ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) | |
rd Floor West |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading |
Name of each exchange | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
• | the ultimate duration of the COVID-19 pandemic and its short-term and long-term impact on our business and the global economy; |
• | anticipated trends, conditions and investor sentiment in the global markets and exchange-traded products, or ETPs; |
• | anticipated levels of inflows into and outflows out of our ETPs; |
• | our ability to deliver favorable rates of return to investors; |
• | competition in our business; |
• | whether we will experience future growth; |
• | our ability to develop new products and services; |
• | our ability to maintain current vendors or find new vendors to provide services to us at favorable costs; |
• | our ability to successfully implement our digital assets strategy, including WisdomTree Prime™, and achieve its objectives; |
• | our ability to successfully operate and expand our business in non-U.S. markets; and |
• | the effect of laws and regulations that apply to our business; and |
• | actions of activist stockholders. |
ITEM 1. |
BUSINESS |
• | Revenues |
• | Expenses |
• | Other Income/(Expenses) |
• | Net income/(loss) |
GLOBAL RANKING |
||||||
Rank |
ETP Sponsor |
AUM (in billions) |
||||
1 |
iShares | $ | 3,307 | |||
2 |
Vanguard | $ | 2,212 | |||
3 |
State Street | $ | 1,195 | |||
4 |
Invesco | $ | 479 | |||
5 |
Charles Schwab | $ | 272 | |||
6 |
Nomura | $ | 236 | |||
7 |
Xtrackers | $ | 199 | |||
8 |
First Trust | $ | 152 | |||
9 |
Lyxor | $ | 115 | |||
10 |
Nikko AM | $ | 111 | |||
11 |
Daiwa | $ | 106 | |||
12 |
UBS | $ | 102 | |||
13 |
Amundi | $ | 100 | |||
14 |
JPMorgan | $ | 80 | |||
15 |
WisdomTree |
$ |
77 |
|
• | Transparency |
• | Intraday trading, hedging strategies and complex orders |
• | Tax efficiency “in-kind” redemptions in which low-cost securities are transferred out of the ETF in exchange for fund shares in a non-taxable transaction. By using this process, ETFs can avoid the transaction fees and tax impact incurred by mutual funds that sell securities to generate cash to pay out redemptions. See “U.S. Regulation” for a discussion about draft tax legislation proposed in 2021 that would eliminate this chief tax advantage. |
• | Uniform pricing 12b-1 fees. In many cases, ETFs offer lower expense ratios than comparable mutual funds. |
• | Low-cost index investing. |
• | Improved access to specific asset classes |
• | Asset allocation |
• | Protective hedging |
• | Income generation |
• | Speculative investing |
• | Arbitrage |
• | Diversification |
• | Education and greater investor awareness |
• | Move to fee-based models“fee-based” approach, where an overall fee is charged based on the value of AUM. This fee-based approach lends itself to the advisor selecting lower-fee financial products, and in our opinion, better aligns advisers with the interests of their clients. Since ETFs generally charge lower fees than mutual funds, we believe this model shift will benefit the ETF industry. |
• | Innovative product offerings leveraged-and-inverse, |
• | Changing demographics fee-based models, and their ability to provide access to more diverse market sectors, improve multi-asset class allocation, and be used for different investment strategies, including income generation. Overall, we believe ETFs are well-suited to meet the needs of this large and important group of investors. In addition, since many younger investors and financial advisors have demonstrated a preference for the ETF structure over traditional product structures, we believe that wealth transfers from one generation to another will also have a positive effect on ETF industry growth. |
• | International markets. |
• | Well-positioned in large and growing markets . |
• | Strong, seasoned and creative management team |
• | Strong performance 4- or 5-star by Morningstar. |
• | Differentiated product set, powered by innovation and performance |
• | the first gold and oil ETPs via our acquisition of the European exchange-traded commodity, currency and leveraged-and-inverse |
• | the first ETF to add bitcoin futures exposure; |
• | the first emerging markets small-cap equity ETF; |
• | the first actively managed currency ETF; |
• | the first ETF to provide investors with access to the Additional Tier 1 Contingent Convertible, or CoCo, bond market; |
• | one of the first international local currency denominated fixed income ETFs; |
• | the first managed futures strategy ETF; |
• | the first currency hedged international equity ETFs in the U.S.; |
• | the first 90/60 balanced ETF; |
• | the first multifactor ETFs incorporating dynamic currency hedging as a factor; and |
• | the first smart beta corporate bond suite. |
• | Extensive marketing, research and sales efforts |
• | Efficient business model with lower risk profile |
• | Establish ourselves as a leader in digital assets. |
• | we are continuing to develop a new financial services mobile application, branded WisdomTree Prime ™ , which provides access to a digital wallet that is native to the blockchain aimed at providing customers and consumers with the ability to save, spend and invest in a variety of digital assets, including native crypto assets, tokenized versions of mainstream financial assets and blockchain enabled funds; |
• | we developed the RWM WisdomTree Crypto Index, which offers digital assets exposure to separately managed accounts through our collaboration with Ritholtz Wealth Management LLC, OnRamp Invest, LLC and Gemini Trust Company, LLC; |
• | we launched five crypto ETPs in Europe, including a bitcoin and ether ETP as well as three crypto asset basket ETPs; |
• | the WisdomTree Enhanced Commodity Strategy Fund (GCC) became the first U.S. listed ETF to add bitcoin futures exposure with inclusion of up to 5% bitcoin futures allocation, and the WisdomTree Managed Futures Fund (WTMF) subsequently added bitcoin futures exposure, also with inclusion of up to 5% bitcoin futures allocation; |
• | we launched the WisdomTree +Crypto Model Portfolios to serve as an educational resource for advisors through our collaboration with Onramp Invest and Gemini, as well as supported a new digital asset variable annuity product by Federal Life through the development of our +Crypto model portfolio; |
• | we completed investments in Securrency, Inc., a blockchain-based financial services infrastructure provider for regulated funds and tokenized assets, and Onramp Invest, a technology firm that provides access to digital assets for registered investment advisers; |
• | we filed registration statements with the SEC for the WisdomTree Bitcoin Trust, the WisdomTree Ethereum Trust and the WisdomTree Digital Short-Term Treasury Fund; |
• | we made various other digital asset and blockchain-related regulatory filings and have applications pending in the U.S. as we position ourselves to become a leader in asset tokenization and blockchain enabled funds, including through federal and state regulated entities; and |
• | we hired a dedicated team across the U.S., U.K, and Ireland focused exclusively on technology, compliance, legal, product, marketing, research and education related to digital assets, DeFi and blockchain technology. |
• | Launch innovative new ETPs that diversify our product offerings and revenues first-to-market |
• | target 20 to 30 new global product launches with a focus on core, crypto, tactical, thematic and ESG exposures; and |
• | to be a leader in the ESG space. Our ESG offerings include our ex-state-owned methodology which supports our conviction that government-owned companies, particularly in emerging markets, can often have a negative impact on long-term performance. We offer three distinct ex-state-owned approaches in emerging markets. We also offer broad-based U.S. equity strategies through three products that combine the potential performance benefits of our multifactor methodology with ESG attributes to meet investors’ evolving needs. Our AUM in these products totaled $5.0 billion at December 31, 2021, ranking us sixth in the U.S. by ESG assets under management. In 2021, we also launched our ESG model portfolios, our first models with explicit and specific ESG objectives split roughly between the demographic and social shift and environmental pressures families. |
• | Foster deeper relationships through technology-enabled and research-driven solutions . |
• | access to over 30 model portfolios, which are currently available on a number of platforms, including TD Ameritrade, Merrill Lynch, Morgan Stanley Envestnet, 55ip and others. Our model portfolios are a natural extension of our research capabilities and provide advisors access to an open-architecture approach, a tenured team and a firm dedicated to innovation and value creation. As part of this initiative, we launched two of our model portfolios in collaboration with Professor Jeremy Siegel; |
• | portfolio construction services such as our award-winning Digital Portfolio Developer, an enhanced portfolio construction tool that assists financial advisors in analyzing an existing investment portfolio by examining the data and providing alternative portfolio approaches to consider in seeking to improve outcomes based on different measures; |
• | wealth investment research and ETF education; and |
• | practice management resources, including access to thought leaders in behavioral finance, leadership, and transforming wealth management technology. |
• | Deepen relationships with distribution platforms . |
• | Leverage data intelligence to serve and expand investor base and improve sales and marketing effectiveness . |
• | Selectively pursue acquisitions or other strategic transactions. |
• | Targeted advertising. ETF-specific web sites, such as www.seekingalpha.com and www.etfdatabase.com using targeted dynamic and personalized ad messaging. We recently introduced Connected TV (CTV) advertising that leverages the same targeted segments of users who use CTV devices. In Europe, we filter the targeting of promotions by both region and language, focusing heavily on professional investors. |
• | Media relations. |
• | Database Messaging Strategy on-demand research presentations, ETP-specific or educational events and presentations and market commentary from our senior investment strategy adviser, Professor Jeremy Siegel. Additionally, in the U.S., we communicate to our retail database about new product launches and provide ETF education. |
• | Social media ™ . |
• | Sales support |
• | The Investment Advisers Act of 1940 (Investment Advisers Act) |
• | The Investment Company Act of 1940 (Investment Company Act) 6c-11, or the ETF Rule, including, among others, requirements relating to operations, fees charged, sales, accounting, recordkeeping, disclosure, transparency and governance. In addition, the SEC has recently finalized new rules and/or rule amendments related to valuation, fund of fund investing, derivatives and marketing/advertising, with compliance deadlines throughout 2022, and the SEC is expected to continue to propose, new and/or revised provisions under the Investment Company Act that will impact current and future ETF operations and/or investments. |
• | Broker-Dealer Regulations |
• | Internal Revenue Code in-kind without exposing long-term investors to capital gains on any individual security in the underlying ETF structure. We believe that ETFs are an important tool used by retail investors striving to build financial security, as well as younger investors who are participating in the financial markets for the first time. The ETF creation and redemption process ensures accurate index tracking for the benefit of all shareholders and it is the most cost-effective and tax-efficient way to achieve this, directly benefiting the end investor. We believe that ETFs have proven to be a successful investment structure that should be protected. If eliminated, ETFs would lose a valuable benefit associated with the structure; however, overall industry growth should not be materially affected due to the other inherent benefits of ETFs – transparency and liquidity. |
• | U.S. Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) |
• | Exchange Listing Requirements . |
• | FINRA Rules . so-called leveraged ETFs in the U.S., which may include within their holdings derivative instruments such as options, futures or swaps to obtain leveraged exposures, FINRA guidance, the recently issued derivatives rules by the SEC and/or other future rules or regulations may influence how member firms effect sales of certain WisdomTree U.S. listed ETFs, such as our currency ETFs, or how such ETFs operate, which also use some forms of derivatives, including forward currency contracts and swaps, our international hedged equity ETFs, which use currency forwards, and our rising rates bond ETFs and alternative strategy ETFs, which use futures or options. |
• | The Companies (Jersey) Law 1991 . |
• | The Foreign Account Tax Compliance Act, or FATCA non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments. The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets. ETCs benefit from the so called “listing exemption” and Jersey local authorities have determined that for companies which can benefit from such exemption the filing of a nil report is optional. |
• | The Common Reporting Standards, or CRS |
• | The Collective Investment Funds (Jersey) Law 1988 |
• | The Prospectus Regulation |
• | Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, known as the European Market Infrastructure Regulation (“EMIR”) over-the-counter, EU-based financial counterparties (defined as those authorized under MiFID, CRR, AIFMD, UCITS or insurance regulations) or those non-financial entities that have a rolling three-month notional exposure above a certain amount (between €1 and €3 billion, depending on asset class), which means that the ManJer Issuers are not directly subject to these obligations, but could indirectly be subject to them by virtue of their interaction with EU-based financial counterparties. In terms of reporting obligations, being non-EU entities, the ManJer Issuers are only indirectly subject to such obligations when they interact with their EU-based financial counter-parties. Each ManJer Issuer has adhered to the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by the International Swaps and Derivatives Association, Inc. |
• | Regulation (EU) No 596/2014 of the European Parliament and of the Council on market abuse (the “Regulation”) and Directive 2014/57/EU of the European Parliament and of the Council on criminal sanctions for market abuse (the “Directive” and, together with the Regulation, “MAD”) |
• | Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (“BMR”) non-EU entities and as a result, BMR application is very limited, although in some circumstances a few residual obligations could be deemed to be applicable because the ETCs are marketed across Europe. |
• | Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (“PRIIPS”) |
• | MIFID II |
• | Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012. (“SFTR”) re-hypothecation are transferred to an account in the name of the other counterparty. Since the ManJer Issuers are based in non-EU jurisdictions, obligations are only indirectly applicable to them, but a certain level of interaction with EU counterparties is required to comply with some of these requirements. |
• | The Control of Borrowing (Jersey) Order 1958 . |
• | The Companies (General Provisions) (Jersey) Order 2002 |
• | European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“UCITS Regulations”). |
• | Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (“Central Bank UCITS Regulations”). |
• | Central Bank Guidance. |
• | The Irish Collective Asset-Management Vehicle Act 2015 (“ICAV Act”). sub-funds means there cannot be, as a matter of Irish law, cross-contamination of liability between sub-funds. Therefore, the insolvency of one sub-fund cannot affect another sub-fund. |
• | EMIR inter alia sub-funds, which are subject to EMIR. WTI has adhered to the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by the International Swaps and Derivatives Association, Inc. The Central Bank has been designated as the competent authority for EMIR. |
• | BMR non-EU administrators of benchmarks are required to satisfy a number of requirements to enable the benchmarks they provide to be used in the EU. To ensure investor protection, the BMR provides equivalence, recognition and endorsement conditions under which third country benchmarks may be used by supervised entities in the EU. Since we control the provision of benchmarks, we are required to comply with applicable obligations within the timeframes set out under the BMR. |
• | The Companies Act |
• | The Prospectus Regulation |
• | EMIR |
• | BMR |
• | MAD |
• | continuing to retain, motivate and manage our existing employees and/or attract and integrate new employees; |
• | developing, implementing and improving our operational, financial, accounting, reporting and other internal systems and controls on a timely basis; and |
• | maintaining and developing our various support functions including human resources, information technology, legal and corporate communications. |
• | Products issued by the ManJer Issuers (except WisdomTree Issuer X Limited) are backed by physical metal and are subject to risks associated with the custody of metal, including the risk that access to the physically backed metal held in the vaults or secure warehouses of a custodian or sub-custodian could be restricted by natural events, such as an earthquake, or human actions, such as a terrorist attack, the risk that such physically backed metal in its custody could be lost, stolen or damaged, and the risk that our recovery of any losses from a custodian, sub-custodian or insurer may be inadequate. |
• | Products issued by WisdomTree Issuer X Limited are backed by digital currencies and are subject to risks associated with the custody of digital assets, including the risk that the digital currency itself or the relevant blockchain infrastructure could be threatened by hacks, other malicious actions, breakdown or disturbance of the infrastructure and loss of the digital keys. |
• | Products issued by WMAI, certain WisdomTree UCITS ETFs and certain products issued by the ManJer Issuers are backed by swap, derivative or similar arrangements are subject to risks associated with the creditworthiness of their counterparties, including the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the relevant arrangement (whether or not bona fide) or because of a credit, liquidity, regulatory, tax or operational problem. Any deterioration of the credit or downgrade in the credit rating of a counterparty, or the custodian holding the collateral, could cause the associated products to trade at a discount to the value of the underlying assets. |
• | pay third-party infringement claims; |
• | discontinue selling the particular funds subject to infringement claims; |
• | discontinue using the processes subject to infringement claims; |
• | develop other intellectual property or products not subject to infringement claims, which could be time-consuming and costly or may not be possible; or |
• | license the intellectual property from the third party claiming infringement, which license may not be available on commercially reasonable terms. |
• | responding to actions by activist stockholders are disruptive to our operations, are costly and time-consuming, and divert the attention of our board of directors and senior management from the pursuit of business strategies, which could adversely affect our results of operations and financial condition; |
• | perceived uncertainties about our future direction as a result of changes to the composition of our board of directors or changes to our stockholder base may lead to the perception of a change in the direction of the business, instability or lack of continuity which may be exploited by our competitors, may result in the loss of potential business opportunities and may make it more difficult to attract and retain qualified personnel and business partners; |
• | these types of actions could cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business; and |
• | if individuals are elected to our board of directors with a specific agenda, it may adversely affect our ability to effectively implement our business strategy and to create additional value for our stockholders. |
• | the ultimate duration of the COVID-19 pandemic and its short-term and long-term impact on our business and the global economy; |
• | actions of activist stockholders taken against us which could be disruptive and costly and may cause uncertainty about the strategic direction of our business; |
• | decreases in our AUM; |
• | variations in our quarterly operating results; |
• | differences between our actual financial operating results and those expected by investors and analysts; |
• | publication of research reports about us or the investment management industry; |
• | changes in expectations concerning our future financial performance and the future performance of the ETP industry and the asset management industry in general, including financial estimates and recommendations by securities analysts; |
• | our strategic moves and those of our competitors, such as acquisitions or consolidations; |
• | changes in the regulatory framework of the ETP industry and the asset management industry in general and regulatory action, including action by the SEC to lessen the regulatory requirements or shorten the process under the Investment Company Act to become an ETP sponsor; |
• | the level of demand for our stock, including the amount of short interest in our stock; |
• | changes in general economic or market conditions; and |
• | realization of any other of the risks described elsewhere in this section. |
• | a classified board of directors; |
• | limitations on the removal of directors; |
• | advance notice requirements for stockholder proposals and nominations; |
• | the inability of stockholders to act by written consent or to call special meetings; |
• | the ability of our board of directors to make, alter or repeal our by-laws; and |
• | the authority of our board of directors to issue preferred stock with such terms as our board of directors may determine. |
Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
|||||||||||||
Period |
(in thousands) |
|||||||||||||||
October 1, 2021 to October 31, 2021 |
— | $ | — | — | — | |||||||||||
November 1, 2021 to November 30, 2021 |
— | $ | — | — | — | |||||||||||
December 1, 2021 to December 31, 2021 |
— | $ | — | — | — | |||||||||||
|
|
|
|
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Total |
— | $ | — | — | $ | 17,685 | ||||||||||
|
|
|
|
|
|
• | We were named a 2021 Best Places to Work in Money Management by Pension & Investments 100-499 employees. We were also named Best WorkPlace for medium-sized companies in the U.K. for a second consecutive year. |
• | We won Best Mixed-Allocation ETF Issuer ($100M+) at the ETF Express US Awards 2021 and we collected three wins at the Mutual Fund Industry and ETF Awards 2021, including Newcomer Smart-beta ETF of the Year - WisdomTree Cybersecurity Fund (WCBR), Newcomer Thematic ETF of the Year - WisdomTree Cybersecurity Fund (WCBR) and Asset Manager Website of the Year. |
• | We cross-listed our European-domiciled WisdomTree Bitcoin ETP, or BTCW, in Germany, appointed Coinbase Custody as a custodian and received approval to passport BTCW in the European Union, allowing for a wider audience to access and invest in the product. |
• | We launched 9 new U.S. listed ETPs and 14 new European listed ETPs. |
• | We issued $150 million of convertible senior notes due 2026 and returned approximately $54.0 million to our stockholders through stock repurchases and our ongoing quarterly cash dividend. |
Commodity & Currency: | 37bps | Leveraged & Inverse: | 87bps | |||||||
International Developed Market Equity: | 51bps | Fixed Income: | 20bps | |||||||
U.S. Equity: | 32bps | Alternatives: | 58bps | |||||||
Emerging Market Equity: | 49bps | Cryptocurrency: | 96bps |
• | portfolio management of our ETPs (sub-advisory); |
• | fund accounting and administration; |
• | custodial and storage services; |
• | market making; |
• | transfer agency; |
• | accounting and tax services; |
• | printing and mailing of stockholder materials; |
• | index calculation; |
• | indicative values; |
• | distribution fees; |
• | legal and compliance services; |
• | exchange listing fees; |
• | trustee fees and expenses; |
• | preparation of regulatory reports and filings; |
• | insurance; |
• | certain local income taxes; and |
• | other administrative services. |
• | advertising and product promotion campaigns that are initiated to promote our existing and new ETPs as well as brand awareness; |
• | development and maintenance of our website; and |
• | creation and preparation of marketing materials. |
• | travel and entertainment or conference related expenses for our sales force; |
• | market data services for our research team; |
• | sales related software tools; |
• | voluntary payment of certain costs associated with the creation or redemption of ETF shares, as we may elect from time to time; and |
• | legal and other advisory fees associated with the development of new funds or business initiatives. |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
GLOBAL ETPs (in millions) |
||||||||||||
Beginning of period assets |
$ | 67,383 | $ | 63,532 | $ | 53,940 | ||||||
Assets acquired/(sold) |
— | (778 | ) | — | ||||||||
Inflows/(outflows) |
4,660 | (22 | ) | 591 | ||||||||
Market appreciation/(depreciation) |
5,454 | 5,013 | 9,272 | |||||||||
Fund closures |
(19 | ) | (362 | ) | (271 | ) | ||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 77,478 | $ | 67,383 | $ | 63,532 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 73,436 | $ | 60,266 | $ | 59,667 | ||||||
Average advisory fee during the period |
0.41 | % | 0.40 | % | 0.44 | % | ||||||
Number of ETPs – end of the period |
329 | 309 | 349 | |||||||||
U.S. LISTED ETFs (in millions) |
||||||||||||
Beginning of period assets |
$ | 38,517 | $ | 40,600 | $ | 35,486 | ||||||
Inflows/(outflows) |
4,950 | (1,253 | ) | (654 | ) | |||||||
Market appreciation/(depreciation) |
4,758 | (706 | ) | 5,858 | ||||||||
Fund closures |
(15 | ) | (124 | ) | (90 | ) | ||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 48,210 | $ | 38,517 | $ | 40,600 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 44,335 | $ | 34,133 | $ | 38,579 | ||||||
Number of ETPs—end of period |
75 | 67 | 80 | |||||||||
INTERNATIONAL LISTED ETPs (in millions) |
||||||||||||
Beginning of period assets |
$ | 28,866 | $ | 22,932 | $ | 18,454 | ||||||
Assets acquired/(sold) |
— | (778 | ) | — | ||||||||
Inflows/(outflows) |
(290 | ) | 1,231 | 1,245 | ||||||||
Market appreciation/(depreciation) |
696 | 5,719 | 3,414 | |||||||||
Fund closures |
(4 | ) | (238 | ) | (181 | ) | ||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 29,268 | $ | 28,866 | $ | 22,932 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 29,100 | $ | 26,133 | $ | 21,088 | ||||||
Number of ETPs—end of period |
254 | 242 | 269 | |||||||||
PRODUCT CATEGORIES (in millions) |
||||||||||||
Commodity & Currency |
||||||||||||
Beginning of period assets |
$ | 25,880 | $ | 20,073 | $ | 15,976 | ||||||
Inflows/(outflows) |
(1,478 | ) | 471 | 1,118 | ||||||||
Market appreciation/(depreciation) |
196 | 5,336 | 2,979 | |||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 24,598 | $ | 25,880 | $ | 20,073 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 25,028 | $ | 23,737 | $ | 18,214 | ||||||
U.S. Equity |
||||||||||||
Beginning of period assets |
$ | 18,367 | $ | 17,732 | $ | 13,211 | ||||||
Inflows/(outflows) |
1,542 | 765 | 1,446 | |||||||||
Market appreciation/(depreciation) |
3,951 | (130 | ) | 3,075 | ||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 23,860 | $ | 18,367 | $ | 17,732 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 21,265 | $ | 15,393 | $ | 15,847 | ||||||
International Developed Market Equity |
||||||||||||
Beginning of period assets |
$ | 9,406 | $ | 13,018 | $ | 14,231 | ||||||
Inflows/(outflows) |
1,260 | (2,843 | ) | (3,452 | ) | |||||||
Market appreciation/(depreciation) |
1,228 | (769 | ) | 2,239 | ||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 11,894 | $ | 9,406 | $ | 13,018 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 10,745 | $ | 9,500 | $ | 13,190 |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Emerging Market Equity |
||||||||||||
Beginning of period assets |
$ | 8,539 | $ | 6,400 | $ | 5,202 | ||||||
Inflows/(outflows) |
2,041 | 1,700 | 618 | |||||||||
Market appreciation/(depreciation) |
(205 | ) | 439 | 580 | ||||||||
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|
|||||||
End of period assets |
$ | 10,375 | $ | 8,539 | $ | 6,400 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 10,619 | $ | 6,054 | $ | 5,704 | ||||||
Fixed Income |
||||||||||||
Beginning of period assets |
$ | 3,308 | $ | 3,565 | $ | 2,230 | ||||||
Inflows/(outflows) |
1,131 | (281 | ) | 1,276 | ||||||||
Market appreciation/(depreciation) |
(83 | ) | 24 | 59 | ||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 4,356 | $ | 3,308 | $ | 3,565 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 3,548 | $ | 3,540 | $ | 3,555 | ||||||
Leveraged & Inverse |
||||||||||||
Beginning of period assets |
$ | 1,477 | $ | 1,133 | $ | 1,054 | ||||||
Inflows/(outflows) |
46 | 249 | (3 | ) | ||||||||
Market appreciation/(depreciation) |
254 | 95 | 82 | |||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 1,777 | $ | 1,477 | $ | 1,133 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 1,676 | $ | 1,302 | $ | 1,167 | ||||||
Cryptocurrency |
||||||||||||
Beginning of period assets |
$ | 167 | $ | 1 | $ | — | ||||||
Inflows/(outflows) |
84 | 76 | 1 | |||||||||
Market appreciation/(depreciation) |
106 | 90 | — | |||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 357 | $ | 167 | $ | 1 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 312 | $ | 30 | $ | 1 | ||||||
Alternatives |
||||||||||||
Beginning of period assets |
$ | 215 | $ | 358 | $ | 508 | ||||||
Inflows/(outflows) |
39 | (125 | ) | (162 | ) | |||||||
Market appreciation/(depreciation) |
7 | (18 | ) | 12 | ||||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | 261 | $ | 215 | $ | 358 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 224 | $ | 251 | $ | 440 | ||||||
Closed ETPs |
||||||||||||
Beginning of period assets |
$ | 24 | $ | 1,252 | $ | 1,528 | ||||||
Assets sold |
— | (778 | ) | — | ||||||||
Inflows/(outflows) |
(5 | ) | (34 | ) | (251 | ) | ||||||
Market appreciation/(depreciation) |
— | (54 | ) | 246 | ||||||||
Fund closures |
(19 | ) | (362 | ) | (271 | ) | ||||||
|
|
|
|
|
|
|||||||
End of period assets |
$ | — | $ | 24 | $ | 1,252 | ||||||
|
|
|
|
|
|
|||||||
Average assets during the period |
$ | 19 | $ | 459 | $ | 1,549 | ||||||
Headcount |
241 | 217 | 208 |
Year Ended December 31, |
Change |
Percent Change |
||||||||||||||
2021 |
2020 |
|||||||||||||||
AUM (in millions) |
||||||||||||||||
Average AUM |
$ | 73,436 | $ | 60,266 | $ | 13,170 | 21.9 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Operating Revenues (in thousands) |
||||||||||||||||
Advisory fees (1) |
$ | 298,052 | $ | 246,395 | $ | 51,657 | 21.0 | % | ||||||||
Other income |
6,266 | 3,517 | 2,749 | 78.2 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 304,318 | $ | 249,912 | $ | 54,406 | 21.8 | % | ||||||||
|
|
|
|
|
|
(1) | Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 to our Consolidated Financial Statements for additional information. |
( in thousands ) |
Year Ended December 31, |
Change |
Percent Change |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Compensation and benefits |
$ | 88,163 | $ | 74,675 | $ | 13,488 | 18.1 | % | ||||||||
Fund management and administration (1) |
58,912 | 56,728 | 2,184 | 3.8 | % | |||||||||||
Marketing and advertising |
14,090 | 11,128 | 2,962 | 26.6 | % | |||||||||||
Sales and business development |
9,907 | 10,579 | (672 | ) | (6.4 | %) | ||||||||||
Contractual gold payments |
17,096 | 16,811 | 285 | 1.7 | % | |||||||||||
Professional and consulting fees |
7,616 | 4,902 | 2,714 | 55.4 | % | |||||||||||
Occupancy, communications and equipment |
4,629 | 6,427 | (1,798 | ) | (28.0 | %) | ||||||||||
Depreciation and amortization |
738 | 1,021 | (283 | ) | (27.7 | %) | ||||||||||
Third-party distribution fees |
7,176 | 5,219 | 1,957 | 37.5 | % | |||||||||||
Acquisition and disposition-related costs |
— | 416 | (416 | ) | n/a | |||||||||||
Other |
6,933 | 6,924 | 9 | 0.1 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
$ | 215,260 | $ | 194,830 | $ | 20,430 | 10.5 | % | ||||||||
|
|
|
|
|
|
|
|
As a Percent of Revenues: |
Year Ended December 31, |
|||||||
2021 |
2020 |
|||||||
Compensation and benefits |
28.9 | % | 29.8 | % | ||||
Fund management and administration (1) |
19.4 | % | 22.7 | % | ||||
Marketing and advertising |
4.6 | % | 4.5 | % | ||||
Sales and business development |
3.3 | % | 4.2 | % | ||||
Contractual gold payments |
5.6 | % | 6.7 | % | ||||
Professional and consulting fees |
2.5 | % | 2.0 | % | ||||
Occupancy, communications and equipment |
1.5 | % | 2.6 | % | ||||
Depreciation and amortization |
0.2 | % | 0.4 | % | ||||
Third-party distribution fees |
2.4 | % | 2.1 | % | ||||
Acquisition and disposition-related costs |
n/a | 0.2 | % | |||||
Other |
2.3 | % | 2.8 | % | ||||
|
|
|
|
|||||
Total operating expenses |
70.7 | % | 78.0 | % | ||||
|
|
|
|
(1) | Fund management and administration expenses previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 to our Consolidated Financial Statements for additional information. |
Year Ended December 31, |
Change |
Percent Change |
||||||||||||||
( in thousands ) |
2021 |
2020 |
||||||||||||||
Interest expense |
$ | (12,332 | ) | $ | (9,668 | ) | $ | (2,664 | ) | 27.6 | % | |||||
Gain/(loss) on revaluation of deferred consideration |
2,018 | (56,821 | ) | 58,839 | n/a | |||||||||||
Interest income |
2,009 | 744 | 1,265 | 170.0 | % | |||||||||||
Impairments |
(16,156 | ) | (22,752 | ) | 6,596 | (29.0 | %) | |||||||||
Loss on extinguishment of debt |
— | (2,387 | ) | 2,387 | n/a | |||||||||||
Other losses and gains, net |
(7,926 | ) | 580 | (8,506 | ) | n/a | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expenses, net |
$ | (32,387 | ) | $ | (90,304 | ) | $ | 57,917 | (64.1 | %) | ||||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||
As a Percent of Revenues: |
2021 |
2020 |
||||||
Interest expense |
(4.1 | %) | (3.9 | %) | ||||
Gain/(loss) on revaluation of deferred consideration |
0.7 | % | (22.7 | %) | ||||
Interest income |
0.7 | % | 0.3 | % | ||||
Impairments |
(5.3 | %) | (9.1 | %) | ||||
Loss on extinguishment of debt |
— | (1.0 | %) | |||||
Other losses and gains, net |
(2.6 | %) | 0.2 | % | ||||
|
|
|
|
|||||
Total other expenses, net |
(10.6 | %) | (36.1 | %) | ||||
|
|
|
|
Year Ended December 31, |
Change |
Percent Change |
||||||||||||||
2020 |
2019 |
|||||||||||||||
AUM (in millions) |
||||||||||||||||
Average AUM |
$ | 60,266 | $ | 59,667 | $ | 599 | 1.0 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Operating Revenues (in thousands) |
||||||||||||||||
Advisory fees (1) |
$ | 246,395 | $ | 263,777 | $ | (17,382 | ) | (6.6 | %) | |||||||
Other income |
3,517 | 2,751 | 766 | 27.8 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 249,912 | $ | 266,528 | $ | (16,616 | ) | (6.2 | %) | |||||||
|
|
|
|
|
|
(1) | Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 to our Consolidated Financial Statements for additional information. |
(in thousands) |
Year Ended December 31, |
Change |
Percent Change |
|||||||||||||
2020 |
2019 |
|||||||||||||||
Compensation and benefits |
$ | 74,675 | $ | 80,761 | $ | (6,086 | ) | (7.5 | %) | |||||||
Fund management and administration (1) |
56,728 | 59,627 | (2,899 | ) | (4.9 | %) | ||||||||||
Marketing and advertising |
11,128 | 12,163 | (1,035 | ) | (8.5 | %) | ||||||||||
Sales and business development |
10,579 | 18,276 | (7,697 | ) | (42.1 | %) | ||||||||||
Contractual gold payments |
16,811 | 13,226 | 3,585 | 27.1 | % | |||||||||||
Professional and consulting fees |
4,902 | 5,641 | (739 | ) | (13.1 | %) | ||||||||||
Occupancy, communications and equipment |
6,427 | 6,302 | 125 | 2.0 | % | |||||||||||
Depreciation and amortization |
1,021 | 1,045 | (24 | ) | (2.3 | %) | ||||||||||
Third-party distribution fees |
5,219 | 6,968 | (1,749 | ) | (25.1 | %) | ||||||||||
Acquisition and disposition-related costs |
416 | 902 | (486 | ) | (53.9 | %) | ||||||||||
Other |
6,924 | 8,083 | (1,159 | ) | (14.3 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
$ | 194,830 | $ | 212,994 | $ | (18,164 | ) | (8.5 | %) | |||||||
|
|
|
|
|
|
|
|
As a Percent of Revenues: |
Year Ended December 31, |
|||||||
2020 |
2019 |
|||||||
Compensation and benefits |
29.8 | % | 30.2 | % | ||||
Fund management and administration (1) |
22.7 | % | 22.4 | % | ||||
Marketing and advertising |
4.5 | % | 4.6 | % | ||||
Sales and business development |
4.2 | % | 6.9 | % | ||||
Contractual gold payments |
6.7 | % | 5.0 | % | ||||
Professional and consulting fees |
2.0 | % | 2.1 | % | ||||
Occupancy, communications and equipment |
2.6 | % | 2.4 | % | ||||
Depreciation and amortization |
0.4 | % | 0.4 | % | ||||
Third-party distribution fees |
2.1 | % | 2.6 | % | ||||
Acquisition and disposition-related costs |
0.2 | % | 0.3 | % | ||||
Other |
2.8 | % | 3.0 | % | ||||
|
|
|
|
|||||
Total operating expenses |
78.0 | % | 79.9 | % | ||||
|
|
|
|
(1) | Fund management and administration expenses previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 to our Consolidated Financial Statements for additional information. |
Year Ended December 31, |
Change |
Percent Change |
||||||||||||||
(in thousands) |
2020 |
2019 |
||||||||||||||
Interest expense |
$ | (9,668 | ) | $ | (11,240 | ) | $ | 1,572 | (14.0 | %) | ||||||
Loss on revaluation of deferred consideration |
(56,821 | ) | (11,293 | ) | (45,528 | ) | 403.2 | % | ||||||||
Interest income |
744 | 3,332 | (2,588 | ) | (77.7 | %) | ||||||||||
Impairments |
(22,752 | ) | (30,710 | ) | 7,958 | (25.9 | %) | |||||||||
Loss on extinguishment of debt |
(2,387 | ) | — | (2,387 | ) | n/a | ||||||||||
Other gains and losses, net |
580 | (3,502 | ) | 4,082 | n/a | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expenses, net |
$ | (90,304 | ) | $ | (53,413 | ) | $ | (36,891 | ) | 69.1 | % | |||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||
As a Percent of Revenues: |
2020 |
2019 |
||||||
Interest expense |
(3.9 | %) | (4.2 | %) | ||||
Loss on revaluation of deferred consideration |
(22.6 | %) | (4.2 | %) | ||||
Interest income |
0.3 | % | 1.3 | % | ||||
Impairments |
(9.1 | %) | (11.6 | %) | ||||
Loss on extinguishment of debt |
(1.0 | %) | — | |||||
Other gains and losses, net |
0.2 | % | (1.3 | %) | ||||
|
|
|
|
|||||
Total other expenses, net |
(36.1 | %) | (20.0 | %) | ||||
|
|
|
|
(in thousands, except per share amounts) |
Q4/21 |
Q3/21 |
Q2/21 |
Q1/21 |
Q4/20 |
Q3/20 |
Q2/20 |
Q1/20 |
||||||||||||||||||||||||
Operating Revenues: |
||||||||||||||||||||||||||||||||
Advisory fees (1) |
$ | 77,441 | $ | 76,400 | $ | 74,169 | $ | 70,042 | $ | 64,697 | $ | 63,028 | $ | 56,394 | $ | 62,276 | ||||||||||||||||
Other income |
1,734 | 1,712 | 1,606 | 1,214 | 954 | 721 | 918 | 924 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
79,175 | 78,112 | 75,775 | 71,256 | 65,651 | 63,749 | 57,312 | 63,200 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
23,178 | 22,027 | 20,331 | 22,627 | 20,827 | 19,098 | 17,455 | 17,295 | ||||||||||||||||||||||||
Fund management and administration (1) |
15,417 | 15,181 | 14,367 | 13,947 | 14,942 | 14,328 | 13,647 | 13,810 | ||||||||||||||||||||||||
Marketing and advertising |
4,565 | 2,925 | 3,594 | 3,006 | 3,715 | 2,996 | 1,949 | 2,468 | ||||||||||||||||||||||||
Sales and business development |
2,668 | 2,935 | 2,159 | 2,145 | 2,595 | 2,386 | 2,181 | 3,417 | ||||||||||||||||||||||||
Contractual gold payments |
4,262 | 4,250 | 4,314 | 4,270 | 4,449 | 4,539 | 4,063 | 3,760 | ||||||||||||||||||||||||
Professional and consulting fees |
2,099 | 1,583 | 1,921 | 2,013 | 1,322 | 950 | 1,357 | 1,273 | ||||||||||||||||||||||||
Occupancy, communications and equipment |
725 | 1,163 | 1,266 | 1,475 | 1,622 | 1,611 | 1,643 | 1,551 | ||||||||||||||||||||||||
Depreciation and amortization |
45 | 185 | 256 | 252 | 261 | 253 | 251 | 256 | ||||||||||||||||||||||||
Third-party distribution fees |
1,830 | 1,873 | 2,130 | 1,343 | 1,291 | 1,233 | 1,340 | 1,355 | ||||||||||||||||||||||||
Acquisition and disposition-related costs |
— | — | — | — | — | — | 33 | 383 | ||||||||||||||||||||||||
Other |
1,823 | 1,787 | 1,752 | 1,571 | 1,720 | 1,611 | 1,596 | 1,997 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total operating expenses |
56,612 | 53,909 | 52,090 | 52,649 | 52,744 | 49,005 | 45,515 | 47,565 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income |
22,563 | 24,203 | 23,685 | 18,607 | 12,907 | 14,744 | 11,797 | 15,634 | ||||||||||||||||||||||||
Other Income/(Expenses): |
||||||||||||||||||||||||||||||||
Interest expense |
(3,740 | ) | (3,729 | ) | (2,567 | ) | (2,296 | ) | (2,694 | ) | (2,511 | ) | (2,044 | ) | (2,419 | ) | ||||||||||||||||
(Loss)/gain on revaluation of deferred consideration |
(3,048 | ) | 1,737 | 497 | 2,832 | (22,385 | ) | (8,870 | ) | (23,358 | ) | (2,208 | ) | |||||||||||||||||||
Interest income |
864 | 689 | 225 | 231 | 351 | 111 | 119 | 163 | ||||||||||||||||||||||||
Impairments |
— | (15,853 | ) | — | (303 | ) | — | (3,080 | ) | — | (19,672 | ) | ||||||||||||||||||||
Loss on extinguishment of debt |
— | — | — | — | — | — | (2,387 | ) | — | |||||||||||||||||||||||
Other losses and gains, net |
(1,368 | ) | (714 | ) | 49 | (5,893 | ) | 524 | 744 | 1,819 | (2,507 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income/(loss) before income taxes |
15,271 | 6,333 | 21,889 | 13,178 | (11,297 | ) | 1,138 | (14,054 | ) | (11,009 | ) | |||||||||||||||||||||
Income tax expense/(benefit) |
4,084 | 500 | 4,259 | (1,969 | ) | 2,200 | 1,408 | (804 | ) | (2,371 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income/(loss) |
$ | 11,187 | $ | 5,833 | $ | 17,630 | $ | 15,147 | ($ | 13,497 | ) | ($ | 270 | ) | ($ | 13,250 | ) | ($ | 8,638 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings/(loss) per share - basic |
$ | 0.07 | $ | 0.04 | $ | 0.11 | $ | 0.09 | ($0.10 | ) | ($0.01 | ) | ($0.09 | ) | ($0.06 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings/(loss) per share - diluted |
$ | 0.07 | $ | 0.04 | $ | 0.11 | $ | 0.09 | ($0.10 | ) | ($0.01 | ) | ($0.09 | ) | ($0.06 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Dividends per common share |
$ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Advisory fees and fund management and administration expenses previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 to our Consolidated Financial Statements for additional information. |
Q4/21 |
Q3/21 |
Q2/21 |
Q1/21 |
Q4/20 |
Q3/20 |
Q2/20 |
Q1/20 |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Percent of Revenues |
||||||||||||||||||||||||||||||||
Operating Revenues |
||||||||||||||||||||||||||||||||
Advisory fees |
97.8 | % | 97.8 | % | 97.9 | % | 98.3 | % | 98.5 | % | 98.9 | % | 98.4 | % | 98.5 | % | ||||||||||||||||
Other income |
2.2 | % | 2.2 | % | 2.1 | % | 1.7 | % | 1.5 | % | 1.1 | % | 1.6 | % | 1.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||||||
Compensation and benefits |
29.2 | % | 28.2 | % | 26.9 | % | 31.7 | % | 31.6 | % | 30.0 | % | 30.4 | % | 27.4 | % | ||||||||||||||||
Fund management and administration |
19.4 | % | 19.5 | % | 19.0 | % | 19.6 | % | 22.7 | % | 22.6 | % | 23.8 | % | 21.9 | % | ||||||||||||||||
Marketing and advertising |
5.8 | % | 3.7 | % | 4.7 | % | 4.2 | % | 5.7 | % | 4.7 | % | 3.4 | % | 3.9 | % | ||||||||||||||||
Sales and business development |
3.4 | % | 3.8 | % | 2.8 | % | 3.0 | % | 4.0 | % | 3.7 | % | 3.8 | % | 5.4 | % | ||||||||||||||||
Contractual gold payments |
5.4 | % | 5.4 | % | 5.7 | % | 6.0 | % | 6.8 | % | 7.1 | % | 7.1 | % | 5.9 | % | ||||||||||||||||
Professional and consulting fees |
2.7 | % | 2.0 | % | 2.5 | % | 2.8 | % | 2.0 | % | 1.5 | % | 2.4 | % | 2.0 | % | ||||||||||||||||
Occupancy, communications and equipment |
0.9 | % | 1.5 | % | 1.7 | % | 2.1 | % | 2.5 | % | 2.5 | % | 2.9 | % | 2.5 | % | ||||||||||||||||
Depreciation and amortization |
0.1 | % | 0.2 | % | 0.3 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | ||||||||||||||||
Third-party distribution fees |
2.3 | % | 2.4 | % | 2.8 | % | 1.9 | % | 2.0 | % | 1.9 | % | 2.3 | % | 2.1 | % | ||||||||||||||||
Acquisition and disposition-related costs |
n/a | n/a | n/a | n/a | n/a | n/a | 0.1 | % | 0.6 | % | ||||||||||||||||||||||
Other |
2.3 | % | 2.3 | % | 2.3 | % | 2.2 | % | 2.6 | % | 2.5 | % | 2.8 | % | 3.2 | % | ||||||||||||||||
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Total operating expenses |
71.5 | % | 69.0 | % | 68.7 | % | 73.9 | % | 80.3 | % | 76.9 | % | 79.4 | % | 75.3 | % | ||||||||||||||||
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Operating income |
28.5 | % | 31.0 | % | 31.3 | % | 26.1 | % | 19.7 | % | 23.1 | % | 20.6 | % | 24.7 | % | ||||||||||||||||
Other Income/(Expenses) |
||||||||||||||||||||||||||||||||
Interest expense |
(4.8 | %) | (4.8 | %) | (3.5 | %) | (3.2 | %) | (4.1 | %) | (3.9 | %) | (3.6 | %) | (3.8 | %) | ||||||||||||||||
(Loss)/gain on revaluation of deferred consideration |
(3.8 | %) | 2.2 | % | 0.7 | % | 4.0 | % | (34.1 | %) | (14.0 | %) | (40.7 | %) | (3.5 | %) | ||||||||||||||||
Interest income |
1.1 | % | 0.9 | % | 0.3 | % | 0.3 | % | 0.5 | % | 0.2 | % | 0.2 | % | 0.3 | % | ||||||||||||||||
Impairments |
n/a | (20.3 | %) | n/a | (0.4 | %) | n/a | (4.8 | %) | n/a | (31.1 | %) | ||||||||||||||||||||
Loss on extinguishment of debt |
n/a | n/a | n/a | n/a | n/a | n/a | (4.2 | %) | n/a | |||||||||||||||||||||||
Other losses and gains, net |
(1.7 | %) | (0.9 | %) | 0.1 | % | (8.3 | %) | 0.8 | % | 1.2 | % | 3.2 | % | (4.0 | %) | ||||||||||||||||
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Income/(loss) before income taxes |
19.3 | % | 8.1 | % | 28.9 | % | 18.5 | % | (17.2 | %) | 1.8 | % | (24.5 | %) | (17.4 | %) | ||||||||||||||||
Income tax expense/(benefit) |
5.2 | % | 0.6 | % | 5.6 | % | (2.8 | %) | 3.4 | % | 2.2 | % | (1.4 | %) | (3.7 | %) | ||||||||||||||||
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Net income/(loss) |
14.1 | % | 7.5 | % | 23.3 | 21.3 | % | (20.6 | %) | (0.4 | %) | (23.1 | %) | (13.7 | %) | |||||||||||||||||
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Q4/21 |
Q3/21 |
Q2/21 |
Q1/21 |
Q4/20 |
Q3/20 |
Q2/20 |
Q1/20 |
|||||||||||||||||||||||||
Operating Statistics |
||||||||||||||||||||||||||||||||
GLOBAL ETPs (in millions) |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 72,780 | $ | 73,941 | $ | 69,532 | $ | 67,383 | $ | 60,707 | $ | 57,616 | $ | 50,302 | $ | 63,532 | ||||||||||||||||
Assets sold |
— | — | — | — | — | — | — | (778 | ) | |||||||||||||||||||||||
Inflows/(outflows) |
1,902 | 548 | 931 | 1,279 | 881 | (485 | ) | 129 | (547 | ) | ||||||||||||||||||||||
Market appreciation/(depreciation) |
2,811 | (1,709 | ) | 3,482 | 870 | 5,795 | 3,622 | 7,481 | (11,885 | ) | ||||||||||||||||||||||
Fund closures |
(15 | ) | — | (4 | ) | — | — | (46 | ) | (296 | ) | (20 | ) | |||||||||||||||||||
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End of period assets |
$ | 77,478 | $ | 72,780 | $ | 73,941 | $ | 69,532 | $ | 67,383 | $ | 60,707 | $ | 57,616 | $ | 50,302 | ||||||||||||||||
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Average assets during the period |
$ | 75,990 | $ | 74,556 | $ | 73,621 | $ | 69,575 | $ | 64,053 | $ | 61,188 | $ | 55,705 | $ | 60,117 | ||||||||||||||||
Average advisory fee during the period |
0.40 | % | 0.41 | % | 0.40 | % | 0.41 | % | 0.40 | % | 0.41 | % | 0.41 | % | 0.42 | % | ||||||||||||||||
Number of ETPs – end of the period |
329 | 322 | 318 | 313 | 309 | 305 | 311 | 331 | ||||||||||||||||||||||||
U.S. LISTED ETFs (in millions) |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 44,742 | $ | 45,129 | $ | 42,163 | $ | 38,517 | $ | 33,310 | $ | 31,362 | $ | 28,920 | $ | 40,600 | ||||||||||||||||
Inflows/(outflows) |
1,865 | 612 | 1,130 | 1,343 | 919 | 575 | (1,474 | ) | (1,273 | ) | ||||||||||||||||||||||
Market appreciation/(depreciation) |
1,618 | (999 | ) | 1,836 | 2,303 | 4,288 | 1,373 | 4,030 | (10,397 | ) | ||||||||||||||||||||||
Fund closures |
(15 | ) | — | — | — | — | — | (114 | ) | (10 | ) | |||||||||||||||||||||
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End of period assets |
$ | 48,210 | $ | 44,742 | $ | 45,129 | $ | 42,163 | $ | 38,517 | $ | 33,310 | $ | 31,362 | $ | 28,920 | ||||||||||||||||
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Average assets during the period |
$ | 46,943 | $ | 45,509 | $ | 44,183 | $ | 40,706 | $ | 35,926 | $ | 33,003 | $ | 30,652 | $ | 36,950 | ||||||||||||||||
Number of ETFs – end of the period |
75 | 73 | 73 | 68 | 67 | 67 | 67 | 77 | ||||||||||||||||||||||||
INTERNATIONAL LISTED ETPs (in millions) |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 28,038 | $ | 28,812 | $ | 27,369 | $ | 28,866 | $ | 27,397 | $ | 26,254 | $ | 21,382 | $ | 22,932 | ||||||||||||||||
Assets sold |
— | — | — | — | — | — | — | (778 | ) | |||||||||||||||||||||||
Inflows/(outflows) |
37 | (64 | ) | (199 | ) | (64 | ) | (38 | ) | (1,060 | ) | 1,603 | 726 | |||||||||||||||||||
Market appreciation/(depreciation) |
1,193 | (710 | ) | 1,646 | (1,433 | ) | 1,507 | 2,249 | 3,451 | (1,488 | ) | |||||||||||||||||||||
Fund closures |
— | — | (4 | ) | — | — | (46 | ) | (182 | ) | (10 | ) | ||||||||||||||||||||
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End of period assets |
$ | 29,268 | $ | 28,038 | $ | 28,812 | $ | 27,369 | $ | 28,866 | $ | 27,397 | $ | 26,254 | $ | 21,382 | ||||||||||||||||
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Average assets during the period |
$ | 29,047 | $ | 29,047 | $ | 29,438 | $ | 28,869 | $ | 28,127 | $ | 28,185 | $ | 25,053 | $ | 23,167 | ||||||||||||||||
Number of ETPs – end of the period |
254 | 249 | 245 | 245 | 242 | 238 | 244 | 254 | ||||||||||||||||||||||||
PRODUCT CATEGORIES |
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Commodity & Currency |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 23,826 | $ | 24,772 | $ | 23,657 | $ | 25,880 | $ | 25,177 | $ | 24,246 | $ | 19,819 | $ | 20,073 | ||||||||||||||||
Inflows/(outflows) |
(251 | ) | (249 | ) | (318 | ) | (660 | ) | (296 | ) | (1,112 | ) | 1,302 | 577 | ||||||||||||||||||
Market appreciation/(depreciation) |
1,023 | (697 | ) | 1,433 | (1,563 | ) | 999 | 2,043 | 3,125 | (831 | ) | |||||||||||||||||||||
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End of period assets |
$ | 24,598 | $ | 23,826 | $ | 24,772 | $ | 23,657 | $ | 25,880 | $ | 25,177 | $ | 24,246 | $ | 19,819 | ||||||||||||||||
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Average assets during the period |
$ | 24,422 | $ | 24,853 | $ | 25,549 | $ | 25,289 | $ | 25,596 | $ | 25,938 | $ | 23,016 | $ | 20,399 | ||||||||||||||||
U.S. Equity |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 21,383 | $ | 21,285 | $ | 20,018 | $ | 18,367 | $ | 15,612 | $ | 13,997 | $ | 12,151 | $ | 17,732 | ||||||||||||||||
Inflows/(outflows) |
783 | 351 | 190 | 218 | 395 | 897 | (242 | ) | (285 | ) | ||||||||||||||||||||||
Market appreciation/(depreciation) |
1,694 | (253 | ) | 1,077 | 1,433 | 2,360 | 718 | 2,088 | (5,296 | ) | ||||||||||||||||||||||
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End of period assets |
$ | 23,860 | $ | 21,383 | $ | 21,285 | $ | 20,018 | $ | 18,367 | $ | 15,612 | $ | 13,997 | $ | 12,151 | ||||||||||||||||
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Average assets during the period |
$ | 22,963 | $ | 21,794 | $ | 20,982 | $ | 19,320 | $ | 17,070 | $ | 15,160 | $ | 13,325 | $ | 16,018 | ||||||||||||||||
International Developed Market Equity |
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Beginning of period assets |
$ | 11,178 | $ | 10,790 | $ | 9,988 | $ | 9,406 | $ | 8,618 | $ | 8,841 | $ | 8,663 | $ | 13,018 | ||||||||||||||||
Inflows/(outflows) |
440 | 404 | 399 | 17 | (191 | ) | (586 | ) | (965 | ) | (1,101 | ) | ||||||||||||||||||||
Market appreciation/(depreciation) |
276 | (16 | ) | 403 | 565 | 979 | 363 | 1,143 | (3,254 | ) | ||||||||||||||||||||||
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End of period assets |
$ | 11,894 | $ | 11,178 | $ | 10,790 | $ | 9,988 | $ | 9,406 | $ | 8,618 | $ | 8,841 | $ | 8,663 | ||||||||||||||||
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Average assets during the period |
$ | 11,523 | $ | 11,144 | $ | 10,524 | $ | 9,790 | $ | 8,927 | $ | 8,833 | $ | 8,784 | $ | 11,457 | ||||||||||||||||
Emerging Market Equity |
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Beginning of period assets |
$ | 10,666 | $ | 11,519 | $ | 10,477 | $ | 8,539 | $ | 5,979 | $ | 5,413 | $ | 4,600 | $ | 6,400 | ||||||||||||||||
Inflows/(outflows) |
(3 | ) | (149 | ) | 531 | 1,662 | 1,399 | 257 | (25 | ) | 69 | |||||||||||||||||||||
Market appreciation/(depreciation) |
(288 | ) | (704 | ) | 511 | 276 | 1,161 | 309 | 838 | (1,869 | ) | |||||||||||||||||||||
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End of period assets |
$ | 10,375 | $ | 10,666 | $ | 11,519 | $ | 10,477 | $ | 8,539 | $ | 5,979 | $ | 5,413 | $ | 4,600 | ||||||||||||||||
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Average assets during the period |
$ | 10,550 | $ | 11,038 | $ | 11,012 | $ | 9,875 | $ | 7,250 | $ | 5,917 | $ | 5,131 | $ | 5,919 |
Q4/21 |
Q3/21 |
Q2/21 |
Q1/21 |
Q4/20 |
Q3/20 |
Q2/20 |
Q1/20 |
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Fixed Income |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 3,529 | $ | 3,440 | $ | 3,245 | $ | 3,308 | $ | 3,605 | $ | 3,507 | $ | 3,505 | $ | 3,565 | ||||||||||||||||
Inflows/(outflows) |
838 | 115 | 168 | 10 | (320 | ) | 76 | (53 | ) | 16 | ||||||||||||||||||||||
Market appreciation/(depreciation) |
(11 | ) | (26 | ) | 27 | (73 | ) | 23 | 22 | 55 | (76 | ) | ||||||||||||||||||||
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End of period assets |
$ | 4,356 | $ | 3,529 | $ | 3,440 | $ | 3,245 | $ | 3,308 | $ | 3,605 | $ | 3,507 | $ | 3,505 | ||||||||||||||||
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Average assets during the period |
$ | 4,118 | $ | 3,502 | $ | 3,337 | $ | 3,236 | $ | 3,449 | $ | 3,581 | $ | 3,500 | $ | 3,630 | ||||||||||||||||
Leveraged & Inverse |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 1,666 | $ | 1,693 | $ | 1,521 | $ | 1,477 | $ | 1,423 | $ | 1,344 | $ | 890 | $ | 1,133 | ||||||||||||||||
Inflows/(outflows) |
11 | 42 | (2 | ) | (5 | ) | (125 | ) | (10 | ) | 302 | 82 | ||||||||||||||||||||
Market appreciation/(depreciation) |
100 | (69 | ) | 174 | 49 | 179 | 89 | 152 | (325 | ) | ||||||||||||||||||||||
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End of period assets |
$ | 1,777 | $ | 1,666 | $ | 1,693 | $ | 1,521 | $ | 1,477 | $ | 1,423 | $ | 1,344 | $ | 890 | ||||||||||||||||
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Average assets during the period |
$ | 1,764 | $ | 1,717 | $ | 1,666 | $ | 1,556 | $ | 1,429 | $ | 1,476 | $ | 1,161 | $ | 1,140 | ||||||||||||||||
Cryptocurrency |
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Beginning of period assets |
$ | 295 | $ | 229 | $ | 377 | $ | 167 | $ | 33 | $ | 15 | $ | 5 | $ | 1 | ||||||||||||||||
Inflows/(outflows) |
28 | 12 | 8 | 36 | 48 | 15 | 8 | 5 | ||||||||||||||||||||||||
Market appreciation/(depreciation) |
34 | 54 | (156 | ) | 174 | 86 | 3 | 2 | (1 | ) | ||||||||||||||||||||||
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End of period assets |
$ | 357 | $ | 295 | $ | 229 | $ | 377 | $ | 167 | $ | 33 | $ | 15 | $ | 5 | ||||||||||||||||
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Average assets during the period |
$ | 406 | $ | 277 | $ | 300 | $ | 264 | $ | 79 | $ | 27 | $ | 11 | $ | 2 | ||||||||||||||||
Alternatives |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 222 | $ | 198 | $ | 227 | $ | 215 | $ | 229 | $ | 225 | $ | 244 | $ | 358 | ||||||||||||||||
Inflows/(outflows) |
56 | 22 | (39 | ) | — | (26 | ) | (4 | ) | (29 | ) | (66 | ) | |||||||||||||||||||
Market appreciation/(depreciation) |
(17 | ) | 2 | 10 | 12 | 12 | 8 | 10 | (48 | ) | ||||||||||||||||||||||
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End of period assets |
$ | 261 | $ | 222 | $ | 198 | $ | 227 | $ | 215 | $ | 229 | $ | 225 | $ | 244 | ||||||||||||||||
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Average assets during the period |
$ | 229 | $ | 214 | $ | 231 | $ | 223 | $ | 224 | $ | 226 | $ | 226 | $ | 328 | ||||||||||||||||
Closed ETPs |
||||||||||||||||||||||||||||||||
Beginning of period assets |
$ | 15 | $ | 15 | $ | 22 | $ | 24 | $ | 31 | $ | 28 | $ | 425 | $ | 1,252 | ||||||||||||||||
Assets sold |
— | — | — | — | — | — | — | (778 | ) | |||||||||||||||||||||||
Inflows/(outflows) |
— | — | (6 | ) | 1 | (3 | ) | (18 | ) | (169 | ) | 156 | ||||||||||||||||||||
Market appreciation/(depreciation) |
— | — | 3 | (3 | ) | (4 | ) | 67 | 68 | (185 | ) | |||||||||||||||||||||
Fund closures |
(15 | ) | — | (4 | ) | — | — | (46 | ) | (296 | ) | (20 | ) | |||||||||||||||||||
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End of period assets |
$ | — | $ | 15 | $ | 15 | $ | 22 | $ | 24 | $ | 31 | $ | 28 | $ | 425 | ||||||||||||||||
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Average assets during the period |
$ | 15 | $ | 17 | $ | 20 | $ | 22 | $ | 29 | $ | 30 | $ | 551 | $ | 1,224 | ||||||||||||||||
Headcount |
241 | 235 | 227 | 227 | 217 | 211 | 214 | 210 |
• | Adjusted net income and diluted earnings per share. 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 measures provides investors with a consistent way to analyze our performance. These non-GAAP financial measures exclude the following: |
• | Unrealized gains or losses on the revaluation of deferred consideration |
a material impact on the carrying value of the deferred consideration and our reported financial results. We exclude this item when arriving at adjusted net income and diluted earnings per share as it is not core to our operating business. The item is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary of ours that is based in Jersey, a jurisdiction where we are subject to a zero percent tax rate. |
• | Gains or losses on securities owned non-GAAP financial measurements as these securities have become a more meaningful percentage of total assets and the gains and losses introduce volatility in earnings and are not core to our operating business. |
• | Tax shortfalls and windfalls upon vesting and exercise of stock-based compensation awards |
• | Other items 2020-06, Debt – Debt with Conversion and Other Options, Cash Conversion) non-GAAP financial measurements. |
Years Ended |
||||||||||||
Dec. 31, |
Dec. 31, |
Dec. 31, |
||||||||||
Adjusted Net Income and Diluted Earnings per Share : |
2021 |
2020 |
2019 |
|||||||||
Net income/(loss), as reported |
$ | 49,797 | $ | (35,655 | ) | $ | (10,425 | ) | ||||
(Deduct)/add back: (Gain)/loss on revaluation of deferred consideration |
(2,018 | ) | 56,821 | 11,293 | ||||||||
Add back: Impairments, net of income taxes |
12,247 | 21,998 | 30,710 | |||||||||
Deduct: Gain recognized from the sale of Canadian ETF business, including remeasurement of contingent consideration |
(787 | ) | (2,877 | ) | — | |||||||
Add back: Unrealized loss on securities owned, at fair value, net of income taxes |
2,507 | — | — | |||||||||
Deduct: Unrealized gain recognized on investment in Securrency, net of income taxes |
(284 | ) | — | — | ||||||||
Add back/(deduct): Tax (windfalls)/shortfalls upon vesting and exercise of stock-based compensation awards |
(110 | ) | 691 | 1,219 | ||||||||
Deduct: Release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from debt previously outstanding in the U.K. |
— | (2,615 | ) | — | ||||||||
Add back: Loss on extinguishment of debt, net of income taxes |
— | 1,910 | ||||||||||
Deduct: Gain arising from an adjustment to the estimated fair value of consideration received from the exit of investment in AdvisorEngine |
— | (1,093 | ) | — | ||||||||
Add back: Interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the Convertible Notes, net of income taxes |
— | 642 | — | |||||||||
Add back: Acquisition and disposition-related costs, net of income taxes |
— | 383 | 787 | |||||||||
Add back: Severance expense, net of income taxes |
— | — | 2,715 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted net income |
$ | 61,352 | $ | 40,205 | $ | 36,299 | ||||||
Deduct: Income distributed to participating securities |
(2,168 | ) | (2,216 | ) | (2,163 | ) | ||||||
Deduct: Undistributed income allocable to participating securities |
(4,630 | ) | (2,214 | ) | (1,679 | ) | ||||||
|
|
|
|
|
|
|||||||
Adjusted net income available to common stockholders |
$ | 54,554 | $ | 35,775 | $ | 32,457 | ||||||
Weighted average diluted shares, excluding participating securities (See Note 21 to our Consolidated Financial Statements) |
145,055 | 148,688 | 151,975 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted earnings per share - diluted |
$ | 0.38 | $ | 0.24 | $ | 0.21 | ||||||
|
|
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Balance Sheet Data (in thousands) : |
||||||||
Cash and cash equivalents |
$ | 140,709 | $ | 73,425 | ||||
Securities owned, at fair value |
127,166 | 34,895 | ||||||
Accounts receivable |
31,864 | 29,455 | ||||||
Securities held-to-maturity |
308 | 451 | ||||||
|
|
|
|
|||||
Total: Liquid assets |
300,047 | 138,226 | ||||||
Less: Total current liabilities |
(83,667 | ) | (73,999 | ) | ||||
Less: Regulatory capital requirement – certain international subsidiaries |
(12,320 | ) | (10,745 | ) | ||||
|
|
|
|
|||||
Total: Available liquidity |
$ | 204,060 | $ | 53,482 | ||||
|
|
|
|
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash Flow Data (in thousands) : |
||||||||||||
Operating cash flows |
$ | 75,318 | $ | 47,136 | $ | 57,488 | ||||||
Investing cash flows |
(99,632 | ) | 10,641 | (17,661 | ) | |||||||
Financing cash flows |
92,553 | (60,179 | ) | (43,566 | ) | |||||||
Foreign exchange rate effect |
(955 | ) | 855 | 927 | ||||||||
|
|
|
|
|
|
|||||||
Increase/(decrease) in cash and cash equivalents |
$ | 67,284 | $ | (1,547 | ) | $ | (2,812 | ) | ||||
|
|
|
|
|
|
2021 Notes |
2020 Notes | |||
Maturity date (unless earlier converted, repurchased or redeemed) |
June 15, 2026 |
June 15, 2023 | ||
Interest rate |
3.25% |
4.25% | ||
Conversion price |
$11.04 |
$5.92 | ||
Conversion rate |
90.5797 |
168.9189 | ||
Redemption price |
$14.35 |
$7.70 |
• |
Interest rate |
• |
Conversion price |
• |
Conversion |
• |
Cash settlement of principal amount |
• |
Redemption price th scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. No sinking fund is provided for the Convertible Notes. |
• |
Limited investor put rights |
• |
Conversion rate increase in certain customary circumstances |
• |
Seniority and Security Non-Voting Convertible Preferred Stock (See Note 12 to our Consolidated Financial Statements). |
1. | Consolidated Financial Statements page F-1. |
2. | Financial Statement Schedules |
Consolidated Financial Statements |
||||
F-2 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-9 |
||||
F-10 |
||||
F-12 |
Description of the Matter |
At December 31, 2021, the Company recorded a current deferred consideration liability of $16,739,000 and a long-term deferred consideration liability of $211,323,000 and for the year ended December 31, 2021, the Company recorded a gain on the revaluation of deferred consideration of $2,018,000. As more fully described in Notes 2, 5 and 10 to the consolidated financial statements, deferred consideration represents an obligation of the Company for fixed payments of physical gold bullion to a third party into perpetuity that is carried at fair value. The Company values deferred consideration using a discounted cash flow model and the significant unobservable inputs used are the discount rate, the perpetual growth rate and the extrapolated forward-looking gold prices. |
Auditing the Company’s valuation of deferred consideration was complex due to the significant estimation required in determining the fair value of the current and long-term liability. In particular, the fair value estimate was sensitive to the significant unobservable inputs described above which are affected by future economic and market conditions and thus require significant judgment. | ||
How we addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s deferred consideration fair value process. This included controls over management’s review of the significant unobservable inputs described above and the completeness and accuracy of the inputs to the valuation model. | |
To test the estimated fair value of the deferred consideration liability, our audit procedures included, among others, reading the terms of the gold royalty agreement to make gold payments, evaluating the Company’s selection of its fair value methodology, testing the significant unobservable inputs used in the model, evaluating the clerical accuracy of the valuation model and testing the completeness and accuracy of the underlying data used by the Company to determine fair value. For example, we agreed underlying data used in management’s valuation model to source documents and/or publicly available data, such as the gold royalty agreement and third-party gold price projections. In addition, we involved our valuation specialists to assist in our evaluation of the Company’s valuation model, the discount rate, the perpetual growth rate and forward looking gold prices used by the Company, to calculate an independent estimate of the fair value of the Company’s deferred consideration liability which we compared to the Company’s fair value estimate and to assist in performing a sensitivity analysis of the significant unobservable inputs to evaluate the change in the fair value estimate that would result from changes in these inputs. | ||
ETFS Indefinite-Lived Intangible Assets – Assessment of Carrying Value | ||
Description of the Matter |
At December 31, 2021, the Company held indefinite-lived intangible assets related to the right to manage assets under management through customary advisory agreements, which have no expiration date, in connection with the ETFS acquisition, with an aggregate carrying value of $601,247,000. As described in Notes 2 and 24 to the consolidated financial statements, these assets were assessed for impairment based upon a quantitative test. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. The Company determined the fair value of its ETFS intangible assets using an income approach (discounted cash flow analysis) with significant unobservable inputs that included the weighted average cost of capital and projected revenue growth rates. | |
Auditing the Company’s quantitative impairment assessment for its ETFS indefinite-lived intangible assets was complex due to the significant unobservable inputs required in determining fair value. In particular, the fair value estimate of the ETFS indefinite-lived intangible assets was sensitive to the significant unobservable inputs described above which are affected by future economic and market conditions and thus require significant judgment. | ||
How we addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s indefinite-lived intangible asset impairment assessment process. This included controls around management’s review of the significant unobservable inputs described above and the completeness and accuracy of the inputs to the valuation model. |
To test the Company’s quantitative impairment assessment of ETFS indefinite-lived intangible assets, our audit procedures included, among others, evaluating the Company’s selection of its fair value methodology, testing the significant unobservable inputs used in the valuation model, evaluating the clerical accuracy of the valuation model and testing the completeness and accuracy of the underlying data used by the Company to determine fair value. For example, we agreed certain inputs used to calculate the weighted average cost of capital to market data. We compared the projected revenue growth rates to the Company’s historical results and to those of other guideline public companies in the same industry. In addition, we assessed the accuracy of the Company’s historical projections by comparing them to actual operating results. We involved our valuation specialists to assist in our evaluation of the Company’s valuation model, the weighted average cost of capital used by the Company and the comparability of the guideline public companies selected by the Company and to calculate an independent estimate of the indefinite-lived intangible assets which we compared to the Company’s fair value estimate. |
/s/ |
December 31, 2021 |
December 31, 2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Securities owned, at fair value (including $ December 31, |
||||||||
Accounts receivable (including $ |
||||||||
Prepaid expenses |
||||||||
Other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Fixed assets, net |
||||||||
Indemnification receivable (Note 22) |
||||||||
Securities held-to-maturity |
||||||||
Deferred tax assets, net |
||||||||
Investments (Note 8) |
||||||||
Right of use assets—operating leases (Note 14) |
||||||||
Goodwill (Note 24) |
||||||||
Intangible assets (Note 24) |
||||||||
Other noncurrent assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Liabilities |
||||||||
Current liabilities: |
||||||||
Fund management and administration payable |
$ | $ | ||||||
Compensation and benefits payable |
||||||||
Deferred consideration—gold payments (Note 10) |
||||||||
Operating lease liabilities (Note 14) |
||||||||
Income taxes payable |
||||||||
Accounts payable and other liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Convertible notes (Note 12) |
||||||||
Deferred consideration—gold payments (Note 10) |
||||||||
Operating lease liabilities (Note 14) |
||||||||
Other noncurrent liabilities (Note 22) |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
Preferred stock — Series A Non-Voting Convertible, par value $ |
||||||||
|
|
|
|
|||||
Contingencies (Note ) |
||||||||
Stockholders’ equity |
||||||||
Preferred stock, par value $ |
||||||||
Common stock, par value $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Operating Revenues: |
||||||||||||
Advisory fees |
$ | $ | $ | |||||||||
Other income |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenues |
||||||||||||
|
|
|
|
|
|
|||||||
Operating Expenses: |
||||||||||||
Compensation and benefits |
||||||||||||
Fund management and administration |
||||||||||||
Marketing and advertising |
||||||||||||
Sales and business development |
||||||||||||
Contractual gold payments (Note 10) |
||||||||||||
Professional and consulting fees |
||||||||||||
Occupancy, communications and equipment |
||||||||||||
Depreciation and amortization |
||||||||||||
Third-party distribution fees |
||||||||||||
Acquisition and disposition-related costs |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Operating income |
||||||||||||
Other Income/(Expenses): |
||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ||||||
Gain/(loss) on revaluation of deferred consideration—gold payments (Note 10) |
( |
) | ( |
) | ||||||||
Interest income |
||||||||||||
Impairments (Note 25) |
( |
) | ( |
) | ( |
) | ||||||
Loss on extinguishment of debt (Note 11) |
( |
) | — | |||||||||
Other losses and gains, net |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Income/(loss) before income taxes |
( |
) | ||||||||||
Income tax expense |
||||||||||||
|
|
|
|
|
|
|||||||
Net income/(loss) |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
|||||||
Earnings/(loss) per share—basic |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
|||||||
Earnings/(loss) per share—diluted |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
|||||||
Weighted-average common shares—basic |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted-average common shares—diluted |
||||||||||||
|
|
|
|
|
|
|||||||
Cash dividends declared per common share |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Net income/(loss) |
$ | $ | ( |
) | $ | ( |
) | |||||
Other comprehensive (loss)/income |
||||||||||||
Reclassification of foreign currency translation adjustment to other losses and gains, net, upon the sale of WisdomTree Asset Management Canada, Inc. (“WTAMC” or “Canadian ETF business”) |
( |
) | — | |||||||||
Reclassification of foreign currency translation adjustment to other losses and gains, net, upon the liquidation of WisdomTree Japan Inc. (Note 3) |
— | ( |
) | |||||||||
Foreign currency translation adjustment, net of income taxes |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Other comprehensive (loss)/income |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Comprehensive income/(loss) |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
Common Stock |
Additional Paid-In Capital |
Accumulated Other |
Accumulated Deficit |
Total |
||||||||||||||||||||
Shares Issued |
Par Value |
Comprehensive Income/(Loss) |
||||||||||||||||||||||
Balance—January 1, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
( |
) | — | — | — | |||||||||||||||||||
Shares repurchased |
( |
) | ( |
) | ( |
) | — | — | ( |
) | ||||||||||||||
Exercise of stock options, net |
— | — | — | |||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
Dividends |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance—December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
( |
) | — | — | — | |||||||||||||||||||
Shares repurchased |
( |
) | ( |
) | ( |
) | — | — | ( |
) | ||||||||||||||
Exercise of stock options, net |
— | — | ||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Allocation of equity component related to convertible notes, net of issuance costs of $ |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
Dividends |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance—December 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Reclassification of equity component related to convertible notes, net of deferred taxes of $Standards Update 2020-06 (Note 12) |
— |
( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance—January 1, 2021 (as adjusted) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net |
( |
) | ||||||||||||||||||||||
Shares repurchased |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Exercise of stock options, net |
||||||||||||||||||||||||
Stock-based compensation |
— |
|||||||||||||||||||||||
Other comprehensive loss |
— |
( |
) | ( |
) | |||||||||||||||||||
Dividends |
— |
( |
) | ( |
) | |||||||||||||||||||
Net income |
— |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance—December 31, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net income/(loss) |
$ | $ | ( |
) | $ | ( |
) | |||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
||||||||||||
Advisory fees received in gold and other precious metals |
( |
) | ( |
) | ( |
) | ||||||
Contractual gold payments |
||||||||||||
Impairments |
||||||||||||
Stock-based compensation |
||||||||||||
Unrealized losses |
— | — | ||||||||||
Amortization of issuance costs—convertible notes |
— | |||||||||||
(Gain)/loss on revaluation of deferred consideration—gold payments |
( |
) | ||||||||||
Amortization of right of use asset |
||||||||||||
Gain on sale—Canadian ETF business |
( |
) | ( |
) | — | |||||||
Depreciation and amortization |
||||||||||||
Deferred income taxes |
( |
) | ( |
) | ||||||||
Loss on extinguishment of debt |
— | |||||||||||
Amortization of issuance costs—former credit facility |
||||||||||||
Paid-in-kind |
— | ( |
) | |||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
Changes in operating assets and liabilities: |
||||||||||||
Securities owned, at fair value |
( |
) | ( |
) | ||||||||
Accounts receivable |
( |
) | ( |
) | ( |
) | ||||||
Prepaid expenses |
( |
) | ( |
) | ||||||||
Gold and other precious metals |
||||||||||||
Other assets |
( |
) | ||||||||||
Fund management and administration payable |
( |
) | ( |
) | ||||||||
Compensation and benefits payable |
( |
) | ||||||||||
Income taxes payable |
( |
) | ||||||||||
Securities sold, but not yet purchased, at fair value |
( |
) | ( |
) | ||||||||
Operating lease liabilities |
( |
) | ( |
) | ( |
) | ||||||
Accounts payable and other liabilities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
||||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchase of securities owned, at fair value |
( |
) | ( |
) | ( |
) | ||||||
Purchase of investments |
( |
) | — | ( |
) | |||||||
Purchase of fixed assets |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from the sale of securities owned, at fair value |
||||||||||||
Proceeds from the sale of Canadian ETF business, net, including receipt of contingent consideration |
— | |||||||||||
Proceeds from held-to-maturity |
||||||||||||
Proceeds from the sale of the Company’s financial interests in AdvisorEngine Inc. |
— | |||||||||||
Funding of notes receivable |
— | ( |
) | |||||||||
|
|
|
|
|
|
|||||||
Net cash (used in)/provided by investing activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Shares repurchased |
( |
) | ( |
) | ( |
) | ||||||
Dividends paid |
( |
) | ( |
) | ( |
) | ||||||
Convertible notes issuance costs |
( |
) | ( |
) | — | |||||||
Repayment of debt |
( |
) | ( |
) | ||||||||
Proceeds from the issuance of convertible notes (Note 12) |
— | |||||||||||
Proceeds from exercise of stock options |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by/(used in) financing activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
(Decrease)/Increase in cash flow due to changes in foreign exchange rate |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net increase/(decrease) in cash and cash equivalents |
( |
) | ( |
) | ||||||||
Cash and cash equivalents—beginning of year |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents—end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
Supplemental disclosure of cash flow information: |
||||||||||||
Cash paid for taxes |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Cash paid for interest |
$ | $ | $ | |||||||||
|
|
|
|
|
|
• |
WisdomTree Asset Management, Inc. non-consolidated Delaware statutory trust registered with the SEC as an open-end management investment company. The Company has licensed to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. |
• |
WisdomTree Management Jersey Limited leveraged-and-inverse |
• |
WisdomTree Multi Asset Management Limited non-consolidated public limited company domiciled in Ireland. |
• |
WisdomTree Management Limited non-consolidated public limited company domiciled in Ireland. |
• |
WisdomTree UK Limited |
• |
WisdomTree Europe Limited |
• |
WisdomTree Ireland Limited |
• |
WisdomTree Digital Commodity Services, LLC |
• |
WisdomTree Digital Management, Inc. |
• |
WisdomTree Securities, Inc. |
Year Ended December 31, 2020 |
Year Ended December 31, 2019 |
|||||||
Operating Revenues: |
|
|
|
|
|
|
|
|
Advisory fees (previously reported) |
$ | $ | ||||||
Amounts collected on behalf of third parties |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Advisory fees (as corrected) |
$ | $ | ||||||
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
Total revenues (previously reported) |
$ | $ | ||||||
Amounts collected on behalf of third parties |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total revenues (as corrected) |
$ | $ | ||||||
|
|
|
|
|||||
Operating Expenses: |
||||||||
Fund management and administration (previously reported) |
$ | $ | ||||||
Amounts collected on behalf of third parties |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Fund management and administration (as corrected) |
$ | $ | ||||||
|
|
|
|
|||||
Total operating expenses (previously reported) |
$ | $ | ||||||
Amounts collected on behalf of third parties |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total operating expenses (as corrected) |
$ | $ | ||||||
|
|
|
|
Year Ended December 31, 2020 |
Year Ended December 31, 2019 |
|||||||
Consolidated Statements of Cash Flows: |
||||||||
Cash Flows from Operating Activities |
||||||||
Net cash provided by operating activities (previously reported) |
$ | $ | ||||||
Reclassification of net cash flows from securities purchases and sales |
||||||||
|
|
|
|
|||||
Net cash provided by operating activities (currently reported) |
$ | $ | ||||||
|
|
|
|
|||||
Cash Flows from Investing Activities |
||||||||
Net cash provided by/(used in) investing activities (previously reported) |
$ | $ | ( |
) | ||||
Purchases of securities owned, at fair value |
( |
) | ( |
) | ||||
Proceeds from the sale of securities owned, at fair value |
||||||||
|
|
|
|
|||||
Net cash provided by/(used in) investing activities (currently reported) |
$ | $ | ( |
) | ||||
|
|
|
|
Equipment |
||||
Furniture and fixtures |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
WTAMC |
$ | $ | $ | |||||||||
WisdomTree Japan Inc. (“WTJ”) (1) |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
(1) | WTJ also recognized an impairment expense of $ |
Level 1 – |
Quoted prices for identical instruments in active markets. | |||
Level 2 – |
Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||
Level 3 – |
Instruments whose significant drivers are unobservable. |
December 31, 2021 |
||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Cash equivalents |
$ | $ | $ | $ | ||||||||||||
Securities owned, at fair value |
||||||||||||||||
ETFs |
||||||||||||||||
Pass-through GSEs |
||||||||||||||||
Corporate bonds |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Non-recurring fair value measurements: |
||||||||||||||||
Securrency, Inc. – Series A convertible preferred stock (1) |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Deferred consideration (Note 10) |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
(1) | Fair value of $ 8 ). |
December 31, 2020 |
||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Cash equivalents |
$ | $ | $ | — | $ | — | ||||||||||
Securities owned, at fair value |
||||||||||||||||
ETFs |
— | — | ||||||||||||||
Pass-through GSEs |
— | — | ||||||||||||||
Corporate bonds |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | — | |||||||||||
Non-recurring fair value measurements: |
||||||||||||||||
AdvisorEngine Inc. (“AdvisorEngine”) – Financial interests (1) |
$ | — | $ | — | $ | — | $ | — | ||||||||
Thesys Group, Inc. (“Thesys”) – Series Y Preferred Stock (1) |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | — | $ | — | $ | — | $ | — | ||||||||
Liabilities: |
||||||||||||||||
Recurring fair value measurements: |
||||||||||||||||
Deferred consideration (Note 10) |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-recurring fair value measurements: |
||||||||||||||||
Convertible notes (2) |
$ | $ | — | $ | $ | — | ||||||||||
|
|
|
|
|
|
|
|
(1) | The fair value of the AdvisorEngine financial interests of $ |
(2) | Fair value of $ issued on June 16, 2020 and August 13, 2020, respectively (Note 12). |
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Deferred consideration (Note 10) |
||||||||
Beginning balance |
$ | $ | ||||||
Net realized losses (1) |
||||||||
Net unrealized (gains)/losses (2) |
( |
) | ||||||
Settlements |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Ending balance |
$ | $ | ||||||
|
|
|
|
(1) | Recorded as contractual gold payments expense on the Company’s Consolidated Statements of Operations. |
(2) | Recorded as gain/(loss) on revaluation of deferred consideration – gold payments on the Company’s Consolidated Statements of Operations. |
December 31, 2021 |
December 31, 2020 |
|||||||
Securities Owned |
||||||||
Trading securities |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Debt instruments: Pass-through GSEs (amortized cost) |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2021 |
2020 |
|||||||
Cost/amortized cost |
$ | $ | ||||||
Gross unrealized gains |
||||||||
Gross unrealized losses |
( |
) | ||||||
|
|
|
|
|||||
Fair value |
$ | $ | ||||||
|
|
|
|
December 31, |
||||||||
2021 |
2020 |
|||||||
Due within one year |
$ | $ | — | |||||
Due one year through five years |
— | |||||||
Due five years through ten years |
— | |||||||
Due over ten years |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||||||||||
Carrying Value |
Cost |
Carrying Value |
Cost |
|||||||||||||
Securrency, Inc. – Series A convertible preferred stock |
$ | $ | $ | $ | ||||||||||||
Securrency, Inc. – Series B convertible preferred stock |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal – Securrency, Inc. |
$ | $ | $ | $ | ||||||||||||
Onramp Invest, LLC – Simple Agreement for Future Equity |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
Inputs |
||||||||
June 9, 2021 |
March 8, 2021 |
|||||||
Expected volatility |
% | % | ||||||
Time to exit (in years) |
December 31, |
||||||||
2021 |
2020 |
|||||||
Equipment |
$ | $ | ||||||
Furniture and fixtures |
||||||||
Leasehold improvements |
||||||||
Less: accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Forward-looking gold price (low) – per ounce |
$ | $ | ||||||
Forward-looking gold price (high) – per ounce |
$ | $ | ||||||
Forward-looking gold price (weighted average) – per ounce |
$ | $ | ||||||
Discount rate |
% | % | ||||||
Perpetual growth rate |
% | % |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Contractual gold payments |
$ | $ | $ | |||||||||
Contractual gold payments – gold ounces paid |
||||||||||||
Gain/(loss) on revaluation of deferred consideration – gold payments (1) |
$ | $ | ( |
) | $ | ( |
) |
(1) | Gains on revaluation of deferred consideration – gold payments result from a decrease in spot gold prices, a decrease in the forward-looking price of gold, a decrease in the perpetual growth rate and an increase in the discount rate used to compute the present value of the annual payment obligations. Losses on revaluation of deferred consideration – gold payments result from an increase in spot gold prices, an increase in the forward-looking price of gold, an increase in the perpetual growth rate and a decrease in the discount rate used to compute the present value of the annual payment obligations. |
2021 Notes |
2020 Notes | |||
Maturity date (unless earlier converted, repurchased or redeemed) |
||||
Interest rate |
||||
Conversion price |
$ |
$ | ||
Conversion rate |
||||
Redemption price |
$ |
$ |
• | Interest rate |
• | Conversion price |
• | Conversion 130 % of the conversion price on each applicable trading day; (ii) during the period after any period (the “measurement period”) in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than |
• | Cash settlement of principal amount |
• | Redemption price: th scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least |
• | Limited investor put rights |
• | Conversion rate increase in certain customary circumstances |
• | Seniority and Security Non-Voting Convertible Preferred Stock (Note 13). |
December 31, 2021 |
December 31, 2020 |
|||||||||||||||
2021 Notes |
2020 Notes |
Total |
||||||||||||||
Principal amount |
$ | $ | $ | $ | ||||||||||||
Plus: Premium |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross proceeds |
||||||||||||||||
Less: Unamortized discount (1) |
( |
) | ||||||||||||||
Less: Unamortized issuance costs (1) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Carrying amount |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effective interest rate (2) |
% | % | % | % | ||||||||||||
|
|
|
|
|
|
|
|
(1) | Unamortized discount was reduced by $ 2020-06 on January 1, 2021. The discount previously arose from the bifurcation of the conversion option which occurred prior to the adoption of ASU 2020-06. The unamortized issuance costs are reported net of the unamortized premium. |
(2) | Includes amortization of the issuance costs and premium. The effective interest rate prior to January 1, 2021 also included amortization of the discount arising from the bifurcation of the conversion option. |
December 31, 2021 |
December 31, 2020 |
|||||||
Issuance of Preferred Shares |
$ | $ | ||||||
Less: Issuance costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Preferred Shares – carrying value |
$ | $ | ||||||
Cash dividends declared per share |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
Years Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Lease cost: |
||||||||
Operating lease cost |
$ | $ | ||||||
Short-term lease cost |
||||||||
|
|
|
|
|||||
Total lease cost |
$ | $ | ||||||
|
|
|
|
|||||
Other information: |
||||||||
Cash paid for amounts included in the measurement of operating liabilities (operating leases) |
$ | $ | ||||||
|
|
|
|
|||||
Right-of-use |
n/a | n/a | ||||||
|
|
|
|
|||||
Weighted-average remaining lease term (in years) – operating leases |
||||||||
|
|
|
|
|||||
Weighted-average discount rate – operating leases |
% | % | ||||||
|
|
|
|
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
|
|
|||
Total future minimum lease payments (undiscounted) |
$ | |||
|
|
Amounts recognized in the Company’s Consolidated Balance Sheets |
||||
Lease liability – short term |
$ | |||
Lease liability – long term |
||||
|
|
|||
Subtotal |
||||
Difference between undiscounted and discounted cash flows |
||||
|
|
|||
Total future minimum lease payments (undiscounted) |
$ | |||
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Carrying Amount – Assets (Securrency) |
||||||||
Preferred stock – Series A Shares |
$ | $ | ||||||
Preferred stock – Series B Shares |
— | |||||||
|
|
|
|
|||||
Subtotal – Securrency |
$ | $ | ||||||
Carrying Amount – Assets (Onramp) |
||||||||
SAFE |
— | |||||||
|
|
|
|
|||||
Total (Note 8) |
$ | $ | ||||||
|
|
|
|
|||||
Maximum exposure to loss |
$ | $ | ||||||
|
|
|
|
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Revenues from contracts with customers: |
||||||||||||
Advisory fees (1) |
$ | $ | $ | |||||||||
Other |
||||||||||||
Total operating revenues |
$ | $ | $ | |||||||||
(1) | Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 for additional information. |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Revenues from contracts with customers: |
||||||||||||
United States |
$ | $ | $ | |||||||||
Jersey (1) |
||||||||||||
Ireland |
||||||||||||
Canada (Note 3) |
||||||||||||
Total operating revenues |
$ | $ | $ | |||||||||
(1) | Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 for additional information. |
December 31, |
||||||||
2021 |
2020 |
|||||||
Receivable from WTT |
$ | $ | ||||||
Receivable from ManJer Issuers |
||||||||
Receivable from WMAI and WTI |
||||||||
Receivable from WTCS |
||||||||
Total |
$ | $ | ||||||
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Advisory services provided to WTT |
$ | $ | $ | |||||||||
Advisory services provided to ManJer Issuers (1) |
||||||||||||
Advisory services provided to WMAI and WTI |
||||||||||||
Advisory services provided to WTCS |
||||||||||||
Advisory services provided to WTAMC |
||||||||||||
Total |
$ | $ | $ | |||||||||
(1) | Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 for additional information. |
Stock options: |
Generally issued for terms of | |
RSAs/RSUs: |
Awards are valued based on the Company’s stock price on grant date and generally vest ratably over three years. | |
PRSUs: |
These awards cliff vest three years from the grant date and contain a market condition whereby the number of PRSUs ultimately vesting is tied to how the Company’s total shareholder return (“TSR”) compares to a peer group of other publicly traded asset managers over the three-year period. A Monte Carlo simulation is used to value these awards. |
The number of PRSUs vesting ranges from | ||
• If the relative TSR is below the 25 th percentile, then • If the relative TSR is at the 25th percentile, then • If the relative TSR is above the 25th percentile, then linear scaling is applied such that the percent of the target number of PRSUs vesting is • If the Company’s TSR is negative, the target number of PRSUs vesting is capped at 100 % regardless of the relative TSR percentile. |
December 31, 2021 |
||||||||
Unrecognized Stock- Based Compensation |
Weighted-Average Remaining Vesting Period (Years) |
|||||||
Employees and directors |
$ |
Options |
Weighted-Average Exercise Price |
|||||||
Outstanding January 1, 2019 |
$ | |||||||
Granted |
— | — | ||||||
Forfeitures/expirations |
( |
) | ||||||
Exercised |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at December 31, 2019 |
$ | |||||||
Granted |
— | — | ||||||
Forfeitures/expirations |
( |
) | ||||||
Exercised |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at December 31, 2020 |
$ | |||||||
Granted |
||||||||
Forfeitures/expirations |
( |
) | ||||||
Exercised |
( |
) | ||||||
|
|
|
|
|||||
Outstanding at December 31, 2021 |
$ | |||||||
|
|
|
|
RSAs |
RSUs |
PRSUs (1) |
||||||||||||||||||||||
Shares |
Weighted Average Grant Date Fair Value |
Shares |
Weighted Average Grant Date Fair Value |
Shares |
Weighted Average Grant Date Fair Value |
|||||||||||||||||||
Unvested Balance at January 1, 2019 |
$ | $ | — | $ | — | |||||||||||||||||||
Granted |
(2) |
|||||||||||||||||||||||
Vested |
( |
) | ( |
) | — | — | ||||||||||||||||||
Forfeited |
( |
) | — | — | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Unvested Balance at December 31, 2019 |
$ | $ | ||||||||||||||||||||||
Granted |
(2) |
|||||||||||||||||||||||
Vested |
( |
) | ( |
) | — | — | ||||||||||||||||||
Forfeited |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Unvested Balance at December 31, 2020 |
$ | $ | $ | |||||||||||||||||||||
Granted |
(2) |
|||||||||||||||||||||||
Vested |
( |
) | ( |
) | — |
— |
||||||||||||||||||
Forfeited |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Unvested Balance at December 31, 2021 |
$ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Represents the target number of PRSUs granted and outstanding. The number of PRSUs that ultimately vest ranges from |
(2) | A Monte Carlo simulation was used to value these awards using the following assumptions for the Company and the peer group: (i) beginning 90-day average stock prices; (ii) valuation date stock prices; (iii) correlation coefficients based upon the price data used to calculate the historical volatilities; and (iv) the following additional assumptions: |
Granted in 2021 |
Granted in 2020 |
Granted in 2019 |
||||||||||
Historical stock price volatility (low) |
% | % | % | |||||||||
Historical stock price volatility (high) |
% | % | % | |||||||||
Historical stock price volatility (average) |
% | % | % | |||||||||
Risk free interest rate |
% | % | % | |||||||||
Expected dividend yield |
% | % | % |
Years Ended December 31, |
||||||||||
2021 |
2020 |
2019 |
||||||||
$ |
|
$ | $ | |||||||
|
|
|
|
|
|
|
Years Ended December 31, |
||||||||||||
Basic Earnings/(Loss) per Share |
2021 |
2020 |
2019 |
|||||||||
Net income/(loss) |
$ | $ | ( |
) | $ | ( |
) | |||||
Less: Income distributed to participating securities |
( |
) | ( |
) | ( |
) | ||||||
Less: Undistributed income allocable to participating securities |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net income/(loss) available to common stockholders – Basic EPS |
$ | $ | ( |
) | $ | ( |
) | |||||
Weighted average common shares (in thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
Basic income/(loss) per share |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
Years Ended December 31, |
||||||||||||
Diluted Earnings/(Loss) per Share |
2021 |
2020 |
2019 |
|||||||||
Net income/(loss) available to common stockholders |
$ | $ | ( |
) | $ | ( |
) | |||||
Add back: Undistributed income allocable to participating securities |
— | — | ||||||||||
Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net income/(loss) available to common stockholders – Diluted EPS |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
|||||||
Weighted Average Diluted Shares (in thousands ): |
||||||||||||
Weighted average common shares |
||||||||||||
Dilutive effect of common stock equivalents, excluding participating securities |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Weighted average diluted shares, excluding participating securities (in thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted income/(loss) per share |
$ | $ | ( |
) | $ | ( |
) | |||||
|
|
|
|
|
|
Years Ended December 31, |
||||||||||||
Reconciliation of Weighted Average Diluted Shares (in thousands) |
2021 |
2020 |
2019 |
|||||||||
Weighted average diluted shares as disclosed on the Consolidated Statements of Operations |
(1) |
(1) | ||||||||||
Less: Participating securities: |
||||||||||||
Weighted average shares of common stock issuable upon conversion of the Preferred Shares (Note 13) |
( |
) | — | — | ||||||||
Potentially dilutive restricted stock awards |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Weighted average diluted shares used to calculate diluted earnings/(loss) per share as disclosed in the table above |
(1) |
(1) | ||||||||||
|
|
|
|
|
|
(1) | Excludes |
Year Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
U.S. |
$ | $ | ( |
) | $ | |||||||
Foreign |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Current: |
||||||||||||
Federal |
$ | $ | $ | |||||||||
State and local |
||||||||||||
Foreign |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
|||||||
Deferred: |
||||||||||||
Federal |
$ | ( |
) | $ | $ | ( |
) | |||||
State and local |
( |
) | ( |
) | ||||||||
Foreign |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
$ | $ | ( |
) | $ | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Income tax expense |
$ | $ | $ |
|||||||||
|
|
|
|
|
|
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
U.S. federal statutory income tax |
$ | $ | ( |
) | $ | |||||||
Decrease in unrecognized tax benefits, net |
( |
) | ( |
) | ( |
) | ||||||
Foreign operations |
( |
) | ( |
) | ( |
) | ||||||
Change in tax-related indemnification assets, net |
||||||||||||
Non-deductible executive compensation |
||||||||||||
Stock-based compensation tax shortfalls |
||||||||||||
(Gain)/loss on revaluation of deferred consideration(1) |
( |
) | ||||||||||
Blended state income tax rate, net of federal benefit |
( |
) | ||||||||||
Change in valuation allowance – Capital losses |
||||||||||||
Change in valuation allowance – Foreign net operating losses (“NOLs”) and interest carryforwards |
( |
) | ||||||||||
Non-taxable gain on sale – Canadian ETF business |
( |
) | — | |||||||||
Other differences, net |
||||||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
$ | $ | $ |
|||||||||
|
|
|
|
|
|
(1) | The (gain)/loss on revaluation is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary that is based in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate. |
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Federal |
$ | $ | $ | |||||||||
State and local |
||||||||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
$ |
$ |
$ |
||||||||||
|
|
|
|
|
|
December 31, |
||||||||
2021 |
2020 |
|||||||
Deferred tax assets: |
||||||||
Capital losses |
$ | $ | ||||||
Accrued expenses |
||||||||
NOLs – Foreign |
||||||||
Stock-based compensation |
||||||||
Goodwill and intangible assets |
||||||||
Unrealized losses |
— | |||||||
Interest carryforwards |
||||||||
NOLs – U.S. |
||||||||
Outside basis differences |
||||||||
Operating lease liabilities |
||||||||
Other |
||||||||
|
|
|
|
|||||
Deferred tax assets |
||||||||
|
|
|
|
|||||
Deferred tax liabilities: |
||||||||
Fixed assets and prepaid assets |
||||||||
Foreign currency translation adjustment |
||||||||
Unremitted earnings – International subsidiaries |
||||||||
Allocated equity component of Convertible Notes |
||||||||
Right of use assets – operating leases |
||||||||
|
|
|
|
|||||
Deferred tax liabilities |
||||||||
|
|
|
|
|||||
Total deferred tax assets less deferred tax liabilities |
||||||||
Less: Valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax assets, net |
$ | $ | ||||||
|
|
|
|
Total |
Unrecognized Tax Benefits |
Interest and Penalties |
||||||||||
Balance on January 1, 2020 |
$ | $ | $ | |||||||||
Decrease - Lapse of statute of limitations (1) |
( |
) | ( |
) | ( |
) | ||||||
Increases |
— | |||||||||||
Foreign currency translation (2) |
||||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2020 |
$ | $ | $ | |||||||||
Decrease - Lapse of statute of limitations (1) |
( |
) | ( |
) | ( |
) | ||||||
Increases |
— | |||||||||||
Foreign currency translation (2) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2021 |
$ |
$ | $ | |||||||||
|
|
|
|
|
|
(1) | Recorded as an income tax benefit along with an equal and offsetting amount recorded in other losses and gains, net, to recognize a reduction in the indemnification asset. |
(2) | The gross unrecognized tax benefits were accrued in British pounds. |
Total |
||||
Balance at January 1, 2021 |
$ | |||
Changes |
||||
Balance at December 31, 2021 |
$ |
|||
Advisory Agreements (ETFS) |
||||
Balance at January 1, 2021 |
$ | |||
Changes |
||||
Balance at December 31, 2021 |
$ | |||
Years Ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Lease termination – New York office (Note 14) |
$ | $ | — | $ | — | |||||||
Fixed assets – New York office (Note 9 ) |
— | — | ||||||||||
Lease termination – London office (Note 14) |
— | — | ||||||||||
AdvisorEngine – Financial interests |
$ | |||||||||||
Thesys – Series Y Preferred |
— | |||||||||||
WisdomTree Japan |
— | |||||||||||
Total |
$ |
$ |
$ |
|||||||||
Three Months Ended |
||||||||||||||||||||||||||||||||
Dec. 31 |
Sept. 30 |
June 30 |
Mar. 31 |
Dec. 31 |
Sept. 30 |
June 30 |
Mar. 31 |
|||||||||||||||||||||||||
2021 |
2021 |
2021 |
2021 |
2020 |
2020 |
2020 |
2020 |
|||||||||||||||||||||||||
Total revenues (1) |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating income |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Income/(loss) before income taxes |
$ | $ | $ | $ | ($ | ) | $ | ($ | ) | ($ | ) | |||||||||||||||||||||
Net income/(loss) |
$ | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | ($ | ) | ||||||||||||||||||||
Earnings/(loss) per share – basic |
$ | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | ($ | ) | ||||||||||||||||||||
Earnings/(loss) per share – diluted |
$ | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | ($ | ) | ||||||||||||||||||||
Dividends per common share |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Unusual or Infrequent Items: |
||||||||||||||||||||||||||||||||
(Loss)/gain on revaluation of deferred consideration (Note 12) |
($ | ) | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | ($ | ) | |||||||||||||||||||
Impairments (Note 25) |
— | ( |
) | — | ($ | ) | — | ($ | ) | — | ($ | ) | ||||||||||||||||||||
Loss on extinguishment of debt (Note 13) |
— | — | — | — | — | — | ($ | ) | — |
(1) |
Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 for additional information. |
Exhibit Number |
Description | |
3.1 |
||
3.2 |
||
3.3 |
||
4.1 |
||
4.2 |
||
4.3 |
||
4.4 |
||
4.5 |
||
4.6 |
||
4.7 |
||
4.8 |
||
4.9 |
||
4.10 |
||
10.1 |
||
10.2 |
||
10.3 |
||
10.4 |
Exhibit Number |
Description | |
10.5 |
||
10.6 |
||
10.7 |
||
10.8 |
||
10.9(a) |
||
10.9(b) |
||
10.10 |
||
10.11 |
||
10.12 |
||
10.13 |
||
10.14 |
||
10.15 |
||
10.16 |
||
10.17 |
||
10.18 |
||
10.19 |
||
21.1 |
||
23.1 |
||
31.1 |
||
31.2 |
Exhibit Number |
Description | |
32.1 |
||
101 |
Financial Statements from the Annual Report on Form 10-K of the Company are attached to this report, formatted in XBRL pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets at December 31, 2021 and December 31, 2020; (ii) Consolidated Statements of Operations for the years ended December 31, 2021, December 31, 2020 and December 31, 2019; (iii) Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 31, 2021, December 31, 2020 and December 31, 2019; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2021, December 31, 2020 and December 31, 2019; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2021, December 31, 2020 and December 31, 2019 and (vi) Notes to the Consolidated Financial Statements. | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB |
Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 (1) |
Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) |
WISDOMTREE INVESTMENTS, INC. | ||||||
By: |
/s/ J ONATHAN STEINBERG | |||||
Jonathan Steinberg | ||||||
February 25, 2022 |
Chief Executive Officer and Director |
Signature |
Title | |
/s/ J ONATHAN STEINBERG |
Chief Executive Officer and Director | |
Jonathan Steinberg |
(Principal Executive Officer) | |
/s/ B RYAN EDMISTON |
Chief Financial Officer | |
Bryan Edmiston |
(Principal Financial Officer and Principal Accounting Officer) | |
/s/ F RANK SALERNO |
Non-Executive Chairman of the Board | |
Frank Salerno |
||
/s/ A NTHONY BOSSONE |
Director | |
Anthony Bossone |
||
/s/ S MITA CONJEEVARAM |
Director | |
Smita Conjeevaram |
||
/s/ S USAN COSGROVE |
Director | |
Susan Cosgrove |
||
/s/ W IN NEUGER |
Director | |
Win Neuger |
||
|
Director | |
Harold Singleton III |