Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (December 2016)
23 slides from Westwood's investor presentation, Dec 31, 2016
Slide 1: Investor Relations Presentation
Westwood H O L D I N G S G R O U P , I N C © Investing Where It Counts Investor Relations Presentation As of December 31, 2016
Slide 2: Firm Overview
Westwood | Firm Overview Our mission is to exceed client expectations through Institutional exceptional performance and ethical conduct. Mutual Funds Private Wealth Multi-Investment Team Structure Employee Ownership Culture Overview1 U.S. Value Employees and directors own equity, Global and Emerging
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 2016 Quarterly AUM Annu
Slide 4: Shareholder Value Creation: Total Shareholder Return Comparison
Business Growth | Shareholder Value Creation Current Yield 4.5%* Over $145 million paid out in dividends since 2002 Total Shareholder Return Comparison WHG +754.29% Since Inception 900 800 700 600 500 400 300 200 100 0 Q4 2016 -100 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
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 Talent management, performance management and alignment of compensation structure with str
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 2 Continue growing long-tenured “ Product and distribution alignment focused on high conviction investing, low volatility, multi- asset, liquid alternatives and liquid real assets.
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: Product Development 2013-2017
Core Growth Theme | Product Development 2013-2017 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
Slide 9: Product Offerings Across the Risk Spectrum
Core Growth Theme | Product Offerings Across the Risk Spectrum Emerging Market Worldwide Concentrated Concentrated Markets & Neutral Income Low Volatility LargeCap Select AllCap SMidCap SmallCap Emerging Income Opportunity Equity Value Equity Value Plus Value Markets Plus Low High Volatility Volatil
Slide 10: Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 4% 5% MLPs 37% Foundations/Endowments Taft-Hartley/Superannuation U.S. Value Equity 5% 19% UCITS 28% Global/Emerging Equity Public Funds 9% Sovereign Wealth 18% Multi-Asset 23% 20% 29% Other Institutional
Slide 11: Distribution | Multi-Channel Focus
Distribution | Multi-Channel Focus Institutional AUM Non-U.S. Client Assets $16.0 $14.0 20.0% $12.0 AUM ($ billions) % of AUM 15.0% $10.0 $8.0 10.0% $6.0 $4.0 5.0% $2.0 $0.0 0.0% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Private Wealth AUM Mutual Funds AUM $
Slide 12: Financial | Highlights
Financial | Highlights
Slide 13: 2016 Highlights
2016 | Highlights Assets Under Management • Total AUM of $21.2 billion and AUA of $1.0 billion at December 31, 2016 “ Investment Strategies • Strong performance for our Emerging Markets, Small Cap Value and Multi-Asset strategies. We are excited to celebrate • Appointed sub-advisor of the Aviva Glob
Slide 14: Financial Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 – QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $128.1 $128.1 $121.8 $121.8 $109.0 $88.4 $72.9 $30.7 $31.1 2012 2013 2014 2015 2016 Fee Revenue QTD Fee Revenue YTD 2015 2016 Earnings and Dividends Per Share - Historical Ea
Slide 15: Shareholder Value Creation | Capital Management
Shareholder Value Creation | Capital Management Annual Dividends Over $145 million of dividends paid out from 2002 to 2016 $25 $20 $ in millions $15 $10 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Quarterly Dividends Special Dividends As of December 31, 2016 15 I
Slide 16: 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 17: Appendix
Appendix
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. 6954.43% Virtus Investment Partners, Inc. 1070.61% Westwood Holdings Group, Inc. 754.3% Cohen & Steers, Inc. 338.6% GAMCO Investors, Inc. 115.2% Federated Investors, In
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
Westwood Holdings Group — Investor Presentation (December 2016) on 6ix