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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 8, 2010
WESTWOOD HOLDINGS GROUP, INC.
(Exact name of registrant as specified in charter)
| Delaware | 001-31234 | 75-2969997 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
200 Crescent Court, Suite 1200
Dallas, Texas 75201
(Address of principal executive offices)
(214) 756-6900
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01: | REGULATION FD DISCLOSURE |
On June 9, 2010, Westwood Holdings Group, Inc. (“the Company”) will provide an update on the Company’s business at the Bank of America Merrill Lynch Smid Cap Conference.
The slides accompanying the presentation are attached as Exhibit 99.1 and will be available on the Company’s website at www.westwoodgroup.com under “Investor Relations.”
The information in this report, including exhibits, is being furnished pursuant to Item 7.01 and shall not be deemed “filed” within the meaning of section 18 of the Securities Act of 1934, or otherwise subject to the liabilities under that Section.
| ITEM 9.01: | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits: The following exhibit is furnished with this report:
| Exhibit |
Description | |
| 99.1 | Slides accompanying Company’s conference presentation on June 9, 2010. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 8, 2010
| WESTWOOD HOLDINGS GROUP, INC. | ||
| By: |
/s/ WILLIAM R. HARDCASTLE, JR. | |
| William R. Hardcastle, Jr., | ||
| Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Slides accompanying Company’s conference presentation on June 9, 2010. | |
 2010 Smid
Cap Conference
June 9, 2010
Brian O. Casey
President &
Chief Executive Officer
Susan M. Byrne
Chairman &
Chief Investment 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, 2009, 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 June 2, 2010 |
 Product
Distribution •
Separately managed portfolios
•
Sub-Advisory
•
Collective funds
•
Targeted consultant
relationships
•
Plan sponsor direct marketing
•
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
Private Wealth
Mutual Funds
Institutional
TM |
 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
•
Idea generation
•
Proprietary fundamental research
•
Make buy & sell recommendations
•
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
Research
Analysts
4 Research
Groups
Portfolio
Teams |
 Investment
Performance vs. Benchmark Performance through 3/31/10
1-Year
Trailing
3-Year
Trailing
5-Year
Trailing
Since
Inception
LargeCap
Value
(Inception: 1/1/87)
42.2%
-3.0%
4.7%
11.9%
Russell 1000 Value
53.6%
-7.3%
1.1%
9.9%
SMidCap
Value
(Institutional
Inception:
1/1/02)*
57.3%
3.2%
11.1%
14.6%
Russell 2500 Value
67.2%
-5.1%
3.1%
7.5%
SmallCap
Value
(Inception: 1/1/04)
51.3%
-3.9%
5.5%
8.3%
Russell 2000 Value
65.1%
-5.7%
2.8%
4.9%
AllCap
Value
(Inception: 7/1/02)
44.3%
-3.7%
4.6%
7.4%
Russell 3000 Value
54.5%
-7.2%
1.2%
4.7%
Income Opportunity
(Inception: 1/1/03)
24.2%
2.2%
6.1%
9.5%
25% S&P 500 / 25% NAREIT / 25% 10-Year Treasury / 25% T-Bills
32.3%
-0.3%
4.4%
6.5%
Balanced
(Inception:
1/1/87)
27.1%
0.9%
5.3%
10.5%
60% S&P 500 / 40% Barclays Capital Government/Credit
31.6%
0.2%
3.5%
8.9%
Core Fixed Income
(Inception: 1/1/85)
6.4%
7.0%
5.9%
8.3%
Barclays Capital Government/Credit
7.5%
5.8%
5.2%
8.0%
Our investment teams have delivered excess returns across Value & Income products
Page 4
*Closed to new investors. 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 and philosophy.
disclosures or visit http://westwoodgroup.com/disclaimers.pdf. The disclosures provided are
considered an integral part of this presentation. Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All
Rights Reserved.
Past
performance
is
not
a
guarantee
of
future
returns.
Returns
are
preliminary
and
are
subject
to
change.
Performance provided is gross of management fees. Please see appendix for
full performance |
 •
Lower
quality,
higher
beta
and
smaller
capitalization
stocks
led
the
charge
in
2009
while
high-quality
LargeCap
companies lagged significantly
•
Companies with the best businesses, High FCF yield and ROE were among the worst performers for
the year •
It’s nearly a reverse situation than the one that prevailed in 2008
Source: Bank of America Merrill Lynch US Quantitative Strategy, S&P
Universe based on the S&P500
Performance Ranked by Quality Indices
Performance Ranked by Characteristics
Source: Bank of America Merrill Lynch US Quantitative Strategy, S&P
ML US Universe based on 1600 stocks
High-quality stocks
Low-quality stocks
Low-Quality Stocks Drove The 2009 Market Rally
Page 5
0
20
40
60
80
100
120
140
A
A+
A-
B+ or Better
B+
B
B or Worse
Not Ranked
B-
C&D
0
20
40
60
80
100
120
140
Dividend Yield
Upward EPS Est. Revision
Return on Capital
ROE
(1-Yr
Average)
Low PE to Growth
Trailing Earnings Yield
Low Price/Cash Flow
Low Price
Small Size
BETA
Past performance is neither a guarantee nor a reliable indicator of future
performance. |
 -80%
-40%
0%
40%
80%
120%
160%
200%
240%
Source: Bank of America Merrill Lynch US Quantitative Strategy, October 22, 2009;
Performance is annualised for first 3 data sets
High Beta Performance relative to the S&P500
Top 50 stocks measured on FCF yield/ Beta/ ROE relative
the average market
•
2009’s Beta rally was outsized
•
A Value rally, as measured by High Free Cash Flow yield, has followed every Beta rally since
1986 Source: Bank of America Merrill Lynch US Quantitative Strategy, February 16,
2010 FCF Yield
Beta
ROE Past
performance
is
neither
a
guarantee
nor
a
reliable
indicator
of
future
performance.
After Beta Rallies, Quality & Value Typically Outperform
Page 6
22%
29%
59%
149%
0%
20%
40%
60%
80%
100%
120%
140%
160%
1/91 -
2/92
1/97 -
3/00
1/03 -
2/04
2/09 -
9/09 |
 2003 Calendar
Year Performance Westwood LargeCap
lagged in the last low quality rally as well...
Page 7
The disclosures provided are considered an integral part of this presentation.
Past performance is not a guarantee of future returns.
Performance provided is gross of management fees. Please see appendix for full performance
disclosures. |
 LargeCap
Value Portfolio Statistics
Five Years ended December 31, 2007
But, in the five year period starting in 2003, Westwood outperformed substantially as
the recovery matured and risk appetites fell.
Page 8
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. |
 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 five funds
o
Organic growth has been strong
o
Asset acquisition opportunities
•
Westwood Trust
o
Product development and asset gathering platform
o
Leverage referral sources
o
Expand private wealth platform in new markets
•
Collective Funds
o
Increasingly popular choice for large defined contribution plan sponsors
o
Select audience, high minimums
•
Sovereign Wealth Funds
o
Significant global opportunity; proactive targeted focus
Page 9 |
 Corporate
Development Opportunities We will seek to augment organic growth by pursuing strategic
opportunities •
Mutual fund asset acquisition opportunities
o
Philadelphia
Fund
acquisition
added
$52
million
in
assets
to
WHG
LargeCap
Value
fund
in
Q4 2009
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
•
Acquire additional products and research capabilities
Page 10 |
 Significant
Product Capacity Remains Page 11
Seasoned Products
(>3 year track record &
>$100 Million in assets)
Assets Under
Management
As of 3/31/10
Estimated
Maximum Capacity
AUM
Asset Growth
Potential
Product
Inception
LargeCap Value
$5.5 billion
$25 billion
$19.5 billion
1987
SMidCap Value
$2.8 billion
$3 billion
$200 million
1997
SmallCap Value
$260 million
$1.5 billion
$1.2 billion
2004
AllCap Value
$170 million
$10 billion
$9.8 billion
2002
Income Opportunity
$310 million
$2 billion
$1.7 billion
2003
MLP
$190 million
$1.5 billion
$1.3 billion
2003
Total Seasoned
$9.2 billion
$43 billion
$34 billion
Unseasoned (R&D) Products
(<3 year track record &
<$100 Million in assets)
MidCap Value
$22 million
$15 billion
$15 billion
2007
LargeCap Enhanced 130/30
$10 million
$10 billion
$10 billion
2007
Global Strategic Diversification
$16 million
$2 billion
$2 billion
2010
Total Unseasoned
$48 million
$27 billion
$27 billion
Total Seasoned & Unseasoned
$9.3 billion
$70 billion
$61 billion
Legacy Products
Balanced / Fixed Income / REIT
$528 million
N/A
N/A
1987 / 1985 / 1995
Note:
Table reflects Westwood Management AUM as of 3/31/10 (including Westwood Trust commingled
funds); excludes approximately $800 million in Westwood Trust separately managed
accounts, agency assets and subadvised commingled funds |
 Seasoned
Products & Capacity Available Estimated
Capacity
–
as
of
March
31,
2010
($
millions)
Page 12
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LargeCap
Value
SMidCap
Value
SmallCap
Value
AllCap
Value
Income
Opportunity
MLP
22%
94%
17%
2%
15%
12%
$25,000
$3,000
$1,500
$10,000
$2,000
$1,500
Current AUM
Remaining Capacity |
 Subadvisory
Page 13
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
•
Phoenix Insurance Company
•
Pictet
Funds
•
Delaware
Investments
–
Optimum
Funds
•
Timothy Plan
•
Callan
Diversified Alpha
•
GAMCO Westwood Funds
•
Westwood Trust |
 Growth in
Subadvisory Assets Page 14
Note: does not include Westwood Trust or GAMCO Westwood Funds assets
We have added 8 relationships and $895 million in Subadvisory assets since Q1
2008 |
 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
–
current
AUM
of
$167
million
•
Longer-term opportunity is substantial
Page 15 |
 WHG
Funds Page 16
WHG SMidCap
(WHGMX)
WHG Income Opportunity (WHGIX)
WHG LargeCap
Value (WHGLX)
WHG Balanced (WHGBX)
WHG SmallCap
Value (WHGSX)
WHG Funds
•
Five funds advised by Westwood Management
•
Strong
asset
growth
–
assets
have
grown
to
over
$667
million
from
initial
two
fund
launch
in
December
2005
•
Targeted primarily to institutional and defined contribution markets
Morningstar Ratings
Source: Morningstar as of June 2, 2010
Growth in WHG Funds Assets
$667
-4.9% |
 Source:
JPMorgan U.S. Asset Managers – North America Equity Research dated April 14, 2010; Strategic Insight.
WHG Funds AUM as of 4/30/10
WHG Funds –
Morningstar Ratings
Proportion of Assets Rated Four or Five Star (Asset Weighted)
Page 17 |
 Westwood
Trust •
Consistent asset growth
–
13% compound annual growth rate of assets over the last five years
•
Enhanced
Balanced
–
Asset allocation model
9 asset classes managed by Westwood Management
4 asset classes managed by subadvisors
–
Consultative approach
–
Low cost, efficient solution
–
Asset gathering platform
–
Private Client –
“Best Ideas”
•
Subadvisors:
Page 18
International Growth
High Yield
International Value
Domestic Growth
TM |
 Collective
Funds •
Designed to accommodate large defined contribution plan sponsors
•
Westwood launched a SMidCap
collective fund in Q3 2008 for a Fortune 100 client
•
Westwood has registered a LargeCap
collective
fund
•
Barriers to entry higher due to cost and administrative complexity
•
Less crowded market compared to mutual funds
•
Cost
and
administrative
complexity
of
changing
managers
or
funds
may
result
in
longer
duration client relationships
Page 19 |
 Sovereign
Wealth Funds 23
25
88
80
137
210
240
300
326
390
15
18
32
108
125
200
250
330
371
350
470-740
500-875
Abu Dhabi Investment Authority
Saudi Arabian Monetary Authority
Norway Pension Fund-Global
Government of Singapore
Investment Corporation
Kuwait Investment Authority
China Investment Corporation
Russian Reserve Fund
Singapore Temasek Holdings
Russian Wealth Fund
Korea Investment Corporation
Khazanah National (Malaysia)
2008
2007
Estimated assets of major sovereign wealth funds, 2007 and 2008 ($ Billion)
SOURCE: Press releases; interviews; McKinsey Global Institute analysis
Page 20
•
One of the largest sources of global assets over the next five years
•
Westwood is taking a proactive, targeted approach with this opportunity
|
 Financial
Highlights |
 Growth in
Assets Under Management Page 21
Quarterly AUM Growth
•
From Q1 2005 –
Q1 2010, Westwood’s AUM has increased by 160%, or a compound annual growth rate of
21%
•
Over this same period, the level of the S&P 500 index has declined by 1%
•
From Q1 2005 –
Q1 2010, net inflows of $5.0 billion
AUM Growth in a Challenging Environment |
 Revenue
Growth Page 22
Q1 2010 revenue was Westwood’s highest quarterly revenue excluding quarters with a
performance fee Note: Excludes performance fees of $3.0 million, $80,000 and $8.6
million in Q4 2007, Q2 2008 and Q4 2008, respectively |
 Cash Earnings
& Growing Cash Balances Liquid Cash & Investments as of March 31, 2010 are 105%
higher than at year-end 2005 Note: 2007 and 2008 cash earnings include impact of
performance fees of $3.0 million and $8.7 million, respectively; cash &
investments excludes shares of Teton Advisors, Inc.
Page 23 |
 WHG Quarterly
Dividend History Page 24
•
We seek to share excess cash with stockholders
•
High GAAP payout ratio due to significant free cash flow generation
•
3.7% yield as of June 2, 2010 close at $1.32 annualized dividend rate
|
 WHG Stock
Performance vs. NYSE Listed Companies as of 3/31/10
1-Year Percentile
3-Year Percentile
5-Year Percentile
WHG
(2.76)%
96
78.00%
4
145.56%
6 Russell 2000
62.76%
56
(11.50)%
49
17.95%
50 Top Performer 338.0%
Bottom Performer -24.3%
Top Performer 63.2%
Bottom Performer -77.4%
Top Performer 157.0%
Bottom Performer -74.6%
Page 25
Data excludes 5% tails - Benchmark Data Source: © 2010 Mellon Analytical
Solutions, LLC. All Rights Reserved. |
 DeMarche
100 Best Companies in the United States
DeMarche
Associates Names
Westwood Holdings Group, Inc.
Among “100 Best”
Companies
August 26, 2009
Westwood Holdings Group, Inc. has been
named one of the “100 Best Companies in the
United States”
by DeMarche
Associates, Inc., a
leading U.S. investment research firm.
The
award
is
based
on
DeMarche’s
proprietary
research and fundamental analysis of more
than 3,000 U.S. corporations in terms of
managing growth and risk factors while
maintaining shareholder value.
Page 26 |
 Summary
|
 Summary of
Strategic Priorities Ongoing Priorities
•
Serve clients attentively
•
Generate competitive investment performance
•
Service consultant relationships
•
Leverage referral sources at Westwood Trust
•
Increase visibility of WHG stock
Near Term Priorities
•
Match manufacturing capability with distribution partners through Sub-Advisory
opportunities •
Expand
awareness
of
WHG
Funds
with
Private
Wealth
Advisory
firms
and
Defined
Contribution
Consultants
•
Cultivate new “R&D”
products
•
Develop collective fund offerings across multiple products to serve the large defined
contribution plan market
•
Pursue opportunities with sovereign wealth funds
•
Corporate development opportunities
Page 27 |
 www.westwoodgroup.com
200
Crescent
Court
Suite
1200
Dallas,
Texas
75201
T. 214.756.6900 |
 Disclosures |
 Cash Earnings
Reconciliation Cash Earnings Reconciliation
($ thousands)
2005
2006
2007
2008
2009
Q1 2010
GAAP net income
3,636
$
4,508
$
7,944
$
10,543
$
7,895
$
2,933
$
Add: Restricted stock expense
2,114
4,500
5,316
6,735
7,666
1,891
Add: Stock option expense
250
126
-
-
-
-
Add: Intangible amortization
-
-
-
-
13
26
Add: Deferred taxes on goodwill
-
-
-
-
5
9
Less: Cumulative effect of change in
accounting principle
-
(39)
-
-
-
-
Non-GAAP cash earnings
6,000
$
9,095
$
13,260
$
17,278
$
15,579
$
4,859
$ |
 LargeCap
Value Disclosure Information
Year
Gross-
of-Fees
Return
Net-of-
Fees
Return
Russell
1000
Value
S&P 500
Number
of
Portfolios
Dispersion
Total Assets
at End of
Period
Percentage
of Firm
Assets
Percentage
of Non-Fee
Paying
Portfolios
Total
Firm
Assets
1Q10
6.5%
6.4%
6.8%
5.4%
44
0.2
$4,742.0
48.3%
0.0%
$9,813.9
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 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, 2008. 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, 2008. 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. The minimum portfolio size for inclusion in
the LargeCap Composite is $5 million beginning 1/1/06. PERFORMANCE RESULTS: LARGECAP
EQUITY COMPOSITE January 1, 1999 through March 31, 2010
Reporting Currency: USD
Creation Date: January 1994
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
42.2%
41.8%
53.6%
49.8%
2009
14.5%
14.2%
19.7%
26.5%
2 Years
-5.7%
-6.1
%
-6.0
%
-3.7
%
2008
-32.4%
-32.7
%
-36.9
%
-37.0
%
3 Years
-3.0%
-3.3
%
-7.3
%
-4.2
%
2007
13.3%
12.9
%
-0.2
%
5.5
%
4 Years
1.2%
0.9%
-1.8%
-0.4%
2006
19.9%
19.5%
22.3%
15.8%
5 Years
4.7%
4.3
%
1.1
%
1.9
%
2005
15.8%
15.3
%
7.1
%
4.9
%
6 Years
6.5%
6.1
%
3.0
%
2.7
%
2004
14.2%
13.7
%
16.5
%
10.9
%
7 Years
9.9%
9.5
%
7.7
%
6.8
%
2003
24.8%
24.3
%
30.0
%
28.7
%
8 Years
5.3%
4.9%
3.3%
2.2%
2002
-15.7%
-16.1%
-15.5%
-22.1%
9 Years
4.5%
4.1
%
3.4
%
2.0
%
2001
-8.2%
-8.7
%
-5.6
%
-11.9
%
10 Years
4.5%
4.1
%
3.1
%
-0.7
%
2000
13.5%
13.1
%
7.0
%
-9.1
%
11 Years
5.6%
5.2
%
3.4
%
0.9
%
1999
13.8%
13.3
%
7.4
%
21.0
%
12 Years
6.0%
5.5%
3.5%
2.3%
1998
21.5%
20.6%
15.6%
28.6%
13 Years
8.6%
8.1
%
6.4
%
5.2
%
1997
33.6%
32.7
%
35.2
%
33.4
%
14 Years
9.4%
8.9
%
7.2
%
6.2
%
1996
27.8%
26.9
%
21.6
%
23.0
%
15 Years
11.4%
10.8%
8.7%
7.8%
1995
40.5%
39.3%
38.4%
37.6%
16 Years
11.4%
10.8%
8.9%
8.2%
1994
4.2%
3.5
%
-2.0%
1.3
%
17 Years
11.6%
10.9
%
8.6
%
7.8
%
1993
19.2%
18.5
%
18.1
%
10.1
%
18 Years
11.6%
11.0
%
9.4
%
8.2
%
1992
9.0%
8.3
%
13.8
%
7.6
%
19 Years
11.6%
10.9%
9.5%
8.4%
1991
24.7%
23.9%
24.6%
30.5%
20 Years
11.3%
10.6%
9.4%
8.7%
1990
-9.2%
-10.0%
-8.1%
-3.1%
21 Years
11.6%
11.0
%
9.5
%
9.1
%
1989
32.5%
31.7
%
25.2
%
31.7
%
22 Years
11.8%
11.2
%
10.0
%
9.5
%
1988
16.6%
15.7
%
23.2
%
16.6
%
23 Years
11.1%
10.4%
9.3%
8.7%
1987
7.8%
6.9
%
0.5%
5.3
%
Since Inception
(1/1/87)
11.9%
11.2
%
9.9
%
9.5
%
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*
SMIDCAP EQUITY
COMPOSITE RETURNS
Gross of
Fees
Net of
Fees
Russell
2500
Russell
2500
Value
ANNUALIZED RETURNS
1 Year
57.3
%
56.5
%
65.7
%
67.2
%
2 Years
6.0
%
5.4
%
1.2
%
1.3
%
3 Years
3.2
%
2.6
%
-3.2
%
-5.1
%
4 Years
7.6
%
7.0
%
-0.4
%
-1.0
%
5 Years
11.1
%
10.6
%
4.1
%
3.1
%
6 Years
13.9
%
13.3
%
4.7
%
4.6
%
7 Years
17.7
%
17.1
%
11.3
%
11.3
%
8 Years
13.7
%
13.2
%
6.1
%
6.6
%
9 Years
13.4
%
12.9
%
7.1
%
8.2
%
10 Years
11.1
%
10.6
%
4.8
%
8.7
%
11 Years
13.6
%
13.2
%
7.9
%
9.3
%
12 Years
11.9
%
11.5
%
5.9
%
6.7
%
Since Inception
(7/1/97)
13.8
%
13.3
%
7.3
%
8.3
%
CALENDAR YEARS
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
%
Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights
Reserved. 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
1Q10
7.4%
7.3%
9.2%
9.6%
20
0.1
$1,628.3
16.6%
0.0%
$9,813.9
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
PERFORMANCE RESULTS: SMIDCAP COMPOSITE
January 1, 1998 through March 31, 2010
Reporting Currency: USD
Creation Date: July 1997
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. The standard fee schedule for
the SMidCap product 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, 2008.
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, 2008.
The verification and performance examination reports are available upon request.
|
 SmallCap
Value Disclosure Information
Year
Gross
of Fees
Return
Net of
Fees
Return
Russell
2000 Value
Number of
Portfolios
Dispersion
Total Assets
at End of
Period
Percentage
of Firm
Assets
Percentage
of Non-Fee
Paying
Portfolios
Total Firm
Assets
1Q10
7.9%
7.7%
10.0%
10
0.2
$242.8
2.5%
0.0%
$9,813.9
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 standard fee schedule for the SmallCap Value product 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, 2008. 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, 2008. The verification and performance examination reports are
available upon request.
The minimum portfolio size for inclusion in the SmallCap Value Composite is $5 million beginning
1/1/06. 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 March 31, 2010
Reporting Currency: USD
Creation Date: January 2004
SMALLCAP VALUE
COMPOSITE RETURNS
Gross of
Fees
Net of
Fees
Russell
2000 Value
ANNUALIZED RETURNS
1 Year
51.3
%
50.3
%
65.1
%
2 Years
-1.7
%
-2.3
%
0.4
%
3 Years
-3.9
%
-4.4
%
-5.7
%
4 Years
0.4
%
-0.1
%
-1.9
%
5 Years
5.5
%
5.0
%
2.8
%
6 Years
7.9
%
7.4
%
3.9
%
Since Inception
(1/1/04)
8.3
%
7.9
%
4.9
%
CALENDAR YEARS
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
%
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
44.3
%
43.6
%
54.5
%
2 Years
-4.2
%
-4.8
%
-5.5
%
3 Years
-3.7
%
-4.3
%
-7.2
%
4 Years
1.0
%
0.5
%
-1.8
%
5 Years
4.6
%
4.1
%
1.2
%
6 Years
7.2
%
6.8
%
3.0
%
7 Years
10.9
%
10.5
%
7.9
%
Since Inception
(7/1/02)
7.4
%
7.0
%
4.7
%
CALENDAR YEARS
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
%
2002¹
-12.9
%
-13.0
%
-11.7
%
1.
Inception Date: 7/1/02
Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights
Reserved. 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
1Q10
5.7%
5.5%
7.1%
4
0.15
$93.7
1.0%
$9,813.9
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
2002
1
-12.9%
-13.0%
-11.7%
1
0.00
$63.3
1.6%
$4,014.6
1.
Inception Date 7/1/02
The
standard
AllCap
Value
fee
schedule
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, 2008. 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, 2008. The verification and
performance examination reports are available upon request.
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.
PERFORMANCE RESULTS: ALLCAP VALUE COMPOSITE
July 1, 2002 through March 31, 2010
Reporting Currency: USD
Creation Date: July 2002 |
 Income
Opportunity Disclosure Information INCOME OPPORTUNITY
COMPOSITE RETURNS
Gross
of Fees
Net of
Fees
ANNUALIZED RETURNS
1 Year
24.2%
23.5%
49.8%
106.7%
0.1%
-6.3%
32.3
%
2 Years
4.4%
3.9%
-3.7%
-7.0%
0.6
%
1.8
%
0.1
%
3 Years
2.2%
1.7%
-4.2%
-10.6%
1.8
%
5.8
%
-0.3
%
4 Years
4.9%
4.3%
-0.4%
-3.4%
2.6
%
5.8
%
2.4
%
5 Years
6.1%
5.6%
1.9
%
3.8
%
2.8
%
4.7
%
4.4
%
6 Years
7.0%
6.5%
2.7
%
4.7
%
2.6
%
3.7
%
4.5
%
7 Years
10.0%
9.5%
6.8
%
10.5%
2.3
%
3.9
%
6.8
%
Since Inception (1/1/03)
9.5%
9.0%
6.1
%
10.2%
2.3
%
3.9
%
6.5
%
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%
0.0
%
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
Year
Gross
of Fees
Return
Net of
Fees
Return
S&P
500
Nareit
3 Mo
T-Bill
10 Yr
Treas
Note
Benchmark
1
Number of
Portfolios
Dispersion
Total
Assets at
End of
Period
Percentage
of Firm
Assets
Total
Firm
Assets
1Q10
3.6%
3.5%
5.4%
10.0%
0.0%
1.1%
4.2%
3
0.3
$216.6
2.2%
$9,813.9
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
The benchmark: 25% S&P 500/ 25% Nareit/ 25% 3 month T-Bill/ 25% 10 Yr
T-Note Index rebalanced monthly. In January 2005, the name of this
composite was changed from theDynamic Income Composite to the Income Opportunity Composite.
The standard fee schedule for the Income Opportunity product is 0.80% on the first
$10 million, negotiable thereafter. 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.
The minimum portfolio size for inclusion in the Income Opportunity Composite is $5
million beginning 1/1/06. The Income Opportunity composite includes all
taxable and tax-exempt, fee-paying fully discretionary accounts whose main
objective is to invest in securities with the intent of producing income for the
portfolio. PERFORMANCE RESULTS: INCOME OPPORTUNITY
January 1, 2003 through March 31, 2010
Reporting Currency: USD
Creation Date: January 2003
Verificationassesses
whether
(1)
the
firm
hascomplied
withall
thecompositeconstruction
requirements
of
the
GIPSstandards
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,
2008. The verification and performance examination reports are available upon
request. Westwood Management Corp. claims compliance with the Global
InvestmentPerformanceStandards (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, 2008.
Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights
Reserved. |
 Fixed Income
Disclosure Information 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
6.5
%
6.2
%
7.5
%
2009
5.3
%
5.0
%
4.5
%
2 Years
6.1
%
5.9
%
4.6
%
2008
8.3
%
8.0
%
5.7
%
3 Years
7.0
%
6.7
%
5.8
%
2007
7.3
%
7.1
%
7.2
%
4 Years
6.7
%
6.5
%
6.0
%
2006
4.1
%
3.8
%
3.8
%
5 Years
5.9
%
5.6
%
5.2
%
2005
2.9
%
2.6
%
2.4
%
6 Years
5.0
%
4.8
%
4.4
%
2004
3.8
%
3.5
%
4.2
%
7 Years
4.9
%
4.7
%
4.6
%
2003
2.8
%
2.5
%
4.7
%
8 Years
5.9
%
5.6
%
5.7
%
2002
10.9
%
10.6
%
11.0
%
9 Years
5.8
%
5.5
%
5.6
%
2001
8.3
%
7.8
%
8.5
%
10 Years
6.4
%
6.1
%
6.2
%
2000
12.6
%
12.1
%
11.9
%
11 Years
6.0
%
5.7
%
5.8
%
1999
-1.0
%
-1.5
%
-2.2
%
12 Years
6.1
%
5.8
%
5.9
%
1998
8.9
%
8.3
%
9.5
%
13 Years
6.6
%
6.2
%
6.4
%
1997
9.8
%
9.4
%
9.8
%
14 Years
6.4
%
6.0
%
6.2
%
1996
2.8
%
2.3
%
2.9
%
15 Years
6.7
%
6.3
%
6.5
%
1995
17.6
%
17.3
%
19.2
%
16 Years
6.5
%
6.1
%
6.4
%
1994
-3.5
%
-3.9
%
-3.5
%
17 Years
6.3
%
6.0
%
6.2
%
1993
12.7
%
12.2
%
11.0
%
18 Years
6.8
%
6.5
%
6.6
%
1992
8.4
%
8.0
%
7.6
%
19 Years
7.2
%
6.8
%
6.9
%
1991
18.1
%
17.6
%
16.1
%
20 Years
7.4
%
7.0
%
7.1
%
1990
9.2
%
8.7
%
8.3
%
21 Years
7.5
%
7.1
%
7.4
%
1989
12.1
%
11.5
%
14.2
%
22 Years
7.5
%
7.1
%
7.3
%
1988
9.3
%
8.8
%
7.6
%
23 Years
7.5
%
7.1
%
7.1
%
1987
6.4
%
5.9
%
2.3
%
24 Years
7.7
%
7.3
%
7.2
%
1986
12.9
%
12.3
%
15.6
%
25 Years
8.3
%
7.9
%
8.0
%
1985
22.8
%
22.3
%
21.3
%
Since Inception
(1/1/85)
8.3
%
7.9
%
8.0
%
BCGC
BCGC
Year
Gross
of Fees
Return
Net of
Fees
Return
BCGC
Number
of
Portfolios
Dispersion
Percentage
of Carve-
Outs
Total Assets
at End of
Period
Percentage
of Firm
Assets
Total
Firm
Assets
1Q10
1.4%
1.4%
1.6%
3
0.0
0.0%
$99.2
1.0%
$9,813.9
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
PERFORMANCE RESULTS: FIXED INCOME COMPOSITE
January 1, 1999 through March 31, 2010
Reporting Currency: USD
Creation Date: January 1994
Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights
Reserved. 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. The minimum portfolio size for inclusion in the Fixed Composite is $5 million beginning 1/1/06.
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 standard fee schedule for the Fixed Income product is 0.40% 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, 2008. 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, 2008. The verification and performance examination
reports are available upon request.
|
 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
1Q10
4.3%
4.1%
3.9%
2
0.0
$32.5
0.3%
$9,813.9
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 benchmark: 60% S&P 500/ 40% BCGC Index rebalanced monthly.
The standard fee schedule for the Balanced product is 0.625% on the first $25 million, negotiable
thereafter. PERFORMANCE RESULTS: BALANCED COMPOSITE
January 1, 1999 through March 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, 2008. 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, 2008. The verification and performance examination reports are available
upon request. 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. The minimum portfolio size for inclusion in the Balanced Composite is $5 million
beginning 1/1/06. Creation Date: January 1994
Reporting Currency: USD
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
27.1
%
26.5
%
31.6
%
2009
11.2
%
10.7
%
17.7
%
2 Years
-1.3
%
-1.8
%
0.2
%
2008
-18.5
%
-19.0
%
-21.9
%
3 Years
0.9
%
0.4
%
0.2
%
2007
10.8
%
10.1
%
6.3
%
4 Years
3.4
%
2.8
%
2.5
%
2006
13.4
%
12.7
%
10.9
%
5 Years
5.3
%
4.7
%
3.5
%
2005
10.9
%
10.2
%
4.0
%
6 Years
5.9
%
5.3
%
3.7
%
2004
9.4
%
8.8
%
8.3
%
7 Years
8.0
%
7.4
%
6.2
%
2003
16.1
%
15.3
%
18.8
%
8 Years
5.7
%
5.1
%
3.9
%
2002
-4.8
%
-5.4
%
-9.5
%
9 Years
5.3
%
4.7
%
3.8
%
2001
-1.1
%
-1.7
%
-3.7
%
10 Years
5.6
%
5.0
%
2.4
%
2000
13.3
%
12.4
%
-0.9
%
11 Years
6.1
%
5.4
%
3.2
%
1999
7.6
%
7.0
%
11.4
%
12 Years
6.1
%
5.5
%
4.1
%
1998
14.0
%
13.2
%
21.4
%
13 Years
7.8
%
7.2
%
6.1
%
1997
23.6
%
22.8
%
23.7
%
14 Years
8.3
%
7.6
%
6.6
%
1996
17.5
%
16.8
%
14.7
%
15 Years
9.5
%
8.9
%
7.6
%
1995
30.5
%
29.4
%
30.0
%
16 Years
9.4
%
8.8
%
7.8
%
1994
0.3
%
-0.2
%
-0.6
%
17 Years
9.4
%
8.7
%
7.5
%
1993
15.7
%
14.8
%
10.5
%
18 Years
9.6
%
8.9
%
7.9
%
1992
8.0
%
7.5
%
7.7
%
19 Years
9.8
%
9.1
%
8.1
%
1991
23.2
%
22.6
%
24.8
%
20 Years
9.9
%
9.2
%
8.4
%
1990
1.1
%
0.5
%
1.6
%
21 Years
10.1
%
9.4
%
8.7
%
1989
24.7
%
24.1
%
24.6
%
22 Years
10.3
%
9.6
%
8.9
%
1988
15.9
%
15.2
%
13.0
%
23 Years
9.9
%
9.2
%
8.4
%
1987
8.0
%
7.5
%
5.5
%
Since Inception
10.5
%
9.8
%
8.9
%
Benchmark Data Source: © 2010 Mellon Analytical Solutions, LLC. All Rights
Reserved. |
 Morningstar©
Disclaimer
© 2010 Morningstar, Inc. All Rights Reserved. The information contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its
content providers are responsible for any damages or losses arising from any use of this
information. Past performance is no guarantee of future results. For each
fund with at least a three year history, Morningstar calculates a Morningstar Rating based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a fund’s monthly
performance (including the effects of sales charges, loads and redemption fees),
placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in
each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars,
the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall
Morningstar Rating for a fund is derived from a weighted average of the performance figures associated
with its three-, five- and ten-year Morningstar Ratings metric. As of
4/30/2010, WHGMX was rated among 371 Mid Cap Blend funds in the last three years and
received a Morningstar Rating of 5 stars; WHGLX was rated among 1802 Large Cap Blend funds in the last three
years and received a Morningstar Rating of 4 stars; WHGIX was rated among 536 Conservative
Allocation funds in the last three years and received a Morningstar Rating of 4 stars;
and WHGBX was rated among 957 Moderate Allocation funds in the last three years and
received a Morningstar Rating of 4 stars. |