Financials
Morphic Ethical Equities Fund Limited (MEC)
Morphic Ethical Equities Fund Limited (ASX: MEC) is an Australian Listed Investment Company (LIC) that invests in a concentrated portfolio of global equities. The fund operates under a strict ethical and ESG (Environmental, Social, Governance) mandate, actively avoiding investments in industries like fossil fuels, tobacco, and armaments. Its primary objective is to generate long-term capital growth and a stream of fully franked dividends for shareholders.
Market Cap
A$36M
Shares on Issue
N/A
Price Chart
AI Analysis
As a small-cap LIC with a market capitalization of A$36M, MEC's performance is directly linked to its underlying Net Tangible Assets (NTA) and the market's perception of its management. Its recent performance has been subject to global market volatility, with returns influenced by macroeconomic factors like inflation and interest rates impacting its global holdings. A key metric for MEC is its share price discount to NTA; like many small LICs, it often trades at a persistent discount due to lower liquidity and a smaller investor base.
MEC's growth outlook depends on the investment manager's ability to identify undervalued global ethical companies and outperform its benchmark. A key catalyst would be a narrowing of the NTA discount, potentially driven by improved performance, an on-market share buy-back, or increased investor demand for ESG-focused products. The company's strategy is to grow its funds under management to improve economies of scale and liquidity, making it more attractive to a wider range of investors.
Bull Case
- • Increasing mainstream demand for dedicated ESG and ethical investment vehicles could drive fund inflows and a re-rating of the share price.
- • The persistent discount to its Net Tangible Assets (NTA) presents a value opportunity if the gap closes due to strong performance or capital management initiatives.
- • Provides retail investors with easy access to a professionally managed, ethically-screened portfolio of diverse global companies, hedging against Australian market concentration.
Bear Case
- • The small market cap and low daily trading volume result in poor liquidity, which can lead to high share price volatility and difficulty executing large trades.
- • The share price can trade at a significant and prolonged discount to its underlying NTA, meaning the market value may not reflect the true value of the portfolio.
- • Performance is entirely dependent on the skill of the external investment manager and the cyclical nature of global equity markets.
Recent Announcements
NTA at 23.01.2026 Pre-tax 1.4005 Post-tax 1.3315
Update - Notification of buy-back - MEC
Update - Notification of buy-back - MEC
Notification of cessation of securities - MEC
FAQs
What does MEC do?
MEC is an ASX-listed investment company (LIC) that invests in a portfolio of global stocks selected according to a strict ethical framework. It aims to provide capital growth and dividend income by investing in companies with positive social and environmental characteristics.
Is MEC a good investment?
MEC offers exposure to a professionally managed, ethical global portfolio. However, its small size and low liquidity make it a speculative investment. Potential returns are tied to both the fund manager's performance and the risk that the share price may continue to trade at a significant discount to the value of its underlying assets.
What drives MEC's share price?
MEC's share price is primarily driven by the performance of its investment portfolio (reflected in its NTA), general sentiment in global equity markets, and the size of the discount or premium the market applies to its NTA, which is influenced by investor demand and the company's dividend policy.
Key Metrics
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