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.