Ethical investing doesn’t mean lower returns

Jack Lowenstein

Morphic Asset Management

I started my career as an ethical investor twenty years ago; in more than a decade of ethical investing, I produced outperformance against the benchmark, as well as good absolute returns. Our back-testing has demonstrated that over the past 4.5 years, the ethical screen we’re applying would’ve added about 0.3% p.a. to our 17.3% p.a. returns since inception in the Morphic Global Opportunities Fund, which is entirely consistent with my investing experience.

“As the father of two teenage children, I’m conscious of the fact that the world we leave behind must be no worse than the world we were born into.”

Key points:

  • Ethical screen excludes fossil fuels, gambling, tobacco, and deforestation
  • Ethical overlay not expected to detract from fund performance
  • Risk management process focusses on reducing volatility for investors
  • Due to risk management constraints, the strategy is limited to around $3B of FUM including the Morphic Global Opportunities Fund
  • Significant investments in the company from Managing Director, Board’s NEDs, Westpac Bank (part-owner of Morphic Asset Management), and Geoff Wilson. Staff and directors are also invested in the fund and/or the company

Learn more about the Morphic Ethical Equities Fund, our new listed investment company here: (VIEW LINK)

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Jack Lowenstein
Jack Lowenstein
Joint Chief Investment Officer
Morphic Asset Management

Jack co-founded Morphic Asset Management in 2012. As a stock picker Jack has invested in a variety of markets and sectors, but developed in-depth knowledge of markets in Asia-Pacific region as well as global finance and resources sectors.

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