Convertible bonds offer a way to enhance a traditional fixed income strategy or the potential to reduce exposure to volatile equity markets. Such a strategy can be used by investors of all risk profiles and is an ideal supplement for a core principal protected equity strategy for retirement income.

1. Plan Well. Invest Smart. Live Better 12 Amidon Avenue, Amesbury, MA 01913 | (978) 388-0020
Protecting Your Portfolio and
Increasing Income Through Steve Stanganelli, MSF, CFP®, CRPC®
Principal
Convertible Bonds Steve@ClearViewWealthAdvisors.com
Using Convertibles to Preserve
and Grow Wealth
Clear View Wealth Advisors, LLC www.ClearViewWealthAdvisors.com

2. Principal of the Firm
Steve Stanganelli, MSF, CFP®, CRPC®
– Over 20 years experience
advising individuals
© Clear View Wealth Advisors, LLC. 2010 2

3. Clear View Wealth Advisors: The Firm
Who is Clear View Wealth Advisors, LLC?
•Clear View Wealth Advisors, LLC is a Massachusetts-registered
investment advisory firm serving individuals, couples and business
enterprises with comprehensive planning and investment services.
•Established in 2010
•Number of Professionals: 1 (over 20 years experience)
•Located: Amesbury and Wilmington, Massachusetts
•Primary Goal: To protect client wealth through proactive and
ongoing planning combined with risk-controlled investing.
•Investment Strategy: Clients win by not losing. A multi-bucket
approach is used combining strategic and tactical asset allocation.
The long-term bucket is focused on an absolute return strategy
that includes the use of convertible bonds.
© Clear View Wealth Advisors, LLC. 2010 3

4. Sub-Adviser Managing the Limited Risk Investment Program
Wellesley Investment Advisors, Inc.
•Wellesley is an SEC-registered investment advisory firm serving
institutions, RIA’s, and other investment advisors.
•Established in 1991
•Number of Professionals: 17
•Assets Under Management: Over $475 million
•Located: Wellesley, Massachusetts
•Primary Goal: To preserve capital and generate positive returns in
all market environments.
•Investment Strategy: Absolute return strategy deploying the use of
convertible bonds.
© Clear View Wealth Advisors, LLC. 2010 4

5. Clear View Wealth Advisors, LLC
Convertibles as an Asset Class
© Clear View Wealth Advisors, LLC. 2010 5

6. Beating Equities Over a Longer Period
Cumulative Total Returns 12/73 – 6/10
Source: BofA Merrill Lynch Convertible Research 6/30/10
An asset class that has been utilized for over 150 years
© Clear View Wealth Advisors, LLC. 2010 6

7. Convertibles as an Asset Class
Convertibles have the characteristics of three asset classes:
1. Bonds
2. Equities
3. Options
© Clear View Wealth Advisors, LLC. 2010 7

8. 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.
© Clear View Wealth Advisors, LLC. 2010 8

9. Convertibles as an Asset Class
Convertible Bond Advantages:
a) Yield advantage over equities
b) Capital appreciation potential
c) Low correlations with stocks and bonds which enhances
diversification
d) History of strong risk-adjusted returns
e) Track record of 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
© Clear View Wealth Advisors, LLC. 2010 9

10. Convertible Correlation With Other Markets
Barclay's
S&P 500 TR Agg Bond BofA ML
Wellesley Index Index V0A0 Index
Wellesley 1
S&P 500 TR Index 0.52 1
Barclay's Agg
Bond Index 0.04 0.01 1
BofA ML V0A0
Index 0.78 0.67 0.01 1
Source: Morningstar, Inc.
10

11. 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 with greater potential upside
b) Investors wanting reduced equity exposure without giving up stock
market upside
c) Investors looking for a non-correlated asset class for more
diversification
d) Investors fearful of rising interest rates on ‘straight’ fixed income
products
11

12. Historical Bear Markets: DJIA
Year Number of Bear Markets Percent Decline
1900s 3 46%, 49%, 27%
1910s 3 24%, 40%, 47%
1920s 1 89%
1930s 3 23%, 49%, 41%
1940s 1 24%
1950s 1 19%, S&P 500 fell 22%
1960s 3 27%, 26%, 36%
1970s 2 45%, 27%
1980s 2 24%, 36%
1990s 1 21%
2000s 2 38%, 53%
All numbers are approximate.
All percent declines are declines in the Dow Jones Industrial Average. 12

13. The Wellesley Approach to Convertibles
Returns needed to breakeven after loss:
© Clear View Wealth Advisors, LLC. 2010 13

14. Wellesley’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
© Clear View Wealth Advisors, LLC. 2010 14

15. Home Run Example: Home Depot
Historical Example: Home Depot
What Happens When the Stock Appreciates
Convertible Stock
Bond Stock
300% 303.64%
November 25, 1996 $995.00 $51.88
Purchased Home Depot Per bond before split Convertible
3.25% convertible bond 250%
$17.29 Bond
Due 10/1/01 –
Convertible to 43.402
after 3:2 and 200% 211.96%
2:1 splits
shares HD
150%
October 1, 1999 $3,011.95 $69.79
Sold Home Depot Per bond Including 100%
convertible bond dividends of
Callable 10/2/99 $0.23
50%
GAIN (LOSS) 202.71% 303.64%
0%
Interest Income 9.25%
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.
15

16. Strike Out Example: AOL Time Warner
Historical Example: AOL Time Warner
What Happens When the Stock Depreciates
Convertible 20.00% Convertible
Bond Stock
Bond
November 30, 2000 $501.25 $40.61 10.00% Stock
Purchased AOL 0% Per share
9.47%
Per bond 0.00%
convertible bond
- 47.16%
Due 12/6/2019 –
Convertible to 5.834 -10.00%
shares of AOL
(Put on 12/6/2004 at -20.00%
$639.76 per bond)
-30.00%
March 28, 2002 $548.75 $23.65
Sold AOL 0% Per share
convertible bond
Per bond -40.00%
-50.00%
GAIN (LOSS) 9.47% - 47.16%
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.
16

17. Wellesley’s Three Laws
Wellesley Investment Advisors
Three Laws of Convertible Investing for
Absolute Return / Limited Risk Investing
1. Invest in long convertibles.
Goal is to maximize returns & protect principal over periods of 7 years.
2. Buy converts that have no (or minimal) loss to the next ‘liquidity event.’
A liquidity event is the next call, put or maturity.
3. Buy converts with short-term liquidity events.
A short-term liquidity event is a put or maturity of 7 years or less.
17

18. Performance Record
Year WIA S&P 500 MLV0A0
1995 20.05% 37.58% 24.75%
1996 10.15% 22.96% 14.30%
1997 22.92% 33.36% 18.98%
1998 16.56% 28.58% 8.21%
1999 19.60% 21.04% 44.32%
2000 17.32% -9.10% -11.70%
2001 11.74% -11.93% -3.95%
2002 3.08% -22.06% -4.95%
2003 15.28% 28.68% 25.80%
2004 6.58% 10.88% 8.49%
2005 3.60% 4.91% -0.34%
2006 9.57% 15.80% 12.75%
2007 7.33% 5.49% 4.12%
2008 -11.09% -37.00% -33.02%
2009 36. 58% 26.46% 47.19%
2010 0.12% -6.65% -0.34%
Annualized 11.72% 7.29% 8.11%
Annualized returns are from January 1995 to June 30, 2010. Please see performance notes in appendix.
The BoA / ML V0A0 represents the US Convertible Market excluding mandatory convertibles.
All numbers are approximate. 18

19. Performance Record
Wellesley S&P 500 BOA/ML
Convertibles Total Return V0A0
15 Years 11.32% 6.24% 7.34%
10 Years 7.83% -1.59% 2.30%
Returns through June 2010
Sources: BoA / V0A0 is the US Convertible Index. The S&P 500 Index is designed to be a leading indicator of US Equities.
Please see performance notes in appendix All numbers are approximate.

20. Convertibles as an Asset Class
Complete Market Cycle Performance (Annualized):
© Clear View Wealth Advisors, LLC. 2010 20

21. WIA Investment Strategy
What Makes Wellesley Different From Other
Convertible Managers
1. Wellesley only invests in convertible bonds
2. Wellesley only invests in bonds with short-term maturities or puts
3. Wellesley focuses on absolute returns
4. Wellesley can be a core principal protected equity strategy
5. Wellesley can be an enhanced fixed income replacement strategy
6. Wellesley’s convertible bond strategy has never had a default
• Weighted Average Credit Quality: BBB / BBB-
21

22. WIA Investment Strategy
Advantages of Wellesley VS the Big Convertible
Managers
More Alpha
• Ability to acquire smaller convertible bond issues (even from large
companies)
• Better ability to equitize cash
• Manager can react faster to important investment decisions
© Wellesley Investment Advisors, Inc. 2010 22

23. Investing with Convertibles
Convertibles can be structured as a
Core Principal Protected Equity Strategy
Or an
Enhanced Fixed Income Strategy
© Clear View Wealth Advisors, LLC. 2010 23

24. Growth of $1,000,000 : January 1995 – March 2010
Performance Record
Growth of $1,000,000 : January 1995 – June 2010
7,000,000
6,000,000
WIA:$5,572,662
Total WIA
5,000,000 Advantage
over
4,000,000
S&P 500 TR:
3,000,000 87.04%
2,000,000
ML V0A0: $3,350,630
1,000,000 S&P 500: $2,979,356
0
Sources: BoA / ML V0A0 is the Bank of America / Merrill Lynch V0A0 US Convertible Index.
Please see performance notes in appendix.
All numbers are approximate.
24

25. What Lost Decade?
What Would Happen to $1 Million Placed in WIA
Convertibles VS the S&P 500?
Wellesley Investment Advisors S&P 500 Total Return
Annual 5% Annual 5%
Year % Inc (Dec) Balance Withdrawal Year % Inc (Dec) Balance Withdrawal
1999 1,000,000 1999 1,000,000
2000 17.32 1,173,235 58,662 2000 -9.10 909,000 45,450
2001 11.74 1,245,423 62,271 2001 -11.93 760,528 38,026
2002 3.08 1,219,538 60,977 2002 -22.06 563,118 28,156
2003 15.28 1,335,634 66,782 2003 28.68 688,389 34,419
2004 6.58 1,352,372 67,619 2004 10.88 725,122 36,256
2005 3.60 1,331,048 66,552 2005 4.91 722,689 36,134
2006 9.57 1,385,530 69,277 2006 15.80 795,030 39,752
2007 7.33 1,412,692 70,635 2007 5.49 796,743 39,837
2008 -11.09 1,193,158 59,658 2008 -37.00 476,851 23,843
2009 36.58 1,548,089 77,404 2009 26.46 572,874 28,644
Total Return: 145.63% Total Return: - 9.10%
© Wellesley Investment Advisors, Inc. 2010 25

26. Convertibles as a Fixed Income Replacement
Wellesley VS Pimco
Growth of $1,000,000 : January 1995 – June 2010
WIA $5,572,662
Total WIA
Advantage:
90.89%
PTTAX
$2,919,320
Sources: PIMCO Total Return Fund A – Ticker Symbol: PTTAX
Please see performance notes in appendix.
© Wellesley Investment Advisors, Inc. 2010
All numbers are approximate. 26

27. Fed Tightening Cycles
How Do Convertibles Perform When The
Fed Tightens?
© Clear View Wealth Advisors, LLC. 2010 27

28. Fed Tightening Cycles
Merrill Lynch
Fed Policy Rate S&P 500 V0A0 Index
Duration Interest Rate
Start Date End Date (months) Start Value End Value Increase Change (%) Change (%)
03/29/88 02/24/89 11 6.50 9.75 3.25% 10.38% 11.20%
02/04/94 02/01/95 12 3.00 6.00 3.00% 0.13% -8.46%
06/30/99 05/16/00 11 4.75 6.50 1.75% 6.80% 26.47%
06/30/04 06/29/06 24 1.00 5.25 4.25% 11.58% 8.67%
Source: Fed data provided by Deutsche Bank. V0A0 data provided by Merrill Lynch/Bank of America. All numbers are approximate.
28

29. 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.”
© Clear View Wealth Advisors, LLC. 2010 29

30. About Steve Stanganelli, CFP®, CRPC®
Chief Personal Portfolio Strategist & Money Coach
Steve Stanganelli, MSF, CFP®, CRPC® (978) 388-0020 or (617) 398-7494
Steve@ClearViewWealthAdvisors.com
Steve Stanganelli is a five-star rated, board-certified financial planning professional who has over 20 years of experience coaching individuals
and businesses on ways to improve and protect their personal or business bottom line.
Steve has worked with numerous individuals and businesses as a mortgage banker, business owner, business finance consultant and now as a
CERTIFIED FINANCIAL PLANNER ™ Professional.
His practice encompasses retirement income planning, investment management, divorce settlement analysis and college funding strategies. He
is a published author and regularly presents on these topics to businesses, civic groups and community organizations.
Steve works with a variety of individuals and families with a special focus on Baby Boomer pre-retirees, business owners, corporate executives
and medical professionals.
Steve earned his Master of Science degree in Finance (MSF) from Bentley College with high distinction. He is also an honors graduate of the
University of Massachusetts – Lowell.
Steve holds the designations of CERTIFIED FINANCIAL PLANNER ™ and CHARTERED RETIREMENT PLANNING COUNSELOR ™ awarded after
completion of extensive, in-depth studying and exam requirements.
Steve is an executive officer of the Greater Merrimack Valley Estate Planning Council. Steve, formerly of Methuen, is a resident of Amesbury
where he lives with his wife, Kristin, a Registered Dietitian, and their infant son, Spencer. He is an avid competitive cyclist.

31. About Clear View Wealth Advisors & The Tool Kit for Money
Clear View Wealth Advisors, LLC is a fee-only state-registered investment adviser.
The firm provides personalized financial planning advice on a broad range of topics with an
emphasis on retirement income planning, self-directed IRA strategies, college funding and
financial aid strategies, and divorce planning and settlement analysis.
Money management tools are available including customized investment programs for
individuals.
We offer a tool kit for money and help people make smarter money moves for life.
Clear View: Who We Serve
We work with individuals or couples in need of trusted guidance while going through transitions
like a job change, retirement, divorce or other life-changing event.
We strive to make our services accessible to busy professionals and their growing families to
assist with retirement planning, elder care or college funding issues.

32. Wellesley Investment Advisors - Footnotes
Footnotes for WIA Convertible Bond Returns
1. 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 for
convertible bonds. During the periods reflected, WIA did not manage any other accounts that included convertible bonds in
their portfolios.
2. Returns include a 0.00% annual management fee. WIA's standard fee schedule is included in its Form ADV Part II.
3. Past performance is not indicative of future results.
4. No representation is made that the investor will obtain similar results to those shown above. The performance presented
may not be representative of investments held in any one client account or performance realized in any one client account. An
investor's actual performance may differ from the performance presented above due to timing of investment, contributions and
withdrawals. Performance does not reflect the effects of taxation, which result in lower returns to taxable investors.
5. This report is meant for broad discussion purposes only, and is not intended as a recommendation to buy or sell any security.
6. An investment in convertible bonds involves a risk of loss. The value of an investment in convertible bonds may decrease as
well as increase.
7. WIA's convertible returns have been calculated using the methodology set forth below. Such methodology includes several
assumptions that result from systems limitations on aggregating the convertible bond portion of multiple client accounts.
Although information has been obtained from and is based on sources WIA believes to be reliable, WIA does not guarantee the
accuracy of the information, and it may be incomplete or condensed. Returns do not reflect reinvestment of interest and
dividend income.

33. Wellesley Investment Advisors
8. Methodology for WIA Convertible Bond Returns:
(a) Listed the market value of all convertible bonds held on the last day of each month.
(b) Determined the weight of each bond holding in the portfolio (individual bond value / total bond value).
(c) Determined each bond's return for the month (monthly interest earned plus / minus monthly price change).
(d) Assumed that a bond entered the portfolio on the first day of the month in which it was first purchased.
(e) When a bond is completely sold out of the portfolio, its prior month end value is adjusted to reflect the final sales price.
(f) Weighted each bond's return for the month by the bond's weight in the portfolio.
(g) Summed each bond's weighted return for the month to get the portfolio's return for the month.
(h) Compounded monthly returns to calculate annual return.
Other Footnotes
- A complete market cycle is defined either by a top-bottom-top or bottom-top-bottom pattern in the stock market. In the WIA
analysis, the S&P 500 was used to define the market cycle of the stock market.
- Bond & Average Credit Quality reflects the higher of the ratings of Standard & Poor’s Corporation, Moody’s Investors
Service, Inc., and Fitch. If a bond is not rated by any of these organizations, Wellesley Investment Advisors uses their
proprietary credit rating system to demonstrate the credit quality of convertible bonds. Ratings are relative, subjective and not
absolute standards of quality.
- Alpha statistics provided by Morningstar, Inc. as of June 30, 2010.

34. Appendix: Convertibles as an Asset Class
1 Year 3 Years 5 Years 10 Years
All US Convertibles (VXA0)* 22.64% -6.79% 17.70% 22.84%
VXA0 Underlying Equities* 28.38% -30.78% -6.73% -27.19%
S&P 500 14.43% -26.62% -3.90% -14.77%
Russell 2000 21.50% -23.65% 1.93% 34.99%
Through 6/30/10 *Source: BofA Merrill Lynch Convertible Research 6/30/10
© Wellesley Investment Advisors, Inc. 2010
Please see Wellesley performance notes in appendix.

35. Appendix: A Fairly Balanced Universe of CB Issuers
Source: BofA Merrill Lynch Convertible Research 6/30/10
© Wellesley Investment Advisors, Inc. 2010

36. Appendix: Convertibles as an Asset Class
Convertibles From an Issuer Viewpoint:
 Less dilutive than common stock offering, issuer monetizes volatility
 Less costly than pure debt offering, and potential conversion to
common by holders if equity performs  no principal repayment
 Expand investor base – flexibility, less restrictive covenants
 Recent innovations provide tax and EPS advantages
 Exchangeable structure allows for monetizing a stake in another
company
• Defers capital gains until maturity
 Part of the classic financing chain
Source: Barclays Capital
© Wellesley Investment Advisors, Inc. 2010

37. Appendix: Convertibles as an Asset Class
Why convertibles cannot be replaced with Equities, Bonds
and Options:
a) Unlike Bonds and options, many convertible bond holders can
obtain a certain amount of underlying shares in exchange for the
convertible bond structure at any time.
b) Unlike options, most convertible bonds have dividend and takeover
protection.
c) Convertibles offer optionality for companies where there is no liquid
option market.
d) Convertible bond market tendency is to offer investors the
opportunity to buy volatility exposure at a relatively cheap price
e) Convertible bonds offer issues “suboptimal” call features
Source: 2007 UBS Global Asset Management (Americas) Inc.
© Wellesley Investment Advisors, Inc. 2010