Founder & CEO
Q1 2023: WisdomTree’s Momentum Accelerates in 2023
April 27, 2023
Accelerated momentum, strong flows and a spotlight on efficiency and execution were all key points of our Q1 2023 earnings call this morning. Similar to 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.
When I meet with investors, I’m often asked what has changed at WisdomTree over the years and I firmly believe that our Q1 results showcase how different – and better off – we are today.
In Q1, WisdomTree had $6.3 billion of net inflows, making the quarter both our 3rd best inflowing quarter in company history and our 10th consecutive quarter of net inflows. Our two best inflowing quarters were back in 2015 when two products made up roughly 90% of those record flows. Today, the top two inflowing products in Q1 only represented about 55% of total net flows; roughly half our 350 global products generated net inflows for the firm. On top of that, we have a growing managed models franchise that is available to 65,000 financial advisors nationwide, and our suite of products and solutions is more robust and resilient today than ever before.
This quarter, WisdomTree also achieved a new milestone – record-high AUM that eclipsed $90 billion for the first time in our company’s history. Our momentum is growing on both sides of the Atlantic with a robust U.S. franchise that’s generated net inflows in 32 of the prior 33 months and a European business that had its best quarter for both inflows and revenues since its acquisition in 2018. With a strong and truly global franchise, WisdomTree is better positioned today than at any other time in company history.
We are also on the precipice of launching our suite of digital asset products and solutions that will cement WisdomTree as a leader in blockchain-enabled finance. I’m pleased to report that our WisdomTree Prime™ mobile app is on track for release in app stores in Q2, where customers will be able to access our suite of 9 blockchain-enabled funds, our gold and dollar tokens and native crypto, like Bitcoin and Ether. What are we playing for? A recent research report from Citi suggests that tokenized digital securities alone could be a $5 trillion market by 2030, and I’m so proud that the WisdomTree team has developed market-leading capabilities ready to go live next quarter while others are just starting to get up to speed.
The initial launch of WisdomTree Prime is not the finish line, but rather the starting line. Throughout 2023, we will continually enhance the WisdomTree Prime platform with new products, solutions and features that further its appeal to various types of users, helping to grow the user base and deepen engagement with customers. The platform is iterative, not static – and the optionality for future growth is boundless.
All in all, WisdomTree is on the right track. I expect our net inflow momentum will continue, driven by a robust product lineup and strong growth in our models franchise. I’m excited for you all to experience our WisdomTree Prime platform this year and I look forward to sharing our ongoing success in the coming quarters.