Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (June 2017)
24 slides from Westwood's investor presentation, Jun 30, 2017
Slide 1: Investor Relations Presentation
Westwood H O L D I N G S G R O U P , I N C © Investing Where It Counts Investor Relations Presentation As of June 30, 2017
Slide 2: Westwood | Firm Overview
Westwood | Firm Overview Our mission is to exceed client expectations through Institutional exceptional performance and ethical conduct. Mutual Funds Private Wealth Multi-Investment Team Structure Employee Ownership Culture Overview1 U.S. Value Employees and directors own equity, Global and Emerging
Slide 3: Business Growth | Revenue and Assets Under Management
Business Growth | Revenue and Assets Under Management Westwood Growth in Revenues and Assets Under Management 140 25 120 20 100 Annual Revenue ($ millions) Quarterly AUM ($ billions) 15 80 60 10 40 5 20 - 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Quarterly AUM Annu
Slide 4: Business Growth | Shareholder Value Creation
Business Growth | Shareholder Value Creation Current Yield 4.2%* Over $155 million paid out in dividends since 2002 WHG Total Shareholder Return Comparison +725.82% Since Inception 900% 800 700 600 500 400 300 200 100 0 Q2 2017 -100% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 5: Business Model Overview | Strategy
Business Model Overview | Strategy Core Focus: Building and maintaining multiple strong investment engines to deliver top-tier performance across asset classes. Talent management, performance management and alignment of Experienced investment compensation structure with strategic initiatives. teams
Slide 6: Core Growth Drivers | The Way Forward
Core Growth Drivers | The Way Forward Growth imperatives are concentrated in 5 key areas: 1 Product development efforts focused on high conviction 2 Continue growing long-tenured relationships with industry- investing, low volatility, multi- leading investment management asset, liquid alternatives a
Slide 7: High-Conviction and Outcome-Oriented Solutions
Westwood | High-Conviction and Outcome-Oriented Solutions Separately Managed Accounts | Mutual Funds | Collective Funds | UCITS U.S. VALUE EQUITY MULTI-ASSET LIQUID REAL ASSETS LargeCap Value Income Opportunity MLP Infrastructure Renewal Concentrated LargeCap Value Worldwide Income Opportunity MLP O
Slide 8: Core Growth Theme | Product Development 2013-2017
Core Growth Theme | Product Development 2013-2017 High- Multi-Asset Low Liquid Liquid Conviction Volatility Alternatives Real Assets Equity Equity Emerging Worldwide Strategic Global Market Neutral MLP Opportunities Markets SMidCap Income Convertibles Income 1/1/2014 9/1/2013 Opportunity 10/1/2014 1
Slide 9: Core Growth Theme | Product Offerings Across the Risk Spectrum
Core Growth Theme | Product Offerings Across the Risk Spectrum Global Equity Emerging Market Worldwide Concentrated & Markets & Neutral Income Low Volatility LargeCap Select International SMidCap SmallCap Emerging Income Opportunity Equity Value Equity Equity Plus Value Markets Plus Low High Volatil
Slide 10: Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 5% 6% MLPs 37% Foundations/Endowments Taft-Hartley/Superannuation U.S. Value Equity 5% 22% UCITS 25% Global/Emerging Equity Public Funds 9% Sovereign Wealth 19% Multi-Asset 19% 21% 29% Other Institutional
Slide 11: Distribution | Multi-Channel Focus
Distribution | Multi-Channel Focus Institutional AUM Non-U.S. Client Assets $16.0 $14.0 25.0% $12.0 AUM ($ billions) 20.0% % of AUM $10.0 $8.0 15.0% $6.0 10.0% $4.0 5.0% $2.0 $0.0 0.0% Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Private Wealth AUM Mutual Funds
Slide 12: Financial | Highlights
Financial | Highlights
Slide 13: Q2 2017 | Highlights
Q2 2017 | Highlights • Total AUM of $22.6 billion and AUA of $1.0 billion at Assets Under Management June 30, 2017 • AUM in our global and emerging markets strategies reached a record $5.1 billion. Investment Strategies • All U.S. Value strategies provided strong absolute and relative returns, beati
Slide 14: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 – QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $128.1 $121.9 $59.6 $64 $109.0 $88.4 $72.9 $31.6 $30.3 $32.4 2012 2013 2014 2015 2016 Fee Revenue QTD Fee Revenue YTD Q1 2017 Fee Revenue 2016 Fee Revenue 2017 Fee Revenue Ea
Slide 15: Shareholder Value Creation | Capital Management
Shareholder Value Creation | Capital Management Annual Dividends Over $145 million of dividends paid out from 2002 to 2016 $25 $20 $ in millions $15 $10 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Quarterly Dividends Special Dividends As of December 31, 2016 15 I
Slide 16: Reconciliation of Net Income to Economic Earnings
Reconciliation of Net Income to Economic Earnings We are providing a performance measure that we refer to as Economic Earnings. Both our management and Board of Directors review Economic Earnings to evaluate our ongoing performance, allocate resources and determine our dividend policy. We also belie
Slide 17: Appendix
Appendix
Slide 18: Is It Time to Short Passive?
Is It Time to Short Passive? Passive vs. Active Over the Past 10 Years Cumulative flows to equity funds ($tn) 2.1 -2.1 Passive Active • $2.1tn inflows to passive equity funds vs. $2.1tn redemptions from active equity funds... • $2.9tn inflows to passive funds (bond + equity) vs. $1.3tn redemptions f
Slide 19: Westwood | Additional Strategic Initiatives
Westwood | Additional Strategic Initiatives Utilize Technology to Improve Work Flows and Data Management -Upgrade Westwood Trust accounting system to provide consistency across offices and scalability for future offices -Third phase of the data architecture program with the primary focus on data gov
Slide 20: Changes to Executive Compensation Program
Westwood | Changes to Executive Compensation Program 2016 Executive Compensation Program Changes • Independent third party compensation consultant engaged • New employment agreement for CEO which includes a three-year term, double-trigger change-in-control and no-gross up provisions for taxes • Stoc
Slide 21: Track Record of Shareholder Value Creation
Westwood | Track Record of Shareholder Value Creation Total Return Since 2002 Westwood Spin-off Diamond Hill Investment Group Inc 6586.25% Virtus Investment Partners Inc 1009.2% Westwood Holdings Group Inc 725.8% Cohen & Steers Inc 437.0% GAMCO Investors Inc 106.6% Federated Investors Inc 65.1% Silv
Slide 22: Forward Looking Statements
Westwood | Forward Looking Statements Statements in this presentation that are not purely historical facts, including, without limitation, statements about our expected future financial position, preliminary estimates, results of operations or cash flows, as well as other statements including, witho
Slide 23: Mutual Fund Disclaimer
Mutual Fund Disclaimer To determine if a mutual fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling 1.8
Slide 24: Westwood
Westwood H O L D I N G S G R O U P , I N C © www.westwoodgroup.com 200 Crescent Court Suite 1200 Dallas, Texas 75201 T. 214.756.6900
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