Bringing you live news and features since 2006 

WisdomTree reports net loss of USD5.2m in Q2

RELATED TOPICS​

WisdomTree, an index developer and exchange-traded fund sponsor, has reported a net loss of USD5.2m in the second quarter of 2009, a 13.5 per cent improvement from a net loss of USD6.0m

WisdomTree, an index developer and exchange-traded fund sponsor, has reported a net loss of USD5.2m in the second quarter of 2009, a 13.5 per cent improvement from a net loss of USD6.0m in the first quarter.

Proforma operating net loss, which excludes stock-based compensation, depreciation and amortization, and interest and investment income, was USD3.3m in the quarter, a 17.3 per cent improvement from a net loss of USD4.0m in the first quarter.

WisdomTree chief executive Jonathan Steinberg says: ‘WisdomTree had its best quarter of net inflows in three quarters, which coupled with positive market movement resulted in increased assets of nearly USD1bn from the first quarter. Significantly, approximately 50 per cent of this increase was in emerging market equities and emerging market currencies. We have built one of the most expansive and innovative product sets in this space."

As of 30 June 2009, assets under management tied to the WisdomTree indexes were USD4.1bn and ETF AUM was USD3.7bn, up 30 per cent and 32 per cent respectively from 31 March  2009. Net inflows into WisdomTree ETFs were USD281m in the second quarter.

WisdomTree’s fundamentally weighted ETFs experienced relatively strong investment performance through the second quarter. Approximately 70 per cent of the USD3.3bn invested in WisdomTree’s 42 equity ETFs on 30 June 2009 were in funds that, since their respective inceptions, have outperformed their benchmarks through that date. Twenty three of WisdomTree’s 42 equity ETFs outperformed their comparable benchmarks since inception through the second quarter.

Total revenues for the second quarter increased 20.2 per cent to USD4.4m as compared to USD3.7m in the first quarter. Average ETF assets under management increased 16.1 per cent primarily due to USD602m of market appreciation as well USD281m of net inflows. The average advisory fee earned during the second quarter was 0.51 per cent, up from 0.50 per cent in the first quarter primarily due to higher inflows into the company’s emerging market ETFs.

Total expenses decreased slightly to USD9.8m from USD9.9m in the first quarter primarily due to lower compensation related expenses, partly offset by higher marketing costs. Excluding stock-based compensation, depreciation and amortization charges, proforma operating expenses were essentially unchanged at USD7.7m.

Ninety three per cent of the increase in revenues flowed through to the bottom line and directly reduced the company’s operating loss over the first quarter. This was primarily due to the stable expense base resulting from cost reduction actions the company initiated in the second half of 2008.

Total revenues decreased 30.3 per cent to USD8.1m during the first six months of 2009 from USD11.7m in the comparable period in 2008, as a result of lower asset levels related to the credit crisis and downturn in the economy which began in the second half of 2008 and into the first half of 2009.

Total expenses decreased 31.9 per cent to USD19.8m during the first six months of 2009 from USD29.0m in the same period of last year. Excluding stock-based compensation and depreciation and amortization charges, proforma operating expenses decreased 34.3 per cent to USD15.4m from USD23.5m in the same period last year. This decrease was primarily due to lower marketing and compensation related expenses due to cost reduction actions initiated by management in the second half of 2008.

As of 30 June 2009, WisdomTree had total assets of USD25.1m which consisted primarily of cash and cash equivalents of USD9.3m, and investments of USD11.4m. WisdomTree has no debt. There were approximately 106.9 million shares issued as of 30 June 2009. Fully diluted shares issued and outstanding were approximately 128.3 million as of 30 June 2009.

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by