Item 5: Fees and Compensation
All Arque Advisors’ fees are subject to negotiation.
Arque Advisors is a fee only investment advisor and earns no commissions from client securities transactions
nor does the firm receive any performance based fees from clients.
The firm sets the fees to be charged to a client in a client’s advisory agreement. Arque Advisors ordinarily
bills its fees in arrears, on a monthly (at Interactive Brokers) or quarterly (at Charles Schwab) basis.
Unless agreed in writing, Arque Advisors’ fees are exclusive of brokerage commissions, transaction fees, and
other related costs and expenses incurred by a client. Clients may incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees charged by managers,
custodial fees, 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.
Mutual funds and exchange traded funds also charge internal management fees, which are disclosed in a
fund’s prospectus.
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Annual Asset-Based Fee Schedule:
Account (s) Value Annual Percentage
Less than $100,000 1.75%
$100,001 to 250,000 1.50%
$250,001 to 500,000 1.35%
$500,001 to 1,000,000 1.25%
$1,000,001– $3,000,000 1.00%
$3,000,001 and up Negotiable
This schedule is a guideline only; all fees are subject to negotiation.
Although there is potential for conflicts of interest between accounts paying higher fees and those paying lowerfees,
Arque Advisors, as a fiduciary, makes every effort to base decisions on the goals and objectives of the client and
does not consider management fees when making investment decisions.
Annual Asset-Based Fees (Third-Party Adviser):
Outside investment managers, recommended or selected by Arque Advisors, charge their own advisory fees
for managing client assets/accounts. These fees will generally be based on a percentage of the clients’ assets
under management with the third-party manager. Additional details related to fees charged by outside
investment advisers will be explained in any such managers’ private placement memorandum or disclosure
document and always discussed with a client.
Arque Advisors pays any management fee charged by outside managers from the overall advisory fees it
charges clients. In some cases, Arque Advisors management fees may be insufficient to fully pay the fees
charged by the third-party manager, and in such instance the Client will incur this cost difference.
Other Fee Considerations:
Billing by Custodian. Contemporaneously with the execution of a Client Account Agreement (CAA), the client
may be asked to sign an authorization that will allow the custodian of any of his/her assets to debit such
account(s) the amount of management fees owed to Arque Advisors and remit such to Arque Advisors.
The authorization shall remain valid until a written revocation of the authorization is received by Arque
Advisors. In connection with this fee deduction process, the custodian shall send to the client a statement,
at least quarterly, indicating:
• All amounts disbursed from the account, and.
• The amount of advisory fees paid directly to Arque Advisors.
The client acknowledges he/she will be solely responsible for management fees and any other consulting
fees due to Arque Advisors for services rendered by Arque.
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Item 6: Types of Clients
Arque Advisors provides portfolio management services to individuals, institutions, family offices and
private investment funds.
The minimum account size for Arque Advisors is $250,000. Arque Advisors may wave this minimum at its
sole discretion. Accounts with less than $250,000 may be subject to closure.
From time to time, Arque Advisors may provide consulting services to certain types of pooled investment
vehicles such as hedge funds, private equity funds, venture capital funds, or other special purpose funds.
Arque Advisors or its affiliate Milton Associates may earn fees from the consulting services provided.
Item 7: Analysis Methods, Portfolio Construction, Risk Mitigation and Holding Period
Charting and Technical Analysis and Models
Arque Advisors uses technical analysis and models in making decisions about investing. Charting and
technical analysis relies on the analysis of recent security price behavior as well as the volume of stock buys
and sells.
Arque Advisors may also look at the patterns and the relationship between various securities over some
period. While these patterns may be useful in determining probable future price behavior, they may also be
significantly altered by other changes in the fundamental aspects of a security, such as changes in earnings,
changes in market structure and overall macroeconomic changes.
Losses from technical analysis may occur for a variety of reasons, some (but not all) of which may include:
• Fundamental changes may alter technical expectations and result in declines in security prices.
• The interpretation of technical and charting patterns may be made incorrectly and result in declines
in security prices.
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