Singapore Exchange (SGX) Group has divested its wholly owned index provider Scientific Beta to STOXX Ltd as the exchange operator sharpens its focus on its core growth businesses.
No financial terms were disclosed for this transaction.
SGX said the sale is part of its portfolio management strategy, allowing it to redeploy capital towards its securities, derivatives and market data businesses.
Scientific Beta develops factor-based equity indices and portfolio analytics for institutional investors. Founded in 2012 within EDHEC-Risk Institute, the company employs about 40 people across France, Singapore, the UK and Australia and specialises in research-driven index strategies.
“This divestment allows SGX to focus on areas where we see the strongest opportunities to deliver impact for our clients, partners and shareholders, and to further strengthen our multi-asset offering,” said Ng Yao Loong, SGX’s head of global financial markets.
In a separate statement, the company said the deal would strengthen its offering for institutional investors seeking systematic, research-driven investment strategies.
“This acquisition will accelerate our strategy to deliver scalable, research-driven, and cost-effective index solutions to institutional investors globally,” said Gary Retelny, CEO of STOXX. “It strengthens our ability to meet the growing demand for systematic, rules-based strategies.”
STOXX, a Switzerland-based global index provider and part of Deutsche Börse Group’s ISS STOXX business, said the acquisition combines Scientific Beta’s factor research and portfolio construction capabilities with its own index platform. The combined platform will span research, signal development, portfolio construction and benchmark implementation.
Scientific Beta became part of SGX after the exchange acquired a majority stake in the business in 2020 before taking full ownership in 2023 as part of its efforts to expand its proprietary index offerings.
Following the transaction, SGX will retain its global multi-asset iEdge platform and continue expanding its index business as part of its broader multi-asset offering. Scientific Beta, meanwhile, will operate under STOXX, which SGX said is well positioned to further develop the company’s research capabilities and broaden its international reach.
The divestment marks the latest portfolio reshuffle by SGX as the exchange operator focuses on businesses with stronger long-term growth potential while continuing to build out its multi-asset marketplace.
