The Saratoga Advantage Trust’s institutionally managed mutual fund portfolios are designed to work effectively with each investor’s asset allocation strategy – not contravene it.
An investor’s asset allocation strategy determines how much money is invested into different asset classes such as stocks, bonds and money market funds. According to the Financial Analysts Journal, asset allocation is one of the most important decisions that an investor can make. In fact, the Journal reported that about 90% of the variability of investment returns over time is due to asset allocation. This is why the Saratoga Advantage Trust was established to work hand-in-hand with each investor’s asset allocation strategy.
Saratoga Advantage #1:The consistency of institutional investment styles. Each Saratoga mutual fund was formed to represent a single asset class, and each fund's institutional money manager was selected based on their ability to manage money within that class.
Saratoga Advantage #2:Adherence to institutional investment philosophies helps investors answer the question, “whose track record is this?”. Saratoga uses institutional managers to minimize ongoing changes in manager philosophy so that the Saratoga Advantage Trust's portfolios are managed with consistent investment philosophies and disciplines.
Saratoga Advantage #3:Saratoga Capital Management selects institutional managers with specialized investment disciplines; it is part of Saratoga's job to monitor the investment managers on an ongoing basis.