Mission Statement, Vision, & Core Values (2024) of Westwood Holdings Group, Inc. (WHG)

An Overview of Westwood Holdings Group, Inc. (WHG)

General Summary of Westwood Holdings Group, Inc. (WHG)

Westwood Holdings Group, Inc. (WHG) is a Dallas-based investment management firm founded in 1983. The company specializes in providing investment advisory services, wealth management, and mutual funds. As of 2024, Westwood manages assets totaling approximately $17.7 billion, which includes $16.8 billion of assets under management (AUM) and $1.0 billion of assets under advisement (AUA).

The firm's offerings encompass a range of products and services, including:

• Institutional investment management
• Wealth management services
• Mutual funds under the Westwood Funds® brand

In 2024, Westwood reported total sales of $69.1 million for the nine months ended September 30, reflecting an increase from $66.6 million in the prior year.

Company's Financial Performance in the Latest Financial Reports

In the most recent financial report for the nine months ended September 30, 2024, Westwood Holdings Group demonstrated significant financial performance:

• Total revenues: $69.1 million, up 4% from $66.6 million in the same period of 2023.
• Net income: $112,000, a sharp decline of 99% from $7.99 million year-over-year.
• Comprehensive income attributable to Westwood: $158,000, down 98% from $6.94 million in 2023.

The following table summarizes key financial metrics:

Westwood's average AUM increased to $16.3 billion for the third quarter of 2024, compared to $14.7 billion in the same period of 2023, showcasing growth driven by market appreciation despite net outflows of $0.6 billion during the nine months ended September 30, 2024.

Introduction to Westwood Holdings Group as a Leader in the Industry

Westwood Holdings Group, Inc. stands out as a leading player in the investment management industry. With a firm-wide AUM of $17.7 billion, the company has made significant strides in expanding its market presence and enhancing its service offerings. The firm's growth trajectory is supported by a robust investment strategy and a commitment to client service.

Westwood's notable achievements include:

• A 16% increase in total AUM from $14.4 billion in 2023 to $16.8 billion in 2024.
• Strong institutional client relationships, contributing to a diversified revenue stream.
• Recognition for excellence in investment management and advisory services.

For those interested in understanding the factors behind Westwood's success, further exploration of its strategic initiatives and market positioning is encouraged.

Mission Statement of Westwood Holdings Group, Inc. (WHG)

Mission Statement Overview

The mission statement of Westwood Holdings Group, Inc. (WHG) serves as a fundamental guide for the company's strategic direction and operational focus. It articulates the organization's purpose, emphasizing their commitment to delivering high-quality investment management services and fostering strong relationships with clients.

Core Component 1: Commitment to Clients

Westwood Holdings Group's mission emphasizes a strong commitment to their clients. This commitment is reflected in their approach to asset management, where they prioritize understanding client needs and delivering tailored investment solutions. As of September 30, 2024, WHG reported a total of $16.8 billion in assets under management (AUM), a significant increase from $14.4 billion in 2023, highlighting their ability to attract and retain clients amidst competitive market conditions .

Core Component 2: High-Quality Services

Another critical element of WHG's mission is the delivery of high-quality services. The company employs a team of experienced professionals dedicated to providing exceptional investment strategies. For the nine months ended September 30, 2024, Westwood generated total revenues of $69.1 million, up 4% from $66.6 million in the same period of 2023. This growth reflects the company's effectiveness in managing client investments and enhancing service offerings .

Core Component 3: Ethical Standards and Integrity

The mission statement underscores WHG's dedication to ethical standards and integrity in all business dealings. This commitment is paramount in building trust with clients and stakeholders. The company's effective tax rate for the nine months ended September 30, 2024, was influenced by permanent differences between book and tax values, demonstrating their adherence to financial regulations and ethical reporting practices .

In summary, the mission statement of Westwood Holdings Group, Inc. is pivotal in guiding the company toward its long-term goals. The three core components—commitment to clients, high-quality services, and ethical standards—are reflected in their financial performance and operational strategies, showcasing WHG's dedication to excellence in investment management.

Vision Statement of Westwood Holdings Group, Inc. (WHG)

Vision Statement Components

The vision statement of Westwood Holdings Group, Inc. (WHG) focuses on several core components that outline its aspirations and strategic direction as of 2024. Each component reflects the company's commitment to excellence, innovation, and client-centric services.

Westwood aims to be a trusted partner for its clients by delivering tailored investment solutions. The company's focus on client success is evident in its significant growth in Assets Under Management (AUM), which reached $16.8 billion as of September 30, 2024, a $2.4 billion increase from $14.4 billion in the previous year.

Innovation is a cornerstone of WHG's vision, emphasizing the importance of adapting to changing market conditions. In the third quarter of 2024, Westwood reported total revenues of $23.7 million, an 8% increase from $21.9 million in the same quarter of the previous year. This growth reflects the company's ability to innovate its service offerings.

Westwood is dedicated to achieving sustainable growth through strategic investments and operational efficiencies. The company reported net income of $112,000 for the nine months ended September 30, 2024, a significant decrease from $7.99 million in the same period of 2023. Despite this decline, the company remains focused on optimizing its operations to enhance profitability over the long term.

Westwood Holdings Group strives for excellence in investment management, as evidenced by its advisory segment's economic earnings of $5.39 million for the three months ended September 30, 2024, marking an 11% increase from $4.84 million in the same period last year. This performance underscores the company's commitment to delivering superior investment results for its clients.

Westwood is committed to expanding its global reach while engaging with communities. The company reported revenues of $23.5 million from clients in the United States for the three months ended September 30, 2024. This focus on client engagement demonstrates WHG's dedication to building long-lasting relationships across various geographies.

Integrity is a fundamental aspect of Westwood's vision, guiding its operations and interactions with clients. The company has maintained a strong ethical framework, which is reflected in its management practices and client interactions. As of September 30, 2024, Westwood reported no debt on its balance sheet, reinforcing its commitment to financial integrity.

Core Values of Westwood Holdings Group, Inc. (WHG)

Integrity

Integrity is a foundational core value at Westwood Holdings Group, Inc. (WHG). It reflects the company’s commitment to ethical practices, transparency, and accountability in all its dealings.

Westwood demonstrates its integrity through various initiatives, including rigorous compliance programs and ethical training for employees. In 2024, WHG maintained a zero-tolerance policy towards unethical behavior, ensuring that all employees adhere to the highest standards of conduct.

Client Focus

Client focus underscores Westwood's dedication to understanding and meeting the needs of its clients. This value drives the organization to provide tailored investment solutions that align with client objectives.

As of September 30, 2024, Westwood's firm-wide assets under management (AUM) reached $17.7 billion, up from $14.4 billion in the previous year, indicating a strong client trust and satisfaction. The company’s client-centric approach is also evident in its advisory fees, which totaled $57.8 million for the first nine months of 2024, reflecting a 2% increase compared to the same period in 2023.

Collaboration

Collaboration is essential at Westwood, fostering teamwork and shared goals among employees. This core value enhances problem-solving and innovation within the organization.

In 2024, WHG launched cross-departmental teams to improve service delivery and operational efficiency. The company reported a 12% increase in total revenues year-over-year, attributed partly to collaborative efforts across its various divisions. Furthermore, the firm’s employee compensation and benefits increased by 3% in the first nine months of 2024, reflecting investments in team-building and professional development.

Excellence

Excellence is a core value that drives Westwood to pursue the highest quality in its services and operations. The commitment to excellence is evident in the company’s investment strategies and client service.

Westwood achieved a net income of $159,000 in Q3 2024, a significant decrease of 96% from the previous year, which reflects the company’s focus on long-term performance rather than short-term gains. Additionally, the firm’s average economic earnings per share dropped to $0.01, down from $0.41 in Q3 2023, emphasizing a commitment to maintaining high standards even in challenging environments.

Innovation

Innovation at Westwood is about continuously improving and adapting to market changes. This core value encourages the exploration of new ideas and technologies to enhance service offerings.

In 2024, WHG made strategic investments in technology platforms, including a $1.5 million investment in the Texas Stock Exchange. This investment aims to leverage cutting-edge technology to improve operational efficiencies and client services. The firm also reported an increase of $0.8 million in professional services expenses, indicating a focus on enhancing its Managed Investment Solutions capability.

Article updated on 8 Nov 2024

Resources:

• Westwood Holdings Group, Inc. (WHG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Westwood Holdings Group, Inc. (WHG)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Westwood Holdings Group, Inc. (WHG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.