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Acquisition of CoreShares by 10X
CoreShares Index Tracker Managers (RF) Proprietary Limited
CoreShares Global Prop
Share code: GLPROP
ISIN: ZAE000268660
CoreShares S&P 500 ETF
Share code: CSP500
ISIN: ZAE000268694
CoreShares S&P SA Top 50 ETF
Share code: CTOP50
ISIN: ZAE000204327
CoreShares SA Property Income ETF
Share Code: CSPROP
ISIN: ZAE000273165
CoreShares S&P SA Dividend Aristocrats ETF
Share code: DIVTRAX
ISIN: ZAE000190104
CoreShares Total World Stock Feeder ETF
Share Code: GLOBAL
ISIN: ZAE000297776
CoreShares Global Dividend Aristocrats ETF
Share Code: GLODIV
ISIN: ZAE000254249
CoreShares PrefTrax
Share code: PREFTX
ISIN: ZAE000185658
CoreShares Scientific Beta Multi Factor ETF
Share code: SMART
ISIN: ZAE000269502
Portfolios in the CoreShares Index Tracker Collective Investment Scheme registered as such in terms of the
Collective Investment Schemes Control Act, 45 of 2002, managed by CoreShares Index Tracker Managers
(RF) Proprietary Limited (“CoreShares”)
Acquisition of CoreShares by 10X
10X Investments has agreed to a 100% cash purchase of CoreShares, creating a full-service South African indexing
investment specialist with more than R31 billion in assets under management.
The deal is subject to regulatory approvals, but no delays are expected.
10X Investments CEO Tobie van Heerden said: “This deal brings together two great South African businesses with a
shared investment philosophy and clear alignment around purpose.”
10X is known for providing high performing investment products and superior customer service at very fair prices.
CoreShares has a wide product set covering discretionary saving products as well as ETFs, an important growth area for
a rules-based investment business.
This deal would allow 10X and CoreShares clients, as well as other South African savers and investors, access to a wide
selection of best-in-class products at the fairest fees possible. It is expected that existing clients at both companies will
benefit from the additional scale, expertise and capacity offered by the combined entity.
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 their team and ensuring continuity for CoreShares clients.
“We’re very excited about the range of funds and experience the CoreShares team brings to 10X,” said Anton Eser,
10X’s Chief Investment Officer. “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.”
“Scale is critical to being competitive in rules-based investing,” Van Heerden added. “In the next couple of years, a small
number of players in South Africa will have sufficient scale to participate in the market and bring down costs for South
African investors.”
Van Heerden said the team at CoreShares correlates well with the people and the skillsets 10X was planning to bring in
over the next few years. He added that the deal is good news for staff at both businesses since it “combines two great,
fast-growing companies and will significantly increase opportunities all round”.
The purchase advances 10X’s evolution into a leading, full-service rules-based investment manager providing a full suite
of investment products across the various distribution channels. The deal acknowledges the value-adding role of quality
financial advice in various contexts. CoreShares’ significant established intermediated offering will complement 10X’s
strong direct-to-client business.
Gareth Stobie, Managing Director at CoreShares, said: “10X has historically not serviced advice channels, but the new
management team have wide experience working with advisers. The enlarged company will cater for both advisers and
for clients who want to invest directly.”
10X Investments 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. Van Heerden said this transaction fast-tracks 10X’s growth plans.
“As challenger brands, CoreShares and 10X have grown up alongside each other, both advocating for a similar, yet
different, approach to achieving good investment outcomes through using low-cost index funds,” Stobie said. “The
shared energy, client-centricity and investment ethos makes for a solid foundation of how the teams will come
together.”
“10X is not trying to change what CoreShares is doing, but rather to build on it,” Van Heerden said.
“The two businesses are a very good fit, being complementary without having that much cross-over or duplication.
There is a clear synergy between CoreShares and 10X’s desired growth path.”
In a joint statement welcoming the deal, the exiting corporate shareholders of CoreShares said they were "proud of the
journey and the strong investment franchise built over a relatively short time frame, but also acknowledge the
increasing role that scale plays when building a successful passive business".
The statement added: "Accordingly, this transaction is in the best interests of the company and its clients, whilst
allowing the exiting parties the ability to focus more on their other primary assets and activities.”
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal,
investment, or other advice. CoreShares (FSP 46695) is an authorised Financial Services Provider under the Financial
Advisory and Intermediary Services Act, 2002.
12 May 2022
Corporate advisor and sponsor
Grindrod Bank Limited
Date: 12-05-2022 02:00:00
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