Westwood Holdings Group Inc · NYSE:WHG
Westwood — Stephens Inc. Spring Investment Conference 2008
27 slides from Westwood's conference presentation, Jun 4, 2008
Slide 1: Westwood Holdings Group, Stephens Spring Investment Conference
1 Westwood Holdings Group, Inc. Stephens Inc. Spring Investment Conference June 4, 2008 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward – Looking Statements Statements in this presentation that are not purely historical facts, including statements about our expected future financial position, results of operations or cash flows, as well as other statements including words such as “anticipate,” “believe,” “plan,” “estimate,
Slide 3: Agenda
3 Agenda Page 2 Firm Overview Investment Process & Products Financial Highlights Summary
Slide 4: Firm Overview
4 Firm Overview Well-established asset management firm Clear focus on investment management and client service since 1983 Strong long-term performance Strict adherence to our process has resulted in strong risk-adjusted returns for our clients Growing asset base $7.9 billion in assets under manageme
Slide 5: Westwood History
5 Westwood History Westwood Funds Westwood Management Corp. Acquired by Southwest Securities (SWS) Westwood Trust Westwood Holdings Group, Inc. Registered Investment Advisor Institutional focus 1983 1993 1994 1996 2002 SWS Provided: Capital Autonomy Technology Distribution Distributed by Gabelli Sub
Slide 6: Westwood Value Proposition
6 Westwood Value Proposition Page 5 At our spin-off in 2002 we said we would: Build out our research team Expand our product offerings Deliver excellent performance for our clients Operate the firm in a stockholder-friendly manner Energize our employees Since that time we have: Developed a talented,
Slide 7: Product Distribution
7 Product Distribution Westwood Management Corp. Separately managed portfolios – large institutions Subadvisory Collective funds – large defined contribution marketplace Managed accounts (“SMA”) – select platforms Institutional consultants Account minimum – $25,000,000 Westwood Trust Commingled Fund
Slide 8: Subadvisory
8 Subadvisory Page 7 Subadvisory opportunities – attractive means for enhanced distribution of scalable products – LargeCap, MidCap and 130/30 Access to established distribution channels Generally lower average fee, but high profitability due to low incremental costs Current Westwood subadvisory man
Slide 9: Overview of Investment Process
9 Overview of Investment Process Qualities that Westwood analysts look for in securities: Strong free cash flow characteristics Stable to improving return on equity Improving balance sheet Upside earnings surprise without corresponding change in consensus estimates Portfolio Teams Research Analysts
Slide 10: Peer Group Product Comparisons
10 Peer Group Product Comparisons Trailing 3-Years as of 3/31/08 Past performance is not a guarantee of future results. Performance results are calculated gross of fees . Please see full performance disclosures at end of presentation. LargeCap SMidCap SmallCap AllCap $44 Billion $3 Billion $1 Billio
Slide 11: Peer Group Performance Comparison
11 Peer Group Performance Comparison Source: eVestment Alliance Percentile Ranking as of March 31, 2008 The eVestment Alliance Universes contain the following number of return sets: LargeCap Value Equity (326), Small-MidCap Value Equity (76), SmallCap Value Equity (203), AllCap Value Equity (87), an
Slide 12: Significant Product Capacity Remains
12 Significant Product Capacity Remains Page 11 Note: Table reflects Westwood Management assets under management as of 12/31/07 (including Westwood Trust commingled funds)
Slide 13: Westwood Trust
13 Westwood Trust Consistent asset growth Over 23% compound annual growth rate of assets over the last five years Enhanced BalancedTM Asset allocation model – 7 asset classes managed by Westwood Management 5 asset classes managed by subadvisors Consultative approach Low cost, efficient solution Asse
Slide 14: Mutual Funds
14 Mutual Funds WHG Funds 5 funds advised by Westwood Management WHG LargeCap Value (WHGLX) WHG SMidCap (WHGMX) WHG SmallCap Value (WHGSX) WHG Income Opportunity (WHGIX) WHG Balanced (WHGBX) Not yet rated by Morningstar; 3 year track record milestones: SMidCap & Income Opportunity – Dec. 2008 LargeC
Slide 15: Financial Highlights – 2007
15 Financial Highlights – 2007 Page 14 Record assets under management and financial results in 2007: Year-over-year Metric 2007 Result Increase Assets under management $7.9 billion 33% Revenue $36.3 million 33% GAAP net income $7.9 million 76% Cash earnings $13.3 million 46% GAAP earnings per share
Slide 16: Recent Growth Trends
16 Recent Growth Trends Page 15 AUM Growth Revenue Growth Cash & GAAP EPS Growth Represents annual dividend rate based on current $0.30 quarterly dividend Dividend Growth
Slide 17: Financial Highlights – Q1 2008
17 Financial Highlights – Q1 2008 Page 16 Strong financial results continuing in 2008: Year-over-year Metric Q1 2008 Result Increase Assets under management $7.5 billion 21% Revenue $9.1 million 24% GAAP net income $2.0 million 30% Cash earnings $3.2 million 32% GAAP earnings per share $0.31 24% Cas
Slide 18: 2007 WHG Stock Performance
18 2007 WHG Stock Performance WHG stock provided a 69.9% total return including reinvested dividends Outperformed SNL Asset Manager Index by over 56% Ranked in the 5th percentile for total return performance among NYSE-listed securities Page 17
Slide 19: Near-term Objectives
19 Near-term Objectives Serve clients attentively Generate competitive investment performance Cultivate consultant relationships Leverage referral sources at Westwood Trust – ~75% of new assets from referrals Match manufacturing capability with distribution partners through subadvisory opportunities
Slide 20: Summary
20 Summary Established firm with recognized institutional presence Seasoned competitive products Attractive product pipeline with strong performance; gaining traction in institutional marketplace Private client growth opportunities Employees are stakeholders Opportunity to realize operational levera
Slide 21: Cash to GAAP Reconciliations
21 Cash to GAAP Reconciliations Page 20
Slide 22: Disclosure Information: LargeCap Equity Composite
Disclosure Information PERFORMANCE RESULTS: LARGECAP EQUITY COMPOSITE LARGECAP EQUITY LARGECAP EQUITY January 1, 1995 through March 31, 2008 COMPOSITE RETURNS COMPOSITE RETURNS Reporting Currency: USD Creation Date: January 1994 Gross of Net of Gross of Net of Foes Foes Foos Fees Percentage ANNUALIZ
Slide 23: Disclosure Information: SMidCap Composite
Disclosure Information PERFORMANCE RESULTS: SMIDCAP COMPOSITE January 1, 1998 through March 31, 2008 SMIDCAP EQUITY COMPOSITE RETURNS Reporting Currency: USD Creation Date: July 1997 Gross of Net of Fees Fees ercetage ANNUALIZED RETURNS = oahwue Poeniee CREE an oe ean ia nasa ENE asetin, SS SE, | em
Slide 24: Disclosure Information: SmallCap Value Composite
Disclosure Information PERFORMANCE RESULTS: SMALLCAP VALUE COMPOSITE SMALLCAP VALUE January 1, 2004 through March 31, 2008 COMPOSITE RETURNS Reporting Currency: USD Creation Date: January 2004 Gross of Net of Fees Fees Percentage ANNUALIZED RETURNS Gross Total Assets Percentage of Non-Fee 1 Year (8.
Slide 25: Disclosure Information: AllCap Value Composite
Disclosure Information PERFORMANCE RESULTS: ALLCAP VALUE COMPOSITE ALLCAP VALUE July 1, 2002 through March 31, 2008 COMPOSITE RETURNS _ Reporting Currency: USD Creation Date: August 2002 Gross of Net of Fees Fees ANNUALIZED RETURNS Gross Total Assets Percentage 1 Year (2.8) % G3) % ofFees Russell Nu
Slide 26: Disclosure Information: Balanced Composite
Disclosure Information PERFORMANCE RESULTS: BALANCED COMPOSITE January 1, 1995 through March 31, 2008 Reporting Currency: USD Creation Date: January 1994 Gross of 80% SEF Total Resets Percentage Fees 500/40% Number of atEndof of Firm ‘Total Firm Year _Retum __LBG/C Portfolios Dispersion __Period Ass
Slide 27: Contact: www.westwoodgroup.com
27 www.westwoodgroup.com 200 Crescent Court Suite 1200 Dallas, Texas 75201 (214)756-6900
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