WisdomTree, Inc.

Good day, and thank you for standing by. Welcome to the WisdomTree third quarter earnings call. At this time, all participants are in listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, then one on your telephone keypad. Please be advised that today's conference may be recorded. If you require operator assistance during the call, please press star, then zero. I'd now like to hand the conference over to your host today, Jessica Zaloup. Wisdom Tree Head of Corporate Communications and Public Relations. Please go ahead.

Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including but not limited to the risks set forth in this presentation and in the risk factor section of the WisdomTree's annual report on Form 10-K for the year ended December 31st, 2020, and quarterly report on Form 10-Q for the quarter ended June 30th, 2021. WisdomTree assumes no duty and does not undertake to update any forward-looking statements Now, it is my pleasure to turn the call over to WisdomTree President and COO, Jared Lillian.

Thanks, Jess, and welcome, everyone. I'm going to kick it off today with some color on the momentum in our business and then turn it over to Brian to go through the results in more detail and to provide an update on expense guidance, and then Jonna will give some closing thoughts before we open it up to Q&A. WisdomTree's positive momentum continued through Q3 with another quarter of organic growth and strong execution against our longer-term strategic initiatives. The $550 million of net inflows in the third quarter marked our fourth straight quarter of net inflows, but the real story is the increasing breadth and depth of our flows and product lineup. Year-to-date WisdomTree is growing at an annualized organic growth rate over 6.5%, with twice as many of our funds having inflows than outflows. In Q3, that fund inflow-outflow ratio for ETFs and USETs increased to 2.7 to 1, and so far in October, the ratio is running well over 3 to 1, with over $1 billion in net inflows, marking our best month of the year. Our U.S. business is generating organic growth of 13%, and the third quarter marked the fifth consecutive quarter of net inflows, including organic growth in 21 of the past 26 months. Success has been marked by recent strength in our fixed income suite, but sustained strength in our equities franchise, including our U.S. Efficient Core Fund, which just got its five-star rating from Morningstar in September and and recognition in the Wall Street Journal about its potential use as the cornerstone of an investor's portfolio. In Europe, USIT's momentum continues with 12 consecutive months of positive flows driving over 1.2 billion of inflows year-to-date and taking AUM and our USIT suite over 3 billion. Our physical gold suite revamp has proven successful. with core gold, Swiss gold, and hedge gold products taking in 180 million of flows in 2021 so far. Year-to-date, our top 10 inflowing funds are a nice mix of USITs and thematics, industrial metals, and new launches, including gold and carbon. Overall, new fund launches have been a point of strength this year, with 14 new fund launches in 2021 and more on the way. Of note is our carbon ETP in Europe, which launched on August 27th and grew to $165 million in AUM by the end of the quarter. That momentum has continued through October, and the fund now has over $220 million in AUM. The pipeline for new product launches remains robust in both the U.S. and Europe, and I look forward to sharing additional successes with you next quarter. We also continue to gain traction with our managed models business. There's a long sales cycle here, especially relative to single-ticker ETFs, and mandates are hard to win, but with success come stickier and more recurring inflows. To date, we have reported on some of those hard-to-win successes, most notably with Merrill Lynch last year and with Morgan Stanley last quarter. But we also have a strong pipeline where we hope to announce another large wire house win and another major RIA win soon. We're still ramping up engagement at Merrill and Morgan, and the new wins haven't yet closed. But through September 30th, roughly 10 percent of our U.S. ETF inflows are already coming through WisdomTree managed models. To be clear, our ETFs are also part of other home office and custom models, And I'm referring to flows coming solely from wisdom tree models. If we were to include these other models where we were also having significant success, the numbers would be substantially higher. Bottom line, we've been investing in our models business for some time, and this investment is paying off. Models are already a meaningful contributor to net inflows today, and we see an even greater opportunity in future periods. Lastly, I want to share with you some of our success and momentum in the crypto landscape. First, in mid-October, the WisdomTree Enhanced Commodity Strategy Fund was the first ETF to add Bitcoin futures as part of the fund mix. Second, we maintain our strong position in crypto ETPs in Europe with both Bitcoin and Ether and additional strategies like crypto baskets in the product development pipelines. As the crypto rally extends in the fourth quarter, there's upward momentum in crypto-related management fees from both market move and organic growth. But the momentum has continued even outside ETPs as WisdomTree's partnership with OnRamp and Gemini and our shared initiative to bring crypto to advisors got its first model win this quarter. Federal Life announced the launch of a variable annuity product that implements a wisdom tree model comprised of nearly two-thirds direct crypto and a third disruptive technology ETS. We are excited to get this product to market and look forward to further implementations with additional partners in the future. All in all, we have momentum and we are generating strong organic growth. As I said last quarter, and we'll say again this quarter, and look forward to saying next quarter, we are executing well on all fronts. Now let me turn it over to Brian to bring it all together with the numbers.