Valpey Financial Services, LLC (herein known as VFS) is a limited liability corporation organized under New Hampshire law and registered with the Securities & Exchange Commission. VFS maintains its primary office in Concord, NH and also maintains a satellite office in Dover, NH (no client information or required books or records are maintained at this satellite location). VFS is solely owned by Ronald L. Valpey and has been in business since July 1, 2010 as a fee-only investment adviser. Asset Management As a fee-only investment advisor, the firm is compensated solely by our clients. There are no commissions, payments or compensation contingent upon the purchase or sale of financial products or plans. We have a fiduciary duty to provide unbiased advice, disclose and mitigate conflicts of interest and to do what is in your best interest.
• We do not work on commissions, have hidden fees.
• We do not create client statements or have access to withdraw client funds.
• An independent third-party custodian holds client funds, issues statements and mails the statements directly to clients. VFS offers a combination of the following advisory services, where appropriate, to individuals, high net worth individuals, pension and profit-sharing plans and corporations or other business entities. Wrap Fee Program A wrap fee program is a comprehensive advisory account with a single fee that covers a bundle of services, such as, portfolio management, advice, and investment research as well as trade execution, custody and reporting fee. The fee is not based directly upon advisory services or the execution of transactions.
• VFS does not participate in any wrap fee program. Financial Planning VFS provides financial planning advice via a financial needs analysis. Clients who request so, will receive a customized plan designed to help achieve stated financial goals and objectives. Information for the plan is gathered through personal interviews and includes current financial status, future goals and attitudes towards risk. In general, the financial plan will address any or all of the following areas of concern:
• Personal – Financial goals
• Cash Flow – Pre-tax withdrawal analysis
• Death & Disability – Cash needs at death and disability income analysis
• Retirement – Analysis of current strategies and investment plans to help achieve retirement goals. The principal officers, employees and advisory representatives of VFS can also be licensed as insurance agents. VFS individuals in their separate capacities as insurance agents can suggest insurance products and strategies, but do not sell insurance products, receive any commissions or share in any commissions related to any insurance products that you purchase. VFS individuals can, upon your request, refer you to insurance specialists but you are not under any obligation to use these specialists. The implementation of any or all insurance recommendations or strategies is solely at the discretion of the client. Portfolio Investment Management Services The firm provides continuous portfolio management services. These services will include selecting or recommending investments to a client or making investments for a client based on the individual needs of the client. At the time of the client’s initial engagement, the investment adviser representative will assist the client in determining the client’s current financial situation, financial goals and objectives, and attitudes towards risk. This determination will allow the investment adviser representative to review the client’s situation and determine an appropriate asset allocation plan. Account supervision is guided by the stated objectives of the client (i.e., aggressive, moderately- aggressive, moderate, moderately conservative or conservative). We then develop a personal investment policy and construct and manage your portfolio based on that policy. The investment adviser representative will implement or make recommendations with respect to changes to a client’s account based on market, economic and political circumstances, and the individual characteristics of securities We will create a portfolio consisting of, but not limited to the following types of investment:
• Cash Positions – Based on perceived or anticipated market conditions or events, certain assets may be taken out of the market and held in a defensive cash position, such as high yield money markets. Cash is not included as assets subject to the agreed-upon advisory fee. The firm generally invests client's cash balances in money market funds, FDIC Insured Certificates of Deposit, high -grade commercial paper or government-backed debt instruments.
• Equity – Investments that generally refer to buying shares of stocks in return for receiving a future payment of dividends and capital gains if the value of the stock increases. The value of equity securities may fluctuate in response to specific situations for each company, industry conditions and the general economic environment.
• Exchange Traded Funds (ETFs) – An ETF is a portfolio of securities invested to track a market index like an index mutual fund, but the shares are traded on an exchange like an equity. An ETF share price fluctuates intraday depending on market conditions instead of having a net asset value (NAV) that is calculated once at the end of the day. The shares may trade at a premium or discount; and as a result, investors pay when purchasing shares and receive more or less than when selling shares. The supply of ETF shares is regulated through a mechanism known as creation and redemption that involves large, specialized investors, known as authorized participants (APs). Authorized participants are large financial institutions with a high degree of buying power, such as market makers, banks or investment companies that provide market liquidity. When there is a shortage of shares in the market, the authorized participant creates more (creation). Conversely, the authorized participant

will reduce shares in circulation (redemption) when supply falls short of demand. Multiple authorized participants help improve the liquidity of a particular ETF and stabilize the share price. To the extent that authorized participants cannot or are otherwise unwilling to engage in creation and redemption transactions, shares of an ETF tend to trade at a significant discount or premium and may face trading halts and delisting from the exchange. The performance of ETFs is subject to market risk, including the complete loss of principal. ETFs also have a trading risk based on cost inefficiency if the ETFs are actively traded and a liquidity risk if the ETFs has a significant price spread and low trading volume. In addition, investors buying or selling shares in the secondary market pay brokerage commissions, which is a cost not incurred by mutual funds. Like mutual funds, shares of an ETF represent partial ownership of an underlying portfolio of securities.
• Exchange-Traded Notes (ETNs) – An ETN is a senior unsecured debt obligation designed to track the total return of an underlying market index or other benchmark. ETNs may be linked to a variety of assets, for example, commodity futures, foreign currency and equities. ETNs are similar to ETFs in that they are listed on an exchange and can typically be bought or sold throughout the trading day.
• Fixed Income – Investments generally pay a return on a fixed schedule, though the amount of the payments can vary. This type of investment can include corporate and government debt securities, leveraged loans, high yield, and investment-grade debt and structured products. For example, mortgage and other asset-backed securities, although individual bonds may be the best-known type of fixed income security. In general, the fixed income market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is often more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. The risk of default on treasury inflation protected/inflation-linked bonds is dependent upon the U.S. Treasury defaulting (extremely unlikely); however, they carry a potential risk of losing share price value, albeit rather minimal. Risks of Investing in foreign fixed income securities also include the general risk of non-U.S. investing described below.
• Mutual Funds – A pool of funds collected from many investors to invest in securities such as stocks, bonds, money market instruments and similar assets. o Open-End Mutual Funds – A type of mutual fund that does not have restrictions on the amount of shares the fund will issue and will buy back shares when investors wish to sell. Investing in mutual funds carries the risk of capital loss, and thus you may lose money investing in mutual funds. All mutual funds have costs that lower investment returns. The funds can be of bond “fixed income” nature (lower risk) or stock “equity” nature. o Closed-End Mutual Funds – A type of mutual fund that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Clients should be aware that closed-end funds available within the program are not readily marketable. To provide investor liquidity, the funds may offer to repurchase a certain percentage of shares at net asset value periodically. Thus, clients may be unable to liquidate all or a portion of their shares in these types of funds. o Alternative Strategy Mutual Funds – Certain mutual funds available in the program invest primarily in alternative investments and strategies. Investing in alternative investments or strategies may not be suitable for all investors and involves unique risks, such as risks associated with commodities, real estate, leverage, selling securities short, the use of derivatives, potential adverse market forces, regulatory changes and possible illiquidity. There are unique risks associated with mutual funds that invest principally in real estate securities, such as sensitivity to changes in real estate values and interest rates and price volatility because of the fund's concentration in the real estate industry. We will allocate your assets among various investments taking into consideration your desired overall management style. Holdings will be selected on the basis of any or all of the following criteria:
• Performance history
• Industry sector
• Management style
• Fee structure
• Expense ratio
• Investment Objectives
• Diversification Portfolio weighting between equities and non-equities will be determined by your individual needs and circumstances. You will have the opportunity to place reasonable written restrictions on the types of investments which will be made on your behalf. You will retain individual ownership of all securities. Clients should be aware that VFS makes different recommendations and effect different trades with respect to the same securities to different advisory clients. For clients in need of brokerage or custodial services, we recommend the use of an unaffiliated FINRA/SIPC member broker/dealer, Schwab Advisor Services, a division of Charles Schwab & Co., Inc (“Schwab”) As of March 21, 2024, VFS has the following assets under management: Discretionary Non-Discretionary Total $163,225,893 $16,588,118 $179,814,011 Consulting You can also receive investment advice on a more limited basis. This can include advice regarding an isolated area of concern such as retirement planning, reviewing your existing portfolio, or any other specific topic. We also provide specific consultation and administrative services regarding your investment and financial concerns when within our area of expertise.