WETF - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen and welcome to the WisdomTree 2Q Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to introduce your host for today’s conference, Jason Weyeneth, Director of Investor Relations.

begin. may You

Jason Weyeneth

morning. Good Thank you.

Annual Litigation Before this differ limited Report we disclaimer contain presentation the reference legal cause December Private like including, undertake statements number XXXX. statements, of and statements. factors from I risks the in today's forward-looking the would could Securities the available of forward-looking section may for results to, of Form does any but Factors on the to not WisdomTree's in Act XX-K presentation. year and XX, forth of within assumes in A to our the actual XXXX. meaning begin, Reform not Risk materially This forward-looking in discussed no update presentation set ended results to WisdomTree duty

my pleasure WisdomTree’s the call turn Muni. Amit to over CFO, Now to it's

Amit Muni

morning, up walk turn and Jason I'll open we over you, the Thank call Q&A. quarter, the everyone. good the items then important the for and lines before for Jono quickly through to

on quarter grew XX% in positive X, flows over our Net year-to-date. $XX billion, the up flows. Beginning under $XXX consecutive to quarter assets third of million, were management Slide

inflows, and generated we HEDJ million represents $XXX growth. Excluding annualized X% organic of DXJ, which

DXJ a attrition and quarters. the lowest last their from the diminishing impact level those is the HEDJ While remained consecutive ten of second headwind, and quarter represented funds in

demand representing macro share of gold can strength market the the in significant inflows gold million listed in remain franchise, $XXX European Europe. environments. Europe category by ETPs, our led were Flows certain that gold XX% leader inflows We see generated of a of in which

saw product category, emerging flows demand our in represents elections. India across saw of surrounding U.S. organic $XXX particular, ETF the ETF our industry While of Inflows significant billion we country’s nearly In $X growth. we suite. the XX% million strong outflows the in market experienced EM

their strong broad DGS generated performance cap small leveraging our sizable emerging track fund market based both addition, market fund inflows records. In emerging EEM and

organic are can page, in trends growth the chart of and the see you on bottom improving. the As relative our absolute

bars, growth in organic XX organic in shown shown months the improvement dark blue the As steady our past with X% growth over all year-to-date. has

and HEDJ of and overall our line-up, growth pickup this have industry. the XX% improvement We we is build organic than of rate our seen expand also higher our as we a an considerably product investments Excluding a ETF program. relative is absolutely diversify and distribution on have result direct DXJ, solutions the strategy made to believe basis transform award-winning an

are detail investments presentation, impacts will the the organic the in discuss in Jono to our more growth. in Later distribution having on

basis, for income on GAAP higher Now by lower had turning a $XX quarter AUM were average just mix revenue million or to a of by shift. over to the On AUM, financials million $X.X partly the Revenues due X. offset Slide capture net $X.XX driven we share.

adjusted $X was items, $X.XX income million or non-operating net Excluding share. a

severance quarter, price increase non-cash future charges. an as payments well after-tax million $X.X of the our of for as the gold, million $X During to due recorded commitment charge in we of gold the after-tax,

certain tax quarter the non-deductibility the adjusted Our elevated rate of expenses. in to due was

Given expect our be to range. XX% tax we current the XX% in earning the near-term levels, adjusted to rate

some with for were segment International Gross margins the margins XX.X%, quarter. our was next to margins cost preparing adjusted our the for first declined up the segment the reflecting of our sequentially certain Gross margin our slightly expenses sequentially. associated Turning little Brexit. on operating which change slide, XX% of for from products and quarter, for timing is U.S.

U.S. roughly XX% beginning and of in be drive to still gross between March but Through vendor guidance a modest savings XX% our within evenly in margins, expect the The margins ranges QX, and gross were XX% annual the XX% to negotiations, the to internationally. U.S. segments. of fund to we lift million savings we International $X.X should secure able split to cost existing

next the slide, the changes our can see On in you expenses.

For the as U.S. segment, remains controlled. discretionary well expenses declined operating slightly spending

U.S. be less our than for approximately an on spending $X discretionary guidance million. basis million million, to segment $XX annual our $XX of expect We previous

Compensation range and is full we onboarding first trending the U.S. at reflects guidance the fees. year. third-party we forward the cost range we quarter. within anticipate advisory in gave basis, primarily third-party X% go the The distribution of the a between one-time beginning decline X.X% in distribution On year to fees of costs incurred

the expectations low increased International the quarter expenses shared AUM-driven expenses the levels consistent our excluding during first with X% call. on Marketing spending we costs. normalized from segment and sales April

now I’d turn call like Jono. you. over the to to Thank

Jonathan Steinberg

function the Thank background of this Watson. We’ve powered transformation our about deliberate everyone. to The how changes that we has with talked the years. you, clients distribution morning, Amit, we’ve past IBM data the over foundational industry-leading intelligence made and approach of engage by lot few our a building transformed good was

marketing, much operational prospects, enables us driving clients activities before and function. holdings were to our our insights In to We intelligence with to advise the data distribution blind information providing efficiencies. prioritize this our better and while more from our addition and on we’ve us built literally

Then making us WisdomTree. business with us and more program solutions of that then the added easier strategic partner It with a award-winning than our clients. to allows continued distribution do removed signing deeper ever we and value-added makes our agreements that go friction to with

one our we’ve Finally, client fully marketing integrated process. our into and and client cohesive coverage teams revamped distribution model coverage

that Japanese transformation our exposures. consolidated and in continued the excitement few and European quarters, is over masked impacts outflows We our past achieving voiced but the deeper mostly by dive the from results, early success evident will of I the isn’t indicated distribution into

signs distribution Slide simply put, X, is working. there undeniable are our at Looking strategy

than growth platforms non-solution faster than times four from Over the clients program non-platform on our XX%, solutions roughly utilizing and assets organic times clients. been organic related XX past months, XX%, over more faster has commission-free is our X.X than the growth

allow trade commission-free, we to with numerous agreements in as Beginning Ameritrade of that providing as funds well data. October with valuable XXXX, TD distribution us our have signed

Pershing XX In include Schwab, Ameritrade, months key we’ve E*TRADE, TD signed the to over or platform and Cetera, past addition others. agreements commission-free expanded

the you imagine, exclusivity net As stronger many friction benefiting cases of in from flows. of drives trading might and some costs level removing

benefit to of our is which feeds platform Another we that have data now intelligence into mentioned the access capability data the I earlier.

In addition these helping distribution platforms, increased productivity efforts aids marketing drive broader strategic on to our us and informs our decisions. better it

building the are of evidenced launched results we flows the XX% the excellent been feedback better and program XXXX, late with more objective on to formally deeper by flows. consistent growth In net solutions our and of rate the wallet Client as of drive diversified has our program relationships client and solutions our seeing nearly and clients. we share organic

is more highly view two non-solutions in our XX% to firms WisdomTree book is of growing Importantly, times business a XX% products. that our WisdomTree that their solutions the of solutions of wallet penetration as have a program. clients. embraced to than meaningfully of clients of number valuable They to There share have and clients between partner allocated

reinforce we clients platform segments two These other. They have solution highlighted each clients are and symbiotic.

are are and platform embrace best solutions where In These as but still fact, results early as we encouraging. relationships, firms most custody very that our days, it’s well our have programs. prospects clients of

distribution. business, diversified at past WisdomTree few to growth. product strong over to transform have volatility our has of worked to forefront This and remain years diversify tirelessly reduce innovation, generate to We positioned the our organic the to

HEDJ. on the and quarters organic in outflows for As DXJ shows, the we from continued chart Amit the positive right three are Overall has X Slide despite presented direction. been moving growth last

organic those Excluding the industry funds, public growth ETF all and has outpaced exceeded peers.

platform of the organic have be While built growth a funds. volatility, basis generating there excluding will any of capable without always impact of should the our fairly be we some consistent on double-digit

I of in delivering. and place in believe pieces are cusp are we The the

attractive Our which translate our and to remains for generate goal profitable diversified strong, very should returns into shareholders. growth

WisdomTree in questions interest take we and your for to now. you your happy will be Thank

Operator

Instructions] question our is [Operator from Siegenthaler Credit Craig from And Suisse. first

line Your now is open.

Craig Siegenthaler

Jono. morning good Thanks,

Jonathan Steinberg

Good morning.

Craig Siegenthaler

With to fourth quarter to grow fee organic on track But its lower WisdomTree consecutive and declining due row. EPS hit a in a is July, to is so positive flows struggling really margin. positive again growth in rate far

physical shift, from larger First, on fee recent outlook on this gold fee also given plus just mix your cuts impact to is the and the what organic rate? rate, EPS

Jonathan Steinberg

in market majority sentiment vast that the the really One, sense of it’s driving is the declining volatile fee rate.

in As cut you or feed to EPS $XXX,XXX know about investment say know de minimis was the might you least. the

seen There seen the gold that are around which prior reduction. all flows some happen positive to of year-to-date particularly much very any flows signs, we’ve year-to-date the of or we’ve fee

We products. have three gold

– probably remains. gold, reduced for where bit. different you you where strongest it’s to gold best the lastly little and the where which others market redeem was and can sentiment us some in custody makes It the One if a investors new Swiss gold for important, fee position the have

In XX did that very you that emerging fee really that, DGS we whose shift and to flows. XX points are saw well original Amit highlight - being funds. that the DEM to vintage just in it terms of the markets to of able was market emerging The and drove EPI, though, highlighted or basis rates between our

about, maybe HEDJ potential Jeremy for sentiment might from points whose I just the like something over XX rate to a basis And it to fee talk standpoint. is

Jeremy Schwartz

different system. on deposit global with ECB you today things purchases bit saw mean, interest is has XXX help mean, I than a I about through over XX%. growth year-to-date the banks actions taking HEDJ, yesterday from aggressive tier of potential there about ASP commentary the little up Yes, fears and and with flowing up more the the HEDJ some to more interestingly been to rates,

Japan like attractive of come growth-oriented accommodative really get a more ECB if lot favor getting see on we of and stocks European trade that. so as the and really global result we Europe more resolution, And is exposures performance back a if can our

we those well. positioned as we So, like how big really are exposures in

Jonathan Steinberg

our strong, overall, about very very feel I confident Craig. Yes, strategy pricing

Craig Siegenthaler

on margin, only see if Thanks revenue part revenue with lower of trends? we second should margins at or But flat just leverage forecast point? a guys. operating this even growth my we question flattish positive the And

Amit Muni

able coming that from our you down. cost Well, has can I to base mean see we expenses, manage been our spending discretionary Craig, are

are say, discretionary is I’d yes. A spending. the seeing growth that going of manage we to down in So, because are to able revenue we bottom-line, flow lot to what

Craig Siegenthaler

Amit. Thanks,

Operator

Thank you.

Michael question next Our is from Cyprys Morgan from Stanley.

open. line is now Your

Michael Cyprys

quarters prior model question. to good in I you floating rate the of know get Hey, I Thanks for portfolios addition from as think benefited such your morning. ETFs taking product.

experience and of portfolio trends if talk broadly on could the quarter in you model most seeing benefit if the you the sensing any of side you are sort of about some curious them. on recent sort Just any that

models? is how I much of AUM So, think today included that in

Kurt MacAlpine

it’s Kurt here. so MacAlpine Sure,

So there model portfolio is really initiative. our two parts to

in ETFs of answer is, I people’s part prominently our will which which the model of to portfolios. The our was first is one part other your objectives place question,

mentioned you advisors, the it’s a is was and individual strategy into As models models constructed whether in by number whether seen themselves. the the whether our strategies model quarter placed of previous we’ve it RIA clients placed across USFR which or platforms a IBD it’s into industry,

from smaller saw a into but had ultimately in we’ve than we the number XX% for So, portfolios. in we clients USFR portfolios. what And to are trade, nature XX% targeting overall our of firms, our allocation best their come

a are to different where portfolio feel the uniquely from clients. piece act model a marketplace for portfolios we we we are where second capacity reasons. essentially The outsourced this in in for is, few in perspective our opportunity running positioned CIO capture model We

ultimately the completely advisors architecture how build constructed. that those feel our portfolios want we to portfolios First, end-clients which open and be the is we

clients. which in customize execution We deliver and is the the strategies we best passive possible marketplace are are blending portfolio design one surprisingly into to today integrated the our to active willing for and unique

be execution for I to the depending may And mean, that altering is building on the and custodian sure end-clients. most by that, the the best we platform blocks make efficient

We for well. or that business we and flows. specific disclosed quarter-over-quarter But haven’t don’t basis. growing growth a are also continuing nicely on has So, been see us month-over-month to as

Amit Muni

the Much added strategic And of to flows was partner. Michael, our let of little models being one color. a bit add DGS me from a just

going a best if were Alpha optimism forward approach meaning So, there Modern around is very some to products constructive be adopted. basis, on there. And our to interest

the taxable We be, adoption would for in past with Modern in investors slow how think Alpha, I the particularly of many that has expressed my in have been to the accounts certain rate frustration there channels. analysts and

to make interest to problematic and taxable I best CIOs to exceedingly that allocate for or will And funds certain hard and platforms think mutual it continue active accounts.

growing that think accelerate. I it’s strong maybe but and it So, could

Michael Cyprys

Great. on as And follow-up that. just a

wealth you open just With are management. getting seems closer the active are bringing market it closer model and portfolios to to bonding and you passive architecture,

guess, appetite strategically, think are there? actions how even we wealth I of the about any So management. how sort and you moving further sort could into What about thinking of

Kurt MacAlpine

say, model you platforms, financial from in would again. possible primary So distribution for clients commission-free would I solutions portfolios, our across also financial partner I here if the the our be it’s objective our to standpoint our is say that, AdvisorEngine. look which Kurt a includes intermediary, the and our investment advice or best

a towards clients advisors doing will and looking, partnering flows advisor. helping manner, distribution by that with the everything the and that in with with standpoint is So effective are is their geared from associated we we from we succeed believe doing most benefit disproportionately marketing

And that’s what we are seeing.

and more with in clients closer from these the to associated hear a clients lot you different benefiting serving, is making effective getting are them us the talk about it. we of success of front objective when So, their that initiatives, the real ultimately

Michael Cyprys

and group of what your I to to accelerate sense guess, guess, is make I it further I own could have am advisors that, what sense is asking?

Amit Muni

that internally. of something everyone considered. is certainly we aware what discussed Obviously, have did that and something It’s it’s we recently Goldman

think question. it to add I the don’t have nothing at it’s to an But So, I moment. unreasonable

Michael Cyprys

Great. Thank you.

Operator

you. Thank

Mac question next Gabelli. Our from Sykes from is

open. Your line now is

Macrae Sykes

you. gentlemen. about forward? then and and seems Good talk cost income the Thanks strength product going you It for outlook significant at the really the products? innovation fixed growth bit taking for little see question. to of Can industry morning par a like down starting is WisdomTree’s potential Thank the

Jeremy Schwartz

the for market, we with what when ETFs times only agree exactly of Thanks, lot commentary Global of some There There Mac. of income. Head – fixed Schwartz our fixed equities I in you potential said. has four sure, This are global higher. how is been Research. is Jeremy about represent to bond income X% five

to think And really ETFs share. potential so, there fixed a is income we capture for

in is a really Now WisdomTree positioned great spot.

fixed sort is beta now of ETF Treasury our USFR and leading income a U.S. have anchors strategic We that to it’s good of anchor portfolio.

funds years it are of constraining lot adds yield a the enhanced that pairing we where passive people top that all active But and saw active Alpha extra X% or and ETFs we the the of four AGGY doubled yield in Alpha this to after approach go it and year. Modern risks fund yield Modern there, have with ago AUM since enhanced it’s funds has was our active

XXX and lot XXX, we the It started the and and pairing But USFR of together. million AGGY talking fundamental strong are days year by it’s keeping strategies WisdomTree to up investment-grade performance. beyond we it’s about are at very high-yield credit barbell those early going showing that are applying to

are $X.X been, we’ve go growth to for in we think to platform. of we as that continued about growth from we’ve as and seen are course we billion strong billion So, AUM poised $X.X

Macrae Sykes

much. very you Thank Okay.

Operator

Thank you.

Our next question Mike Carrier is Bank of from from America.

now is open. line Your

Sean Colman

Hi guys. This Mike. on is actually for Sean Colman

associated versus distribution with other distribution them? on focused margin incremental associated just wondering commission-free the just the assets we assets fees guys So these given with the are channels, clearly you are growing platforms. what And on is,

Amit Muni

Hey, Amit. Sean, it’s

revenue generally margins a get that. depending the on that various of share don’t disclose or platforms. a But it’s upon share exclusivity priority level the – from we individual speaking, pay expense our with of we we percentage We So, just ratio platforms. these the

XX% range XX% to ratio. from anywhere can It of the from expense

from see us. the been you to Kurt, very to presentation as additive drive something? for can wanted and So, add revenues growth for helping it’s you us and do

Kurt MacAlpine

Sure.

Amit and are leaning the at seeing way the of strategic a that, marketing things total of it you’ve we as just of into partnerships, our internal one heard it distribution productivity while of would lot these gains cost are Jono just is about from we and I So, is from efforts. and part think the distribution looking

the while, the cost for So, internal as overall in business the it. gains one our be strategic hand, of cost a seeing partnership increasing might are reductions or we in productivity result

on a the the and going lot that space and what we are last the the we The partnership deals been historically. second in than we’ve newer are lower mention building thing for we’ve of coming years that relationships at number is, seen forward of rate are to striking a

we we some the partners addition currently. So, are and realizing onboarding from and expanding, work in with adding some gains that or with also to are synergies

Sean Colman

Thanks. Okay.

Operator

you. Thank

Alex Goldman question Our from Sachs. next is Blostein from

line Your open. now is

Ryan Bailey

Bailey Alex. Good morning. last for This Maybe of is you actually in hitting points the the from filling Ryan on one question. made

changes years actually In you shifting terms couple you a able of of pricing of that seeing existing ago, was to partners any where the some you’ve that build prior there partnerships dynamics with been assets? those had or are

Kurt MacAlpine

It’s Kurt here again.

similar we growth commission-free to market we wealth happens, how when the of well and are the are I placement space like strategy, management, This positioned and a seeing, rapidly market. are – they think in that. rethinking quite model yes, our has portfolios segment are around mean, really about growing ETFs, the we product pricing where particularly firms that lot of So, their the in things the been the of

to productivity but in from So, pricing gains also both from new the answer yes, your platforms the and existing historical question, partners. is coming partners, the the

Ryan Bailey

for you or Okay. both like trying about you expense, driving active ROI investors? do retail have spending Got good across more the just front maybe marketing on where returns question when it. and better of do And get there in think that to are on product then, like showing how on a passive, one if product marketing a very AGGY on marketing out you

Kurt MacAlpine

Sure.

marketing. is is is marketing two it. When here and there Kurt which our strategy, There distribution there again. is parts sales about wholesale efforts it’s to think we then So, the I really the mean,

investors retail them. touch three the different ways primarily there ways, specifically, couple about different of we talking are you a that If is

of product a partnerships is commission-free place in that our today. and featured we prominently lot placements AGGY have through on the One,

ticker is friction or the there awareness The So been of of doing strategy that then business has the commission-free. buying from removed.

give most and marketplace the platform those us are the educate specifically to looking end-consumer to And what we on partners a do. of strategies and our

So, this – commission-free access piece that’s important. why first that’s around to just so is the

the is advertising. around piece second The

So, see today. add WisdomTree you the television pioneered years a of that ticker the financial of lot ago in channels a number XX second

really financial – are So information. a relationships that individuals of tap what what we’ve a yourself and their a means into platforms our these heard these of using are lot platform found lot as the execution of investors it from gathering do news sources we

context is an we from it example, seeing perspective sure platforms, featured AGGY, it as to on the also in make of recognize marketing the would So, can then a that in on AGGY prominently so addition television. they

additional So an contributor. that as access

third paid have but tracking whether aggressive through where different also through website our with lot that’s is, the or a a advisors financial engaging Then mediums, media search that. that’s our marketing very efforts, like or are of whether blog, strategy piece we digital we end-clients and things accounts, social online

this approach. the the really reinforced those prominently advertising accessibility, from perspective from an digital with featured making relationships it’s continues perspective message three-pronged really So a platform it and investors. providing to making after hard going are sure Building marketing then that get we that and to sure

we overall financial And equation. sales what as answered very approach wholesale that while of advisor, we in is the adding end-investor, to distribution that context how I be it an I to mentioned, just well, would would target similar

Ryan Bailey

answer. you for that Got you. Thank Thank it.

Operator

Thank you.

from Chris question Shutler next from Our William Blair. is

line is Your now open.

Chris Shutler

AdvisorEngine And Junxure? update good just us in those? your on each morning. we of remind get an Could and ownership guys, share Hey

Amit Muni

Chris. Hey,

decided that think as let just year. to was reminder, just given AdvisorEngine an We expire. AdvisorEngine, didn’t conditions. remember, at option market buy time late option last prudent to that We it So, had we a

good relationship. a have We

AdvisorEngine are remaining do extent with want majority, To largest to them the XX%. buy we to the about interest. We minority something of the may

very do. are We will we we when announce But sit happy where are. something with where we today, we

Jonathan Steinberg

And Chris, just to clarify, this is Jono.

is through Our of Junxure ownership AdvisorEngine.

So XX%.

Chris Shutler

appreciate clarification. Okay, Jono. I Thanks, got it. the

Jonathan Steinberg

My pleasure.

Chris Shutler

U.S. for your $XX I be to it’s compensation, with I $XX think million you Amit, in said going line strip just guidance. And million then, The – one trending it’s you to you. million of Is fair it? of – I that. year, are roughly severance this way think $X of far high-end trending it the the looks so near at a that looking If like out

Amit Muni

we range had ex of midpoint it’s say, little above given the feel year. the that a we range in bit U.S. HEDJ the from the say, I of that the comfortable and beginning I’d with DXJ

you the have strong. see, As very been can flows

barring the second in the year, say, items the in half you with I’d unusual second So, for be trends that I that of now, seeing think are should half. any the we line

Chris Shutler

And just the been fee a one. Remind rate The then, me has flows. ETF quick some good Okay. gold on seeing that. Swiss lastly,

it was think points, that XX I basis right? is

Jonathan Steinberg

it’s and Yes, now points. basis XX

Chris Shutler

get that did lower When Jono?

Jonathan Steinberg

flows recently – all flows. Just post the post the actually almost

Chris Shutler

or driver competitive-driven was And that what there? was the

Jonathan Steinberg

being it very that competition-driven. Some dispositioning long-term a it’s gold-oriented But just some the for commodity, marketplace. and metals,

Chris Shutler

Thanks Okay. lot. a

Jonathan Steinberg

different price Different funds at points.

Chris Shutler

thank you. Yes,

Operator

you. Thank

Our from next is from Brennan Hawken question UBS.

is now line open. Your

Adam Beatty

Beatty Thank for you morning. in Brennan. and good Adam This is

First, the little on new initiatives, terms us I distribution a are spike to in on you getting of as you just could sometimes of where if the platform. on can a expense give get know, bit different you sense platforms?

you you think growing as you number on with platforms think where on you those platforms, sort your on organically Thanks. versus of stand that? more do profile, that right additional about to getting So, are of and now, the

Kurt MacAlpine

again. here Kurt It’s

think, really us. approach I for a it’s two-pronged

the is the across platforms different most on matter. that all, is essentially making execution And your is, of we sure those that prominently are one driving sure second So featured platforms. and if are then, making maximizing really we point that distribution not

standpoint. So, the I today, an you execution so most platforms the these if say, typically that using would RIAs custodian at landscape look are from

increased significantly way We preferred presence in entered a Schwab, status presence, Pershing are our increased platform TD the at quarter. Ameritrade, this our we’ve on at and significantly

TCA on and a of platforms. other number are We

vast as say, of going RIA we are control well custodian assets, majority on the the So, the as platforms that standpoint, I from forward. an would the flows

will IBD you continue think where see the I us space. in to expand is

sponsor. ever to an firm capacity with partner first the an were IBD we in So ETF

when year, with we Last partnered Cetera.

initiative into that a been year the partnership of since with via Vest, with relationship another into we’ve as one a space We’ve then, one strategic about firm and Kestra. well. this added expanding HD platforms been called are we to So and RBC

you a are the plus into in moving think, mutual space our considerably growth RIA from the IBD in make ETF funds IBDs are strategies are trying prominently space lot So, are sure will fact I and how that of featured specifically given away we we see best the the today, new to coming we position. these

which to other we with status associated not note particular been there platforms. The thing it’s the the in positive negotiate is able as preferred partnerships, is really just there serious on about have is implications opportunity sponsors think it. that and There is also, ETF their these to for flows reflected

opportunity benefits the the of is not cost with also it, doing it many there cases. doing associated in So, but

Adam Beatty

Thanks appreciate angle. great. comparative good. a That’s lot the That’s Kurt. I

looks of many stock attractive franchise of perspective, – considerably. in like And that’s positive a shareholder momentum. kind built some more like you’ve you’ve ways. operational to it is Turning a got broader But the down

distribution. broad a international product line-up, got You

maybe wondering Just that or would a for around on been there company? color review could you the Any great. any strategic was other options be if the give with discussion Board broader you. Thank at looking

Jonathan Steinberg

are all management. even investments. strategic are But faster the firmly we returns best in we that and see firms asset to of believe Obviously, obviously on amongst in like our stock positioned we that the we’d disappointed

of And HEDJ up you we and level funds ECB success and talk XX% the interestingly DXJ the year-to-date have exposures of also how masked every and are lots about how held and very and or more positive. share aggressive have aware market with is those outflows sentiment just Board Jeremy recently at actions, heard their around HEDJ European turn maybe could grew to

the but what fiduciary doing. we moment So, we our very aware we’ve been are of pursuing acutely committed are to at responsibilities,

Adam Beatty

Got Jono. I it. Thanks, it. appreciate

Jonathan Steinberg

Thank you.

Operator

you. Thank

Our Housum next Keith Research. from Northcoast is from question

Your line is now open.

Brendan Popson

then, do Good question I to the How guys. more for turn ask This want your And on looking the to Keith. a is business the quick of about business just you majority guys like that? you a on doing return about that Brendan commission-free for deals – morning investment think on of kind are into Popson platforms. model?

the working of case-by-case where kind are on? with now? Thanks. kind basis Or you that a of is comfortable just you sits Are that it companies

Kurt MacAlpine

MacAlpine here Kurt It’s again.

If onboarding then relationship. entered ROI is you costs. think with platforms, vast from - first do about of The about ongoing – there not we've commission-free business partnerships onboarding and these the about really into relationships the majority come that

is I it the be think of what part on cost So, platforms. getting the might of to

been couple of deals instances in to they are majority with with this not would investments functionality for But onboarding say the available cost a associated we’ve and fees has requires it. them. space There unique platforms associated of with where onboarding make some operational I some looking done this that do come

generated model, So a then, overall. we if essentially success you because, that shared think them basis, the their are platforms about it’s we’ve on it from go-forward a paying proportionally to flows asses and

are success their as proportionately. So, and our tied are we to growing paying we is success

it we marketplace and overall terms in different with the As about of mix there our that mix, strategies. shift are serving and we kind is working forward our segments think a lot of asset of of or going clients

relationships struck RIAs are independent of with platform and platforms. broker/dealer So, these a deals and lot

Sometimes the times the themselves, with custodians. RIAs with other

and it still be using strategies the There don’t marketplace institutional are wirehouse the segment of programs channel is the our things the a institutional U.S. very lot international marketplace, that where where commission-free and like of large U.S. marketplace, a them exist.

in platforms see that don’t to at where say, are seen share positioned of prepared us remarks, would well today. you we his you’ve a see will given from are. take But Jono, shift success those I I heard and we total because how in the continue from about as So, it

Operator

Thank you.

from Suisse. question Craig Credit next Our is from Siegenthaler

now is line open. Your

Craig Siegenthaler

follow-up. the for Thanks Great.

markets rate from months, AGGY the and with shift I sentiment six if to are So, see looking demand USFR. next and of investors’ just hikes over a to you for want couple seeing follow-up the

you do a And think bond you And don’t credit very duration you lower could I long ETF, other have strategies. it sort this so of step-up think backdrop. in – have know rate I

on there? the front product So, any thoughts innovation

Jeremy Schwartz

Jeremy Hi, Craig. Thanks is the This question. Schwartz. for

with curve, year the structure expectations what’s mean, rates one is, term dynamics you of to inversion given higher the of just segment the think also of than the and So, the the is three the market like cuts I things of and yield space. and interesting bond USFR

the So of models few interest in some longer there. quarter duration. one year and is what, in in treasury, or AGGY a high so a more Ag the yielding have lot got AGGY. like last and seen in a way, It’s duration through just than it’s you months, the interesting recent

pairing of has AGGY about and the talking a and apps. nice bell duration USFR are yield together We very bar and of pickup two that in WisdomTree that them and cutting pair

So duration. to have you from don’t that

I others, of early seen today. from building the been, AUM a And mean, nice has double enhanced yield you’ve as got record. we’ve very to AG, track year that beginning that’s short-term also SHAG But also the

position, robust credit So those fundamental track as we get are we at do good a options strategies better record. think even very very flows more

as silver And are around like are central those as are if power having more what’s cutting protect really expectations the silver you benefiting negative big yielding things positioned, we looking is really at commodities about as purchasing and world People you too. bonds options things how that like and rates, like that. gold and get think for gold more action things

Craig Siegenthaler

Great. guys. you Thank

Operator

further this back questions. call you. CEO Steinberg, showing for closing to the remarks. to like no I WisdomTree’s Thank At would am time, I Jonathan turn over

Jonathan Steinberg

to And you day. in will Have you interest to want we of continued your for next all quarter. good a thank speak I just WisdomTree.

Operator

for program. Ladies This conference. thank gentlemen, concludes in participation today's the you and

You now disconnect. may

WisdomTree (WT) 26 Jul 192019 Q2 Earnings call transcript