Westwood Holdings Group Inc · NYSE:WHG
Westwood — Investor Presentation (June 2019)
30 slides from Westwood's investor presentation, Jun 30, 2019
Slide 1: Investor Relations Presentation
Westwood ® Investing Where It Counts Investor Relations Presentation As of June 30, 2019
Slide 2: Overview
Overview 2 Investing Where It Counts
Slide 3: Westwood | Firm Overview
Westwood | Firm Overview Investment Management Investing Where It Counts Wealth Management Our commitment to investment excellence transcends our investment discipline to encompass the principles that guide our culture and help us evolve our services to meet each client’s unique needs. Overview1 Hig
Slide 4: 2018 | Best Places to Work
2018 | Best Places to Work 4 Investing Where It Counts
Slide 5: High-Conviction Equity and Outcome-Oriented Solutions
Westwood | High-Conviction Equity and Outcome-Oriented Solutions Separately Managed Accounts Commingled Funds Mutual Funds UCITS U.S. Equity Fixed Income Our Strategies AUM: $15.4B* AllCap Value Opportunistic High Yield AllCap Growth Short Duration High Yield LargeCap Select Custom Solutions LargeCa
Slide 6: Investment Management | Product Breadth Across the Risk Spectrum
Investment Management | Product Breadth Across the Risk Spectrum Market Worldwide Emerging Flexible Neutral Income LargeCap Select SmallCap Markets Income Income Opportunity Select Equity SMidCap Value SMidCap Low High Volatility Volatility Income Strategic LargeCap AllCap SMidCap MLP Emerging Oppor
Slide 7: Westwood | Product and Channel Diversification
Westwood | Product and Channel Diversification STRATEGY BREAKDOWN INSTITUTIONAL CLIENT TYPE 3% 4% 4% 1% Low Volatility Equity Liquid Alternatives Foundations/Endowments Taft-Hartley/Superannuation 4% 3% 28% UCITS Liquid Real Assets (MLPs) Public Funds 40% 14% 7% U.S. Value Equity Emerging Markets Eq
Slide 8: Strategic Focus | Executive Overview
Strategic Focus | Executive Overview 8 Investing Where It Counts
Slide 9: Long-Term | Strategic Focus
Long-Term | Strategic Focus Performance Human Capital Sales • Distribution “alpha” focused on Performance differentiating our value proposition from pre-sale to cross-sale, Alpha transcending the performance cycle. Mergers & Product Marketing • Product innovation “alpha” focused on Performance Acqui
Slide 10: Positioned for Long-term Sales Growth
Growth Drivers | 2019 Team build-outs complete and executing distribution strategies; Strengthening relationships with intermediaries, clients, consultants Positioned for Increased sales activity and new business pipeline; Long-term SmallCap positioned for 2019 wins, SMidCap and Multi-Asset position
Slide 11: Investment Management | Institutional & Intermediary
Investment Management | Institutional & Intermediary 11 Investing Where It Counts
Slide 12: Aligning fees with the true value of Active Investing
Aligning fees with the true value of Active Investing Align with Investors with Greater Flexibility Solve the Fee Problem Change the Probability of Winning Accelerate Asset Growth The industry has struggled in recent years due to a loss of confidence over performance issues combined with increased p
Slide 13: Strategic Focus | Accelerate Intermediary
Strategic Focus | Accelerate Intermediary We are taking a new, more scientific approach to intermediary Data Platform Insights Sales distribution to drive inflows. Implement segmentation and advisor targeting strategy Digital Territory Build wholesaling infrastructure and resources to align with Mar
Slide 14: Strategy Execution to Scale the Business
Intermediary and Retail | Key Success Drivers of Business Development > Strategy Execution to Scale the Business • Consolidate fund lineup over the next 12 months • SalesForce CRM dashboard and territory build-out with OpportunityHunter analytics • Use SMA and model delivery to accelerate growth and
Slide 15: Westwood Multi-Asset Franchise
Westwood Multi-Asset Franchise Alternative Income High Income Total Return Income Opportunity Total Return (60/40)* Income Opportunity (40/60) High Income (20/80)* Alt Income (1mo-T-Bill)* *Sensible Fee Product 15 Investing Where It Counts
Slide 16: Wealth Management
Wealth Management 16 Investing Where It Counts
Slide 17: Wealth Management | Service Offering Evolution
Wealth Management | Service Offering Evolution Expanded Trust + RIA offerings 2019+ Banking partnership Holistic digital wealth solution (app) Trust + RIA offerings Private Equity franchise (core & direct) 2018 Custodian referral programs (multiple) Comprehensive CRM (drive referrals) Private Equity
Slide 18: Wealth Management | Digital Platform
Wealth Management | Digital Platform Digital experience, touching all areas of the firm, that captures new and existing capabilities to create a one-stop shop for comprehensive financial management Visionary strategy consisted of understanding our Why, How, and What 1 Why Be the indispensable, holis
Slide 19: Wealth Management | WealthCoach 2.0 Initiative
Wealth Management | WealthCoach 2.0 Initiative WealthCoach 2.0 • Building on excellent content and creative developed in 2018, relaunching WealthCoach 2.0 with best of breed partners: Apex Clearing – provides the custody and backbone for the best robos in the world; seamless account opening proces
Slide 20: Wealth Management | Private Bank
Wealth Management | Private Bank • Partnered with a local bank to launch Westwood Private Bank in Q2 2019 • Westwood will purchase <10% stake in the bank (below bank holding company threshold) • Objective: Extend our brand; broaden our value proposition to clients; increase client retention; expande
Slide 21: Financials | Highlights
Financials | Highlights 21 Investing Where It Counts
Slide 22: 2019 | Highlights
2019 | Highlights Assets Under Management • Total AUM of $15.4 billion and AUA of $261 million at June 30, 2019 “Our overall product performance was • All of our U.S. Value teams, our Market Neutral Income, solid during the second quarter, Strategic Global Convertibles and Emerging Markets teams par
Slide 23: Financial | Trends
Financial | Trends Fee Revenue1 - Historical Fee Revenue1 - QTD and YTD Annual Asset-based Advisory & Trust Fees ($ millions) $63.0 $128.1 $130.8 $121.8 $30.9 $118.3 $109.0 $44.1 $22.9 $21.1 2014 2015 2016 2017 2018 Fee Revenue QTD Fee Revenue YTD Q2 2018 Fee Revenue Q1 2019 Fee Revenue Q2 2019 Fee
Slide 24: 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 25: Appendix
Appendix 25 Investing Where It Counts
Slide 26: Looking Ahead | Technology Investment Cycle
Looking Ahead | Technology Investment Cycle Access to world- Full risk Formal data Multi-asset and Create an Online advice tool A holistic client class security distribution at the management multi-currency operational digital designed to meet experience, protocols as they asset level across program
Slide 27: Long-Term | Shareholder Value Creation
Long-Term | Shareholder Value Creation Annual Dividends Over $190 million of dividends paid out from 2002 to 2018 $30 $25 $20 $ in millions $15 $10 $5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Quarterly Dividends Special Dividends As of December 31, 2018
Slide 28: 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 29: 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 30: 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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