WisdomTree to expand into Europe
New York and London WisdomTree Investments, an ETF sponsor and asset manager with $34bn in AUM, has announced it will expand into Europe through a majority investment in UK based ETP provider Boost.
WisdomTree will invest $20m 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.
WisdomTree launched its first US 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 $34bn 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 US 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 US, 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.”
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