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.   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 2 for the Advisor, available at no charge upon request.    Officers, employees and affiliates of HWM may have investments managed by Advisors discussed herein and others.

For all years up to and including 2009, this presentation reflects only the convertible securities portion of WIA's client accounts.  Returns are based on all securities held in accounts of all WIA clients and the Miller Convertible Fund during the periods reflected.  Actual client accounts may include positions other than convertible securities.  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 for convertible securities.    

WIA's convertible returns during this period have been calculated using the following methodology.  Such methodology includes several assumptions that results from systems limitations on aggregating the convertible security portion of multiple client account.  Returns do reflect the reinvestment of interest and dividend income, but do not reflect transaction costs. The security’s market value on the last day of the month is determined as is the weight of each security in the portfolio (individual security value/total security value).  Each security's return for the month is calculated (monthly interest earned plus/minus monthly price change).  It was assumed that the security entered the portfolio on the first day of the month in which it was first purchased.  When a security is completely sold out of a portfolio, the prior month-end value is adjusted to reflect the final sales price. Each security's return for the month was weighted by the security's weight in the portfolio.  The security’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.

For all years starting in 2010 and after, performance numbers were calculated in accordance with Global Investment Performance Standards (GIPS).  The monthly returns are size-weighted average returns and are compounded to calculate annual returns.  These performance numbers have not been audited yet and are not GIPS compliant.  Performance numbers include all accounts valued at least $250,000 and consisted of only cash and/or registered convertible securities.  Accounts with 144A non-registered bonds were not included in this presentation. Performance measurement for clients generally began on the last day of the month the account had at least $250,000 of value, consisting of only cash and/or registered convertible bonds.  However, clients who started with less than $250,000 were included in this presentation once the total account value of their cash and registered convertible bonds maintained a level of greater than $250,000 for 6 months.  Performance measurement for clients generally ended on the first day of the month in which the client account either terminated or held managed positions other than cash and registered convertible bonds.   Clients whose account started with at least $250,000 of cash and registered convertible bonds were excluded from the presentation once their total value of cash and registered convertible bonds remained below $250,000 for 6 months.   

The illustration, “$500,000 Investment at Inception with Flat-Dollar Annual Withdrawals and 3% C.O.L.A.” is hypothetical.  It is based on WIA Convertible Bond Returns, hypothetical $500,000 investments in WIA, and end of year withdrawals equal to flat dollar annual withdrawals with a 3% C.O.L.A.  No actual WIA client received these exact returns or withdrew these exact amounts.  There are inherent limitations in using hypothetical results, particularly the fact that such results do not represent actual trading, and that they may not reflect the impact that material economic and market factors might have had on the adviser's decision-making process if the adviser were actually managing client money. 

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 securities involves a risk of loss.  Returns reflect the deduction of a 1.75% annual management fee, which is deducted monthly.   Fees are deducted quarterly in actual client accounts.  The value of an investment in convertible securities may decrease as well as increase. Performance does not reflect the effects of taxation, which results in lower returns to taxable investors.  Consult your tax advisor.  “Annualized” returns take into account compounding of earnings over the course of an investment’s track record.
 
As benchmarks for comparison, the Standard & Poor’s 500 Stock Index and the Merrill Lynch All Convertibles Index (both of which include interest and dividends) represent unmanaged, passive buy-and-hold approaches.  The volatility and investment characteristics of the S&P 500 or the Merrill Lynch All Convertibles Index may differ materially (more or less) from that of the Wellesley Limited Risk program, and these Indexes cannot be invested in directly.  The performance of the S & P 500 Stock Index and the Merrill Lynch All Convertibles Index is not meant to imply that investors should consider an investment in the actively managed Wellesley Limited Risk program as comparable to an investment in the “blue chip” stocks that comprise the S&P 500 Stock Index or the approximately 500 issues of bonds and preferred stocks of US registered companies that comprise the Merrill Lynch All Convertibles Index. Statistics for "Worst Drawdown" are calculated at month end.  Drawdowns within the month may have been greater.  The returns 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.