Founder & CEO
Q4 2022: A Very Strong 2022 Sets the Table for Ongoing Momentum into 2023
February 3, 2023
On our Q4 earnings call this morning, I was excited to share our strong results for 2022, a continuation of the momentum we’ve seen in our business that keeps us bullish on our outlook for 2023. As in prior quarters, I want to highlight our results and outlook in greater detail with you, our clients, our partners, our stockholders and our broader network.
In 2022, WisdomTree had its best year of net inflows since 2015 and exited the year with record AUM. This starkly contrasts with most of our public asset manager peers who struggled with both challenging markets and net outflows. Below are a few key highlights that demonstrate our successful 2022 and our momentum into 2023:
- WisdomTree achieved firm-wide organic flow growth of 16% in 2022, including net inflows in 7 of our 8 major product categories. And, year-to-date, WisdomTree has generated $1.7 billion of net inflows, a meaningful start to what we expect to be another fruitful year.
- Our product performance is outstanding over many time horizons, noting particular success in both the short- and long-run, with over 80% of our U.S. AUM beating peer averages on a trailing 1-year basis, while 90% of our U.S. AUM beats benchmarks on a trailing 15-year basis.
- Our managed models’ business continues to grow in size, scale and scope, through both large platform partners such as Merrill Lynch and Morgan Stanley as well as with RIAs and independent broker-dealers through our WisdomTree Portfolio and Growth Solutions business. We anticipate that models will be a meaningful driver of net inflows in 2023 and beyond.
- We continue to increase the efficiency and scalability of our platform, with our ETP business now delivering incremental margins greater than 50%, driving margin expansion over the long run as the market normalizes and AUM continues to grow.
- We are a first mover in digital assets and blockchain-enabled finance:
- We now have a broad investment suite of 10 blockchain-enabled funds spanning both fixed income and equity product classes that are effective with the SEC. In addition, we have minted a Gold and U.S. Dollar token and with a robust product development pipeline, there are more exciting updates to come.
- Our WisdomTree Prime™ mobile application is anticipated to be available in app stores during Q2, marking a significant “go live” event milestone.
- By the end of this year, WisdomTree Prime™ users should be able to set up holistic investment portfolios and spend those balances—for the first time seamlessly blending a user’s saving, investing and spending activities into one unique experience.
WisdomTree is on the right track with clear momentum and a tremendous opportunity ahead in ETPs, models, advisor solutions, digital assets and blockchain-enabled finance. I look forward to sharing our successes with you in future quarters.