ETFS Capital comments on WisdomTree’s Q1 results

ETFS Capital Limited, the largest combined owner of common stock, $0.01 par value and Series A Non-Voting Convertible Preferred Stock of WisdomTree, with aggregate ownership of approximately 10.2% of the outstanding Common Stock, which together with its Series A Preferred Stock would represent approximately 18.3% of the company’s outstanding Common Stock on an as-converted basis, commented today on WisdomTree’s Q1 earnings announced on Friday, April 28. ETFS Capital has filed a preliminary proxy statement with the SEC for the election of three individuals to the Board of Directors of WisdomTree at the company’s 2023 annual meeting of stockholders. ETFS said: "Last week’s disappointing results for Q1 2023, despite achieving a record $91 billion of assets under management, suggest WisdomTree’s management led by Jonathan Steinberg, lack a credible strategy to translate AUM into expected revenue and operating margins. Most importantly, it is clear that WisdomTree does not have a real plan to turn performance around… We have sought to engage with the Board in a constructive dialogue to reach a mutually agreeable resolution to avoid a proxy contest in 2023. When we engaged a few weeks ago, the Board demanded names of our nominees in order to move forward with settlement discussions. The Board has now had the identity of our nominees for almost 3 weeks and has provided no feedback or proposal for resolution. We, therefore, assume that the Company has no intention to engage. Meanwhile, the Company continues to waste shareholder money on advisors. In 1Q2023 alone, WisdomTree spent approx. $1 million defending an underperforming CEO and two directors who have served for more than a decade while overseeing over $1 billion of shareholder value destruction. The time for change is now and our director nominees are committed to acting in the best interests of all shareholders to help realize the full potential of WisdomTree."