This report shows public data only. Is this your organisation? If so, login here to view your full report.

Marathon Asset Management LLP

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          Stewardship Code
        
          SRD II statement
        

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Marathon's investment philosophy is focused on an assessment of the capital cycle and management. As an active long-term investor, with a typical holding period of around eight years, sustainability has always been an integral part of Marathon’s investment decision-making process. Marathon’s primary objective – the fiduciary duty to add value within clients’ agreed risk parameters – is enhanced by considering material ESG issues.

Marathon portfolio managers aim to consider all material issues and weigh them against what is reflected in the current market price of a stock. ESG is included within their overall analysis of stocks; rather than treating it as a stand-alone issue, to be assessed in a different manner. A company with ESG concerns could still be an attractive investment, if the issues are outweighed by other considerations, including valuation. Portfolio managers utilise external ESG research services for additional input, including MSCI and ISS.

Marathon's primary focus is finding companies that it believes are able to generate good returns over time, but the firm also has a strong track record of engagement with company management, to encourage long-term value creation. Effective stewardship and shareholder engagement are reflected in Marathon’s thoughtful and patient investment philosophy. 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

          Please refer to Marathon's Sustainability site for further information.

https://www.marathon.co.uk/sustainability/
        

SG 01 CC. Climate risk

01.6 CC. Indicate whether your organisation has identified transition and physical climate-related risks and opportunities and factored this into the investment strategies and products, within the organisation’s investment time horizon.

Describe the identified transition and physical climate-related risks and opportunities and how they have been factored into the investment strategies/products.

Transition and physical climate-related risks and opportunities are factored into the investment process by the individuals on the investment team. Marathon's investment team aim to consider all material issues and weigh them against what is reflected in the current market price of a stock. Portfolio managers integrate assessment of all ESG factors including climate related risks and opportunities within their overall analysis of stocks, rather than treating it as a stand-alone issue in making investment decisions.

For further information on Marathon's approach to Sustainability, please view the page linked below:

https://www.marathon.co.uk/sustainability/

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

Describe why your organisation has not yet assessed the likelihood and impact of climate risks

Marathon’s investment edge lies in its assessment of the capital cycle, management and valuation – not in forecasting climate risks. Many factors - not just capital cycle, supply-side factors - will determine the extent and impact of climate change. These may include business innovation and market responses; unanticipated actions by governments and regulators; and changes in demand. Portfolio managers take these risks into consideration, but often consider them to be too uncertain to drive investment decisions.

01.8 CC. Indicate whether the organisation publicly supports the TCFD?

Explain the rationale

Although we feel that Marathon's longstanding investment approach is fully compatible with the objectives of the TCFD, as a small firm, Marathon has to be highly selective over which external organisations to actively engage with. Supporting TCFD or other initiatives is currently under consideration, however.

01.9 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe how and over what time frame the organisation will implement an organisation-wide strategy that manages climate-related risks and opportunities.

Marathon's investment philosophy is focused on fundamental, bottom-up qualitative analysis to evaluate businesses and the industries within which they operate. ESG factors are integrated into the investment process by the individuals on the investment team, rather than attempting to form a top-down firm view. At present, there are no plans to change this approach.

Marathon portfolio managers analyse climate related factors in the same manner as other factors that they consider likely to drive risk or returns over the long term. This includes assessing materiality; management strategy in response to climate-related risks; and the extent to which climate-related risks may be balanced against other considerations, including valuation.

1.10 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

Other, specify (1) description

          Stewardship Code
        

URL/Attachment

Other, specify (2) description

          SRD II statement
        

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Marathon maintains a Conflicts of Interest Policy which covers all potential conflicts of interest which may arise within the investment process. As outlined within the policy, in order to maintain the highest degree of integrity in the conduct of Marathon's business and to maintain personal independent judgment, staff must avoid any activity or personal interest that creates, or appears to create, a conflict between personal interests and the interests of Marathon's clients. It is Marathon's policy that all clients will be treated fairly in accordance with relevant regulatory requirements.

Marathon's Conflicts of Interests Policy, Stewardship Code and Corporate Engagement Policy (including proxy voting and conflicts of interest) are all available publicly on the Marathon website. 

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


Top