Wisdom Tree Investments, Inc. (WETF) Q2 2022 Earnings Conference Call July 29, 2022 9:00 AM ET

Company Participants

Jessica Zaloom - Head, Corporate Communications & Public Relations

Bryan Edmiston - CFO

Robert Lilien - President & COO

Jonathan Steinberg - Founder, CEO & Director

Jeremy Campbell - Director, IR

William Peck - Head, Digital Assets

Jeremy Schwartz - Global CIO

Conference Call Participants

Ritwik Roy - Jefferies

Operator

Good day, and thank you for standing by. Welcome to the WisdomTree Q2 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Jessica Zaloom, Head of Corporate Communications.

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 the WisdomTree annual report on Form 10-K for the year ended December 31, 2021, as amended. WisdomTree assumes no duty and does not undertake to update any forward-looking statements.

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

Bryan Edmiston

Thank you, Jessica, and welcome, everyone. I'm going to start by reviewing the results of the second quarter, and we'll then turn the call over to Jarrett and Jono for additional updates on our business. .

We have been operating in a market environment with heightened volatility as broad-based equities declined about 15% this quarter. Despite the overall volatility, we achieved $4 billion of inflows this quarter our strongest flowing quarter since 2015, and our AUM is well positioned as over 2/3 of our offerings are tethered to current themes such as rising rates, inflation and value rotation. Accordingly, our AUM at June 30 was $74.3 billion, down only 6% during the quarter.

Negative market movement was partly offset by our inflows with our floating rate treasury product, USFR, performing as a safe haven in the way comprising rates as the FedEx detain runaway inflation.

Our growth story is a success. Our annualized organic growth rate is about 13%, and the story isn't only about USFR. We continue to demonstrate sustained momentum, having generated positive inflows for 7 consecutive quarters across many asset categories, including U.S. equities, emerging markets, international equities as well as fixed income. The breadth of our product line that has us well positioned to navigate the volatility we are seeing today.