![]() Westwood Holdings Group, Inc. Q1 2011 Investor Presentation Brian O. Casey President & Chief Executive Officer William R. Hardcastle, Jr. Chief Financial Officer Exhibit 99.1 |
![]() Forward – Looking Statements Statements in this presentation that are not purely historical facts, including statements about our expected future financial position, preliminary estimates, results of operations or cash flows, as well as other statements including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “could,” “goal,” “target,” “designed,” “on track,” “comfortable with,” “optimistic” and other similar expressions, constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, those set forth below: • our ability to identify and successfully market services that appeal to our customers; • the significant concentration of our revenues in four of our customers; • our relationships with investment consulting firms; • our relationships with current and potential customers; • our ability to retain qualified personnel; • our ability to successfully develop and market new asset classes; • our ability to maintain our fee structure in light of competitive fee pressures; • competition in the marketplace; • downturn in the financial markets; • the passage of legislation adversely affecting the financial services industries; • interest rates; • changes in our effective tax rate; • our ability to maintain an effective system of internal controls; and • the other risks detailed from time to time in our SEC reports. Additional factors that could cause our actual results to differ materially from our expectations are discussed under the section entitled “Risk Factors” in our Form 10-K for the year ended December 31, 2010, which together with our other filings can be viewed at www.sec.gov. You should not unduly rely on these forward-looking statements. Except as required by law, we are not obligated to publicly release any revisions to these forward-looking statements. |
![]() Agenda I. Firm Overview II. Investment Process & Products III. Growth Opportunities IV. Financial Highlights V. Summary |
![]() Firm Overview |
![]() Westwood Overview • Asset management firm focused on Value & Income products • Serving institutional, private client and mutual fund investors since 1983 • Track record of providing strong long-term risk-adjusted returns • Client-centered culture; interests aligned with equity-based incentives • Publicly traded since 2002 (NYSE : WHG) Page 1 1 as of March 1, 2011 |
![]() Product Distribution • Separately managed portfolios • Sub-Advisory • Collective funds • Targeted consultant relationships • Plan sponsor direct marketing Westwood Holdings Group, Inc. Westwood Management Westwood Trust WHG Funds • Enhanced Balanced ™ asset allocation model • Commingled funds • Separately managed portfolios • Client referrals • Third party referral sources • Local community involvement • Capped expense ratios • Institutional share class • Defined contribution plans • Other institutions • A share class • Mutual fund supermarkets • DC consultants • Private Wealth Advisors • Media Page 2 Distribution Channels Institutional Private Wealth Mutual Funds |
![]() Investment Process & Products |
![]() Overview of Investment Process Qualities that Westwood analysts look for in securities: • Strong free cash flow characteristics • Stable to improving return on equity • Improving balance sheet • Upside earnings surprise without corresponding change in consensus estimates Portfolio Teams Research Analysts • Idea generation • Proprietary fundamental research • Make buy & sell recommendations 4 Research Groups • Led by senior analysts • Weekly due diligence meetings to review analyst recommendations • Approved securities move to list of portfolio candidates • At least one member from each Research Group • Weekly meetings to review portfolio and new names • Makes buy and sell decisions and manages portfolio risk Page 3 |
![]() 4Q10 1-Year Trailing 3-Years Trailing 5-Years Trailing Since Inception Westwood LargeCap Value 10.6% 13.7% -4.2% 3.6% 11.8% Net of Fees 10.5% 13.3% -4.5% 3.3% 11.1% Russell 1000 Value 10.5% 15.5% -4.4% 1.3% 10.0% Westwood SMidCap Value 15.7% 28.1% 8.4% 11.8% 15.5% Net of Fees 15.5% 27.2% 7.8% 11.2% 15.0% Russell 2500 Value 13.8% 24.8% 2.7% 3.9% 8.4% Westwood SmallCap Value 16.4% 24.6% 1.4% 6.1% 9.6% Net of Fees 16.2% 23.7% 0.8% 5.5% 9.1% Russell 2000 Value 15.4% 24.5% 2.2% 3.5% 6.2% Westwood AllCap Value 12.6% 18.6% -2.1% 4.7% 8.2% Net of Fees 12.4% 17.9% -2.7% 4.1% 7.8% Russell 3000 Value 10.9% 16.2% -3.9% 1.5% 5.3% Westwood Income Opportunity Fund 3.2% 15.2% 7.0% 7.1% 10.0% Net of Fees 3.0% 14.5% 6.4% 6.5% 9.5% 25% S&P 500 / 25% NAREIT / 25% 10-Year Treasury / 25% T-Bills 3.1% 13.1% 2.7% 4.5% 7.0% Westwood Balanced Management 5.8% 10.2% 0.0% 4.7% 10.4% Net of Fees 5.6% 9.6% -0.6% 4.1% 9.7% 60% S&P 500 / 40% Barclays Capital Government/Credit 5.5% 12.2% 1.0% 4.0% 8.9% Core Fixed Income -1.2% 5.9% 6.5% 6.2% 8.3% Net of Fees -1.3% 5.6% 6.2% 5.9% 7.9% Barclays Capital Government/Credit -2.2% 6.6% 5.6% 5.6% 7.9% Investment Performance vs. Benchmark Thru December 31, 2010 Our investment teams have delivered excess returns across Value & Income products Page 4 (Inception: 1/1/87) (Institutional Inception: 1/1/02)* (Inception: 1/1/04) (Inception: 7/1/02) (Inception: 1/1/03) (Inception: 1/1/87) (Inception: 1/1/85) *Due to capacity constraints, this product closed to new investors effective October 1, 2009. Performance provided reflects the institutional track record which started January 1, 2002. In 2001, Westwood transitioned a midcap core equity strategy to the institutional SMidCap strategy. The midcap core portfolio was exclusively offered to private clients of Westwood's Trust Company. This change occurred as a result of the increased demand we observed by institutional investors. January 1, 2002 reflects the inception of the institutional SMidCap Equity strategy. The true inception date of the composite is 7/1/97. This strategy has consistently adhered to Westwood's investment process Returns are preliminary and are subject to change. Please see appendix for full performance disclosures disclosures provided are considered an integral part of this presentation. Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. (http://westwoodgroup.com/disclaimers.pdf). The Past performance is not a guarantee of future returns. and philosophy. |
![]() Performance accelerates following small cap/risk-oriented rallies Westwood LargeCap Equity vs. Russell 1000 Value Page 5 Past performance is not a guarantee of future returns. Performance provided is gross of management fees. Please see appendix for full performance disclosures. The disclosures provided are considered an integral part of this presentation. Universe data set is subject to change. The eA U.S. Large Cap Value Equity universe consists of U.S. Equity products that invest primarily in large capitalization stocks with fundamental characteristics showing them to be under-priced or in slower growing economic sectors. The expected benchmarks for this universe would include the Russell 1000 Value, S&P 500 or the S&P/BARRA Value. Managers in this category will typically indicate a “Primary Capitalization Emphasis” equal to Large Cap and a “Primary Style Emphasis” equal to Value. |
![]() Growth Opportunities |
![]() Growth Opportunities • Significant capacity remains in seasoned products • Subadvisory mandates o Access to broad distribution infrastructure & global market access o Support partner distribution network vs. building proprietary distribution network • WHG Funds o Three-year track record achieved in all funds o Strong organic growth; assets under management currently exceed $1 billion o WHG Dividend Growth Fund added via McCarthy acquisition o Asset acquisition opportunities • Private Wealth o Westwood Trust product development and asset gathering platform o Leverage referral sources o Expand private wealth platform in new markets – i.e. McCarthy Group Advisors (Omaha) Page 6 |
![]() Corporate Development Opportunities We seek to augment organic growth by pursuing strategic opportunities • Mutual fund asset acquisition opportunities o McCarthy Multi-Cap Stock Fund reorganized into WHG Dividend Growth Fund in 2010 o $68 million in assets; asset class extension for WHG Funds lineup o Philadelphia Fund reorganized into WHG LargeCap Value fund in 2009 o $52 million in assets o Incrementally profitable – minimal ongoing costs o Benefits fund shareholders via expense ratio reduction opportunities • Private wealth o Expand private wealth platform in new markets o Acquire relationship managers and asset gatherers o Acquired McCarthy Group Advisors in Q4 2010 ($1.1 billion in private wealth assets) • Acquire additional products and research capabilities o International o Emerging Markets o Global Page 7 |
![]() Significant Product Capacity Remains Page 8 Seasoned Products (>3 year track record & >$100 Million in assets) Assets Under Management As of 12/31/10 Estimated Maximum Capacity AUM Asset Growth Potential Product Inception LargeCap Value $5.7 billion $25 billion $19.3 billion 1987 SMidCap Value $3.0+ billion $3 billion Closed 1997 SmallCap Value $220 million $1.5 billion $1.3 billion 2004 AllCap Value $170 million $10 billion $9.8 billion 2002 Income Opportunity $450 million $2 billion $1.6 billion 2003 MLP $200 million $1.5 billion $1.3 billion 2003 Total Seasoned $9.9 billion $43 billion $33 billion Unseasoned (R&D) Products (<3 year track record & <$100 Million in assets) MidCap Value $21 million $15 billion $15 billion 2007 LargeCap Enhanced 130/30 $9 million $10 billion $10 billion 2007 Global Strategic Diversification $22 million $2 billion $2 billion 2010 SMidCap Plus+ $4 million $8 billion $8 billion 2010 Total Unseasoned $56 million $35 billion $35 billion Total Seasoned & Unseasoned $10.0 billion $78 billion $68 billion Legacy Products Balanced / Fixed Income / REIT $528 million N/A N/A 1987 / 1985 / 1995 Note: Table reflects Westwood Management AUM as of 12/31/10 (including Westwood Trust commingled funds); excludes approximately 800 million in Westwood Trust separately managed accounts, agency assets and subadvised commingled funds and $1.2 billion under management by Omaha office |
![]() Seasoned Products & Capacity Available Page 9 Estimated Capacity – as of December 31, 2010 ($ billions) 23% 100% 15% 2% 22% 14% |
![]() Subadvisory Page 10 Subadvisory opportunities – attractive means for enhanced distribution of scalable products • Access to established distribution channels • Generally lower average fee, but high profitability due to low incremental costs • Current Westwood Subadvisory mandates • UBS Pace • Wilmington Trust Co. • Principal Financial • State Farm • Goodman Institutional Investors • RBC Asset Management • Pictet Funds • Delaware Investments – Optimum Funds • Timothy Plan • Callan Diversified Alpha • GAMCO Westwood Funds • Westwood Trust |
![]() Growth in Subadvisory Assets Page 11 We have added 6 relationships and increased Subadvisory assets by $919 million since Q1 2008 Note: does not include Westwood Trust or GAMCO Westwood Funds assets |
![]() Pictet & Cie • One of Europe’s oldest (founded in 1805) and largest ($383 B AUM) private banks • Selected Westwood to manage their first U.S. Value fund • 10-city European Marketing Tour with Pictet in Spring 2010 Cities Visited: Lugano, Milan, Paris, Zurich, Geneva, Lisbon, Madrid, Luxembourg, Frankfurt, London • Unique opportunity to introduce Westwood to significant new markets • Near-term asset expectations are modest – AUM of $192 million at 12/31/10 • Longer-term opportunity is substantial Page 12 |
![]() WHG Funds Page 13 WHG Funds • Six funds advised by Westwood Management • Strong asset growth – assets have grown to over $1 billion from initial two fund launch in December 2005 • Filed registration statement for seventh fund, WHG SMidCap Plus+, in Q1 2011 • Targeted primarily to institutional and defined contribution markets Growth in WHG Funds Assets $1,146 6.3% Assets in WHG Funds as of February 28, 2011 = $1.146 billion |
![]() WHG Funds – Morningstar Ratings Proportion of Assets Rated Four or Five Star (Asset Weighted) Page 14 Source: JPMorgan U.S. Asset Managers – North America Equity Research dated December 14, 2010; Strategic Insight. WHG Funds AUM as of 12/31/10 |
![]() Westwood Trust • Very high rate of client retention • Enhanced Balanced ™ – Asset allocation model 9 asset classes managed by Westwood Management 4 asset classes managed by subadvisors – Consultative approach – Low cost, efficient solution – Asset gathering platform – Private Client – “Best Ideas” • Subadvisors: Page 15 International Growth High Yield International Value Domestic Growth |
![]() Financial Highlights |
![]() Growth in Assets Under Management • 5-year compound annual growth rate in AUM of 20% • Over this same period, the level of the S&P 500 index has risen by less than 1% • Trailing five years net inflows of $4.2 billion AUM Growth in a Challenging Environment Total AUM at 12/31/10 = $12.5 Billion Page 16 |
![]() Shift in Assets Under Management Mix • Strong organic growth has pushed mutual fund assets to meaningful share of total assets • Private wealth assets expanded with acquisition of $1.1 billion of assets in McCarthy transaction AUM ($ millions) Channel 2005 2010 5-Year CAGR Institutional $3,674 $8,359 18% Private Wealth $1,246 $3,148 20% Mutual Funds $8 $970 161% Total AUM $4,928 $12,477 20% Page 17 |
![]() Revenue Growth (excluding performance-based fees) Page 18 • Consistent growth in asset-based fee revenue: 5-year CAGR of 21% • The value of the S&P 500 index is essentially flat over this time period • 2010 revenue was the highest in Westwood’s history |
![]() Economic Earnings, Dividends & Growing Cash Balances 2005 – 2010 Cash & Liquid Investments as of December 31, 2010 are 121% higher than at year-end 2005 Note: 2007 and 2008 economic earnings include impact of performance fees of $3.0 million and $8.7 million, respectively; cash & investments excludes shares of Teton Advisors, Inc. Page 19 |
![]() WHG Quarterly Dividend History Page 20 • We seek to share excess cash with shareholders • Dividends declared since 2002: $68 million • 3.7% yield as of March 1, 2011 close at $1.40 annualized dividend rate |
![]() 1-Year Percentile 3-Year Percentile 5-Year Percentile WHG 15.02% 62 18.96% 34 172.99% 6 Russell 2000 26.85% 45 6.82% 45 24.46% 48 WHG Stock Performance vs. NYSE Listed Companies as of 12/31/10 Page 21 Top Performer 91.1% Bottom Performer -23.8% Top Performer 95.3% Bottom Performer -69.8% Top Performer 180.6% Bottom Performer -74.6% Data excludes 5% tails - Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. |
![]() Page 22 For the Second Year in a Row, DeMarche Associates, Inc. Names Westwood Holdings Group, Inc. Among “Best 100” Companies July 15, 2010 Westwood Holdings Group, Inc. has been named one of the “Best 100 Companies in the United States” by DeMarche Associates, Inc., a leading U.S. investment research firm. The award is based on DeMarche’s proprietary research and fundamental analysis of more than 3,000 U.S. corporations in terms of managing growth and risk factors while maintaining shareholder value. DeMarche “Best 100” Companies in the United States |
![]() Ownership & Results Page 23 Equity-based compensation is a critical part of our compensation program • Meaningful equity ownership aligns employees’ interests with clients and shareholders • Restricted stock awards used to attract and retain talented individuals and teams • Very high retention of key personnel • Transparency of public company structure allows broad dissemination of key financial metrics to all employee shareholders • Restricted stock recipients have voting rights and receive dividends upon vesting Results • Strong product performance. Key products have outperformed respective benchmarks over trailing 5-year period as of December 31, 2010. • Growth in assets under management. AUM has increased by 168% from June 2002 spin-off to year-end 2010. • Increased shareholder value. Market value has increased from $75 million at June 2002 to $306 million at year-end 2010 – a total return of 355% compared to 96% for the Russell 2000 index over the same period. • Excess cash returned to shareholders through dividends. We have declared $68 million in dividends to shareholders since June 2002. |
![]() Importance of Alignment Page 24 • We have long believed that our ownership model and employee compensation program provide effective alignment of employees’ interests with clients and shareholders. • A recent study by Casey Quirk reveals evidence that employee ownership and low employee turnover are positively correlated with better business performance. • Firms with low employee turnover produced 3-7% higher compounded revenue growth over the 2003-2009 study period compared to firms with high employee turnover. • Firms with employee ownership produced 3.4% higher compounded revenue growth over the study period compared to firms with no employee ownership. • The Casey Quirk/eVestment Alliance 2010 Consultant Survey indicates that strong alignment has become a critical selection criteria for gatekeepers. • 92% of consultants surveyed responded that alignment issues are part of their manager search criteria. • The two most important alignment issues for survey respondents were ownership structure and long-term incentives. |
![]() Summary |
![]() Summary of Strategic Priorities Ongoing Priorities • Serve clients attentively • Generate competitive investment performance • Service consultant relationships • Leverage referral sources at Westwood Trust • Increase visibility of WHG stock Near Term Priorities • Match manufacturing capability with distribution partners through Subadvisory opportunities • Expand awareness of WHG Funds with Private Wealth Advisory firms and Defined Contribution Consultants • Invest in client reporting, branding, work environment and technology enhancements • Cultivate new “R&D” products • Corporate development opportunities • Evaluate options for International, Emerging Markets and Global investment management capabilities Page 25 |
![]() www.westwoodgroup.com 200 Crescent Court Suite 1200 Dallas, Texas 75201 T. 214.756.6900 |
![]() Disclosures |
![]() Economic Earnings Reconciliation Economic Earnings Reconciliation ($ thousands) 2005 2006 2007 2008 2009 2010 GAAP net income 3,636 $ 4,508 $ 7,944 $ 10,543 $ 7,895 $ 11,280 $ Add: Restricted stock expense 2,114 4,500 5,316 6,735 7,666 9,269 Add: Stock option expense 250 126 - - - - Add: Intangible amortization - - - - 13 155 Add: Tax benefit from goodwill amortization - - - - 5 59 Less: Cumulative effect of change in accounting principle - (39) - - - - Non-GAAP economic earnings 6,000 $ 9,095 $ 13,260 $ 17,278 $ 15,579 $ 20,763 $ |
![]() LargeCap Value Disclosure Information Year Gross- of-Fees Return Net-of- Fees Return Russell 1000 Value S&P 500 Number of Portfolios Dispersion Total Composite Assets ($Mils) Percentage of Firm Assets (%) Percentage of Non-Fee Paying Portfolios (%) Total Firm Assets (%) 2010 13.7% 13.3% 15.5% 15.1% 47 0.3 $5,057.0 48.0% 0.0% $10,530.8 2009 14.5% 14.2% 19.7% 26.5% 46 0.5 $4,375.5 46.9% 0.0% $9,322.6 2008 -32.4% -32.7% -36.9% -37.0% 36 0.3 $3,142.0 48.1% 0.0% $6,538.0 2007 13.3% 12.9% -0.2% 5.5% 34 0.3 $2,921.7 41.1% 0.0% $7,113.2 2006 19.9% 19.5% 22.3% 15.8% 32 0.1 $2,368.8 43.4% 0.0% $5,455.9 2005 15.8% 15.3% 7.1% 4.9% 32 0.3 $2,656.2 57.7% 0.0% $4,606.5 2004 14.2% 13.7% 16.5% 10.9% 39 0.3 $2,572.6 67.7% 0.0% $3,797.6 2003 24.8% 24.3% 30.0% 28.7% 42 0.5 $2,341.3 61.4% 0.0% $3,815.3 2002 -15.7% -16.1% -15.5% -22.1% 38 0.5 $1,822.5 45.4% 0.0% $4,014.6 2001 -8.2% -8.6% -5.6% -11.9% 35 0.4 $1,880.7 46.8% 0.0% $4,022.9 2000 13.5% 13.0% 7.0% -9.2% 33 0.6 $1,637.3 46.1% 0.0% $3,551.7 The standard fee schedule for LargeCap Equity institutional accounts is 0.75% on the first $25 million, negotiable thereafter. Westwood Management Corp. claims compliance with the Global InvestmentPerformance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The LargeCap Value Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. The LargeCap composite includes all taxable and tax-exempt, fee-paying fully discretionary accounts invested primarily in equity securities with market capitalizations above $7.5 billion and having comparable objectives. Inception Date January 1, 1987. The minimum portfolio size for inclusion in the LargeCap Composite is $5 million beginning 1/1/06. PERFORMANCE RESULTS: LARGECAP EQUITY COMPOSITE January 1, 2000 through December 31, 2010 Reporting Currency: USD Creation Date: January 1994 The LargeCap Composite is benchmarked against the Russell 1000 Value. The Russell 1000 Value Index is an unmanaged market index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The Russell 1000 Index is an unmanaged market index that measures the performance of the 1000 largest companies in the Russell 3000 Index. The S&P 500 Index covers 500 companies of the U.S. markets, is capitalization weighted, and includes a representative sample of leading companies in leading industries. The S&P 500 Index is an unmanaged market index. LARGECAP EQUITY LARGECAP EQUITY COMPOSITE RETURNS COMPOSITE RETURNS Gross of Fees Net of Fees S&P 500 Gross of Fees Net of Fees S&P 500 ANNUALIZED RETURNS CALENDAR YEAR RETURNS 1 Year 13.7 % 13.3 % 15.5 % 15.1 % 2010 13.7 % 13.3 % 15.5 % 15.1 % 2 Years 14.1 % 13.7 % 17.6 % 20.6 % 2009 14.5 % 14.2 % 19.7 % 26.5 % 3 Years -4.2 % -4.5 % -4.4 % -2.9 % 2008 -32.4 % -32.7 % -36.9 % -37.0 % 4 Years -0.1 % -0.4 % -3.4 % -0.8 % 2007 13.3 % 12.9 % -0.2 % 5.5 % 5 Years 3.6 % 3.3 % 1.3 % 2.3 % 2006 19.9 % 19.5 % 22.3 % 15.8 % 6 Years 5.6 % 5.2 % 2.2 % 2.7 % 2005 15.8 % 15.3 % 7.1 % 4.9 % 7 Years 6.8 % 6.4 % 4.1 % 3.9 % 2004 14.2 % 13.7 % 16.5 % 10.9 % 8 Years 8.9 % 8.4 % 7.1 % 6.7 % 2003 24.8 % 24.3 % 30.0 % 28.7 % 9 Years 5.8 % 5.4 % 4.3 % 3.0 % 2002 -15.7 % -16.1 % -15.5 % -22.1 % 10 Years 4.3 % 3.9 % 3.3 % 1.4 % 2001 -8.2 % -8.7 % -5.6 % -11.9 % 11 Years 5.1 % 4.7 % 3.6 % 0.4 % 2000 13.5 % 13.1 % 7.0 % -9.1 % 12 Years 5.8 % 5.4 % 3.9 % 2.0 % 1999 13.8 % 13.3 % 7.4 % 21.0 % 13 Years 7.0 % 6.5 % 4.8 % 3.8 % 1998 21.5 % 20.6 % 15.6 % 28.6 % 14 Years 8.7 % 8.2 % 6.7 % 5.7 % 1997 33.6 % 32.7 % 35.2 % 33.4 % 15 Years 9.9 % 9.3 % 7.6 % 6.8 % 1996 27.8 % 26.9 % 21.6 % 23.0 % 16 Years 11.6 % 11.0 % 9.3 % 8.5 % 1995 40.5 % 39.3 % 38.4 % 37.6 % 17 Years 11.1 % 10.5 % 8.6 % 8.0 % 1994 4.2 % 3.5 % -2.0 % 1.3 % 18 Years 11.6 % 11.0 % 9.1 % 8.2 % 1993 19.2 % 18.5 % 18.1 % 10.1 % 19 Years 11.4 % 10.8 % 9.4 % 8.1 % 1992 9.0 % 8.3 % 13.8 % 7.6 % 20 Years 12.0 % 11.4 % 10.1 % 9.1 % 1991 24.7 % 23.9 % 24.6 % 30.5 % 21 Years 10.9 % 10.2 % 9.2 % 8.5 % 1990 -9.2 % -10.0 % -8.1 % -3.1 % 22 Years 11.8 % 11.1 % 9.8 % 9.5 % 1989 32.5 % 31.7 % 25.2 % 31.7 % 23 Years 12.0 % 11.3 % 10.4 % 9.8 % 1988 16.6 % 15.7 % 23.2 % 16.6 % 24 Years 11.8 % 11.1 % 10.0 % 9.6 % 1987 7.8 % 6.9 % 0.5 % 5.3 % Since Inception (1/1/87) 11.8 % 11.1 % 10.0 % 9.6 % 1986 21.5 % 20.5 % 20.7 % 22.7 % Russell 1000 Value Russell 1000 Value Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. |
![]() SMidCap Value Disclosure Information* Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. * Due to capacity constraints, this product closed to new investors effective October 1, 2009. Year Gross of Fees Return Net of Fees Return Russell 2500 Russell 2500 Value Number of Portfolios Dispersion Total Assets at End of Period Percentage of Firm Assets Percentage of Non-Fee Paying Portfolios Total Firm Assets 2010 28.1% 27.2% 26.7% 24.8% 23 0.4 $1,877.2 17.8% 0.0% $10,530.8 2009 35.0% 34.3% 34.4% 27.7% 21 0.5 $1,559.7 16.7% 0.0% $9,322.6 2008 -26.4% -26.7% -36.8% -32.0% 16 0.2 $917.4 14.0% 0.0% $6,538.0 2007 12.3% 11.7% 1.4% -7.3% 14 0.3 $1,091.2 15.3% 0.0% $7,113.2 2006 22.2% 21.6% 16.2% 20.2% 9 0.2 $784.5 14.4% 0.0% $5,455.9 2005 20.8% 20.5% 8.1% 7.7% 4 0.1 $554.9 12.0% 0.0% $4,606.5 2004 28.1% 27.6% 18.3% 21.6% 2 0.1 $77.9 2.1% 0.0% $3,797.6 2003 34.1% 33.6% 45.5% 44.9% 2 0.3 $50.5 1.3% 0.0% $3,815.3 2002 1.2% 0.7% -17.8% -9.9% 2 0.1 $32.7 0.8% 0.0% $4,014.6 2001 -10.8% -11.1% 1.2% 9.7% 2 1.4 $31.8 0.8% 0.0% $4,022.9 2000 7.4% 7.0% 4.3% 20.8% 2 0.2 $35.9 1.0% 0.0% $3,551.7 The standard fee schedule for SMidCap institutional accounts is 0.85% on the first $25 million, negotiable thereafter. Westwood Management Corp. claims compliance with the Global InvestmentPerformance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The SmidCap Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. The SMidCap Composite consists of tax-exempt and taxable, fee-paying fully discretionary accounts invested primarily in equity securities with market capitalizations between $500 million and $8.0 billion and having comparable objectives. The minimum portfolio size for inclusion in the SMidCap Composite is $5 million beginning 1/1/06. PERFORMANCE RESULTS: SMIDCAP COMPOSITE January 1, 2000 through December 31, 2010 Reporting Currency: USD Creation Date: July 1997 The Russell 2500 Index is an unmanaged index of the shares of small and mid-sized U.S. companies. The Russell 2500 Index is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap opportunity set. The Russell 2500 includes the smallest 2500 securities in the Russell 3000. The Russell 2500 Value contains those Russell 2500 Index companies with lower-price-to-book ratios and lower forecasted growth. SMIDCAP EQUITY COMPOSITE RETURNS Gross of Fees Net of Fees Russell 2500 Russell 2500 Value ANNUALIZED RETURNS 1 Year 28.1 % 27.2 % 26.7 % 24.8 % 2 Years 31.5 % 30.7 % 30.5 % 26.2 % 3 Years 8.4 % 7.8 % 2.5 % 2.7 % 4 Years 9.4 % 8.7 % 2.2 % 0.1 % 5 Years 11.8 % 11.2 % 4.9 % 3.9 % 6 Years 13.3 % 12.7 % 5.4 % 4.5 % 7 Years 15.3 % 14.7 % 7.1 % 6.8 % 8 Years 17.5 % 16.9 % 11.3 % 10.9 % 9 Years 15.5 % 15.0 % 7.6 % 8.4 % 10 Years 12.6 % 12.1 % 7.0 % 8.5 % 11 Years 12.1 % 11.6 % 6.7 % 9.6 % 12 Years 13.5 % 13.0 % 8.1 % 8.9 % 13 Years 13.5 % 13.0 % 7.5 % 8.0 % Since Inception (7/1/97) 14.4 % 13.9 % 8.1 % 8.9 % CALENDAR YEARS 2010 28.1 % 27.2 % 26.7 % 24.8 % 2009 35.0 % 34.3 % 34.4 % 27.7 % 2008 -26.4 % -26.7 % -36.8 % -32.0 % 2007 12.3 % 11.7 % 1.4 % -7.3 % 2006 22.2 % 21.6 % 16.2 % 20.2 % 2005 20.8 % 20.5 % 8.1 % 7.7 % 2004 28.1 % 27.6 % 18.3 % 21.6 % 2003 34.1 % 33.6 % 45.5 % 44.9 % 2002 1.2 % 0.7 % -17.8 % -9.9 % 2001 -10.8 % -11.1 % 1.2 % 9.7 % 2000 7.4 % 7.0 % 4.3 % 20.8 % 1999 30.1 % 29.7 % 24.2 % 1.5 % 1998 13.7 % 13.0 % 0.4 % -1.9 % |
![]() SmallCap Value Disclosure Information SMALLCAP VALUE COMPOSITE RETURNS Gross of Fees Net of Fees Russell 2000 Value ANNUALIZED RETURNS 1 Year 24.6 % 23.7 % 24.5 % 2 Years 22.9 % 22.1 % 22.5 % 3 Years 1.4 % 0.8 % 2.2 % 4 Years 2.0 % 1.4 % -1.0 % 5 Years 6.1 % 5.5 % 3.5 % 6 Years 6.8 % 6.3 % 3.7 % 7 Years 9.6 % 9.1 % 6.2 % Since Inception (1/1/04) 9.6 % 9.1 % 6.2 % CALENDAR YEARS 2010 24.6 % 23.7 % 24.5 % 2009 21.4 % 20.6 % 20.6 % 2008 -31.0 % -31.4 % -28.9 % 2007 3.6 % 3.2 % -9.8 % 2006 24.1 % 23.7 % 23.5 % 2005 10.5 % 10.1 % 4.7 % 2004 28.4 % 28.1 % 22.3 % Year Gross of Fees Return Net of Fees Return Russell 2000 Value Number of Portfolios Dispersion Total Assets Percentage at End of Period of Firm Assets Percentage of Non-Fee Paying Portfolios Total Firm Assets 2010 24.6% 23.7% 24.5% 8 1.0 $204.6 1.9% 0.0% $10,530.8 2009 21.4% 20.6% 20.6% 11 0.3 $242.2 2.6% 0.0% $9,322.6 2008 -31.0% -31.4% -28.9% 9 0.4 $177.2 2.7% 0.0% $6,538.0 2007 3.6% 3.2% -9.8% 5 0.9 $134.5 1.9% 0.0% $7,113.2 2006 24.1% 23.7% 23.5% 4 0.2 $125.7 2.3% 0.0% $5,455.9 2005 10.5% 10.1% 4.7% 3 0.5 $38.0 0.8% 0.0% $4,606.5 2004 28.4% 28.1% 22.3% 3 0.3 $37.7 1.0% 0.0% $3,797.6 The SmallCap Value composite consists of taxable and tax-exempt, fee-paying fully discretionary accounts whose main objective is to invest primarily in equity securities with market capitalizations between $100 million and $2.5 billion and having comparable objectives. PERFORMANCE RESULTS: SMALLCAP VALUE COMPOSITE January 1, 2004 through December 31, 2010 Reporting Currency: USD Creation Date: January 2004 The minimum portfolio size for inclusion in the SmallCapValue Composite is $5 million beginning 1/1/06. The Russell 2000 Value Index is an unmanaged index that measures the performance those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The standard fee schedule for SmallCap Value institutional accounts is 1.00% on the first $10 million, negotiable thereafter. Westwood Management Corp. claims compliance with the Global InvestmentPerformance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The SmallCap Value Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. |
![]() AllCap Value Disclosure Information ALLCAP VALUE COMPOSITE RETURNS Gross of Fees Net of Fees Russell 3000 Value ANNUALIZED RETURNS 1 Year 18.6 % 17.9 % 16.2 % 2 Years 19.7 % 19.0 % 18.0 % 3 Years -2.1 % -2.7 % -3.9 % 4 Years 1.2 % 0.6 % -3.2 % 5 Years 4.7 % 4.1 % 1.5 % 6 Years 6.5 % 6.0 % 2.3 % 7 Years 8.3 % 7.8 % 4.3 % 8 Years 10.6 % 10.2 % 7.3 % Since Inception (7/1/02) 8.2 % 7.8 % 5.3 % CALENDAR YEARS 2010 18.6 % 17.9 % 16.2 % 2009 20.8 % 20.2 % 19.8 % 2008 -34.4 % -34.9 % -36.3 % 2007 11.5 % 11.0 % -1.0 % 2006 20.0 % 19.5 % 22.3 % 2005 16.0 % 15.7 % 6.9 % 2004 19.5 % 19.3 % 16.9 % 2003 28.6 % 28.4 % 31.1 % 2002 1 -12.9 % -13.0 % -11.7 % 1. Inception Date: 7/1/02 Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. The AllCap Value Composite includes all taxable and tax-exempt, fee-paying fully discretionary accounts generally invested in equity securities with market capitalizations greater than $100 million at time of purchase and having comparable objectives. The minimum portfolio size for inclusion in the AllCap Value Composite is $5 million beginning 1/1/06. The composite is benchmarked against the Russell 3000 Index. The Russell 3000 Value Index is an unmanaged index that measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The standard fee schedule for AllCap Value institutional separate account is 0.80% on the first $10 million, negotiable thereafter. Westwood Management Corp. claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The AllCap Value Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. Year Gross of Fees Return Net of Fees Return Russell 3000 Value Number of Portfolios Dispersion Total Assets at End of Period Percentage of Firm Assets Total Firm Assets 2010 18.6% 17.9% 16.2% 4 0.82 $103.3 1.0% $10,530.8 2009 20.8% 20.2% 19.8% 4 0.00 $90.1 1.0% $9,322.6 2008 -34.4% -34.9% -36.3% 1 0.00 $16.8 0.3% $6,538.0 2007 11.5% 11.0% -1.0% 3 0.00 $39.0 0.5% $7,113.2 2006 20.0% 19.5% 22.3% 1 0.00 $18.5 0.3% $5,455.9 2005 16.0% 15.7% 6.9% 1 0.00 $12.5 0.3% $4,606.5 2004 19.5% 19.3% 16.9% 1 0.00 $2.5 0.1% $3,797.6 2003 28.6% 28.4% 31.1% 1 0.00 $96.8 2.5% $3,815.3 2002¹ -12.9% -13.0% -11.7% 1 0.00 $63.3 1.6% $4,014.6 1. Inception Date 7/1/02 PERFORMANCE RESULTS: ALLCAP VALUE COMPOSITE July 1, 2002 through December 31, 2010 Reporting Currency: USD Creation Date: July 2002 |
![]() Income Opportunity Disclosure Information A complete list and description of the firm's composites and historical performance records are available upon request. The calculation of returns is computed on a monthly basis (starting 1/1/02) for the composites; including accrued dividends and interest income. Securities are valued as of trade-date. Monthly returns are asset-weighted based on the portfolio market values at the beginning of each month. Accounts in the composite, must be under management for the entire reporting period. The currency used to express performance in all composites is US dollars. Additional information regarding policies for calculating and reporting returns is available upon request. The comparative index returns include interest and dividend income but do not include potential transaction costs or management fees. Performance results are calculated gross of investment management fees but after all trading expenses. The net of fees composite returns may not be reflective of performance in your account. Actual results may vary depending on level of assets and fee schedule. Performance results net of management fees reflect the actual rate of fees paid and after all trading expenses. All fees are stated in annual rates and are typically billed quarterly. More information on Westwood's management fees is available upon request in its Form ADV, Part II. Internal dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire year. Westwood Management is in compliance with GIPS® standards since January 1, 1993. Westwood Management Corp. (Westwood) has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Past performance is no guarantee of future results. Westwood is a registered investment advisory firm that provides investment supervisory services, managing equity and fixed income portfolios. Westwood is a wholly owned subsidiary of Westwood Holdings Group, Inc. (NYSE: WHG). Year Gross of Fees Return Net of Fees Return S&P 500 Nareit 3 Mo T-Bill 10 Yr Treas Note Benchmark¹ Number of Portfolios Dispersion Total Assets at End of Period Percentage of Firm Assets Total Firm Assets 2010 15.2% 14.5% 15.1% 28.0% 0.1% 8.1% 13.1% 3 0.8 $313.2 3.0% $10,530.8 2009 13.9% 13.3% 26.5% 28.0% 0.2% -9.9% 12.0% 3 1.3 $203.5 2.2% $9,322.6 2008 -6.7% -7.1% -37.0% -37.7% 1.8% 20.3% -14.6% 3 4.3 $144.1 2.2% $6,538.0 2007 0.8% 0.2% 5.5% -15.7% 4.7% 9.8% 1.0% 3 1.1 $190.6 2.7% $7,113.2 2006 14.1% 13.5% 15.8% 35.1% 4.8% 1.4% 13.7% 5 0.2 $235.0 4.3% $5,455.9 2005 5.7% 5.4% 4.9% 12.2% 3.0% 2.0% 5.7% 20 0.3 $119.6 2.6% $4,606.5 2004 16.8% 16.3% 10.9% 31.6% 1.2% 4.9% 12.0% 2 0.3 $32.7 0.9% $3,797.6 2003 23.5% 23.2% 28.7% 37.1% 1.1% 1.3% 16.3% 2 0.2 $18.9 0.5% $3,815.3 1. 25%S&P500/25%Nareit Equity/25%Treasury Bill/25%10-Yr. Treasury Note PERFORMANCE RESULTS: INCOME OPPORTUNITY January 1, 2003 through December 31, 2010 Reporting Currency: USD Creation Date: January 2003 The Income Opportunity composite includes all taxable and tax-exempt, fee-paying fully discretionary accounts whose primary investment objective is to provide current income. A secondary objective is to provide the opportunity for long-term capital appreciation. The Income Opportunity Composite is compared to a four-part benchmark (25% S&P 500, 25% NAREIT, 25% 10-Yr Treasury, 25% 3-Month T-Bill), which is rebalanced monthly. The S&P 500 covers 500 companies of the US markets, is capitalization weighted, and includes a representative sample of leading companies in leading industries. The NAREIT Equity Index is an index of all tax-qualified equity REITs listed on the NYSE, AMEX, and NASDAQ, which have 75% or more of their gross invested book assets invested directly or indirectly in the equity ownership of real estate. Investments cannot be made directly into the NAREIT Equity Index. The return of the 3-month Treasury bill and the 10-year Treasury note are calculated by Lehman Brothers each month and published in their Global Bond Index. All of the indices described above are unmanaged market indices. The minimum portfolio size for inclusion in the Income Opportunity Composite is $5 million beginning 1/1/06. In January 2005, the name of this composite was changed from the Dynamic Income Composite to the Income Opportunity Composite. The standard fee schedule for Income Opportunity Institutional accounts is 0.80% on the first $25 million, negotiable thereafter. Westwood Management Corp. claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Income Opportunity Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. Westwood discontinued the use of the 45% S&P 500 and 55% LBG/C Intermediate benchmark on 1/1/05. The benchmark was no longer representative of the characteristics of the Composite. INCOME OPPORTUNITY COMPOSITE RETURNS Gross of Fees Net of Fees ANNUALIZED RETURNS 1 Year 15.2 % 14.5 % 15.1 % 28.0 % 0.1 % 8.1 % 13.1 % 2 Years 14.5 % 13.9 % 20.6 % 28.0 % 0.2 % -1.3 % 12.6 % 3 Years 7.0 % 6.4 % -2.9 % 0.7 % 0.7 % 5.4 % 2.7 % 4 Years 5.4 % 4.8 % -0.8 % -3.7 % 1.7 % 6.5 % 2.3 % 5 Years 7.1 % 6.5 % 2.3 % 3.0 % 2.3 % 5.5 % 4.5 % 6 Years 6.9 % 6.3 % 2.7 % 4.5 % 2.4 % 4.9 % 4.7 % 7 Years 8.2 % 7.7 % 3.9 % 8.0 % 2.2 % 4.9 % 5.7 % 8 Years 10.0 % 9.5 % 6.7 % 11.3 % 2.1 % 4.4 % 7.0 % Since Inception (1/1/03) 10.0 % 9.5 % 6.7 % 11.3 % 2.1 % 4.4 % 7.0 % 2010 15.2 % 14.5 % 15.1 % 28.0 % 0.1 % 8.1 % 13.1 % 2009 13.9 % 13.3 % 26.5 % 28.0 % 0.2 % -9.9 % 12.0 % 2008 -6.7 % -7.1 % -37.0 % -37.7 % 1.8 % 20.3 % -14.6 % 2007 0.8 % -0.8 % 5.5 % -15.7 % 4.7 % 9.8 % 1.0 % 2006 14.1 % 13.5 % 15.8 % 35.1 % 4.8 % 1.4 % 13.7 % 2005 5.7 % 5.4 % 4.9 % 12.2 % 3.0 % 2.0 % 5.7 % 2004 16.8 % 16.3 % 10.9 % 31.6 % 1.2 % 4.9 % 12.0 % 2003 23.5 % 23.2 % 28.7 % 37.1 % 1.1 % 1.3 % 16.3 % 1 . 25%S&P500/25%Nareit Equity/25%Treasury Bill/25%10-Yr. Treasury Note Benchmark1 S&P 500 Nareit 3 Mo T-Bill 10 Yr Treas Note Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. |
![]() Balanced Disclosure Information Year Gross of Fees Return Net of Fees Return 60% S&P 500/40% BCG/C Number of Portfolios Dispersion Total Assets at End of Period Percentage of Firm Assets Total Firm Assets 2010 10.2% 9.6% 12.2% 2 0.0 $31.9 0.3% $10,530.8 2009 11.2% 10.7% 17.7% 2 0.1 $31.2 0.3% $9,322.6 2008 -18.5% -19.0% -21.9% 2 0.1 $28.9 0.4% $6,538.0 2007 10.8% 10.1% 6.3% 3 0.2 $65.0 0.9% $7,113.2 2006 13.4% 12.7% 10.9% 3 0.2 $57.6 1.1% $5,455.9 2005 10.9% 10.2% 4.0% 3 0.2 $49.5 1.1% $4,606.5 2004 9.4% 8.8% 8.2% 4 0.1 $73.5 1.9% $3,797.6 2003 16.1% 15.3% 18.8% 3 0.2 $48.5 1.3% $3,815.3 2002 -4.8% -5.4% -9.5% 5 0.5 $87.0 2.2% $4,014.6 2001 -1.1% -1.7% -3.7% 6 0.3 $164.1 4.1% $4,022.9 2000 13.3% 12.4% -1.0% 5 0.2 $100.8 2.8% $3,551.7 The standard fee schedule for Balanced institutional accounts is 0.625% on the first $25 million, negotiable thereafter. PERFORMANCE RESULTS: BALANCED COMPOSITE January 1, 2000 through December 31, 2010 Westwood Management Corp. claims compliance with the Global InvestmentPerformance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Balanced Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon A composite of taxable and tax-exempt, fee-paying fully discretionary accounts invested in LargeCap Equity and investment grade fixed income securities and having comparable objectives The typical allocation for the composite is 60% equity and 40% fixed income. Inception Date: January 1, 1987 The minimum portfolio size for inclusion in the Balanced Composite is $5 million beginning 1/1/06. Creation Date: January 1994 Reporting Currency: USD The Balanced composite is benchmarked 60% against the S&P 500 Index and 40% against the Barclays Government/Credit Index (BCG/C) and is rebalanced monthly. The S&P 500 Index covers 500 companies of the U.S. markets, is capitalization weighted, and includes a representative sample of leading companies in leading industries. The S&P 500 Index is an unmanaged market index. The Barclays Government/Credit Index (BCG/C) is an unmanaged market index consisting of approximately 5,300 corporate and government issues with at least $100 million outstanding for BALANCED BALANCED COMPOSITE RETURNS COMPOSITE RETURNS Gross of Fees Net of Fees 60% S&P500 / 40% BCG/C Gross of Fees Net of Fees 60% S&P500 / 40% BCG/C ANNUALIZED RETURNS CALENDAR YEARS 1 Year 10.2% 9.6% 12.2% 2010 10.2% 9.6% 12.2% 2 Years 10.7% 10.2% 14.9% 2009 11.2% 10.7% 17.7% 3 Years 0.0% -0.6% 1.0% 2008 -18.5% -19.0% -21.9% 4 Years 2.6% 2.0% 2.3% 2007 10.8% 10.1% 6.3% 5 Years 4.7% 4.1% 4.0% 2006 13.4% 12.7% 10.9% 6 Years 5.7% 5.1% 4.0% 2005 10.9% 10.2% 4.0% 7 Years 6.2% 5.6% 4.6% 2004 9.4% 8.8% 8.3% 8 Years 7.4% 6.8% 6.3% 2003 16.1% 15.3% 18.8% 9 Years 6.0% 5.3% 4.4% 2002 -4.8% -5.4% -9.5% 10 Years 5.2% 4.6% 3.5% 2001 -1.1% -1.7% -3.7% 11 Years 5.9% 5.3% 3.1% 2000 13.3% 12.4% -0.9% 12 Years 6.1% 5.5% 3.8% 1999 7.6% 7.0% 11.4% 13 Years 6.7% 6.0% 5.1% 1998 14.0% 13.2% 21.4% 14 Years 7.8% 7.2% 6.3% 1997 23.6% 22.8% 23.7% 15 Years 8.4% 7.8% 6.8% 1996 17.5% 16.8% 14.7% 16 Years 9.7% 9.0% 8.1% 1995 30.5% 29.4% 30.0% 17 Years 9.1% 8.4% 7.6% 1994 0.3% -0.2% -0.6% 18 Years 9.4% 8.8% 7.8% 1993 15.7% 14.8% 10.5% 19 Years 9.4% 8.7% 7.8% 1992 8.0% 7.5% 7.7% 20 Years 10.0% 9.4% 8.6% 1991 23.2% 22.6% 24.8% 21 Years 9.6% 8.9% 8.2% 1990 1.1% 0.5% 1.6% 22 Years 10.2% 9.6% 8.9% 1989 24.7% 24.1% 24.6% 23 Years 10.4% 9.8% 9.1% 1988 15.9% 15.2% 13.0% 24 Years 10.4% 9.7% 8.9% 1987 8.0% 7.5% 5.5% Since Inception (1/1/87) 10.4% 9.7% 8.9% Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. |
![]() Core Fixed Income Disclosure Information Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights Reserved. Year Gross of Fees Return Net of Fees Return BCGC Number of Portfolios Dispersion Percentage of Carve- Outs (%) Total Composite Assets ($Mils) Percentage of Firm Assets (%) Total Firm Assets ($Mils) 2010 5.9% 5.6% 6.6% 3 0.1 0.0% $105.8 1.0% $10,530.8 2009 5.3% 5.0% 4.5% 6 0.4 17.5% $117.2 1.3% $9,322.6 2008 8.3% 8.0% 5.7% 6 0.4 16.6% $110.9 1.7% $6,538.0 2007 7.3% 7.1% 7.2% 7 0.2 23.9% $151.8 2.1% $7,113.2 2006 4.1% 3.8% 3.8% 7 0.1 26.7% $128.5 2.4% $5,455.9 2005 2.9% 2.6% 2.4% 7 0.2 26.4% $86.8 1.9% $4,606.5 2004 3.8% 3.5% 4.2% 7 0.2 33.1% $74.0 1.9% $3,797.6 2003 2.8% 2.5% 4.7% 10 0.2 31.6% $78.3 2.1% $3,815.3 2002 10.9% 10.6% 11.0% 13 0.2 30.6% $105.7 2.6% $4,014.6 2001 8.3% 7.8% 8.5% 12 0.1 34.1% $97.4 2.4% $4,022.9 2000 12.6% 12.1% 11.9% 12 0.2 37.1% $93.2 2.6% $3,551.7 Westwood Management Corp. claims compliance with the Global InvestmentPerformance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Westwood Management has been independently verified for the periods January 1, 1995 through December 31, 2009. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Fixed Income Composite has been examined for the periods January 1, 1995 through December 31, 2009. The verification and performance examination reports are available upon request. A composite of taxable and tax-exempt, fee-paying fully discretionary accounts that typically invests in investment grade fixed income securities with duration of 4.5 to 6.5 years and having comparable objectives. Inception Date: January 1, 1985. The minimum portfolio size for inclusion in the Fixed Composite is $5 million beginning 1/1/06. PERFORMANCE RESULTS: FIXED INCOME COMPOSITE January 1, 2000 through December 31, 2010 Reporting Currency: USD Creation Date: January 1994 Westwood ulitizes the beginning of period cash allocation method for all carve-out returns. Carve-Out returns were no longer utilized beginning January 1, 2010. The Fixed Income Composite is benchmarked against the Barclays Government/Credit Index (LBG/C). The Barclays Government/Credit Index is an unmanaged market index consisting of approximately 5,300 corporate and government issues with at least $100 million outstanding for government issues and $25 million for corporates, and greater than one-year maturity. The index is a fully invested index. The standard fee schedule for Fixed Income institutional accounts is 0.40% on the first $10 million, negotiable thereafter. FIXED INCOME FIXED INCOME COMPOSITE RETURNS COMPOSITE RETURNS Gross of Fees Net of Fees Gross of Fees Net of Fees ANNUALIZED RETURNS CALENDAR YEARS 1 Year 5.9 % 5.6 % 6.6 % 2010 5.9 % 5.6 % 6.6 % 2 Years 5.6 % 5.3 % 5.6 % 2009 5.3 % 5.0 % 4.5 % 3 Years 6.5 % 6.2 % 5.6 % 2008 8.3 % 8.0 % 5.7 % 4 Years 6.7 % 6.4 % 6.0 % 2007 7.3 % 7.1 % 7.2 % 5 Years 6.2 % 5.9 % 5.6 % 2006 4.1 % 3.8 % 3.8 % 6 Years 5.6 % 5.3 % 5.0 % 2005 2.9 % 2.6 % 2.4 % 7 Years 5.4 % 5.1 % 4.9 % 2004 3.8 % 3.5 % 4.2 % 8 Years 5.0 % 4.8 % 4.9 % 2003 2.8 % 2.5 % 4.7 % 9 Years 5.7 % 5.4 % 5.5 % 2002 10.9 % 10.6 % 11.0 % 10 Years 5.9 % 5.6 % 5.8 % 2001 8.3 % 7.8 % 8.5 % 11 Years 6.5 % 6.2 % 6.4 % 2000 12.6 % 12.1 % 11.9 % 12 Years 5.9 % 5.5 % 5.6 % 1999 -1.0 % -1.5 % -2.2 % 13 Years 6.1 % 5.8 % 5.9 % 1998 8.9 % 8.3 % 9.5 % 14 Years 6.4 % 6.0 % 6.2 % 1997 9.8 % 9.4 % 9.8 % 15 Years 6.1 % 5.8 % 6.0 % 1996 2.8 % 2.3 % 2.9 % 16 Years 6.8 % 6.4 % 6.8 % 1995 17.6 % 17.3 % 19.2 % 17 Years 6.2 % 5.8 % 6.1 % 1994 -3.5 % -3.9 % -3.5 % 18 Years 6.5 % 6.1 % 6.4 % 1993 12.7 % 12.2 % 11.0 % 19 Years 6.6 % 6.2 % 6.5 % 1992 8.4 % 8.0 % 7.6 % 20 Years 7.2 % 6.8 % 6.9 % 1991 18.1 % 17.6 % 16.1 % 21 Years 7.3 % 6.9 % 7.0 % 1990 9.2 % 8.7 % 8.3 % 22 Years 7.5 % 7.1 % 7.3 % 1989 12.1 % 11.5 % 14.2 % 23 Years 7.6 % 7.2 % 7.3 % 1988 9.3 % 8.8 % 7.6 % 24 Years 7.5 % 7.1 % 7.1 % 1987 6.4 % 5.9 % 2.3 % 25 Years 7.7 % 7.3 % 7.4 % 1986 12.9 % 12.3 % 15.6 % 26 Years 8.3 % 7.8 % 7.9 % 1985 22.8 % 22.3 % 21.3 % Since Inception (1/1/85) 8.3 % 7.8 % 7.9 % BCGC BCGC |