“The CoreShares accomplishment, coming after Satrix had held the title for two years, confirms that a passive allocation has a strong quantitative probability of performing well within a portfolio,” Stobie said.
“We have long argued that, while index-based allocations need not make up the full portfolio, there is an excellent argument for a generous low-cost index allocation. The award speaks to how consistent low-cost index funds are within a broader selection of funds in each category.”
In a statement about the awards, Morningstar noted that, although the methodology for selection emphasises the one-year period, “funds must also have delivered strong three and five-year returns after adjusting for risk within the award peer groups”. Based on CoreShares’ analysis, seven of its 10 funds performed within the top quartile of their respective categories.
Stobie said this industry acknowledgement came at a momentous time, given CoreShares’ acquisition by 10X Investments, which was finalised in December. He added that 10X also had a superb track record and the combined group, with its expanded and very high calibre investment team, would continue to build on its product set and record of excellence.
10X Chief Investment Officer Anton Eser added: “No one at 10X is surprised that CoreShares has been recognised for superior index selection and product design. This award comes at a key moment for 10X and CoreShares as the combined business starts to build momentum.”
He added that there was a good, longstanding relationship between CoreShares, the larger Morningstar group and the rest of the asset management industry. “10X is committed to building on the strong relationships CoreShares has built throughout the industry.”
The annual awards by Morningstar, a leading global provider of independent investment research, are designed to “recognise those funds and asset managers that have served investors well over the long term and which Morningstar’s manager research team believes will be able to deliver strong risk-adjusted returns over time”.
Announcing the names of the nominees recently, Tal Nieburg, managing director of Morningstar South Africa, noted that the great performance had come in a very tough year: “2022 was riddled with challenges that required careful consideration and navigation. Inflation, recession fears, high interest rates, and geopolitical tensions all combined to create a tough investment landscape. Amid these circumstances, the short-listed fund managers this year have shown their ability to earn strong long-term returns without taking undue risk.”
10X CEO Tobie van Heerden said: “This award is important, not just because these awards are very prestigious in the South African investment industry, but also because the Morningstar group tends to point the way forward for the industry.”
Thanking Morningstar and all of CoreShares’ stakeholders and clients for their support over the years, Stobie added that the award would not have been possible without the CoreShares client base, “who remain at the centre of product and solution design”.
Click here to see the full list of winners.
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 FSP (number 28250); CoreShares is an authorised FSP (Number 46695).
