Highlights

  • Morphic Ethical Equities Fund (ASX:MEC) will trade ex-dividend for its final Dividend on 11 September 2026.
  • The fund's June 2026 monthly report showed a 27.4% one-year net return, against 17.0% for its MSCI ACWI benchmark.
  • The final dividend of 1.4 cents per share is fully franked.
  • Post-tax NTA was reported at $1.412 per share in July, above the prevailing share price at that time.

Morphic Ethical Equities Fund Ltd (ASX:MEC) is set to trade ex-dividend on 11 September 2026, as the company advances toward payment of its final dividend of $0.014 per share, franked at 100%. Investors who wish to be entitled to this final dividend must hold shares in Morphic Ethical Equities Fund Ltd before the stock begins trading ex-dividend. This upcoming payment comes amid a period of notable developments for the company, making it a relevant one for income-focused investors to watch as the ex-dividend date approaches.

About Morphic Ethical Equities Fund Ltd

Morphic Ethical Equities Fund Ltd (ASX:MEC) is a listed Investment company managed by Morphic Asset Management, investing in a concentrated portfolio of global equities selected under an ethical investment mandate. The fund screens out companies involved in activities such as fossil fuel production, tobacco, weapons and gambling, while seeking to invest in businesses the manager believes are well positioned for structural growth thematics. MEC provides Australian investors with exposure to international share markets through a single ASX-listed vehicle, combining an ethical screening overlay with an actively managed global equities strategy.

Latest Development

Morphic Ethical Equities Fund continues to benefit from strong global Equity performance and its positioning in companies aligned with its ethical investment mandate. Its June 2026 monthly report showed a 27.4% one-year net return, compared with 17.0% for the MSCI ACWI benchmark, although longer-term performance remains more mixed. The fund's latest available NTA announcement in July showed post-tax NTA of A$1.412 per share, versus a share price around A$1.25 at that time, highlighting the persistent discount to underlying portfolio value.

Key Risks to Consider

MEC's ethical screening criteria narrow the investable universe, which can result in periods of performance divergence from broader unconstrained global equity benchmarks. As with other listed investment companies, the fund's share price can trade at a meaningful discount to its NTA, and there is no certainty this gap will close. Currency movements affect returns given the fund's international equity exposure, and mixed longer-term performance figures suggest returns have not always been consistent from year to year. Concentration risk is also a factor, as the fund's active, high-conviction approach can result in larger individual stock exposures than a broadly diversified index fund.

Conclusion

Morphic Ethical Equities Fund's ex-dividend date follows a strong one-year period of outperformance against its global equity benchmark, reflecting favourable stock selection within its ethical investment framework. The fully franked final dividend adds to the fund's appeal for income-focused investors, though the persistent discount between share price and NTA remains a relevant consideration. Investors should Factor in the fund's ethical screening constraints and mixed longer-term track record when assessing its suitability alongside more traditional global equity exposures.

Disclaimer: This article is for general informational purposes only and does not constitute financial or investment advice. Ex-dividend dates, dividend amounts and franking levels are subject to change; investors should verify current details directly with the ASX or the company before making investment decisions.