- ISIN US97717P1049
WisdomTree Investments, Inc.
WisdomTree Announces First Quarter 2015 Results
DGAP-News: WisdomTree Investments, Inc.
2015-05-01 / 13:00
---------------------------------------------------------------------
Net income of $12.1 million or diluted EPS $0.09
Record $13.5 billion in net inflows for the quarter with AUM reaching record
$55.8 billion
Net inflow market share of 23.8% for the quarter
Declares $0.08 quarterly dividend
NEW YORK, May 1, 2015 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc.
(Nasdaq:WETF), an exchange-traded fund ('ETF') and exchange-traded product
('ETP') sponsor and asset manager today reported net income of $12.1 million
for the first quarter of 2015 or $0.09 per share on a fully diluted basis. This
compares to $30.2 million in the first quarter of 2014 (which included a
non-recurring tax benefit of $13.7 million) and $9.6 million in the fourth
quarter of 2014. Included in the quarter was a loss of $1.8 million, or $0.01
per diluted EPS, associated with the Company's European listed ETP business,
which was acquired in April 2014.
WisdomTree CEO and President Jonathan Steinberg said, 'We reported a record
$13.5 billion in net inflows in the first quarter in the U.S., making
WisdomTree one of the fastest-growing companies within the ETF and broader
asset management industry in 2015 to date. WisdomTree's industry-leading growth
underscores our ability to identify and disseminate useful and differentiated
investment solutions to an ever-growing ETF market. We also recorded record
revenues and pre-tax earnings in the quarter.'
'Now the sixth largest ETP sponsor in the world with $61.2 billion in AUM
globally, we are continuing to experience strong organic growth in the second
quarter, led by our currency hedged equity ETFs. Importantly, we are continuing
to plant the seeds for future growth as we execute against the strategic growth
initiatives we previously outlined for the year, including investments in
people, products and technology.'
Summary Operating and Financial Highlights
Three Months Ended Change From
-------------------------------------------------
Mar. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
Operating Highlights 2015 2014 2014 2014 2014
-------------------------------------------------
US listed ETFs ($, in
billions):
AUM $55.8 $39.3 $33.9 41.9% 64.6%
Net inflows $13.5 $4.5 ($0.5) 200.7% n/a
Average AUM $46.4 $37.7 $33.9 23.1% 37.0%
Average advisory fee 0.52% 0.52% 0.51% -- +.01
Market share of industry 23.8% 3.8% -- +20.0 --
inflows
European listed ETPs ($, in
millions):
AUM $334.6 $181.2 -- 84.7% --
Net inflows $174.2 $98.2 -- 77.4% --
Average advisory fee 0.75% 0.73% -- +.02 --
Financial Highlights ($, in
millions, except per share
amounts):
Consolidated Results:
Total revenues $60.1 $49.6 $42.9 21.3% 40.1%
Pre-tax income $21.0 $16.7 $16.5 26.0% 27.6%
Net income $12.1 $9.6 $30.2 25.4% (60.1%)
Diluted earnings per share $0.09 $0.07 $0.22 0.02 (0.13)
Pre-tax margin 35.0% 33.6% 38.4% +1.4 -3.4
US listed ETFs:
Gross margin1 (non-GAAP) 83.2% 82.5% 78.6% +0.7 +4.6
Pre-tax margin 38.3% 37.8% 38.4% +0.5 -0.1
-------------------------------
1 Gross margin is defined as total revenues less fund management and
administration expenses and third-party sharing arrangements.
Recent Business Developments
-- On February 17, 2015, the WisdomTree Europe Hedged Equity Fund (HEDJ)
surpassed $10 billion in assets
-- On March 4, 2015, the Company launched the Europe Hedged SmallCap Equity
Fund (EUSC)
-- On March 9, 2015, the Company surpassed $50 billion in assets under
management
-- On March 20, 2015, the WisdomTree Europe Hedged Equity Fund (HEDJ) received
ETF.com award for 'ETF of the Year'
-- On April 9, 2015, the Company launched the Japan Hedged Dividend Growth
Fund (JHDG)
-- On April 16, 2015, the Company announced it named David Yates Chief
Information Officer
-- On April 20, 2015, the Company announced it named Alisa Maute Head of U.S.
Sales
-- WisdomTree Europe:
-- Listed six WisdomTree UCITS ETFs in Germany on the Deutsche Börse on
February 15, 2015; listed six WisdomTree UCITS ETFs in Switzerland on
the SIX Swiss Exchange on March 15, 2015; listed the ISEQ 20(R) UCITS ETF
(WTIE) in Ireland on the Irish Stock Exchange on April 20, 2015 and in
London on the London Stock Exchange on April 21, 2015; and announced it
named Nizam Hamid Head of European Sales on April 23, 2015
-- Listed seven Boost ETP ETCs in Italy on the Borsa Italiana on April 9,
2015
Assets Under Management and Net Inflows
US listed ETF assets under management ('AUM') reached a record $55.8 billion at
March 31, 2015, up 42% from December 31, 2014, primarily due to record inflows
of $13.5 billion. US listed AUM was up 65% from March 31, 2014.
European listed AUM was $334.6 million, up 85% from $181.2 million at December
31, 2014 primarily due to $174.2 million of net inflows, primarily in the
company's Boost branded ETPs.
Performance
In evaluating the performance of our US listed equity, fixed income and
alternative ETFs against actively managed and index based mutual funds and
ETFs, 90.2% of the $49.5 billion invested in our ETFs and 60% (31 of 52) of our
ETFs outperformed their comparable Morningstar average since inception as of
March 31, 2015.
For more information about WisdomTree ETFs including standardized performance,
please click here or visit www.wisdomtree.com.
First Quarter Financial Discussion
Revenues
Total revenues increased 40.1% from the first quarter of 2014 and 21.3%
compared to the fourth quarter of 2014 to a record $60.1 million primarily due
to higher average AUM from strong inflows. Revenues from our European listed
ETPs, which were acquired in April 2014, increased to $0.6 million from $0.4
million in the fourth quarter of 2014 primarily due to higher inflows for the
Boost branded ETPs. The average advisory fee for our US listed ETFs increased
to 0.52% as compared to 0.51% for the first quarter of 2014 due to the change
in the mix of our AUM and remained the same at 0.52% as compared to the fourth
quarter of 2014.
Margins
Gross margin for our US listed ETFs, which is our total revenues less fund
management and administration expenses and third party sharing arrangements,
was 83.2% in the first quarter of 2015 as compared to 78.6% in the first
quarter of 2014 and 82.5% in the fourth quarter of 2014. The increase was
primarily due to beneficial pricing changes for our fund accounting,
administration and custody services, which took effect in April 2014, as well
as higher average AUM.
Consolidated pre-tax margin was 35.0% in the first quarter of 2015. Pre-tax
margin for our U.S. listed ETFs was 38.3% on average U.S. listed AUM of $46.4
billion. The Company's margins were compressed in the first quarter due to the
timing difference between when the Company recorded higher compensation costs
from record inflows levels versus when it recognizes the full impact of the
revenues from these inflows.
Expenses
Total expenses increased 48.0% from the first quarter of 2014 and 18.8%
compared to the fourth quarter of 2014 to $39.1 million. Included in the
quarter was $2.4 million of expenses associated with our European listed ETPs.
-- Compensation and benefits expense increased 110% from the first quarter of
2014 to $19.6 million due to higher accrued incentive compensation due to
our record setting inflow levels experienced in the quarter as well as
higher headcount related expenses to support our growth. Included in the
quarter was $1.1 million in compensation costs for employees associated
with our European listed ETPs. Our headcount was 109 in the US and 136
globally at the end of the quarter.
-- Fund management and administration expense increased 10.9% from the first
quarter of 2014 to $10.2 million. Fees associated with higher inflow
levels, average AUM and number of ETFs increased, and were partly offset by
lower fees as a result of changing our fund accounting, administration and
custody service provider in April 2014. We also incurred additional costs
for our European listed ETPs which were acquired in April 2014. This
expense increased 13.8% compared to the fourth quarter of 2014 due to
expenses associated with higher inflow levels and additional costs for the
WisdomTree branded ETFs which were launched in Europe in the fourth
quarter. We had 70 US listed ETFs and 63 European listed ETPs at the end of
the quarter.
-- Marketing and advertising expense increased 19.3% from the first quarter of
2014 and 7.2% from the fourth quarter to $3.1 million primarily due to
higher levels of advertising related activities to support our growth.
-- Sales and business development expense increased 46.0% from the first
quarter of 2014 to $1.9 million primarily due to higher spending for sales
related activities. This expense was relatively unchanged compared to the
fourth quarter of 2014.
-- Professional and consulting fees decreased 18.5% from the first quarter of
2014 to $1.5 million. In the first quarter of last year, we incurred
advisory fees in connection with our acquisition of Boost. This expense
decreased 42.9% compared to the fourth quarter of 2014 primarily due to
lower fees relating to strategic consulting services.
-- Occupancy, communication and equipment expense was essentially unchanged at
$0.9 million as compared to the first and fourth quarters of last year.
-- Depreciation and amortization expense was also relatively unchanged at $0.2
million as compared to the first and fourth quarters of last year.
-- Third-party sharing arrangements expense increased to $0.3 million in the
first quarter of 2015 as compared to the first quarter of 2014 primarily
due to higher fees for our marketing agents in Latin America and listing
our ETFs on a third party platform.
-- Acquisition contingent payment expense was $0.3 million in the first
quarter. This represents the current expense accrual for expected payments
due to the former Boost shareholders related to our acquisition in April
2014 and is primarily driven by increased AUM derived from our European
business.
-- Income tax expense was $9.0 million for the first quarter of 2015. The
effective tax rate on our US listed ETF business increased to 39.4% from
38.3% in the fourth quarter of last year due to state taxes. The Company's
overall effective tax rate was 42.6% due to the non-deductibility of losses
in our European ETP business. These losses may be recognized in the future
after the European business is profitable. The Company recorded a tax
benefit of $13.7 million in the first quarter of last year related to its
deferred tax asset, which previously had been recorded with a full
valuation allowance.
Balance Sheet
As of March 31, 2015, the Company had total assets of $217.9 million which
consisted primarily of cash and cash equivalents and investments of $173.3
million. There were approximately 135.6 million shares of common stock
outstanding as of March 31, 2015. Fully diluted weighted average shares
outstanding were 137.3 million for the first quarter.
Quarterly Dividend and Stock Buyback
The Company's Board of Directors declared a quarterly cash dividend of $0.08
per share of the Company's common stock. The dividend will be paid on May 27,
2015 to stockholders of record as of the close of business on May 13, 2015. In
addition, during the quarter, the Company purchased approximately 773,000
shares for $14.1 million.
Conference Call
WisdomTree will discuss its results and operational highlights during a
conference call on Friday, May 1, 2015 at 9:00 a.m. ET. The call-in number will
be (877) 303-7209. Anyone outside the U.S. or Canada should call (970)
315-0420. The slides used during the presentation will be available at
http://ir.wisdomtree.com. For those unable to join the conference call at the
scheduled time, an audio replay will be available on http://ir.wisdomtree.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our
management's beliefs and assumptions and on information currently available to
our management. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, these statements relate to future
events or our future financial performance, and involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed
or implied by these forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as 'may,' 'will,' 'should,'
'expects,' 'intends,' 'plans,' 'anticipates,' 'believes,' 'estimates,'
'predicts,' 'potential,' 'continue' or the negative of these terms or other
comparable terminology. These statements are only predictions. You should not
place undue reliance on forward-looking statements because they involve known
and unknown risks, uncertainties and other factors, which are, in some cases,
beyond our control and which could materially affect results. Factors that may
cause actual results to differ materially from current expectations include,
among other things, the risks described below. If one or more of these or
other risks or uncertainties occur, or if our underlying assumptions prove to
be incorrect, actual events or results may vary significantly from those
implied or projected by the forward-looking statements. No forward-looking
statement is a guarantee of future performance. You should read this press
release completely and with the understanding that our actual future results
may be materially different from any future results expressed or implied by
these forward-looking statements.
In particular, forward-looking statements in this press release may include
statements about:
-- anticipated trends, conditions and investor sentiment in the global markets
and ETPs;
-- anticipated levels of inflows into and outflows out of our ETPs;
-- our ability to deliver favorable rates of return to investors;
-- our ability to develop new products and services;
-- our ability to maintain current vendors or find new vendors to provide
services to us at favorable costs;
-- our ability to successfully expand our business into non-U.S. markets;
-- timing of payment of our cash income taxes;
-- competition in our business; and
-- the effect of laws and regulations that apply to our business.
Our business is subject to many risks and uncertainties, including without
limitation:
-- Recent historical growth may not provide an accurate representation of the
growth we may experience in the future, which may make it difficult to
evaluate our future prospects.
-- Challenging global market conditions associated with declining prices of
securities can adversely affect our business by reducing the market value
of the assets we manage or causing customers to sell their fund shares and
trigger redemptions.
-- Fluctuations in the amount and mix of our AUM may negatively impact revenue
and operating margin.
-- We derive a substantial portion of our revenue from a limited number of
products - in particular two funds, the WisdomTree Europe Hedged Equity
Fund and the WisdomTree Japan Hedged Equity Fund - and, as a result, our
operating results are particularly exposed to the performance of those
funds, investor sentiment toward the strategies pursued by those funds and
our ability to maintain the AUM of those funds.
-- Most of our AUM are held in our U.S. listed ETFs that invest in foreign
securities and we therefore have substantial exposure to foreign market
conditions and are subject to currency exchange rate risks.
-- We derive a substantial portion of our revenue from international hedged
equity ETFs and are exposed to the market-specific political and economic
risks, as well as general investor sentiment regarding monetary policy of
those markets.
-- We derive a substantial portion of our revenue from products invested in
securities of Japanese and European companies and are exposed to the
market-specific political and economic risks, as well as general investor
sentiment regarding future growth of those markets and currency
fluctuations.
-- We derive a significant portion of our revenue from products invested in
emerging markets and are exposed to the market-specific political and
economic risks as well as general investor sentiment regarding future
growth of those markets.
-- Many of our ETPs and ETFs have a limited track record, and poor investment
performance could cause our revenue to decline.
-- We depend on third parties to provide many critical services to operate our
business and our ETPs and ETFs. The failure of key vendors to adequately
provide such services could materially affect our operating business and
harm our customers.
Other factors, such as general economic conditions, including currency exchange
rate fluctuations, also may have an effect on the results of our operations.
For a more complete description of the risks noted above and other risks that
could cause our actual results to differ from our current expectations, please
see the section entitled 'Risk Factors' in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2014.
The forward-looking statements in this press release represent our views as of
the date of this press release. We anticipate that subsequent events and
developments may cause our views to change. However, while we may elect to
update these forward-looking statements at some point in the future, we have no
current intention of doing so except to the extent required by applicable law.
Therefore, these forward-looking statements do not represent our views as of
any date other than the date of this press release.
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe
(collectively, 'WisdomTree'), is an exchange-traded fund ('ETF') and
exchange-traded product ('ETP') sponsor and asset manager headquartered in New
York. WisdomTree offers products covering equities, fixed income, currencies,
commodities and alternative strategies. WisdomTree currently has approximately
$61.2 billion in assets under management globally.
WisdomTree(R) is the marketing name for WisdomTree Investments, Inc. and its
subsidiaries worldwide.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended % Change From
-----------------------------------------------
Mar. 31, Dec. 31, Mar. 31, Dec. Mar.
31, 31,
2015 2014 2014 2014 2014
-----------------------------------------------
Revenues
Advisory fees $ 59,869 $ 49,327 $ 42,609 21.4% 40.5%
Other income 272 273 311 -0.4% -12.5%
-----------------------------------------------
Total revenues 60,141 49,600 42,920 21.3% 40.1%
Expenses
Compensation and benefits 19,601 14,099 9,355 39.0% 109.5%
Fund management and 10,168 8,932 9,168 13.8% 10.9%
administration
Marketing and advertising 3,076 2,869 2,578 7.2% 19.3%
Sales and business development 1,900 1,914 1,301 -0.7% 46.0%
Professional and consulting 1,463 2,560 1,795 -42.9% -18.5%
fees
Occupancy, communication and 918 943 900 -2.7% 2.0%
equipment
Depreciation and amortization 220 221 192 -0.5% 14.6%
Third party sharing 283 282 10 0.4% 2730.0%
arrangements
Acquisition contingent payment 257 -- -- n/a n/a
Other 1,235 1,101 1,142 12.2% 8.1%
-----------------------------------------------
Total expenses 39,121 32,921 26,441 18.8% 48.0%
-----------------------------------------------
Income before taxes 21,020 16,679 16,479 26.0% 27.6%
Income tax expense/(benefit) 8,958 7,057 (13,725) -- --
-----------------------------------------------
Net income $ 12,062 $ 9,622 $ 30,204 25.4% -60.1%
===============================================
Income before taxes per share - $ 0.16 $ 0.13 $ 0.13
basic
Income before taxes per share - $ 0.15 $ 0.12 $ 0.12
diluted
Net income per share - basic $ 0.09 $ 0.07 $ 0.23
Net income per share - diluted $ 0.09 $ 0.07 $ 0.22
Weighted average common shares - 134,075 132,816 130,934
basic
Weighted average common shares - 137,311 138,787 138,667
diluted
WISDOMTREE INVESTMENTS, INC.
NON-GAAP SUPPLEMENTAL CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
US European
----------------------------------------------
Listed Listed US Listed Business
----------------------------------------------
Business Business Total % Change
From
----------------
Q1/15 Q1/15 Q1/15 Q1/15 Q4/14 Q1/14 Q4/14
Q1/14
-----------------------------------------------------------------------------
Revenu
es
Advis $ 59,346 $ 523 $ 59,869 $ 59,346 $ 48,966 $ 42,609 21.2%
39.3%
ory
fees
Other 234 38 272 234 243 311 -3.7%
-24.8%
inco
me
-----------------------------------------------------------------------------
Tot 59,580 561 60,141 59,580 49,209 42,920 21.1%
38.8%
al
re
ven
ues
Expens
es
Compe 18,475 1,126 19,601 18,475 13,127 9,355 40.7%
97.5%
nsati
on
and
bene
fits
Fund 9,733 435 10,168 9,733 8,334 9,168 16.8%
6.2%
mana
gemen
t and
admi
nistr
ation
Marke 2,952 124 3,076 2,952 2,696 2,578 9.5%
14.5%
ting
and
adve
rtisi
ng
Sales 1,865 35 1,900 1,865 1,620 1,301 15.1%
43.4%
and
busi
ness
deve
lopme
nt
Profe 1,298 165 1,463 1,298 2,456 1,795 -47.1%
-27.7%
ssion
al
and
cons
ultin
g
fees
Occup 847 71 918 847 850 900 -0.4%
-5.9%
ancy,
comm
unica
tion
and
equi
pment
Depre 219 1 220 219 219 192 0.0%
14.1%
ciati
on
and
amor
tizat
ion
Third 283 -- 283 283 282 10 0.4%
2730.0%
part
y
shar
ing
arra
ngeme
nts
Acqui -- 257 257 -- -- -- n/a
n/a
sitio
n
cont
ingen
t
paym
ent
Other 1,091 144 1,235 1,091 1,007 1,142 8.3%
-4.5%
-----------------------------------------------------------------------------
Tot 36,763 2,358 39,121 36,763 30,591 26,441 20.2%
39.0%
al
ex
pen
ses
-----------------------------------------------------------------------------
Income 22,817 (1,797) 21,020 22,817 18,618 16,479 22.6%
38.5%
/(loss
)
befor
e
taxes
Income 8,987 (30) 8,958 8,987 7,131 (13,725) 26.0%
n/a
tax
expen
se/(be
nefit)
-----------------------------------------------------------------------------
Net $ 13,830 $ (1,767) $ 12,062 $ 13,830 $ 11,487 $ 30,204 20.4%
-54.2%
incom
e/(los
s)
=============================================================================
Pretax 38.3% 35.0%
margi
n
Gross 83.2% 82.6%
margi
n
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amounts)
March 31, December 31,
2015 2014
--------------------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 151,701 $ 165,284
Accounts receivable 24,600 18,176
Deferred tax asset, net 2,599 3,872
Other current assets 2,051 1,708
--------------------------
Total current assets 180,951 189,040
Fixed assets, net 10,153 10,356
Investments 21,629 13,990
Deferred tax asset, net 3,441 5,618
Goodwill 1,676 1,676
Other noncurrent assets 83 71
--------------------------
Total assets $ 217,933 $ 220,751
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Fund management and administration payable $ 12,648 $ 9,983
Compensation and benefits payable 11,070 14,333
Accounts payable and other liabilities 5,920 5,115
--------------------------
Total current liabilities 29,638 29,431
Other noncurrent liabilities:
Acquisition payable 2,014 1,757
Deferred rent payable 5,230 5,278
--------------------------
Total liabilities 36,882 36,466
--------------------------
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 250,000 shares
authorized:
issued: 136,971 and 134,959 1,370 1,350
outstanding: 135,553 and 133,445
Additional paid-in capital 204,752 209,216
Accumulated other comprehensive loss (106) (53)
Accumulated deficit (24,965) (26,228)
--------------------------
Total stockholders' equity 181,051 184,285
--------------------------
Total liabilities and stockholders' equity $ 217,933 $ 220,751
==========================
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
March 31, March 31,
2015 2014
---------------------
Cash flows from operating activities
Net income $ 12,062 $ 30,204
Non-cash items included in net income:
Income tax expense/(benefit) 8,608 (13,725)
Depreciation and amortization 220 192
Stock-based compensation 2,344 2,015
Deferred rent (48) 643
Deferred acquisition contingent payment 257 --
Accretion to interest income and other 3 (111)
Changes in operating assets and liabilities:
Accounts receivable (6,356) (224)
Other assets (359) 18
Fund management and administration payable 2,640 1,358
Compensation and benefits payable (3,230) (11,473)
Accounts payable and other liabilities 796 537
---------------------
Net cash provided by operating activities 16,937 9,434
---------------------
Cash flows from investing activities
Purchase of fixed assets (20) (3,527)
Purchase of investments (8,449) (154)
Proceeds from the redemption of investments 808 61
---------------------
Net cash used in investing activities (7,661) (3,620)
---------------------
Cash flows from financing activities
Shares repurchased (14,070) (5,426)
Dividends paid (10,799) --
Proceeds from exercise of stock options 2,125 76
---------------------
Net cash used in financing activities (22,744) (5,350)
---------------------
Decrease in cash flows due to changes in foreign exchange (115) --
rate
---------------------
Net (decrease)/ increase in cash and cash equivalents (13,583) 464
Cash and cash equivalents - beginning of period 165,284 104,316
---------------------
Cash and cash equivalents - end of period $ 151,701 $ 104,780
=====================
Supplemental disclosure of cash flow information
Cash paid for taxes $ 356 $ 14
=====================
WisdomTree Investments, Inc.
Key Operating Statistics (Unaudited)
Three Months Ended
March 31, December 31, March 31,
2015 2014 2014
-----------------------------------
US LISTED ETFs
Total ETFs (in millions)
Beginning of period assets 39,281 35,823 34,884
Inflows/(outflows) 13,520 4,496 (502)
Market appreciation/(depreciation) 2,957 (1,038) (498)
-----------------------------------
End of period assets 55,758 39,281 33,884
-----------------------------------
Average assets during the period 46,391 37,680 33,859
Revenue Days 90 92 90
ETF Industry and Market Share (in billions)
ETF industry net inflows 56.7 119.7 14.5
WisdomTree market share of industry inflows 23.8% 3.8% 0.0%
International Hedged Equity ETFs (in
millions)
Beginning of period assets 17,760 13,971 13,348
Inflows/(outflows) 13,440 4,580 (12)
Market appreciation/(depreciation) 2,725 (791) (724)
-----------------------------------
End of period assets 33,925 17,760 12,612
-----------------------------------
Average assets during the period 24,559 15,637 13,052
US Equity ETFs (in millions)
Beginning of period assets 9,390 7,939 7,181
Inflows 294 968 189
Market appreciation 64 483 135
-----------------------------------
End of period assets 9,748 9,390 7,505
-----------------------------------
Average assets during the period 9,770 8,833 7,176
Emerging Markets Equity ETFs (in millions)
Beginning of period assets 6,187 7,495 7,448
Outflows (165) (836) (632)
Market appreciation/(depreciation) 46 (472) (63)
-----------------------------------
End of period assets 6,068 6,187 6,753
-----------------------------------
Average assets during the period 6,147 7,092 6,775
International Developed Equity ETFs (in
millions)
Beginning of period assets 3,988 4,494 3,864
Inflows/(outflows) 188 (305) 812
Market appreciation/(depreciation) 147 (201) 154
-----------------------------------
End of period assets 4,323 3,988 4,830
-----------------------------------
Average assets during the period 4,111 4,170 4,347
Fixed Income ETFs (in millions)
Beginning of period assets 1,152 1,379 1,906
Outflows (210) (164) (306)
Market appreciation/(depreciation) (38) (63) 10
-----------------------------------
End of period assets 904 1,152 1,610
-----------------------------------
Average assets during the period 1,018 1,294 1,747
Currency ETFs (in millions)
Beginning of period assets 599 362 979
Inflows/(outflows) (44) 232 (549)
Market appreciation/(depreciation) 10 5 (8)
-----------------------------------
End of period assets 565 599 422
-----------------------------------
Average assets during the period 571 456 611
Alternative Strategy ETFs (in millions)
Beginning of period assets 205 183 158
Inflows/(outflows) 17 21 (4)
Market appreciation/(depreciation) 3 1 (2)
-----------------------------------
End of period assets 225 205 152
-----------------------------------
Average assets during the period 215 198 151
Three Months Ended
March 31, December 31, March 31,
2015 2014 2014
-----------------------------------
Average ETF assets during the period
International hedged equity ETFs 53% 42% 39%
US equity ETFs 21% 23% 21%
Emerging markets equity ETFs 14% 19% 20%
International developed equity ETFs 9% 11% 13%
Fixed income ETFs 2% 3% 5%
Currency ETFs 1% 1% 2%
Alternative strategy ETFs 0% 1% 0%
-----------------------------------
Total 100% 100% 100%
-----------------------------------
Average ETF advisory fee during the period
Alternative strategy ETFs 0.95% 0.95% 0.94%
Emerging markets equity ETFs 0.71% 0.70% 0.66%
International developed equity ETFs 0.56% 0.56% 0.56%
International hedged equity ETFs 0.53% 0.51% 0.49%
Fixed income ETFs 0.52% 0.53% 0.55%
Currency ETFs 0.50% 0.49% 0.49%
US equity ETFs 0.35% 0.35% 0.35%
-----------------------------------
Blended total 0.52% 0.52% 0.51%
-----------------------------------
Number of ETFs - end of the period
International developed equity ETFs 17 17 16
US equity ETFs 13 13 13
International hedged equity ETFs 13 12 6
Fixed income ETFs 11 12 12
Emerging markets equity ETFs 8 8 7
Currency ETFs 6 6 6
Alternative strategy ETFs 2 2 2
-----------------------------------
Total 70 70 62
-----------------------------------
EUROPEAN LISTED ETPs
Total ETPs (in thousands)
Beginning of period assets 165,018 123,210
Inflows 145,381 82,175
Market depreciation (21,598) (40,367)
-------------------------
End of period assets 288,801 165,018
-------------------------
Average ETP advisory fee during the period 0.81% 0.78%
Number of ETPs - end of the period 57 50
Total UCITS ETFs (in thousands)
Beginning of period assets**** 16,179 --
Inflows 28,851 16,036
Market appreciation 816 143
-------------------------
End of period assets 45,846 16,179
-------------------------
Average ETP advisory fee during the period 0.40% 0.38%
Number of ETPs - end of the period 6 6
U.S. headcount 109 101 90
European headcount 27 23
Note: Previously issued statistics may be restated due
to trade adjustments
Source: Investment Company Institute, Bloomberg,
WisdomTree
****UCITS first launched October 24, 2014
Non-GAAP Financial Measurements
In an effort to provide additional information regarding our results as
determined by GAAP, we also disclose certain non-GAAP information which we
believe provides useful and meaningful information. The non-GAAP financial
measurements included in this release include gross margin, gross margin
percentage and our operating results for our US and European listed ETF
businesses. Our management reviews these non-GAAP financial measurements when
evaluating our financial performance and results of operations; therefore, we
believe it is useful to provide information with respect to these non-GAAP
measurements so as to share this perspective of management. Non-GAAP
measurements do not have any standardized meaning, do not replace nor are
superior to GAAP financial measurements and are unlikely to be comparable to
similar measures presented by other companies. These non-GAAP financial
measurements should be considered in the context with our GAAP results. We
disclose gross margin as a non-GAAP financial measurement to allow investors to
analyze our revenues less the direct costs paid to third parties attributable
to those revenues. We disclose the results of our US listed ETF business to
allow investors to better compare our results to the prior year as in April
2014, we acquired Boost ETP, a UK based ETP sponsor.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP to NON-GAAP RECONCILIATION
(in thousands)
(Unaudited)
Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2015 2014 2014
-----------------------------
GAAP total revenue $ 60,141 $ 49,600 $ 42,920
Fund management and administration (10,168) (8,932) (9,168)
Third party sharing arrangements (283) (282) (10)
-----------------------------
Gross margin $ 49,690 $ 40,386 $ 33,742
=============================
Gross margin percentage 82.6% 81.4% 78.6%
=============================
US listed ETFs:
GAAP total revenue $ 59,580 $ 49,209 $ 42,920
Fund management and administration (9,733) (8,334) (9,168)
Third party sharing arrangements (283) (282) (10)
-----------------------------
Gross margin $ 49,564 $ 40,593 $ 33,742
=============================
Gross margin percentage 83.2% 82.5% 78.6%
=============================
CONTACT: WisdomTree Investments, Inc.
Stuart Bell / Jessica Zaloom
+1.917.267.3702 / +1.917.267.3735
sbell@wisdomtree.com / jzaloom@wisdomtree.com
News Source: NASDAQ OMX
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2015-05-01 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: WisdomTree Investments, Inc.
United States
ISIN: US97717P1049
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