Westwood Holdings Group, Inc. (WHG): Marketing Mix Analysis [10-2024 Updated]

In the competitive landscape of investment management, Westwood Holdings Group, Inc. (WHG) stands out with its strategic approach to the marketing mix. Offering a diverse range of services, including investment advisory for pension plans and foundations, WHG is committed to delivering value through innovative products like new ETF strategies. Their focused efforts on client relationships and a competitive pricing model position them favorably in the market. Discover how WHG's carefully crafted approach to product, place, promotion, and price shapes their business strategy and enhances client engagement below.

Westwood Holdings Group, Inc. (WHG) - Marketing Mix: Product

Investment advisory services for pension plans and foundations

Westwood Holdings Group, Inc. (WHG) offers investment advisory services primarily targeting corporate pension and profit-sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, and foundations. As of September 30, 2024, the firm reported total assets under management (AUM) of approximately $16.8 billion, with significant contributions from institutional clients.

Trust and custodial services for high net worth individuals

Westwood Trust provides specialized trust and custodial services to high net worth individuals and institutions. The trust services include participation in common trust funds, with revenues derived from fees based on a percentage of AUM. As of September 30, 2024, Westwood Trust managed approximately $1.0 billion in assets under advisement (AUA).

Sub-advisory services for mutual funds

Westwood's sub-advisory services cater to mutual funds, where it provides investment management services for funds offered by other financial institutions. This segment contributes to the overall revenue through advisory fees, which are typically calculated as a percentage of AUM. In the nine months ending September 30, 2024, Westwood generated $69.1 million in total revenues, highlighting the importance of this service.

Pooled investment vehicles, including collective investment trusts

The firm also offers pooled investment vehicles, including collective investment trusts, which provide a diversified investment option for clients. These vehicles are designed to aggregate capital from multiple investors, allowing for larger investments that may not be accessible individually. The pooled investment strategies are a key part of WHG's offerings, contributing to the total AUM.

Focus on a “value” investment style to enhance long-term returns

WHG employs a “value” investment style aimed at achieving superior long-term, risk-adjusted returns. This strategy focuses on investing in companies with strong fundamentals, including high levels of free cash flow and improving returns on equity. The firm's investment teams boast an average experience of over 20 years, further enhancing the credibility of their investment approach.

New ETF strategies through partnership with Westwood Engineered Beta

In 2024, Westwood Holdings Group has expanded its product offerings by developing new ETF strategies in collaboration with Westwood Engineered Beta. This partnership aims to provide innovative investment solutions that align with market trends and client needs.

Westwood Holdings Group, Inc. (WHG) - Marketing Mix: Place

Primarily operates in the United States and Canada

Westwood Holdings Group, Inc. primarily operates in the United States and Canada, focusing on institutional clients, individual investors, and high net worth individuals. As of September 30, 2024, the company reported total assets under management (AUM) of approximately $16.8 billion and assets under advisement (AUA) of around $1.0 billion.

Services offered through direct client relationships and institutional partnerships

The company offers its services through direct relationships with clients and institutional partnerships. Westwood Management provides investment advisory services, while Westwood Trust offers trust and custodial services. The revenue model is largely dependent on fees calculated as a percentage of AUM and AUA.

Utilizes a robust digital platform for client engagement

Westwood has developed a robust digital platform aimed at enhancing client engagement. This includes providing clients with access to real-time data and analytics regarding their investments, thus ensuring a seamless experience. The company also emphasizes the integration of technology into its service delivery model to improve client satisfaction and operational efficiency.

Expanding offerings to international markets as part of growth strategy

As part of its growth strategy, Westwood is actively expanding its offerings to international markets. This strategic move aims to tap into new client bases and diversify its revenue streams. The company’s expansion efforts are reflected in its increasing AUM, which has seen a notable rise due to market appreciation and strategic investments.

Westwood Holdings Group, Inc. (WHG) - Marketing Mix: Promotion

Emphasis on building long-term relationships with clients

Westwood Holdings Group, Inc. focuses heavily on cultivating long-term relationships with its clients. This approach is reflected in their customer retention strategies, which have resulted in a 26% increase in assets under management (AUM) from $14.4 billion in September 2023 to approximately $16.8 billion in September 2024.

Participation in industry conferences and events to enhance visibility

Westwood actively participates in various industry conferences and events. In 2024, they attended over 10 key investment conferences, which helped to enhance their visibility and establish connections with institutional investors and wealth managers. This strategy is critical for brand positioning as they aim to attract new clients and maintain relationships with existing ones.

Targeted marketing campaigns focusing on performance and client service

The company has launched targeted marketing campaigns emphasizing their investment performance and client service. For instance, the successful promotion of their Managed Investment Solutions (MIS) capability has led to a 22% increase in consulting revenue, showing effective communication of their value proposition.

Utilization of digital marketing channels to reach potential clients

In 2024, Westwood increased its digital marketing budget by 15%, focusing on social media, email marketing, and SEO strategies to reach potential clients. This resulted in a 20% increase in website traffic and a 30% increase in lead generation compared to 2023. The digital marketing initiatives have been instrumental in driving brand awareness and engagement.

Ongoing communication of investment performance through reports and updates

Westwood emphasizes ongoing communication regarding investment performance through quarterly reports and updates. In the latest report for Q3 2024, they highlighted a net income of $159,000, a significant decrease of 96% compared to $4.375 million in Q3 2023. This transparency reinforces client trust and demonstrates their commitment to keeping clients informed about their investments.

Westwood Holdings Group, Inc. (WHG) - Marketing Mix: Price

Revenue model based on fees from Assets Under Management (AUM)

As of September 30, 2024, Westwood Holdings Group, Inc. reported firm-wide assets under management (AUM) of approximately $16.8 billion, which reflects an increase of $2.4 billion compared to $14.4 billion in September 2023.

Advisory fees typically calculated as a percentage of AUM

Advisory fees for Westwood are primarily charged as a percentage of AUM. For the three months ended September 30, 2024, advisory fees included:

This represents an increase in advisory revenue from $16,902 thousand in the same quarter of 2023.

Trust fees negotiated based on AUM and client agreements

Trust fees, which are negotiated based on AUM, generated revenues of $5,447 thousand for the three months ended September 30, 2024, compared to $5,063 thousand in the same period of 2023.

Performance-based fees for exceeding benchmark returns

Performance-based fees are contingent upon exceeding specified benchmark returns. While there were no performance-based fees recognized for the three months ended September 30, 2024, the previous year reported $555 thousand in performance-based fees.

Competitive pricing strategy to attract institutional clients and high net worth individuals

Westwood's pricing strategy aims to attract institutional clients and high net worth individuals by offering competitive advisory and trust fees based on their AUM. The firm has established a reputation for delivering competitive, risk-adjusted returns, which supports its pricing model. The average advisory fee rate typically ranges from 0.50% to 1.00% depending on the asset class and client size.

In conclusion, Westwood Holdings Group, Inc. (WHG) demonstrates a well-rounded marketing mix that effectively addresses the needs of its clients and positions the company for growth. By offering diverse investment advisory services and maintaining a strong presence in both the U.S. and Canadian markets, WHG is poised to expand its reach internationally. Their focus on long-term client relationships and competitive pricing strategies further enhance their appeal, making them a formidable player in the investment management sector.

Article updated on 8 Nov 2024

Resources:

1. 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.
2. 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.