WisdomTree Announces First Quarter 2009 Results
* Reuters is not responsible for the content in this press release.
Continued net inflows for the quarter
24 out of 42 equity funds outperformed benchmarks through Q1
Approximately 69% of equity assets currently in funds that have beaten
respective benchmarks since inception
Company decides to enter leveraged and inverse category with innovative solution
NEW YORK--(Business Wire)--
WisdomTree (Pink Sheets: WSDT - News), an industry leading index developer and
exchange-traded fund ("ETF") sponsor, today reported a net loss of $6.0 million
in the first quarter of 2009 as compared to $5.0 million in the fourth quarter
of 2008. Proforma operating net loss, which excludes stock-based compensation,
depreciation and amortization, and interest and investment income, was $4.0
million in the quarter as compared to $3.0 million in the fourth quarter.
WisdomTree CEO Jonathan Steinberg commented, "Though the challenging market
environment has continued into 2009, the financial crisis has served to
highlight the important benefits of ETFs. We continue to see net inflows into
the ETF industry and at WisdomTree at the expense of other investment products
thanks to the importance investors continue to place on transparency, liquidity
and tax efficiency.
"WisdomTree has taken steps to diversify its product set and evolve as an asset
management company. The Company has broadened its equity offerings, entered the
fixed income asset class and announced its intentions to enter other new
categories with innovative offerings. These are among the developments we
believe will position WisdomTree competitively for an eventual market recovery."
Assets Under Management and Performance
As of March 31, 2009, assets under management ("AUM") tied to the WisdomTree
indexes were $3.2 billion and ETF AUM was $2.8 billion, both down 13% from
December 31, 2008. Net inflows into WisdomTree ETFs were $22.5 million in the
first quarter.
WisdomTree`s fundamentally weighted ETFs experienced relatively strong
investment performance through the first quarter. Approximately 69% of the $2.6
billion invested in WisdomTree`s 42 equity ETFs on March 31, 2009 were in funds
that, since their respective inceptions, have outperformed their benchmarks
through that date. 24 of WisdomTree`s 42 equity ETFs outperformed their
comparable benchmarks since inception through the first quarter. For complete
performance information on all WisdomTree ETFs, please click here or visit
www.wisdomtree.com.
Recent Business Activity
* The week of May 4, 2009, WisdomTree intends to launch the WisdomTree Dreyfus
Emerging Currency Fund (CEW). The fund will provide exposure to a basket of 11
Emerging Market currencies in the ETF structure.
* On April 20, 2009, MacroMarkets, LLC, announced that it had entered into a
collaboration with WisdomTree Asset Management in which WisdomTree will assist
in the introduction of the MacroShares Major Metro Housing Up Trust (UMM) and
MacroShares Major Metro Housing Down Trust (DMM). WisdomTree will provide
educational and product support to MacroMarkets.
* On April 29, 2009, WisdomTree`s India Earnings Index was named the Most
Innovative Index in 2008 at the 8th Annual Capital Link Forum on Closed-End
Funds & Global ETFs. These awards are based on nominations by a committee of
industry analysts.
WisdomTree has undertaken certain fund restructurings in an effort to streamline
the Company`s domestic and international product set, diversify its product mix,
improve operational efficiencies and strengthen the competitive position of its
product offerings. The changes help to establish new, distinct offerings for
WisdomTree while also simplifying the Company`s overall product lineup.
* On March 27, 2009, WisdomTree announced that it will transition the WisdomTree
U.S. Current Income ETF (USY) into a short-term government bond fund. The Fund
will be renamed the WisdomTree Short-Term Government Income Fund. These changes
reposition USY as a unique short-term bond ETF focused on government securities
at the short end of the yield curve. These changes will be implemented at the
end of May. This development marks WisdomTree`s first fixed income ETF.
* On April 10, 2009, WisdomTree announced the WisdomTree Europe Equity Income
Fund (DEW) will change its investment objective and be renamed the WisdomTree
Global Equity Income Fund. The Fund will become a "global" fund that invests in
high dividend-yielding stocks listed in the U.S., developed markets and emerging
markets. These changes will be implemented on or about June 19, 2009.
* On April 10, 2009, WisdomTree announced the WisdomTree Japan Equity Income
Fund (DNL) will change its investment objective and be renamed the WisdomTree
World ex-US Growth Fund. The Fund will change its investment objective so that
it seeks to track the performance of WisdomTree`s new fundamentally weighted
index that measures the performance of growth companies in the developed and
emerging markets outside of the United States. These changes will be implemented
on or about June 19, 2009.
* On February 24, 2009, WisdomTree announced that it will change the investment
objective of two of its ETFs - the WisdomTree Dividend Top 100 Fund (DTN) and
the WisdomTree International Dividend Top 100 Fund (DOO). These ETFs will be
renamed the WisdomTree Dividend ex-Financials Fund and the WisdomTree
International Dividend ex-Financials Fund. Both Funds will continue to invest in
high dividend-yielding stocks, but they will no longer invest in companies in
the financial sector. These changes will be implemented beginning in early May.
The change will diversify WisdomTree`s dividend offerings and create the
industry`s first dividend-focused ETFs that exclude financials.
* On April 10, 2009, WisdomTree announced the WisdomTree Low P/E Fund (EZY) will
change its investment objective and be renamed the WisdomTree LargeCap Value
Fund. The Fund will seek to track the performance of WisdomTree`s new
fundamentally weighted index that measures the performance of large cap value
companies in the United States. These changes will be implemented on or about
June 19, 2009.
Future Product Plans
Leveraged and Inverse
The leveraged and inverse category was the fastest-growing part of the industry
in 2008. However, many investors have expressed concerns over capital gain
distributions and significant inconsistencies in directional movement associated
with existing leveraged and inverse products when held over longer investment
periods. WisdomTree believes it has identified an innovative solution to these
two issues for both long-term and short-term investors and intends to enter this
category after obtaining regulatory approval for its products.
Fixed Income
WisdomTree intends to launch the WisdomTree Real Return Fund. This will be a
fixed income fund designed to provide investors with a target return in excess
of the inflation rate through investment in TIPS and commodities.
Commodities
WisdomTree intends to launch the WisdomTree Long-Short Commodity Fund. This will
be a commodity fund designed to generate an absolute return through a dynamic
allocation to long and short commodity positions.
Alternative
WisdomTree intends to launch the WisdomTree Absolute Return Fund. This fund will
seek to generate an absolute return through a dynamic allocation to long and
short commodity and financial futures positions.
WisdomTree intends to launch the WisdomTree Long-Short Equity Fund. This fund
will seek to give investors "market neutral" exposure to U.S. and non-U.S.
equity markets. It will be an actively managed strategy designed to capture
potential excess returns between WisdomTree ETFs and comparable
capitalization-weighted indexes.
Currency Hedged Equities
WisdomTree intends to launch the WisdomTree DEFA Hedged Fund. This will be a
currency hedged international equity strategy.
First Quarter Financial Highlights
Comparison to the fourth quarter of 2008
Revenues
Total revenues for the first quarter decreased 12.5% to $3.7 million as compared
to $4.2 million in the fourth quarter. Average ETF assets under management
decreased 9% primarily due to market declines despite $22.5 million of net
inflows. The average advisory fee earned during the first quarter was 0.50% down
from 0.51% in the fourth quarter primarily due to a change in the mix of ETFs
assets.
The overall market declines in the first quarter contributed significantly to
reducing ETF asset levels to a low of $2.4 billion on March 9, 2009, a level
WisdomTree last experienced in the first quarter of 2007. Since that low, ETF
asset levels have increased 25% to $3.0 billion as of April 29, 2009.
Expenses
Total expenses increased 5.3% to $9.9 million, from $9.4 million in the fourth
quarter. Excluding stock-based compensation and depreciation and amortization
charges, proforma operating expenses increased 6.8% to $7.7 million, from $7.2
million in the fourth quarter.
On an annualized basis, first quarter proforma operating expenses declined 25%
from the comparable full year 2008 amount due to continuing cost reduction
actions to lower the Company`s operating expense levels. However, market
declines, which led to lower revenues, exceeded these reductions contributing to
a higher proforma operating loss in the first quarter compared to the fourth
quarter.
* Compensation and benefits expense increased 72.8% to $4.8 million from $2.8
million in the fourth quarter. Excluding stock-based compensation, compensation
and benefits expense increased to $2.7 million from $1.0 million. The increase
was primarily due to changes in accruals for incentive compensation. The fourth
quarter of 2008 reflected a true up adjustment to reduce incentive compensation
for the full year. The first quarter of 2009 reflects a normalized, and lower
level, of incentive compensation on an annual basis.
* Fund management and administration expenses decreased 18.4% to $3.2 million
from $3.9 million in the fourth quarter primarily due to lower portfolio
management and fund administration fees due to lower average asset levels.
* Marketing and business development decreased 8.0% to $0.9 million from $1.0
million in the fourth quarter due to lower advertising spending due to the
current market environment.
* Professional fees were relatively flat at $0.3 million; however, excluding
stock based compensation, professional fees declined 45.2% primarily due to
lower legal fees.
* Occupancy, communications and equipment expense decreased 24.5% to $0.3
million from $0.4 million in the fourth quarter due to sub-leasing excess office
space in our corporate office.
* Other expenses decreased 60.3% to $0.4 million from $1.0 from the fourth
quarter. Excluding stock-based compensation, other expenses decreased 27.1% to
$0.4 million from $0.5 million. The fourth quarter of 2008 reflected a non-cash
loss for excess sub-leased office space.
Balance Sheet
As of March 31, 2009, WisdomTree had total assets of $31.3 million which
consisted primarily of cash and cash equivalents of $10.6 million, and
investments in U.S. agency debt instruments of $16.9 million. WisdomTree has no
debt. There were approximately 106.9 million shares outstanding as of March 31,
2009. Fully diluted shares outstanding were approximately 128.3 million as of
March 31, 2009.
2008 Results
As stated in its fourth quarter 2008 earnings release, the Company determined it
had incorrectly accounted for certain stock-based awards granted from 2003
through 2008. The cumulative affect of the adjustments correcting this error is
an overstatement of $0.4 million. A schedule of the proposed adjustments and
affect on the Company`s 2008 results are included in this release. The Company
is currently working with its previous auditors to restate its prior results and
will publish its restated audited results when the review is complete.
First Quarter 2009 Earnings Call Information
WisdomTree will discuss its results and operational highlights during a
conference call on Thursday, April 30 at 9:00 a.m. ET. The call-in number will
be (888) 680-0878, passcode 98210740. Anyone outside the U.S. or Canada should
call (617) 213-4855, passcode 98210740. The slides used during the presentation
will be at www.wisdomtree.com/ir. For those unable to join the conference call
at the scheduled time, an audio replay will be available on
www.wisdomtree.com/ir.
About WisdomTree
WisdomTree is a leading ETF sponsor and innovative index developer using its own
fundamentally weighted index methodology. WisdomTree also licenses its indexes
to third parties for proprietary products and offers a platform to promote the
use of WisdomTree ETFs in 401(k) plans. Approximately $3.4 billion in assets
currently are managed against the WisdomTree Indexes by WisdomTree and third
parties under license from WisdomTree. For more information, please visit
www.wisdomtree.com or www.wisdomtree401k.com. WisdomTree is the marketing name
for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree
Asset Management, Inc. and WisdomTree Retirement Services, Inc.
WisdomTree Asset Management, Inc. is a registered investment advisor and is the
investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The
WisdomTree Trust is a registered open-end investment company. Each WisdomTree
ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc.
supports the use of the WisdomTree ETFs in retirement plans by financial
professionals.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
Restated Restated
Revenues $ 3,695 $ 4,221 $ 5,421
Expenses:
Compensation and benefits 4,751 2,750 6,735
Fund management and administration 3,191 3,910 3,523
Marketing and business development 910 989 3,379
Professional fees 303 295 738
Occupancy, communication and equipment 274 363 435
Depreciation and amortization 90 90 75
Other 409 1,030 323
Total expenses 9,928 9,427 15,208
Operating loss (6,233 ) (5,206 ) (9,787 )
Interest and investment income 222 245 573
Net loss $ (6,011 ) $ (4,961 ) $ (9,214 )
Net loss per share - basic and diluted $ (0.06 ) $ (0.05 ) $ (0.09 )
Weighted average common shares - basic and diluted 101,561 100,955 99,494
WISDOMTREE INVESTMENTS, INC
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
Restated Restated
Revenues $ 3,695 $ 4,221 $ 5,421
Operating expenses:
Compensation and benefits 2,732 1,030 4,499
Fund management and administration 3,191 3,910 3,523
Marketing and business development 910 989 3,379
Professional fees 230 420 319
Occupancy, communication and equipment 274 363 435
Other 357 490 248
Total operating expenses 7,694 7,202 12,403
Operating loss (3,999 ) (2,981 ) (6,982 )
Stock-based compensation 2,144 2,135 2,730
Depreciation and amortization 90 90 75
Interest and investment income (222 ) (245 ) (573 )
Net loss $ (6,011 ) $ (4,961 ) $ (9,214 )
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)
March 31, December 31,
2009 2008
Restated
ASSETS
Current assets:
Cash and cash equivalents $ 10,563 $ 13,275
Investments 3,108 4,593
Accounts receivable 1,360 1,530
Other current assets 1,231 875
Total current assets 16,262 20,273
Fixed assets, net 1,185 1,266
Investments 13,744 13,191
Other long-term assets 86 126
Total assets $ 31,277 $ 34,856
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Fund management and administration payable $ 10,627 $ 8,966
Compensation and benefits payable 735 2,012
Other accounts payable 1,416 1,385
Total current liabilities 12,778 12,363
Other liabilities 509 615
Total liabilities 101,561 12,978
Stockholders' equity 17,990 21,878
Total liabilities and stockholders' equity $ 31,277 $ 34,856
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
For the Three Months Ended
March 31, March 31,
2009 2008
Cash flows from operating activities Restated
Net loss $ (6,011 ) $ (9,214 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and other 90 413
Stock-based compensation 2,144 2,730
Deferred rent expense (106 ) 25
Accretion to interest income (61 ) 42
(Increase) / Decreases in operating assets and liabilities:
Accounts receivable 170 219
Other assets (316 ) (102 )
Fund management and administration payable 1,661 2,001
Compensation and benefits payable (1,277 ) (1,334 )
Other accounts payable 8 277
Net cash used in operating activities (3,698 ) (4,943 )
Cash flows from investing activities
Purchase of fixed assets (8 ) (609 )
Purchase of investments (2,786 ) (9,735 )
Proceeds from investments 3,780 15,396
Net cash provided by investing activities 986 5,052
Cash flows from financing activities -- --
Net (decrease) / increase in cash and cash equivalents (2,712 ) 109
Cash and cash equivalents - beginning of period 13,275 15,138
Cash and cash equivalents - end of period $ 10,563 $ 15,247
Supplemental disclosure of cash flow information
Cash paid for income taxes $ 3 $ 3
WisdomTree Investments, Inc.
Key Operating Statistics
For the Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
Total assets under management (in thousands)
ETFs 2,775,647 3,180,133 4,296,257
Non-ETFs 399,110 462,513 85,481
End of period assets 3,174,757 3,642,646 4,381,737
Total ETFs (in thousands)
Beginning of period assets 3,180,133 4,074,954 4,558,796
Inflows/(Outflows) 22,485 29,534 135,201
Market appreciation/(depreciation) (426,971 ) (924,355 ) (397,741 )
End of period assets 2,775,647 3,180,133 4,296,257
Average assets during the period 2,885,250 3,176,375 4,243,344
International ETFs (in thousands)
Beginning of period assets 1,723,243 2,301,002 2,985,606
Inflows/(Outflows) (3,182 ) 9,710 33,343
Market appreciation/(depreciation) (194,764 ) (587,469 ) (259,549 )
End of period assets 1,525,297 1,723,243 2,759,400
Average assets during the period 1,572,388 1,763,032 2,721,469
Sector ETFs (in thousands)
Beginning of period assets 246,502 361,436 546,564
Inflows/(Outflows) (19,624 ) (32,179 ) 13,551
Market appreciation/(depreciation) (36,780 ) (82,755 ) (45,717 )
End of period assets 190,098 246,502 514,398
Average assets during the period 211,554 262,956 533,666
US ETFs (in thousands)
Beginning of period assets 986,568 983,435 1,026,626
Inflows/(Outflows) 81,038 241,244 88,308
Market appreciation/(depreciation) (201,382 ) (238,111 ) (92,474 )
End of period assets 866,224 986,568 1,022,459
Average assets during the period 896,404 844,368 988,209
Currency ETFs (in thousands)
Beginning of period assets 223,820 429,081 -
Inflows/(Outflows) (35,747 ) (189,241 ) -
Market appreciation/(depreciation) 5,955 (16,020 ) -
End of period assets 194,028 223,820 -
Average assets during the period 204,904 306,019
Average assets based on total ETFs
International ETFs 55 % 55 % 64 %
Sector ETFs 7 % 8 % 13 %
US ETFs 31 % 27 % 23 %
Currency ETFs 7 % 10 % 0 %
Average advisory fee - during the period
International ETFs 0.59 % 0.59 % 0.57 %
Sector ETFs 0.58 % 0.58 % 0.58 %
US ETFs 0.33 % 0.34 % 0.34 %
Currency ETFs 0.42 % 0.42 % 0.00 %
Blended Total 0.50 % 0.51 % 0.52 %
Number of ETFs
International ETFs 18 18 17
Sector ETFs 11 11 11
US ETFs 13 13 12
Currency 8 8 -
Total 50 50 40
WISDOMTREE INVESTMENTS, INC.
PROPOSED ADJUSTMENTS
RELATED TO SHARE-BASED COMPENSATION
(in thousands)
(Unaudited)
For the Years Ended December 31, Cumulative
2005 2006 2007 2008
Total adjustment (rounded) 1,235 1,377 (1,130 ) (1,851 ) (369 )
Total expenses, as previously reported 4,477 21,620 46,049 52,508 124,654
Total expenses, restated (rounded) 5,712 22,997 44,919 50,656 124,284
Net loss, as previously reported (4,144 ) (19,343 ) (25,131 ) (28,896 ) (77,514 )
Net loss, restated (rounded) (5,379 ) (20,720 ) (24,001 ) (27,045 ) (77,145 )
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
For the Three Months Ended For the Year Ended
March 31, June 30, September 30, December 31, December 31,
2008 2008 2008 2008 2008
Restated Restated Restated Restated Restated
Revenues $ 5,421 $ 6,249 $ 6,183 $ 4,221 $ 22,074
Expenses:
Compensation and benefits 6,735 5,163 5,690 2,750 20,338
Fund management and administration 3,523 3,739 3,995 3,910 15,167
Marketing and business development 3,379 3,253 1,501 989 9,122
Professional fees 738 649 189 295 1,871
Occupancy, communication and equipment 435 391 375 363 1,564
Depreciation and amortization 75 84 88 90 337
Other 323 521 383 1,030 2,257
Total expenses 15,208 13,800 12,221 9,427 50,656
Operating loss (9,787 ) (7,551 ) (6,038 ) (5,206 ) (28,582 )
Interest and investment income 573 352 367 245 1,537
Net loss $ (9,214 ) $ (7,199 ) $ (5,671 ) $ (4,961 ) $ (27,045 )
Net loss per share - basic and diluted $ (0.09 ) $ (0.07 ) $ (0.06 ) $ (0.05 ) $ (0.27 )
Weighted average common shares - basic and diluted 99,494 99,995 100,444 100,955 100,236
WISDOMTREE INVESTMENTS, INC
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
For the Three Months Ended For the Year Ended
March 31, June 30, September 30, December 31, December 31,
2008 2008 2008 2008 2008
Restated Restated Restated Restated Restated
Revenues $ 5,421 $ 6,249 $ 6,183 $ 4,221 $ 22,074
Operating expenses:
Compensation and benefits 4,499 3,309 3,554 1,030 12,392
Fund management and administration 3,523 3,739 3,995 3,910 15,167
Marketing and business development 3,379 3,253 1,501 989 9,122
Professional fees 319 461 278 420 1,478
Occupancy, communication and equipment 435 391 375 363 1,564
Other 248 (54 ) 366 490 1,050
Total operating expenses 12,403 11,099 10,069 7,202 40,773
Operating loss (6,982 ) (4,850 ) (3,886 ) (2,981 ) (18,699 )
Stock-based compensation 2,730 2,617 2,064 2,135 9,546
Depreciation and amortization 75 84 88 90 337
Interest and investment income (573 ) (352 ) (367 ) (245 ) (1,537 )
Net loss $ (9,214 ) $ (7,199 ) $ (5,671 ) $ (4,961 ) $ (27,045 )
GAAP to Non-GAAP Reconciliation
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. Our management reviews this
non-GAAP financial measurement 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 and are
therefore unlikely to be comparable to similar measures presented by other
companies. These non-GAAP financial measures should be considered in the context
with our GAAP results.
We have disclosed our results excluding certain non-operating items. We consider
stock-based compensation, depreciation and amortization and interest and
investment income as non-operating items. Management excludes these costs when
measuring our financial performance as they are non-cash charges or not directly
related to our business of being an index developer and ETF sponsor. As the
company is currently incurring net losses, management focuses on its cash
related expenses of being an index developer and ETF sponsor in measuring the
financial health of its business and making related decisions. However,
stock-based compensation has been and will continue to be for the foreseeable
future, a significant recurring expense in our business and stock-based
compensation is an important part of our employees' compensation and impacts
their performance.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP to NON-GAAP RECONCILIATION
(in thousands)
(Unaudited)
For the Three Months Ended For the Year Ended
March 31, June 30, September 30, December 31, December 31, March 31,
2008 2008 2008 2008 2008 2009
Restated Restated Restated Restated Restated
GAAP expenses as reported $ 15,208 $ 13,800 $ 12,221 $ 9,427 $ 50,656 $ 9,928
Less Stock-Based Compensation included in:
Compensation and benefits (2,236 ) (1,854 ) (2,136 ) (1,720 ) (7,946 ) (2,019 )
Professional fees (419 ) (188 ) 89 125 (393 ) (73 )
Other (75 ) (575 ) (17 ) (540 ) (1,207 ) (52 )
Total stock-based compensation expenses (2,730 ) (2,617 ) (2,064 ) (2,135 ) (9,546 ) (2,144 )
Less depreciation and amortization (75 ) (84 ) (88 ) (90 ) (337 ) (90 )
Proforma operating expenses $ 12,403 $ 11,099 $ 10,069 $ 7,202 $ 40,773 $ 7,694
GAAP net loss, as reported $ (9,214 ) $ (7,199 ) $ (5,671 ) $ (4,961 ) $ (27,045 ) $ (6,011 )
Add back stock-based compensation 2,730 2,617 2,064 2,135 9,546 2,144
Add back depreciation and amortization 75 84 88 90 337 90
Less interest and investment income (573 ) (352 ) (367 ) (245 ) (1,537 ) (222 )
Proforma net loss $ (6,982 ) $ (4,850 ) $ (3,886 ) $ (2,981 ) $ (18,699 ) $ (3,999 )
Forward Looking Statements
Statements in this Press Release regarding WisdomTree Investments, Inc. that are
not historical facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are cautioned not to
place undue reliance on any such forward-looking statements, each of which
speaks only as of the date made. We have no obligation to publicly release the
result of any revisions which may be made to any forward-looking statements to
reflect unanticipated events or circumstances occurring after the date of such
statements. Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors, some of which are listed below, that
could cause actual results or outcomes to differ materially from any future
results or outcomes expressed or implied by such forward-looking statements. In
assessing the forward-looking statements contained herein, readers are urged to
carefully read the following risks and considerations:
* We have a limited operating history in our investment management business upon
which you may evaluate us and we have experienced significant losses to date.
* Our ability to become profitable is dependent upon our ability to increase our
assets under management and to control our expenses.
* Changes in the equity markets have a direct impact on our assets under
management. A downturn in the equity markets can result in a significant
reduction in assets under management, which, in turn, directly reduces our
revenues.
* The mix of our assets under management could be subject to significant
fluctuations and could adversely affect our revenues.
* Poor investment performance of our ETFs is likely to lead to a reduction in
our assets under management and a reduction in our revenues.
* If our reputation is harmed we could suffer losses in revenue.
* The asset management industry is highly competitive and most of our
competitors are larger companies with greater resources.
* We rely very heavily on third-party vendors, such as BNY Mellon, Standard &
Poor`s, and Bloomberg, to provide us with services that are very important to
our business. If any of those vendors decided to terminate their relationship
with us, we might experience a disruption in our ability to do business while we
retain an alternative vendor.
* A failure in our operational systems or infrastructure, or those of the
third-party vendors, could disrupt our operations, damage our reputation, and
reduce our revenues.
* Our business is subject to extensive regulation, and compliance failures and
changes in regulation could adversely affect us.
* We depend on key personnel and the loss of such personnel could disrupt our
ability to do develop new product and conduct our business.
* Our principal stockholders, including our directors and officers, control a
large percentage of our shares of common stock and can control our corporate
actions.
Past performance is no indication of future results.
Media Contact:
Stuart Bell
WisdomTree Investments, Inc.
(917) 267-3702
sbell@wisdomtree.com
or
WisdomTree Investor Contacts:
KCSA Strategic Communications
Jeffrey Goldberger / Todd Fromer
(212) 896-1249 / (212) 896-1215
jgoldberger@kcsa.com / tfromer@kcsa.com
Copyright Business Wire 2009
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