Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (September 2016)
23 slides from Westwood's investor presentation, Sep 30, 2016
Slide 1: Investor Relations Presentation
Westwood H O L D I N G S G R O U P , I N C © Investor Relations Presentation As of September 30, 2016
Slide 2: Firm Overview
Westwood | Firm Overview Our mission is to exceed client expectations through exceptional performance and ethical conduct. Institutional Mutual Funds Private Wealth Multi-Investment Team Structure Employee Ownership Culture Overview 1 U.S. Value Employees and directors own equity, Global and Emergin
Slide 3: Revenue and Assets Under Management Growth
Business Growth | Revenue and Assets Under Management Westwood Growth in Revenues and Assets Under Management 140 25 120 20 100 Annual Revenue ($ millions) Quarterly AUM ($ billions) 15 80 60 10 40 5 20 - 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Quarterly AUM Annual Re
Slide 4: Shareholder Value Creation: Total Shareholder Return Comparison
Business Growth | Shareholder Value Creation Current Yield 4.9%* Over $125 million paid out in dividends since 2002 Total Shareholder Return Comparison WHG +648.9% Since Inception 900 800 700 600 500 400 300 200 100 0 Q3 2016 -100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 5: Business Model Overview: Strategy
Business Model Overview | Strategy Core Focus: Building and maintaining multiple strong investment engines to deliver top-tier performance across asset classes. “ Experienced investment teams managing relevant strategies across a global Talent management, performance management and alignment of comp
Slide 6: Core Growth Drivers: The Way Forward
Core Growth Drivers | The Way Forward Growth imperatives are concentrated in 5 key areas: 1 Product development efforts focused on high conviction 2 Continue growing long-tenured relationships with industry- “ investing, low volatility, multi- leading investment management asset, liquid alternatives
Slide 7: High-Conviction and Outcome-Oriented Solutions
Westwood | High-Conviction and Outcome-Oriented Solutions Separately Managed Accounts | Mutual Funds | Collective Funds | UCITS U.S. VALUE EQUITY MULTI-ASSET LIQUID REAL ASSETS LargeCap Value Income Opportunity MLP Infrastructure Renewal Concentrated LargeCap Value Worldwide Income Opportunity MLP O
Slide 8: Core Growth Theme: Product Development 2013-2016
Core Growth Theme | Product Development 2013-2016 High Multi- Low Liquid Liquid Conviction Asset Volatility Alternatives Real Equity Equity Assets Emerging Worldwide Strategic Global Market Neutral MLP Opportunities Markets SMidCap Income Convertibles Income 1/1/2014 9/1/2013 Opportunity 10/1/2014 1
Slide 9: Core Growth Theme: Product Offerings Across the Risk Spectrum
Core Growth Theme | Product Offerings Across the Risk Spectrum Low High Volatility Volatility 9 Investing Where It Counts
Slide 10: Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 4% 5% MLPs 36% Foundations/Endowments Taft-Hartley/Superannuation U.S. Value Equity 5% 19% UCITS 29% Global/Emerging Equity Public Funds 8% Sovereign Wealth 19% Multi-Asset 23% 21% 28% Other Institutional
Slide 11: Distribution: Multi-Channel Focus
Distribution | Multi-Channel Focus Institutional AUM Non-U.S. Client Assets $16.0 $14.0 20.00% $12.0 AUM ($ billions) % of AUM 15.00% $10.0 $8.0 10.00% $6.0 $4.0 5.00% $2.0 $0.0 0.00% Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Private Wealth AUM Mutual Funds
Slide 12: Financial Highlights
Financial | Highlights 12 Investing Where It Counts
Slide 13: Q3 2016 Highlights
Q3 2016 | Highlights Assets Under Management • Total AUM of $21.3 billion and AUA of $1.1 billion at September 30, 2016 “ Investment Strategies • Strong performance for our Emerging Markets and Multi - Asset strategies. All our global equity and • Appointed sub-advisor of the Aviva Global Convertibl
Slide 14: Financial Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 – QTD and YTD Annual Asset-based Advisory +18% -7% & Trust Fees ($ millions) $97.4 $128.1 $109.0 $90.7 $88.4 -5% $67.7 $72.9 $32.9 $31.1 2011 2012 2013 2014 2015 Fee Revenue QTD Fee Revenue YTD 2015 2016 Earnings and Dividends Per Share - His
Slide 15: Shareholder Value Creation: Capital Management
Shareholder Value Creation | Capital Management Annual Dividends Over $125 million of dividends paid out from 2002 to 2015 $18 $16 $14 $12 $ in millions $10 $8 $6 $4 $2 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Quarterly Dividends Special Dividends As of December 31, 2
Slide 16: Reconciliation of Net Income to Economic Earnings
Reconciliation of Net Income to Economic Earnings We provide a non-U.S. generally accepted accounting principles (“non-GAAP”) performance measure that we refer to as Economic Earnings. We provide this measure in addition to, but not as a substitute for, net income reported on a U.S. generally accept
Slide 17: Appendix
Appendix 17 Investing Where It Counts
Slide 18: Additional Strategic Initiatives
Westwood | Additional Strategic Initiatives Utilize Technology to Improve Work Flows and Data Management -Hired first Chief Information Officer -Upgraded Westwood Trust accounting system to provide consistency across offices and scalability for future offices -Migrated technology infrastructure to t
Slide 19: Changes to Executive Compensation Program
Westwood | Changes to Executive Compensation Program • Independent third party compensation consultant engaged • New employment agreement for CEO which includes a three-year term, double-trigger change-in-control and no-gross up provisions for taxes • Stock ownership guidelines adopted for the CEO (
Slide 20: Track Record of Shareholder Value Creation
Westwood | Track Record of Shareholder Value Creation Total Return Since 2002 Westwood Spin-off Diamond Hill Investment Group, Inc. 5923.51% Virtus Investment Partners, Inc. 865.7% Westwood Holdings Group, Inc. 648.9% Cohen & Steers, Inc. 446.2% GAMCO Investors, Inc. 98.3% Federated Investors, Inc.
Slide 21: 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 22: 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 23: Westwood
Westwood H O L D I N G S G R O U P , I N C © www.westwoodgroup.com 200 Crescent Court Suite 1200 Dallas, Texas 75201 T. 214.756.6900
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