STEPHEN CRANSTON: Change in store as 10X aims to give clients more say
New CEO sees the future of 10X as being the provider of a passive core and letting clients decide on which active funds they want
Tobe Hooper directed the Texas Chainsaw Massacre, but the shareholders of 10X aren’t expecting drama on this scale from their new CEO Tobie van Heerden.
But there is a significant change in the business model. Under founder Steven Nathan, 10X was all about being the cheapest. Nathan was a purist follower of his hero, Jack Bogle of Vanguard, who started the first index fund. He believed that by cutting out costs — the largest of which was the 100 basis points usually paid to intermediaries — clients could end up with a 40% larger pot when they retire. Yet as the SA market is dominated by intermediaries, 10X has accumulated a relatively modest R17bn. It is profitable but only just...