The Bank of New York Appointed Servicer and Sub-Advisor for WisdomTree Family of Fundamentally-Weighted Dividend ETFs
NEW YORK, July 13, 2006 -- The Bank of New York, a global leader in securities servicing and asset management, has been appointed servicer and sub-advisor for the WisdomTree Exchange Traded Funds (ETFs), the first family of ETFs based upon fundamentally-weighted dividend indices. The Bank will provide worldwide custody, accounting, fund administration and transfer agency services, as well as serve as sub-advisor for each of the first 20 WisdomTree ETFs.
The WisdomTree indexes are designed to provide investors with broad market exposure across major market capitalizations, both domestically and internationally. Eighteen of the indices are weighted based on the total cash dividends companies pay; two are based on dividend yield. This methodology has allowed WisdomTree Investments to create a global index family that scales for the size of the firm paying the dividend.
Joseph Keenan, managing director and head of U.S. fund services sales at The Bank of New York, said, “With our experience servicing and advising the ETF industry, we are well-positioned to partner with WisdomTree and to help bring its innovative new products to market. WisdomTree’s new family of fundamentally-weighted dividend ETFs represents the next phase in the evolution of the industry, which we will ably support through our unmatched global custody and fund administration infrastructure.”
Through BNY Asset Management, the asset management arm of the firm, the Bank will serve as sub-advisor to the funds and perform the day-to-day portfolio management functions.
“BNY Asset Management’s expertise and innovation in index fund management and WisdomTree’s unique approach to index composition provides a powerful offering to the ETF market,” said Margo Cook, executive vice president and head of institutional asset management at BNY Asset Management. “Based on historical research, there is convincing evidence that fundamentally-weighted dividend indexes have the potential to outperform comparable market cap-weighted indexes, both domestically and internationally, and we are excited to partner with WisdomTree to bring this strategy to investors.”
WisdomTree Investment, Inc (WSDT.PK) is a publicly traded company specializing in the creation of proprietary stock indices.
The Bank of New York’s Global Fund Services division delivers a comprehensive and flexible range of services to a wide range of fund structures around the world, including mutual funds, exchange-traded funds, hedge funds and unit investment trusts. Dedicated experts are located worldwide, including Bermuda, Brussels, Cayman, Dublin, Florida, Jersey/Guernsey/Isle of Man, London, Luxembourg, New York and Singapore.
BNY Asset Management offers corporations, public funds, Taft/Hartley plans, nonprofit organizations and high net-worth individuals and families a broad range of equity, fixed-income and alternative investment products. With more than $113 billion in assets under management as of March 31, 2006, BNY Asset Management is one of the largest investment managers in the world.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and private banking. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
The Bank of New York provides no advice nor recommendation or endorsement with respect to any company or security. Nothing herein shall be deemed to constitute an offer or solicitation of an offer to buy or sell securities.
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