Latest news with #MDST
Globe and Mail
25-06-2025
- Business
- Globe and Mail
Westwood Salient Enhanced Midstream Income ETF (NYSE: MDST) Surpasses $100 Million in Assets, Underscoring Strong Investor Demand
DALLAS, June 25, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group (NYSE: WHG), a boutique asset management, trust and wealth services firm, is proud to announce that the Westwood Salient Enhanced Midstream Income ETF (NYSE: MDST) ('MDST' or the 'Fund'). has surpassed $100 million in assets under management. This important milestone comes just over a year after the Fund's launch and validates the differentiated strategy that has resonated with both advisors and investors seeking effective income solutions. Since inception, MDST has consistently delivered on its objective of providing a steady stream of income, with an annualized distribution rate of 10.2%1 (distributed monthly). The Fund's rapid growth and enthusiastic investor engagement highlight the increasing demand for innovative income-generating strategies in today's evolving market environment. MDST offers investors targeted exposure to the midstream energy sector, enhanced by a covered-call strategy that seeks to boost income through options premiums. This approach allows investors to participate in the relative stability and cash flow strength of midstream infrastructure companies, while seeking to benefit from additional yield and potential volatility mitigation. 'Crossing $100 million in assets is a significant milestone that underscores the confidence advisors and investors have placed in MDST,' said Ted Gardner, a senior portfolio manager on Westwood's Energy team. 'Our strategy was built with income investors in mind, and this level of engagement validates our approach. We believe the midstream sector remains a compelling space for yield generation, and our enhanced strategy has helped investors capitalize on strong cash flows while managing risk.' Parag Sanghani, Energy team senior portfolio manager, added, 'We believe MDST's aim to provide consistent distributions, and the innovative combination of dividend income and options premiums have made it a standout solution for those seeking income without excessive risk. Surpassing $100 million in assets demonstrates that our approach is resonating with the market, and we remain committed to delivering attractive, tax-efficient income with a disciplined investment process.' With energy infrastructure playing a pivotal role in global markets, MDST seeks to provide a diversified, liquid and tax-efficient strategy for investors seeking both income and exposure to a resilient asset class without the need to file a K-1. The Fund's structure aligns with Westwood's ongoing commitment to transparency, innovation and investor-focused strategies. Brian Casey, CEO of Westwood Holdings Group, stated, 'We are thrilled to celebrate this milestone for MDST, which not only validates the Fund's strategy but also reflects the trust and engagement of our clients. As our ETF platform continues to grow, we remain focused on delivering outcome-driven investment solutions that meet the evolving needs of investors. We look forward to building on this momentum.' The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free (800) 994- 0755. NAV Return represents the closing price of underlying securities. Market Return is calculated using the price which investors buy and sell ETF shares in the market. The market returns in the table are based upon the midpoint of the bid/ask spread at 4:00 pm EST, and do not represent the returns you would have received if you traded shares at other times. 1 The Annualized Distribution Rate shown is as of May 29, 2025. The Annualized Distribution Rate is the rate an investor would receive if the most recent distribution, which includes option premium income, remained the same going forward. The Annualized Distribution Rate is calculated by multiplying an ETF's Distribution per Share by twelve (12), and dividing the resulting amount by the ETF's most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. The current month's distribution is 100% return of capital (ROC) for MDST. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF's NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future. The SEC 30-Day Yield represents net investment income earned by the Fund over a 30-day period, expressed as an annual percentage rate based on the Fund's share price at the end of the 30-day period. 30-day SEC yield is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield. The subsidized yield includes the effect of any fee waivers or expense reimbursements, while the unsubsidized yield excludes these cost reductions, showing what the yield would be if the fund had to cover all expenses from its own income. An Options Premium is the price paid to purchase an option contract. A Covered Call Option is a financial contract that gives the holder the right, but not the obligation, to buy a specific asset at a predetermined price (strike price) within a specified time period. Dividend Yield is a dividend expressed as a percentage of a current share price. For more information on the Westwood Salient Enhanced Midstream Income ETF and other investment solutions offered by Westwood, please visit ABOUT WESTWOOD HOLDINGS GROUP, INC. Westwood Holdings Group, Inc. (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood's client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors' short and long-term needs. Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values—integrity, reliability, responsiveness, adaptability, flexibility and collaboration—and underpin our constant pursuit of excellence. For more information on Westwood, please visit . Westwood ETFs are distributed by Northern Lights Distributors, LLC (Member FINRA). Northern Lights Distributors and Westwood ETFs (or Westwood Holdings Group, Inc.) are separate and unaffiliated. To determine if these Funds are an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the Fund prospectus, which may be obtained by calling 800.994.0755. Please read the prospectus carefully before investing. The Fund's investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and energy infrastructure companies (including midstream MLPs and energy infrastructure companies) in which the Fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund's profitability. Covered Call Strategy Risk: This risk arises when an investor holds a long position in a stock and simultaneously sells a call option against it. While this strategy can generate income, it limits potential upside gains if the stock price rises significantly above the strike price of the option. Options Risk/Flex Options Risk: This refers to the inherent risks associated with trading options, such as the risk of losing the entire premium paid for an option if it expires out-of-the-money. Flex options risk is a specific type of options risk that arises from the flexibility of flex options, which can be adjusted or exercised under certain conditions. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP were to be obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital or capital gain). Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLP funds. The tax benefits received by an investor investing in the Fund differs from that of a direct investment in an MLP by an investor. This document does not constitute an offering of any security, product, service or fund, including the Fund, for which an offer can be made only by the Fund's prospectus. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description. No investment strategy or process can guarantee performance results. Diversification does not ensure a profit or guarantee against loss. There is no guarantee that the Fund's underlying investments will continue to pay dividends. Investing involves risk, including loss of principal. The value of the portfolio will fluctuate with the value of the underlying securities. ETFs trade like a stock, and there will be brokerage commissions associated with buying and selling exchange traded funds unless trading occurs in a fee-based account. ETFs may trade for less than their net asset value. Investing in ETFs may not be suitable for all investors. Westwood ETFs does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information. K-1: A tax document issued by pass-through entities (partnerships, LLCs, S corporations) that reports an investor's share of income, losses, deductions, and credits. K-1 investments typically involve more complex tax reporting than traditional securities and may require professional tax preparation assistance. Midstream energy/midstream infrastructure companies are involved in the transportation, storage, and processing of oil, natural gas, and natural gas liquids.
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Westwood Holdings Group, Inc. Reports First Quarter 2025 Results
Exceptional sales performance drives positive flows in Institutional and Intermediary channels Strategic ETF platform expansion continues with launch of LBRTY Global Equity ETF (NYSE:BFRE) One-year anniversary of Westwood Salient Enhanced Midstream Income (MDST) with an annualized distribution rate of 10.5% DALLAS, April 30, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported first quarter 2025 earnings. Significant items included: Investment strategies beating their primary benchmarks included SMidCap, SmallCap Value, Select Equity, Dividend Select, Enhanced Balanced, Income Opportunity, Alternative Income and Balanced. SMidcap and Select Equity posted top third rankings in their peer universe, Dividend Select posted a top quarter ranking in its peer universe. Quarterly revenues totaled $23.3 million, down from the fourth quarter's $25.6 million and up from $22.7 million a year ago. Income of $0.5 million compared with $2.1 million in the fourth quarter $2.3 million in 2024's first quarter. Non-GAAP Economic Earnings of $2.5 million compared with $3.4 million in the fourth quarter and $3.0 million in the first quarter of 2024. Westwood held $26.9 million in cash and liquid investments as of March 31, 2025, down $17.7 million from the fourth quarter following contingent consideration and compensation and benefits payments. Stockholders' equity totaled $119.3 million and we have no debt. We declared a cash dividend of $0.15 per common share, payable on July 1, 2025 to stockholders of record on June 2, 2025. Brian Casey, Westwood's CEO, commented, "We are extremely pleased with our strong start to 2025, delivering exceptional results across our business. Our Institutional channel achieved remarkable success, highlighted by winning a significant nearly $1 billion sub-advisory mandate in our Small Cap Value strategy. Our Intermediary channel recorded its best sales quarter since 2022, with particular strength in our energy offerings. Our ETF business continues to gain momentum, with our flagship MDST ETF reaching its one-year anniversary with a 10.5% annualized distribution rate, while we successfully launched our innovative Westwood LBRTY Global Equity ETF. With our diverse product lineup, robust pipeline, and continued focus on high-quality investments, we are well-positioned to navigate market uncertainties and deliver long-term value to our clients and shareholders." Revenues decreased from the fourth quarter due to lower performance-based fees and increased from last year's first quarter due to higher average assets under management ("AUM"). Firmwide assets under management and advisement totaled $18.0 billion, consisting of AUM of $17.0 billion and assets under advisement ("AUA") of $1.0 billion. First quarter income of $0.5 million compared to the fourth quarter's $2.1 million on lower revenues and higher operating expenses, offset by lower income taxes and changes in the fair value of contingent consideration. Diluted earnings per share ("EPS") of $0.05 compared to $0.24 for the fourth quarter. Non-GAAP Economic Earnings of $2.5 million, or $0.29 per share, compared with $3.4 million, or $0.39 per share, in the fourth quarter. First quarter income of $0.5 million compared to last year's first quarter of $2.3 million due to changes in the fair value of contingent consideration in 2024 offset by higher revenues and lower income taxes. Diluted EPS of $0.05 compared with $0.27 per share for 2024's first quarter. Non-GAAP Economic Earnings were $2.5 million, or $0.29 per share, compared with $3.0 million, or $0.36 per share, in the first quarter of 2024. Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables. Westwood will host a conference call to discuss first quarter 2025 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, please register here: After registering, you will be provided with a dial-in number containing a personalized PIN. To view the webcast, please register here: Once registered, an email will be sent with important details for this conference call, as well as a unique Registrant ID. ABOUT WESTWOOD HOLDINGS GROUP Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood's client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors' short and long-term needs. Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values - integrity, reliability, responsiveness, adaptability, teamwork and driving results - and underpin our constant pursuit of excellence. For more information on Westwood, please visit Forward-looking Statements Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as 'anticipate,' 'believe,' 'expect,' 'could,' and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: the composition and market value of our AUM and AUA; our ability to maintain our fee structure in light of competitive fee pressures; risks associated with actions of activist stockholders; distributions to our common stockholders have included and may in the future include a return of capital; inclusion of foreign company investments in our AUM; regulations adversely affecting the financial services industry; our ability to maintain effective cyber security; litigation risks; our ability to develop and market new investment strategies successfully; our reputation and our relationships with current and potential customers; our ability to attract and retain qualified personnel; our ability to perform operational tasks; our ability to select and oversee third-party vendors; our dependence on the operations and funds of our subsidiaries; our ability to maintain effective information systems; our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us; our stock is thinly traded and may be subject to volatility; competition in the investment management industry; our ability to avoid termination of client agreements and the related investment redemptions; the significant concentration of our revenues in a small number of customers; we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties; our relationships with investment consulting firms; our ability to identify and execute on our strategic initiatives; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood's SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2024 and its quarterly report on Form 10-Q for the quarter ended March 31, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. SOURCE: Westwood Holdings Group, Inc. (in thousands, except per share and share amounts) (unaudited) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 REVENUES: Advisory fees: Asset-based $ 17,731 $ 18,025 $ 16,817 Performance-based — 1,393 — Trust fees 5,429 5,635 5,113 Trust performance-based fees — 482 — Other, net 92 47 802 Total revenues 23,252 25,582 22,732 EXPENSES: Employee compensation and benefits 14,501 14,090 14,711 Sales and marketing 760 641 628 Westwood mutual funds 897 880 721 Information technology 2,667 2,450 2,290 Professional services 1,613 717 1,489 General and administrative 2,882 3,044 2,901 (Gain) loss from change in fair value of contingent consideration — 1,199 (2,949) Total expenses 23,320 23,021 19,791 Net operating income (loss) (68) 2,561 2,941 Net investment income 383 593 455 Other income 277 219 185 Income before income taxes 592 3,373 3,581 Income tax provision 115 1,274 1,415 Net income $ 477 $ 2,099 $ 2,166 Less: income (loss) attributable to noncontrolling interest (1) 43 (130) Income attributable to Westwood Holdings Group, Inc. $ 478 $ 2,056 $ 2,296 Earnings per Westwood Holdings Group, Inc. share: Basic $ 0.06 $ 0.25 $ 0.28 Diluted $ 0.05 $ 0.24 $ 0.27 Weighted average shares outstanding: Basic 8,253,912 8,271,614 8,099,028 Diluted 8,781,743 8,756,976 8,392,496 Economic Earnings $ 2,514 $ 3,377 $ 3,012 Economic EPS $ 0.29 $ 0.39 $ 0.36 Dividends declared per share $ 0.15 $ 0.15 $ 0.15 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) (unaudited) March 31, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 9,418 $ 18,847 Accounts receivable 16,062 14,453 Investments, at fair value (amortized cost of $18,216 and $26,788) 19,696 27,694 Investments under measurement alternative 11,747 10,747 Equity method investments 4,208 4,250 Income taxes receivable 186 295 Other assets 7,537 6,780 Goodwill 39,501 39,501 Deferred income taxes 2,469 2,244 Operating lease right-of-use assets 2,299 2,559 Intangible assets, net 21,040 21,668 Property and equipment, net of accumulated depreciation of $8,556 and $8,424 825 951 Total assets $ 134,988 $ 149,989 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $ 6,035 $ 6,413 Dividends payable 2,299 2,466 Compensation and benefits payable 2,416 10,924 Operating lease liabilities 2,852 3,197 Contingent consideration — 4,657 Total liabilities 13,602 27,657 Stockholders' Equity: Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,363,367 and 12,137,080, respectively and outstanding 9,379,675 and 9,234,575, respectively 124 122 Additional paid-in capital 202,299 202,239 Treasury stock, at cost – 2,983,692 and 2,902,505, respectively (89,612) (88,277) Retained earnings 6,535 6,207 Total Westwood Holdings Group, Inc. stockholders' equity 119,346 120,291 Noncontrolling interest in consolidated subsidiary 2,040 2,041 Total equity 121,386 122,332 Total liabilities and stockholders' equity $ 134,988 $ 149,989 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 477 $ 2,166 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 132 174 Amortization of intangible assets 1,045 1,042 Net change in unrealized (appreciation) depreciation on investments 80 (632) Stock-based compensation expense 1,327 1,515 Deferred income taxes (226) (844) Non-cash lease expense 296 269 Fair value change of contingent consideration — (2,949) Changes in operating assets and liabilities: Net (purchases) sales of trading securities 7,959 12,404 Accounts receivable (1,608) (784) Other current assets (696) (242) Accounts payable and accrued liabilities (464) 719 Compensation and benefits payable (8,508) (6,591) Income taxes payable 109 2,240 Other liabilities (381) (354) Contingent consideration (4,442) — Net cash (used in) provided by operating activities (4,900) 8,133 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (6) (3) Purchases of investments (1,000) — Additions to internally developed software (412) — Net cash used in investing activities (1,418) (3) CASH FLOWS FROM FINANCING ACTIVITIES: Restricted stock returned for payment of taxes (1,335) (940) Payment of contingent consideration in acquisition (201) — Cash dividends (1,575) (1,724) Net cash used in financing activities (3,111) (2,664) NET CHANGE IN CASH AND CASH EQUIVALENTS (9,429) 5,466 Cash and cash equivalents, beginning of period 18,847 20,422 Cash and cash equivalents, end of period $ 9,418 $ 25,888 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for income taxes $ 232 $ 9 Accrued dividends $ 2,299 $ 2,047 Additional operating lease right-of-use assets $ 36 $ — WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES Reconciliation of Income Attributable to Westwood Holdings Group, Inc. to Economic Earnings (in thousands, except per share and share amounts) (unaudited) As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings and Economic EPS. We provide these measures in addition to, not as a substitute for, income attributable to Westwood Holdings Group, Inc. and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic Earnings and Economic EPS to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP income attributable to Westwood Holdings Group, Inc. or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP. We define Economic Earnings as income attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic Earnings because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings divided by diluted weighted average shares outstanding.
