Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (September 2019)
28 slides from Westwood's investor presentation, Sep 30, 2019
Slide 1: Investor Relations Presentation
Westwood ® Investing Where It Counts Investor Relations Presentation As of September 30, 2019
Slide 2: Overview
Overview 2 Investing Where It Counts
Slide 3: Westwood | Firm Overview
Westwood | Firm Overview Investment Management Investing Where It Counts Wealth Management Our commitment to investment excellence transcends our investment discipline to encompass the principles that guide our culture and help us evolve our services to meet each client’s unique needs. Overview1 Hig
Slide 4: 2018 | Best Places to Work
2018 | Best Places to Work 4 Investing Where It Counts
Slide 5: High-Conviction Equity and Outcome-Oriented Solutions
Westwood | High-Conviction Equity and Outcome-Oriented Solutions Separately Managed Accounts Mutual Funds UCITS Other Pooled Vehicles U.S. Equity Fixed Income Our Strategies AUM: $15.0B* AllCap Value Custom Solutions AllCap Growth LargeCap Select LargeCap Value SmallCap Value U.S. Equity SMidCap Val
Slide 6: Investment Management | Product Breadth Across the Risk Spectrum
Investment Management | Product Breadth Across the Risk Spectrum Strategic Emerging Alternative Income Global LargeCap Select SmallCap Markets Income Opportunity Convertibles Select Equity SMidCap Value SMidCap Low High Volatility Volatility High Income Flexible LargeCap AllCap Total Return MLP Emer
Slide 7: Westwood | Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 4% 5% 4% 1% Low Volatility Equity Liquid Alternatives Foundations/Endowments Taft-Hartley/Superannuation 4% 3% 28% UCITS Liquid Real Assets (MLPs) Public Funds 40% 13% 7% U.S. Value Equity Emerging Markets Eq
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: Growth Drivers | 2019: Positioned for Long-term Sales Growth
Growth Drivers | 2019 Distribution team build-outs complete and executing on strategy; Strengthening relationships with intermediaries, clients, consultants Positioned for Increased sales activity and new business pipeline; Long-term SmallCap positioned for 2019 wins, SMidCap and Multi-Asset positio
Slide 11: Flexible Fee Approach
Flexible Fee Approach Align with Investors and Provide Greater Flexibility Build a New Brand of Active Management Offer Flexible Pricing Solutions to Meet Client Needs Accelerate Asset Growth Client-centric approach to pricing, offering both competitive fixed fee options and an innovative performanc
Slide 12: Strategy Execution to Scale the Business
Intermediary and Retail | Key Success Drivers of Business Development Strategy Execution to > Scale the Business • Consolidate fund lineup over the next 12 months • Salesforce CRM dashboard and territory build-out with OpportunityHunter analytics • Using SMA and model delivery to accelerate growth a
Slide 13: Westwood | Our Multi-Asset Approach
Westwood | Our Multi-Asset Approach Absolute Return. Total Return. Income Oriented. Total Return Westwood Morningstar Category: 50%-70% Equity Allocation Multi-Asset Income Opportunity Morningstar Category: 30%-50% Equity Allocation High Income Morningstar Category: 15%-30% Equity Allocation Alterna
Slide 14: Wealth Management
Wealth Management 14 Investing Where It Counts
Slide 15: Wealth Management | Service Offering Evolution
Wealth Management | Service Offering Evolution Expanded Trust + RIA offerings 2019+ Banking partnership Holistic digital wealth solution (app) Trust + RIA offerings Private Equity franchise (core & direct) 2018 Custodian referral programs (multiple) Comprehensive CRM (drive referrals) Private Equity
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: Serving Tomorrow's Client
Serving Tomorrow’s Client Delivering the Amazon of Advice The human factor Flexible technology, Digital revolution building-block approach Financial advice Serving tech-savvy Intuitive interface investors with easy Personalized service (Apple) operations Investment acumen Centralized data, multi- De
Slide 18: Wealth Management | Private Bank
Wealth Management | 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, • Boutique space featuring very checking, banking, lending comfortable family meeting space in
Slide 19: Financials | Highlights
Financials | Highlights 19 Investing Where It Counts
Slide 20: 2019 | Highlights
2019 | Highlights Assets Under Management • Total AUM of $15.0 billion and AUA of $266 million at September 30, 2019 “We have been transforming in the • All of our U.S. Value, Multi-Asset and Emerging Markets face of industry headwinds. We teams outperformed their primary benchmarks. have made a ded
Slide 21: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 - QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $92.2 $128.1 $130.8 $121.8 $118.3 $29.2 $109.0 $63.5 $21.1 $19.4 2014 2015 2016 2017 2018 Fee Revenue QTD Fee Revenue YTD Q3 2018 Fee Revenue Q2 2019 Fee Revenue Q3 2019 Fee
Slide 22: 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 23: Appendix
Appendix 23 Investing Where It Counts
Slide 24: Looking Ahead | Technology Investment Cycle
Looking Ahead | Technology Investment Cycle Access to world- Full risk Formal data Multi-asset and Create an Online advice tool A holistic client class security distribution at the management multi-currency operational digital designed to meet experience, protocols as they asset level across program
Slide 25: Long-Term | Shareholder Value Creation
Long-Term | Shareholder Value Creation Annual Dividends Over $190 million of dividends paid out from 2002 to 2018 $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 Quarterly Dividends Special Dividends As of December 31, 2018
Slide 26: 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 27: 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 28: Westwood
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 — Investor Presentation (September 2019) on 6ix