WisdomTree Investments (WETF), the ETF firm behind the asset-gathering juggernaut DXJ, today posted a 56 percent jump in second-quarter net income, the result largely of stellar asset gathering that has nearly doubled its total assets under management in the year ended June 30.
"Our robust asset growth is translating into excellent financial results with record revenues and net income in the second quarter,” WisdomTree Chief Executive Officer Jonathan Steinberg said in a press release.
The New York-based company, the only pure-play publicly traded ETF company, earned $12.2 million, or 9 cents a diluted share, compared with $100,000 in the same year-earlier quarter.
Revenues jumped 83 percent to $37.3 million, driven by a near doubling of AUM to $29 billion at the end of the current-year second quarter, from $15 billion as of June 30, 2012, WisdomTree said today in the press release.
The company’s stock, which has more than doubled this year, climbed 2.23 percent today to $13.74 a share.
"With $5.0 billion in net inflows for the quarter and nearly $11 billion in the first half of 2013, we continued our positive momentum from the first quarter to achieve a strong second quarter with record market share gains,” Steinberg said, adding that his firm was the No. 3 asset gatherer among U.S. mutual fund and ETF complexes in the quarter.
The WisdomTree Japan Hedged Equity Fund (DXJ), the No. 1 U.S.-listed ETF so far this year in terms of asset gathering, pulled in $4.22 billion in the second quarter and $8.23 billion in the first half, according to IndexUniverse’s ETF Fund Flows tool. The ETF has benefited from so-called Abenomics, the nickname for Japan yen-weakening plans to boost growth.
As of yesterday’s close on Thursday, July 25, DXJ had $11.78 billion in assets, or more than a third of WisdomTree’s total assets under management of $31.44 billion, according to IndexUniverse’s latest daily “ETF League Table.”
“While we believe the ETF industry is still in its early innings of growth, WisdomTree is already proving the efficiency and scale of our business model:We achieved a 33 percent pre-tax margin on a base of $28.4 billion in average assets," Steinberg said.
WisdomTree is now the No. 5 U.S. ETF sponsor by assets.
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