Singapore Exchange (SGX) has recently acquired 93 per cent of Scientific Beta* shares. The Singapore holding of the EDHEC Endowment Fund (SHEEF) will own the rest 7 per cent to allow the EDHEC Business School to retain a board seat. The cost of this operation reached 279S$ million and will offer a much diverse range of products to investors.
*Scientific Beta, initially established in 2011 by the EDHEC Business School, is a research-based index firm with smart beta indices. It is estimated that more than 55US$ billion assets track these indexes. Furthermore, the number of assets using factor-based strategies is predicted to hit 2.7US$ trillion this year.
The singularity of Scientific Beta relies on the wide range of indices it provides. Contrary to the majority of markets indexes, they do not rely on typical factors such as volatility or dividend yield and bring new ways to represent investment strategies.
SGX’s CEO, Loh Boon Chye, stated that “Besides being complementary to our existing SGX Index Edge thematic and custom index capabilities, we also see new product opportunities based on Scientific Beta’s indices”. Noël Amenc, CEO of Scientific Beta, additionally added “Together we will drive continued development in the smart beta and sustainable finance space, leveraging Scientific Beta’s academic rigor and SGX’s product development capabilities.”
SGX will maintain a strong collaboration with the EDHEC Business School.