Related Party Transactions

9 Months Ended

Sep. 30, 2021

17. 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 are 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. WisdomTree 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:


	September 30, 2021		December 31, 2020

Receivable from WTT	$	15,264	$	13,030
Receivable from ManJer Issuers		6,053		11,693
Receivable from WMAI and WTI		2,738		2,125
Receivable from WTCS		—		36

Total	$	24,055	$	26,884

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,

	2021		2020		2021		2020

Advisory services provided to WTT	$	46,386	$	33,767	$	131,364	$	104,757
Advisory services provided to ManJer Issuers (1)		24,759		26,506		75,296		68,945
Advisory services provided to WMAI and WTI		5,255		2,603		13,951		7,145
Advisory services provided to WTAMC		—		—		—		365
Advisory services provided to WTCS		—		152		—		485

Total	$	76,400	$	63,028	$	220,611	$	181,697

(1)	Advisory fees previously reported have been revised due to an immaterial error correction. These revisions had no effect on previously reported net income. See Note 2 for additional information.

The Company also has investments in certain WisdomTree ETFs of approximately $21,180 and $23,932 at September 30, 2021 and December 31, 2020, respectively. Net losses and gains related to trading WisdomTree ETFs during the three months ended September 30, 2021 and 2020 were ($92) and $86, respectively, and during the nine months ended September 30, 2021 and 2020 were $75 and $94, respectively, which are recorded in other losses and gains, net.