WisdomTree Sends Letter to Stockholders Outlining Company’s Strong Performance, Recent Milestones and Strategy for Continued Growth
Files Definitive Proxy Statement for 2024 Annual Meeting of Stockholders
Strongly Urges Stockholders to Vote “FOR” All of its Highly Qualified Board Members on WHITE Proxy Card
Encourages Stockholders to Repudiate ETFS Capital’s Misguided and Disruptive Actions
It is Time to Send
At the 2024 Annual Meeting, WisdomTree’s Board of Directors strongly urges stockholders to vote “FOR” all nine highly qualified director nominees using the WHITE proxy card:
WisdomTree has filed its definitive proxy materials on Schedule 14A with the
Stockholders can find out more about the proxy vote at the 2024 Annual Meeting by visiting the WisdomTree investor relations website and navigating to the page entitled “2024 Annual Meeting”: https://ir.wisdomtree.com/2024-annual-meeting-proxy-vote.
The full text of the letter is below:
Fellow WisdomTree stockholders:
At the upcoming 2024 Annual Meeting of Stockholders (“2024 Annual Meeting”) of
We are proud of our track record and are well-positioned to continue our growth trajectory in 2024 and beyond. Importantly, in 2023 and 2024-to-date we have further advanced our strategic objectives with numerous achievements, and our recent results highlighted below demonstrate that our long-term growth strategy, led by WisdomTree’s Board and management team, is realizing the full potential of our business model.
Our diverse, independent and highly qualified Board has been substantially refreshed since 2021, and all committee chair positions have been rotated and are held by female directors who joined the Board during the past three years. Each director brings valuable perspectives and extensive experience critical to overseeing WisdomTree’s strategy and performance. To continue this momentum, it is important that stockholders vote “FOR” all nine of WisdomTree’s directors, each of whom has directly supported the Company’s significant growth.
STOCK PRICE INCREASE AND POSITIVE FINANCIAL RESULTS ARE EVIDENCE OF WISDOMTREE’S STEADFAST COMMITMENT TO GENERATING STOCKHOLDER VALUE
Sustainable organic growth, operational efficiency and disciplined capital management is our formula for revenue growth, margin expansion and accelerated EPS growth. We are succeeding and the facts speak for themselves:
-
Our stock price was up approximately 40% over the 12-month period ended
April 26, 2024 and more than 30% during Q1 2024, and inMarch 2024 surpassed its 5-year high; -
We have ranked among the top two of 13 companies comprised of WisdomTree and a peer group of
U.S. publicly-traded asset managers1 (the “Publicly-Traded Asset ManagerPeer Group” ) in Total Shareholder Return over the most recent 1-, 2- and 3-year time periods and among the top four in the most recent 4-year time period; -
Our market capitalization has increased by approximately
$200 million 2 since the 2023 annual meeting of stockholders, a direct indication that our strategy is delivering value creation for stockholders; - Five out of eight analysts covering WisdomTree now have implemented “BUY” ratings, with two analyst rating upgrades to “BUY” and one analyst initiating coverage with a “BUY” rating within the past six months;
-
Record assets under management (“AUM”) of
$107.2 billion as ofMarch 31, 2024 ; -
Over three consecutive calendar years of positive inflows with
$29.2 billion of cumulative inflows fromJanuary 1, 2021 throughMarch 31, 2024 , while our fee capture on flows during the past 15 months endedMarch 31, 2024 was 2x greater than FY 2022; -
Best-in-class organic flow growth rate in 2023 of 13%, as compared to our
Publicly-Traded Asset Manager Peer Group , with a long and sustainable runway ahead driven by a diverse product suite and nascent managed models franchise; - Revenue growth of 16% for FY 2023, as well as revenue growth of 18% for Q1 2024 as compared to Q1 2023;
-
Adjusted3 operating margin expansion of 540 basis points during FY 2023 and 820 basis points measured at
March 31, 2024 as compared to Q1 2023; and -
Adjusted organic4 operating margin expansion of 140 basis points during FY 2023 and 280 basis points measured at
March 31, 2024 as compared to Q1 2023.
WISDOMTREE IS REALIZING POTENTIAL ACROSS ITS DIGITAL ASSETS AND BLOCKCHAIN-ENABLED FINANCE PORTFOLIO
Our mission is to provide the best transparent product structures in the market. Today, we do this through ETPs, but we believe the future is through tokenized assets and blockchain-enabled finance, which are reshaping the future of our industry and creating new opportunities for growth and value creation.
As an early mover in the space, we launched a direct-to-consumer channel and our blockchain-native wallet, WisdomTree Prime™, which provides investors access to tokenized gold and
Earlier this year, we announced that WisdomTree was granted a charter from the
Recently, we also launched the WisdomTree Prime Visa Debit Card, a digital and physical card enabling users to spend outside the WisdomTree Prime app. We are enhancing WisdomTree Prime’s products and capabilities and have plans to enable peer-to-peer transfers and payments in the upcoming quarters.
GRAHAM TUCKWELL’S CLAIMS ARE FALSE AND MISLEADING – AND HIS TWO PREVIOUSLY NOMINATED DIRECTORS SUPPORT THE BOARD’S CURRENT STRATEGIC PLAN AND VISION
Dissident stockholder
Operating Margins
Our
We have significant operating leverage, and as our AUM continues to grow, our margins are expected to continue to expand. Our adjusted operating margins have expanded by 140 basis points organically during FY 2023 and by 280 basis points measured at
Market Share
Our digital assets efforts began in 2021, the first year we began recognizing the expense. At
In addition, WisdomTree analyzed its market share as compared to the entire
Mr. Tuckwell’s assertions are false and misleading. Building our digital assets business has not been at the expense of our traditional ETP business. Our results speak for themselves – we have grown revenues, we have grown market share, we have expanded our operating margins, and our stock has significantly outperformed the average of our
WISDOMTREE HAS MADE SIGNIFICANT ENHANCEMENTS TO ITS CORPORATE GOVERNANCE, INCLUDING ROTATING ALL COMMITTEE CHAIRS, AND HAS THE RIGHT BOARD IN PLACE TO OVERSEE THE COMPANY’S STRATEGY
Our unified Board is diverse, independent and highly qualified, and includes the right mix of perspectives, experiences and skillsets critical to overseeing WisdomTree’s strategy and performance. It also includes six new, independent voices with the right expertise to help the Company execute its strategy, three of whom chair our Audit, Compensation and Nominating and Governance Committees.
Given our current trajectory, the returns generated for stockholders and the progress demonstrated by our various value-creation initiatives, the Board does not believe that appointing an investment bank to review strategic alternatives as
We have the right Board, including two directors previously nominated by
VOTE “FOR” ALL OF OUR DIRECTORS ON THE WHITE PROXY CARD TO SHOW MR. TUCKWELL THAT YOU SUPPORT YOUR BOARD AND MANAGEMENT TEAM
Our Board and management team have made numerous enhancements to our business in recent years, and now we need your support to let us continue to successfully execute. WisdomTree’s future is bright, and with our strong momentum and track record of growing our business, we are immensely confident in the ability of our Board, CEO and management team to succeed.
Do not let
We are confident that we have the right vision, talent and leadership in place to continue to grow and succeed. It is time to send
Sincerely,
Independent Chair of the WisdomTree Board
YOUR VOTE IS IMPORTANT! PLEASE VOTE THE WHITE PROXY CARD TODAY “FOR” ALL WISDOMTREE NOMINEES!
Remember, you can vote your shares via the Internet. Please follow the easy
If you have any questions or need assistance in voting your shares on the WHITE proxy card, please contact our proxy solicitor:
Stockholders and All Others Call Toll Free: (877) 750-5836 Banks and Brokers Call: (212) 750-5833 |
Advisors
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.*
*The WisdomTree Prime digital wallet and digital asset services are made available through
WisdomTree currently has approximately
For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com.
Please visit us on X, formerly known as Twitter, at @WisdomTreeNews.
WisdomTree® is the marketing name for
1 |
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2 |
As of |
3 |
Excludes |
4 |
Organic margin expansion is exclusive of |
Cautionary Statement Regarding Forward-Looking Statements
Any statements contained in this letter that do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are identified by use of the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “should,” “views,” and similar expressions. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, the impact and contributions of the slate of director nominees WisdomTree has nominated, and WisdomTree’s ability to achieve its financial and business plans, goals and objectives and drive stockholder value, including with respect to its ability to successfully implement its strategy relating to WisdomTree Prime™, and other risk factors discussed from time to time in WisdomTree’s filings with the
Important Information Regarding the 2024 Annual Meeting and Where to Find It
The Company has filed with the
Certain Information Regarding Participants in the Solicitation
The Company, its directors and certain of its executive officers and employees may be deemed to be participants in connection with the solicitation of proxies from the Company’s stockholders in connection with the matters to be considered at the 2024 Annual Meeting. Information regarding the direct and indirect interests, by security holdings or otherwise, of the Company’s directors and executive officers in the Company is included in the Proxy Statement under the heading “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”, which was filed with the
Non-GAAP Financial Measurements
This letter discloses certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context of our GAAP results. The non-GAAP financial measurements contained in this press release include adjusted operating income and numbers derived therefrom. We disclose these non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance.
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED) |
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(in thousands) |
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(Unaudited) |
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Three Months Ended |
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Adjusted Operating Income and Adjusted Operating Income Margin: |
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Operating revenues |
$ |
96,838 |
|
$ |
90,844 |
|
$ |
90,423 |
|
$ |
85,724 |
|
$ |
82,044 |
|
|||||
Operating income |
$ |
27,950 |
|
$ |
26,035 |
|
$ |
26,705 |
|
$ |
18,181 |
|
$ |
16,571 |
|
|||||
Add back: Expenses incurred in response to an activist campaign |
|
695 |
|
|
— |
|
|
— |
|
|
4,913 |
|
|
967 |
|
|||||
Adjusted operating income |
$ |
28,645 |
|
$ |
26,035 |
|
$ |
26,705 |
|
$ |
23,094 |
|
$ |
17,838 |
|
|||||
Adjusted operating income margin |
|
29.6 |
% |
|
28.7 |
% |
|
29.5 |
% |
|
26.9 |
% |
|
21.4 |
% |
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20240427087883/en/
Investor Relations
+1.917.267.3859
Jeremy.campbell@wisdomtree.com
Media Relations
+1.917.267.3735
jzaloom@wisdomtree.com
H/Advisors Abernathy
tom.johnson@h-advisors.global / dana.gorman@h-advisors.global
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