Category: Open Ended Investment Company
The Fund seeks to track the price and yield performance, before fees and expenses of the WisdomTree Europe Equity Income Index (the “Index”). The Index is rule-based and a fundamentally weighted and is comprised of the highest dividend yielding common stocks selected from the WisdomTree International Equity Index (the “Parent Index”) based on a composite risk score screening ("Composite Risk Score") which is made up of three factors (value, quality and momentum) each carrying an equal weighting Companies within the Parent Index are ranked by dividend yield and Composite Risk Score, respectively. Securities ranking in the highest 30% by dividend yield and which do not fall in the bottom 20% of the Composite Risk Score are selected for inclusion within the Index. The weight of each component company in the Index is calculated based on the aggregate cash dividends it is projected to pay in the coming year (the "Dividend Stream") and its Composite Risk Score. The component companies with the top/middle/bottom 1/3 Composite Risk Scores will have their Dividend Stream adjusted by 1.5x, 1.0x and 0.5x respectively (the "Adjusted Dividend Stream"). Component companies are then weighted annually in the Index to reflect their proportionate share of the Adjusted Dividend Stream. Companies projected to pay more dividends and have higher Composite Risk Scores are more heavily weighted. To be included in the Index, securities must meet minimum market capitalisation and liquidity requirements, have paid dividends over the prior annual cycle and be listed on a stock exchange in one of the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland or the United Kingdom. The Index is "reconstituted" annually on the basis of the above eligibility and weighting methodology. In order to achieve its objective, the Fund will employ a "passive management" (or indexing) investment approach and will invest in a portfolio of equity securities that so far as possible and practicable consists of a representative sample of the component securities of the Index. As it may be difficult, expensive or otherwise inefficient to purchase all the securities in the Index, the Fund may also hold shares or other securities which produce a similar investment return to securities in the Index or may invest in collective investment schemes. The Fund may enter into repurchase/reverse repurchase agreements and stock lending arrangements solely for the purposes of efficient portfolio management, subject to the conditions and within the limits set out in the prospectus for WisdomTree Issuer ICAV (the “Prospectus”). Shares of the Fund (“Shares”) are listed on one or more stock exchanges. Typically, only Authorised Participants (i.e. brokers) can purchase Shares from or sell Shares back to the Fund. Other investors can purchase and sell Shares on exchange on each day the relevant stock exchange is open.