Related Party Transactions

9 Months Ended

Sep. 30, 2020

19. Related Party Transactions

The Company’s revenues are derived primarily from investment advisory agreements with related parties. Under these agreements, the Company has licensed to related parties the use of certain of its own indexes for the U.S. and WisdomTree UCITS ETFs. The Board of Trustees and Board of Directors (including certain officers of the Company) of the related parties are primarily responsible for overseeing the management and affairs of the entities for the benefit of their stakeholders and have contracted with the Company to provide for general management and administration services. The Company is also responsible for certain expenses of the related parties, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other

non-distribution

services, excluding extraordinary expenses, taxes and certain other expenses, which is included in fund management and administration on the Company’s Consolidated Statements of Operations. In exchange, the Company receives fees based on a percentage of the ETPs’ average daily net assets. The advisory agreements may be terminated by the related parties upon notice.

The following table summarizes accounts receivable from related parties which are included as a component of accounts receivable on the Company’s Consolidated Balance Sheets:


	September 30, 2020		December 31, 2019
Receivable from WTT	$	11,191	$	14,765
Receivable from ManJer Issuers		10,678		9,036
Receivable from WMAI and WTI		1,497		1,559
Receivable from WTAMC (Note 25)		—		227
Receivable from WTCS		54		80

Total	$	23,420	$	25,667

The allowance for credit losses on accounts receivable from related parties is insignificant when applying historical loss rates, adjusted for current conditions and supportable forecasts, to the amounts outstanding in the table above. Amounts outstanding are all invoiced in arrears, are less than 30 days aged and are collected shortly after the applicable reporting period.

The following table summarizes revenues from advisory services provided to related parties:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Advisory services provided to WTT	$	33,767	$	41,721	$	104,757	$	126,761
Advisory services provided to ManJer Issuers		27,397		21,758		71,325		60,398
Advisory services provided to WMAI and WTI		2,603		2,670		7,145		7,757
Advisory services provided to WTAMC (Note 25)		—		628		365		1,781
Advisory services provided to WTCS		152		229		485		776

Total	$	63,919	$	67,006	$	184,077	$	197,473

The Company also has investments in certain WisdomTree ETFs of approximately $23,906 and $16,886 at September 30, 2020 and December 31, 2019, respectively. Gains related

to trading WisdomTree

ETFs during the three months ended September 30, 2020 and 2019 were $86 and $64, respectively, and during the nine months ended September 30, 2020 and 2019 were $94 and $212, respectively.