Round outperformed the competition from 2019 through Q1 2020.
Robo-advisors' aggressive strategies had negative returns, Round's most aggressive strategy was up 6.6%.
Our goal is to outperform over the long term, while protecting your capital during risky times. We aim to achieve higher returns than passive Robo and financial advisors.
Round's most aggressive strategy is referring to the Round 75% Core, 20% Market, 5% Cash Portfolio Composite. December 31, 2018 through March 31, 2020.
1) Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. Registration does not imply a certain level of skill or training. Round’s clients consist of separately managed accounts. Policies for valuing portfolios and calculating performance are available upon request.
2) The Round 75% Core, 20% Market, 5% Cash Portfolio Composite (the “Composite”) includes all separately managed wrap fee accounts invested in Round’s most aggressive portfolio allocation (75% Core, 20% Market, 5% Cash Portfolio) from market close of December 31, 2018 to market close of March 31, 2020. The majority of Round’s assets under management are invested in the 75% Core, 20% Market, 5% Cash Portfolio. Refer to Round’s Form ADV Part 2 for more information about the Core, Market, Cash strategies and related risks.
3) Performance returns are presented net of the Round Program Fee defined below. Portfolio returns are calculated daily, reflecting a time weighted return method. Portfolio returns reflect the reinvestment of dividends, capital gain distributions and other income. The Composite returns are cumulative and not annualized.
4) The Composite returns are calculated by averaging the time-weighted returns of Round clients in Round’s 75% Core, 20% Market, 5% Cash Portfolio.
5) The accounts included in the Composite are enrolled in Round’s digital only “Round Premium,” which is subject to an annual wrap fee for brokerage, custodial, investment advisory and other related services (the “Program Fee”), prorated and charged monthly in arrears based on the monthly ending balance in the account. The Program Fee from January 1, 2018 to March 31, 2019 was 1%. As of April 1, 2019, the Program Fee is 0.50%. As of June 1, 2019, Round instituted a policy that if, at the end of a month, an account’s time-weighted return is negative, Round will waive the Program Fee for that month (“No Fee Policy”). All Round accounts in the Composite had a negative time-weighted return for February and March of 2020. In accordance with its No Fee Policy, Round waived the Program Fee for all Round accounts in the Composite for February and March of 2020. Had the Program Fee been charged, reflected performance would have been lower. If one were to upgrade to “Round Private Client” which introduces access to live advisors, a higher asset-based advisory fee schedule may apply, which would decrease reflected performance. Full details about fees and how they are charged can be obtained by emailing firstname.lastname@example.org or by visiting https://intercom.help/investround/en/articles/2990250-fees.
6) Clients that have requested an account closure or do not have an account in good standing have been excluded from the Composite. Results from these excluded accounts may differ substantially from the Composite.
7) The Composite was calculated internally by Round and has not been compiled, reviewed, or audited by an independent third party.
8) For illustrative purposes, the Round Composite is compared to the performance of the following digital advice products, the strategies of which are described by initial target portfolio allocations to equities, fixed income, miscellaneous, and cash (“Illustrative Strategies”). Betterment Digital IRA (87% | 13% | 0% | 0%), Personal Capital IRA (91% | 3% | 2% | 4%), Merrill Edge Guided Investing IRA (89%| 9% | 0% |2%), Morgan Stanley IRA (79% | 15% | 0% | 6%), Wells Fargo IRA (91% | 7%| 0% | 2%), E*Trade IRA (98% | 0% | 0% | 2%), Schwab Intelligent Portfolios IRA (94% | 0% | 0% | 7%).
There are meaningful differences between the Round Composite and the Illustrative Strategies that should be considered when comparing performance. For example, Round measures risk by the level of portfolio allocation towards Round’s Core Strategy. Round’s Core Strategy’s objective is to maximize alpha through dynamic portfolio management. The risky nature of this strategy is due to its susceptibility to poor portfolio management decision making. The Illustrative Strategies measure risk by the level of asset allocation to equity. In addition, the volatility of the Round Composite may be greater or less than that of the Illustrative Strategies. Moreover, the performance of the Round Composite may vary from that of the Illustrative Strategies due to the performance of underlying stock exposures in the Round Composite but not included in the Illustrative Strategies, or the underlying stock exposures in the Illustrative Strategies but not found within underlying exposures in the Round Composite. Actual performance data for each of the Illustrative Strategies are net of fees and cumulative, not annualized.
Performance data was made available by https://www.backendbenchmarking.com/the-robo-report via the Fourth Quarter 2019 The Robo Report™ and First Quarter 2020 The Robo Report™ produced by Backend Benchmarking. The performance data provided was broken up into 2019, and Q1 2020 periods, which were geometrically linked by Round to reflect the time-weighted return method used for the Round Composite over the same time period. Additional information and disclosures regarding the Illustrative Strategies accounts may be found at https://www.backendbenchmarking.com/the-robo-report.
9) The performance presented represents past performance and is not a guarantee of future results. The performance of an individually separately managed account may be different, including as a result of the timing of cash deposits and withdrawals and lack of automatic rebalancing. Performance returns and principal value will fluctuate and may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted. Data is subject to change on a daily basis. 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.
10) Refer to Round’s Form ADV Part 2 for more information regarding investment strategies, risks, fees and expenses.
11) 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. 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.