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SUPPLEMENT DATED MAY 12, 1995
TO THE PROSPECTUS DATED
AUGUST 25, 1994 OF THE
SARATOGA ADVANTAGE TRUST
The following language is added to the footnote under the table set
forth under "Summary of Trust Expenses" on page 5:
"The expenses set forth in the above table reflect
voluntary expense limitations currently in effect. During the
period September 2, 1994 (commencement of operations) to February
28, 1995, the Manager waived its management fee and absorbed all
operating expenses of each Portfolio. Without such voluntary
waivers and expense absorptions, the Manager would have waived
fees and expenses so that annual operating expenses as a
percentage of average daily net assets of each Portfolio would
have been 2.50% in order for each Portfolio to comply with state
expense limitations."
The following table is added to page 6:
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
(UNAUDITED)
<TABLE>
<CAPTION>
INCOME FROM
INVESTMENT OPERATIONS
--------------------------------- DIVIDENDS RATIOS
NET ----------- --------------------------------
NET REALIZED DIVIDENDS RATIO OF RATIO OF
ASSET AND TO NET NET NET NET
VALUE, UNREALIZED TOTAL SHAREHOLDERS ASSET ASSETS OPERATING INVESTMENT
BEGINNING NET GAIN (LOSS) FROM FROM NET VALUE, END OF EXPENSES INCOME PORTFOLIO
OF INVESTMENT ON INVESTMENT INVESTMENT END OF TOTAL PERIOD TO AVERAGE TO AVERAGE TURNOVER
PERIOD INCOME INVESTMENTS OPERATIONS INCOME PERIOD RETURN* (000'S) NET ASSETS NET ASSETS RATE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT MONEY MARKET PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $1.000(3) $0.024 $0.000 $0.024 ($0.024) $1.000 2.47% $1,867 0.00%(1,4,5) 5.58%(1,4,5) --
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 14.85% AND (9.27%), RESPECTIVELY.
INVESTMENT QUALITY BOND PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.30 ($0.13) $0.17 ($0.30) $9.87 1.75% $1,104 0.00%(1,4,5) 6.19%(1,4,5) 26%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 16.20% AND (10.01%), RESPECTIVELY.
MUNICIPAL BOND PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.27 ($0.22) $0.05 ($0.27) $9.78 0.61% $442 0.00%(1,4,5) 5.50%(1,4,5) 38%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 43.43% AND (37.93%), RESPECTIVELY.
LARGE CAPITALIZATION VALUE PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.14 $0.41 $0.55 ($0.05) $10.50 5.51% $2,137 0.00%(1,4,5) 2.95%(1,4,5) 3%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 11.92% AND (8.97%), RESPECTIVELY.
</TABLE>
(over)
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LARGE CAPITALIZATION GROWTH PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.04 $0.54 $0.58 ($0.01) $10.57 5.84% $1,976 0.00%(1,4,5) 0.89%(1,4,5) 7%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 13.01% AND (12.12%), RESPECTIVELY.
SMALL CAPITALIZATION PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.03 $0.08 $0.11 ($0.01) $10.10 1.14% $3,117 0.00%(1,4,5) 0.53%(1,4,5) 43%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 9.08% AND (8.55%), RESPECTIVELY.
INTERNATIONAL EQUITY PORTFOLIO
SEPTEMBER 2,
1994(2) TO
FEBRUARY 28,
1995 $10.00(3) $0.02 ($1.39) ($1.37) ($0.01) $8.62 (13.72%) $1,363 0.00%(1,4,5) 0.52%(1,4,5) 16%
(1) DURING THE PERIOD PRESENTED ABOVE, SARATOGA CAPITAL MANAGEMENT HAS VOLUNTARILY WAIVED ALL OF ITS FEES AND REIMBURSED
THE PORTFOLIO FOR ALL OF ITS OPERATING EXPENSES. IF SUCH WAIVERS AND REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE
ANNUALIZED RATIO OF NET OPERATING EXPENSES TO AVERAGE DAILY NET ASSETS AND THE ANNUALIZED RATIO OF NET INVESTMENT
LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 15.04% AND (14.52%), RESPECTIVELY.
<FN>
- ----------------------------------
(2) COMMENCEMENT OF OPERATIONS.
(3) OFFERING PRICE.
(4) AVERAGE DAILY NET ASSETS FOR THE PERIOD ENDED FEBRUARY 28, 1995 WERE
$800,530, $728,607, $279,695, $1,086,072, $1,040,838, $1,555,429 AND
$838,426 FOR U.S. GOVERNMENT MONEY MARKET, INVESTMENT QUALITY BOND,
MUNICIPAL BOND, LARGE CAPITALIZATION VALUE, LARGE CAPITALIZATION GROWTH,
SMALL CAPITALIZATION AND INTERNATIONAL EQUITY, RESPECTIVELY.
(5) ANNUALIZED.
* ASSUMES REINVESTMENT OF ALL DIVIDENDS. AGGREGATE (NOT ANNUALIZED) TOTAL
RETURN IS SHOWN FOR ANY PERIOD SHORTER THAN ONE YEAR.
</TABLE>
The following is added to the section "Custodian and Transfer Agent" on
page 29:
The Shareholder Services Group is the subtransfer agent for certain
retirement plan accounts.
