Keefe sees no material earnings impact from WisdomTree Wells Notice

Keefe Bruyette keeps a Market Perform rating on WisdomTree Investments after the company received a Wells Notice from the SEC alleging it violated certain provisions of the U.S. federal securities laws in relation to three ESG-focused exchange traded funds that were liquidated in February. The firm expects no material impact to WisdomTree’s earnings as a result of the Wells Notice given the size, scope, and prior fee contribution from the products in question. However, the notice could weigh on shares in the near-term, the analyst tells investors in a research note.