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Under these agreements, the advisory fee we receive is based on the average market value of the assets in the WisdomTree ETP portfolios we manage.
−Removed: Fluctuations in the value of the ETPs are common and are generated by numerous factors such as market volatility, the overall economy, inflation, changes in investor strategies and sentiment, availability of alternative investment vehicles, government regulations and others.
+Added: Fluctuations in the value of the ETPs are common and are generated by numerous factors such as market volatility, the global economy, inflation, changes in investor strategies and sentiment, availability of alternative investment vehicles, domestic and foreign government regulations, emerging markets developments and others.
Accordingly, changes in any one or a combination of these factors may reduce the value of investment securities and, in turn, the underlying AUM on which our revenues are earned.
2 unchanged sentences
Interest Rate Risk
−Removed: We invest our corporate cash in short-term interest earning assets, primarily money market instruments at a commercial bank, federal agency debt instruments and other securities which totaled $27.4 million and $33.9 million as of December 31, 2018 and December 31, 2019, respectively.
+Added: We invest our corporate cash in short-term interest earning assets, primarily in our WisdomTree ETFs, federal agency debt instruments, money market instruments at a commercial bank and other securities which totaled $33.9 million and $36.0 million as of December 31, 2019 and December 31, 2020, respectively.
We do not anticipate that changes in interest rates will have a material impact on our financial condition, operating results or cash flows.
−Removed: In addition, in connection with the ETFS Acquisition, we obtained a $250.0 million Credit Facility.
−Removed: Interest rate risk is not significant as borrowings under these facilities accrue interest at variable rates (See Note 13 to our Consolidated Financial Statements).
+Added: In addition, our Convertible Notes bear interest at a fix rate of interest of 4.25%.
+Added: Therefore, we have no direct financial statement risk associated with changes in interest rates.
+Added: However, the fair value of the Convertible Notes changes primarily when the market price of our common stock fluctuates or interest rates change.
Exchange Rate Risk
−Removed: Over the last few years, we have expanded our business globally and are subject to currency translation exposure on the results of our non-U.S.
−Removed: operations, primarily in Europe.
+Added: We are subject to currency translation exposure on the results of our non-U.S.
+Added: operations, primarily in the U.K and Europe.
Foreign currency translation risk is the risk that exchange rate gains or losses arise from translating foreign entities’ statements of earnings and balance sheets from functional currency to our reporting currency (the U.S.
1 unchanged sentence
The advisory fees earned on our international listed ETPs are predominantly in U.S.
−Removed: dollars (and also paid in gold ounces, as described below), however, expenses for corporate overhead are generally incurred in British pounds.
+Added: dollars (and also paid in gold ounces, as described below);
+Added: however, expenses for corporate overhead are generally incurred in British pounds.
Currently, we do not enter into derivative financial instruments aimed at offsetting certain exposures in the statement of operations or the balance sheet but may seek to do so in the future.
−Removed: Exchange rate risk associated with the Euro and Canadian dollar is not considered to be significant.
+Added: Exchange rate risk associated with the euro is not considered to be significant.
Commodity Price Risk
Fluctuations in the prices of commodities that are linked to certain of our ETPs could have a material adverse effect on our AUM and revenues.
−Removed: In addition, a portion of the advisory fee revenues we receive on our
−Removed: ETPs backed by gold are paid in gold ounces.
+Added: In addition, a portion of the advisory fee revenues we receive on our ETPs backed by gold are paid in gold ounces.
In addition, we pay gold ounces to satisfy our deferred consideration obligation (See Note 12 to our Consolidated Financial Statements).
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.