Protection. Growth. Income. Wellesley Investment Advisors, Inc. Convertible Bond Specialists

Transcription

1 Protection. Growth. Income. Wellesley Investment Advisors, Inc. Convertible Bond Specialists

2 Table of Contents About Wellesley Investment Advisors About Our Firm... 1 Portfolio Structure... 2 The Lessons I Learned from My Father and Grandfather By Greg Miller, CPA, CEO, Co-CIO... 3 Insight into Our Convertible Bond Strategy Absolute Return Investing with Convertibles... 7 Who Should Invest in Convertible Bonds?... 7 Do I Replace My Stocks or My Bonds with this Convertible Bond Strategy?... 8 How Do I Invest in a Convertible Bond Program that Seeks Absolute Returns?... 8 Private Client Group Frequently Asked Questions... 9 Professional Biographies Executive and Investment Management Biographies Private Client Group Biographies... 15

3 Convertible Bond Specialists About Wellesley Investment Advisors Wellesley Investment Advisors, Inc. is an SEC registered investment advisory firm serving individuals, families, trusts, retirement plans, and other investment professionals. Founded in 1991 by Greg Miller, CPA and Darlene Murphy, CPA, CFP, we are guided by the principles of limited risk investing, a methodology that involves melding two seemingly contradictory goals maximizing returns and protecting principal. Our Convertible Bond Strategy aims to protect principal and also seeks to take advantage of market increases. As a registered investment advisor, we have the ability to pursue a broad range of investment opportunities, and exert discretionary power over our client accounts with the goal of limited risk investing. Additionally, as a registered investment advisor, we have a fiduciary duty to act in your best interest at all times. All accounts stay in your name and are held with one of the independent custodians we work with. All client accounts are individually managed based on each client s unique goals, needs, and risk tolerance, and positions are reviewed on a regular basis. As a client, you can expect unbiased, independent advice on limited risk investments, quarterly reports, periodic reviews, ongoing monitoring and high-level service from professionals who know you and your objectives. We work with you and with the appropriate investments to help you accomplish your financial objectives. 1

4 Portfolio Structure Convertible bonds play a valuable role in our limited risk investing strategy, because they can offer many opportunities for growth, but simultaneously work to protect principal in volatile markets. Adhering to a client s financial needs and desires is paramount for any investment advisor. At Wellesley Investment Advisors, we build customized accounts for each one of our clients, allowing us as the advisor to customize each portfolio to accurately reflect each client s financial objectives. Each client s separately managed convertible bond account has the basic goals of absolute return coupled with investment growth. Each portfolio can be designed to be more or less growth- or income-oriented depending on client preference. Our portfolio managers structure a portfolio with approximately 30 individual convertible bonds and one or more of our mutual funds in your account. By employing a separate account strategy, we can work with the individual client regarding cash management and liquidity arrangements. Our separate accounts are never a one size fits all solution, rather a diversified portfolio to suit specific needs. Wellesley Investment Advisors absolute return-seeking convertible bond strategy uses the following steps to find bonds that may enable a portfolio to grow with equity-like returns while preserving capital: Screen the convertible bond universe to find securities with either no loss or only a small loss to the next liquidity event. Research individual companies with strong growth potential. This strategy seeks to find companies that have solid balance sheets and strong prospective earnings. Invest with a goal of achieving absolute returns, not relative returns. Investors who can preserve capital during bear markets and attain considerable growth during bull markets may be able to accomplish equity-like returns over complete market cycles with far less risk and volatility than most equity investors. 2

5 Convertible Bond Specialists The Lessons I Learned from My Father and Grandfather By: Greg Miller, CPA, CEO & Co-Chief Investment Officer I grew up in the small town of Woodbridge, right outside of New Haven, Connecticut. I decided to go to college in Boston and received my BS in Business and MBA in the Boston area. After obtaining my MBA, I joined the firm of PricewaterhouseCoopers (formerly Coopers & Lybrand). After earning my Certified Public Accounting certificate, I decided to start my own CPA firm in the early 1970s. It was a difficult time to start a CPA firm: CPAs were not allowed to do any advertising and most forms of marketing were prohibited by the profession. My experiences at PwC were invaluable. Unfortunately, I soon learned that the skills I d acquired and the clients I worked with at a Big 8 (yes there were once eight of them) accounting firm did not necessarily translate into overnight success for a young practitioner. One day, I was working with a tax return client. He asked if I would go out for a beer and discuss a new business opportunity. Desperate for any type of work, I agreed to go. My client had attended nursing school and told me of a new type of medical equipment, an ultrasound machine. He said it had been gaining popularity with doctors in California. He told me that if we could buy an ultrasound machine and provide this form of radiology service to hospitals, he felt we could make millions. My new CPA firm had been struggling, so the idea intrigued me. I honestly felt we did not have the medical experience or background to run a medical technology company, but a few beers later, he talked me into it. Three of us my CPA firm partner, the nurse client, and I decided to move ahead. We were all under 30 years old. We had to come up with some money that we didn t have. I borrowed about $12,000 on my credit cards and tried to get a bank to loan us funds to buy an ultrasound machine, at an acquisition cost of about $75,000. After about a month of turn-downs from banks, I was fairly frustrated and figured the idea was not meant to be. But one afternoon, I received a call from State Street Bank telling me my loan application had been approved. We had one of the first ultrasound machines in Massachusetts. We put the machine in a large white van and drove it from hospital to hospital trying to find doctors who wanted to use ultrasound technology on their patients. With the help of a part-time radiologist, the idea caught on, in a big way. We obtained more ultrasound machines, which we put in vans and also rented space for this new modality in hospitals. In the mid-1970s, we obtained one of the first nuclear medicine licenses in the state and shortly thereafter, one of the first CT scanners. The radiology business continued to grow and 3

6 we expanded operations throughout New England and New York City. It grew so large that we hired someone to run it. During this same period, our CPA firm grew as well. In the summer of 1985 I received a strange phone call. It was from a CEO of a Fortune 500 company asking if I would be interested in selling the medical company. I explained that the company was not for sale. The executive of this very large, publicly traded competitor proceeded to tell me how they were planning to enter our markets and how easily they could kill our business. Very politely, he encouraged me to give serious consideration to selling the business. The serious consideration on my part took less than 24 hours. The next day I called a friend of mine who worked in the merger and acquisition department of Lehman Brothers and told him we wanted to sell our medical company. In December 1986, we sold our medical company for an eight-figure sum. I was 37 years old. I had just accomplished something that many people spend their whole business lives trying to accomplish. I was very pleased to be out of the medical technology business, I knew that. While it was not a surprise of course, it was one of those points in life that prompt reflection. I decided to take a couple of weeks off and reflect on what to do with the proceeds. During my two-week sabbatical, I reflected on my own career and what I wanted to do, professionally, going forward. I remembered my childhood years very vividly and how close I was to my grandfather. He told me that in the 1920s, he had a chain of drugstores in North and South Carolina. It was a very successful business and he sold it at a very young age for about $200,000 and decided to retire. That was a good amount of money back then. My grandfather did what almost everyone in the 1920s did he put his nest egg into stocks. After all, it was one of the great bull markets and the best place to put one s retirement money. What my granddad did not anticipate was the Great Stock Market Crash of By 1932, my grandfather was completely wiped out. Although he lived to be almost 90 years old, he was never able to regain his fortune and unfortunately, died a poor man. My Father, My Grandfather and Me in

7 Convertible Bond Specialists I also recalled a conversation in the early 70s with my father. He was an entrepreneur as well, and had an industrial cleaning supply company. One day, he called me in Boston from Connecticut and said to me, Greg, I have some very good news for you. I sold my industrial cleaning supply company for $1 million! And do not worry, I am not going to make the same mistake your grandfather made. I am not going to put the money in stocks. There is a new investment vehicle called a mutual fund. This allows investors like me to have investment professionals manage their money so I won t have to make disastrous mistakes like your grandfather made. At the time, I remember thinking my father had a good plan for his money. After all, picking a few qualified professional managers and diversifying surely would protect his nest egg. One mutual fund my dad picked was Fidelity Magellan. It was probably one of his better choices. Unfortunately, my dad was shocked to see the money he put into Fidelity Magellan tumble during the recession of the early 1970s. Most people don t realize this, but Magellan plummeted in that era during the bear market of it fell by over 70%! All the funds fell, in fact. My father s portfolio went from a little over $1 million to under $250,000 from the bear market of He lived for many years after that, but unfortunately, was never able to make his money back. Like my grandfather, he died with relatively little assets. So during the winter of 1987, I had some choices to make. I decided I definitely did not want to be the third generation to be successful, accumulate some wealth, and then blow it. I knew I needed to invest it, but how? Where should I invest the money I made on the sale of my medical company? Equities were too volatile and risky in down markets. I was too young (I thought) to consider bonds. I had to stay ahead of inflation. Gold and commodities again, were volatile and risky. I did invest in some real estate, but of course that has its own risks, can be illiquid and takes time and energy. I started to read everything I could about investing, and tried a number of different strategies and products. But I fell in love with one investment idea: convertible bonds. Convertibles had been an investment choice for many since the mid-1800s but became a lot more popular in the United States after the stock market crash in the 1970s. Convertible bonds seemed to be the solution I was looking for to safely grow my portfolio for myself and my family. Convertibles offered the principal protection and the interest and/or yield of bonds during bear markets, but also much of the upside potential of stocks during bull stock markets. Perfect! I only wished I d come to this discovery sooner, and could have helped my grandfather and father. So I set up a family office and started to buy convertible bonds for myself and my family. In 1991, my partner, Darlene Murphy, convinced me that this was something we should offer to clients. We formed Wellesley Investment Advisors, Inc., registered as an investment advisory 5

8 firm in 1991, and began by offering investment advisory services to our CPA clientele. What a great decision that was! In 1991, we had a little over $10 million of assets under management, most of it from family and friends. In 2000, the investment management side of our business was still small. It was not easy to convince investors to hire us to invest their funds in a niche vehicle like convertible bonds, something that most people weren t (and still aren t) familiar with. Nevertheless, we made another good decision: we sold our accounting firm. At that point, Darlene had spent 15 years in public accounting and I had many more, and we were not sad to say good-bye to tax seasons! This enabled us to focus on what we were better at: providing convertible bond management to high net worth individuals. As our track record accumulated and our business grew, we expanded our services to working as a sub-advisor to other advisory firms, banks, and brokerage firms. In 2008, my son, Michael Miller, joined the firm to co-manage the investments along with us. He left one of the largest registered investment advisory firms in the country. In 2011, we celebrated our 20 th anniversary of being in business and were managing over $1 billion for our clients who included individuals, families, non-profits, and charitable foundations. Since 2008, our assets under management had increased ten-fold. Today, Wellesley Investment Advisors has assets under management exceeding $2.4 billion*. I like to think my grandfather and father would be pleased. *As of July 31,

9 Convertible Bond Specialists Absolute Return Investing with Convertibles Convertible bonds are ideal investments for long-term investors seeking absolute returns through bull and bear markets. Convertibles can combine the fixed income characteristics of bonds and the capital appreciation potential of equities. They can also offer a couple of unique advantages. At the bondholder s discretion, convertibles may be converted into a predetermined number of shares of the issuing corporation s common stock, which allows investors to participate in the growth of the common stock. Additionally, many convertibles have put options the bondholder s right to redeem the bond on certain dates prior to maturity for a price that is predetermined as well. This unique feature can provide principal protection for your investment. Who Should Invest in Convertible Bonds? Investors seeking an alternative to volatile asset allocation strategies. Investors wanting reduced equity exposure without giving up stock market upside. Investors fearful of rising interest rates on straight fixed income products. Investors seeking periodic income from their portfolios. Bondholders seeking less exposure to Treasury bonds, municipal bonds or straight corporate bonds, and greater potential upside. 7

10 Do I replace my stocks or my bonds with this convertible bond strategy? Wellesley Investment Advisors, Inc. recommends that you speak with an advisor and review your complete investment portfolio to decide where convertible bonds would fit best for you. Convertibles can be advantageous in a number of ways: As a lower risk equity alternative. To diversify or improve returns of fixed-income portfolios. As an alternative to asset allocation. To provide periodic income to investors portfolios. How do I invest in a Convertible Bond Program that seeks Absolute Returns? We suggest a minimum $500,000 investment. Contact us at WIA will build an account for you using approximately thirty individual bonds and one or more of our mutual funds. We will establish an account in your name with an independent custodian. Your assets are held with this custodian and Wellesley Investment Advisors has the authority to trade on your behalf. 8

11 Convertible Bond Specialists Private Client Group Frequently Asked Questions Q. How safe are my investments with Wellesley Investment Advisors? A. The individual bonds that we buy for you are held at an independent, publicly-traded custodian. Your accounts are in your name and you retain full control over your funds at all times. As part of our agreement with you, you grant us a limited power of attorney, with investment discretion, to trade securities on your behalf. This means that we make trades and investment decisions for you, pursuant to our strategy and your objectives. Our relationship with you is discretionary, which means we do not call you before we buy or sell. Our office monitors the securities in your accounts daily, and we reconcile our records to those of your custodian. You receive statements and reports both from us and from the independent custodian. Q. Who is actually managing my money? A. Greg Miller, CPA is a co-founder of our firm and is the architect of our strategy. He and his son, Michael Miller, are Co-Chief Investment Officers of the firm and direct the investments in your account. Greg and Michael, along with a team of other professionals, comprise the Investment Management Team and share responsibility for investment selection for all portfolios. They are supported by our Research and Trading Team to help them conduct research and execute trades in the most efficient manner possible. Each individual account at our firm has a team of professionals monitoring everything from cash needs, transfers, daily transactions, and performance reporting. Beyond that, one professional from our Private Client Group is assigned to your account. This person is dedicated to making sure that we understand your risk tolerance and objectives, and that you understand your holdings and your performance. We will meet with you periodically to review performance and to ensure we are doing the best possible job for you. Q. What risks should an investor consider? A. There is no such thing as investing without risk. Every investment carries some risk. Your account is subject to fluctuations due to many factors, including: market fluctuations, interest rate changes, and company specific risks. Bonds also carry default risk the risk that the issuer will be unable to pay its debts. We focus on limiting that risk, and on minimizing volatility, but you should be prepared for your portfolio to rise and fall to a certain extent, especially over short periods, and during times of broad market uncertainty. 9

12 Convertible bonds have the ability to outperform both stocks and bonds over long periods of time. We encourage all our clients to focus on appropriate time frames for evaluating their investments. We believe the best evaluation period is a complete market cycle which includes both a bull and a bear market (generally, five to seven years). Our goal is to do well over those complete market cycles. We utilize short- to medium-term maturities and embedded put options in many convertible bonds to provide a floor for your investments whenever possible, but your securities will be valued at market and will vary day to day and month to month. We discuss risk tolerance with you when you become a client and on an ongoing basis. If you believe your goals or risk tolerance have changed, please discuss this with your advisor. Q. How many bonds are in my portfolio and how diversified is it? A. Each account is different, but generally we will purchase approximately 30 convertible bonds for you. These companies will be large cap, mid cap, small cap, and diversified across many different sectors. We also place a portion of your funds in one or more of the mutual funds that we manage. We believe that including a mutual fund as part of your portfolio is an important and beneficial component of the services we provide for you, and doing so can offer you greater liquidity, flexibility, and diversification. Q. How do you purchase the bonds for my portfolio? A. When you open your account with us, you sign a form granting us permission to shop your bond purchases and sales. Your account is at your custodian, but we will very often trade bonds with major bond trading desks on Wall Street to get the best pricing and execution for you. This is part of our fiduciary responsibility to you. The trade settles back at your custodial broker seamlessly. We are able to do this because of our buying power with these trading desks. Q. Are these bonds IPOs or purchased on the secondary market? A. Most of our purchases for your account will be bonds trading on the secondary market. However, when an established company trading on a major exchange issues a new registered convertible bond that meets our absolute return-seeking strategy, we try to obtain those bonds too at favorable pricing. 10

13 Convertible Bond Specialists Q. How long does it take to get my account fully invested? A. This can vary anywhere from two to six weeks from the time we have clear funds to invest. We invest in a disciplined manner, sometimes taking a little extra time to make sure we are getting the right bonds at the right price to help you meet your investment objectives. Q. Why haven t I heard of convertible bonds before now? Are they new? A. Convertible bonds were first issued in the late 1800s, so they are not new at all. However, the convertible bond market is largely the domain of institutional investors like pension plans, and investment advisors like WIA. We are pleased to offer this strategy to private clients. Q. What do you think is going to happen next with the market? A. At Wellesley Investment Advisors, we don t pretend to have a crystal ball. We believe that no one can predict what the markets will do tomorrow or next week. Accordingly, our strategy is designed to seek upside performance while limiting risk to principal. We like to stay prepared for whatever the markets bring. Q. How much does Wellesley Investment Advisors charge to manage my money? A. WIA is a fee-only advisor. That means that our clients pay our fees which are based on a percentage of funds under management. The percentage varies based on the amount of money we are managing. The exact percentages are spelled out in our investment advisory agreement with you and are also outlined in our ADV 2A. Fees are calculated quarterly, in advance, and are withdrawn directly from your account. 11

14 Executive and Investment Management Biographies Greg Miller, CPA CEO & Co-Chief Investment Officer CEO and co-founder of Wellesley Investment Advisors, 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 Investment Advisors 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 Investment Advisor by Barron s for five consecutive years. In Barron s August 2015 Top 100 list, he ranked #1 in Massachusetts for the second consecutive year and #8 nationwide. In February 2015, Barron s ranked Greg #1 in Massachusetts in its list of the Top 1,200 Financial Advisors. In 2007, Wellesley Investment Advisors, Inc. launched an open-end convertible mutual fund for which Greg serves as Co-Portfolio Manager. The fund seeks to outperform both equities and fixed income over complete market cycles. In 2014, Wellesley Investment Advisors, 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 Investment Advisors in response to increased demand for investment advice from clients. 12 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 been a guest lecturer at Babson College and Boston University. Greg has also served as director for various private companies, charities, and associations.

15 Convertible Bond Specialists Executive and Investment Management Biographies Darlene M. Murphy, CPA, CFP President Together with Greg Miller, Darlene formed Wellesley Investment Advisors in 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, WIA 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 Investment Advisors, Darlene is responsible for the firm s overall day to day operations, strategic planning and execution. Darlene directs WIA s Private Client Group, and is an officer of the Miller Family of Funds. 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. In 2015, she 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 marked the fourth consecutive year Darlene has received this award from TCI. Darlene received a Bachelor Degree in Finance from Simmons College, where she received the Massachusetts Society of CPAs student achievement award. Darlene also holds an MBA 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. 13

16 Executive and Investment Management Biographies Michael D. Miller, Co-Chief Investment Officer As Co-Chief Investment Officer of Wellesley Investment Advisors and Co- Portfolio Manager of the Miller Family of Funds, Michael is an integral part of the firm s investment team. He is responsible for convertible research and product development, analyzing and monitoring portfolio holdings, and communicating performance, portfolio and fund data. Michael also constructs and analyzes client portfolios, and works directly with some of the firm s institutional clients. He 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 from Babson College. Paul Maregni, Executive Director Paul Maregni has overall leadership responsibility for the Private Client and Institutional Groups of Wellesley Investment Advisors, 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 Investment Advisors, Paul oversaw his own sales consulting practice. James Buckham CFA, Portfolio Manager As Portfolio Manager and member of Wellesley Investment Advisors investment team, Jim Buckham is responsible for the research and development of new convertible bond investment opportunities, monitoring existing holdings, trading, and instructing clients and prospects about convertible bond investing. Jim graduated from Boston University with a Bachelor of Arts degree in Economics and received his Master of Business Administration degree from Bentley University. He holds the CFA designation and has passed the Series 7, 55 and 63 securities license exams. His professional background encompasses over twenty years of trading experience, including convertible bond trading positions at major Wall Street firms. 14

17 Convertible Bond Specialists Private Client Group Biographies Joseph M. Buscaino, Executive Vice President, Wealth Management Joe Buscaino joined Wellesley Investment Advisors in 2002 after working with a Boston area investment firm. Joe specializes in working with individuals, families and business owners. He and his team consult with clients to strategize how WIA s absolute return-seeking convertible bond program best fits into their portfolios. Joe received his Bachelor of Science degree in Business Administration from Northeastern University with a dual major in Business Management and Marketing, and his Master of Business Administration degree from Babson College. He also holds a Graduate Certificate in Financial Planning and is a member of the Society of Certified Senior Advisors. Kyle S. McMorrow, Vice President, Wealth Management Kyle McMorrow is a Vice President of Wealth Management with Wellesley Investment Advisors Private Client Group. He is responsible for introducing prospective clients to the firm s convertible bond investment strategy and developing and maintaining new client relationships. Kyle received his Bachelor of Arts degree from the University of Maine, Orono and his MBA from Suffolk University, Sawyer School of Business. He has a Certificate in Financial Planning from Boston University and has also passed the Series 65 securities license exam. Kyle has over ten years of financial service experience. Michael D. Foley, Vice President, Wealth Management Michael Foley is a Vice President of Wealth Management for Wellesley Investment Advisors. He is committed to and responsible for introducing prospective clients to the firm s convertible bond investment strategy. Michael specializes in developing and maintaining financial relationships with high net-worth individuals, families and business owners. Michael received his Bachelor of Science degree from Framingham State University. He also has passed the Series 6, 7 and 66 securities license exams. Michael has over ten years of experience in the financial services industry which includes several years with a nationally recognized financial services firm. 15

18 Private Client Group Biographies Arik P. Schechet, CPA, CFP, Vice President, Relationship Management Arik Schechet is a Vice President of Relationship Management for the Private Client Group. He is responsible for providing exceptional service to existing clients as well as building new client relationships. Arik received his Bachelor of Science degree in Computer Science from Dickinson College, and his Master of Accounting and MBA from Northeastern University. He holds the Certified Financial Planner and Certified Public Accountant designations and has passed the Series 7, 63, and 66 securities license exams. Arik has over ten years of financial planning experience. Michael T. Cavanaugh III, Vice President, Relationship Management Michael Cavanaugh is a Vice President of Relationship Management for the Private Client Group, responsible for building and maintaining relationships with individuals, families and other investors. Mike received his Bachelor of Arts degree in Economics from Trinity College and his MBA in Finance from Vanderbilt University. Mike has over twenty years of experience in the investment industry. Prior to joining Wellesley Investment Advisors, he held both research and research sales positions at various investment banking firms, and also worked in investment management and securities finance sales roles. Gregory Ellms, Relationship Manager Gregory Ellms is a Relationship Manager with Wellesley Investment Advisors Private Client Group. He is responsible for providing exceptional service and maintaining existing client accounts as well as building new client relationships. Gregory received his Bachelor of Arts degree in Political Science from the University of Massachusetts and has over 30 years of experience in the financial industry. Prior to joining Wellesley Investment Advisors, he worked with a well-known financial firm providing investment guidance and advice to high net-worth individuals. Gregory has a Series 65 securities license. 16

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20 Left to right: Greg Miller, CPA, CEO, Co-Chief Investment Officer; Michael Miller, Co-Chief Investment Officer; Darlene Murphy, CPA, CFP, President; and Joseph Buscaino, Executive Vice President The team of professionals at Wellesley shares a collective commitment to our clients, and that is we put the interest of each and every client first. We recognize that behind every dollar in a portfolio, there is a person or family with a specific plan and purpose for that investment. We honor that plan as we work with you toward your financial goals. We hope you found this booklet beneficial to understanding our philosophy and invite you to learn more about us by visiting our website at or by calling us at for a no-obligation consultation with an investment professional. Wellesley Investment Advisors, Inc. 20 William Street, Wellesley, MA Fax: info@wia.cc Important Disclosures: No content in this booklet should be construed as specific investment advice, or replacement for investment advice from Wellesley Investment Advisors, Inc., or any other investment professional. This is not an offer to purchase securities. All investments, including convertible bonds, have a risk of loss. Past performance is not a guarantee of future results. Honors and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results. Copyright 2015 Wellesley Investment Advisors, Inc. PG111616