10X Investments Announces The Acquisition Of CoreShares
10X Investments Announces The Acquisition Of CoreShares. 10X Investments has announced that it has acquired CoreShares, one of Africa’s leading passive investment management businesses. The company specialises in index-tracking investment solutions across Exchange Traded Funds (ETFs), Unit Trusts and segregated mandates (for institutions).
Through this acquisition the company seeks to create a full-service indexing investment specialist that will give South Africans access to a wide selection of best-in-class products at the fairest fees possible. The combined business will have assets under management of more than R31 billion. “We’re very excited about the range of funds and experience the CoreShares team brings to 10X,” Anton Eser, 10X’s Chief Investment Officer said in a statement, “With this expanded capability we aim to become the leading index provider in the South African market by tapping into proven global trends in the growing use of index funds as a core allocation in portfolios, as well as ESG investing and a greater use of technology-based solutions.”
CoreShares has a wide product set covering discretionary saving products as well as ETFs, an important growth area for a rules-based investment business. CoreShares also has a significant, established intermediated offering that will complement 10X’s strong direct-to-client business. 10X has recently embarked on a step-change in growth. A largely new senior management team, under the leadership of Van Heerden, has set a new course as a full-service asset manager for what was essentially a boutique retirement savings business. This transaction effectively fast-tracks 10X’s growth plans.
All stakeholders, including South African investors in general, stand to benefit from this deal since scale is what unlocks the real benefits of rules-based iinvesting. The teams at the two businesses are complementary with little-to-no crossover. The CoreShares team will be joining 10X, adding breadth and depth to the team and ensuring continuity for CoreShares clients.
