Morphic Ethical Equities Fund Announces Estimated NTA of $1.5244 Pre-Tax as of 10 July 2026

Overview of Morphic Ethical Equities Fund’s Investment Strategy and Structure

Morphic Ethical Equities Fund Limited is a listed investment company on the Australian Securities Exchange, dedicated to responsible and ethical investing. The fund’s mandate focuses on selecting equities that comply with strict environmental, social, and governance (ESG) standards, positioning it within the expanding ethical investment sector available to Australian investors. Headquartered in Sydney at Level 11, 179 Elizabeth Street, the company maintains an active investor relations team to ensure ongoing communication with shareholders.

Operating as a closed-end fund, Morphic Ethical Equities Fund offers investors direct exposure to a carefully selected portfolio of Australian equities aligned with responsible investment criteria. This approach caters to the growing demand from investors seeking to combine financial returns with values-based investment principles. The regular NTA updates, as disclosed on 20 July 2026, highlight the fund’s commitment to transparency in reporting asset values to its shareholders.

Pre-Tax NTA of $1.5244 Per Share Indicates Portfolio Value Before Tax Considerations

The estimated unaudited pre-tax NTA per share of $1.5244 as at 10 July 2026 reflects the gross asset value attributable to each share before deducting tax liabilities. This figure is derived by valuing the fund’s total portfolio assets, subtracting liabilities, and dividing by the number of shares issued. The pre-tax NTA offers investors insight into the fund’s underlying asset backing prior to any tax obligations arising from investment activities or potential future tax provisions.

Distinguishing between pre-tax and post-tax NTA is crucial for investors assessing the actual value of their holdings. The pre-tax figure of $1.5244 per share represents the portfolio value before accounting for tax provisions, which may include unrealised capital gains tax liabilities or other embedded tax exposures. This metric is especially relevant for investors seeking transparency on the gross asset value supporting each share.

Post-Tax NTA of $1.4182 Per Share Reflects Estimated Tax Liabilities

The estimated unaudited post-tax NTA per share of $1.4182 as at 10 July 2026 represents the net asset value after accounting for estimated tax liabilities. The difference between the pre-tax NTA of $1.5244 and the post-tax NTA of $1.4182, approximately $0.1062 per share, illustrates the impact of tax provisions on the fund’s net asset position. This information is significant for investors evaluating the true economic value of their shares.

The post-tax NTA is generally viewed as a more conservative and economically meaningful figure since it accounts for tax obligations that would crystallise if the fund realised its portfolio positions. For investors assessing the net economic value available, the post-tax figure provides a clearer representation of tangible assets per share after adjusting for known or estimated tax liabilities. This disclosure underscores the fund’s dedication to comprehensive valuation transparency.

Share Price Trading at a 4.8% Discount to Post-Tax NTA: Investor Considerations

The closing share price of $1.350 on 10 July 2026 reflects a discount of approximately 4.8% to the post-tax NTA of $1.4182 per share. Such discounts are common in closed-end fund markets, where share prices fluctuate relative to underlying NTA based on supply and demand, investor sentiment, and market conditions. This discount indicates that the market valued the fund’s shares below their estimated asset backing at the time.

Investors should monitor whether this discount widens or narrows over time, as persistent discounts may signal either investment opportunities or concerns about the fund’s management or performance. Conversely, premiums to NTA can indicate strong demand for the fund’s ethical investment approach. The relationship between share price and NTA remains a critical metric for evaluating closed-end fund valuations and market perceptions of portfolio risks or benefits.

Ethical Investment Mandate and ESG Portfolio Selection

Morphic Ethical Equities Fund differentiates itself through a commitment to responsible investment, selecting companies that satisfy rigorous environmental, social, and governance standards. The fund’s investment process employs ESG screening to exclude companies involved in activities inconsistent with ethical objectives, while identifying businesses with strong sustainability and governance practices. This mandate appeals to investors prioritising values alongside financial returns.

The ethical investing sector has grown substantially due to regulatory changes, investor activism, and shifting societal priorities on corporate responsibility. Morphic Ethical Equities Fund positions itself within this expanding market, offering Australian investors equities exposure aligned with responsible investment principles. Regular NTA disclosures bolster investor confidence by providing transparent and timely information on asset values and performance.

NTA Calculation and Reporting Methodology

The update released on 20 July 2026 represents the fund’s routine disclosure of estimated unaudited NTA figures, a standard practice for listed investment companies. The NTA is calculated by valuing portfolio holdings at current market prices, adjusting for accrued income and expenses, then dividing net assets by the number of shares outstanding. The term "estimated unaudited" indicates these figures have not undergone full audit but reflect management’s best assessment as of the valuation date.

Investors should note that NTA figures can fluctuate due to market movements, portfolio changes, and subsequent audit adjustments. The timing of the announcement on 20 July 2026, referencing 10 July 2026 valuations, reflects a typical lag between valuation and public disclosure. Regular NTA reporting enhances market transparency and allows investors to track the fund’s value and performance over time.

Investor Relations and Access to Information

Morphic Ethical Equities Fund offers direct investor access through its dedicated Investor Relations team, reachable at 02 9021 7701. This channel provides shareholders with further details on NTA announcements, portfolio composition, investment strategy, and other relevant information. Effective investor relations support shareholder engagement and ensure timely dissemination of material information.

Including contact details in the company update highlights the fund’s commitment to accessibility and responsiveness. Shareholders seeking clarification on NTA calculations, tax implications, or fund operations can engage directly with the investor relations team. This transparency fosters informed investment decisions and supports a well-functioning market for the fund’s shares.

Positioning Within the Australian Listed Investment Company Sector

Morphic Ethical Equities Fund operates within the Australian listed investment company (LIC) sector, comprising closed-end funds traded on the ASX. The LIC market provides diversified equity exposure managed professionally, with trading flexibility and regular NTA transparency. Ethical and responsible investing has become a significant LIC segment, driven by investor demand and regulatory support for sustainable finance.

The fund’s ethical equities focus distinguishes it from broader LICs, attracting investors seeking alignment of values and financial returns. Regular NTA disclosures support market efficiency by providing transparent asset valuations, aiding pricing accuracy and market integrity. As responsible investing evolves, funds like Morphic Ethical Equities remain relevant through consistent shareholder communication and transparent reporting.

Guidance for Current and Potential Investors

Existing and prospective investors in Morphic Ethical Equities Fund should consider the disclosed NTA figures alongside other factors in their investment decisions. The discount to NTA may influence valuation assessments, but investors should avoid assuming that discounts automatically represent value without thorough analysis. The ethical investment mandate should be evaluated for compatibility with individual values and financial goals.

Prospective investors should understand that ethical mandates may lead to portfolio exposures differing from broader market indices, potentially impacting risk and return profiles. The fund’s asset backing, as shown by NTA, offers one measure of financial standing but should be reviewed with performance data, fee structures, and the expertise of the investment team. Regular NTA updates facilitate informed decisions by enabling ongoing monitoring of the fund’s asset value trends.