IMPORTANT NOTES: Halbert Wealth Management, Inc. (HWM) and Wellesley Investment Advisors ("WIA") are Investment Advisors registered with the SEC and/or their respective states.  This report does not constitute a solicitation to residents of any jurisdiction where the program mentioned may not be available.  Information in this report is taken from sources believed to be reliable but its accuracy cannot be guaranteed.  Any opinions stated are intended as general observations, not specific or personal advice.  Please consult a competent professional and the appropriate disclosure documents before making any investment decisions.  There is no foolproof way of selecting an Investment Advisor.  Investments mentioned involve risk, and not all investments mentioned herein are appropriate for all investors.  HWM receives compensation from WIA in exchange for introducing client accounts.  For more information on HWM or WIA, please consult the respective Form ADV II for the Advisor, available at no charge upon request.   Any offer or solicitation can only be made by way of the Form ADV Part II.  Officers, employees and affiliates of HWM may have investments managed by Advisors discussed herein and others.

This presentation reflects only the convertible bond portion of WIA's client accounts.  Returns are based on all convertible bond positions held in accounts of all WIA clients during the periods reflected.  Actual client accounts include positions other than convertible bond positions.  Such other positions are not included in this performance presentation.  Accordingly, the actual return of WIA client accounts is different, in some cases substantially, from the performance information presented in convertible bonds.  During the periods reflected, WIA did not manage any other accounts that included only convertible bonds in their portfolios. Returns are net of a 1.75% annual management fee, which is the highest management fee charged by WIA during the period.  Actual management fee rates vary based on each client's assets under WIA's management. 

WIA's convertible returns have been calculated using the following methodology.  The bond’s market value on the last day of the month is determined as is the weight of each bond holding in the portfolio.  Each bond's return for the month is calculated.  It was assumed that the bond entered the portfolio on the first day of the month in which it was first purchased.  When a bond is completely sold out of a portfolio, the prior month-end value is adjusted to reflect the final sales price. Each bond's return for the month was weighted by the bond's weight in the portfolio.  The bond’s weighted returns for the month were summed to get the portfolio's return for the month.  These numbers were compounded to calculate the annual returns.

When reviewing past performance records, it is important to note that different accounts, even though they are traded pursuant to the same strategy, can have varying results.  The reasons for this include: i) the period of time in which the accounts are active; ii) the timing of contributions and withdrawals; iii) the account size; iv) the minimum investment requirements and/or withdrawal restrictions; and v) the rate of brokerage commissions and transaction fees charged to an account. There can be no assurance that an account opened by any person will achieve performance returns similar to those provided herein for accounts traded pursuant to the Wellesley Limited Risk trading program.

In addition, you should be aware that (i) the Wellesley Limited Risk trading program involves risk; (ii) the Wellesley Limited Risk trading program’s performance may be volatile; (iii) an investor could lose all or a substantial amount of his or her investment in the program; (iv) Wellesley will have trading authority over an investor’s account and the use of a single advisor could mean lack of diversification and consequently higher risk; and (v) the Wellesley Limited Risk trading  program’s fees and expenses (if any) will reduce an investor’s trading profits, or increase any trading losses.

Past performance is not indicative of future results.  The performance presented may not be representative of investments held in any client account or performance realized in any one client's account.  An investment in convertible bonds involves a risk of loss.  The value of an investment in convertible bonds may decrease as well as increase. Performance does not reflect the effects of taxation, which results in lower returns to taxable investors.
 
The S & P 500 Index, an unmanaged market capitalization-weighted index of 500 common stocks, has been shown because it is one widely accepted measure of market performance and the performance of a convertible bond is affected by the performance of the corresponding equity security which is often included in the S & P 500 Index.  Like most other indices, the S & P 500 Index is unmanaged and does include the reinvestment of dividends and does not reflect transaction costs or management fees.  WIA accounts differ from an index in that they are actively managed and may include substantially fewer and different securities than those comprising an index.  The Lehman Aggregate Bond Index is an index comprised of intermediate term government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market.   The performance of the S & P 500 Stock Index (with dividends reinvested) and the Lehman Aggregate Bond Index is not meant to imply that investors should consider an investment in the Wellesley’s trading program as comparable to an investment in the “blue chip” stocks that comprise the S & P 500 Stock Index or the various bonds that comprise the Lehman Aggregate Bond Index.  Statistics for "Worst Drawdown" are calculated at month end.  Drawdowns within the month may have been greater.  The returns do not reflect the reinvestment of interest income and dividend income. The results shown are for a limited time period and may not be representative of the results that would be achieved over a full market cycle or in different economic or market conditions.