Stock insight: Nike

Chief Investment Officer and founder of Aitken Investment Management
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When considering companies for potential inclusion in the fund, we are clear about the characteristics we look for: a proven track record of generating excess returns on capital and equity throughout a business cycle, superior cash conversion relative to accounting profits, a well-capitalised balance sheet and modest-to-low volatility of sales growth.

From a non-financial perspective, we also investigate the industry structure to better understand the competitive landscape and intensity of competition, and explore the enablers of the competitive advantage that drive customer loyalty or pricing power.

Lastly, we try to find businesses that have exposure to a secular change taking place in the world, underpinning their ability to grow revenues.

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