Wellesley Asset Management, Inc.

Wellesley Asset Management, Inc. Managing Risk In Times of Volatility & Rising Interest Rates Convertible Bond Specialists September 30, 2016 Wellesley Asset Management, Inc. 2016 1

Our Firm History Wellesley is an SEC-registered investment advisory firm serving institutions, RIA s, and other investment advisors & High Net Worth Individuals Established: 1991 Employees: Over 35 Assets Under Management: Over $2 Billion 1 Ranking & Recognition 2 Greg Miller, CPA, CEO and Co-CIO was ranked #1 in Massachusetts in Barron s Top 1,200 Financial Advisors in America list for the 2 nd consecutive year Greg Miller has ranked nationally in the Barron s Top 100 Independent Advisors list for six consecutive years. In 2016 he was ranked #9 nationwide Primary Goals: 1. To preserve capital and generate positive returns annually 2. To outperform both equities and fixed income over complete market cycles Investment Strategy: Absolute return strategy deploying the use of convertible bonds 1. As of 9/30/2016 2. Please see recent awards & recognition slide on page 23 for additional information Wellesley Asset Management, Inc. 2016 2

Portfolio Management Firm Overview Investment Professionals Greg Miller, CPA CEO, Co-CIO & Portfolio Manager BS, Boston University MBA, Babson College Over 30 years industry experience Darlene Murphy, CPA, CFP, President BA, Simmons College MBA, Babson College Over 20 years industry experience Michael Miller Co-CIO & Portfolio Manager BS, American University MBA, Babson College Over 10 years industry experience James Buckham, CFA Portfolio Manager BA, Boston University MBA, Bentley University Over 20 years industry experience Analyst/Trader Title Education Ryan Araujo Paul Samuels, CPA*, CA Sean Edelman Nicholas Felici Stephen Marzo Caitlyn Lau Convertible Bond Trader Treasurer Associate Portfolio Analyst Senior Analyst Analyst Analyst BS, Northeastern University; MBA, Boston University B COMM, Concordia University; MBA, UNH BA, Kenyon College BA, Gettysburg College BS, Bryant University BS, Bentley University *Paul holds the Chartered Professional Accountant designation in Canada. Paul is not a Certified Public Accountant in the United States. Wellesley Asset Management, Inc. 2016 3

Convertibles as an Asset Class Get Paid While You Wait Convertible bonds combine the stated repayment dates and yields of bonds and the upside potential of stocks. Convertible bonds offer investors the potential to get paid with interest during market corrections or bear markets while they wait for the next market recovery or bull stock market. Wellesley Asset Management, Inc. 2016 4

Investment Philosophy & Process Stock Appreciation Example Gilead Sciences Inc. (GILD) 1.625% Convertible Bond, Due 5/1/2016 Convertible to 44.043 shares July 26, 2010 Purchased GILD @ 100 March 31, 2015 Sold GILD @ 434.03 Convertible Bond $1,000.00 Per bond $4,340.30 Per bond Stock $33.40 before split $16.70 after 2:1 split $98.13 Per share Convertible Bond 347.89% Stock 464.43% 587.60% GAIN (LOSS) Interest / dividend yield 340.30% 7.59% 587.60% 0.00% Please see footnote disclosure regarding sample holdings. Prices are per Kynex Specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients are illustrative in nature and their performance is not necessarily representative of other securities in client accounts. Wellesley Asset Management, Inc. 2016 5

Stock Depreciation Example Investment Philosophy & Process Best Buy Co., Inc. (BBY) 2.25% Convertible Bond, Due 1/15/2022 Put Date 1/15/2012 Convertible to 21.739 shares May 18, 2009 Purchased BBY @ 100.643 Convertible Bond $1,006.43 Per bond Stock $36.33 Per share Convertible Bond Stock January 15, 2012 Put BBY @ 100.00 $1,000.00 Per bond $24.29 Per share GAIN (LOSS) Interest / dividend yield -0.64% 6.21% -33.15% 4.72% Please see footnote disclosure regarding sample holdings. Specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients are illustrative in nature and their performance is not necessarily representative of other securities in client accounts. Wellesley Asset Management, Inc. 2016 6

Convertibles as an Asset Class Convertible Bond Advantages: a) Yield advantage over equities b) Capital appreciation potential c) Asymmetric returns that enhance the risk-reward profile in a portfolio d) History of strong risk-adjusted returns e) Capital preservation f) Unlike other types of bonds, convertible bonds have generally performed well during periods of rising interest rates g) Convertible bonds have generally performed well in inflationary periods Wellesley Asset Management, Inc. 2016 7

Convertibles A Long Term Approach Capture the Natural Asymmetric Returns of Convertible Bonds - 50%-70% of market upside, and 0%-30% of market downside in any given year - Manage balanced portfolios Employ an Understandable and Repeatable Process - Managing convertible bonds for over 20 years Focus on Principal Protection - Cost of losing money on the downside is disproportionate to making money on the upside - Money can not only be made in strong markets but also saved in weak ones Benchmark Agnostic - Portfolios not constructed to track any particular index - Emphasis on absolute return Wellesley Asset Management, Inc. 2016 8

Index Performance Capture Ratio vs. 500 TR 40 30 20 10 0 10 20 30 40 50 s Capture Ratio 2000 0% 2001 0% 2002 0% 2003 60% 2004 68% 2005 41% 2006 76% 2007 142% 2008 48% 2009 128% 2010 81% 2011 0% 2012 63% 2013 62% 2014 46% 2015 59% 2016 YTD 117% 500 Down 500 Up Please see description of indices in the appendix. All numbers are approximate. Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 9

Convertibles as an Asset Class Who Should Invest in Convertible Bonds? a) Bond holders seeking less exposure to Treasury bonds, municipal bonds or straight corporate bonds, and greater potential upside b) Investors wanting reduced equity downside exposure without giving up stock market upside c) Investors looking to enhance the risk-reward profile of their portfolio d) Investors fearful of rising interest rates on straight fixed income products Wellesley Asset Management, Inc. 2016 10

Convertibles as an Asset Class Year Number of Bear Markets Percent Decline in DJIA 1900s 3 46%, 49%, 27% 1910s 3 24%, 40%, 47% 1920s 1 89% 1930s 3 23%, 49%, 41% 1940s 1 24% 1950s 1 19%* 1960s 3 27%, 26%, 36% 1970s 2 45%, 27% 1980s 2 24%, 36% 1990s 1 21% 2000s 2 38%, 53% * Since the 500 did have a 22% decline in 1957 many investment professionals consider the decade to have had a (single) bear market. Wellesley Asset Management, Inc. 2016 11

WAM s Three Rules Rule #1 Capital Preservation is Primary Goal Rule #2 Invest for Absolute Returns Not Relative Returns Rule #3 Invest with a Time Horizon Through Complete Market Cycles Wellesley Asset Management, Inc. 2016 12

Index Performance Risk vs. Return 10% 9% 8% 7% RUSSELL 2000 MSCI Annualized Return 6% 5% 4% Barclays US Agg V0A0 RUSSELL 1000 S & P 500 MSCI ACWI MSCI EAFE 3% 2% 1% 0% 0% 5% 10% 15% 20% 25% Annualized Standard Deviation Performance is from 1/1/2000 through 9/30/2016 Please see description of indices in the appendix. All numbers are approximate. Past performance is not indicative of future results. Fixed Income Index Domestic Equity Index International Equity Index Wellesley Asset Management, Inc. 2016 13

Index Performance Year 500 TR Barclays US Agg MLV0A0 R2000 2000 18.08% -9.10% 11.63% -11.70% -3.02% 2001 8.05% -11.89% 8.44% -3.95% 2.49% 2002 5.10% -22.10% 10.26% -4.95% -20.48% 2003 17.25% 28.68% 4.10% 25.80% 47.25% 2004 7.35% 10.88% 4.34% 8.49% 18.33% 2005 2.01% 4.91% 2.43% -0.34% 4.55% 2006 12.05% 15.79% 4.33% 12.75% 18.37% 2007 7.79% 5.49% 6.97% 4.12% -1.57% 2008-17.74% -37.00% 5.23% -33.02% -33.79% 2009 33.95% 26.46% 5.93% 47.19% 27.17% 2010 12.13% 15.06% 6.54% 16.52% 26.85% 2011-1.12% 2.11% 7.85% -3.42% -4.18% 2012 10.09% 16.00% 4.22% 14.41% 16.35% 2013 20.24% 32.39% -2.03% 25.00% 38.82% 2014 6.28% 13.69% 5.97% 9.33% 4.89% 2015 0.81% 1.38% 0.55% -2.75% -4.41% 2016 YTD 9.14% 7.84% 5.80% 8.87% 11.46% Since 2000 ( Inception of ) 8.52% 4.34% 5.48% 5.27% 6.99% Please see description of indices in the appendix. Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 14

Investing with Convertibles Over Complete Market Cycles Index Complete Performance Market Cycle Over Performance Complete (Annualized): Market Cycles 12.00% Agg Bond V0A0 R2000 10.00% 9.86% 8.00% 7.86% 7.35% 6.00% 4.00% 6.38% 3.93% 4.68% 4.31% 6.46% 6.13% 6.23% 4.69% 2.00% 2.34% 2.41% 1.98% 0.34% 0.00% Dec 31, 99 - Oct 31, 07 (bearbull) Sep 30, 02 - Feb 28, 09 (bullbear) Oct 31, 07 - Sep 30, 16 (bearbull) Please see description of indices and definition of market cycles in the appendix. All numbers are approximate. Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 15

Investing with Convertibles Index Total Return Over Current Full Market Cycle October 31, 2007 through September 30, 2016 Includes Bear & Bull Market Cycle Total Return: Thomson Reuters Wellesley = 88.20% 500 Total Return = 70.03% Barclays U.S. Aggregate Bond = 50.49% Merrill Lynch V0A0 = 74.75% Russell 2000 = 71.39% Please see description of indices and definition of market cycles in the appendix. All numbers are approximate. Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 16

Annual Returns 2000-2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Annualized 16 Year Return Annualized 16 Year Standard Deviation 18.08% 8.44% 10.25% 56.28% 25.95% 34.54% 32.59% 39.78% 6.67% 79.02% 26.86% 7.84% 18.63% 38.82% 13.69% 1.38% 8.34% 22.68% 11.63% 8.39% 5.87% 47.25% 21.36% 17.11% 27.16% 17.12% 5.24% 57.51% 19.20% 4.38% 17.39% 32.39% 6.28% 0.81% 6.60% 20.10% 8.06% 8.05% 5.10% 41.41% 18.33% 4.91% 18.37% 7.79% 17.74% 42.14% 15.19% 2.11% 16.35% 20.24% 5.97% 0.56% 6.51% 17.78% 3.02% 4.50% 1.89% 28.68% 10.88% 4.55% 15.79% 7.31% 26.39% 33.95% 15.06% 1.55% 16.00% 15.78% 4.89% 0.55% 5.85% 15.13% 5.12% 2.49% 6.00% 28.15% 10.87% 2.74% 12.05% 6.97% 33.79% 27.17% 12.13% 1.12% 15.58% 7.42% 2.49% 4.41% 5.37% 9.75% 9.10% 2.37% 14.67% 17.25% 7.35% 2.43% 11.77% 5.49% 37.00% 26.46% 11.60% 4.18% 10.09% 0.36% 0.63% 4.64% 4.06% 9.05% 15.09% 11.89% 20.48% 4.10% 4.34% 2.01% 4.33% 2.19% 45.24% 5.93% 6.54% 13.33% 4.21% 2.02% 1.82% 5.25% 3.17% 3.47% 30.61% 19.50% 22.10% 1.92% 0.91% 1.62% 3.93% 1.57% 53.18% 0.80% 2.40% 18.17% 0.43% 2.27% 3.44% 14.60% 3.12% 1.53% 500 Total Return Thompson Reuters Wellesley Russell 2000 Small Cap Barclays U.S. Aggregate Bond Investment Grade Bond MSCI ACWI EX USA Index International Equity BofA Merrill Lynch U.S. High Yield Master II High Yield Bond MSCI Emerging Markets Barclays U.S. Treasury Bond 1 3 Year Term Please see description of indices in the appendix. Please see performance notes in the appendix. All numbers are approximate. Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 17

Investing with Convertibles Hypothetical Growth of $1M invested on December 31, 1999 500 Total Return Year Return Annual 5% Withdrawal Balance Year Return Annual 5% Withdrawal Balance 2000 18.1% 59,040 1,121,760 2000-9.1% 45,450 863,550 2001 8.1% 60,603 1,151,459 2001-11.9% 38,044 722,830 2002 5.1% 60,509 1,149,674 2002-22.1% 28,154 534,930 2003 17.3% 67,400 1,280,593 2003 28.7% 34,417 653,931 2004 7.4% 68,736 1,305,981 2004 10.9% 36,254 688,825 2005 2.0% 66,612 1,265,619 2005 4.9% 36,132 686,514 2006 12.1% 70,906 1,347,220 2006 15.8% 39,746 755,169 2007 7.8% 72,608 1,379,560 2007 5.5% 39,831 756,796 2008-17.7% 56,741 1,078,085 2008-37.0% 23,839 452,942 2009 34.0% 72,205 1,371,890 2009 26.5% 28,640 544,151 2010 12.1% 76,915 1,461,385 2010 15.1% 31,305 594,796 2011-1.1% 72,251 1,372,767 2011 2.1% 30,367 576,979 2012 10.1% 75,564 1,435,715 2012 16.0% 33,465 635,830 2013 20.2% 86,315 1,639,989 2013 32.4% 42,089 799,687 2014 6.3% 87,149 1,655,831 2014 13.7% 45,458 863,706 2015 0.8% 83,462 1,585,781 2015 1.4% 43,781 831,844 2016 YTD 9.1% 86,536 1,644,185 2016 YTD 7.8% 44,853 852,207 Total 1,223,552 Total 621,826 Net Change 64.42% Net Change -14.78% Net Change % includes portfolio performance and the effect of annual withdrawal. Numbers shown above are hypothetical. Total return includes the impact of withdrawals. See appendix for inherent limitations in using hypothetical numbers and a description of indices in the appendix. All numbers are approximate. Past performance is not indicative of future results. A direct investment in an index is not possible. Wellesley Asset Management, Inc. 2016 18

Bond Returns During Rising-Rate Interest Quarters Past performance is not indicative of future results. Wellesley Asset Management, Inc. 2016 19

Wellesley Investment Process Stability and Experience Did You Know* The average mutual fund portfolio manager tenure is 4.79 years, and less than 7% have at least a 15-year tenure 51% of portfolio managers report no stake in the funds they manage, and only 10% have more than $1 million of their own money invested How many times have you evaluated a fund s or manager s performance without considering if the people who built the track record are still there? We eat what we cook: our Owners and Shareholders have millions of dollars and most of their liquid net worth invested in Wellesley s convertible bond strategies. Sources: Empiric Advisors; Zephyr Analytics Morningstar, Inc. as of December 31, 2010 Wellesley Asset Management, Inc. 2016 20

Notable Convertible Quotations Quote from Forbes Magazine* If you stay out of stocks, you might miss the rally. If you buy stocks, you might get creamed in another slump. But convertible(s) let you have it both ways. Making good selections from among convertible securities with so many variables is challenging, but very rewarding. Finding the right convertibles is like a game where you can win or, alternatively, get your money back with interest. Wellesley Asset Management, Inc. 2016 21 Source: * Article dated July 7, 2003

Book On Convertibles Outrunning the Bear: How You Can Outperform Stocks and Bonds With Convertibles By Greg Miller CPA, CEO & Co-CIO Wellesley Asset Management Wellesley Asset Management, Inc. 2016 22

Recent Awards and Recognition for WAM Greg Miller, CPA, CEO and Co-CIO was ranked #1 in Massachusetts in Barron s Top 1,200 Financial Advisors in America list for the 2nd consecutive year. 1 Greg Miller has ranked nationally in the Barron s Top 100 Independent Advisors list for six consecutive years. In 2016 he was ranked #9 nationwide. 2 Ranked by Financial Advisor Magazine as Top 50 Fastest-Growing Firms 3 Author of an Amazon Best-Selling, 5-Star Book on Convertible Bonds 4 Ranked a Top 300 RIA Firm by Financial Times Newspaper 5 Ranked a Top 100 RIA Firm by Financial Advisor Magazine 6 Ranked a Top 100 Women Led Business by The Commonwealth Institute (TCI) for the last four years, by TCI in partnership with The Boston Globe for the last three years 7 Sources: 1. Barron s Magazine February 23, 2015 and March 7, 2016 issues 2. Barron s Magazine August 29, 2011, August 27, 2012, August 26, 2013 August 25, 2014, August 23, 2015, and August 29, 2016 issues 3. Financial Advisor Magazine July 2016 issue 4. Outrunning The Bear How You Can Outperform Stocks and Bonds with Convertibles 5. Financial Times Newspaper June 22, 2015 edition 6. Financial Advisor Magazine July 2015 edition 7. Ranked by The Commonwealth Institute and The Boston Globe on 11/3/13, 10/24/14, 10/23/15 and by Boston Business Journal on 11/5/12 Ratings and rankings by third parties are not a guarantee of performance. Wellesley Asset Management, Inc. 2016 23

Wellesley Asset Management, Inc. 2016 24 Recent Recognition

Appendix - Wellesley Biographies Greg Miller, CPA, CEO, Co-CIO (781) 416-4000 gregmiller@wia.cc CEO and co-founder of Wellesley Asset Management, Inc., Greg draws on over thirty years of investment and financial experience. Greg is a nationally recognized provider of investment advisory services deploying convertible bonds. As Co-Chief Investment Officer, he has directed the absolute returnseeking, limited risk investing philosophy of Wellesley Asset Management for over twenty years with the primary goal of principal protection combined with investment growth. His extensive background in convertibles has earned the respect of registered investment advisors, financial planners, and other investment professionals nationwide. Greg is the author of an Amazon bestselling book, Outrunning the Bear: How You Can Outperform Stocks and Bonds with Convertibles. He has written several articles and has been written up in various prominent investment and financial publications, including Institutional Investor, Investment Advisor Magazine, the National Association of Active Investment Managers, Barron s and Bloomberg/BusinessWeek. Greg has been ranked a Top 100 Independent Financial Advisor by Barron s for six consecutive years. In Barron s August 2016 Top 100 list, he ranked #9 nationwide. In March 2016, Barron s ranked Greg #1 in Massachusetts in its list of the Top 1,200 Financial Advisors for the second year in a row. In 2007, Wellesley Asset Management, Inc. launched an open-end convertible mutual fund for which Greg serves as a Fund Co-Portfolio Manager. The fund seeks to outperform both equities and fixed income over complete market cycles. In 2014, Wellesley Asset Management, Inc. launched two additional open-end mutual funds. One is a convertible bond fund and the other an intermediate term bond fund. The intermediate bond fund seeks to outperform the Barclays U.S. Aggregate Bond Index over complete market cycles. Greg began his career with PricewaterhouseCoopers (formerly Coopers & Lybrand), an international accounting and consulting firm. Subsequently, he formed his own CPA firm, and for twenty-five years provided a broad range of financial and consulting services to established businesses, professionals, and executives. In 1991, Darlene Murphy, CPA, CFP and Greg formed Wellesley Asset Management in response to increased demand for investment advice from clients. Greg graduated from Boston University with a Bachelor of Science degree in Business Administration, and holds a Master of Business Administration in Finance with high distinction from Babson College. He lectures frequently on absolute return investing deploying convertible bonds to other investment professionals, institutional clients, pensions, registered investment advisors, and high net-worth individuals. Greg has been a guest speaker at various TD Ameritrade Institutional Conferences, the National Association of Active Investment Managers Conference, Family Office Conferences and other investment professional conferences. He has also been a guest lecturer at Babson College and Boston University. Wellesley Asset Management, Inc. 2016 25

Appendix - Wellesley Biographies Darlene Murphy, CPA, CFP, President (781) 416-4000 Ext.123 dmurphy@wia.cc Together with Greg Miller, Darlene formed Wellesley Asset Management in 1991. As a practicing CPA, Darlene had helped many clients build net worth and liquid assets, and knew how important it was to protect investors wealth. From the beginning, Wellesley s investing strategy has had an absolute return focus seeking to grow wealth and yet limit risk. Darlene is a Certified Financial Planner, a member of the Financial Planning Association and has been a volunteer with the Massachusetts Chapter of the FPA. She has worked closely with private clients, families and a wide variety of investors for over 25 years. She has worked extensively with other advisors and investment professionals, helping them successfully implement Wellesley s convertible bond strategy with their clientele. As President of Wellesley Asset Management, Darlene is responsible for the firm s overall day to day operations, strategic planning and execution. Darlene directs WAM s private client group, and is an officer of the Miller Family of Funds. In 2014, Darlene was recognized by The Commonwealth Institute (TCI) and The Boston Globe, as a leader of one of the Top 100 Women-led Businesses in Massachusetts. This is the fourth consecutive year she has received this award from TCI. Darlene has been a guest speaker at many investment related conferences and has been quoted in numerous business publications including The Wall Street Journal and Institutional Investor. Darlene received a Bachelor s Degree in Finance from Simmons College, where she received the Massachusetts Society of CPAs student achievement award. Darlene also holds a M.B.A. from Babson College where she was a recipient of the Douglass Prize for Entrepreneurship. Darlene donates time to local charitable organizations, and participates in a variety of business and professional organizations including The Commonwealth Institute, and has been an evaluator for Babson College s business plan competitions. Darlene resides with her family in Sudbury, Massachusetts. Michael D. Miller, Co-CIO (781) 416-4000 Ext.132 mmiller@wia.cc As Co-Chief Investment Officer of Wellesley Asset Management, Inc. and Co-Portfolio Manager of the firm s mutual funds, Michael is an integral part of the firm s investment team. He is responsible for convertible bond research and product development, analyzing and monitoring portfolio holdings, and communicating performance, portfolio and fund data. He also constructs and analyzes client portfolios, and works directly with some of the firm s institutional clients. Michael frequently speaks at national investment conferences educating investors about the convertible bond asset class. Michael received his Bachelor of Science degree in Business Administration from American University s Kogod School of Business in Washington, DC, where he specialized in finance, and his Master of Business Administration degree from Babson College. Michael resides with his family in Wayland, Massachusetts. Wellesley Asset Management, Inc. 2016 26

Appendix - Wellesley Biographies Jim Buckham CFA, Portfolio Manager & Vice President of Trading (781) 416-4000 Ext.141 jbuckham@wia.cc Jim Buckham comes to Wellesley with over twenty years of trading experience. Most recently, he was a convertible bond salesman at Deutsche Bank covering mutual funds and hedge funds in New York, Boston and Toronto. Prior to that, Jim spent twelve years trading convertible bonds, derivatives, and equities at Fidelity Investments. Jim holds the CFA designation and has passed the Series 7, 55, and 63 exams. Jim graduated from Boston University with a BA in economics. He also holds a Master of Business Administration degree from Bentley University. Paul Samuels, CPA, CA, Treasurer (781) 416-4000 Ext.117 psamuels@wia.cc Paul Samuels currently serves as Wellesley Asset Management s Treasurer and has over thirty five years of financial and senior management experience. Paul joined WAM in 2000 and has previously served as the firm s Chief Operating Officer and Chief Financial Officer and Chief Compliance Officer. A graduate of Sir George Williams University in Montreal (now known as Concordia University), Paul received his MBA from the University of New Hampshire and a CPA, CA designation from the Order of Chartered Accountants of Quebec. He also holds a Series 65 securities license. C. Daniel Mitchell, Chief Compliance Officer/General Counsel (781) 416-4000 Ext.146 dmitchell@wia.cc C. Daniel Mitchell is the Chief Compliance Officer and General Counsel at Wellesley Asset Management, Inc. Prior to joining Wellesley Asset Management, he served in a similar position for another investment firm in the Boston area. Dan received his juris doctor from Suffolk University Law School and his undergraduate degree from Brandeis University. Wellesley Asset Management, Inc. 2016 27

Appendix - Wellesley Biographies Paul Maregni, Executive Director (781) 416-4000 Ext.170 pmaregni@wia.cc Paul Maregni has overall leadership responsibility for the Private Client and Institutional Groups of Wellesley Asset Management, Inc. He has extensive experience in building sales and relationship management teams that excel in implementing sound investment planning strategies for both new and existing clients. He possesses more than twenty years of success in the financial services industry. Paul graduated from the University of Massachusetts and holds the Series 65 securities license. Prior to joining Wellesley Asset Management, Paul oversaw his own sales consulting practice. Wellesley Asset Management, Inc. 2016 28

Appendix - Indices Used In This Presentation The following indices have been used as benchmark data throughout this presentation. Indices do not reflect the costs of trading, management fees or other expenses. It is not possible to invest directly in an index. WAM accounts differ from an index in that they are actively managed and may include substantially fewer and different securities than those comprising an index. Exposure to an asset class represented by an index is available through investable instruments based on the index. Index Description Source 500 Total Return (TR) A free-float capitalization-weighted index. based on the common stock prices of 500 top publicly traded American companies, as determined by and considered by many to be the best representation of the market. Bloomberg data / Standard & Poors Barclays U.S. Aggregate Bond (Agg. Bond) A market capitalization-weighted index often used to represent investment grade bonds being traded in United States. The index includes Treasury securities, Government agency bonds, Mortgage-backed bonds, corporate bonds and a small amount of foreign bonds traded in U.S. Bloomberg data / Barclays Bank of America-Merrill Lynch V0A0 (V0A0) Represents all US convertibles, excluding mandatory convertibles, small issues and bankruptcies. Bank of America Bank of America-Merrill Lynch B0A0 (B0A0) The BofA Merrill Lynch US Corporate & Government Index (B0A0) tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational and corporate securities. Bank of America Bank of America-Merrill Lynch () The BofA Merrill Lynch US High Yield Master II Index () is a commonly used benchmark asa measure for the broad high yield market. Bank of America Thomson Reuters Wellesley () is the Thomson Reuters Wellesley Absolute Convertible Bond index (""). The Index is a joint venture between Thomson Reuters and Wellesley Asset Management that was created in January 2013. Index performance for the period from February 2002 to the creation date is calculated based upon a model portfolio maintained by WAM. Index performance from inception to February 2002 is backtested performance based upon historical trading for certain accounts. is intended to represent a strategy with the goals of absolute returns and outperforming both equities and fixed income over complete market cycles deploying convertible bonds. WAM has discretion over the selection of index constituents and their weighting in the index. Thomson Reuters Wellesley () Wellesley Asset Management, Inc. 2016 29

Appendix - Indices Used In This Presentation (cont.) Index Description Source Russell 2000 Index Russell 2000 Value Index Russell 2000 Growth Index Russell 1000 Index Russell 1000 Growth Index MSCI ACWI Index MSCI EAFE Index MSCI Index Includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The index measures the performance of the small-cap segment of the U.S. equity universe and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. Measures the performance of the small-cap value segment of the U.S. equity universe. Includes Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. Measures the performance of the small-cap growth segment of the U.S. equity universe. Includes Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. Measures the performance of the large-cap segment of the U.S. equity universe. Includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. Reconstituted annually to ensure new and growing equities are reflected. Measures the performance of the large-cap growth segment of the U.S. equity universe. Includes Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Consists of 46 country indices comprising 23 developed and 23 emerging market country indices. A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. Consists of 21 developed market country indices in Europe, Australasia, and the Far East. A free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Russell Russell Russell Russell Russell MSCI MSCI MSCI Wellesley Asset Management, Inc. 2016 30

Appendix - Wellesley Asset Management Hypothetical calculations: Hypothetical Growth of $1,000,000 in versus the 500. It is based on Returns (see previous footnotes), hypothetical $1,000,000 investments in both and the 500 Total Return Index, and end of year withdrawals equal to 5% of the investment balance. A direct investment in an index is not possible. No actual WAM 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. All numbers are approximate. Holdings Information Before purchasing convertible bonds, investors should carefully review the bond prospectus and consult with a financial advisor who has experience in investing in and trading convertible bonds. Individual convertible bonds should be purchased based on risk tolerance, time horizons and other factors in concert with an investment professional. A complete list of securities recommended by the firm during the past year is available upon request. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities listed. All numbers are approximate. Specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients are illustrative in nature and their performance is not necessarily representative of other securities in client accounts. Forbes grading methodology Using return numbers from Morningstar over two market cycles: Aug 31, 2000 May 31, 2015 for domestic stock and balanced funds; April 30, 2000 May 31, 2015 for global stock funds, Forbes graded funds on a curve over two up-and-down market cycles that go back to 2000. Forbes scaled the raw numbers in a way to penalize performance that came in a spurt. An A+ grade went to the top 5% of funds and an A to the next 20%. Bs, Cs, Ds and Fs went to 25%, 25%, 20% and 5%, respectively. To land a double-a grade qualifying it for honors, a fund had to come out in the top quartile in both bull and bear markets. Other A complete market cycle is defined either by a top-bottom-top or bottom-top-bottom pattern in the stock market. In the WAM analysis, the 500 was used to define the market cycle of the stock market. Drawdown is defined as the peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough. Wellesley Asset Management, Inc. 2016 31 DM100616-1-40