Skip links

About Us

RainDance is a Johannesburg-based, long-only investment management firm dedicated to sustainable investing. We understand the importance of moving towards economies that produce zero emissions, while balancing the societal impact on all parties involved.

For our clients, we also believe that their sustainability interests need not translate into sub-par returns as the price for having their capital aligned with their values. We believe that sustainable investing is critical to the ‘long-term’ nature of investing and, if ignored, there is a greater risk of underperformance and heightened portfolio volatility.

We are centred on the idea that the financial sector has a pivotal role to play in encouraging and reshaping industries to strengthen and reinforce environmental, social and economic fragilities.

Our approach follows bottom-up, fundamental analysis seeking traditional quality assets that align themselves with meeting well established sustainability measures.

Our Philosophy

Our philosophy, ‘Sustainable Quality’ is embodied around two investment pillars:

Quality, which we believe advocates for a deep understanding of the company in which one intends to invest. This provides the required comfort needed for one to adopt a long-term view in their decision-making. There are few short-cuts and our process involves a review of all public information, including financial reports, management engagement, media and all areas of stakeholder information available (e.g., suppliers, customers, regulatory bodies, etc.).

For us quality is developed in:

  • Strong and steady cash generation,
  • Robust balance sheets
  • Attractive growth opportunities in high-growth sectors,
  • And a consistently high ROIC.

While there are many factors that contribute to defining “quality,” for us, these four indicators describe a cycle of cash generation within a company’s operations. This cycle involves reinvesting the generated cash into high-growth sectors, which leads to even more cash generation along with the ongoing pursuit of high-growth investment opportunities. As a result, investors can expect to see a rising return on their invested capital (ROIC).

ESG Integration forms the groundwork which underpins our Quality approach. When we integrate the ESG framework into our research, we are seeking out management teams that understand the linkages in the likelihood, severity and timeframe in which an event might impact their industry, and how they might turn that into an opportunity or navigate the turbulence. Our membership and affiliation with the IFRS Sustainability Alliance, allows us to research and analyze only the most financially material sustainability factors for each industry. In our analysis, the investment research teams are able to evaluate the type and nature of the most material factors that face their apportioned industries, across the full value chain.

This level of understanding serves as a critical element in evaluating other materially relevant impacts and levers in a company’s operations and strategy, and adds an important layer of understanding into our fundamental research. The IFRS Sustainability Alliance is the global membership programme tailored for investors. It provides a foundational basis for sustainability standards, offering curated insights and educational programming on the integration of sustainability factors into investment processes, reporting best practices, sustainability standards development, global policy and offers a library of ongoing academic research. 

About the founder

Nkareng Siwale, founder of RainDance, has a 16-year career in investment management from one of the leading South African banking groups. She managed domestic and global mandates, primarily in listed equities and multi-asset categories. Before the founding of RainDance, Nkareng became Chief Investment Officer of Listed Markets at the bank’s asset management subsidiary. In the past, she has served on both private and public boards.

As one would agree, ESG is moving beyond a set of voluntary guidelines for the financial sector globally and is instead racing towards a regulatory environment anchored around legal imperatives. For the founder, she believes that finding this path now means studying how to balance ESG and performance simultaneously.

This website uses cookies to improve your web experience.