 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 |