Related Party Transactions

12 Months Ended

Dec. 31, 2020

20. 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. WisdomTree ETFs 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. A majority of the independent members of the Board of Trustees are required to annually approve the advisory agreements of the U.S. ETFs and these agreements may be terminated by the Board of Trustees 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:


	December 31,
	2020		2019
Receivable from WTT	$	13,030	$	14,765
Receivable from ManJer Issuers		11,693		9,036
Receivable from WMAI and WTI		2,125		1,559
Receivable from WTCS		36		80
Receivable from WTAMC (Note 3)		—		227

Total	$	26,884	$	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:


	Years Ended December 31,
	2020		2019		2018
Advisory services provided to WTT	$	141,079	$	169,483	$	203,031
Advisory services provided to ManJer Issuers		97,986		82,224		54,601
Advisory services provided to WMAI and WTI		10,124		10,499		10,448
Advisory services provided to WTCS		628		1,006		1,267
Advisory services provided to WTAMC		365		2,440		1,757

Total	$	250,182	$	265,652	$	271,104