The Saratoga International Equity Portfolio was essentially flat during the fourth quarter of 2016. The cyclical rotation that began last quarter continued through the end of the year, driving relative outperformance. During the quarter, Energy, Financials, Materials and Consumer Discretionary all outperformed, while Consumer Staples, Healthcare, REITs, and Utilities each underperformed. Stock selection within Industrials was the largest sector contributor to quarterly performance. From a country perspective, stock selection in Japan was the largest contributor to performance. On the other hand, stock selection within the UK was the largest detractor from performance. Stock selection within Materials was also a headwind.
Major macro surprises and rapid style rotation during the quarter contributed to relatively high portfolio turnover. We started the year with an overweight in Financials, but finished the year underweight. On the heels of strong performance in China, we reduced the Portfolio’s exposure, resulting in an underweight position as we enter 2017. The process currently continues to lead us to new opportunities in Latin America and South Africa and underweights in Asia.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.