Westwood Holdings Group Inc · NYSE:WHG
Westwood — Q2 2020 Earnings Presentation
27 slides from Westwood's earnings presentation, Jul 29, 2020
Slide 1: Investor Relations Presentation
Westwood ® Investing Where It Counts Investor Relations Presentation As of June 30, 2020
Slide 2: Overview
Overview 2 Investing Where It Counts
Slide 3: Firm Overview
Westwood | Investing Where It Counts Investment Management Firm Overview We are a focused investment management boutique offering high- Wealth Management conviction equity and outcome-oriented solutions. Our investment services can address a wide range of investment objectives and challenges for ins
Slide 4: 2019 | Best Places to Work
2019 | Best Places to Work 4 Investing Where It Counts
Slide 5: Westwood | High-Conviction Equity and Outcome-Oriented Solutions
Westwood | High-Conviction Equity and Outcome-Oriented Solutions Separately Managed Accounts Mutual Funds Other Pooled Vehicles U.S. Value Equity Fixed Income Our Strategies AllCap Value Custom Solutions LargeCap Select LargeCap Value SmallCap Value SMidCap Value U.S. Value Equity Fixed Income Emerg
Slide 6: Investment Management | Product Breadth Across the Risk Spectrum
Investment Management | Product Breadth Across the Risk Spectrum Emerging* Alternative Credit Total LargeCap AllCap Select SmallCap Markets Income Opportunities Return Value Value Equity Value SMidCap Low High Volatility Volatility High Income Strategic LargeCap Dividend SMidCap Emerging* Income Opp
Slide 7: Westwood | Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 5% 5% 1% Emerging Markets Equity* Foundations/Endowments Taft-Hartley 12% 33% Public Funds 43% Corporate U.S. Value Equity 50% 49% 2% Multi-Asset/Multi-Solution Custom Solutions Sub-Advisory ASSETS BY ACCOUNT
Slide 8: Investment Management
Investment Management 8 Investing Where It Counts
Slide 9: Long-Term | Strategic Focus
Long-Term | Strategic Focus Performance Human Capital Sales • Distribution “alpha” focused on Performance differentiating our value proposition from pre-sale to cross-sale, Alpha transcending the performance cycle. Mergers & Product Marketing • Product innovation “alpha” focused on Performance Acqui
Slide 10: Distribution Infrastructure | Build Out and Transformation
Distribution Infrastructure | Build Out and Transformation 2016 Total: 10 Institutional Sales & Service 2017 Total: 15 Institutional +1 Intermediary +1 Marketing & Product Sales & Service Sales Management 2018 Total: 20 Institutional +2 Intermediary +3 Marketing & Product Sales & Service Sales Manag
Slide 11: Flexible Fee Approach
Flexible Fee Approach Aligning with Investors to Provide Greater Flexibility Offering New, Innovative Performance Fee Solutions Based on Deconstructing Alpha and Beta Building a New Brand of Active Management Competitive Fixed Fees Sensible Alpha-Based™ Sensible Zero-Based™ Sensible IR-Based™ 11 Inv
Slide 12: Full Team on the Field | Largest Distribution Team in Westwood History
Full Team on the Field | Largest Distribution Team in Westwood History 12 Investing Where It Counts
Slide 13: Westwood | Our Multi-Asset Approach
Westwood | Our Multi-Asset Approach Absolute Return. Total Return. Income Oriented. Westwood Total Return Multi-Asset Income Opportunity Varying degrees of equity market sensitivity High Income Alternative Income 13 Investing Where It Counts
Slide 14: Wealth Management
Wealth Management 14 Investing Where It Counts
Slide 15: Wealth Management | Ecosystem
Wealth Management | Ecosystem Digital Wrapper Financial Planning Estate Banking / Planning Bill Pay Digital Digital Wrapper Wrapper Alternative Investments Active Money (PE) Management Digital Wrapper 15 Investing Where It Counts
Slide 16: Wealth Management | Digital Platform
Wealth Management | Digital Platform Digital experience, touching all areas of the firm, that captures new and existing capabilities to create a one-stop shop for comprehensive financial management Visionary strategy consisted of understanding our Why, How, and What 1 Why Be the indispensable, holis
Slide 17: Product Alpha | Private Bank
Product Alpha | Private Bank As we continue to focus on delivering services to meet our clients’ needs, we have partnered with a local bank to launch Westwood Private Bank. • Traditional bank services, including checking, savings and lending • Highly personalized service • State-of-the-art digital c
Slide 18: Financials | Highlights
Financials | Highlights 18 Investing Where It Counts
Slide 19: 2020 | Highlights
2020 | Highlights • Total AUM of $11.9 billion and AUA of $222 million at Assets Under Management June 30, 2020 “I am very pleased to report that several of our portfolio strategies • Our Income Opportunity, Enhanced Balanced, SmallCap beat their benchmarks for the Value, Alternative Income, Global
Slide 20: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 – QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $128.1 $121.8 $130.8 $44.1 $118.3 $82.5 $32.0 $21.1 $17.1 $15.0 2015 2016 2017 2018 2019 Fee Revenue QTD Fee Revenue YTD Q2 2019 Fee Revenue Q1 2020 Fee Revenue Q2 2020 Fee R
Slide 21: Reconciliation of Net Income (Loss) to Economic Earnings
Reconciliation of Net Income (Loss) 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 als
Slide 22: Long-Term | Shareholder Value Creation
Long-Term | Shareholder Value Creation Annual Dividends Over $220 million of dividends paid out from 2002 to 2019 $30 $25 $20 $ in millions $15 $10 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Quarterly Dividends Special Dividends As of December 31,
Slide 23: Appendix
Appendix 23 Investing Where It Counts
Slide 24: Technology | Approach
Technology | Approach Access to world- Full risk Formal data Multi-asset and Create an Online advice tool An initial holistic class security distribution at the management multi-currency operational digital designed to meet client experience, protocols as they asset level across program platform tha
Slide 25: 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 26: Westwood | 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 27: Westwood Holdings Group, Inc.
Westwood H O L D I N G S G R O U P , I N C © westwoodgroup.com 200 Crescent Court, Suite 1200 Dallas, Texas 75201 T. 214.756.6900
Westwood Holdings Group — Q2 2020 Earnings Presentation on 6ix