Exchange-traded fund provider WisdomTree Investments has reported net income of USD12.2m for the second quarter of 2013, or USD0.09 per share on a fully diluted basis.
This compares to USD0.1m in the second quarter of 2012 and USD7.9m in the first quarter of 2013.
Jonathan Steinberg (pictured), WisdomTree chief executive and president, says: "With USD5.0bn in net inflows for the quarter and nearly USD11bn in the first half of 2013, we continued our positive momentum from the first quarter to achieve a strong second quarter with record market share gains. WisdomTree was the third best asset gatherer across all US mutual fund and ETF complexes in the second quarter according to Morningstar.
"WisdomTree’s innovative ETF strategies are powering our top-line growth, with our currency hedged equity and domestic equity families leading our net inflows in the second quarter. While growing our existing funds, we are also seeking to bolster and expand upon the success of these strategies by launching new funds. In the second quarter, we listed two new currency hedged equity funds and our first dividend growth ETF.
"Our robust asset growth is translating into excellent financial results with record revenues and net income in the second quarter. While we believe the ETF industry is still in its early innings of growth, WisdomTree is already proving the efficiency and scale of our business model: we achieved a 33 per cent pre-tax margin on a base of USD28.4bn in average assets."
ETF assets under management were USD29.0bn at 30 June 2013, up 93.1 per cent from USD15.0bn at 30 June 2012, and up 15.4 per cent from USD25.1bn at 31 March 2013. Net inflows for the second quarter of 2013 were USD5.0bn as compared to USD0.3bn in the second quarter of 2012 and USD5.9bn in the first quarter of 2013. WisdomTree’s market share of industry net inflows was 29.4 per cent in the second quarter of 2013 as compared to 1.4 per cent in the second quarter of 2012 and 10.8 per cent in the first quarter of 2013. For the first six months of 2013, WisdomTree’s market share was 15.2 per cent as compared to 3.4 per cent for the first six months of 2012.
