We’ve received an incredible amount of interest for Round’s 'Enhanced Cash' account, and our team is excited to share the details with you below.
What is an Enhanced Cash account?
Round's Enhanced Cash account aims to provide a higher yield than high-yield savings accounts while taking on less risk than a traditional fixed-income fund.
What are the yields of the funds I'm investing in?
The weighted average SEC 30 Day Yield of the funds in the Round Cash Strategy is 1.82%
This figure is not net of Round's program fee. See the disclosure in the footer for full details.
What does this account invest in?
Highly liquid, short-duration fixed-income funds.
What You Need To Know
How do I get an Enhanced Cash account?
For now, you will have to create a separate account. The easiest way to do this is by using your same email address and using a +.
Let's say the email address you use is email@example.com. When creating a new account, you would just use firstname.lastname@example.org. By adding the +cash, it still goes to your email address.
Go through creating and funding your account as normal, and then message us requesting your account to be an enhanced cash account once completed. You can email us at email@example.com or by using the in-app chat functionality.
What else should I know?
It is important to know that this is not a bank account. There is the risk of principal loss. However, we believe the risk is low. These funds are run by large fund managers and are invested in fairly vanilla bonds, like commercial paper, T-bills, etc.
The fixed-income funds included in Round’s Cash strategy are required to report a 30-day yield metric. SEC 30 Day Yield is computed under an SEC standardized formula based on the net investment income for the most recent 30-day period being annualized and then divided by the offering price at month-end. The yield does not necessarily reflect income actually earned and distributed by a fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.
The weighted average SEC 30 Day Yield figure presented (“Weighted Yield”) is presented solely for informational purposes. The Weighted Yield assumes a 65% initial target allocation to Guggenheim’s Ultra Short Duration Fund, with a 1.71% SEC 30 Day Yield, and a 35% initial target allocation to DoubleLine’s Ultra Short Bond Fund, with a 2.01% SEC 30 Day Yield. The initial target allocation percentage to each fund is as of 5/15/2020 for Round’s Cash Strategy under the Round Premium program. The above initial target allocations toward each fund can change without notice, including the funds within Round’s Cash Strategy. The SEC 30 Day Yield for each fund is as of 4/30/2020 and was sourced from Guggenheim and DoubleLine’s websites. Round does not guarantee the accuracy, adequacy, or completeness of such information. The SEC 30 Day Yield can change and should not be interpreted as an expected return. There is no guarantee that a specific fund will provide their stated SEC 30 Day Yield over any given period of time. Additional information about the funds can be made available by emailing firstname.lastname@example.org.
The Weighted Yield is not net of Round Premium’s program fee. Round’s program fee will reduce your return. Round also offers another program, Round Private Client, which may have a higher or lower program fee compared to Round Premium depending on the amount of assets under management of a client account within such program.
Refer to Round's Form ADV Part 2 for more information regarding programs, investment strategies, risks, fees and expenses.
Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC.
The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. The opinions expressed by Round represent the current, good faith views of Round and are provided for limited purposes, are not definitive investment advice and should not be relied upon as such.
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