10X buys Coreshare to create R31bn investment firm

UPDATED– SINCE THE appointment of new head at 10X Investments, Tobie Van Heerden has hit the ground running.

Ascending to the chief executive post in 2021 after taking over from Steven Nathan, Van Heerden and his financial team, have been hard at work to agree to a 100% cash purchase of CoreShares, which it says will create 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.

“This deal brings together two great South African businesses with a shared investment philosophy and clear alignment around purpose.”

CoreShares, he said, has a wide product set covering discretionary saving products as well as ETFs, an important growth area for a rules-based investment business,” he was quoted.

The 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.

“Scale is critical to being competitive in rules-based investing,” Van Heerden said.

“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.”

CoreShares boss, Gareth Stobie, 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.”

On plans going forward, Van Heerden said “10X is not trying to change what CoreShares is doing, but rather to build on it.”

Image (10X Investment headhoncho Tobie Van Heerden).

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