During the second quarter of 2019, global bond yields remained under pressure. It is remarkable to us that there are as many government bonds around the world yielding less than 0% today as there were three years ago when the Fed Funds rate was 0.5%. The US 10-year Treasury slipped back below 2% during the quarter, last seen in 2016. Low and falling interest rates usually have a negative impact on the net interest margins that banks and other financial institutions can earn through lending and investing activities. Despite this, the Financial Services sector significantly outpaced the broad market averages during the quarter, with outperformance concentrated in the first month of the quarter. Within the Saratoga Financial Services Portfolio, Insurance was the top performing industry group on an absolute basis, while Banks were the weakest performing industry group; Regional banks were one of the weaker performing industries. The portfolio is positioned with an underweight to Diversified Banks (the largest banks) and an overweight to Regional Banks, which was a headwind in the quarter._____________________________
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. 7/19 © Saratoga Capital Management, LLC; All Rights Reserved.