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--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
In the third table titled "Consolidated Balance Sheet," total liabilities number under the March 31, 2009 column should read 13,287 (sted 101,561).
The corrected release reads:
WISDOMTREE ANNOUNCES FIRST QUARTER 2009 RESULTS
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
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(R) 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 13,287 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.
SOURCE: WisdomTree
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
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The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
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