News that 10X Investments was buying CoreShares broke last week and raised a number of questions from readers and having chatted to the parties I have answers.
— Simon Brown (@SimonPB) May 12, 2022
Firstly I spoke with Gareth Stobie, MD at CoreShares. He says the product range won’t change but in time the branding will and maybe as they get more scale we may even see cheaper fees (maybe that’s more my wishing). The CoreShares team will be moving across to 10X Investments and in time we may see new product innovations.
I also spoke with Grant Locke from OUTvest about their ONEfee 0.2% RA product offering. They use CoreShares products within the ONEfee product and OUTsurance also holds a minority stake in CoreShares. Many of you contacted me asking if this was now a problem.
Grant assures me that 10X Investment are totally on board with the relationship between CoreShares and OUTvest so no impact on the ONEfee product.
This makes sense. While 10X Investment and OUTvest compete on products, keeping the relationship with OUTvest essentially adds an extra distribution channel for 10X Investments.
So while it will be sad to see the CoreShares brand disappear in time, this deal makes sense for all parties and looks like a good one for the low fee passive industry.
Below is an interview I did with Gareth Stobie on MoneywebNOW.
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