Exchange-traded fund sponsor and asset manager WisdomTree Investments has reported record net income of USD15m for the third quarter of 2013, or USD0.11 per share on a fully diluted basis.
This compares to USD4.5m in the third quarter of 2012 and USD12.2m in the second quarter of 2013.
WisdomTree chief executive and president Jonathan Steinberg, says: "WisdomTree continues to drive top line growth with USD1.2bn in net inflows in the quarter, comprised by balanced inflows across domestic, international and emerging market equity ETFs; as well as continued strength in our franchise-leading yen hedged Japan fund. We are effectively capitalising on the greater awareness of our currency hedged equity family which is translating into significant asset growth in sister products. Importantly, we continue to position the company for future growth and have launched eight new ETFs so far this year.
"As we continue to grow and reach economies of scale, we are demonstrating the powerful operating leverage in our business. WisdomTree's pre-tax margins reached 38 per cent on a base of USD30.5bn in average assets under management."
ETF assets under management were USD31.4bn at 30 September 2013, up 86.8 per cent from USD16.8bn at 30 September 2012, and up 8.2 per cent from USD29.0bn at 30 June 2013.
Net inflows for the third quarter of 2013 were USD1.2bn as compared to USD1.0bn in the third quarter of 2012 and USD5.0bn in the second quarter of 2013.
WisdomTree's market share of industry net inflows was 2.1 per cent in the third quarter of 2013 as compared to 2.0 per cent in the third quarter of 2012 and 32.2 per cent in the second quarter of 2013. For the first nine months of 2013, WisdomTree's market share was 9.8 per cent as compared to 2.8 per cent in the same period last year.