UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21864
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WisdomTree Trust
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(Exact name of Registrant as specified in charter)
380 Madison Avenue, 21st Floor New York, NY 10017
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(Address of principal executive offices) (Zip code)
The Corporation Trust Company
1209 Orange Street
Wilmington, DE 19801
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(Name and address of agent for service)
Registrant's telephone number, including area code: (866) 909-9473
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Date of fiscal year end: August 31
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Date of reporting period: May 31, 2008
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Form N-Q is to be used by management investment companies, other than
small business investment companies registered on Form N-5 (ss.ss. 239.24 and
274.5 of this chapter), to file reports with the Commission, not later than 60
days after the close of the first and third fiscal quarters, pursuant to rule
30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The
Commission may use the information provided on Form N-Q in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-Q, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-Q
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. ss. 3507.
Item 1. Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree U.S. Current Income Fund
May 31, 2008
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Principal
Investments Amount Value
------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--68.4%
Banks--35.2%
ANZ National International Ltd.
2.28%, 6/19/08* $ 700,000 $ 699,158
Bank of America Corp.
2.37%, 7/16/08* 700,000 697,880
Bank of Scotland
2.58%, 7/08/08* 700,000 698,094
Intesa Funding LLC
2.33%, 6/20/08* 700,000 699,108
Lloyds TSB Bank
2.25%, 6/05/08* 338,000 337,894
2.29%, 6/09/08* 350,000 349,825
Royal Bank of Scotland
2.45%, 7/14/08* 350,000 348,952
2.53%, 7/18/08* 350,000 348,839
Skandinaviska Enskilda Banken
2.44%, 6/09/08* 350,000 349,813
Societe Generale North America, Inc.
2.30%, 6/16/08* 700,000 699,283
Svenska Handelsbanken, Inc.
2.45%, 7/11/08* 425,000 423,814
UBS Finance LLC
2.50%, 7/08/08* 350,000 349,129
2.43%, 7/21/08* 350,000 348,759
Westpac Banking Corp.
2.45%, 7/09/08* 350,000 349,071
2.43%, 7/17/08* 350,000 348,908
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Total Banks 7,048,527
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Financial--33.2%
ABN AMRO N.A. Finance, Inc.
2.34%, 6/09/08* 350,000 349,821
2.29%, 6/10/08* 350,000 349,777
AIG Funding, Inc.
2.35%, 6/23/08* 700,000 698,949
BNP Paribas Finance, Inc.
2.42%, 7/07/08* 700,000 698,265
CBA Finance
2.25%, 6/06/08* 700,000 699,738
Danske Corp.
2.45%, 7/14/08* 700,000 697,904
Dexia Delaware
2.50%, 7/14/08* 350,000 348,985
ING Funding LLC
2.45%, 7/18/08* 700,000 697,713
Nordea North America
2.37%, 6/09/08* 350,000 349,819
2.50%, 7/09/08* 350,000 349,052
Rabobank USA
2.44%, 7/18/08* 700,000 697,723
Santander Centro Hispanic, Inc.
2.45%, 6/09/08* 350,000 349,812
2.35%, 6/13/08* 350,000 349,703
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Total Financial 6,637,261
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TOTAL COMMERCIAL PAPER
(Cost: $13,686,371) 13,685,788
=============
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree U.S. Current Income Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount Value
------------------------------------------------------------------------------------------------------------
U. S. GOVERNMENT AGENCIES & OBLIGATIONS--31.5%
Sovereign Agency--31.5%
Federal Home Loan Bank
1.93%, 6/02/08*
(Cost: $6,319,667) $ 6,320,000 $ 6,319,333
=============
TOTAL INVESTMENTS IN SECURITIES--99.9%
(Cost: $20,006,038)(a) 20,005,121
Cash and Other Assets in Excess of Liabilities--0.1% 10,155
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NET ASSETS--100.0% $ 20,015,276
=============
* Interest rate shown reflects the discount rate at time of purchase.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree Dreyfus Euro Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
TIME DEPOSITS--48.7%
Banks--48.7%
Barclays PLC
3.92%, 6/04/08 $ 1,471,526 EUR $ 2,286,825
Citibank
3.60%, 6/02/08 1,881,106 EUR 2,923,332
Royal Bank of Scotland PLC
4.00%, 6/04/08 500,000 EUR 777,025
4.05%, 6/04/08 1,000,788 EUR 1,555,274
UBS AG
4.05%, 6/04/08 1,471,550 EUR 2,286,862
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TOTAL TIME DEPOSITS
(Cost: $9,904,658) 9,829,318
=============
FOREIGN GOVERNMENT OBLIGATIONS--39.2%
Sovereign--39.2%
Bundesschatzanweisungen
3.25%, 6/13/08 2,100,000 EUR 3,262,532
Dutch Treasury Certificate
3.93%, 6/30/08* 1,500,000 EUR 2,323,688
French Treasury Bill
3.96%, 6/12/08* 1,500,000 EUR 2,326,831
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TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $7,936,693) 7,913,051
=============
CORPORATE BONDS--11.2%
Banks--4.6%
Bayerische Landesbank
4.00%, 7/23/08 300,000 EUR 465,622
Landwirtschaftliche Rentenbank
3.63%, 9/01/08 300,000 EUR 464,805
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Total Banks 930,427
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Diversified Financial Services--6.6%
Citigroup, Inc.
4.96%, 11/10/08** 250,000 EUR 386,684
Goldman Sachs Group, Inc. (The)
5.08%, 10/21/08** 250,000 EUR 386,638
Japan Bank for International Cooperation
3.25%, 7/29/08 350,000 EUR 542,564
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Total Diversified Financial Services 1,315,886
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TOTAL CORPORATE BONDS
(Cost: $2,242,910) 2,246,313
=============
TOTAL INVESTMENTS IN SECURITIES--99.1%
(Cost: $20,084,261)(a) 19,988,682
Cash, Foreign Currency and Other Assets in Excess of Liabilities--0.9% 186,088
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NET ASSETS--100.0% $ 20,174,770
=============
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree Dreyfus Euro Fund
May 31, 2008
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Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
EUR - Euro
* Interest rate shown reflects the discount rate at time of purchase.
** Floating rate note. Coupon shown is in effect at May 31, 2008. Date
represents the ultimate maturity date.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree Dreyfus Japanese Yen Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
TIME DEPOSITS--40.5%
Banks--40.5%
Barclays PLC
4.50%, 6/06/08 $ 250,019,444 JPY $ 2,368,394
Mizuho International PLC
0.50%, 6/06/08 300,029,167 JPY 2,842,127
UBS AG
0.42%, 6/06/08 300,029,167 JPY 2,842,127
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TOTAL TIME DEPOSITS
(Cost: $8,114,139) 8,052,648
=============
FOREIGN GOVERNMENT OBLIGATIONS--22.8%
Sovereign--22.8%
Japan Financing Bill
0.49%, 6/09/08* 240,000,000 JPY 2,273,209
0.50%, 6/16/08* 240,000,000 JPY 2,272,975
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TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost: $4,621,322) 4,546,184
=============
CORPORATE BONDS--17.1%
Banks--12.3%
Bank Nederlandse Gemeenten
0.80%, 9/22/08 60,000,000 JPY 568,388
Bank of Scotland PLC
0.80%, 10/02/08 40,000,000 JPY 378,723
DEPFA ACS Bank
0.75%, 9/22/08 60,000,000 JPY 568,150
Norddeutsche Landesbank Girozentra
0.45%, 1/19/09 40,000,000 JPY 377,911
Rabobank Nederland NV
0.20%, 6/20/08 60,000,000 JPY 568,205
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Total Banks 2,461,377
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Pharmaceuticals--1.9%
Abbott Japan Co., Ltd.
1.05%, 11/06/08 40,000,000 JPY 378,953
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Sovereign--2.9%
Export Development Canada
0.88%, 9/22/08 60,000,000 JPY 568,660
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TOTAL CORPORATE BONDS
(Cost: $3,463,811) 3,408,990
=============
REPURCHASE AGREEMENTS--19.0%
Banks--19.0%
Royal Bank of Scotland
0.53%, dated 5/30/08
due 6/02/08 repurchase
price $400,017,667
(Collateral - Japan Financing
Bills, 0.00%, 6/09/08-6/16/08;
Japan Government 1.70%, 9/20/17;
aggregate market value plus
accrued interest $8,330,071)
(Cost: $3,842,459) 400,000,000 JPY 3,789,135
=============
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree Dreyfus Japanese Yen Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES--99.4%
(Cost: $20,041,731)(a) $ 19,796,957
Cash, Foreign Currency and Other Assets in Excess of Liabilities--0.6% 119,142
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NET ASSETS--100.0% $ 19,916,099
=============
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
JPY - Japanese Yen
* Interest rate shown reflects the discount rate at time of purchase.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree Dreyfus Brazilian Real Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--66.6%
Banks--35.0%
ANZ National International Ltd.
2.40%, 6/19/08* $ 700,000 $ 699,113
2.62%, 7/07/08* 350,000 349,074
Bank of America Corp.
2.33%, 7/16/08* 525,000 523,428
2.60%, 8/05/08* 700,000 696,654
2.58%, 9/08/08* 350,000 347,361
Bank of Scotland
2.55%, 7/07/08* 350,000 349,083
2.58%, 7/08/08* 175,000 174,523
2.62%, 7/16/08* 700,000 697,657
2.65%, 8/05/08* 350,000 348,327
Intesa Funding LLC
2.32%, 6/20/08* 875,000 873,869
2.52%, 7/16/08* 700,000 697,746
Lloyds TSB Bank
2.25%, 6/05/08* 175,000 174,945
2.30%, 6/06/08* 700,000 699,732
2.30%, 6/09/08* 700,000 699,598
National Australia Funding
2.58%, 8/04/08* 350,000 348,373
Royal Bank of Scotland
2.35%, 6/02/08* 350,000 349,957
2.45%, 7/14/08* 700,000 697,904
2.45%, 7/15/08* 350,000 348,928
2.53%, 7/30/08* 350,000 348,573
Skandinaviska Enskilda Banken
2.30%, 6/10/08* 1,050,000 1,049,323
Societe Generale North America, Inc.
2.30%, 6/16/08* 175,000 174,821
2.55%, 7/07/08* 189,000 188,505
2.58%, 8/06/08* 875,000 870,800
2.65%, 8/08/08* 350,000 348,264
Svenska Handelsbanken, Inc.
2.50%, 7/07/08* 350,000 349,101
2.47%, 7/10/08* 350,000 349,056
2.45%, 7/11/08* 175,000 174,512
2.40%, 7/15/08* 700,000 697,900
UBS Finance LLC
2.55%, 7/08/08* 1,225,000 1,221,719
2.60%, 7/14/08* 175,000 174,444
2.43%, 7/21/08* 175,000 174,380
Westpac Banking Corp.
2.56%, 8/06/08* 1,050,000 1,044,960
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Total Banks 16,242,630
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Financial--31.6%
ABN AMRO N.A. Finance, Inc.
2.40%, 6/09/08* 175,000 174,895
2.29%, 6/10/08* 200,000 199,873
2.25%, 6/12/08* 1,050,000 1,049,198
BNP Paribas Finance, Inc.
2.55%, 7/07/08* 1,575,000 1,571,045
CBA Finance
2.25%, 6/06/08* 175,000 174,934
2.55%, 8/06/08* 350,000 348,320
2.56%, 8/20/08* 700,000 695,856
2.53%, 8/21/08* 350,000 347,900
Danske Corp.
2.42%, 6/23/08* 350,000 349,472
2.65%, 8/04/08* 700,000 696,745
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (continued)
WisdomTree Dreyfus Brazilian Real Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
Dexia Delaware
2.45%, 6/30/08* $ 350,000 $ 349,300
2.55%, 8/06/08* 200,000 199,040
2.61%, 8/21/08* 1,000,000 994,000
General Electric Capital Corp.
2.35%, 8/04/08* 1,400,000 1,394,260
ING Funding LLC
2.42%, 7/01/08* 175,000 174,635
2.50%, 7/07/08* 175,000 174,550
2.45%, 7/18/08* 175,000 174,428
2.55%, 8/07/08* 1,050,000 1,044,876
Nordea North America
2.30%, 6/05/08* 700,000 699,774
2.35%, 6/09/08* 700,000 699,589
2.50%, 7/09/08* 175,000 174,526
Rabobank USA
2.45%, 7/18/08* 1,400,000 1,395,443
Santander Centro Hispanic, Inc.
2.32%, 6/09/08* 350,000 349,797
2.35%, 6/13/08* 875,000 874,240
2.60%, 8/08/08* 350,000 348,243
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Total Financial 14,654,939
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TOTAL COMMERCIAL PAPER
(Cost: $30,899,769) 30,897,569
=============
U. S. GOVERNMENT AGENCIES & OBLIGATIONS--32.4%
Sovereign Agency--32.4%
Federal Home Loan Bank
1.93%, 6/02/08*
(Cost: $14,999,208) 15,000,000 14,998,417
=============
TOTAL INVESTMENTS IN SECURITIES--99.0%
(Cost: $45,898,977)(a) 45,895,986
Cash and Other Assets in Excess of Liabilities --1.0% 481,196
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NET ASSETS--100.0% $ 46,377,182
=============
* Interest rate shown reflects the discount rate at time of purchase.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree Dreyfus Brazilian Real Fund
May 31, 2008
--------------------------------------------------------------------------------
The following forward foreign currency exchange contracts were open at May 31,
2008:
Settlement Contracts In Exchange Unrealized
Date To Deliver For Gain
--------------------------------------------------------------------------------
7/2/2008 BRL 16,927,710 USD 10,302,488 $ 302,488
7/2/2008 BRL 8,461,376 USD 5,149,735 90,238
7/2/2008 BRL 8,458,873 USD 5,148,212 67,173
7/2/2008 BRL 8,462,753 USD 5,150,573 108,154
8/21/2008 BRL 34,261,076 USD 20,588,508 237,409
-----------
$ 805,462
===========
Currency Legend:
BRL - Brazilian Real
USD - U.S. Dollar
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree Dreyfus Chinese Yuan Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--68.5%
Banks--38.6%
ANZ National International Ltd.
2.50%, 6/05/08* $ 800,000 $ 799,722
2.28%, 6/19/08* 350,000 349,579
2.62%, 7/07/08* 350,000 349,074
Bank of America Corp.
2.54%, 8/05/08* 175,000 174,210
2.55%, 8/05/08* 1,050,000 1,044,981
2.58%, 9/08/08* 350,000 347,361
Bank of Scotland
2.58%, 7/08/08* 1,000,000 997,277
2.65%, 8/05/08* 350,000 348,327
2.60%, 8/07/08* 200,000 199,047
Intesa Funding LLC
2.33%, 6/20/08* 700,000 699,067
2.44%, 7/16/08* 700,000 697,818
Lloyds TSB Bank
2.30%, 6/09/08* 1,400,000 1,399,198
National Australia Funding
2.58%, 8/04/08* 350,000 348,373
2.53%, 8/12/08* 1,050,000 1,044,466
Royal Bank of Scotland
2.35%, 6/02/08* 350,000 349,956
2.50%, 7/15/08* 700,000 697,813
2.53%, 7/18/08* 350,000 348,819
2.53%, 7/30/08* 525,000 522,860
Skandinaviska Enskilda Banken
2.44%, 6/09/08* 350,000 349,786
2.45%, 6/10/08* 350,000 349,770
Societe Generale North America, Inc.
2.50%, 6/09/08* 700,000 699,563
2.30%, 6/16/08* 350,000 349,642
2.45%, 6/16/08* 300,000 299,714
2.65%, 8/08/08* 350,000 348,264
Svenska Handelsbanken, Inc.
2.47%, 7/10/08* 350,000 349,056
2.42%, 7/11/08* 1,225,000 1,221,788
UBS Finance LLC
2.55%, 7/08/08* 1,400,000 1,396,267
Westpac Banking Corp.
2.43%, 7/17/08* 350,000 348,890
2.53%, 8/06/08* 1,050,000 1,044,960
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Total Banks 17,475,648
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Financial--29.9%
ABN AMRO N.A. Finance, Inc.
2.34%, 6/09/08* 350,000 349,795
2.45%, 6/12/08* 350,000 349,723
2.40%, 6/23/08* 875,000 873,682
AIG Funding, Inc.
2.35%, 6/23/08* 700,000 698,949
BNP Paribas Finance, Inc.
2.42%, 7/07/08* 700,000 698,212
2.54%, 8/01/08* 875,000 871,172
CBA Finance
2.45%, 7/14/08* 700,000 697,904
2.55%, 8/06/08* 350,000 348,320
2.58%, 8/19/08* 350,000 347,956
2.58%, 8/29/08* 175,000 173,896
Danske Corp.
2.42%, 6/23/08* 350,000 349,472
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree Dreyfus Chinese Yuan Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
Dexia Delaware
2.45%, 6/30/08* $ 350,000 $ 349,300
2.50%, 7/14/08* 350,000 348,931
2.55%, 8/06/08* 700,000 696,640
General Electric Capital Corp.
2.30%, 8/04/08* 815,000 811,693
ING Funding LLC
2.43%, 7/21/08* 700,000 697,590
2.49%, 7/29/08* 175,000 174,310
2.54%, 8/07/08* 350,000 348,292
2.57%, 8/15/08* 350,000 348,072
JP Morgan Chase & Co.
2.35%, 8/04/08* 200,000 199,178
Nordea North America
2.42%, 6/05/08* 350,000 349,887
2.37%, 6/09/08* 350,000 349,793
2.42%, 7/09/08* 700,000 698,165
Rabobank USA
2.40%, 7/18/08* 1,000,000 996,800
Santander Centro Hispanic, Inc.
2.35%, 6/09/08* 1,100,000 1,099,344
2.60%, 8/08/08* 350,000 348,243
-------------
Total Financial 13,575,319
-------------
TOTAL COMMERCIAL PAPER
(Cost: $31,053,282) 31,050,967
=============
U.S. GOVERNMENT AGENCIES & OBLIGATIONS --28.5%
Sovereign Agency-28.5%
Federal Home Loan Bank
1.93%, 6/02/08*
(Cost: $12,899,319) 12,900,000 12,898,639
=============
TOTAL INVESTMENTS IN SECURITIES --97.0%
(Cost: $43,952,601)(a) 43,949,606
Cash and Other Assets in Excess of Liabilities--3.0% 1,343,446
-------------
NET ASSETS--100.0% $ 45,293,052
=============
* Interest rate shown reflects the discount rate at time of purchase.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
The following forward foreign currency exchange contracts were open at May 31,
2008:
Settlement Contracts In Exchange Unrealized
Date To Deliver For Gain(Loss)
--------------------------------------------------------------------------------
6/20/08 CNY 69,800,000 USD 10,060,109 $ 51,506
7/14/08 CNY 69,660,000 USD 10,063,915 63,915
7/14/08 CNY 34,841,727 USD 5,033,652 (15,874)
7/14/08 CNY 69,683,454 USD 10,067,303 (28,822)
7/14/08 CNY 34,841,727 USD 5,033,652 (12,218)
7/14/08 CNY 34,839,733 USD 5,033,364 (1,280)
--------------------------------------------------------------------------------
$ 57,227
===========
Currency Legend:
CNY - Chinese Yuan (Renminbi)
USD - U.S. Dollar
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)
WisdomTree Dreyfus Indian Rupee Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Principal
Investments Amount U.S. $ Value
------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--70.3%
Banks--42.2%
ANZ National International Ltd.
2.62%, 7/07/08* $ 350,000 $ 349,074
Bank of America Corp.
2.58%, 9/08/08* 350,000 347,361
Bank of Scotland
2.65%, 8/05/08* 350,000 348,327
Lloyds TSB Bank
2.35%, 6/09/08* 350,000 349,802
National Australia Funding
2.58%, 8/04/08* 350,000 348,373
Royal Bank of Scotland
2.35%, 6/02/08* 350,000 349,956
2.53%, 7/30/08* 350,000 348,573
Skandinaviska Enskilda Banken
2.45%, 6/10/08* 350,000 349,770
Societe Generale North America, Inc.
2.65%, 8/08/08* 350,000 348,264
Svenska Handelsbanken, Inc.
2.47%, 7/10/08* 350,000 349,056
UBS Finance LLC
2.55%, 7/08/08* 350,000 349,075
Westpac Banking Corp.
2.55%, 8/06/08* 350,000 348,320
-------------
Total Banks 4,185,951
-------------
Financial--28.1%
ABN AMRO N.A. Finance, Inc.
2.45%, 6/12/08* 350,000 349,723
CBA Finance
2.55%, 8/06/08* 350,000 348,320
Danske Corp.
2.42%, 6/23/08* 350,000 349,472
Dexia Delaware
2.45%, 6/30/08* 350,000 349,300
General Electric Capital Corp.
2.30%, 8/04/08* 350,000 348,565
ING Funding LLC
2.54%, 8/07/08* 350,000 348,292
Nordea North America
2.42%, 6/05/08* 350,000 349,887
Santander Centro Hispanic, Inc.
2.60%, 8/08/08* 350,000 348,243
-------------
Total Financial 2,791,802
-------------
TOTAL COMMERCIAL PAPER
(Cost: $6,978,230) 6,977,753
=============
U. S. GOVERNMENT AGENCIES & OBLIGATIONS--34.1%
Sovereign Agency--34.1%
Federal Home Loan Bank
1.93%, 6/02/08*
(Cost: $3,379,822) 3,380,000 3,379,643
=============
See Notes to Schedule of Investments.
Schedule of Investments (unaudited) (concluded)
WisdomTree Dreyfus Indian Rupee Fund
May 31, 2008
------------------------------------------------------------------------------------------------------------
Investments U.S. $ Value
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES--104.4%
(Cost: $10,358,052)(a) $ 10,357,396
Liabilities in Excess of Cash and Other Assets--(4.4)% (436,139)
-------------
NET ASSETS--100.0% $ 9,921,257
=============
* Interest rate shown reflects the discount rate at time of purchase.
(a) Aggregate cost for Federal income tax purposes is substantially the same as
for book purposes.
The following forward currency exchange contracts were open at May 31, 2008:
Settlement Contracts In Exchange Unrealized
Date To Deliver For Loss
--------------------------------------------------------------------------------
7/14/08 INR 421,800,000 USD 9,911,729 $ (88,271)
============
Currency Legend:
INR - Indian Rupee
USD - U. S. Dollar
See Notes to Schedule of Investments.
Notes to Schedule of Investments (unaudited)
1. ORGANIZATION
WisdomTree Trust (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company.
The Trust was established as a Delaware statutory trust pursuant to a Trust
Instrument dated December 15, 2005. As of May 31, 2008, the Trust offered 46
investment funds (each a "Fund", collectively, the "Funds"). Each Fund is
considered to be non-diversified. The Funds commenced operations on May 14,
2008, with the exception of the WisdomTree U.S. Current Income Fund and the
WisdomTree Dreyfus Japanese Yen Fund that commenced operations on May 20, 2008
and May 21, 2008, respectively.
These notes relate to the schedule of investments for WisdomTree U.S. Current
Income Fund ("U.S. Current Income Fund"), WisdomTree Dreyfus Euro Fund ("Dreyfus
Euro Fund"), WisdomTree Dreyfus Japanese Yen Fund ("Dreyfus Japanese Yen Fund"),
WisdomTree Dreyfus Brazilian Real Fund ("Dreyfus Brazilian Real Fund"),
WisdomTree Dreyfus Chinese Yuan Fund ("Dreyfus Chinese Yuan Fund") and
WisdomTree Dreyfus Indian Rupee Fund ("Dreyfus Indian Rupee Fund").
The preparation of financial statements in conformity with U.S. Generally
Accepted Accounting Principles ("U.S. GAAP"), requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
the net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Investment Valuation - The Net Asset Value ("NAV") of each Fund's shares is
calculated each day the national securities exchanges are open for trading as of
the close of regular trading on the New York Stock Exchange, generally 4:00 p.m.
New York time. NAV per share is calculated by dividing a Fund's net assets by
the number of Fund shares outstanding. Securities traded on any recognized U.S.
or non-U.S. exchange are valued at the last sale price or official closing price
on the exchange or system on which they are principally traded. Events occurring
after the close of trading on non-U.S. exchanges may result in adjustments to
the valuation of foreign securities to more accurately reflect their fair value
as of the close of regular trading on the New York Stock Exchange. The Fund may
rely on an independent fair valuation service in adjusting the valuations of
foreign securities. Unlisted equity securities are valued at the last quoted
sale price or, if no sale price is available, as the mean between the most
recently quoted bid and asked prices. The value of certain portfolio debt
securities, other than temporary investments in short-term securities, takes
into account various factors affecting market value, including yields and prices
of comparable securities, indications as to value from dealers and general
market conditions. Securities for which market quotations are not readily
available are valued at fair value as determined by management and in accordance
with procedures approved by the Board of Trustees. Short-term securities with 60
days or less remaining to maturity are valued using the amortized cost method,
which approximates current market value.
(b) Investment Transactions and Investment Income - Investment transactions are
recorded as of the date that the securities are purchased or sold (trade date).
Interest income is accrued daily.
(c) Foreign Currency Translation - The accounting records of the Funds are
maintained in U.S. dollars with the exception of Dreyfus Euro Fund and Dreyfus
Japanese Yen Fund, which are in Euro and Yen, respectively. Foreign currencies,
as well as investment securities and other assets and liabilities denominated in
foreign currencies, are translated into U.S. dollars using exchange rates deemed
appropriate by the investment adviser.
(d) Repurchase Agreements - A Fund's custodian or designated sub-custodians, as
the case may be under tri-party repurchase agreements, takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, a Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligations. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceedings.
(e) Forward Contracts - Each Fund may enter into forward contracts to facilitate
settlement of foreign currency denominated portfolio transactions or to manage
its foreign currency exposure or to sell, for a fixed amount of U.S. dollars or
other currency, the amount of foreign currency approximating the value of some
or all of its holdings denominated in such foreign currency or an amount of
foreign currency other than the currency in which the securities to be hedged
are denominated approximating the value of some or all of its holdings to be
hedged.
(f) Short-Term Investments - Each Fund may invest a portion of its assets in
high-quality money market instruments on an ongoing basis to provide liquidity
or for other reasons. The instruments in which a Fund may invest include
short-term obligations issued by the U.S. Government, negotiable certificates of
deposit ("CDs"), fixed time deposits and bankers' acceptances of U.S. and
foreign banks and similar institutions, commercial papers, repurchase agreements
and money market funds. CDs are short-term negotiable obligations of commercial
banks. Time deposits are non-negotiable deposits maintained in banking
institutions for specified periods of time at stated interest rates. Banker's
acceptances are time drafts drawn on commercial banks by borrowers, usually in
connection with international transactions.
(g) Dividends and Distributions to Shareholders - It is each Fund's policy to
comply with all requirements of the Internal Revenue Code of 1986, as amended
(the "Code"). Each Fund intends to qualify for and to elect treatment as a
separate Regulated Investment Company ("RIC") under Subchapter M of the Code. It
is the policy of each Fund to pay out dividends, if any, to investors at least
annually. Taxable net realized gains from investment transactions, reduced by
capital loss carryforwards, if any, are declared and distributed to shareholders
at least annually. The Funds may occasionally be required to make supplemental
distributions at some other time during the year. The Trust reserves the right
to declare special distributions if, in its reasonable discretion, such action
is necessary or advisable to preserve the status of each Fund as a RIC or to
avoid imposition of income or excise taxes on undistributed income. Dividends
and distributions to shareholders are recorded on the ex-dividend date. The
amount of dividends and distributions from net investment income and net
realized capital gains are determined in accordance with the requirements of the
Code and the U.S. Treasry regulations, which may differ from U.S. GAAP. These
book/tax differences are either considered temporary or permanent in nature. To
the extent these differences are permanent in nature, such amounts are
reclassified within the components of net assets based on their Federal tax
basis treatment; temporary differences do not require reclassification.
Dividends and distributions that exceed earnings and profit for tax purposes,
are reported for tax purposes as a return of capital to the extent of a
shareholder's tax basis, and thereafter as capital gain.
The Funds adopted the provisions of Financial Accounting Standards Board
("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN
48"). This interpretation prescribes a minimum threshold for financial statement
recognition of the benefit of a tax position taken or expected to be taken in a
tax return. Foreign taxes are provided for based on each Fund's understanding of
the tax rules and rates that exist in the foreign markets in which it invests.
Taxes are accrued and applied to net investment income, net realized capital
gains and net unrealized appreciation, as applicable, as the income is earned or
capital gains are recorded. If applicable, the Funds will recognize interest
accrued related to unrecognized tax benefits in interest expense and penalties
in "Other" expenses on the Statement of Operations. Management has evaluated the
application of FIN 48 to the Funds, and has determined that there is no impact
resulting from the adoption of this interpretation on the Funds' financial
statements.
3. Federal Income Taxes
At May 31, 2008, the cost of investments for Federal income tax purposes was
substantially the same as for book purposes, as indicated below:
--------------------------------------------------------------------------------------
Gross Gross
Unrealized Unrealized Net Unrealized
Fund Tax Cost Appreciation Depreciation Depreciation
--------------------------------------------------------------------------------------
U.S. Current Income Fund $20,006,038 $ 77 $ (994) $ (917)
--------------------------------------------------------------------------------------
Dreyfus Euro Fund 20,084,261 9,434 (105,013) (95,579)
--------------------------------------------------------------------------------------
Dreyfus Japanese Yen Fund 20,041,731 -- (244,774) (244,774)
--------------------------------------------------------------------------------------
Dreyfus Brazilian Real Fund 45,898,977 105 (3,096) (2,991)
--------------------------------------------------------------------------------------
Dreyfus Chinese Yuan Fund 43,952,601 18 (3,013) (2,995)
--------------------------------------------------------------------------------------
Dreyfus Indian Rupee Fund 10,358,052 17 (673) (656)
--------------------------------------------------------------------------------------
4. FAS 157
On September 15, 2006, the FASB released Statement of Financial Accounting
Standards No. 157, Fair Value Measurements ("FAS 157") which provides enhanced
guidance for measuring fair value. The standard requires companies to provide
expanded information about the assets and liabilities measured at fair value and
the potential effect of these fair valuations on an entity's financial
performance. The standard does not expand the use of fair value in any new
circumstances, but provides clarification on acceptable fair valuation methods
and applications. Adoption of FAS 157 is required for fiscal years beginning
after November 15, 2007 and interim periods within those fiscal years. At this
time, management does not believe the adoption of FAS 157 will impact the
amounts reported in the financial statements; however, additional disclosures
will be required about the inputs used to develop the measurements of fair value
and the effect of certain measurements reported in the Statements of Operations
for the fiscal period.
5. New Accounting Pronouncement
On March 19, 2008, the FASB released Statement of Financial Accounting Standards
No. 161, Disclosures about Derivative Instruments and Hedging Activities ("FAS
161"). FAS 161 requires qualitative disclosures about objectives and strategies
for using derivatives, quantitative disclosures about fair value amounts of
gains and losses on derivative instruments, and disclosures about
credit-risk-related contingent features in derivative agreements. The
application of FAS 161 is required for fiscal years beginning after November 15,
2008 and interim periods within those fiscal years. At this time, management is
evaluating the implications of FAS 161 and its impact on the financial
statements has not yet been determined.
Item 2. Controls and Procedures.
(a) Based on their evaluation of the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3 (c) under the Investment
Company Act of 1940) as of a date within 90 days prior to the filing
date of this report, the President and Treasurer of the Registrant
have concluded that such disclosure controls and procedures are
reasonably designed and effective to ensure that material
information relating to the Registrant, including its consolidated
subsidiaries, is made know to them by others within those entities.
(b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3 (d) under the
Investment Company Act of 1940) that occurred during the
Registrant's last fiscal quarter that have materially affected, or
are reasonably likely to materially affect, the Registrant's
internal control over financial reporting.
Item 3. Exhibits.
(i) Certification of each principal executive officer and principal
financial officer of the Registrant as required by Rule 30a-2 (a)
under the Investment Company Act of 1940 (17 CFR 270.30a-2) is
attached hereto as a part of EX-99. CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) WisdomTree Trust
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By: /s/ Jonathan L. Steinberg
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Jonathan L. Steinberg
President
Date: July 30, 2008
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By: /s/ Amit Muni
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Amit Muni
Treasurer
Date: July 30, 2008
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Jonathan L. Steinberg
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Jonathan L. Steinberg
President
Date: July 30, 2008
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By: /s/ Amit Muni
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Amit Muni
Treasurer
Date: July 30, 2008
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