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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.