ISS STOXX acquires Scientific Beta

ISS STOXX has acquired Scientific Beta from Singapore Exchange (SGX) in a bid to expand its presence within the asset owner segment and deepen engagement with large institutional investors.

Scientific Beta was established in 2012 by the EDHEC-Risk Institute, an academic institution in the field of fundamental and applied research for the investment industry. Scientific Beta is known for its research capabilities and its suite of smart beta, climate, and enhanced cap-weight indices.

The firm was acquired by SGX in 2020 and has approximately 40 full-time employees based primarily in Nice as well as London, Singapore and Sydney.

"This acquisition will accelerate our strategy to deliver scalable, research-driven, and cost-effective index solutions to institutional investors globally," ISS STOXX president and chief executive Gary Retelny said.

"It strengthens our ability to meet the growing demand for systematic, rules-based strategies that are undergirded by world-class research, for institutional investors across the globe."

STOXX general manager Axel Lomholt noted asset owners are increasingly seeking strategies that combine academic rigor with real-world implementation at scale.

"Bringing Scientific Beta into STOXX strengthens our ability to meet this demand, offering clients seamless access to advanced factor research, robust portfolio construction, and scalable index implementation within a single, integrated platform," Lomholt said.

"The addition of Scientific Beta and its highly talented team underscore our commitment to delivering differentiated indexing solutions, grounded in industry leading research, that enhance our clients' investment processes."

SGX Group said the divestment positions Scientific Beta for its next phase of growth and under new ownership it will be well-equipped to advance its research-driven capabilities and expand global reach.

SGX Group head of global financial markets Ng Yao Loong said: "We are pleased to transition Scientific Beta to a new owner well-positioned to scale its capabilities and distribution."

Financial Standard is owned by ISS Market Intelligence, which is part of ISS STOXX.