WisdomTree Europe is set to shut 192 ETPs as it looks to complete the final integration stages following its
$611m acquisition of ETF Securities in April 2018.
Over the next few months, the firm’s range will be entirely brought under the WisdomTree brand meaning 224 products under the ETF Securities and Boost ETP identities will be renamed.
As part of this final rebrand, 192 funds will close. These ETPs are either duplicative or products which the firm felt are no longer needed by investors.
WisdomTree said there were 28 ETPs which overlapped, totalling $150m assets, mainly across its short and leveraged commodities and equities range.
The final 164 ETPs were products that had no direct overlap but no longer had relevance. These funds have $84m assets under management (AUM) and are in areas the firm said do not have any appeal to investors.
Investors will have until 16 September to decide what to do with their assets in these ETPs.
Alexis Marinof (pictured), who officially replaces David Abner as head of WisdomTree Europe on 1 August, said the closures followed an evaluation into factors such as market demand and competitive positioning.
“As the world evolves and technological change abounds, so too do the opportunities for investors,” he commented. “We believe these products no longer have the same appeal to our clients.”
WisdomTree said in a statement: "In order to help the products wind down their affairs, it is expected that securities will stop trading on their respective exchanges after the close of trading on or around 16 September.
"We encourage investors to sell their securities prior to the actual liquidation of the products, and as such this should be done by the close of trading on this date."
A full list of the products impacted can be seen on the company's website here.
On the future product range, Marinof told ETF Stream the firm is looking do develop its commodities and UCITS offering with a key focus on innovation.
Following the closures, it will total 250 ETPs across all major asset classes including commodities, equities, FX, fixed income and alternatives.
“It is incredibly exciting to see our full range of products sit under the WisdomTree brand,” he added.
“WisdomTree has demonstrated our commitment to Europe [with the acquisitions we have made over the years].
“This is a milestone for the firm here in Europe, and we look forward to the next stage of our development.”
The news comes just a week after WisdomTree announced Abner was stepping down after 11 years with the firm to form an independent consulting firm.
Speaking to ETF Stream on his appointment as the firm’s European head, Marinof described the move as a “milestone in his career”.
He joined the firm from State Street Global Advisors in 2017, where he spent 13 years, most recently as head of SPDR ETFs, EMEA.
