Pioneering Investment Solutions in South Africa's Evolving Market From Passive Provider to Solutions Innovator in a Transforming Landscape

The growth of passive investing has been nothing short of revolutionary. By the end of 2021, index funds worldwide had amassed an impressive $17.3 trillion in assets under management (AUM). In 2024, a historic milestone was reached as passive investments surpassed 50% of total AUM in the US. Enabled by technology and increased sophistication of capital markets, this transformation has reshaped investment landscapes across developed markets like the UK and USA over the past 20 years. Now, we're seeing this same opportunity emerge in South Africa.  

This shifting landscape prompted us to act. In 2021, with a new executive team and fresh energy, 10X made a bold move—acquiring CoreShares in 2022 and building out our financial intermediary channel. The industry continues to evolve, as evidenced by Sanlam's recent deal with NinetyOne, confirming our view that active management will consolidate for scale while asset aggregators (e.g. insurers and banks) embrace passive strategies as their primary growth engine. Our commitment to empowering advisers with high-quality, competitively priced solutions has never been stronger, as shown by our expanding product suite and growing client base. More than doubling our intermediary business (to $1.4bn) since the acquisition of Coreshares, by further investing in the solutions engine and focusing on creating customised solutions to our clients.  

Building Blocks: Our Investment Manufacturing Capabilities  

Our investment manufacturing capabilities span a comprehensive range of beta building blocks, from multi-assets to fixed income and real estate. Working closely with clients, we leverage these building blocks and capabilities to create tailored solutions. We've developed sophisticated legal structures through our white label solutions ManCo, specifically designed for the South African market. At the heart of our operation lies the state-of-the-art in-house Nexus platform, seamlessly integrating PM/Trading with service providers through Bloomberg AIM integration. This infrastructure enables highly efficient, tech-enabled processes for cash management, operational workflows, and reporting.  

Our product range demonstrates this versatility and innovation:  

• A diverse range of unit trusts and ETFs available for multiple distribution channels providing access to local and offshore markets  
• Sophisticated Regulation 28 compliant multi-asset funds with 45% offshore capability 
• A range of client-driven solutions in fund format or in segregated mandates  

Building trusts with DFMs: Innovation and Market Leadership  

Our technological and investment manufacturing capabilities have positioned us as the preferred investment solutions provider for discretionary fund managers (DFMs), who represent a ~R500 billion market, and multi-managers, with a market size of approximately R1 trillion. As Anton Eser, CIO at 10X Investments, explains, "Our segregated mandates and bespoke solutions capabilities allow us to create truly customised investment strategies that align fully with specific client needs." 

10X's market presence spans multiple channels:  

• Comprehensive unit trust range available on LISPs and investment platforms at wholesale pricing 
• Innovative JSE-listed ETFs and AMETFs designed for wealth managers and portfolio managers
• Groundbreaking product launches

These groundbreaking product launches include: 

• South Africa's first actively managed ETF (May 2023) 
• The first comprehensive managed income solution in listed format (10X Income AMETF, share code INCOME) 
• The pioneering 'self-indexed' AMETF (10X All Asia AMETF, share code APACXJ) 

Future Vision and Growth  

Looking ahead, 10X is positioned to maintain its upward trajectory through several strategic initiatives:  

• Expanding our technological capabilities to enhance client service and product delivery 
• Deepening partnerships with intermediaries across the investment spectrum 
• Continuing innovation in product development to meet evolving market needs 
• Strengthening our position in both traditional and emerging investment channels 

As South Africa's investment landscape continues to mature, our unique positioning as both a solutions manufacturer and a deep-rooted market player becomes increasingly valuable. We're committed to building on our existing capabilities while maintaining the investment rigour and quality of execution that defines the 10X brand. Our focus remains on serving our intermediary customers with excellence, growing our platform at market-leading rates, and contributing to the advancement of South Africa's investment industry.  

The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised Financial Service Provider# 28250 and S13B Pension Fund Administrator #24/444.