Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (September 2017)
26 slides from Westwood's investor presentation, Sep 30, 2017
Slide 1: Investor Relations Presentation
Westwood® Investing Where It Counts Investor Relations Presentation As of September 30, 2017
Slide 2: Westwood | 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: Business Growth | Revenue and Assets Under Management
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: Business Growth | Shareholder Value Creation
Business Growth | Shareholder Value Creation Current Yield 4.0%* Over $165 million paid out in dividends since 2002 WHG Total Shareholder Return Comparison +890.29% Since Inception 1000% 800 600 400 200 0 Q3 2017 -200% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 S
Slide 5: Westwood | 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 6: Westwood | Product Breadth Across the Risk Spectrum
Westwood | Product Breadth Across the Risk Spectrum Global Equity Emerging Market Worldwide Concentrated & Markets & Neutral Income Low Volatility LargeCap Select International SMidCap SmallCap Emerging Income Opportunity Equity Value Equity Equity Plus Value Markets Plus Low High Volatility Volatil
Slide 7: Distribution | Product and Channel Breakdown
Distribution | Product and Channel Breakdown STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 4% 6% MLPs 34% Foundations/Endowments Taft-Hartley/Superannuation U.S. Value Equity 4% 22% 24% UCITS Global/Emerging Equity Public Funds 9% Sovereign Wealth 19% Multi-Asset 22% 19% 34% Other Institutional Co
Slide 8: 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 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Private Wealth AUM Mutual F
Slide 9: Strategic Focus | Executive Overview
Strategic Focus | Executive Overview 9 Investing Where It Counts
Slide 10: Strategic Focus | Executive Overview
Strategic Focus | Executive Overview 2017-2018 Investment Organizational Accelerate Performance Performance Digital Building and maintaining multiple Focused on improving sales Focused on creating a robust digital investment engines to deliver top-tier execution and brand visibility while platform t
Slide 11: 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 12: Accelerate Digital | westwoodgroup.com
Accelerate Digital | westwoodgroup.com Expected Launch: Q4 2017 Home Investment Management Wealth Management Corporate 13 Investing Where It Counts
Slide 13: 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 14: Financial | Highlights
Financial | Highlights 15 Investing Where It Counts
Slide 15: Q3 2017 | Highlights
Q3 2017 | Highlights • Total AUM of $23.6 billion and AUA of $362 million at September 30, 2017 Assets Under Management • Transitioned approximately $713M in assets related to a long-only convertibles fund from AUA to AUM in July 2017 • Top quartile performance was delivered by our SmallCap Value an
Slide 16: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 – QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $90.7 97.2 $128.1 $121.9 $109.0 $88.4 $72.9 $32.4 $33.2 $31.1 Fee Revenue QTD Fee Revenue YTD 2012 2013 2014 2015 2016 Q2 2017 Fee Revenue 2016 Fee Revenue 2017 Fee Revenue E
Slide 17: 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 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Quarterly Dividends Special Dividends As of December 31, 2016. 18
Slide 18: Reconciliation of Net Income to Economic Earnings
Reconciliation of Net Income to Economic Earnings We are providing a performance measure that we refer to as Economic Earnings. Both our management and Board of Directors review Economic Earnings to evaluate our ongoing performance, allocate resources and determine our dividend policy. We also belie
Slide 19: Appendix
Appendix 20 Investing Where It Counts
Slide 20: Passive vs. Active Over the Past 10 Years
Is It Time to Short Passive? Passive vs. Active Over the Past 10 Years Cumulative flows to equity funds ($tn) 2.1 -2.1 Passive Active • $2.1tn inflows to passive equity funds vs. $2.1tn redemptions from active equity funds... • $2.9tn inflows to passive funds (bond + equity) vs. $1.3tn redemptions f
Slide 21: Westwood | Additional Strategic Context
Westwood | Additional Strategic Context Utilize Technology to Improve Work Flows and Data Management • Upgrade Westwood Trust accounting system to provide consistency across offices and scalability for future offices • Third phase of the data architecture program with the primary focus on data gover
Slide 22: Westwood | Changes to Executive Compensation Program
Westwood | Changes to Executive Compensation Program 2016 Executive Compensation Program Changes • 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 • Stoc
Slide 23: 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 7020.5% Virtus Investment Partners Inc 1064.6% Westwood Holdings Group Inc 890.3% Cohen & Steers Inc 427.0% GAMCO Investors Inc 107.9% Federated Investors Inc 75.2% Silve
Slide 24: 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 25: 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 26: 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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