InvestNow News 13th Sep – Morphic – Monthly Performance Report – August 2019

Ethical Investing in Focus

As a PRI signatory, we are committed to the six principles covering the incorporation of Environmental, Social and Governance (ESG) issues in our investment process. We actively promote and collaborate with other responsible investors and aspire to the highest levels of transparency.

We are proud that the integration of ESG issues in both our investment strategy and governance structures, and our stewardship activities as an active investor have been validated by the recently published PRI 2019 Assessment Report. For all modules, including the key modules – Strategy & Governance, Listed Equity – Incorporation & Listed Equity – Active Ownership – we achieved the highest score of A+. A description of the PRI Assessment and its methodology can be found here.

Portfolio review

The Fund rose 0.1% in August, outperforming global markets which fell 0.1% in AUD terms. Global equities fell 2.6% in USD terms, as new tariffs were introduced in the US-China trade war, the US yield curve inverted, and the PMIs fell.

During the month, the US (-2.0%) and Japan (-1.0%) fell the least while Emerging Markets (-5.1%) performed worst. Defensive sectors rallied in August, while tariffs hurt Tech; the flattening yield curve hurt Financials; and the weaker macro data hurt Energy and Materials.

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