Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (March 2019)
37 slides from Westwood's investor presentation, Mar 31, 2019
Slide 1: Investor Relations Presentation
Westwood ® Investing Where It Counts Investor Relations Presentation As of March 31, 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: Westwood | High-Conviction Equity and Outcome-Oriented Solutions
Westwood | High-Conviction Equity and Outcome-Oriented Solutions Separately Managed Accounts Commingled Funds Mutual Funds UCITS U.S. Equity Fixed Income Our Strategies AUM: $16.8B* AllCap Value Opportunistic High Yield AllCap Growth Short Duration High Yield LargeCap Select Custom Solutions LargeCa
Slide 6: Investment Management | Product Breadth Across the Risk Spectrum
Investment Management | Product Breadth Across the Risk Spectrum Market Worldwide Emerging Flexible Neutral Income LargeCap Select SmallCap Markets Income Income Opportunity Select Equity SMidCap Value SMidCap Low High Volatility Volatility Income Strategic LargeCap AllCap SMidCap MLP Emerging Oppor
Slide 7: Westwood | Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 4% 8% 2% Low Volatility Equity Liquid Alternatives Foundations/Endowments Taft-Hartley/Superannuation 3% 3% 25% Liquid Real Assets (MLPs) UCITS Public Funds 39% 13% 6% U.S. Value Equity Emerging Markets Eq
Slide 8: Strategic Focus | Executive Overview
Strategic Focus | Executive Overview 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 performance cycle. Mergers & Product Marketing • Product innovation “alpha” focused on Performance Acquisitio
Slide 10: Growth Drivers | 2019
Growth Drivers | 2019 2019 growth objectives are highly focused on sales execution across our high-conviction equity and outcome-oriented investment solutions. Product Client Sales Sales Innovation Digital For Life • Small Cap Value • Expand multi-asset • Enhance Automation / • Shift from a pure pro
Slide 11: Investment Management | Institutional
Investment Management | Institutional 11 Investing Where It Counts
Slide 12: Institutional Sales and Service | 2018 Accomplishments
Institutional Sales and Service | 2018 Accomplishments Distribution Team alignment to improve external focus on sales and client engagement Team Restructuring Improvements • Hired new Head of Institutional Sales • Moved to a pro-active sales activity and client engagement strategy – direct prospect
Slide 13: Institutional | Path to Success for Sales and Service
Institutional | Path to Success for Sales and Service Alignment of investment franchises to be commercially competitive – U.S. Value, Emerging Markets Equity and Multi-Asset • Successfully launch Sensible Fees™ platform in conjunction with LargeCap Select • Product rationalization to ensure focus on
Slide 14: LargeCap Select | An Innovative Model
LargeCap Select | An Innovative Model Opportunity to build a new brand of active investing Level the playing field vs. the Indexers. Stand with our investors with high conviction and share risk. Create demand. Be the catalyst. Win Big. 14 Investing Where It Counts
Slide 15: Our Philosophy | Sensible Fees
Our Philosophy | Sensible Fees™ IR Changing the Alpha-Based Risk-Based probability of Fees Fees winning for active investors Our innovative, risk-based Combines the low fees of passive Our risk-based approach to fees is alignment fees are designed to management with a compensation unparalleled in th
Slide 16: Investment Management | Intermediary and Retail
Investment Management | Intermediary and Retail 16 Investing Where It Counts
Slide 17: Strategic Focus | Accelerate Intermediary
Strategic Focus | Accelerate Intermediary We are taking a new, more scientific approach to intermediary Data Platform Insights Sales distribution to drive inflows. • Hired a new Head of Intermediary Sales • Expand and target our geographic approach and Digital Territory focus coverage using defined
Slide 18: Intermediary and Retail | Key Success Drivers of Business Development
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 buildout with OpportunityHunter analytics • Use SMA and model delivery to accelerate growth and
Slide 19: Intermediary and Retail | Future State Multi-Asset Fund Continuum
Intermediary and Retail | Future State Multi-Asset Fund Continuum Alternative Conservative Total High Global Total Income Income Return Income Return Westwood’s Multi-Asset Franchise • Emphasize our expertise in multi-asset and outcome-oriented solutions within targeted categories to serve a broader
Slide 20: Wealth Management
Wealth Management 20 Investing Where It Counts
Slide 21: 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 22: Wealth Management | Realigning Advisor Focus Areas
Wealth Management | Realigning Advisor Focus Areas Defined swim lanes allow for increased efficiency, role clarity, and predictable customer service Accumulation Core UHNW Goal Profitability Retention & growth Growth through new assets AUM Up to $2M $10M + Initiatives Commentary & Insights Client Ex
Slide 23: Wealth Management | Refining Business Development Strategy
Wealth Management | Refining Business Development Strategy Financial planning is a key component of how we go to market • Hiring two financial planners (early 2019) • Leverage core planning expertise of Houston office • Firm strategic rollout in Spring 2019 Business Development Committee Established
Slide 24: 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 25: Wealth Management | WealthCoach 2.0 Initiative
Wealth Management | WealthCoach 2.0 Initiative WealthCoach 2.0 • Building on excellent content and creative developed in 2018 relaunching WealthCoach 2.0, with best of breed partners: Apex Clearing – provides the custody and backbone for the best robos in the world; seamless account opening proces
Slide 26: Wealth Management | Private Equity Offering
Wealth Management | Private Equity Offering Retains the relevancy of our existing client offerings while creating additional opportunities to interact with prospects Opportunistic Programmatic Tech & Hospitality Fund iCapital Purpose: provide compelling unique opportunities either Purpose: provide l
Slide 27: Wealth Management | Private Bank
Wealth Management | Private Bank • Partnering with local bank to create Westwood Private Bank (anticipated launch Q2 2019) • Westwood will purchase <10% stake in the bank (below bank holding company threshold) • Objective: Extend our brand; broaden our value proposition to clients; increase client r
Slide 28: Financials | Highlights
Financials | Highlights 28 Investing Where It Counts
Slide 29: 2019 | Highlights
2019 | Highlights Assets Under Management • Total AUM of $16.8 billion and AUA of $264 million at March 31, 2019 • SmallCap Value, SMidCap, Emerging Markets, Market Neutral Income, Emerging Markets SMid, SMidCap Plus and “We are disappointed with the levels of Flexible Income all outperformed their
Slide 30: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 - QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $128.1 $130.8 $32.1 $121.8 $26.1 $118.3 $22.9 $109.0 Q1 2018 Q4 2018 Q1 2019 2014 2015 2016 2017 2018 Earnings and Dividends Per Share - Historical Earnings and Dividends Per
Slide 31: 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 32: Appendix
Appendix 32 Investing Where It Counts
Slide 33: Westwood | IT Investment Cycle
Westwood | IT Investment Cycle • Access to world- • Formal data • Multi-asset and multi- • Create an operational • Create a holistic client class security management currency platform that digital platform that experience, that is protocols as they program that will allow us to will form the customi
Slide 34: 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 35: 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 36: 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 37: 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
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