stewardship policy document
Is the fund RIAA certified?	Yes
Date certified
Morphic Funds Portfolio Holdings	View Morphic Funds Portfolio Holdings document
Morphic Ethical Charter	View Morphic Ethical Charter document

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