The Westwood Income Opportunity strategy:

  • Is actively managed, utilizing a bottom-up security selection process.
  • Utilizes a tactical asset allocation approach.
  • Invests in dividend-paying common stocks, preferred stocks, convertible securities, royalty trusts, master limited partnerships (MLPs), real estate investment trusts (REITs), bonds (corporate, government, and Treasury-Inflation Protected Securities (TIPS)), and cash.
  • Controls risk by limiting the target weight of each holding, imposing maximum issuer weightings, and limiting sector weightings.  Equity and fixed income asset class weightings are unconstrained while the remaining asset classes are limited to 35%.

Performance

(As of 9/30/2017)

Inception date QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception
Income Opportunity Gross of Fees 1/1/2003 1.61% 8.02% 9.03% 5.08% 7.70% 7.38% 9.25%
Income Opportunity Net of Fees 1.40% 7.38% 8.17% 4.24% 6.90% 6.69% 8.63%
Custom Benchmark* 1.53% 5.73% 4.10% 6.04% 6.43% 5.38% 7.08%
Libor +3% 1.05% 2.99% 3.89% 3.49% 3.36% 3.72% 4.52% 

Investment Team

Westwood believes that team management creates a sense of ownership, accountability and consistency in the investment process. Our Income Opportunity team is supported by a fundamental research team that has cross capitalization responsibilities in specific sectors.

Within our process, Research Analysts generate investment ideas, while the Portfolio Team is responsible for portfolio construction. Each of our Research Analysts is also on a Portfolio Team, which leads to a very collaborative environment where we fully utilize the expertise of all investment team members. 

Portfolio Team

Mark R. Freeman, CFA

Chief Investment Officer

Todd L. Williams, CFA

Portfolio Manager/Research Analyst


Disclosures

*Custom Benchmark is comprised of 25% S&P 500 / 25% NAREIT / 25% 10-Year Treasury / 25% T-Bills

 

For purposes of compliance with the GIPS standards, the firm (“Westwood” or the “Firm”) is defined as the assets of Westwood Management Corp. and Westwood International Advisors Inc.  Westwood Management Corp. is an SEC registered investment adviser under the Investment Advisers Act of 1940 that provides investment supervisory services, managing equity and fixed income portfolios.  Westwood International Advisors Inc. is a registered portfolio manager with the Ontario Securities Commission and the Autorité des marchés financiers in Quebec that provides investment supervisory services for global and emerging markets equity portfolios.  Westwood Management Corp. and Westwood International Advisors Inc. are wholly owned subsidiaries of Westwood Holdings Group, Inc. (NYSE: WHG). Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request, as is a complete list and description of the Firm’s composites, by contacting performance@westwoodgroup.com.

 

Westwood Management Corp. claims compliance with the Global Investment Performance Standards (GIPS®).  Unless otherwise stated, performance shown is in U.S. Dollars.

 

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. The minimum portfolio size for inclusion in the Income Opportunity Composite is $5 million beginning January 1, 2006. Portfolio returns reflect the reinvestment of dividend and interest income. The Income Opportunity Composite is compared to a four-part custom benchmark (25% S&P 500, 25% NAREIT, 25% 10-Year Treasury, 25% 3-Month T-Bill), which is rebalanced monthly. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NAREIT Equity Index is an unmanaged index reflecting performance of the U.S. real estate investment trust market. Investments cannot be made directly into the NAREIT Equity Index.  The return of the 3-month Treasury bill and the 10-year Treasury note are calculated by Citigroup each month and published in their Global Bond Index. LIBOR stands for “London Inter-Bank Offered Rate.” It is the interest rate at which banks can borrow funds from other banks in the London inter-bank market. The LIBOR is fixed on a daily basis by the British Bankers’ Association and is derived from a filtered average of the world’s most creditworthy banks’ inter-bank deposit rates for larger loans with maturities between overnight and one full year. All of the indices described above are unmanaged market indices. The comparative index returns include reinvestment of income but do not include transaction costs or management fees.