Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investment Management & Specialty Finance Conference 2011
27 slides from Westwood's conference presentation, Jun 7, 2011
Slide 1: Westwood Holdings Group, Inc.
Westwood Holdings Group, Inc. Investment Management & Specialty Finance Conference June 7, 2011 Brian O. Casey President & Chief Executive Officer Susan M. Byrne Chairman & Co-Chief Investment Officer Exhibit 99.1
Slide 2: Westwood Overview
Westwood Overview • Asset management firm focused on Value & Income investment strategies • Serving institutional, private client and mutual fund investors since 1983 • Track record of providing strong long-term risk-adjusted returns • Client-centered culture; interests aligned with equity-based inc
Slide 3: Product and Distribution Channels
Institutional Private Wealth Mutual Funds Product Distribution • Separately managed portfolios • Subadvisory • Collective funds • Targeted consultant relationships • Subadvisory partners • Plan sponsor direct marketing • Enhanced Balanced TM asset allocation model • Commingled funds • Separately man
Slide 4: Overview of Investment Process
Portfolio Teams Research Analysts 4 Research Groups 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
Slide 5: Product performance
*Due to capacity constraints, this product closed to new investors effective October 1, 2009. Performance provided reflects the institutional track record which started January 1, 2002. In 2001, Westwood transitioned a midcap core equity strategy to the institutional SMidCap strategy. The midcap cor
Slide 6: Assets Under Management by Product
Seasoned Products (>3 year track record & >$100 Million in assets) Assets Under Management As of 5/31/11 Estimated Maximum Capacity AUM Asset Growth Potential Product Inception Unseasoned (R&D) & Legacy Products Significant Product Capacity Remains LargeCap Value $6.3 billion $25 billion $18.7 billi
Slide 7: Subadvisory
Subadvisory Subadvisory opportunities – attractive means for enhanced distribution of scalable products • Access to established distribution channels • Generally lower average fee, but high profitability due to low incremental costs • Current Westwood Subadvisory mandates
Slide 8: Growth in Subadvisory Assets
Growth in Subadvisory Assets We have added 5 relationships and increased Subadvisory assets by $841 million since Q1 2008
Slide 9: Domestic Value & Income Strategies: WHG Funds
Domestic Value & Income Strategies WHG Funds WHG Funds • Strong asset growth – assets have grown to $1.3 billion from initial two fund launch in December 2005 • Targeted primarily to institutional, defined contribution and RIA markets LargeCap Value WHGLX SMidCap WHGMX SMidCap Plus+ WHGPX SmallCap V
Slide 10: WHG Funds Morningstar Ratings
WHG Funds – Morningstar Ratings Proportion of Assets Rated Four or Five Star (Asset Weighted) Source: JPMorgan U.S. Asset Managers – North America Equity Research dated December 14, 2010; Strategic Insight. WHG Funds AUM as of 5/31/11
Slide 11: Westwood Trust – Private Wealth
Westwood Trust – Private Wealth Solid performance and a high rate of client retention A comprehensive allocation strategy – Consultative approach – Low cost, efficient solution – Asset gathering platform – “Best Ideas” Trust services – Establishes long-term trust relationship – Capable of serving mu
Slide 12: Enhanced Balanced Performance
The eA US Balanced/TAA Universe consists of 102 return sets. The Westwood Trust Representative Client is a representative account showing a client who has been diversified among the available Westwood commingled funds throughout their term with Westwood. Past performance does not guarantee future re
Slide 13: Growth in Assets Under Management
Growth in Assets Under Management • 5-year compound annual growth rate in AUM of 20% • Over this same period, the level of the S&P 500 index has risen by 4% • Trailing five years net inflows of $4.2 billion AUM Growth in a Challenging Environment Total AUM at 5/31/11 = $13.9 Billion
Slide 14: Revenue Growth
Revenue Growth (excluding performance-based fees) • Consistent growth in asset-based fee revenue: 5-year CAGR of over 22% • The value of the S&P 500 index is essentially flat over this time period
Slide 15: Economic EPS, Dividends & Growing Cash Balances
Economic EPS, Dividends & Growing Cash Balances 2006 – YTD Q1 2011 Cash & Liquid Investments as of March 31, 2011 were 107% higher than at year-end 2006 Note: 2007 and 2008 economic EPS include impact of performance fees of $3.0 million and $8.7 million, respectively; cash & investments excludes sha
Slide 16: WHG Quarterly Dividend History
WHG Quarterly Dividend History • We seek to share excess cash with shareholders • Dividends declared since 2002: $70 million ($10.56 per share) • 3.9% yield as of May 31, 2011 close at $1.40 annualized dividend rate *Annualized based on quarterly dividend of $0.35 per share
Slide 17: WHG Stock Performance vs. NYSE Listed Companies
WHG Stock Performance vs. NYSE Listed Companies as of 3/31/11
Slide 18: Importance of Alignment
Importance of Alignment • We have long believed that our ownership model and employee compensation program provide effective alignment of employees’ interests with clients and shareholders. • A recent study by Casey Quirk reveals evidence that employee ownership and low employee turnover are positiv
Slide 19: Westwood contact details
www.westwoodgroup.com Crescent Court Suite 1200 Dallas, Texas 75201 T. 214.756.6900 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Slide 20: Economic Earnings Reconciliation
Economic Earnings Reconciliation Economic Earnings Reconciliation ($ thousands) 2006 2007 2008 2009 2010 Q1 2011 GAAP net income 4,508 $ 7,944 $ 10,543 $ 7,895 $ 11,280 $ 3,549 $ Add: Restricted stock expense 4,500 5,316 6,735 7,666 9,269 2,383 Add: Stock option expense - - - - - Add: Intangible amo
Slide 21: LargeCap Value Disclosure Information
LargeCap Value Disclosure Information
Slide 22: SMidCap Value Disclosure Information
SMidCap Value Disclosure Information*
Slide 23: SmallCap Value Disclosure Information
SmallCap Value Disclosure Information
Slide 24: AllCap Value Disclosure Information
AllCap Value Disclosure Information
Slide 25: Income Opportunity Disclosure Information
Income Opportunity Disclosure Information
Slide 26: Balanced Disclosure Information
Balanced Disclosure Information
Slide 27: Important Information About Your Privacy
IMPORTANT INFORMATION ABOUT YOUR PRIVACY
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