WisdomTree (NYSE:WT) reported a sharp rise in fourth-quarter revenue and operating margins, driven primarily by the integration of its Ceres Partners acquisition.
While the asset manager faced slight net outflows from its fixed-income suite, a lift in equity markets and the addition of new business lines pushed total assets under management (AUM) to a record high.
The New York-based firm posted net income of $40 million for the quarter.
On an adjusted basis, profit reached $41.2 million.
Operating revenues jumped 17.4% from the previous quarter to $147.4 million, reflecting the impact of the Ceres deal, higher average AUM, and increased fees from its European exchange-traded products.
Total AUM climbed 5.3% to $144.5 billion, even as the firm recorded $300 million in net outflows.
The retreat from fixed-income products was largely mitigated by consistent inflows into international developed equity funds and significant market appreciation across its broader portfolio.
The Ceres Acquisition also significantly bolstered the firm’s profitability metrics.
WisdomTree’s adjusted revenue yield rose 4 basis points to 0.42%, while its adjusted operating income margin expanded to 41.7%.