Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (June 2018)
24 slides from Westwood's investor presentation, Jun 30, 2018
Slide 1: Investor Relations Presentation
Westwood ® Investing Where It Counts Investor Relations Presentation As of June 30, 2018
Slide 2: Westwood | Firm Overview
Westwood | Firm Overview Our mission is to exceed client expectations through Institutional exceptional performance and ethical conduct. Mutual Funds Wealth Management Multi-Investment Team Structure Employee Ownership Culture Overview1 U.S. Value Employees and directors own equity, Global and Emerg
Slide 3: 2017 | Best Places to Work
2017 | Best Places to Work 3 Investing Where It Counts
Slide 4: Business Growth | Revenue and Assets Under Management
Business Growth | Revenue and Assets Under Management Westwood Growth in Revenues and Assets Under Management 160 30 140 25 120 20 100 Annual Revenue ($ millions) Quarterly AUM ($ billions) 80 15 60 10 40 5 20 - 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Quarte
Slide 5: Business Growth | Shareholder Value Creation
Business Growth | Shareholder Value Creation Current Yield 4.7%* Over $175 million paid out in dividends since 2002 WHG +806.5% Total Shareholder Return Comparison Since Inception 1000% 800 600 400 200 0 Q2 2018 -200% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 So
Slide 6: Investment Management | High-Conviction and Outcome-Oriented Solutions
Investment Management | 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 Oppo
Slide 7: Organic Growth | Product Development 2013-2017
Organic Growth | Product Development 2013-2017 High- Low Conviction Volatility Liquid Liquid Equity Multi-Asset Equity Alternatives Real Assets Emerging Worldwide Strategic Global Market Neutral MLP Opportunities Markets SMidCap Income Convertibles Income 1/1/2014 9/1/2013 Opportunity 10/1/2014 10/1
Slide 8: Investment Management | Product Breadth Across the Risk Spectrum
Investment Management | Product Breadth Across the Risk Spectrum Global Equity Emerging Market Flexible Worldwide Concentrated & Markets Neutral Income Income Low Volatility LargeCap Select International SmallCap SMidCap Income Opportunity Equity Value Equity Equity SMidCap Value Low High Volatility
Slide 9: Distribution | Product and Channel Breakdown
Distribution | Product and Channel Breakdown STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 7% 6% 4% Liquid Alternatives Foundations/Endowments Taft-Hartley/Superannuation Low Volatility Equity 3% 3% UCITS 20% Liquid Real Assets (MLPs) 37% Public Funds 18% 7% U.S. Value Equity Global/Emerging Equit
Slide 10: Distribution | Multi-Channel Breakdown
Distribution | Multi-Channel Breakdown Institutional AUM Non-U.S. Client Assets $16.0 $14.0 25.0% $12.0 20.0% AUM ($ billions) $10.0 % of AUM 15.0% $8.0 $6.0 10.0% $4.0 5.0% $2.0 0.0% $0.0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Wealth Management AUM Mutual Funds AUM $7
Slide 11: Strategic Focus | Executive Overview
Strategic Focus | Executive Overview 11 Investing Where It Counts
Slide 12: Core Growth Drivers | 2018
Core Growth Drivers | 2018 2018 growth objectives are highly focused on sales execution across high-conviction and outcome-oriented investment solutions. We expect to gain traction in our global expansion initiatives by ramping up our European and third-party partnership programs. Sales Focus Global
Slide 13: Financial | Highlights
Financial | Highlights 13 Investing Where It Counts
Slide 14: Q2 2018 | Highlights
Q2 2018 | Highlights • Total AUM of $21.6 billion and AUA of $259 million at June Assets Under Management 30, 2018 • Our SmallCap strategy was selected to participate in the Morningstar U.S. Equity Fund Investment Strategies • Our LargeCap Value strategy beat its primary benchmark for “Consistent wi
Slide 15: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 - QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $64.0 $63.0 $128.1 $121.8 $130.8 $109.0 $88.4 $32.4 $32.1 $30.9 2013 2014 2015 2016 2017 Fee Revenue QTD Fee Revenue YTD Q2 2017 Fee Revenue Q1 2018 Fee Revenue Q2 2018 Fee R
Slide 16: Shareholder Value Creation | Capital Management
Shareholder Value Creation | Capital Management Annual Dividends Over $165 million of dividends paid out from 2002 to 2017 $25 $20 $ in millions $15 $10 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Quarterly Dividends Special Dividends As of December 31, 2017
Slide 17: 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 18: Appendix
Appendix 18 Investing Where It Counts
Slide 19: The Shift from Active to Passive Continued in 2017
The Shift from Active to Passive Continued in 2017 Flows from Active to Passive Funds in U.S. Equities 2,000 1,556 1,500 Passive 1,000 Billions of U.S. Dollars 500 0 -500 -1,000 Active -1,500 -2,000 -1,725 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Passive Active Source: Strategas Passive = Ind
Slide 20: Why Are We Optimistic? | High Operating Margins
Why Are We Optimistic? | High Operating Margins Operating Margins by Industry Tobacco 40% Transportation (Railroads) 32% Drugs (Biotechnology) 28% Asset Management 26% Beverage (Alcoholic) 24% Drugs (Pharmaceutical) 24% Information Services 23% Software (Internet) 22% Semiconductor 21% Hotel/Gaming
Slide 21: Westwood | 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 6635.83% Virtus Investment Partners Inc 1198.6% Hennessy Advisors 972.2% Westwood Holdings Group Inc 806.5% Cohen & Steers Inc 482.0% GAMCO Investors Inc 87.3% Silvercres
Slide 22: 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 23: 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 24: 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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