JSE Sens
Abridged Results for the period ended 31 December 2023 - WNXT40
2024/05/23 17:31:00Download PDF Stock report
Abridged Results for the period ended 31 December 2023 - WNXT40 10X EXCHANGE TRADED FUND SCHEME (PREVIOUSLY CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME) INSTRUMENT: 10X WEALTH NEXT 40 ETF ABBREVIATED NAME: 10XNXT40 SHARE CODE: WNXT40 ISIN CODE: ZAE000320784 ABRIDGED RESULTS FOR 10X WEALTH NEXT 40 EQUAL WEIGHTED EXCHANGE TRADED FUND (PREVIOUSLY CORESHARES WEALTH NEXT 40 EQUAL WEIGHTED EXCHANGE TRADED FUND) 10X EXCHANGE TRADED FUND SCHEME (PREVIOUSLY CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME) FOR THE PERIOD ENDED 31 DECEMBER 2023 CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 2023 R ASSETS Investments held at fair value 249,743,476 Other assets 2,766,048 TOTAL ASSETS 252,509,524 LIABILITIES Net assets attributable to participatory interest holders 249,940,760 Other liabilities 2,568,764 TOTAL LIABILITIES 252,509,524 CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2023 2023* R Net investment income 29,139,395 Operating expenses (965,393) Distributions and withholding taxes (5,655,272) Change in net assets attributable to participatory interest 22,518,730 holders * For the period from 25 April 2023 (date of commencement of operations) to 31 December 2023. This abridged report is extracted from audited information but is not itself audited. The audited financial statements of the Manager and the Portfolio are available, free of charge, on request by an investor and at www.10X.co.za. There were no auditor qualifications in the audited financial statements of the Manager or the Portfolio. Income distributions per unit (cents) Payment date Cents per unit 17 July 2023 4.24 16 October 2023 14.33 22 January 2024 10.21 Annual management fee % (excluding VAT) WNXT40 0.30 Last Published Price as at 31 December 2023 Last published price (cents) WNXT40 1,069.00 Investment Performance (%) as at 31 December 2023 Since inception 1 year (annualised) WNXT40 - - Benchmark - - Fund and benchmark performance data are shown from 12 months after fund inception, as such no performance history is included. Portfolio composition (%) as at 31 December 2023 Cash, Equities receivables, and payables WNXT40 99.92 0.08 23 May 2024 Sponsor: Grindrod Bank Limited 10X FUND MANAGERS (RF) (PTY) LTD (THE 'MANAGER') (PREVIOUSLY CORESHARES INDEX TRACKER MANAGERS (RF) (PTY) LTD)) ANNUAL INVESTOR REPORT For the year ended 31 December 2023 CHAIRMAN'S REPORT It is my pleasure to present the annual report of the Manager, the 10X Collective Investment Schemes (previously CoreShares Collective Investment Scheme) and 10X Exchange Traded Fund Scheme (previously CoreShares Index Tracker Collective Investment Scheme) (the 'Schemes') and their respective portfolios for the year ended 31 December 2023. Market Review The year began with global inflation moderating after reaching its highest levels in over 40 years, initiating one of the most aggressive interest rate hiking cycles seen in four decades. Such rapid rate hikes typically lead to disruptions, and this time, they resulted in the failure of Silicon Valley Bank (SVB) and other regional banks, culminating in the downfall of Credit Suisse. However, swift intervention from central banks, coupled with an infusion of liquidity, quickly stabilized the markets and prevented broader contagion. Simultaneously, the excitement surrounding AI advancements, particularly with the public release and adoption of Chat-GPT, propelled US equity markets to new heights. The moderation of commodity prices, which had previously fueled global inflation, had adverse effects on South Africa's fiscal outlook, exerting negative pressure on the Rand and local bonds. In Q3, global financial conditions tightened as the yield on US government bonds surpassed 5%, weighing down growth assets. However, a dovish central bank meeting prompted the market to anticipate an aggressive interest rate-cutting cycle, boosting global risk assets and concluding the year on a strong note. Given the Rand's depreciation throughout the year, offshore assets outperformed local assets in 2023. Returns across asset classes were strong, ranging from 6.9% for SA inflation-linked bonds to over 33% for developed market equities. This saw pleasing returns across our unit trust range, despite the negative news flow and on the back of soft market returns in 2022. This underscores the importance of maintaining a long-term investment horizon and staying invested through market cycles to meet investment goals. Overview of the funds: In December 2022, CoreShares Holdings (Pty) Limited and its subsidiaries including CoreShares Index Tracker Managers (RF) Pty Limited were acquired by 10X Investments (Pty) Ltd. Following the acquisition, a project to amalgamate and restructure funds managed under the CoreShares Collective Investment Scheme and the 10X Collective Investment Scheme was undertaken in October 2023. As a result of the amalgamation, various funds moved between the two schemes and management companies, and as such, were seen to be closed in one scheme and opened in the other. The following funds which were previously managed under the CoreShares Collective Investment Scheme were closed, and are therefore not considered a going concern under the 10X Collective Investment Scheme: 1. CoreShares OutAggressive Index Fund 2. CoreShares OutCautious Index Fund 3. CoreShares OutModerate Index Fund 4. CoreShares OutStable Index Fund The funds managed from the start of the year are: 1. CoreShares Total World Stock Tracker Feeder Fund 2. CoreShares Wealth Accumulation Fund 3. CoreShares S&P SA Top50 Tracker Fund 4. CoreShares OutCautious Index Fund 5. CoreShares OutStable Index Fund 6. CoreShares OutModerate Index Fund 7. CoreShares OutAggressive Index Fund 8. CoreShares Stable Income Fund 9. CoreShares Yield Selected Bond Index Fund The remaining funds have been renamed from 'CoreShares' to '10X.' The funds are now named; 1. 10X Total World Stock Tracker Feeder Fund 2. 10X Wealth Accumulation Fund 3. 10X S&P SA Top50 Tracker Fund 4. 10X Stable Income Fund 5. 10X Yield Selected Bond Index Fund The funds opened under this Collective Investment Scheme are as follows; 1. 10X Income Fund 2. 10X Your Future Fund 3. 10X Defensive Fund 4. 10X Moderate Fund 5. 10X MSCI World Index Feeder Fund 6. 10X Money Market Fund 7. 10X Top 60 SA Equity Index Fund 8. 10X South African Government Bond Index Fund 9. 10X South African ILB Index Fund 10. 10X SA Property Index Fund Overview of the funds established under the 10X Exchange Traded Fund Scheme ('ETF Scheme') (previously CoreShares Index Tracker Collective Investment Scheme) The funds managed from the start of the year are; 1. CoreShares S&P SA Dividend Aristocrats ETF 2. CoreShares S&P SA Top50 ETF 3. CoreShares SA Property Income ETF 4. CoreShares S&P Global Dividend Aristocrats ETF 5. CoreShares S&P 500 Index Feeder ETF 6. CoreShares Total World Stock Feeder ETF 7. CoreShares S&P Global Property ETF 8. CoreShares Yield Selected Bond ETF 9. CoreShares Scientific Beta Multi Factor Index ETF 10. CoreShares Wealth GOVI Bond ETF Launch of new funds During 2023, our fund range was extended with the launch of four new funds, including one of the first actively managed ETFs listed on the JSE: 1. CoreShares Wealth Top 20 Capped ETF 2. CoreShares Wealth Next 40 Equal Weighted ETF 3. CoreShares Income Actively Managed ETF 4. CoreShares All Asia Actively Managed ETF As part of the amalgamation the names of the ETFs changed from 'CoreShares' to '10X'. The ETFs are now named; 1. 10X S&P SA Dividend Aristocrats ETF 2. 10X S&P SA Top50 ETF 3. 10X SA Property Income ETF 4. 10X S&P Global Dividend Aristocrats ETF 5. 10X S&P 500 Index Feeder ETF 6. 10X Total World Stock Feeder ETF 7. 10X S&P Global Property ETF 8. 10X Yield Selected Bond ETF 9. 10X Scientific Beta Multi Factor Index ETF 10. 10X Wealth GOVI Bond ETF 11. 10X Wealth Top 20 Capped ETF 12. 10X Wealth Next 40 Equal Weighted ETF 13. 10X All Asia Actively Managed ETF 14. 10X Income Actively Managed ETF Assets under management as at 31 December 2023 were R42.9BN. Comment Despite significant operational change during the year, it is pleasing to see the growth across our fund range underscoring the positive contribution 10X is making to the local savings and investments market. As a board and management team we remain positive and steadfast as we aim to grow and improve the company's investment proposition and our role within the industry. There were no circumstances during the year which affected the financial affairs of the Manager and its Portfolios. All the Portfolios complied with their respective investment policies and objectives as contained in the supplemental deeds. There were no qualifications made by in the auditor's report on the financial statements. Copies of the audited annual financial statements 10X Fund Managers (RF) (Pty) Ltd, the 10X Collective Investment Scheme, and 10X Exchange Traded Fund Scheme are available, free of charge, on request by email to info@10x.co.za. To our team of employees and our stakeholders a note of thanks for your continued hard work and dedication. To our valued clients, thank you for your sustained loyalty and invaluable support. Yours sincerely, Marc Weber Chairman 22 May 2024 Important notice: In terms of the Collective Investment Schemes Control Act, the trustees of all unit trust companies must report on their adherence to limitations imposed on investing, borrowing powers and the general provisions of the Act and Trust Deed. Our trustees, FirstRand Bank Limited acting through its RMB Trustee Services division, have released the 10X Collective Investment Scheme's and 10X Exchange Traded Fund Scheme's report for 2023. The report does not detail any material breaches and is available from our head office. 20 May 2024 The Directors 10X Index Fund Managers (RF) (PTY) Ltd Suite 105 Sovereign Quav 34 Sommerset Road Green Point Cape Town 8005 Dear Sir/Madam TRUSTEE REPORT ON THE 10X EXCHANGE TRADED FUND SCHEME As Trustees to the 10X Exchange Traded Fund Scheme ('the Scheme'), we are required in terms of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) ('the Act') to report to participatory interest holders on the administration of the Scheme during each annual accounting period. We advise for the period 1 January 2023 to 31 December 2023 we reasonably believe that the Manager has administered the Scheme in accordance with: (i) the limitations imposed on the investment and borrowing powers of the manager by the Act; and (ii) the provisions of the Act and the relevant deeds. We confirm that according to the records available to us there were no material instances of compliance contraventions and therefore no consequent losses incurred by the portfolios in the year. Yours faithfully Anton Rijntjes Ruan van Dyk Head Trustee Services Fiduciary Portfolio Oversight Manager Rand Merchant Bank Rand Merchant Bank A division of FirstRand Bank Limited A division of FirstRand Bank Limited CORPORATE AND INVESTMENT BANKING 3 Merchant Place PO Box 786273 Switchboard +27 11 282 8000 Cnr Fredman Dr and Bute Lane Sandton 2146 Website rmb.co.za Sandton 2196 South Africa Date: 23-05-2024 05:31:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.