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Wisdomtree Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Net income up 119.2% year-over-year to $23.3 million or diluted EPS $0.17

Revenues up 71.4% year-over-year to $80.8 million

U.S. pre-tax margin of 52%; consolidated pre-tax margin of 49%

Declares $0.08 quarterly dividend and $0.25 special dividend

New York, NY (GlobeNewswire) October 30, 2015 WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor and asset manager today reported net income of $23.3 million for the third quarter of 2015 or $0.17 per share on a fully diluted basis. This compares to $10.6 million in the third quarter of 2014 and $24.2 million for the second quarter of 2015.

WisdomTree CEO and President Jonathan Steinberg said, WisdomTree generated strong financial results and achieved a solid third quarter despite a challenging market environment. These results reflect our overall financial strength and demonstrate the profitable, scalable and highly efficient nature of our operating model.

Mr. Steinberg continued, WisdomTree is ideally positioned for the future of asset management, as we continue to enhance our global ETF platform through investments in headcount, product and client-facing services. The structural shift to passive investing and ETFs is continuing, the appetite for investment innovations like Smart Beta and Currency Hedging is growing and a decisive move toward greater transparency in financial products and advice is more pronounced than ever. These are all trends that will continue to be advantageous to WisdomTree going forward.

Mr. Steinberg concluded, In reflection of our growing financial resources, we are pleased to further enhance our capital management program through the addition of a $0.25 special dividend. We first instituted a $0.08 regular quarterly dividend and a $100 million share buyback program in the third quarter of 2014. Since that time we have achieved robust growth in assets, revenues and earnings while continuing to make investments for future growth. We are demonstrating an ability to profitably grow the business, reinvest for future growth and return surplus capital to our shareholders.

Summary Operating and Financial Highlights

Three Months Ended

Change From

Operating Highlights

Sept. 30,

Jun. 30,

Jun. 30,

Sept. 30,

U.S. listed ETFs

($, in billions)

Net inflows/(outflows)

Average AUM

Average advisory fee

Market share of U.S. industry inflows

European listed ETPs

($, in millions)


($, in millions, except per share amounts)

Consolidated Results:

Total revenues

Pre-tax income

Diluted earnings per share



Pre-tax margin

Gross margin


Gross margin is defined as total revenues less fund management and administration expenses and third-party sharing arrangements.

Nine Months Ended

($, in billions):



Recent Business Developments

On October 30, 2015, the Company announced it will enter the Commodity ETF space through the acquisition of The GreenHaven Commodity Funds: the GreenHaven Continuous Commodity Index Fund (GCC) and the GreenHaven Coal Fund (TONS)

On October 29, 2015, the Company announced the launch of the WisdomTree Europe Local Recovery Fund (EZR), the WisdomTree Strong Dollar Emerging Markets Equity Fund (EMSD) and the WisdomTree Global ex-U.S. Hedged Real Estate Fund (HDRW)

WisdomTree Europe:

Listed the WisdomTree UK Equity Income UCITS ETF (WUKD) in London on the London Stock Exchange on October 8, 2015; and listed the WisdomTree Emerging Asia Equity Income UCITS ETF (DEMA) in London on the London Stock Exchange on October 12, 2015, and in Italy on Borsa Italiana and in Germany on Börse Xetra on October 15, 2015.

Listed two Boost ETPs in Italy on Borsa Italiana on October 19, 2015.

Assets Under Management and Net Inflows

U.S. listed ETF assets under management (AUM) was $53.0 billion at the end of the third quarter, up 35.0% for the year and up 48.1% from the third quarter of last year primarily due to record net inflows. However, AUM declined 13.5% from the end of the second quarter of this year due to $7.6 billion of negative market movement as well as $0.7 billion of net outflows, primarily in our emerging market ETFs.

European listed AUM increased to $695.7 million at the end of the third quarter, up from the third quarter of last year and the second quarter of this year primarily due to net inflows, partially offset by negative market movement.


In evaluating the performance of our U.S. listed equity, fixed income and alternative ETFs against actively managed and index based mutual funds and ETFs, 91% of the $52.4 billion invested in our ETFs and 55% (33 of 60) of our ETFs outperformed their comparable Morningstar average since inception as of September 30, 2015.

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Third Quarter Financial Discussion

Total revenues increased 71.4% from the third quarter of 2014 primarily due to higher average AUM from strong inflows. Total revenues declined 1.0% from the second quarter of 2015 primarily due to lower average AUM due to negative market movement in our U.S. listed ETFs. Revenues from our European listed ETPs increased to $1.3 million from $0.2 million in the third quarter of 2014 primarily due to higher inflows into our Boost branded ETPs. The average advisory fee for our U.S. listed ETFs increased to 0.53% as compared to 0.52% for the third quarter of 2014...