Executive Summary : SURIS®

1. First Principles: Mr. Evaul created a Simple Understandable Risk and Investment Strategy (SURIS®) to accomplish two things. First, he wanted a time efficient way to identify investments that reduces Risk and increases Returns. And second, he wanted an approach that was Simple and could understandable to the Clients of VPIA®.

2. Three Categories of Potential Investments: Inspired by Warren Buffett and Charlie Munger's framework, SURIS® categorizes potential investments as "Yes," "No," or "Too Hard."

3. Investment Assets Definition: SURIS® invests only in assets that have direct or an underlying revenue stream (ie earnings) and excluding non-revenue generating assets like Gold, Antiques, Art, Tulips, Crypto, and Startups Without Revenue. It is the view of VPIA® that this narrow definition reduces Risk for VPIA® Clients.

4. Publicly Traded Investments: VPIA® limits its investments to Publicly Traded Assets because such are generally Liquid, Transparent, and are subject to rather insignificant Transaction Costs.

5. US Market Equities/US Treasuries: VPIA® exclusively invests in US Publicly Traded Liquid Assets, available in US markets, such as NYSE and NASDAQ. Investments are limited to Stocks, REITS, Limited Partnerships, ETFs, Mutual Funds, and US Treasuries. While publicly traded, VPIA® does not invest in Bonds (other than US Treasuries) except through ETFs of Mutal Funds.

6. Risk and Returns, US Treasuries and the S&P 500: SURIS® bases its Risk / Return calculation beginning with the Returns available from what VPIA® considers the safest Investments available - US Treasuries. The potential Returns from US Publicly Traded Assets therefor are in general judged by VPIA® in comparison to the Returns available from US Treasuries.

7. Discounted Cash Flows: While traditional Discounted Cash Flow (DCF) analysis is complex, VPIA® believes that DCF is the best way to determine the potential of an Investment. While VPIA® believes in DCF, its complex nature leads VPIA® to use the Margin of Safety approach, (derived from the Value investment principals of Benjamin Graham), to evaluate Investments.

8. Genesis of SURIS® (PSIs), Creating a Portfolio to Increase Returns and Reduce Risk: The SURIS® approach leverages Proven Successful Investors (PSIs) to identify potential investments. By tracking PSI investments in a time efficient manner, VPIA™ narrows down its potential Investments.

9. Why Focus on Public Stocks Traded in the United States- The S&P 500: The history of the S&P 500 is one in which it generated, on average, double digit Returns for the last 70 years and with no 15-year period in which there was a loss. This S&P 500 history made the decision to invest in Equities traded in the United States an easy decision for VPIA™.

10. Price vs. Value: VPIA® believes that while Prices of Liquid Assets may fluctuate in the short term, over time Price and Value will align. The Efficient Market Theory suggests that Liquid markets with fast and accurate information flows will have Prices closely reflecting value. VPIA® believes that short term disparities between Price and Value create opportunities for Investors to achieve increased Returns and reduced Risk.

11. Portfolio Management is Not Picking Stocks: While picking Stocks (i.e., choosing specific Investments) for Clients is an absolute necessity in Managing an Investment Portfolio for a Client, the managing of an Investment Portfolio is much more for VPIA®. It requires determining Asset Allocation (including cash), understanding that Price matters, and considering individual Client goals.

12. Evolution of SURIS™: VPIA® has refined its investment approach, SURIS™, over time. This approach focuses on following PSIs, assessing Value-Price differentials, considering Macroeconomic Trends, the Quality of Management, and an increasingly more active management style. SURIS™ continues to evolve as VPIA™ strives to increase Returns and reduce Risk for its Clients.

13. Four Questions Asked by VPIA™ Clients? How VPIA® addresses common Client concerns:

a. When and How Can I Retire? - ESERꞏ3®. VPIA® offers a simplified approach to retirement planning, encouraging Clients to: Earn as much as they can, Save as much they can, Earn as long as they can, and then Retire when they can live on 3% of your liquid assets.

b. Can I make a Significant Return with No Risk? The answer when first asked in 2005 was: Yes. Absolutely. Short term US Treasuries were paying in the 6% ballpark. But that did not last. By 2008 and until 2022 short term US Treasury yields were more often consistently under 1 %. As such the answer to the question became an emphatic not even close. To address this concern for Safety and Return, VPIA™ developed its Valad Income Portfolio strategy, which combined the safety of Treasury Bills with the additional Risk and Return Dividend Paying / Distribution Investments.

c. Do the Level of Returns Really Matter that Much? Yes, returns do matter. The Magic of Compound Interest shows how even seemingly small increases in Returns result in huge gains over time.

d. Should I Wait to Place my Wealth with an Investment Advisor until the Market, Economic or World Affairs are more certain? VPIA® generally advises against trying to time the Market. VPIA® believes getting in early and staying in the market will result in better Returns and lower Risk over the long haul. Furthermore, an Investment Advisor may keep the Client in the market when the Client otherwise would be out, reduce exposure when a market downturn occurs, and might have the Client in Investments less likely to be impacted by a market downturn.

14. Current VPIA™ Portfolio Options: VPIA® offers three portfolio options for Clients:

a. Valad Equity Portfolio (VEP): Invests exclusively in U.S. Publicly Traded Equities, aiming to provide Returns exceeding the S&P 500 with reduced Risk.

b. Valad Income Portfolio (VIP): Designed to combine U.S. Treasuries and Dividend-Paying Equities to aiming to provide Risk that is understandable and Returns that can exceed the Bond Market index. (BND).

c. Valad Cash Management Portfolio (VCMP): VPIA® believes VCMP Cash offers a cash management approach that aims to increase return and reduce Risk in an efficient manner.

In summary, VPIA®'s SURIS® is designed to provide Clients with a Simple Understandable Risk and Investment Strategy that reduces Risk and increases Returns. By leveraging the disclosures, trades, and portfolios of PSIs, recognizing macroeconomic potential impacts, focusing on the quality of management, and investing only in US Publicly Traded Liquid Assets, -SURIS™ aims to create a simple and understandable approach to investing.  

Investment Advisory Services offered through Crescent Advisor Group, Inc., a Registered Investment Advisor