Core Insights - Westwood Holdings Group celebrates the one-year anniversary of the Westwood Salient Enhanced Midstream Income ETF (MDST), which has gained significant traction among income-seeking investors, nearing $100 million in assets under management [1][2][3] - The ETF aims to provide exposure to the midstream energy sector through a covered-call strategy, allowing investors to benefit from the stability and cash flow of midstream infrastructure companies while enhancing yield through options premiums [2][3] - The fund has achieved an annualized distribution rate of 10.5% as of March 28, 2025, and has shown strong performance with a net asset value (NAV) increase of 22.95% since inception [1][4] Company Overview - Westwood Holdings Group is a boutique asset management firm that offers a range of actively-managed investment strategies and wealth services to various clients, emphasizing a client-first approach [7][8] - The firm has expanded its ETF platform to five funds within a year, indicating a commitment to innovative, outcome-driven investments [4] Fund Performance - As of March 31, 2025, MDST reported a quarter-to-date performance of 5.71% and a market price increase of 5.36% [4] - The fund's expense ratio stands at 0.80%, and it offers a subsidized/unsubsidized 30-day yield of 3.69% [4] Investment Strategy - MDST is designed for income investors, focusing on generating reliable income through a combination of dividend income and options premiums, which helps mitigate volatility [3][4] - The fund's structure provides tax transparency and accessibility, aligning with Westwood's innovative investment strategies [3]

Core Insights - Westwood Holdings Group has launched the Westwood LBRTY Global Equity ETF (BFRE) aimed at reducing risks associated with authoritarian regimes while ensuring broad market diversification [1][2][3] Investment Strategy - BFRE employs TOBAM's LBRTY methodology to systematically minimize exposure to companies affected by the unpredictable behavior of autocratic governments, aligning with investors focused on risk management [2][6] - The ETF's strategy helps mitigate geopolitical risks and market volatility linked to authoritarian countries, while maintaining alignment with global market benchmarks [3][6] Methodology - BFRE synthesizes multi-dimensional datasets to assess global democracy, reducing exposure to authoritarian countries like China and Russia through a two-level approach: excluding stocks from non-democratic nations and prioritizing companies in democratic countries [4][7] - This methodology offers a more comprehensive assessment than traditional exclusion-based strategies, focusing on both country and stock levels [4][6] Market Coverage - The ETF is designed to provide extensive market coverage, including both developed and emerging markets, simplifying investment allocation and offering a dynamic investment option [5][6] Investor Demand - There is a growing demand among investors for solutions that address the interconnected nature of global economies, with BFRE aiming to minimize exposure to authoritarian regimes while aligning with investor goals [6][7]

Core Insights - Westwood Holdings Group has appointed J. Hale Hoak and Katherine Murray to its Board of Directors, enhancing its governance and expertise in finance and investment management [1][2] - The appointments align with Westwood's commitment to inclusivity and community engagement, aiming to incorporate diverse perspectives rooted in local knowledge [1][2] Summary of Appointees - Hale Hoak brings over 25 years of investment experience, having served as President of Hoak & Co. since 2004 and previously as a founding partner of Inwood Capital Partners [3][4] - Katherine Murray has over 33 years of experience in finance, particularly in the energy sector, and has held senior roles in public accounting and financial consulting [5][6] Company Overview - Westwood Holdings Group is a boutique asset management firm that offers a range of actively managed investment strategies and wealth services to various client segments [7] - The firm emphasizes a client-first approach, fostering long-term relationships through tailored investment strategies and exceptional service [7][8]

Assets Under Management and Financial Performance - Westwood Management and Westwood Trust collectively had AUM of approximately $16.6 billion and AUA of approximately $1.0 billion as of December 31, 2024[15]. - As of December 31, 2024, assets under management (AUM) in the Westwood Funds® totaled $3.9 billion[48]. - A hypothetical 10% decrease in average Assets Under Management (AUM) and Assets Under Administration (AUA) during the year ended December 31, 2024, would have reduced reported consolidated total revenue by approximately $9 million[260]. - The company’s revenues are primarily generated from fees derived as a percentage of AUM and AUA, which are subject to market risks[259]. Acquisitions and Growth Strategy - The company acquired the asset management business of Salient Partners, L.P. in 2022, which included Salient Capital, L.P. and Salient Advisors, L.P.[18]. - In January 2023, Westwood acquired an additional 32% interest in Broadmark, increasing its ownership to approximately 80%[19]. - Westwood's growth strategy includes organic growth, acquisitions, and the addition of new products to diversify AUM and revenue sources[44]. - The company is pursuing strategic corporate development opportunities, including potential acquisitions of asset management firms and hiring investment professionals[70]. Investment Strategies and Products - Westwood's investment strategies include five strategies each having AUM exceeding $1 billion, such as LargeCap Value and Income Opportunity[27]. - Westwood launched its first two actively-managed ETFs in 2024: Westwood Salient Enhanced Midstream Income (MDST) and Westwood Salient Enhanced Energy Income (WEEI)[73]. - In 2024, Westwood launched two ETFs: Westwood Salient Enhanced Midstream Income ETF (MDST) and Westwood Salient Enhanced Energy Income ETF (WEEI)[45]. - Westwood's investment strategies include a focus on energy secondaries private investment funds, targeting discounts to net asset value ranging from 20% to 40%[73]. Client Relationships and Wealth Management - The company emphasizes building strong relationships with clients to enhance its ability to meet their investment objectives[16]. - Westwood Trust serves high net worth and ultra-high net worth individuals and families, with a focus on holistic wealth management approaches[67]. - The company anticipates continued interest from clients in its wealth management services, driven by referrals and existing client relationships[67]. Employee and Workforce Diversity - The company has approximately 151 full-time employees as of December 31, 2024, with 41% being female and 32% representing minority communities[87][104]. - As of December 31, 2024, approximately 15% of employees hold the Chartered Financial Analyst designation, indicating a skilled workforce[88]. Regulatory Compliance and Risk Management - The company is subject to extensive regulation by the SEC and other regulatory bodies, ensuring compliance with the Investment Advisers Act and the Investment Company Act[78]. - The company does not currently participate in any hedging activities or utilize derivative financial instruments, exposing it to inherent market risks[259]. - The company’s fiduciary duty to clients imposes standards and requirements on trading, allocation of investment opportunities, and execution of transactions[79]. Financial Health and Dividend Payments - The company has made quarterly and special dividend payments to Westwood Holdings Group, Inc. out of undivided profits, reflecting its financial health[83]. - The company’s cash equivalents and other investment instruments are exposed to financial market risk due to fluctuations in interest rates, but significant impacts on interest income are not expected[261]. Marketing and Brand Development - The firm aims to strengthen its brand name through high-profile coverage in investment publications and creative marketing strategies[71]. - The company has expanded its distribution capabilities through the Salient Acquisition and the addition of a Managed Investment Solutions team, enhancing its product range[64]. Sales and Market Engagement - Westwood's proactive sales efforts have increased throughout 2024, focusing on consultants and institutional plan sponsors[69]. - The Managed Investment Solutions team joined Westwood in late 2023, focusing on tailoring investment solutions for diverse institutional clients[42]. - The company continues to evaluate new strategies and resources to meet actual and potential investor needs[17].

Core Points - Cumulus Media's Westwood One will broadcast a total of 19 NCAA Men's and Women's Basketball games during Conference Championship Week from March 8 to March 16, 2025 [1][2][3] Group 1: Broadcast Schedule - The postseason basketball coverage begins on March 8 with the Ohio Valley Conference Championship game and continues through Selection Sunday on March 16 [2] - Key games include the Big East, CAA, Conference USA, Patriot League, MVC, Big South, SoCon, America East, and WCC for men's championships, and Big East and Ivy League for women's championships [3][4] - Selection Sunday will reveal the 68-team field for both men's and women's tournaments, hosted by Jason Horowitz with analysts PJ Carlesimo and Debbie Antonelli [2][4] Group 2: Westwood One Sports Overview - Westwood One Sports is the exclusive network radio partner to the NFL since 1987 and covers NCAA Basketball, including the NCAA Men's and Women's Tournaments and the Final Four [5] - The network also broadcasts other major sports events, including The Masters and U.S. Soccer Federation matches [5] Group 3: Cumulus Media Overview - Cumulus Media is an audio-first media company reaching a quarter billion people monthly through 400 radio stations across 85 markets [7] - The company provides a range of programming, including sports, news, talk, and entertainment, and operates the Cumulus Podcast Network [7] - Cumulus Media offers advertisers local and national advertising performance guarantees through various platforms [7]

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $25.6 million, up from $23.7 million in Q3 2024 and $23.2 million in Q4 2023, driven by higher average assets under management and performance fees [32] - Comprehensive income for Q4 2024 was $2.1 million, or $0.24 per share, compared to $0.1 million, or $0.01 per share in Q3 2024, and a net loss of $2.6 million, or $0.32 per share in Q4 2023 [33] - Economic earnings for Q4 2024 were $3.4 million, or $0.39 per share, compared to $1.1 million, or $0.13 per share in Q3 2024, and $2.8 million, or $0.34 per share in Q4 2023 [33] Business Line Data and Key Metrics Changes - The institutional team won and funded eight mandates totaling over $600 million in 2024, a 100% increase from the previous year [7] - The Westwood Salient Enhanced Midstream Income ETF reached $73 million in assets by year-end, exceeding first-year targets [17] - Wealth management experienced an uptick in net flows during Q4 2024, continuing into December [17] Market Data and Key Metrics Changes - Firmwide assets under management totaled $17.6 billion at quarter-end, with $16.6 billion in assets under management and $1 billion in assets under advisement [34] - Assets under management included institutional assets of $8.3 billion (50%), wealth management assets of $4.4 billion (26%), and mutual fund assets of $3.9 billion (24%) [35] - The company experienced net outflows of $0.8 billion in assets under management and $211 million in assets under advisement, offset by market appreciation of $1.9 billion and $92 million respectively [35] Company Strategy and Development Direction - The company is focused on strengthening core infrastructure while pursuing strategic growth, including the launch of new ETFs and managed investment solutions [19][26] - The acquisition of Salient Partners' asset management business continues to exceed expectations, enhancing capabilities in energy and real estate income strategies [23][25] - A partnership with ETF veteran Ben Fulton aims to scale Westwood's ETF platform, offering innovative strategies [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautiously optimistic outlook, citing benign credit conditions and attractive equity valuations [14] - The company noted that as the post-COVID bull market matures, investors may shift focus towards quality companies, which aligns with the company's investment style [15] - The energy sector is viewed as presenting attractive opportunities, with strong fundamentals supporting positive outlooks for energy strategies [24] Other Important Information - The board approved a regular cash dividend of $0.15 per common share, payable on April 1, 2025 [36] - The company was recognized as a Pensions and Investments Best Places to Work in Money Management for the 10th year [29] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus no summary can be provided for this section.

Core Points - Westwood Holdings Group, Inc. held its Q4 2024 earnings conference call on February 12, 2025, at 4:30 PM ET [1] - The call featured CEO Brian Casey and CFO Terry Forbes as key speakers [5] - The discussion included forward-looking statements that are subject to various risks and uncertainties [3] Company Information - The company provided additional information regarding factors that could affect actual results, which is included in their press release and Form 10-K for the year ended December 31, 2024 [4] - The company emphasized the importance of not placing undue reliance on forward-looking statements [4] - The reconciliation of economic earnings and economic earnings per share to GAAP measures was mentioned as part of compliance with SEC rules [5]

Westwood Holdings Group (WHG) Q4 2024 Earnings Call February 12, 2025 04:30 PM ET Company Participants Brian Casey - President & Chief Executive OfficerTerry Forbes - Chief Financial Officer Operator I would now like to hand the conference over to your speaker today, Brian Casey, CEO. None Thank you, and welcome to our fourth quarter twenty twenty four earnings conference call. The following discussion will include forward looking statements that are subject to known and unknown risks, uncertainties and oth ...

Financial Performance - Fourth quarter revenues increased to $25.6 million, up from $23.7 million in the third quarter and $23.2 million a year ago[2] - Comprehensive income for the fourth quarter was $2.1 million, compared to $0.1 million in the third quarter and $2.6 million in the fourth quarter of 2023[5] - Non-GAAP Economic Earnings for the fourth quarter were $3.4 million, or $0.39 per share, compared to $1.1 million, or $0.13 per share in the third quarter[5] - Annual comprehensive income was $2.2 million, down from $9.5 million in 2023, with diluted EPS of $0.26 compared to $1.17 in 2023[7] - Economic Earnings for the year were $6.965 million, down from $18.342 million in 2023, with Economic EPS of $0.82 compared to $2.26 in 2023[17] - Net income for the year ended December 31, 2024, was $2,211,000, down 79.1% from $10,571,000 in 2023[19] - Earnings per share (EPS) dropped to $0.26 in 2024 from $1.17 in 2023, reflecting a decline of 77.8%[23] - Economic EPS for the year ended December 31, 2024, was $0.82, down 63.7% from $2.26 in 2023[23] Assets and Liabilities - Firmwide assets under management and advisement totaled $17.6 billion, with $16.6 billion in AUM and $1.0 billion in AUA[4] - Total assets decreased from $155,167,000 in December 2023 to $149,989,000 in December 2024, a decline of approximately 3.8%[18] - Total liabilities decreased from $32,721,000 in December 2023 to $27,657,000 in December 2024, a reduction of approximately 15.5%[18] Cash Flow and Dividends - The company reported a net cash provided by operating activities of $21,122,000 in 2024, compared to a net cash used of $1,185,000 in 2023[19] - The company declared a cash dividend of $0.15 per common share, payable on April 1, 2025[2] - The company paid cash dividends totaling $5,440,000 in 2024, slightly down from $5,502,000 in 2023[19] Stock and Share Repurchase - The Board authorized an additional $5.0 million for share repurchases, bringing the total available to $5.5 million[2] Product Development - The company launched two innovative ETFs under the Westwood Engineered Beta partnership, enhancing its product offerings[1] - The Westwood Salient Enhanced Midstream Income ETF (MDST) reached $73 million in assets by year-end, amid strong trading volumes[2] Compensation and Expenses - Stock-based compensation expense for 2024 was $5,537,000, down 15.1% from $6,518,000 in 2023[23]

Core Insights - Westwood Holdings Group, Inc. reported strong performance in the fourth quarter, with revenues increasing due to higher average assets under management (AUM) and performance fees [1][5] - The company launched two innovative ETFs under the Westwood Engineered Beta partnership, aimed at providing stable investment experiences [1] - The Board authorized an additional $5 million for share repurchases, bringing the total available for repurchases to $5.5 million [5] Financial Performance - Firmwide assets under management and advisement totaled $17.6 billion, with $16.6 billion in AUM and $1.0 billion in assets under advisement [2] - Fourth quarter comprehensive income was $2.1 million, up from $0.1 million in the third quarter, with diluted EPS of $0.24 compared to $0.01 in the previous quarter [3][4] - Non-GAAP Economic Earnings for the fourth quarter were $3.4 million, or $0.39 per share, compared to $1.1 million, or $0.13 per share in the third quarter [3][5] Yearly Overview - For the year 2024, comprehensive income was $2.2 million, down from $9.5 million in 2023, with diluted EPS of $0.26 compared to $1.17 in 2023 [6] - Total revenues for 2024 were $94.7 million, an increase from $89.8 million in 2023 [16] - Economic Earnings for the year were $6.97 million, down from $18.34 million in 2023, with Economic EPS of $0.82 compared to $2.26 in 2023 [6][22] Investment Strategies - Various investment strategies outperformed their primary benchmarks, including LargeCap Value and Multi-Asset Income, with some strategies achieving top quartile rankings [5] - The Westwood Salient Enhanced Midstream Income ETF (MDST) reached $73 million in assets by year-end, reflecting strong trading volumes [5] Cash and Equity Position - As of December 31, 2024, Westwood held $44.6 million in cash and liquid investments, with stockholders' equity totaling $120.3 million and no debt [5][19] - The company declared a cash dividend of $0.15 per common share, payable on April 1, 2025 [5]