WisdomTree Reports Monthly Metrics for December 2023
- Achieving a new milestone with over $100 billion of AUM
- Finishing 2023 with over $10 billion of net inflows and a ~13% pace of organic growth
- Expanding product lineup with the introduction of three digital asset allocation funds
- Experiencing $765 million of net outflows in December
- Net outflows of $254 million during the quarter
Insights
WisdomTree's announcement of achieving over $100 billion in AUM is a significant milestone, demonstrating the firm's capacity to attract and manage a substantial volume of assets. This is indicative of investor confidence and the firm's competitive positioning within the asset management industry. A key factor in this achievement is the ~13% pace of organic growth in net inflows, which is notably higher than the industry average, suggesting WisdomTree's product offerings and management strategies are well-aligned with market demand.
The firm's strategic move to introduce digital asset allocation funds, possibly reflecting an adaptation to evolving investor interests towards digital assets, may further diversify their revenue streams and enhance their appeal to a broader investor base. However, the net outflows in December, largely from the U.S. Floating Rate Treasury Fund, raise questions about the sustainability of inflows and reliance on higher fee products to maintain revenue growth. The shift towards risk-on re-allocation and profit-taking behavior in commodity products also highlights the dynamic nature of investor sentiment and market trends.
The detailed flow data by asset class sheds light on the varied performance across different segments. For instance, the robust inflows into U.S. Equity and Emerging Market Equity contrast with the outflows from Fixed Income and Commodity & Currency, suggesting a rebalancing of portfolios in response to market conditions. The AUM Rollforward table provides a granular view of the flow dynamics, with the negative flow rate in Fixed Income and Commodity & Currency being offset by positive flows in other areas, reflecting a nuanced asset allocation strategy among investors.
WisdomTree's diversification into digital asset funds, leveraging insights from a renowned academic like Professor Jeremy Siegel, could be a strategic move to capitalize on the growing interest in digital assets and blockchain technology. This expansion could potentially position WisdomTree as a pioneer among traditional asset managers venturing into the digital space. The decision to introduce these funds aligns with current market trends where investors are increasingly looking for innovative investment solutions.
Furthermore, the blended total average fee rate of 36 basis points (bps) provides insight into the company's pricing strategy. It is relatively moderate when compared to some active management fees, which may contribute to the attractiveness of WisdomTree's funds. However, it is crucial to monitor if this fee rate will be sustainable in the long run, especially as the industry faces downward pressure on fees amidst the rise of low-cost passive investment vehicles.
It is also important to consider the potential impact of market volatility on WisdomTree's AUM. While the firm has experienced a positive market move in the reported period, future market conditions could affect asset valuations and investor behavior, potentially leading to increased redemptions or reduced inflow rates. The ability of WisdomTree to maintain its organic growth amidst these challenges will be critical to its continued success.
The financial data from WisdomTree provides a microcosm of broader economic trends, particularly the investor shift towards emerging markets, which may reflect a search for yield in a potentially low-interest rate environment globally. The 20.7% annualized flow rate into Emerging Market Equity suggests a positive outlook on these economies and a diversification strategy away from developed markets.
Moreover, the negative flow rate in Fixed Income at -41.4% MTD could be interpreted as a reaction to expectations of interest rate changes, where investors might be reallocating to asset classes with higher yield potential. The outflows from the U.S. Floating Rate Treasury Fund may also signify concerns over interest rate risks, as these funds are typically sought after for their lower interest rate risk profile.
The inflows into higher fee products, despite overall net outflows, could indicate a shift in investor preference towards more specialized or actively managed funds, which could carry higher fees but also promise higher returns or better risk management. This trend may have implications for the asset management industry, suggesting a possible shift in the value proposition that investors are seeking from their investment managers.
Achieved New Record & Key Milestone with over
Finished 2023 with over
Monthly Commentary:
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$765 million U.S. Floating Rate Treasury Fund and profit taking in commodity products -
Organic revenue growth in Q4 2023 notwithstanding net outflows of
$254 million -
Achieved milestone AUM of over
$100 billion $10 billion 13% pace of 2023 net inflows is best-in-class relative to our publicly traded asset manager peers - WisdomTree Prime™ expanded its product lineup with the introduction of three digital asset allocation funds that leverage insights from Professor Jeremy Siegel
As of December 31, 2023 |
AUM Rollforward
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Annualized Flow Rate |
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Beginning of Period Total AUM |
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Total Net Flows |
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International Dev. Mkt Equity |
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Emerging Market Equity |
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Fixed Income |
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( |
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Commodity & Currency |
( |
( |
( |
( |
( |
( |
Alternatives |
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Cryptocurrency |
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Leveraged & Inverse |
( |
( |
( |
( |
( |
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Total Net Flows |
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( |
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( |
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Market Move |
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Current Total AUM |
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Average Total AUM |
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Blended Total Average Fee Rate |
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36 bps |
36 bps |
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Source: https://ir.wisdomtree.com/
Please visit https://ir.wisdomtree.com/ for downloadable spreadsheets containing detailed AUM and flow data by asset class and fund broken out by daily, monthly, quarterly and annual timeframes.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain-enabled technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.*
*The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc. (NMLS ID: 2372500) in select
WisdomTree currently has approximately
For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our ability to achieve our financial and business plans, goals and objectives and drive stockholder value, including with respect to our ability to successfully implement our strategy relating to WisdomTree Prime™, our ability to continue to make achievements in AUM, levels of net inflows and other risk factors discussed from time to time in WisdomTree’s filings with the Securities and Exchange Commission (“SEC”), including those factors discussed under the caption “Risk Factors” in our most recent annual report on Form 10-K, filed with the SEC on February 28, 2023, and in subsequent reports filed with or furnished to the SEC. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside WisdomTree’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110488984/en/
Media Relations
WisdomTree, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
Investor Relations
WisdomTree, Inc.
Jeremy Campbell
+1.646.522.2602
Jeremy.Campbell@wisdomtree.com
Source: WisdomTree, Inc.
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