DGAP-News: WisdomTree to Expand Into Europe

DGAP-News: WisdomTree to Expand Into Europe

DGAP-News: WisdomTree Investments, Inc. /
WisdomTree to Expand Into Europe

31.01.2014 / 12:50


         To Enter Europe Through Majority Stake in U.K. ETP Group Boost
    ETF Market Veterans Hector McNeil and Nik Bienkowski to Lead Build-Out of
                                WisdomTree Europe
  WisdomTree and Boost Product Ranges to Serve European Investors, Largest ETP
              Market After U.S. With More Than $400 Billion in AUM

NEW YORK and LONDON, Jan. 31, 2014 (GLOBE NEWSWIRE) -- WisdomTree Investments,
Inc. (Nasdaq:WETF), an exchange-traded fund ('ETF') sponsor and asset manager
with $33.7 billion in assets under management, announced today it will expand
into Europe through a majority investment in U.K. based ETP provider Boost.
WisdomTree will invest $20 million in working capital to fund the build-out of
a local European platform and operations to be led by ETF industry veterans
Hector McNeil and Nik Bienkowski. Through this platform, WisdomTree intends to
launch a select range of UCITS ETFs under the WisdomTree brand and continue to
manage and grow the Boost lineup of short and leveraged fully collateralized
ETPs under the Boost brand. 

Leading independent ETP group to provide local European solutions

WisdomTree launched its first U.S. listed ETFs in June of 2006 and is the only
publicly traded asset manager exclusively focused on the ETF industry.
WisdomTree's range of 61 ETFs across Equities, Fixed Income, Currency Income
and Alternatives asset classes has approximately $33.7 billion in assets under
management. WisdomTree is a market leader in fundamentally weighted ETFs,
currency hedged equity ETFs and actively managed ETFs. In seven years,
WisdomTree has become the fifth largest ETF provider in the U.S. and the eighth
largest globally. 

'We continue to successfully execute our growth plans in the U.S., the world's
largest ETF market, and today's announcement marks the latest in a series of
measured steps we have taken to participate in global ETF market growth,' said
WisdomTree CEO and President Jonathan Steinberg. 'We have an important
marketing relationship with the Compass Group to serve Latin America and we
have made some of our ETFs available for sale in Mexico and Japan. As the
second largest ETP market after the U.S., Europe is a strategically important
market and is the next natural step given our stage of development. Europe will
represent our most significant international effort to date, and we are pleased
to enter this market with an accomplished team.' 

WisdomTree's Vice Chairman, Bruce Lavine, formerly the Head of iShares'
European ETF business, added, 'We believe Europe is poised for continued and
significant ETF growth fueled by constructive regulatory changes and growing
customer appreciation of the benefits of the structure. For WisdomTree
specifically, the demand for smart beta has never been stronger. The decision
for us to expand in Europe is a natural one, and we look forward to working
with Hector and Nik to provide clients with thoughtful local solutions.' 

Boost and WisdomTree - a shared culture of innovation

Prior to founding Boost, Europe's only specialized provider of short and
leveraged ETPs, in late 2011, Hector McNeil and Nik Bienkowski held senior
leadership positions at ETF Securities Limited - one of the world's leading,
independent ETP providers and a pioneer in commodity investments - which they
helped grow from the company's start-up to 70 employees globally and $22
billion in AUM by 2010. 

Hector McNeil and Nik Bienkowski added, 'WisdomTree is an ETF success story and
precisely the kind of innovative and entrepreneurial company we are excited to
join. We look forward to continuing to grow the Boost ETP family under
WisdomTree and we are pleased to lead the platform for WisdomTree's European
ETF plans.' 

Agreement summary

-- Platform formation: WisdomTree to acquire Boost; form WisdomTree Europe to
house WisdomTree and Boost product families 

-- Ownership: WisdomTree to hold 75% ownership stake of new WisdomTree Europe
entity; existing Boost shareholders to hold 25% combined ownership 

-- Leadership: McNeil and Bienkowski to be named Co-CEOs of WisdomTree Europe

-- Working capital infusion: WisdomTree to provide $20 million cash investment
to fund European expansion over four years 

-- Deferred payout: WisdomTree to acquire remaining 25% ownership from existing
Boost shareholders at the end of four years. Payout formula: 

  -- Based on European AUM at the end of four years
  -- Tied to WisdomTree's enterprise value over global AUM at the time of
     payout, and affected by profitability of European business
  -- Payment over two years

-- Transaction close: Subject to regulatory approval and other customary
closing conditions, the transaction is expected to close in the first half of

About WisdomTree

WisdomTree Investments, Inc. is a New York-based exchange-traded fund ('ETF')
sponsor and asset manager. WisdomTree currently offers 61 ETFs across Equities,
Fixed Income, Currency Income and Alternatives asset classes. WisdomTree also
licenses its indexes to third parties for proprietary products and promotes the
use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately
$33.7 billion in ETF assets under management. For more information, please
visit www.wisdomtree.com. 

WisdomTree(R) is the marketing name for WisdomTree Investments, Inc. and its
wholly owned subsidiary WisdomTree Asset Management, Inc. WisdomTree Asset
Management, Inc. is a registered investment advisor and is the investment
advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust
is a registered open-end investment company. Each WisdomTree ETF is a series of
the WisdomTree Trust. 

         CONTACT: WisdomTree Investments, Inc.
         Stuart Bell / Jessica Zaloom
         +1.917.267.3702 / +1.917.267.3735
         sbell@wisdomtree.com / jzaloom@wisdomtree.com
News Source: NASDAQ OMX

End of Corporate News


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Language:    English                       
Company:     WisdomTree Investments, Inc.  
             United States                 
ISIN:        US97717P1049                  
End of News    DGAP News-Service  
250535 31.01.2014                                                      
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