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					                                                                                         Company Report
                                                                                         January 21, 2013




  WisdomTree Investments Inc.                                                            Buy
  1Q13 Off To A Great Start. Raising Estimates & Price Target.                           WETF
                                                                                         Price: Close $7.95
  Our Call
  Fundamentals for WETF are off to a great start in 2013, with AUM up 10% driven         Price Target $10.00
  by over $1.22B of inflows. While the stock has had a strong run, we continue to
  see upside potential and increase our one-year price target to $10.00.
                                                                                         Asset Management
  ■ 1Q13 Off To A Great Start. 2013 is off to an excellent start for WETF with
    AUM up 10% to a record $20.1B through the first 18 days of the quarter. The          Jason Weyeneth, CFA
                                                                                         (212) 763-8293
    growth reflects $1.22B of net inflows and a blended 3.4% market return. Flows
                                                                                         jweyeneth@sterneagee.com
    continue to be driven by the Japan Hedged Equity Fund (DXJ) as investors
    looking to maintain exposure to the Japanese market without taking currency          Alex Levine
    risk have flocked to the fund due to recent volatility in the Yen. Inflows into      (212) 338-4748
                                                                                         alevine@sterneagee.com
    DXJ year to date have totaled $747M, including $576M during the week ending
    1/17 as assets have climbed above $2.0B after only crossing the $1.0B threshold
    on December 21. WETF's $5.2B Emerging Markets Dividend (DEM) fund has                Company Data
    garnered $182M of net new assets year to date while the Emerging Markets Local       Rating                                       Buy
                                                                                         Price: Close                                $7.95
    Debt fund (ELD) has generated inflows of $202M so far in January.                    Price Target                              $10.00
                                                                                         52-Week Range                       $5.37 - $8.95
  ■ Margins Expanding. Absent a pickup in discretionary spending, we continue            Market Capitalization (M)               $1,104.7
    to view management's margin guidance as conservative. Based on current gross         Shares Outstanding (M)                      125.1
    margins, the benefit from the expiration of the currency joint venture, and the      Avg. Daily Vol. (000)                       965.1
                                                                                         Dividend                                    $0.00
    scalability of the business model, we have modeled a pretax margin of 29.0% in       Dividend Yield                              0.0%
    1Q13 with average AUM of just under $19.9 billion. If we assume current gross        Assets (M)                                  $42.6
    margins scale linearly to ~80% at $40 billion of assets (management's guidance)
    and assume discretionary expense growth of ~15% a year (similar to past few
    years), we believe WETF can achieve 40% operating margins at closer to $30
    billion of average assets (vs. $40b guidance).

  ■ Raising Estimates & Price Target. We are raising our '13/'14 estimates to $0.29/
    $0.33 from $0.27/$0.32. The increase primarily reflects the strength in asset
    growth in early '13. The smaller increase in '14 reflects the impact of taxes as
    we now have modeled WETF becoming a full tax payer earlier (now during
    1Q14). We are raising our price target from $9.50 to $10.00 based on 5.5% of
    our estimated year-end '13 AUM.

  ■ Stock Has Had A Great Run, But We Believe There Is More To Go. WETF
    shares are already up 30% year to date. We attribute the strength to a combination
    of the recent asset growth and the disconnect in 2H12 between the stock price
    and fundamentals. The stock currently trades at a market cap to AUM of 5.1%,
    below the 6.0% average in 2012 and the 6.6% average since re-listing on the
    Nasdaq in mid 2011. We note the correlation between the stock price and AUM
    has been 93% since the start of 2009. (See chart on page 2.)
                                                                                         Price Performance
  FYE Dec          2012E      2012E       2013E      2013E       2014E      2014E            10

                   (Prev)     (Curr)      (Prev)     (Curr)      (Prev)     (Curr)            9
  EPS ($)                                                                                     8
  Q1 (Mar)                     0.01A       0.05        0.06                   0.09
                                                                                              7
  Q2 (Jun)                     0.00A       0.06        0.07                   0.07
                                                                                              6
  Q3 (Sept)                    0.04A                   0.08                   0.08
  Q4 (Dec)          0.05        0.04       0.08        0.09                   0.08            5
                                                                                             Jan-12   Apr-12    Jul-12    Oct-12    Jan-13
  FY EPS            0.09        0.08       0.27        0.29       0.32        0.33                WisdomTree Investments Inc.
  P/E                          99.4x                  27.4x                  24.1x                Dow Jones U.S. Asset Managers I (DJUSAM)

                                                                                         Source: FactSet

   Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
                    800 Shades Creek ParkwaySuite 700Birmingham, AL 35209205-949-3500
                                  Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
                                                                                                                                                                                                                                                                               January 21, 2013



WETF Stock Performance vs. Assets Under Management
               10.00                                                                                                                                                                                                                                                                       22,000
                9.00                                                                                                                                                                                                                                                                       20,000
                8.00                                                                                                                                                                                                                                                                       18,000




                                                                                                                                                                                                                                                                                                              AUM ($ in millions)
                7.00                                                                                                                                                                                                                                                                       16,000
 Stock Price




                6.00                                                                                                                                                                                                                                                                       14,000
                5.00                                                                                                                                                                                                                                                                       12,000
                4.00                                                                                                                                                                                                                                                                       10,000
                3.00                                                                                                                                                                                                                                                                       8,000
                                                                                                                                                                                      Correlation since 12/31/08 = 92.5%
                2.00                                                                                                                                                                                                                                                                       6,000
                1.00                                                                                                                                                                                                                                                                       4,000
                0.00                                                                                      Apr-10                                                                                                                                                                           2,000




                                                                                                                                                                                                                                         Apr-12
                                             Apr-09




                                                                                                                                                                         Apr-11
                                    Feb-09




                                                                                               Feb-10




                                                                                                                                                                Feb-11




                                                                                                                                                                                                                              Feb-12
                                                         Jun-09




                                                                                                                                                                                  Jun-11
                                                                                                                      Jun-10




                                                                                                                                                                                                                                                   Jun-12
                           Dec-08




                                                                                     Dec-09




                                                                                                                                                                                                                  Dec-11




                                                                                                                                                                                                                                                                               Dec-12
                                                                                                                                                       Dec-10
                                                                                                                                            Oct-10




                                                                                                                                                                                                                                                                     Oct-12
                                                                            Oct-09




                                                                                                                                                                                                         Oct-11
                                                                   Aug-09




                                                                                                                                                                                             Aug-11
                                                                                                                                Aug-10




                                                                                                                                                                                                                                                            Aug-12
                                                                                                                         Stock Price                                        Assets Under Management

Source: Factset, Company reports, SALI estimates.




WETF Market Cap to Assets Under Management
 12.0%

 10.0%

    8.0%

    6.0%

    4.0%

    2.0%

    0.0%
                                         Apr-09




                                                                                                             Apr-10




                                                                                                                                                                                    Apr-11




                                                                                                                                                                                                                                                            Apr-12
                              Feb-09




                                                                                                 Feb-10




                                                                                                                                                                         Feb-11




                                                                                                                                                                                                                                                  Feb-12
                                                      Jun-09




                                                                                                                           Jun-10




                                                                                                                                                                                                Jun-11




                                                                                                                                                                                                                                                                      Jun-12
                  Dec-08




                                                                                      Dec-09




                                                                                                                                                                Dec-10




                                                                                                                                                                                                                                       Dec-11




                                                                                                                                                                                                                                                                                                     Dec-12
                                                                            Oct-09




                                                                                                                                                     Oct-10




                                                                                                                                                                                                                           Oct-11




                                                                                                                                                                                                                                                                                            Oct-12
                                                                  Aug-09




                                                                                                                                         Aug-10




                                                                                                                                                                                                             Aug-11




                                                                                                                                                                                                                                                                                  Aug-12




Source: Company reports, SALI Estimates, FactSet.




                                                                                                                                                                                                                                                                                                     Page 2
                                                                                                                                                                   January 21, 2013

Wisdom Tree Annual Earnings Model 2007-2014E
$ Millions Except Per Share Data                                                                                           2008      2009       2010       2011     2012E       2013E      2014E
                                                                                                                            v s.      v s.       v s.       v s.       v s.       v s.       v s.
Fiscal Year Ends December 31              2007       2008       2009      2010      2011    2012E     2013E     2014E      2007      2008       2009       2010       2011      2012E      2013E


OVERVIEW


Total Rev enues                        18.230     23.611     22.095     41.612    65.160   84.700   125.076   170.862       30%       -6%       88%        57%        30%         48%        37%
GAAP Income                            (25.131)   (27.045)   (21.228)   (7.549)    3.242   11.644    41.284    46.671        8%      -22%       -64%     -143%       259%       255%         13%
Cash Income                            (14.048)   (17.162)   (10.659)    1.520     8.328   19.723    49.483    55.298       22%      -38%      -114%      448%       137%       151%         12%
EBITDA                                 (25.053)   (26.708)   (20.868)   (7.235)    3.509   11.950    41.629    70.315        7%      -22%       -65%     -149%       241%       248%         69%


EPS - GAAP                             ($0.26)    ($0.27)    ($0.21)    ($0.07)   $0.02    $0.08     $0.29     $0.33        NM        NM         NM         NM       251%       249%        11%
EPS - Cash                             ($0.15)    ($0.17)    ($0.10)    $0.01     $0.06    $0.14     $0.35     $0.39        NM        NM         NM       454%       132%       148%        10%
Consensus                                                                                  $0.09     $0.26     $0.30


Shares & Buyback Activity
Shares Outstanding                        95.5      100.2      103.4     112.0     114.5    122.0     125.0     127.0        5%        3%         8%         2%         7%         2%         2%
Diluted Shares Outstanding                                     135.9     136.9     135.3    138.3     140.2     142.2                             1%        -1%         2%         1%         1%

AUM & Net Flows ($ billions)
Ending AUM                              4,656      3,643      6,668     10,642    12,182   18,286    26,186    35,688      -22%      83%        60%        14%        50%         43%        36%
Av erage AUM                            1,556      4,535      4,540      8,028    11,845   15,570    22,480    30,745     192%         0%       77%        48%        31%         44%        37%

Net Flow s                              2,951        907      1,773      3,135     3,898    4,732     6,176     7,298      -69%      95%        77%        24%        21%         31%        18%
Net Flow s to Beg. AUM - annualized    193.7%      19.9%      55.7%      52.4%     39.4%    38.8%     33.8%     27.9%       NM 3585 bps      -332 bps -1302 bps    -56 bps    -507 bps   -591 bps

Margins
Pre-tax Operating Margin - GAAP        -137.9%    -114.5%     -96.1%    -18.1%      5.0%    13.7%     33.0%     40.9%   2331 bps 1847 bps 7793 bps 2312 bps        877 bps 1926 bps      792 bps
Pre-tax Operating Margin - Cash         -77.1%     -72.7%     -48.2%      3.7%     12.8%    23.3%     39.6%     32.4%   437 bps 2444 bps 5189 bps       913 bps 1050 bps 1628 bps        -720 bps
Gross Margin                            39.2%      37.1%      39.0%      60.2%     60.8%    66.6%     71.8%     75.1%   -209 bps   189 bps 2114 bps      66 bps    579 bps    521 bps    333 bps
Adv isory Fees / Av g. AUM              0.50%      0.52%      0.52%      0.55%     0.55%    0.54%     0.55%     0.55%    1.8 bps   0.2 bps    3.3 bps   -0.3 bps   -0.9 bps    1.1 bps    0.1 bps

INCOME STATEMENT

Adv isory Fees                                    21.643     20.812     40.567    64.366   83.900   124.192   169.978                 -4%       95%        59%        30%         48%        37%
Other Income                                       1.968      1.283      1.045     0.794    0.800     0.884     0.884                -35%       -19%       -24%         1%        11%         0%
Total Revenues                           18.23    23.611     22.095     41.612    65.160   84.700   125.076   170.862       30%       -6%       88%        57%        30%         48%        37%

Compensation & Benefits                 23.264    20.338     18.943     19.193    19.634   23.092    27.827    34.920      -13%       -7%         1%         2%       18%         21%        25%
  Cash Comp & Benefits                  12.259    10.792      8.734     10.438    14.815   15.319    19.973    26.673      -12%      -19%       20%        42%          3%        30%        34%
Fund Ex penses                          11.082    15.167     13.387     14.286    19.882   22.825    34.730    41.845       37%      -12%         7%       39%        15%         52%        20%
Marketing & Adv ertising                 8.045     5.875      2.762      3.721     4.475    5.156     5.930     6.819                -53%       35%        20%        15%         15%        15%
Sales & Business Dev elopment                      3.247      2.495      2.730     3.603    3.385     3.625     4.002                -23%         9%       32%         -6%         7%        10%
Professional and Consulting Fees         1.755     1.871      1.780      3.779     5.036    5.169     5.943     6.886        7%       -5%      112%        33%          3%        15%        16%
Occupancy , Communication, Equipment      1.01     1.564      1.087      1.118     1.127    1.433     1.632     1.801       55%      -30%         3%         1%       27%         14%        10%
Depreciation & Amortization              0.078     0.337      0.360      0.314     0.267    0.306     0.345     0.380                  7%       -13%       -15%       15%         13%        10%
Other                                              2.577      2.420      1.724     2.243    2.961     3.232     3.637                 -6%       -29%       30%        32%          9%        13%
ETF shareholder prox y                                                                      3.264     0.000     0.000
Litigation                                                                                  0.003     0.000     0.000
Third Party Sharing Arrangements                   (0.320)    0.089      2.296     5.651    5.462     0.529     0.637               -128%     2480%       146%         -3%       -90%        20%
Total Expenses                          43.361    50.656     43.323     49.161    61.918   73.056    83.792   100.928       17%      -14%       13%        26%        18%         15%        20%
Discretionary Ex penses                           35.809     29.847     32.579    35.656   41.502    48.533    58.446                             9%         9%       16%         17%        20%

Pre-Tax Income                         (25.131)   (27.045)   (21.228)   (7.549)    3.242   11.644    41.284    69.934        8%      -22%       -64%     -143%       259%       255%         69%
Tax es                                  0.000      0.000      0.000      0.000     0.000    0.000     0.000    23.263
Tax Rate                                  0.0%       0.0%       0.0%      0.0%      0.0%     0.0%      0.0%     33.3%
Net Income (loss)                      -25.131    (27.045)   (21.228)   (7.549)    3.242   11.644    41.284    46.671        8%      -22%       -64%     -143%       259%       255%         13%

Stock Based Compensation                11.005     9.546     10.209      8.755     4.819    7.773     7.854     8.247      -13%        7%       -14%       -45%       61%          1%         5%
Depreciation & Amortization              0.078     0.337      0.360      0.314     0.267    0.306     0.345     0.380     332%         7%       -13%       -15%       15%         13%        10%
Cash Income (loss)                     (14.048)   (17.162)   (10.659)    1.520     8.328   19.723    49.483    55.298       22%      -38%      -114%      448%       137%       151%         12%

Source: Company reports, SALI estimates.




                                                                                                                                                                                   Page 3
                                                                                                                                                            January 21, 2013

Wisdom Tree Annual Earnings Model 2007-2014E
$ Millions Except Per Share Data                                                                                   2008       2009       2010       2011      2012E      2013E      2014E
                                                                                                                    v s.       v s.       v s.       v s.       v s.       v s.       v s.
Fiscal Year Ends December 31             2007     2008     2009    2010     2011     2012E    2013E    2014E       2007       2008       2009       2010       2011      2012E      2013E

ASSETS UNDER MANAGEMENT

Total ETF AUM                           4,075   3,180     5,979   9,891   12,182    18,286   26,186   35,688       -22%        88%        65%        23%        50%        43%        36%

International Dev eloped Markets ETFs    61%      50%      38%     27%      20%       18%      24%      24%    -1115 bps -1219 bps -1021 bps     -699 bps   -201 bps   547 bps     51 bps
International Emerging Markets ETFs       N/A     10%      19%     29%      31%       37%      38%      37%                899 bps    940 bps    284 bps    523 bps    166 bps    -172 bps
International Sector ETFs                 9%      11%       7%      4%       2%                                 160 bps    -403 bps   -293 bps   -161 bps
US ETFs                                  30%      24%      28%     22%      21%       27%      21%      20%     -647 bps   452 bps    -619 bps    -49 bps   596 bps    -616 bps    -78 bps
Currency ETFs                             0%       6%       9%     19%      13%        5%       3%       3%     591 bps    272 bps    993 bps    -599 bps   -754 bps   -178 bps    -10 bps
Fix ed Income ETF's                       N/A      N/A      N/A     N/A     11%       11%      13%      15%         N/A        N/A        N/A        NM      53 bps    135 bps    181 bps
Alternativ e ETF's                        N/A      N/A      N/A     N/A      1%        1%       1%       1%         N/A        N/A        N/A        NM      -13 bps    -54 bps    27 bps
Total                                   100%     100%     100%    100%     100%      100%     100%     100%

Rollforwards
Total ETFs
Beginning AUM                           1,523   4,559     3,180   5,979    9,891    12,182   18,286   26,186      199%        -30%        88%        65%        23%        50%        43%
Net Flow s                              2,951     907     1,773   3,135    3,898     4,732    6,176    7,298       -69%        95%        77%        24%        21%        31%        18%
Market Appreciation                       85    (2,286)   1,026    778    (1,607)    1,372    1,724    2,205     -2791%      -145%       -24%      -307%      -185%        26%        28%
Ending AUM                              4,559   3,180     5,979   9,891   12,182    18,286   26,186   35,688       -30%        88%        65%        23%        50%        43%        36%

Av erage AUM                            1,540   4,288     3,964   7,308   11,751    15,570   22,480   30,745      178%         -8%        84%        61%        32%        44%        37%
Organic Grow th                         194%      20%      56%     52%      39%       39%      34%      28%         NM 3585 bps       -332 bps -1302 bps     -56 bps   -507 bps   -591 bps
Market Performance                       5.6%   -50.1%    32.3%   13.0%   -16.2%     11.3%     9.4%     8.4%

Source: Company reports, SALI estimates.




                                                                                                                                                                            Page 4
                                                                                                                                                                                                                                  January 21, 2013
Wisdom Tree Quarterly Earnings Model 2008 – 2012E
                           \      \          \                     \
$ Millions Except Per Share Data                                                                                                                                     1Q12        2Q12        3Q12      4Q12E      1Q13E      2Q13E      3Q13E      4Q13E
                                       Dec-11   Mar-12   Jun-12        Sep-12   Dec-12    Mar-13   Jun-13   Sep-13   Dec-13   Mar-14   Jun-14   Sep-14   Dec-14        v s.        v s.        v s.       v s.       v s.       v s.       v s.       v s.
Fiscal Year Ends December 31            4Q11     1Q12     2Q12          3Q12    4Q12E     1Q13E    2Q13E    3Q13E    4Q13E    1Q14E    2Q14E    3Q14E    4Q14E       1Q11        2Q11        3Q11       4Q11       1Q12       2Q12        3Q12     4Q12E


OVERVIEW


Total Rev enues                        16.175   19.170   20.393        21.661   23.476    27.556   30.023   32.425   35.071   37.943   40.993   44.238   47.688       32%         22%         22%        45%        44%        47%         50%       49%
GAAP Income                             0.889    1.112    0.129         4.533    5.870     8.002    9.251   11.502   12.529   12.104    9.875   11.819   12.873      617%        -81%        234%       560%       620%      7072%       154%       113%
Cash Income                             1.956    3.298    2.122         6.482    7.821    10.049   11.300   13.552   14.582   14.258   12.030   13.977   15.033       41%         36%        179%       300%       205%       433%       109%        86%
EBITDA                                  0.956    1.183    0.204         4.612    5.951     8.085    9.337   11.589   12.618   14.272   16.021   19.160   20.861      438%        -73%        223%       522%       583%      4477%       151%       112%


EPS - GAAP                             $0.01    $0.01    $0.00         $0.04    $0.04     $0.06    $0.07    $0.08    $0.09    $0.09    $0.07    $0.08    $0.09      583%         -82%       209%        446%      515%      6147%        123%      110%
EPS - Cash                             $0.01    $0.02    $0.02         $0.05    $0.06     $0.07    $0.08    $0.10    $0.10    $0.10    $0.08    $0.10    $0.11       38%         33%        174%        290%      200%       427%        106%       84%
Consensus                                                                       $0.04     $0.05    $0.06    $0.07    $0.06    $0.08    $0.06    $0.07       NA


Shares & Buyback Activity
Shares Outstanding                      114.9    119.2    121.9         123.2    123.7     124.2    124.7    125.2    125.7    126.2    126.7    127.2    127.7        5%          5%          8%         8%         4%         2%          2%        2%
Diluted Shares Outstanding              135.7    137.4    138.5         138.5    139.0     139.5    140.0    140.5    141.0    141.5    142.0    142.5    143.0        2%          3%          2%         2%         1%         1%          1%        1%

AUM & Net Flows ($ billions)
Ending AUM                             12,182   15,691   15,004        16,783   18,286    20,784   22,391   24,165   26,186   28,337   30,631   33,079   35,688       39%         16%         50%        50%        32%        49%         44%       43%
Av erage AUM                           11,836   14,265   15,116        15,806   17,092    19,880   21,587   23,278   25,175   27,261   29,483   31,855   34,383       34%         25%         23%        44%        39%        43%         47%       47%

Net Flow s                               756     2,299     338          1,036    1,059     2,034    1,218    1,355    1,569    1,662    1,766    1,876    1,993       82%        -80%        479%        40%       -12%       260%         31%       48%
Net Flow s to Beg. AUM - annualized     27.0%    75.5%     8.6%         27.6%    25.2%     44.5%    23.4%    24.2%    26.0%    25.4%    24.9%    24.5%    24.1%   2437 bps -5161 bps      2208 bps    -179 bps -3100 bps 1482 bps      -340 bps    72 bps

Margins
Pre-tax Operating Margin - GAAP          5.5%     5.8%     0.6%         20.9%    25.0%     29.0%    30.8%    35.5%    35.7%    37.4%    38.9%    43.1%    43.5%    473 bps    -349 bps    1326 bps 1951 bps 2324 bps 3018 bps 1454 bps 1072 bps
Pre-tax Operating Margin - Cash         12.1%    17.2%    10.4%         29.9%    33.3%     36.5%    37.6%    41.8%    41.6%    43.0%    44.1%    48.0%    48.1%    111 bps     110 bps    1680 bps 2122 bps 1926 bps 2723 bps 1187 bps            826 bps
Gross Margin                            62.2%    62.5%    66.7%         68.3%    68.3%     70.7%    71.4%    72.1%    72.8%    73.7%    74.5%    75.5%    76.5%   -108 bps    1003 bps     714 bps    606 bps    818 bps    471 bps    375 bps    452 bps
Adv isory Fees / Av g. AUM              0.54%    0.54%    0.54%         0.54%    0.54%     0.55%    0.55%    0.55%    0.55%    0.55%    0.55%    0.55%    0.55%     -2 bps      -1 bps      -1 bps      0 bps      1 bps      1 bps      1 bps      1 bps

INCOME STATEMENT

Adv isory Fees                         16.025   18.975   20.230        21.440   23.255    27.335   29.802   32.204   34.850   37.722   40.772   44.017   47.467       33%         23%         22%        45%        44%        47%         50%       50%
Other Income                            0.150    0.195    0.163         0.221    0.221     0.221    0.221    0.221    0.221    0.221    0.221    0.221    0.221      -25%        -19%         21%        47%        13%        36%          0%        0%
Total Revenues                         16.175   19.170   20.393        21.661   23.476    27.556   30.023   32.425   35.071   37.943   40.993   44.238   47.688       32%         22%         22%        45%        44%        47%         50%       49%

Compensation & Benefits                 4.722    5.857    5.477         5.734    6.024     6.429    6.764    7.124    7.511    8.025    8.472    8.953    9.470       12%         19%         13%        28%        10%        23%         24%       25%
  Cash Comp & Benefits                  3.722    3.742    3.559         3.864    4.154     4.465    4.800    5.160    5.547    5.963    6.411    6.891    7.408       21%         -7%         -8%        12%        19%        35%         34%       34%
Fund Ex penses                          4.891    5.439    5.567         5.671    6.148     7.953    8.463    8.924    9.390    9.847   10.280   10.680   11.038       31%         -3%         11%        26%        46%        52%         57%       53%
Marketing & Adv ertising                1.235    1.326    1.548         0.862    1.420     1.525    1.780    0.991    1.633    1.754    2.047    1.140    1.878       36%         14%         -5%        15%        15%        15%         15%       15%
Sales & Business Dev elopment           0.991    0.860    0.842         0.831    0.852     0.873    0.895    0.917    0.940    0.964    0.988    1.012    1.038       15%         -8%        -13%        -14%        2%         6%         10%       10%
Professional and Consulting Fees        1.114    1.109    1.401         1.305    1.354     1.405    1.457    1.512    1.569    1.628    1.689    1.752    1.818      -18%         29%        -11%        22%        27%         4%         16%       16%
Occupancy , Communication, Equipment    0.281    0.301    0.375         0.374    0.383     0.393    0.403    0.413    0.423    0.434    0.445    0.456    0.467       10%         32%         30%        36%        31%         7%         10%       10%
Depreciation & Amortization             0.067    0.071    0.075         0.079    0.081     0.083    0.085    0.087    0.089    0.092    0.094    0.096    0.099        9%         12%         16%        21%        17%        13%         10%       10%
Other                                   0.618    0.609    0.743         0.859    0.750     0.773    0.796    0.820    0.844    0.869    0.896    0.922    0.950       33%         63%         21%        21%        27%         7%         -5%       13%
ETF shareholder prox y                           0.066    3.198
Litigation                              0.150    0.675   (0.191)        0.219   (0.700)
Third Party Sharing Arrangements        1.217    1.745    1.229         1.194    1.294     0.121    0.129    0.136    0.143    0.150    0.157    0.163    0.168       55%        -19%        -33%         6%       -93%       -90%        -89%      -89%
Total Expenses                         15.286   18.058   20.264        17.128   17.606    19.554   20.771   20.924   22.543   23.762   25.066   25.175   26.925       26%         26%          5%        15%         8%         3%         22%       28%
Discretionary Ex penses                 9.028   10.133   10.461        10.044   10.864    11.480   12.180   11.864   13.010   13.765   14.630   14.332   15.719       16%         21%          8%        20%        13%        16%         18%       20%

Pre-Tax Income                          0.889    1.112    0.129         4.533    5.870     8.002    9.251   11.502   12.529   14.181   15.927   19.064   20.763      617%        -81%        234%       560%       620%      7072%       154%       113%
Tax es                                  0.000    0.000    0.000         0.000    0.000     0.000    0.000    0.000    0.000    2.077    6.052    7.244    7.890
Tax Rate                                 0.0%     0.0%     0.0%          0.0%     0.0%      0.0%     0.0%     0.0%     0.0%    38.0%    38.0%    38.0%    38.0%
Net Income (loss)                       0.889    1.112    0.129         4.533    5.870     8.002    9.251   11.502   12.529   12.104    9.875   11.819   12.873      617%        -81%        234%       560%       620%      7072%       154%       113%

Stock Based Compensation                1.000    2.115    1.918         1.870    1.870     1.964    1.964    1.964    1.964    2.062    2.062    2.062    2.062        0%        140%        108%        87%        -7%         2%          5%        5%
Depreciation & Amortization             0.067    0.071    0.075         0.079    0.081     0.083    0.085    0.087    0.089    0.092    0.094    0.096    0.099        9%         12%         16%        21%        17%        13%         10%       10%
Cash Income (loss)                      1.956    3.298    2.122         6.482    7.821    10.049   11.300   13.552   14.582   14.258   12.030   13.977   15.033       41%         36%        179%       300%       205%       433%       109%        86%

Source: Company reports, SALI estimates.

                                                                                                                                                                                                                                                    Page 5
                                                                                                                                                                                                                          January 21, 2013

Wisdom Tree Quarterly Earnings Model 2008 – 2012E
$ Millions Except Per Share Data                                                                                                                                    1Q12        2Q12       3Q12      4Q12E      1Q13E       2Q13E      3Q13E      4Q13E
                                        Dec-11    Mar-12   Jun-12    Sep-12    Dec-12   Mar-13   Jun-13   Sep-13   Dec-13   Mar-14   Jun-14   Sep-14   Dec-14         v s.       v s.        v s.       v s.       v s.        v s.       v s.       v s.
Fiscal Year Ends December 31             4Q11      1Q12     2Q12      3Q12     4Q12E    1Q13E    2Q13E    3Q13E    4Q13E    1Q14E    2Q14E    3Q14E    4Q14E        1Q11        2Q11       3Q11        4Q11       1Q12        2Q12       3Q12     4Q12E

ASSETS UNDER MANAGEMENT

Total ETF AUM                           12,182    15,691   15,004    16,783    18,286   20,784   22,391   24,165   26,186   28,337   30,631   33,079   35,688        39%         16%        50%         50%        32%         49%        44%        43%

International Dev eloped Markets ETFs     19%       19%      19%       18%       18%      23%      24%      24%      24%      24%      24%      24%      25%     -275 bps    -265 bps   -110 bps    -155 bps   389 bps     538 bps    603 bps    660 bps
International Emerging Markets ETFs       29%       34%      36%       37%       40%      39%      38%      38%      38%      37%      37%      36%      36%     -163 bps    368 bps     840 bps 1047 bps      552 bps     241 bps     62 bps    -190 bps
International Sector ETFs                  2%                                                                                                                    -239 bps    -214 bps   -183 bps    -177 bps     0 bps       0 bps      0 bps      0 bps
US ETFs                                   25%       28%      27%       28%       26%      23%      21%      21%      20%      20%      20%      20%      20%     694 bps     753 bps     806 bps    130 bps    -531 bps    -605 bps   -723 bps   -607 bps
Currency ETF's                             9%        7%       5%        4%        4%       3%       3%       3%       3%       3%       3%       3%       3%     -641 bps    -843 bps   -955 bps    -577 bps   -329 bps    -225 bps   -114 bps    -44 bps
Fix ed Income ETF's                       13%       11%      11%       11%       12%      12%      13%      13%      13%      14%      14%      15%      15%     481 bps     145 bps    -283 bps    -131 bps    34 bps     127 bps    199 bps    179 bps
Alternativ e ETF's                         2%        2%       1%        1%        1%       1%       1%       1%       1%       1%       1%       1%       1%     143 bps      55 bps    -116 bps    -137 bps   -116 bps     -76 bps    -26 bps     3 bps
Total                                    100%      100%     100%      100%      100%     100%     100%     100%     100%     100%     100%     100%     100%

Rollforwards
Total ETFs
Beginning AUM                           11,184    12,182   15,691    15,004    16,783   18,286   20,784   22,391   24,165   26,186   28,337   30,631   33,079        23%         39%        16%         50%        50%         32%        49%        44%
Net Flow s                                756      2,299     338      1,036     1,059    2,034    1,218    1,355    1,569    1,662    1,766    1,876    1,993        82%        -80%       479%         40%       -12%       260%         31%        48%
Market Appreciation                       242      1,210   (1,025)     743       444      464      389      419      452      489      529      571      616        838%      1992%       -139%         83%       -62%       -138%       -44%         2%
Ending AUM                              12,182    15,691   15,004    16,783    18,286   20,784   22,391   24,165   26,186   28,337   30,631   33,079   35,688        39%         16%        50%         50%        32%         49%        44%        43%

Av erage AUM                            11,836    14,265   15,116    15,806    17,092   19,880   21,587   23,278   25,175   27,261   29,483   31,855   34,383        39%         25%        23%         44%        39%         43%        47%        47%
Organic Grow th                           27%       75%       9%       28%       25%      44%      23%      24%      26%      25%      25%      25%      24%    2437 bps -5161 bps      2208 bps    -179 bps -3100 bps 1482 bps       -340 bps    72 bps
Market Performance                        2.2%      9.9%    -6.5%      5.0%      2.6%     2.5%     1.9%     1.9%     1.9%     1.9%     1.9%     1.9%     1.9%

International Developed Markets ETFs
Beginning AUM                            2,299     2,407    2,964     2,846     2,896    3,732    5,028    5,443    5,892    6,378    6,904    7,474    8,090        17%         13%         9%         26%        55%         70%        91%      103%
Net Flow s                                 (78)     302      137        (58)     620     1,166     314      340      368      399      432      467      506        -37%       315%       -216%       -895%      286%        129%       -687%       -41%
Market Appreciation                         (9)     255      (255)     108       216      130      101      109      118      128      138      149      162        264%       844%       -129%      -2499%       -49%       -139%         1%       -45%
Ending AUM                               2,212     2,964    2,846     2,896     3,732    5,028    5,443    5,892    6,378    6,904    7,474    8,090    8,758        13%          9%        26%         69%        70%         91%      103%         71%

Av erage AUM                             2,287     2,680    2,853     2,896     3,038    4,508    5,236    5,667    6,135    6,641    7,189    7,782    8,424        21%         10%        16%         33%        68%         84%        96%      102%
Organic Grow th                           -14%      50%      18%        -8%      86%     125%      25%      25%      25%      25%      25%      25%      25%    -4312 bps    1344 bps -1579 bps 9917 bps 7481 bps          651 bps 3315 bps -6060 bps
Market Performance                       -0.4%     10.6%    -8.6%      3.8%      7.5%     3.5%     2.0%     2.0%     2.0%     2.0%     2.0%     2.0%     2.0%

Source: Company reports, SALI estimates.




                                                                                                                                                                                                                                          Page 6
                                                                                                                         January 21, 2013


                                                       APPENDIX SECTION
Company Description:
WisdomTree Investments is a New York-based exchange-traded fund (ETF) sponsor and asset manager. The company offers a broad
array of ETFs across equities, currencies, fixed income, and alternative asset classes. WisdomTree also licenses its indexes to third
parties for proprietary products and offers a platform to promote the use of WisdomTree ETFs in 401k platforms.

IMPORTANT DISCLOSURES:
Regulation Analyst Certification:
I, Jason Weyeneth and Alex Levine, hereby certify the views expressed in this research report accurately reflect my personal views about
the subject security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related
to the specific recommendations or views expressed by me in this report.

Research Disclosures:
Sterne, Agee & Leach, Inc. makes a market in the following subject company WisdomTree Investments Inc.
Sterne, Agee & Leach, Inc. managed or co-managed a public offering of securities for the following subject company in the past 12
months: WisdomTree Investments Inc..
Sterne, Agee & Leach, Inc. provided and received compensation for providing investment banking services for the following subject
company within the past 12 months: WisdomTree Investments Inc..
Sterne, Agee & Leach, Inc. analyst or a member of the research analyst's household has a financial interest in the securities of the
subject company: WisdomTree Investments Inc..
Sterne, Agee & Leach, Inc.'s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach,
Inc.'s total revenues, a portion of which is generated by investment banking activities.
Sterne Agee & Leach, Inc. expects to receive or intends to seek compensation for investment banking services from the subject company
and/or companies in the next three months.

Price Target Risks & Related Risk Factors:
Investment risks associated with the achievement of the price target include, but are not limited to, a company's failure to achieve
Sterne, Agee & Leach, Inc., earnings and revenue estimates; unforeseen macroeconomic and/or industry events that adversely affect
demand for a company's products or services; product obsolescence; changes in investor sentiment regarding the specific company or
industry; intense and rapidly changing competitive pressures; the continuing development of industry standards; the company's ability
to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could
affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities
Exchange Commission.
Company Specific Risks:
Risks include a slowdown in ETF industry or company organic growth rate; concentration risk from emerging market assets; litigation
risk relating to the patent infringement lawsuit; and key man risk given the well-known nature of the Chairman, CEO, and a strategic
advisor.
Valuation Methodology:
Methodology for assigning ratings and target prices includes qualitative and quantitative factors including an assessment of industry
size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition; and
expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry
or company-specific occurrences. Sterne, Agee & Leach, Inc., analysts base valuations on a combination of forward looking earnings
multiples, price-to-revenue multiples, and enterprise-value-to-revenue ratios. Sterne, Agee & Leach, Inc., believes this accurately reflects
the strong absolute value of earnings, the strong earnings growth rate, the inherent profitability, and adjusted balance sheet factors.
Additional company-specific valuation methodology is available through Sterne, Agee & Leach, Inc.

Company Specific Valuation:
Our price target is based on a market cap to AUM multiple.
Definition of Investment Ratings:
BUY: We expect this stock to outperform the industry over the next 12 months.
NEUTRAL: We expect this stock to perform in line with the industry over the next 12 months.
UNDERPERFORM: We expect this stock to underperform the industry over the next 12 months.


                                                                                                             Appendix Section, Page I
                                                                                                                      January 21, 2013

RESTRICTED: Restricted list requirements preclude comment.

Ratings Distribution:
                                                                                                       IB Serv./ Past 12Mos.
Rating Category                       Count                     Percent                  Count                    Percent
Buy                                   218                       48.02%                   19                       8.72%
Neutral                               220                       48.46%                   14                       6.36%
Underperform                          16                        3.52%                    0                        0.00%

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731.
Other Disclosures:
Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not
represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or
more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein
and may act as principal or agent to buy or sell such securities.
Copyright © 2013 Sterne, Agee & Leach, Inc. All Rights Reserved.




To receive price charts or other disclosures on the companies mentioned in this report, please visit our website at https://
sterneagee.bluematrix.com/sellside/Disclosures.action or contact Sterne, Agee & Leach, Inc. toll-free at (800) 240-1438 or
(205) 949-3689.




                                                                                                         Appendix Section, Page II
                       Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the
                       early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we
                       have expanded to serve all regions of the country. Sterne, Agee is headquartered in Birmingham, Alabama with offices in 22 states. Sterne
                       Agee is one of the largest independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also
                       includes The Trust Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee
                       Financial Services, Inc.—www.sterneagee.com

                                                              EQUITY CAPITAL MARKETS
                                         Ryan Medo             Managing Dir., Eq. Cap. Mkts.              (205) 949-3623


                      INSTITUTIONAL SALES                                                                     INSTITUTIONAL TRADING
William Jump       Director of Institutional Sales            (404) 814-3960           JT Cacciabaudo        Head of Trading                           (212) 763-8288
Jon Schenk         Assoc. Director of Inst. Sales             (212) 763-8221

                                                                    EQUITY RESEARCH
                                         Robert Hoehn           Director of Research                      (212) 338-4731
CONSUMER                                                                               INDUSTRIALS
 Interactive Entertainment / Internet                                                    Aerospace & Defense
  Arvind Bhatia, CFA                   Mng. Dir.              (214) 702-4001              Peter Arment                         Mng. Dir.               (646) 376-5336
  Brett Strauser                       VP, Analyst            (214) 702-4009              Josh W. Sullivan                     Sr. Analyst             (646) 376-5337

  Footwear & Apparel
                                                                                          Auto, Auto Parts and Auto Retailers
  Sam Poser                            Mng. Dir.              (212) 763-8226
                                                                                          Michael P. Ward, CFA                 Mng. Dir.               (646) 376-5375
  Ben Shamsian                         Analyst                (212) 338-4721

  Leisure & Entertainment                                                                 Coal, Metals & Mining, Engineering & Construction
  David Bain                           Mng. Dir.              (949) 721-6651              Michael S. Dudas, CFA                Mng. Dir.               (646) 376-5329
                                                                                          Satyadeep Jain, CFA                  Analyst                 (646) 376-5357
  Restaurants                                                                             Patrick Uotila, CPA                  Analyst                 (646) 376-5358
  Lynne Collier                        Mng. Dir.              (214) 702-4045
                                                                                          Construction Materials & Diversified Industrials
ENERGY                                                                                    Todd Vencil, CFA                     SVP, Sr. Analyst       (804) 282-7385
  Exploration & Production                                                                Kevin Bennett, CFA                   VP, Analyst            (804) 282-4506
  Tim Rezvan, CFA                      Sr. Analyst            (212) 338-4736
                                                                                       HEALTHCARE
  Oilfield Services & Equipment                                                           Pharmaceutical Services
  Stephen D. Gengaro                   Mng. Dir.              (646) 376-5331              Greg T. Bolan                        Mng. Dir.              (615) 760-1469
  Grant Fox                            Analyst                (212) 338-4723              Himanshu Rastogi, PhD, CFA           VP, Analyst            (615) 760-1478
FINANCIAL SERVICES                                                                     TECHNOLOGY
  Asset Management                                                                       Data Networking and Storage
  Jason Weyeneth, CFA                  SVP, Sr. Analyst       (212) 763-8293              Alex Kurtz                           Mng. Dir                (415) 402-6015
                                                                                          Amelia Harris                        Analyst                 (415) 402-6018
  Banks & Thrifts
  Matthew Kelley                       Mng. Dir.              (207) 699-5800              Financial Technology
  Matthew Breese                       Analyst                (207) 699-5800              Greg Smith                           Mng. Dir                (818) 615-2029
  Brett Rabatin, CFA                   Mng. Dir.              (615) 760-1466              Jennifer Dugan                       Analyst                 (415) 402-6051
  Kenneth James                        VP, Sr. Analyst        (615) 760-1474
  Peyton Green                         Mng. Dir.              (877) 492-2663              Hardware, Mobile Devices, IT Supply Chain
  Zachary Wollam                       VP, Analyst            (615) 760-1468              Shaw Wu                               SVP, Sr. Analyst       (415) 362-7431
  Todd L. Hagerman                     Mng. Dir.              (212) 338-4744
  Robert Greene                        VP, Analyst            (212) 763-8296              LED Supply Chain
                                                                                          Andrew Huang                         Mng. Dir.               (415) 362-6143
  Life Insurance                                                                          John Shen                            Analyst                 (415) 402-6052
  John M. Nadel                        Mng. Dir.              (212) 338-4717
  Alex Levine                          Analyst                (212) 338-4748              Semiconductors
                                                                                          Vijay Rakesh                         Mng. Dir.               (312) 525-8431
  Mortgage Finance & Specialty Finance
  Henry J. Coffey, Jr., CFA            Mng. Dir.              (615) 760-1472           TRANSPORTATION, SERVICES & EQUIPMENT
  Calvin Hotrum                        Analyst                (615) 760-1476              Jeffrey A. Kauffman                  Mng. Dir.               (212) 338-4765
                                                                                          Sal Vitale                           VP, Sr. Analyst         (212) 338-4766
  Property/Casualty Insurance                                                             Ryan Mueller                         Analyst                 (212) 338-4732
  Dan Farrell                          Mng. Dir.              (212) 338-4782
  Nitin Chhabra, FCAS                  Analyst                (212) 338-4779




Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)

				
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