WisdomTree, Inc. (NYSE:WT) Q3 2024 Results Conference Call October 25, 2024 11:00 AM ET

Company Participants

Jeremy Campbell - Head of Investor Relations
Bryan Edmiston - Chief Financial Officer
Jarrett Lilien - President & Chief Operating Officer
Jono Steinberg - Founder & Chief Executive Officer
Jeremy Schwartz - Global Chief Investment Officer
Will Peck - Head of Digital Assets

Conference Call Participants

Brennan Hawken - UBS
George Sutton - Craig-Hallum
Michael Cyprys - Morgan Stanley
Mike Grondahl - Northland Securities

Operator

Greetings, and welcome to the WisdomTree Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Jeremy Campbell, Head of Investor Relations. Thank you, Jeremy. You may begin.

Jeremy Campbell

Good morning.

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 12/31/2023. And in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements.

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

Bryan Edmiston

Thank you, Jeremy, and good morning, everyone.

I'll be covering our third quarter results along with commentary on our forward-looking guidance. Before turning the call over to Jarrett and Jono for additional updates on our business. We ended the quarter with record AUM of $112.6 billion. Notwithstanding, the $2.4 billion of outflows we observed during the third quarter.

The outflows were largely from our currency hedged Japan product DXJ, our floating rate treasury product USFR, and tactical commodity trading. While flows proved to be a headwind this quarter, favorable market conditions ultimately drove our AUM higher and to record levels.

We also remained very active on the capital management front. Over the last year and a half, we've delivered highly accretive transactions, including the retirement of our gold royalty obligation and the repurchase of preferred stocks in the World Gold Council, which was accomplished unfavorable terms.