WisdomTree Receives Wells Notice from SEC Over ESG Funds
By Dean Seal
WisdomTree has been notified that it could face a U.S. Securities and Exchange Commission enforcement action related to its ESG-focused investment strategies.
The asset manager said Tuesday that it has received a Wells Notice from the SEC. The agency's staff have made a preliminary determination that it should take action against WisdomTree for alleged securities violations related to three exchange-traded series of WisdomTree Trust that pursued ESG-focused strategies.
The recommendation could involve a civil injunctive action, or any other action allowed by law, and could seek fines and injunctions, WisdomTree said in a regulatory filing.
The board of trustees for the WisdomTree Trust approved the liquidation of the ESG funds last December, citing persistent lack of investor demand and limited prospects for future asset growth. The liquidations were completed in February.
When they were in operation, the ESG funds had about $119 million in average assets under management.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
August 06, 2024 08:51 ET (12:51 GMT)
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