Brophy Wealth Management, LLC (hereinafter referred to as “BWM” or the “Firm”) is an independent
financial planning and investment management firm, serving individuals, pension and profit-sharing
plans, trusts, estates, charitable organizations, corporations and business entities in the State of New
Hampshire and across the nation. The Firm provides wealth advisory services based on
comprehensive or issue-specific financial analysis and the development of wealth plans. BWM
partners with clients to create, monitor, and adjust a financial plan and investment strategy designed to
achieve retirement and other financial life goals.
BWM’s investment advisory practice has been in operation since January 1995. The Firm is owned by
Stephen A. Brophy and James S. Brophy. Stephen A. Brophy is the founder and majority owner.
As of December 31, 2023, the Firm had approximately $407,347,805 in assets under management, all
of which were discretionary. Prior to engaging BWM to provide any of the following investment
advisory services, the client is required to enter into one or more written agreements with BWM setting
forth the terms and conditions under which BWM renders its services (each an “Agreement”).
Investment Management Services
Clients can engage BWM to manage all or a portion of their assets as designated in their Agreement
with BWM or an Independent Manager. BWM generally manages assets on a discretionary basis.
BWM primarily designs and implements investment planning strategies and recommends that the client
invest their assets using one or more Independent Managers.
The terms and conditions under which the client engages an Independent Manager are set forth in a
separate written agreement between BWM and/or the client and the Independent Manager. BWM also
monitors and reviews the account performance and the client’s investment objectives. BWM receives
an advisory fee that is based upon a percentage of the market value of the assets that is managed by
the Independent Manager.
When recommending an Independent Manager for a client, BWM reviews information about the
Independent Manager such as its disclosure brochure and/or material supplied by the Independent
Manager for a description of the Independent Manager’s investment strategies, past performance and
risk results to the extent available. Factors that BWM considers in recommending an Independent
Manager include the client’s investment objectives, management style, performance, reputation,
financial strength, reporting, pricing, and research.
While not typical, clients can incur fees and expenses associated with the Independent Manager’s
trading activity. BWM would discuss whether clients would incur any trading charges with the
client prior to recommending the Independent Manager. In addition to this brochure, the client also
receives the written disclosure brochure of each Independent Manager. Certain Independent
Managers may impose more restrictive account requirements and varying billing practices than BWM.
BWM retains the authority to hire or fire the other Independent Managers or recommend that the client
terminate its relationship with the Independent Manager.
BWM also provides advice about any type of investment held in a client's portfolios not directly
supervised or managed by BWM. In these events, BWM does not monitor or supervise these other
assets and clients are encouraged to review these holdings with BWM.
In other very limited circumstances, BWM directly manages the client’s assets on an ongoing basis.
BWM may also advise on certain investment products that are not maintained at Schwab, such as
variable life insurance and annuity contracts, and assets held in employer sponsored retirement plans
and qualified tuition plans (i.e., 529 plans). In these situations, BWM directs or recommends the
allocation of client assets among the various investment options available. These assets are generally
maintained at the underwriting insurance company or the custodian designated by the product’s
provider.
BWM tailors its advisory services to accommodate the needs of its individual clients and continuously
seeks to ensure that its clients’ portfolios are managed in a manner consistent with their specific
investment profiles. BWM consults with clients on an initial and ongoing basis to determine their
specific
risk tolerance, time horizon, liquidity constraints and other factors relevant to the management of their
portfolios. Clients are advised to promptly notify BWM if there are changes in their financial situation or
if they wish to place any limitations on the management of their portfolios. Clients may impose
reasonable restrictions or mandates on the management of their accounts if BWM determines, in its
sole discretion, the conditions would not materially impact the performance of a management strategy
or prove overly burdensome to the firm’s management efforts.
Financial Consulting Services, Financial Analyses & Wealth Plans
BWM may provide its clients with a broad range of comprehensive financial consulting services. These
services may include advice on investments, insurance, retirement, education, tax, estate planning, and
cash flow needs of the client. These services may be included as part of BWM’s Investment
Management Services described above.
The Firm may also offer to provide quantitative and qualitative analysis to help generate financial
analysis and wealth plans. The Firm’s financial analysis and wealth plans are designed by BWM to
make recommendations to help clients make financial decisions consistent with achieving their long-
term goals and also to recommend investment vehicles to help them reach their goals.
In providing the financial consulting services and financial analysis and wealth plans, a representative
will consult with the client to obtain information regarding the client’s assets, liabilities, present and
foreseeable future obligations, present and future income, financial goals, and other related data. For
certain engagements, BWM may also develop and deliver a comprehensive written financial analysis
and wealth plan to the client and meet with the client for a review of the document. After this review,
BWM’s obligations to the client shall terminate and any necessary updates to the financial analysis and
plan or execution of the recommendations made in the plan must be specifically requested by the
client.
In performing these services, BWM is not required to verify any information received from the client or
from the client’s other professionals (e.g., attorneys, accountants, etc.) and is expressly authorized to
rely on such information. BWM may recommend the services of itself and/or other professionals to
implement its recommendations. BWM’s representatives may also recommend that a client purchase
an insurance or security in their capacity as registered representatives of APW Capital, Inc., a registered
broker-dealer and FINRA member. This relationship and the conflict of interest it creates are described
further in Item 5 under the heading “Commissions or Sales Charges for Recommendations of Securities
and Insurance Products”.
Clients are advised that a conflict of interest exists if BWM recommends its own services to financial
consulting services clients. Clients are under no obligation to act upon any of the recommendations
made by BWM under a financial planning or consulting engagement or to engage the services of any
such recommended professional, including BWM itself. Clients retain absolute discretion over all
decisions regarding implementation. Clients are advised that it remains their responsibility to promptly
notify the Firm if there is ever any change in their financial situation or investment objectives for the
purpose of reviewing, evaluating, or revising BWM’s previous recommendations and/or services.
Use of eMoney or FinanceLogix
BWM may provide its clients with access to an online platform hosted by “eMoney Advisor” or
FinanceLogix (the “platforms”). These platforms allow a client to view their complete asset allocation,
including those assets that BWM does not manage (the “Excluded Assets”). BWM does not provide
investment management, monitoring, or implementation services for the Excluded Assets. Unless
otherwise specifically agreed to, in writing, BWM’s service relative to the Excluded Assets is limited to
reporting only. Therefore, BWM shall not be responsible for the investment performance of the
Excluded Assets. Rather, the client and/or their advisor(s) that maintain management authority for the
Excluded Assets, and not BWM, shall be exclusively responsible for such investment performance.