OUTsurance takes a 25% stake in passive asset manager CoreShares

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OUTsurance and CoreShares today announced that OUTsurance will acquire a 25% stake in CoreShares. CoreShares is a leading passive investment manager in South Africa with both Exchange Traded Fund (ETF) and Unit Trust product suites.

CoreShares is well positioned to harness many of the current trends in the global asset management industry including: the growth of ETFs, Smart Beta or Factor investing, advancements in financial technology, including robo advisors, and the growth in adoption of passive investing. Importantly, the acquisition complements OUTsurance innovative new investment arm OUTvest, a digital, automated advice business.

CoreShares’ index portfolios are integrated directly into the advice algorithms developed by OUTvest. Over the last 12 months, CoreShares has brought a number of exciting initiatives to market including their own online platform; the first listing of an S&P500 ETF on the JSE; as well as a sophisticated multifactor index in partnership with EDHEC Scientific Beta.

OUTsurance is a leading direct to consumer insurance company in South Africa. The business will lend its support to CoreShares in various ways as it imparts both capital and entrepreneurial experience. Willem Roos, CEO OUTsurance, “Having worked closely with CoreShares over the last two years in the development of OUTvest and through direct balance sheet index investments we believe CoreShares is poised to become a dominant player in the passive investment market and are grateful to have the opportunity to join them on their path to success”.

Gareth Stobie, CoreShares

Gareth Stobie, MD CoreShares, “OUTsurance is a vibrant and successful brand that we are delighted to be partnering up with on our journey to building a contemporary, client-centric, asset management business”.

The purchase price was not disclosed and the transaction remains contingent on regulatory approvals.

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