SGX will buy 93% of Scientific Beta for 186 million euros ($206 million) in cash. Assets replicating Scientific Beta’s smart-beta indexes have risen more than 10-fold in four years and now total $55 billion, SGX said.
SINGAPORE: Singapore Exchange Ltd. will acquire a majority stake in Scientific Beta Pte., an index provider for products enabling investors to track market themes, an increasingly significant trend in global fund management.
The target company -- incorporated in Singapore, with offices in France, the U.K. and the U.S. -- specializes in factor-based strategies, a market that’s set to reach $2.7 trillion this year, the exchange said. The move comes as passive strategies are gaining greater popularity over actively-managed approaches.
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