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SGX invests in Smartkarma (Business Times)

Jul 8, 2019

I was asked for my thoughts on SGX | My Gateway’s recent acquisition of Smartkarma, a digital investment research network.

I told The Business Times that I think this move will be positive, especially since I am an advocate of finding great value in less well-known (and researched) small caps and because liquidity in the Singapore market has also been thinning.

With research houses, which are typically heavy cost centres for banks and brokerages, continuing to downsize in recent times, Smartkarma may fill the gap and allow analysts to embark on a freelancing career.

This also comes on the back of MiFID, which has been in play since 2018. European banks have already cut back on research teams. This has also spilled over into the US and Asian markets. Several banks here have actively taken steps to scale down their in-house research teams, and outsource the function. This could be beneficial for Smartkarma.