Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (July 2012)
23 slides from Westwood's investor presentation, Jul 23, 2012
Slide 1: 10 Year Anniversary
10 Year Anniversary July 2012 Exhibit 99.1
Slide 2: Create a world class, independent Research Department
Domestic Research Groups Westwood International Consumer/Health Care (CASH) Energy/Materials/Utilities (EMU) Financials/REITs (MONEY) Industrials/Technology (CHIPS) Global Research Long-Term Employee Retention Our Employees - 2012 Our Employees - 2002 • 43 People • Attended schools in 10 states • 2
Slide 3: Develop and Support Multiple Product Investment Strategies
7 16 4 Develop and Support Multiple Product Investment Strategies LargeCap Value Balanced Enhanced Balanced Fixed Income LargeCap Value – SRI REIT SMidCap Value AllCap Value Income Opportunity MLP SmallCap Value MidCap Value Global Strategic Diversification SMidCap Value Plus+ Dividend Growth Emergi
Slide 4: Generate Superior Performance for our Clients
Generate Superior Performance for our Clients 0% 1% 2% 3% 4% 5% 6% 7% LargeCap Value Dividend Growth AllCap Value SMidCap Value Annualized Alpha Generation July 1, – June 30,
Slide 5: Generate Superior Performance for our Clients: Newer Products
Generate Superior Performance for our Clients 0% 1% 2% 3% 4% 5% Income Opportunity MLP SmallCap Value Annualized Alpha Generation of Newer Products Jan ‘03 – June ‘12 Jan ‘03 – June ‘12 Jan ‘04 – June ‘12 Inception – June 30,
Slide 6: Manage our company in the same manner as portfolio companies: Peer Comparison
Westwood Peer Median Manage our company in the same manner as portfolio companies Peer Comparison Generate strong free cash flow High incidence of insider ownership across all levels of the business Shareholder friendly philosophy of sharing excess cash in the form of dividend or stock buybacks Stab
Slide 7: Insider Ownership
Manage our company in the same manner as portfolio companies GAMCO Investors Third Avenue Management LLC BlackRock The Vanguard Group Inc. Dimensional Fund Advisors, Inc. Northern Trust Investments Royce & Associates LLC State Street Global Advisors Directors and employees own 32% of Westwood Shareh
Slide 8: Quarterly Dividend History
Quarterly Dividend History (per share) Excludes special dividends Manage our company in the same manner as portfolio companies Support a growing dividend $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 Q4 Q3 Q2 Q1
Slide 9: Dividend History
Manage our company in the same manner as portfolio companies Dividend History ($ per year) *data as of 6/30/12 • We have paid total dividends of $82 million since we have been public ($12.02/share) • WHG Dividend Yield 4.0% vs. asset management peer group median at 2.6%* $0 $2,000,000 $4,000,000 $6,
Slide 10: Maintain conservative and growing balance sheet
Manage our company in the same manner as portfolio companies $15 $52 13.0% CAGR Debt, $0 Debt, $0 $17 $71 15.7% CAGR $0 $10 $20 $30 $40 $50 $60 $70 $80 6/30/2002 6/30/2012 Cash & Investments Debt Shareholders' Equity Maintain conservative and growing balance sheet
Slide 11: Acquire mutual fund assets opportunistically and private wealth businesses selectively
Philadelphia Fund McCarthy Group Advisors • Timely opportunity to purchase assets to enhance asset growth of Westwood Funds • Attractive, growing market with limited competition • Strong cultural alignment of values • High average account balances • Strong financial operating history • Will benefit
Slide 12: Build high quality businesses: Westwood Funds
2002 2012 Build high quality businesses where demand supports potential for growth $0 $1.5 billion Westwood Funds™ Lineup: Mutual fund assets have grown to 11% of total AUM $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Data as of 6/30/2012 Balanced Fund (WHGBX) Dividend Growth Fund (WHGDX) Shor
Slide 13: Westwood International Advisors
Build high quality businesses where demand supports potential for growth Westwood International Advisors • Consensus view of Global and Emerging markets as more of an attractive growth opportunity for investors vs. developed markets • Plan sponsors continue to re-balance asset allocation models with
Slide 14: Committed to supporting our community with both time and resources
Committed to supporting our community with both time and resources Served 27,300 meals Sponsored and helped build 7 houses
Slide 15: Revenue History
Trailing twelve months $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Create shareholder value and perform well vs. peers and market Revenue History
Slide 16: Market Cap History
Create shareholder value and perform well vs. peers and market Market Cap History $65 $115 $165 $215 $265 $315 $365
Slide 17: Market Cap History vs. broad market
Market Cap History WHG vs. S&P 500 Indexed to 100 at 7/31/02 Create shareholder value and perform well vs. peers and market Market Cap History vs. broad market Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 WHG Market Value (15.7% annual growth) S&P 500 Market Value (3.9% annu
Slide 18: Performance Comparison WHG vs. S&P and Russell
Create shareholder value and perform well vs. peers and market Performance Comparison WHG vs. S&P and Russell Since listing on the NYSE in June 2002, WHG has outperformed both the S&P 500 and the Russell 2000 indices Time Period: 6/02 – All values indexed to 100 Source: FactSet
Slide 19: Total Return Since 2002 WHG Spin-off
Total Return Since 2002 WHG Spin-off *data as of 6/30/12 Create shareholder value and perform well vs. peers and market Create shareholder value together + Artio Global Investors Pzena Investment Mgmt Janus Capital Group Inc. Calamos Asset Management AllianceBernstein Holding LP Federated Investors,
Slide 20: Employees
Employees – 10 years + Susan Byrne Richard Jarvis Patricia Fraze Kellie Stark Brian Casey Randy Root C. J. MacDonald Michelle Neber Jackie Finley Stefanie kennedy Marcie Russmann Kim Calhoun Denise Vermett Sylvia Fry Crystal Leiva Andrea McMahon Rolanda Williams Jean Kenkel Kari Saenz Mark Freeman M
Slide 21: Employees
Employees – 5 years + Graham Wong Todd Williams Porter Montgomery David Spika Scott Lawson Laura Willmann Julie Gerron Michael Wall Ragen Stienke Kara Axley Nicholas Wilwerding Nick English Martha Gummer Clodette Turner Mark Dunbar Joan Bonn Natalie Harrison
Slide 22: Westwood Products
Domestic Equity Strategies SmallCap Value 1/1/04 SMidCap Value * 1/1/02 closed SMidCap Value Plus+ 7/1/10 MidCap Value 10/1/07 LargeCap Value 1/1/87 AllCap Value 7/1/02 Dividend Growth 11/1/93 Specialized Solutions Income Opportunity 1/1/03 LargeCap Value – Socially Responsible Investing 1/1/98 Infr
Slide 23: Westwood Average Fee (Trailing Five Years)
WESTWOOD’ Average Fee (Trailing Five Years) 0.5400% + x 8 a ry 0.5000% - 0.4800% ~ 0.4600% — 0.4400% ~ 7107 20 | toz to | rtozro | rtozed | rtozzo TIOzTO | otoz v0 ot0z €0 | otozzd | ot0z 10 | 6007 vO | 600z 0 | 600270 | 6002 To | g00z rd | g00z €0 | g00zzD | g00z to | 4002" | co0z €0 0.4200% +
Westwood Holdings Group — Investor Presentation (July 2012) on 6ix