WisdomTree Investments, Inc. (WETF) Q4 2020 Earnings Conference Call January 29, 2021 9:00 AM ET Company Participants Jessica Zaloom - Head of Corporate Communications Amit Muni - Chief Financial Officer Jarrett Lilien - President Jonathan Steinberg - Founder and Chief Executive Officer Jeremy Schwartz - Senior Key Executive Conference Call Participants Craig Siegenthaler - Credit Suisse James Steele - Jefferies Jeff Drezner - KBW Brennan Hawken - UBS Michael Cyprys - Morgan Stanley Ryan Bailey - Goldman S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to . Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-34 ...

WisdomTree Investments, Inc. (WETF) Q3 2020 Earnings Conference Call October 30, 2020 9:00 AM ET Company Participants Jason Weyeneth - Director of IR Amit Muni - EVP and CFO Jarrett Lilien - President and COO Jonathan Steinberg - Founder and CEO Jeremy Schwartz - EVP and Global Head, Research Conference Call Participants Craig Siegenthaler - Credit Suisse Brennan Hawken - UBS Jeff Drezner - KBW Michael Cyprys - Morgan Stanley Ryan Bailey - Goldman Sachs Keith Housum - Northcoast Research Shaun Calnan - Bank ...

Q3/20 Results October 30, 2020 Forward Looking Statements 2 This presentation contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual resu ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3487784 ...

WisdomTree Investments, Inc. (WETF) Q2 2020 Results Conference Call July 31, 2020 9:00 AM ET Company Participants Jason Weyeneth - Director of IR Amit Muni - EVP and CFO Jeremy Schwartz - EVP and Global Head, Research Jonathan Steinberg - Founder and CEO Jarrett Lilien - President and COO Conference Call Participants Craig Siegenthaler - Credit Suisse Michael Cyprys - Morgan Stanley Jeff Drezner - KBW Brennan Hawken - UBS Shaun Calnan - Bank of America Ryan Bailey - Goldman Sachs Keith Housum - Northcoast R ...

[PART I: FINANCIAL INFORMATION](index=5&type=section&id=PART%20I:%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) WisdomTree's Q1 2020 unaudited consolidated financial statements show an **$8.6 million net loss**, primarily due to a **$19.7 million impairment charge** and reduced total assets [Consolidated Balance Sheet Summary (in thousands)](index=5&type=section&id=Item%201.%20Financial%20Statements) | | March 31, 2020 (unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$887,105** | **$935,207** | | Cash and cash equivalents | $68,429 | $74,972 | | Goodwill | $85,856 | $85,856 | | Intangible assets | $601,247 | $603,294 | | **Total Liabilities** | **$429,767** | **$465,226** | | Debt | $171,548 | $175,956 | | Deferred consideration – gold payments | $175,300 | $173,024 | | **Total Stockholders' Equity** | **$324,769** | **$337,412** | [Consolidated Statements of Operations Summary (in thousands)](index=5&type=section&id=Item%201.%20Financial%20Statements) | | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Total revenues** | **$63,874** | **$65,485** | | Advisory fees | $62,950 | $64,840 | | **Total expenses** | **$48,240** | **$54,802** | | Operating income | $15,634 | $10,683 | | Impairments | $(19,672) | $(572) | | **Net (loss)/income** | **$(8,638)** | **$8,824** | | **(Loss)/earnings per share – diluted** | **$(0.06)** | **$0.05** | - Net cash used in operating activities was **$2.6 million**, a significant decrease from the **$7.9 million** provided by operating activities in the prior-year period, mainly due to a net loss and unfavorable working capital changes[24](index=24&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including the **$19.7 million AdvisorEngine impairment**, the **$175.3 million gold-linked deferred consideration**, and the **$174 million term loan** - On February 19, 2020, the Company sold its Canadian ETF business for initial cash of **CDN $3.7 million** (**USD $2.8 million**) and potential future payments of **CDN $2.0 to $8.0 million** based on AUM growth targets[26](index=26&type=chunk)[179](index=179&type=chunk)[201](index=201&type=chunk) - The company recognized a **$19.7 million** impairment charge to adjust the carrying value of its AdvisorEngine investment to its fair value of **$8.5 million** prior to its exit from the investment[95](index=95&type=chunk)[97](index=97&type=chunk) - Deferred consideration for the ETFS Acquisition, payable in gold, was valued at **$175.3 million**, resulting in a **$2.2 million** loss on revaluation due to rising forward-looking gold prices[109](index=109&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company has a **$174.0 million** term loan outstanding, maturing on April 11, 2021, and is actively exploring refinancing and extension alternatives[113](index=113&type=chunk)[121](index=121&type=chunk)[247](index=247&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **COVID-19's impact**, noting a **20.9% AUM decline** to **$50.3 billion**, a **2.5% revenue decrease**, and an **$8.6 million net loss** due to a **$19.7 million impairment** - The COVID-19 pandemic caused a **16%** decline in AUM in March alone, contributing to a total AUM decrease from **$63.6 billion** at year-end 2019 to **$50.3 billion** at March 31, 2020[189](index=189&type=chunk)[195](index=195&type=chunk) [Q1 2020 vs Q1 2019 Operating Results (in thousands)](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) | | Q1 2020 | Q1 2019 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$63,874** | **$65,485** | **(2.5%)** | | **Total Expenses** | **$48,240** | **$54,802** | **(12.0%)** | | Operating Income | $15,634 | $10,683 | 46.3% | | **Net (Loss)/Income** | **$(8,638)** | **$8,824** | **n/a** | - A non-cash impairment charge of **$19.7 million** was recognized on the company's investment in AdvisorEngine; adjusted net income was **$11.2 million**, or **$0.07** per diluted share, excluding this and other non-recurring items[208](index=208&type=chunk)[232](index=232&type=chunk)[240](index=240&type=chunk) - The company is managing costs in response to the market environment, with expected declines in variable expenses, incentive compensation, and discretionary spending on marketing and sales[193](index=193&type=chunk) [Assets Under Management](index=33&type=section&id=2.1_Assets_Under_Management) Global AUM declined **20.9%** to **$50.3 billion** in Q1 2020, primarily due to **market depreciation** and **net outflows**, also impacting the average advisory fee [Global ETP AUM Roll-Forward Q1 2020 (in millions)](index=33&type=section&id=2.1_Assets_Under_Management) | | Amount | | :--- | :--- | | Beginning of period assets | $63,615 | | Assets sold | ($778) | | Inflows/(outflows) | ($536) | | Market appreciation/(depreciation) | ($11,958) | | Fund closures | ($20) | | **End of period assets** | **$50,323** | - The average global ETP advisory fee decreased from **0.46%** in Q1 2019 to **0.43%** in Q1 2020, primarily due to AUM mix shift[209](index=209&type=chunk)[213](index=213&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=2.2_Liquidity_and_Capital_Resources) Available liquidity slightly increased to **$74.7 million**, while the company manages a **$174.0 million term loan** maturing in April 2021 and remains compliant with debt covenants [Available Liquidity (in thousands)](index=43&type=section&id=2.2_Liquidity_and_Capital_Resources) | | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total: Liquid assets | $122,282 | $135,992 | | Less: Total current liabilities | ($54,329) | ($79,041) | | Less: Regulatory capital requirement | ($10,398) | ($12,312) | | Plus: Revolving credit facility – available capacity | $17,128 | $27,908 | | **Total: Available liquidity** | **$74,683** | **$72,547** | - The company's credit facility matures in April 2021, and management is actively exploring refinancing and extension alternatives[251](index=251&type=chunk) - The company's ability to pay dividends above **$0.03/share** or repurchase stock is restricted by a Total Leverage Ratio covenant, requiring the ratio not to exceed **1.75 to 1.00** for such actions[254](index=254&type=chunk)[294](index=294&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include **securities price fluctuations**, **foreign currency exchange rates**, and **commodity price risk** (gold), with no current hedging strategies - The company's revenue is directly tied to its AUM, making it vulnerable to market risk from fluctuations in securities prices driven by market volatility, economic conditions, and investor sentiment[271](index=271&type=chunk)[272](index=272&type=chunk) - The company has commodity price risk exposure to gold, as advisory fees and a significant deferred consideration liability are payable in gold ounces, with no current hedging of this exposure[277](index=277&type=chunk)[278](index=278&type=chunk) - Exchange rate risk exists from translating the results of non-U.S. operations, mainly in the United Kingdom, from British pounds to the U.S. dollar reporting currency[275](index=275&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2020, with **no material changes** to internal controls - The CEO, CFO, and Chief Accounting Officer concluded that as of March 31, 2020, the company's disclosure controls and procedures were effective[279](index=279&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2020, that have materially affected, or are reasonably likely to materially affect, internal controls[280](index=280&type=chunk) [PART II: OTHER INFORMATION](index=48&type=section&id=PART%20II:%20OTHER%20INFORMATION) [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently party to any litigation expected to have a **material adverse impact** on its business or financial position - There are no material legal proceedings to report[282](index=282&type=chunk)[135](index=135&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) Key risks include **COVID-19's adverse impact** on AUM and liquidity, **operational challenges** from remote work, and **counterparty risk** for certain European products - The COVID-19 pandemic has led to a significant decline in AUM, adversely impacting revenues, and continued pressure could affect compliance with the credit facility's leverage test covenant[284](index=284&type=chunk)[285](index=285&type=chunk) - Operational challenges may arise from the company's and its key service providers' remote work arrangements, including potential disruptions to communication systems or workforce illness[286](index=286&type=chunk) - Certain European products face counterparty risk, such as oil products backed by uncollateralized futures swaps from a Shell affiliate, exposing investors to default risk[288](index=288&type=chunk)[292](index=292&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported **no unregistered equity sales** and repurchased **385,399 shares** for **$1.5 million** under its program, with **$81.9 million** remaining available [Issuer Purchases of Equity Securities (Q1 2020)](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) | Period | Total Shares Purchased | Average Price Paid Per Share | Dollar Value Remaining in Program (in thousands) | | :--- | :--- | :--- | :--- | | Jan 2020 | 378,408 | $3.86 | - | | Feb 2020 | 6,991 | $4.75 | - | | Mar 2020 | 0 | $0.00 | - | | **Total** | **385,399** | **$3.88** | **$81,894** | - The share repurchase program was extended for three years through April 27, 2022, with **$81.9 million** remaining available for future repurchases as of March 31, 2020[294](index=294&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including **corporate documents**, **agreements**, and **officer certifications**

Financial Performance - Operating revenues for the year ended December 31, 2019, were $268.4 million, a decrease of 2.1% from 2018 due to a 3 basis point decline in average global advisory fees and lower average AUM of U.S. listed products [40]. - Total operating expenses increased by 1.0% to $214.9 million, driven by expenses from the ETFS acquired business and higher compensation expenses [40]. - The company reported a net loss of $10.4 million for the year ended December 31, 2019, compared to a net income of $36.6 million in 2018, including impairment charges of $30.7 million [40]. Assets Under Management (AUM) - As of December 31, 2019, the aggregate AUM of ETPs globally was $6.2 trillion, with the company ranking as the fourteenth largest ETP sponsor based on AUM [42][43]. - Total AUM of Commodity & Currency products was $20.3 billion as of December 31, 2019 [65]. - Total AUM of U.S. Equity products was $17.9 billion as of December 31, 2019 [66]. - Total AUM of International Developed Market Equity products was $13.4 billion as of December 31, 2019 [67]. - Total AUM of Emerging Market Equity products was $6.5 billion as of December 31, 2019 [68]. - Total AUM of Fixed Income products was $3.9 billion as of December 31, 2019 [69]. - Total AUM of Leveraged & Inverse products was $1.1 billion as of December 31, 2019 [71]. - Total AUM of Alternative products was $0.4 billion as of December 31, 2019 [72]. Market Trends and Innovations - The shift to fee-based models among financial advisors is expected to benefit the ETF industry, as ETFs generally charge lower fees than mutual funds [50]. - The elimination of trading commissions for ETFs by major custodial platforms is anticipated to positively impact the ETF industry by reducing trading costs [51]. - The company aims to continue innovating in the ETF space, focusing on alternative strategies and digital assets to capture additional market share [50]. - The company has launched several industry firsts, including the first actively managed currency ETF and the first gold and oil ETPs via the acquisition of ETFS [56]. - The SEC approved Rule 6c-11 in September 2019, simplifying the rules governing ETFs [64]. - The company is focused on innovative product development, particularly through its Modern Alpha approach, which combines active and passive management to create cost-effective investment products [80]. - The company has a strategic focus on launching differentiated ETFs, aiming to introduce products that can be first to market or offer significant improvements over existing products [80]. Competitive Landscape - The ETF industry is highly competitive, with significant pressure from larger firms that can offer lower fees, with some funds being offered at fees of 20 bps or less, attracting approximately 76% of net flows globally over the last three years [84]. - Despite the fee pressure, the company believes its competitive product offerings and ability to generate strong after-fee performance will help maintain its market position [86]. - Fee reductions by competitors have been a trend, with some funds being offered at fees of 20 bps or less, attracting 76% of net flows globally over the last three years [132]. Regulatory Environment - The company is subject to extensive U.S. regulations, including the Investment Advisers Act and the Investment Company Act, which impose various compliance costs and operational requirements [89]. - The SEC's approval of Rule 6c-11 in 2019 simplifies the rules governing ETFs, allowing issuers to operate more efficiently without the need for exemptive relief [93]. - The company has expanded its international presence, with subsidiaries subject to regulatory systems comparable to those in the U.S., which may impact operations and compliance costs [92]. Risks and Challenges - WisdomTree's business is subject to risks from declining prices of securities and commodities, which can adversely affect AUM and revenues [118]. - The company does not hedge against fluctuations in the price of gold, which could impact revenues from ETPs backed by gold [124]. - The company relies on third-party distribution channels, and increased competition could impair its distribution capabilities and negatively affect AUM levels [135]. - Many WisdomTree ETPs have a limited track record, which could lead to poor investment performance and a decline in revenues [137]. - The uncertainty surrounding Brexit may negatively impact revenues and investor confidence, affecting AUM [145]. - Catastrophic events could disrupt business operations and adversely affect revenues and expenses [146]. - The company relies on State Street Bank and other third-party vendors for critical services, and their failure could harm operations [149][150]. - Risk management policies may not fully mitigate exposure to risks, including employee misconduct, potentially harming financial condition [160]. Financial Obligations and Capital Structure - The company has an outstanding term loan of $179.0 million and a $50.0 million revolving credit facility, with borrowings at a floating rate maturing on April 11, 2021 [166]. - The company’s credit agreement includes covenants that may limit business activities, including restrictions on incurring additional indebtedness [166]. - The company’s ability to pay dividends is subject to the discretion of its Board of Directors and may be limited by financial conditions and covenants [196]. Employee and Operational Insights - As of December 31, 2019, WisdomTree had 208 full-time employees, with 137 in the U.S. Business segment and 71 in the International Business segment [113]. - The company is dependent on retaining key personnel, with a competitive market for skilled employees potentially impacting operations and financial condition [164]. - The company's expenses are subject to fluctuations, which can materially affect operating results from quarter to quarter [165]. Intellectual Property and Reputation - The company has applied for an additional patent related to its index methodology, which may not be issued, impacting competitive advantage [177]. - Damage to the company's reputation could adversely affect its ability to maintain and grow assets under management (AUM) and attract employees [184]. - The advisory fees from WisdomTree ETFs are subject to review by Independent Trustees, who may determine that fees are too high, adversely affecting revenues [182].

Table of Contents Commission File Number 001-10932 Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to . WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-34 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3487784 ...