10 Year Anniversary July 2012 Exhibit 99.1 |
Key Objectives: 2002 - 2012 • Build a firm that transcends a talented founder by creating a world-class research department supporting multiple products that produce superior returns for our clients. • Manage our company the same way as companies that we would own in our clients’ portfolios: • Generate strong free cash flow • High incidence of insider ownership across all levels of the business • Shareholder friendly philosophy of sharing excess cash in the form of dividend or stock buybacks • Stable to improving Return on Equity • Meaningful dividend payout • Strong and improving balance sheet • Strong record of value creation • Acquire mutual fund assets opportunistically and private wealth businesses selectively • Build high quality businesses where demand supports potential for growth • Support our community with both time and resources • Create shareholder value and perform well vs. our peers and the broad market indices 2 |
Domestic Research Groups Westwood International Consumer/Health Care (CASH) Energy/Materials/Utilities (EMU) Financials/REITs (MONEY) Industrials/Technology (CHIPS) Global Research • 43 People • Attended schools in 10 states • 2 countries (US, China) • 7 CFA Charterholders • 8 advanced degrees • 14 Investment Professionals • 93 People • Attended schools in 23 states • 8 countries • 28 CFA Charterholders • 32 Advanced degrees • 38 Investment Professionals Long-Term Employee Retention 24 of 43 (55%) people employed in 2002 are still at Westwood* 33 of 52 (63%) people including Omaha are still at Westwood *Departures: 11 family/retirement; 4 new positions; 4 involuntary 3 Our Employees - 2012 Our Employees - 2002 Create a world class, independent Research Department staffed with talented professionals |
Develop and Support Multiple Product Investment Strategies LargeCap Value Balanced Enhanced Balanced Fixed Income LargeCap Value – SRI REIT SMidCap Value AllCap Value 4 Income Opportunity MLP SmallCap Value 130/30 MidCap Value Global Strategic Diversification SMidCap Value Plus+ Dividend Growth Emerging Markets Emerging Markets Plus+ Global Equity Global Dividend New products introduced LargeCap Value Balanced Enhanced Balanced Fixed Income LargeCap Value – SRI REIT SMidCap Value AllCap Value 7 16 4 2002 2012 International Domestic Investment Strategies Offered |
Generate Superior Performance for our Clients 5 0% 1% 2% 3% 4% 5% 6% 7% LargeCap Value Dividend Growth AllCap Value SMidCap Value Annualized Alpha Generation July 1, 2002 – June 30, 2012 |
Generate Superior Performance for our Clients 6 0% 1% 2% 3% 4% 5% Income Opportunity MLP SmallCap Value Annualized Alpha Generation of Newer Products Jan ‘03 – June ‘12 Jan ‘03 – June ‘12 Jan ‘04 – June ‘12 Inception – June 30, 2012 |
Manage our company in the same manner as portfolio companies Peer Comparison Generate strong free cash flow High incidence of insider ownership across all levels of the business Shareholder friendly philosophy of sharing excess cash in the form of dividend or stock buybacks Stable to improving Return on Equity Meaningful dividend payout Strong and improving balance sheet Strong record of value creation Westwood Peer Median Return on Equity 22.5% 22.1% Current Yield 4.0% 2.6% Dividend Payout 68% 42% Debt/Capital 0% 17% Insider Ownership 32% 9% 7 Peer group: AB, AMG, ART, BEN, BLK, CLMS, CNS, DHIL, EPHC, EV, FII, GBL, IVZ, JNS, PZN, TROW, VRTS, WDR |
Manage our company in the same manner as portfolio companies 8 GAMCO Investors Third Avenue Management LLC BlackRock The Vanguard Group Inc. Dimensional Fund Advisors, Inc. Northern Trust Investments Royce & Associates LLC State Street Global Advisors Directors and employees own 32% of Westwood Shareholders maintaining ownership for the past decade (since inception): 2002 Shareholders maintaining ownership for the past five years: 2007 Insider Ownership |
Quarterly Dividend History (per share) Excludes special dividends Manage our company in the same manner as portfolio companies Support a growing dividend 9 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q4 Q3 Q2 Q1 |
Manage our company in the same manner as portfolio companies Dividend History ($ per year) *data as of 6/30/12 • We have paid total dividends of $82 million since we have been public ($12.02/share) • WHG Dividend Yield 4.0% vs. asset management peer group median at 2.6%* 10 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 2012 Special Dividends Quarterly Dividends |
Manage our company in the same manner as portfolio companies 11 $15 $52 13.0% CAGR Debt, $0 Debt, $0 $17 $71 15.7% CAGR $0 $10 $20 $30 $40 $50 $60 $70 $80 6/30/2002 6/30/2012 Cash & Investments Debt Shareholders' Equity Maintain conservative and growing balance sheet |
Philadelphia Fund McCarthy Group Advisors 12 • Timely opportunity to purchase assets to enhance asset growth of Westwood Funds • Attractive, growing market with limited competition • Strong cultural alignment of values • High average account balances • Strong financial operating history • Will benefit from our operational efficiencies and product depth Acquire mutual fund assets opportunistically and private wealth businesses selectively |
Build high quality businesses where demand supports potential for growth 2002 $0 2012 $1.5 billion 13 Westwood Funds™ Lineup: Mutual fund assets have grown to 11% of total AUM $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Data as of 6/30/2012 Balanced Fund (WHGBX) Dividend Growth Fund (WHGDX) Short Duration High Yield Fund (WHGHX) Income Opportunity Fund (WHGIX, WWIAX) LargeCap Value Fund (WHGLX, WWLAX) SMidCap Fund (WHGMX) SMidCap Plus Fund (WHGPX) SmallCap Value Fund (WHGSX) |
Build high quality businesses where demand supports potential for growth Westwood International Advisors 14 • Consensus view of Global and Emerging markets as more of an attractive growth opportunity for investors vs. developed markets • Plan sponsors continue to re-balance asset allocation models with increased allocations to global and emerging market equities • Westwood International Advisors team has demonstrated success in the past and has been well received by prospective institutional clients |
Committed to supporting our community with both time and resources Served 27,300 meals 15 Sponsored and helped build 7 houses |
Trailing twelve months 16 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 Q2 2002 Q4 2002 Q2 2003 Q4 2003 Q2 2004 Q4 2004 Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Create shareholder value and perform well vs. peers and market Revenue History |
Create shareholder value and perform well vs. peers and market Market Cap History 17 $65 $115 $165 $215 $265 $315 $365 |
Market Cap History WHG vs. S&P 500 Indexed to 100 at 7/31/02 Create shareholder value and perform well vs. peers and market Market Cap History vs. broad market 18 0 50 100 150 200 250 300 350 400 450 500 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 WHG Market Value (15.7% annual growth) S&P 500 Market Value (3.9% annual growth) |
19 Create shareholder value and perform well vs. peers and market Performance Comparison WHG vs. S&P 500 and Russell 2000 Since listing on the NYSE in June 2002, WHG has outperformed both the S&P 500 and the Russell 2000 indices Time Period: 6/02 – 6/12 All values indexed to 100 Source: FactSet |
Total Return Since 2002 WHG Spin-off *data as of 6/30/12 Create shareholder value and perform well vs. peers and market Create shareholder value together + 20 Artio Global Investors Pzena Investment Mgmt Janus Capital Group Inc. Calamos Asset Management AllianceBernstein Holding LP Federated Investors, Inc. Gamco Investors Invesco Ltd. Waddell & Reed Financial Eaton Vance Corp. Affiliated Managers Group Franklin Resources Cohen & Steers WHG BlackRock, Inc. T. Rowe Price Group Virtus Investment Partners Epoch Holding Corp Diamond Hill Investment Group - 200% - 100% 0% 100% 200% 300% 400% 500% -86% -75% 54% -33% -32% -5% 54% 74% 76% 112% 162% 213% 254% 350% 361% 374% 2032% 1739% 671% - |
Employees – 10 years + 21 Susan Byrne Richard Jarvis Patricia Fraze Kellie Stark Brian Casey Randy Root C. J. MacDonald Michelle Neber Jackie Finley Stefanie kennedy Marcie Russmann Kim Calhoun Denise Vermett Sylvia Fry Crystal Leiva Andrea McMahon Rolanda Williams Jean Kenkel Kari Saenz Mark Freeman Melissa McMillian Art Burtscher Susan Ware Nora Donnelly Lisa Dong Monica Cornwall Jay Singhania Susan Burkhard Bill Hardcastle Kim Gor Craig Whitten |
Employees – 5 years + 22 Graham Wong Todd Williams Porter Montgomery David Spika Scott Lawson Laura Willmann Julie Gerron Michael Wall Ragen Stienke Kara Axley Nicholas Wilwerding Nick English Martha Gummer Clodette Turner Mark Dunbar Joan Bonn Natalie Harrison |
Domestic Equity Strategies SmallCap Value 1/1/04 SMidCap Value * 1/1/02 closed SMidCap Value Plus+ 7/1/10 MidCap Value 10/1/07 LargeCap Value 1/1/87 AllCap Value 7/1/02 Dividend Growth 11/1/93 Specialized Solutions Income Opportunity 1/1/03 LargeCap Value – Socially Responsible Investing 1/1/98 Infrastructure Renewal 1/1/03 Enhanced Balanced™ 1/1/93 *The institutional track record started January 1, 2002. Westwood Products Global/Emerging Markets Strategies Global Equity 7/1/12 Global Dividend 7/1/12 Emerging Markets 7/1/12 Emerging Markets Plus+ 7/1/12 23 Master Limited Partnership |
Improving Business Mix 24 |