Wisdom Tree Investments, Inc. (WETF) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET

Company Participants

Jessica Zaloom - Head of Corporate Communications & Public Relations

Bryan Edmiston - CFO

Jarrett Lilien - President & COO

Jonathan Steinberg - Founder, CEO

Jeremy Campbell - Director of IR

William Peck - Head of Digital Assets

Conference Call Participants

Daniel Fannon - Jefferies

Brennan Hawken - UBS

Keith Housum - Northcoast Research Partners

Michael Cyprys - Morgan Stanley

Michael Brown - KBW

Operator

Thank you for standing by, and welcome to the WisdomTree Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakes' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

I would now like to introduce your host for today's program, Jessica Zaloom, Head of Corporate Communications and Public Relations. Please go ahead.

Jessica Zaloom

Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation and in the Risk Factors section of WisdomTree's annual report, on Form 10-K for the year ended December 31, 2021, as amended, and quarterly report on Form 10-Q for the quarter ended June 30, 2022. WisdomTree assumes no duty and does not undertake to update any forward-looking statements.

Now it's my pleasure to turn the call over to WisdomTree's CFO, Bryan Edmiston.

Bryan Edmiston

Thank you, Jessica, and welcome, everyone. I'll begin by reviewing the results of the third quarter, and we'll then turn the call over to Jarrett Lilien for additional updates on our business.

We've been operating against an incredibly challenging market backdrop with interest rate increases occurring at a pace not seen in decades to combat surging inflation and concerns over an imminent recession. Broad-based equity markets dropped into bear market territory during the quarter, contributing to a decline in our AUM from negative market movement. That said, our results have been remarkable considering the market conditions, as we have generated $1.7 billion of flows during the quarter and $8.7 billion year-to-date for October.

Fixed income has been the primary contributor of our success with our Floating Rate Treasury product, USFR, generating over $2.8 billion of flows during the quarter and almost $9.7 billion year-to-date. However, not to be overlooked is the 13% annualized organic growth of our U.S. Equity product suite, which brought in $1.2 billion during the quarter and $2.5 billion year-to-date.