Westwood Holdings Group, Inc. Q2 FY2025 earnings call

• WHG was added to the Russell 2000 Index. - MDST surpassed the $100 million AUM milestone. - WEBs launched 11 sector ETFs. - MIS delivered its first client account. - Assets under management reached $18.3 billion, up 9% from Q2 of last year. - Market exhibited significant volatility with peaks, declines, and recoveries. - U.S. Value strategies: ~2/3 outperforming benchmarks over 3-year trailing, ~3/4 over 5-year trailing. - Multi-asset strategies: multi-asset income and Income Opportunity outperforming over 5-year trailing. - Credit Opportunity strategy celebrated 5-year anniversary with benchmark-beating results. - Salient Energy and real asset strategies delivered long-term performance; tactical growth and tactical plus provided downside protection. - Income enhancing strategies in real estate and energy provided income and capital appreciation. - Institutional channel: $251 million in gross sales, net outflows of $60 million. - Intermediary channel: $151 million in gross sales, net outflows of $33 million. - Westwood Wealth Management optimized operations, enhanced client experience, and invested in long-term strategy. - Transitioning to multifamily office model for ultra-high net worth families in Texas. - MDST ETF reached $100 million AUM, added 3 major broker-dealer platforms. - WEBs defined volatility ETFs launched 11 sector ETFs. - MIS funded first infrastructure product and seeded new liquid real asset strategy. - Energy secondaries raised $82 million in new capital this year with total AUM $165 million.

Total firm-wide assets under management and advisement totaled $18.3 billion at quarter end. Assets under management consisted of institutional assets of $9.2 billion (53% of the total), wealth management assets of $4.2 billion (24% of the total), and mutual fund assets of $3.9 billion (23% of the total). Over the quarter, assets under management experienced net outflows of $0.2 billion and market appreciation of $0.6 billion, while assets under advisement experienced market depreciation of $15 million and net outflows of $13 million.

• Expect continued market volatility driven by uncertain trade policy developments and economic indicators. - Focus on high-quality businesses with strong fundamentals positions well. - Institutional channel had $251 million in gross sales and net outflows of $60 million; funded 2 SMidCap CIT mandates and won a large defined contribution plan. - Intermediary channel had $151 million in gross sales with net outflows of $33 million. - Pipeline remains robust across multiple strategies; continued constructive conversations regarding managed investment solutions capabilities. - Transitioning to multifamily office model to serve ultra-high net worth families in Texas.

• Forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ. - Continued market volatility driven by uncertain trade policy developments and varying economic indicators.

Q: Are there any questions?

A: [Operator Instructions] And I'm showing no questions at this time.