Item 5. Fees and Compensation
AQC offers its services on a fee basis, which include monthly fixed fees, as well as fees based on a
percentage of the assets under the firm’s advisement.
Consulting and Advisory Fees
AQC provides summaries of academic articles to an advisory firm for a fixed monthly fee, which generally
ranges from $2,000 to $5,000 per month, based upon the scope of a particular engagement.
When engaged to provide ongoing asset allocation recommendations, the firm does so for an annual fee
– generally between one and five basis points (i.e., 0.01% to 0.05%) – as determined by the amount of
assets under advisement. The annual fee is prorated and charged monthly, in arrears, based upon the
average daily market value of the assets on which the firm advises.
AQC, in its sole discretion, may negotiate to charge a lesser annual or fixed fee based upon certain
criteria (i.e., anticipated future additional assets, dollar amount of assets to be managed, related
accounts, account composition, pre-existing client, account retention, pro bono activities, etc.).
AQC provides all clients with an invoice for payment in advance of the respective due date. AQC does
not debit fees from its clients’ accounts.
Fees Charged by Financial Institutions
Clients may incur all charges imposed by the Financial Institutions (as defined below) and other third
parties such as brokerage commissions, transaction fees, custodial fees, charges imposed directly by a
mutual fund or ETF in the account, which are disclosed in the fund’s prospectus (e.g., fund management
fees and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Financial institutions include, but are not limited to, any other broker-dealer, trust companies, banks, etc.
used by the client to custody the assets that AQC is engaged to advise upon.
Fees for Management During Partial Months of Service
For the initial period of advisory services, the fees are calculated on a pro rata basis.
The Agreement between AQC and its clients continues in effect for the period specified in the Agreement
or until otherwise terminated by either party pursuant to the terms of the Agreement.
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Advanced Quantitative Consulting, LLC Disclosure Brochure
Fees based upon assets under advisement are calculated pursuant to average daily market value. As
such, these fees are necessarily adjusted to reflect fluctuations in the value of its clients’ investment
portfolios during a billing period.