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WisdomTree Posts First Profit In Q1
By Olivier Ludwig | April 28, 2011 11:11 am

Related ETFs: CYB / ELD

WisdomTree, the only publicly traded exchange-traded fund company, posted the first quarterly profit in its history this week, fueled by asset gathering of new ETFs such as the WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD), as well ongoing increases in market share.

The New York-based firm earned $200,000, compared with a loss of $3.6 million in the same year-earlier quarter and a loss in the final quarter of 2010 of $600,000. Revenues rose almost 67 percent to a record $14.5 million, and were more than 8 percent higher than in 2010’s final quarter.

“Strong net inflows during the quarter resulting in record AUM and revenues demonstrate that the diversification of our product set has enhanced our ability to gather assets in changing market cycles,” WisdomTree Chief Executive Officer Jonathan Steinberg said in a press release.

Its total assets under management at the end of the first quarter were $11.3 billion, a 68.1 percent increase from a year earlier and more than 14 percent higher than at the end of 2010, the company said. Since the end of the first quarter, the company’s assets have grown another 6 percent to more than $12 billion, according to data compiled by IndexUniverse.

Apart from its reputation as a player in the world of fundamental index ETFs that screen companies for earnings or dividends, WisdomTree has emerged as the one of the brightest players in the yet-to-truly-flourish world of actively managed ETFs. While ETF assets now stand at $1.123 trillion, far less than 1 percent is invested in active ETFs.

Still, ELD, an active fund that invests in locally denominated debt from the developing world, is well on its way to becoming a $1 billion fund after launching last August. It ended yesterday’s trading session with almost $917 million in assets.

The WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca: CYB) is another active fund that looms largely. It has more than $650 million in assets.

WisdomTree, whose shares are currently listed on the over-the-counter “Pink Sheets” under the symbol “WSDT,” filed during the first quarter with the Securities and Exchange Commission to have its shares listed on a national securities exchange.

 

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