1) Source – Bloomberg, Morningstar; performance data and statistics from January 1997 to June 2012. Using MSCI World Index as a proxy for global equities, UBS Global Focus Convertible Index as a proxy for global convertibles, cumulative return: 50.8% and 101.1%, respectively; annualized return is 2.7% and 4.6%, respectively; annualized volatility: 18.3% and 9.7%, respectively.

2) Source – Bloomberg, Morningstar; using MSCI World Index and UBS Global Focus Convertible Index as a proxy for global equities and convertibles, respectively. After the tech bubble, equities were down approximately 44%, while convertible bonds were only down 16%; during the financial crisis, equities were down around 42%, with convertibles down only 26%.