WETF - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the WisdomTree First Quarter Earnings Call. [Operator Instructions]

I would now like to hand the conference over to your host today, Mr. Jason Weyeneth, Director of Investor Relations. Please go ahead, sir.

Jason Weyeneth

morning. good and you Thank

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

my and the to call Now to turn over CEO, Steinberg. it's WisdomTree's pleasure Jonathan Founder

Jonathan Steinberg

good you, everyone. Thank morning and Jason

Schwartz to and Then QX it I'll provide guidance. Head we of with before open the updated your results call will Jeremy turning discuss comments on outlook will questions. our financial discuss Global Then business Amit to our product over and some take Research, performance. positioning

through unprecedented and is healthy are and employees their foremost, and as remains times. protect our crisis, families' And important I we These safe. First assets, our priority and hope manage to this most everyone our their families.

largest the service leverages the infrastructure utilized and most past technology the technology the model for our global remote and outsource workforce. us entire over our We environment. switch The of allowed years, end, that home financial world. business firms business our best to quickly we investments capitalized of from a To to and the to seamlessly model in in working pivoted combination strength our modern several

an excellence believed remotely for hope to XXXX client we and of a we standards with our significant reached compromise We capable inflection our high very growth operating point with we important in no momentum to near-term of had trajectory. and normalcy, indefinitely service. operational While are entered return

temporary and we the this While volatility regaining as disrupted market are we setback was our only momentum momentum, the speak.

and plan on Our intact growth, innovation. last remains quarter, XXXX are we as performance focused we and discussed

the expect of the shines. poised to should This low for a are as difficult fund structure in gains funds XXXX market prove migration pullback. securities sold were to meet We from mutual during superiority funds, ETFs the as to accelerate capital redemption year the to to be mutual requests holders cost basis one to deliver which

funds, as bull one advisors obstacles pricing the Additionally, the of adoption for were existing to active but was clients our advisors. of the products their performance, our of that market consequences who friction assets products many due acknowledged aged to the switching. unable of we've encountered superiority transition and or to reduced that eliminated mutual ETF versus The to has pullback tax our structure

The to pullback has review asset allocation. revealed the need

shift while indicates Our of asset rates, spot. should their the and high income research oriented a focus advisors a in remain In exposure. allocation XX:XX reducing near market nearly decade. sweet current wedded we WisdomTree's believe look dividend at haven't approach environment interest fixed quality This a hard zero to is taken equities investors to

all February will launched co-branded third-party with portfolios We models of anticipate are range model accelerate. channels. advisors across of Professor wide adviser The utilization in a Siegel resonating

included featured and several their models added with models. in our were the Model tariff handful model was of Park to of lift, strategist our TD a to off Envestnet. LPL Our center to one of of relationship to including being a good Avenue Securities business continues across Model added platform ours The We marketplace start, Portfolio and small funds providers. their as gain momentum

RFPs the In continues to of and to presentation grow. number final-list addition,

changing landscape key the thought and partner focus. clients leader help is Being trusted a a to navigate our

in we driving over seen a program in function client While the XXXX, of the change solutions since engagement past our step we have been engagement have months. client successfully deeper launch two

For calls March with advisors pandemic, those Siegel. XXX we example average attracted times nearly advisors. On three per a number In of hosted format prior the for are calls we Professor monthly moved to weekly conference call. the to reaching advisors and

we prospects. than distribution our represent of not those strong have more now While covered are relationships slightly with attractive and by advisors, many team half actively

content crisis. we in the pages March, volatility relevant and our and The topics. leadership XXXX center relevant turn of created In to house the have WisdomTree month March, on unique website a thought visitors with that highly timely advisors market to during illustrating

seen QX distribution had teams in XX,XXX unique we've our year In QX and website a Across and from XX% XX% high users aggregate, prospects. we've tools with increase global interactions ago. quality logins and digital clients from from registered

committed While these their manage customers. we markets, better these business their are clients difficult navigate helping times, remain to our serve and

are by we and market large same for products We ETFs, as efficiency in ETF gains have the liquidity, offers environment past The followed transparency, market and management. best been scenario asset for share dislocations found normalizes. prepared structure this tax the that have

We costs, of are will differentiated, the confident have we managing responsibly as managers, committed WisdomTree declines and to are well our impacted the all but discuss, asset market Amit and our positioned. franchise. health Like business and well-being remains

have the strategy. We right

challenging that on side signs positioned encouraging despite and of are are investments trends the our we seeing paying right the environment, We secular are off.

call the to turn over now I'll Jeremy.

Jeremy Schwartz

Jon. Thanks

- crisis, in environment. for see rate demand Starting an on demand out recent low extended we commodities. coming for increase inflation of government interest measures pandemic increased counter to further the believe drive equities And Slide X, will

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quality and cap allocations portfolios. the important flows, in from highlight Standouts the developed a the for AUM right, equity very performed growth, other longer and the chart on of To opportunity the you growth strategies see has of performance as large can through quality basis. the crisis with the couple future term billion cap most U.S. is in driven our on a areas, and AUM, global large suite international of of size two current X well

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across state-owned very also suite. We well performed the on our a during ex basis enterprises downturn relative

Markets Fund the a product the illustrates product XSOE broad in importance can right and innovative of our environment. rapid the deliver Our Emerging team scaling of

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to results I'll first discuss outlook. and over now our turn financial the call to quarter Amit,

Amit Muni

Jeremy, and everyone. Thank you, morning good

quarter X, Slide we the on started momentum. strong with Beginning

mid-February. we U.S., $X positive hedging the high February, flows of six in end over We including of DXJ. inflows by had billion reached the Our $XX.X an near and AUM in generated billion months of all-time of

ended assets under experiencing nearly of outflows $XX conditions. negative of management However, current million to the quarter and after due from billion movement $XXX market all we billion $XX.X market the with

inflows April. in taken we far of However, billion so approximately $X.X have in net

from and the by listed million continued We energy the flows into products strong driven were our this Looking leader deeper ETFs inflows growth, largely in demand XX% of at gold representing flows, generated products. $XXX inflows oil European we April. organic in and our the industry

those over see outflows. quarter U.S. had we generated flows. in our the that of hedging of March, outflows On inflows spots volatile Despite funds headline, XX% which of and funds XX% did month our up of $X.X in of for bright DXJ we the XX% that of made billion the side, generated

Growth, Our generated Emerging almost ex-state-owned our Dividend $XXX and Quality quarter. Dividend of the U.S. flows million Market International on in Hedged Growth Fundamentally, Strategies

fee just to a change. capture due results quarter AUM the for Slide the million $XX due one financial Now our turning and decline to basis down point on average under mix revenues to X, in were lower

On a million. a GAAP basis, loss net had of $X.X we

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

our we quarter, currently AdvisorEngine. disclosed we last As exit are investment an from in pursuing

process the still continuing, yet not finalized. is is it While

we quarter, of non-cash charge million. down $XX.X a our took This value million of $X.X to investment remaining impairment the writing

ongoing, the but organic today growth attrition can't asset remarks or our prepared exit that change we anticipate outlook. drive emphasize me will Given do comment process beyond the our any not our is of again we investment let in

also a the We our we operations. gain Canadian $X.X increase And after-tax, a from for had the our commitment million $X.X prices payments, during non-cash gold of net gold the in future quarter. reflecting had million sale charge lastly,

business are the this now Turning we you will rather to next than segment is slide, margins two. one where note, first the reporting as on quarter

our increased within base our initial help AUM. Our margin adjusted average we partly flat margins lower for guidance were controlled the cost operating range. XX% at quarter as offset to to XX.X% Gross

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

also to well-controlled XX% as spending We costs, our operating expenses Our lower AUM. costs decline discretionary Fund around remain sales marketing, due operating significant compensation. as average declining a particularly in and had sequentially. variable well declined

Given full making environment, we our operating guidance the to year current around costs. reductions are initial

a given be headcount result the full move $XX $XX will AUM. any year no to compensation expect our the to decline of outsized reductions in a be to result this of Turning absent, coronavirus. as there This the lower Slide significant as levels for incentive compensation in between million XX, year is AUM, we

The our savings offset XX%. announcement the margins range Gross to primarily is revenue, from closures. in in our from expected are XX% partly the now to between of recent by be fund decline reduction

expected to our are because $X approximately the of fees decline now distribution million be in Third-party lower AUM.

spending by discretionary for are reducing million our full-year. We $XX million to $X.X the

prices spot expense the Our million year. based and would stay current times a for is gold flat ounces price be the paying of on Based the us on commitment price average the this period. of $XX gold year, XXXX assuming of gold for full gold expense

way lower reductions prudent later now consolidated given expenses. revisit be the experience the rate is lastly, recovery market a our this expense may no year, the due environment guidance to long-term to expected These non-deductible current approximately we XX% If potential. in and hampers tax And accordingly. our are in growth markets we

With to with debt do remains regard our February, ample debt. our our our on advisors our current dividend. with pay priority issues refinance to our down capital, and We our not our support we sheet. we balance began AUM levels, and discussions have In leverage at have to liquidity

work our execution the and optimize with to to continue advisers We timing.

Jono. would over I back to like turn to Now, the call

Jonathan Steinberg

can the Thanks, and now Jeremy. We Amit questions. to open call

Operator

comes question from Siegenthaler [Operator with Craig Our Instructions] Credit Suisse. first

line is open. Your now

Craig Siegenthaler

suite how repositioning the in the alternative cash the rates income Just your backdrop of current the FLOT. some including given fixed interest decline products for sharp quarter, overall in are like

Jonathan Steinberg

would Thanks, please. answer first crack you take the Craig. that at Jeremy,

Jeremy Schwartz

about for a and next be Yes, a short floating that yield of people core question, and forward. scaled sort think talking Kevin curve helpful I you pre-sizing about our vehicle treasury at looking about people product which who products our cargo rate ag really comments their of we've worked USFR, well the about of rate with if we year our is to And lot the really yield made end Flanagan meaningfully, having and to really, duration inflation Income let are the AGGY, USFR to where Fixed great the been Strategy, Craig. floating return combine have is a our enhance enhanced team barbell, Head both

treasuries that has also traditional credit that bit has There additional been treasury no on premium this government preferred the even vehicle little made yield risk in a T-Bills. space over

risk, that mentioned to on has more continued you come treasuries, with which bonds see that interest in credit compared we've through to So pressure. flagship under the more

enhance as So position the as additional well USFR yield go the - core low that treasury and people our historically is good for a can given answer, income rates. core

Craig Siegenthaler

misquoted or actually thanks. my I actually question. it, a And USFR Got tick in meant

confused info I momentum. can a for from which especially you're color sustainability demand product, with Europe, earlier. a but your around got Jeremy, you go themes, in commodity lot about with of Now the you're lot seeing products of a CRUD, looking has talk And which talking competing about the was along I of

Jonathan Steinberg

Jarrett and add add. on So, Jeremy, why you'll COO, comment if Lilien, Jeremy's maybe President don't you you Jarrett start anything and to our then have to

Jarrett Lilien

lead We outlined this more economy the as idea that all this government spending, inflation we open. think to can once pressure

those oil So is one inflation for back coming tactical more story much think next is specific bigger items, we view of a year. longer-term perhaps the

inflation if has commodities, is think whole that gold, whether interest so based its our view a the really of lot And broad we in demand platform coming longer-term back correct.

highlighted interest so inflows we you clear, cemented that is XXX%, sure, XX% we well the was get oil the market oil, leadership but we the very market mean, leadership we basically there. in AUM in for position share, over I very our so if has think and broader think was been position have clear, oils our but was behind of

Craig Siegenthaler

you. Thank

Jeremy Schwartz

all overwhelming products one bringing energy, industrial believe across new share, in but in leadership Yes. And has bit. these with I there, gold, our about but the just really our that views adding competition. I Jarrett amongst guess the being and only as are we not It positioned the future market a in revenue then all forecast in mentioned metals, for little positions board are leader an all position those to to the year-to-date, of and well are the it's number

and So product, we've we've got the got performance. the

team strong good this strong how strong got platform, pandemic. robust the very our is, team, We've is. the you've mention I'd operations, unprecedented most thing experienced through disruption, structure, managing incredibly other and process, are had The we

And cutting and OPEC not same the a oil, and time look price then obviously really enough. specifically if to pandemic demand we the at deciding by reducing at war supply have

the We an just the market. in the that's leader our I why of volatility unprecedented team to in unbelievable doing have market, a think and disruption job whammy showing we're double is bringing

Jonathan Steinberg

And I'll just add.

unprecedented gathering been this seen have in We leader. has which oil you CRUD, asset the and referenced demand

one against number CRUD in funds have most. is of the We taken the the a other that but benchmarks CRUD has same

for in just really Thank temporarily Craig though questions. been creations you, be of we the taking but have recognizing short-lived in that's your franchise unusual abundance place halted the the an will energy We moment, has the but prudence that dynamic a very at net-net, terrific. think halt

Jeremy Schwartz

Yes, to and taking $X.X year-to-date. the I Energy billion again products energy XX flows in just got we've in our adding overall that mean expertise of Focus' and that that, team and shows over just

Operator

comes Our Fannon Dan question from with next Jefferies.

Your now is open. line

James Steele

actually question. James in taking for filling is Thanks This for Dan. our

appreciate of the some So course there the quarter. but the tailwinds some of throughout negative structure, were first ETF headlines for the I commentary on on of kind vehicle the

was held that So how going how view as I WisdomTree's concerns. curious forward? fits up your just mid as in kind liquidity then of And market product to

Jonathan Steinberg

negative around the income, have I you fixed question, what as you think the only headlines Jarrett, don't why you see really fit. add - answered revolved but

Jarrett Lilien

Yes, think it's this morning about opposite. the frustrating been persist which really I are Even itself. has proven where structure actually Financial the one fixed that of had traditionally to, negatives even they, the things. mean is the how the can to the income there article market, about structure, in sort I in people me is but and pointed of of talk where the is People Times

up, structure discovery it's disruptive been price So liquidity vehicle. time not through incredibly a a been this it's the has vehicle, but only held

it's the disruption side, and and management management say, thing argument in active situations the underperforms well it's active say maybe now time holding to really there's management people Well not on say again people will has okay, those now. and I'd perform. opposite. active it never again every a and these I'd losing on So are similar

things in So is of accelerated disruptions look ETFs that right look XXXX, being happened the again to now, sizable financial fund and happen happened in like market again how the this there the mutual of that in with it marketplace the at market when take structure here. the the and end for at and one we trends disruptions we we see share in trend ETFs crisis the are of accelerates to XXXX

extremely that, critics up this the of than direct is the to more really think and answer of at structure, getting be it So rid all holding question your well point. should I

Jeremy Schwartz

point back To I This is most managers of proprietary of get the must is we these where Jeremy. This use sort high market strategies bond modern the has the to and two active lack fundamentals risk access liquidity. add pay that's bonds. of one performance that the to been - index And the the on talk come think about our for defaulting. ability alpha We comments people to yield on these and narrative. the high-yield own launched bonds of quality screen and

And mentioned performance strong X-star and X-star two yield are X-stars fundamental X-stars AUM funds and so, really XX% yield I at based category. and in with are both high funds of the top high of were their our being

track say yield forward was, the two high that opportunity the strong performance asset I'd gathering to records, So future given generating. are funds we those look

Operator

from next question with UBS. Brennan comes Our Hawken

is open. line Your now

Brennan Hawken

given is your whether capital Just talk down not the about some or here Thank I whether stock some in this saw a there about debt level Could the the How given to going versus be thinking attractive buybacks. maybe plans that was marketplace? to quarter. you're valuation not or curious how for you balance debt some paydown do paying or you. here thinking uncertainty the conservatism you're you for need of priority about

Jonathan Steinberg

first. you please take Amit, why that question don't

Amit Muni

our in and to our paydown the capital continue I our debt mentioned of priorities continue As remains to support dividend. remarks, to

because As of buyback we're quarter, far term buyback covenants as have as to now. stock our I of unable on that the mentioned last some right we loan,

as had sort can the refinancing in and going that practical of on put back going on the process again debt. it's but process of in pricing. to we our start hold, up as what stabilized we're to soon get are given market, We that terms market that and good good We was

the we the thinking we're But and the comfortable those paydown now. two capital when debt putting and feel about capital right priorities our are of dividend supporting that

Brennan Hawken

apologies as way a guys like if this, calibrate Great, how ultimate thanks. you as there would for is you leverage far you about to that? levels Amit, And to referenced but think the and land where

Amit Muni

and I a we Sure, depend it that will see lot our on power mean of the upon outlook earnings AUM. our

Our leverage loan, when we we very with. the felt levers the on term with, on took today first took we we very comfortable comfortable that feel,

be So uncomfortable going loan covenant can a it with. not market a term to depend outlook. that we're has you we lot of a on sure will on just take feel But that leverage

Operator

Our next Robert with from question comes Lee KBW.

open. now is line Your

Jeff Drezner

Lee. This is for I everybody Rob staying question. And Drezner Jeff for my and taking on safe Thanks hope healthy.

I of question quick the market Thank as on or expense curious was April a Just includes is in that just rebound guidance you. quarter guidance, the updated end?

Jonathan Steinberg

Amit, you please. take don't question why the

Amit Muni

includes that Yes, of, any April. if as rebound that we did see so in that

our is guidance. most this So updated

Jeff Drezner

Got And to okay. that? on or in thinking around of if you market just another rebound we continues how about a terms that are then downturn, see it, flexibility that, the if follow-up

Jonathan Steinberg

Sure.

We have to are tied costs. do flexibility and that have expenses our compensation expenses. is fund-related in AUM that there variable we So obviously our predominantly

might some see some increase continued see those we So do we down. - as we naturally if of conversely, of will of an an and our see uptick, come expenses in sort we do some do well. If downturn, expenses if

will So on time. just market in it what's the going really depend at the upon

Operator

with Our Mike of comes from Carrier America. Bank next question

now is Your line open.

Shaun Calnan

is actually for Calnan This Shaun on Mike.

that's gain, the capital to large off later begun funds we if those movement or in back with realization we're due and expect see ETFs just in sell going if Just to into saw already XQ in wondering into year? mutual the funds you've mutual flows the ETFs you so that of to something from would

Jonathan Steinberg

follow it on why Jarrett, start then don't and after you. maybe I’ll you

Jarrett Lilien

it. picture big seeing Sure, we're yes

period customer to funds, mean about for I flaws you where a be which structure. of going mutual one gains, taxable really points worst those experience while, distributing that also have a situations they lousy this the picture one this that big is performance, is have be in the could and could negative of for out but also We is

it. So we're seeing

to expect it We see continue.

saw our moves a tactical some of or where per we not in represented. type immediately we short-term April, into very where lot underrepresented As flows of are categories March categories out and we're represented and

of So that starting we was short-term to the normalize. but sort that impact, already see are

and Jerry those said see funds see us that now and to XX, we in We're beginning As normalized funds. and have X-star include X-star over to XX% beginning extremely flows more of in products. reaction the our AUM and positioned and widen distribution those out well

Jonathan Steinberg

that And you as just I year would accelerate with to in the attrition get the would mutual end. closer say funds I'll add. outflows I expect to

down. advisor So out a are it’s these particularly those probably your capital when duty funds your you, that if are gains, to talented hit you're customers get before they with

our CIO really around a it's with ETFs business WisdomTree, huge interest. seeing lot where outsourced quite for a education frankly of opportunity our For model and helping solutions we're

it And by basis, Jarrett the March very come. people on though was but so more a tactical, all starting we're April, very more said behave going to trend forward as see very, strategically encouraged and to -

Jarrett Lilien

consecutive years year and of first time very it months in February - I a great like the that five over including streak and interrupted just add in seems continuing. that April and been was hedge one going. - - for inflows more at important happened now five me that let in disruptive has is that been February And remember but and mean finished everybody, but of has March momentum the six end Jon U.S. DXJ to we had ago, just thing, the

Operator

Michael comes Our Stanley. from Cyprys with Morgan next question

Your line is now open.

Michael Cyprys

was what into maybe model talk flows quarter dive that give into some two, And of the have portfolios your in or hoping amongst I model in little about bit that guys the guys initiatives the you products And to that a models. you stands ahead? where months little in bit were see saw the in today on the more could your the products. more. of color you place just models could you us portfolio coming sitting out Albeit you various a get AUM

Jonathan Steinberg

for think probably Mike don't thank you stuff Jeremy start add. have Jarrett, then you you'll and question. why the I to

Jarrett Lilien

of Sure, has another accelerated of favor well to spots, of is outsourced quality income-generating see ETFs. which mutual another Reviews our We CIO. it's and all, actually at asset we those trend one models accelerating. allocation, again but funds this disruption look is of which that equities, first also sweet trends one

So, of today. specific we're to not the will we in the that. models me but net first time-to-time, really on is update inflows we numbers, acceleration what we're is seeing out models an From which numbers had into giving can But quarter. I say on encouraging

in our AUM and are up to the So even highs this now Obviously, overall in this time we but models, this exciting sticky is in of long-term disruption net inflows into new is why models. there is move, obviously was market money. back

such now expect of to in RFPs accelerated, up but by number the number in we we in of excited have all partners. the Cetera As great that as Avenue, signing Jono partners pipeline so has right some bringing remarks, a we his prepared that, have mentioned lot be success had Park on LPL, a and of great new

overall, So favor. trends our of well macro to theme accelerating of and in again, continued momentum positioned being the back it's major having

Jeremy Schwartz

Yes. is Jeremy. And this

and Professor I've been advisors if here. we've year this model going few Just of initiative WisdomTree, XXth the Siegel that got since doing with for quick with engagement time a him, with the - month series working been that comments. some the call the year emphasized most to weekly we're be the exciting XXth and the from This Siegel, I've the Professor full is on channel things is

leading run of execution we a I platform the single to pickers, future leading still a focusing package scale best solutions, And pickers. trend rate our with we're going do and think model of of focusing is set about on great adoption thoughts, exciting. it's trying big a our that continue our advisors, And Siegel really how I is single the really solution oriented opportunity not with and we're we model when adoption. we're for on lot mean, us, that some have Professor going about broader solutions to big obviously to really how thoughts, model get excited and but

Jonathan Steinberg

Jeremy. Thanks,

Michael Cyprys

any you would okay? hear you - And that thoughts other can maybe me

Jonathan Steinberg

Yes can. we

Michael Cyprys

Yes.

Okay, maybe your could I specific hear you you maybe thoughts party share so great. models. on third on Any and model understand additional not,

single So wire platforms and models your type other say RIA what IBD, getting pickers about the and into house, people's models. other

traction initiatives share color around there? and any you could thoughts and Just

Jonathan Steinberg

- our Part exposure their of of to the LPL being some was added models.

getting So seeing expressed the win more war significant I of sort sort Alpha data we to model I within sort better, in really models. and have frustration, advisors that like Modern in wires being large strategic third business is pickers say Alpha seems used party really a in with percentages it's Trojan that with Horse and in our would the penetrating major Modern like portfolios. of of and getting of quantity ways past, those It are broadly

in of it be I to all about, to by seeing an and been Jarrett acceleration. adopted So as again, for as that theme of the the an third-party again back we it's, think adoption The that Alpha models advisers. are I Modern being will - and prove accelerant cost think I've crisis going model was well talking

Operator

with Housum Our Research. next comes question Northcoast from Keith

open. now is line Your

Keith Housum

Just a housekeeping here.

from Is here. closing saving much guys of are few - guys in terms how funds fund? in there you terms you each a of rule In close thumb of been a have

Jonathan Steinberg

question that would Amit, take you please?

Amit Muni

fees - Keith, a Hey launch so thumb Both Sure. about keep thumb fund, costs is in mind. $XXX,XXX. Amit. to of us good a rule minimum that's of that's rule It of it’s to the approximately

Keith Housum

doing your seems you're be And Got to under I engagement. discretionary was I that - new guidance the - But it calls then talking terms the costs your out you're try maximize Professor drive with management. to things relatively you. assets trying understand other I the here. as to there AUM? in to, as dollars, a is revised regarding guys I'm reconcile of that Siegel to And some efforts looking that you for grow to guess

Jonathan Steinberg

start to like that? you on Sure. Jarrett, would

Jarrett Lilien

about Yes, exciting that's the that of one the moment we're things in.

lot we an a in remote. turned are upside environment where things down are are We of where

being Our important engaged is ever. than customers in be are touch having and them remote and more

with our with And prepared On that so we'd there. succeeding mentioned was those quality And interactions in way we're customers. weight think had global I XX,XXX that and above remarks average, five far, of interactions customers. again punching Jono each

calls So research we calls about do Siegel with which that specific instituted, and are on XXX,XXX a but something calls, of yes, just our the with webinars or subjects interactions, things, of like team day. video smaller thought very we a was those do interactions members others number leaders, that

call, you'll between again have X,XXX something on So XXX Siegel on of one those calls. a you'll have to listeners

you other XX on of XX might this research to have have hours, where people program We calls. those one

more personal and focus. more So

blogs we're the we been center mentioned that made number whole bunch and more a other We've of We've tools put increasing things. out. our Jono accessible. exploring the volatility web of market

now, sort I right our hands and we out going value-added it's in to how to a above is flows. think area directly client are engagement all and it's I and clients this right our leads punching way, in creatively working where on now think can spades think deck, we compete, of weight, but I honestly we're an

a initiative is today forward. us this So going top and for

Keith Housum

Great. I appreciate it.

Jonathan Steinberg

T&E of environment. shutdown happened. on that in us our travel of the just Pulling the just think not add that of savings of anything I'm light some television, back all medium sure just and hands the country. I'll that savings around news is of costing I taken constructive that's the And obviously and not in that's the this a virus out

was and, but period. to make, our to reduce this ability expecting way in any not decisions it to net-net, grow we're easy So

Jarrett Lilien

dividends, results better of money personally really better was team's and kind ad We'd another money engagements, where actually our are for getting But making they're they're disciplined, sometimes our the of spending innovate we but can on decision. these we closing can spend I proud easy in I somewhere else. we We're an the we whole opposite. it you good we margins say and mean saw area go and think it. I'm money better better that so been I that spend sub-scale, discipline. never something to the of if And fund is ticker paying up, decisions. But It's be it’s innovated TV. like hard virtual that

Operator

Cyprys with Morgan Stanley. a follow-up have from question We Michael

now is line open. Your

Michael Cyprys

marketplace, ETFs of circle points I on in just commodity some some wanted to of the volatility specifically back to specifically. ETFs the maybe around and and oil

about think there you and product you how in are ETF creation any update give on mentioned you that little there, leveraged vehicle the in thinking a an had you future products, that's ETFs Jono could if views - of I how redemptions. us invest altered I around you some had halt and the the bit of way hope contracts?

Jonathan Steinberg

great question. want a you do It’s to Jarrett, start?

Jarrett Lilien

oil that and illustrating structure, operations had platform, our Again, were question products To three strength had was we've of of think unprecedented of short. our some those one the We've again your our products all the back that the terminate. Xx two this to disruption. actually highly and gets times of Xx I process, long leveraged a

work. they to XX% you've market that's the how over. against is you the moves But Xx leverage actually If were fund got made and

And is a that but was Jono of now market. will we look as through so to three re-launch also somewhat and products. creations that's drawn up to products. the suspended in those said, about those some as And it prudence managing we appropriate expect short-lived, time just operating be suspensions volatile We've at in

good partners for for to your want customer, your market. You what’s also good what the but in do

I there one our forward. look and and good is the so platform, I when But obviously operating - enhance are we platform that we're team of think well learning can learn learning extremely the and things how lessons going we is is. how structure our at the the good how just that our platform good And will things we're

Jonathan Steinberg

so, add And Jeremy, let I'll me go and ahead Go ahead. end. Jeremy,

Jeremy Schwartz

on the I that interesting highlights of the in disruption platform there's also beyond the think strength that oil particular heaviest. one was the also where point

which So and Cushing, called the through that issue specific Intermediate oil to goes prices West were was the the paid full And tanks for storage these all was WTI fee was delivery. yet oil. the is Texas very oil negative Oklahoma, like spot one

very amount much And more oil robust in $XXX never oil the flexible $X.X of a given Brent as are of have billion around Brent Brent over of There is for prices, in assets if and million to the oil, it disruption contract higher platform delivery winner we that from actually people the went participate platform WTI, our we negative a well. in robust also becomes just AUM, we a of longer-term have Brent which Brent have meaningful oil. a XX% considerably

Jonathan Steinberg

created to And the let investors - in market me is lot just a business, money. to this make conclude, we're certain particularly very that of committed of volatility tactical significant opportunity long-short are for kind

it. we committed to So, are

terms through own backed certain futures will own equities, swaps. to bonds futures of physically In exposures as or or be can you product or opposed gold only accessed

we're of on when phone that stress, is choose, a manage I macro and we to when this the not stress hard think this world-class have stress. level the through anyone of around don't that is do There We it add see system to to necessary but that the partners, kind want does you we decline working world.

to is the is we're only think future oil way a for at but the good it. doing I access it, job

to are it we completely again So going forward. committed

Operator

comes Sachs. Our with from Bailey Goldman next question Ryan

open. now is line Your

Ryan Bailey

I Perhaps search ETF to views we we wondering retail just get other pricing or agree on on flows? what the of back question just Jono, are sensitivity one in opportunity on once from tend potential your with passive that advisors the share volatility to side you was to mutual funds.

Jonathan Steinberg

establishing very screen and if difficult pricing, awareness. than do ticker really We're - on other because liquidity defend get best economics. beta, Again pricing. with first be we with market you how The beta want can beta our we to we're it is, we to comfortable to be other than

and good example, have So of gold tremendous a on let's others job Europe. we as think very doing in say that I to we have relative an economics done

In in think mostly Modern most strongly which most beat terms or it where is dramatic positioned Alpha have trying The of returns. decompression, of it. we feel it where been you our We to comfortable about is rest the fee business, positioned beta. after with very number is Also the important and is when proprietary very has market.

this sell-off from Now it's prior crisis, been almost to straight the up a markets.

been has smart decision. pricing of allocation regardless a very beta So asset

markets has sell have market's a the from great you good differentiated feel it because particularly down. Again, very away mostly the opportunity add As WisdomTree. I over gives is turned strategies. led to value beta Alpha

the who strategies. trying gains feel Alpha positioned of the are to In fund the mutual business of year transition avoid transition WisdomTree book advisors we structure, well Modern into their to incredibly to capital at end help

question. pricing, it. I So answered the again, about hope if the we I good was that feel

Operator

will to Steinberg back closing for like the that remarks. And conclude call today's I'd session. turn Mr. question-and-answer to

Jonathan Steinberg

want as with healthy all quarter. to want everybody. managing again, speak you Thank just and wish interest possible. safe you Bye I thank you, of again to to crisis all. your you are next we'll hope disruption and through I and in WisdomTree for this I little the you

Operator

Ladies today's concludes and conference Thank this you participating. gentlemen, for call.

now may disconnect. You

WisdomTree (WT) 1 May 202020 Q1 Earnings call transcript