WisdomTree Posts Sharp Rise In Q1 Net

By Olivier Ludwig,

Shutterstock photo

WisdomTree (NasdaqGM:WETF), which recently completed an initial public offering on Nasdaq, earned $1.1 million in the first quarter, blowing out of the water the $200,000 it earned in the same year-earlier period. It cited one of the best quarters of net inflows in its history as a big reason for the results.

The company's revenues rose by almost a third to about $19.2 million, boosted by net inflows that reached almost $2.3 billion in the quarter-about 82 percent above the 2011 first-quarter flows. The New York-based company posted the first quarterly profit in its history in the 2011 first quarter.

"This strong growth in net inflows was focused in our equity family and is even more impressive within the backdrop of $10 billion in outflows from traditional long-term equity mutual funds during the quarter," WisdomTree's Chief Executive Officer Jonathan Steinberg said today in a press release.

WisdomTree, which describes itself as the only pure ETF company whose shares are traded publicly, in the past few years has ridden the success of a few blockbuster funds, many of them actively managed. Its success has cemented its place as the seventh-biggest U.S. ETF sponsor by assets. It ended the quarter with just shy of $15.7 billion in assets.

Among the more successful funds is the WisdomTree Emerging Markets Local Currency Fund (NYSEArca:ELD), which has gathered $1.25 billion in assets since launching in the summer of 2010.

In its press release, the company also singled out the actively managed WisdomTree Emerging Markets Corporate Bond Fund (NYSEArca:EMCB), which has gathered more than $60 million in assets since its rollout on March 8.

The company's results have been steadily rising on a quarter-to-quarter basis over the past several quarters. For example, its latest first-quarterly results of $1.1 million topped its 2011 fourth-quarter earnings of $889,000.

It ended a streak of narrowing losses in the 2011 first quarter-which, as noted, was its first of profitability.

Excluding nonoperating expenses related to litigation, shareholder proxy and exchange listing fees, WisdomTree said its "proforma" net income was $1.9 million in 2012 first quarter, compared with $500,000 in the first quarter of 2011 and $1.0 million in the fourth quarter of 2011.

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This article appears in: Investing ETFs
Referenced Stocks: ELD , EMCB

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