CoreShares performance and deals update

As an investor, it’s important to stay up to date with the latest developments regarding your holdings. In this article from the Coreshares team, we look into what's been happening with CoreShares and what it means for you. Over 67 000 EasyVSTRs have invested in Coreshare products through the EasyEquities platform!

Developed markets declined in August as investors digested hawkish comments from the Fed and, in Europe, ongoing inflation concerns and the energy crisis weighed on markets. Emerging market equities were more resilient than their developed counterparts.

Top performers in our range last month: CoreShares Scientific Beta Multi-Factor ETF -0.3% and the CoreShares Preference Share ETF -0.7%. The CoreShares SA Dividend Aristocrats ETF is in focus with an attractive 8.8% one-year net historic yield. Please click below to see the latest performance data for the full CoreShares fund range.

The CoreShares acquisition and what it means for you

During the year, Gareth Stobie (MD, CoreShares) together with Tobie van Heerden (CEO, 10X) announced that 10X investments will be acquiring CoreShares. The deal was debunked as follow:

The current CoreShares shareholders have agreed to a 100% cash offer from 10X Investments in a merger that would create an independent, full-service, indexing and rules-based investment specialist with more than R31billion in assets under management. The deal is subject to approval by the FSCA.

10X is already well-known as a challenger brand and consumer champion for its retirement savings products which all have an index and rules-based investment underpin. This offering ties in well with Coreshares’ complementary building block offerings, including ETFs, segregated accounts and smart beta offerings.

Accordingly, our clients will benefit from the additional scale, expertise and capacity offered by the combined entity. Indeed, scale is critical to being competitive in rules-based investing and we anticipate that in the next few years a small number of players in South Africa will have sufficient scale to be successful and bring down costs for South African investors.

The transaction comes at an exciting time for 10X. The company has embarked on a strategy reset which includes not only a new, highly experienced executive team, led by Tobie Van Heerden (CEO) and Anton Eser (CIO), but also a fresh focus on the broader market and various distribution channels, and an inclusive approach to industry stakeholders, including financial advisors.

10X’s strong direct-to-consumer offering will complement CoreShares’ intermediated offerings. The enlarged business will remain focused and client centric. The CoreShares team will be joining 10X, adding breadth and depth to their team and ensuring continuity for CoreShares’ clients.