<PAGE>
THE SARATOGA ADVANTAGE TRUST
SEMI-ANNUAL REPORT
AS OF FEBRUARY 28, 1995
TABLE OF CONTENTS
President's Letter. . . . . . . . . . . . . . . . . . . . Page 1
Investment Review . . . . . . . . . . . . . . . . . . . . Page 2
Schedules of Investments. . . . . . . . . . . . . . . . . Page 9
Statements of Assets and Liabilities. . . . . . . . . . . Page 23
Statements of Operations. . . . . . . . . . . . . . . . . Page 24
Statements of Changes in Net Assets . . . . . . . . . . . Page 25
Notes to Financial Statements . . . . . . . . . . . . . . Page 26
Financial Highlights. . . . . . . . . . . . . . . . . . . Page 28
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS
AND TO OTHERS WHO HAVE RECEIVED A COPY OF THE PROSPECTUS.
<PAGE>
TRUSTEES AND OFFICERS
Joseph M. La Motta Trustee, Chairman
Bruce E. Ventimiglia Trustee, President
Lacy B. Herrmann Trustee
George Loft Trustee
Patrick H. McCollough Trustee
Jay J. Abbes Vice President
Scott C. Kane Vice President
Stephen Ventimiglia Vice President
Sheldon Siegel Treasurer
Deborah Kaback Secretary
Leslie Klein Assistant Treasurer
Thomas E. Duggan Assistant Secretary
INVESTMENT MANAGER DISTRIBUTOR
Saratoga Capital Management Quest for Value
33 Maiden Lane Distributors
New York, N.Y. 10038 P.O. Box 3567
Church Street Station
New York, NY 10277-1296
TRANSFER AND SHAREHOLDER SERVICING AGENT CUSTODIAN
State Street Bank and State Street Bank and
Trust Company Trust Company
P.O. Box 8505 P.O. Box 351
Boston, MA 02266 Boston, MA 02101
<PAGE>
THE SARATOGA ADVANTAGE TRUST
Semi-Annual Report to Shareholders
April 21, 1995
Dear Shareholder:
We are pleased to submit this semi-annual report on the investment strategies
and performance of the portfolios in The Saratoga Advantage Trust.
This report covers the six months from the Trust's inception through February
28, 1995, a period of mixed investment returns. Generally positive returns were
recorded in the U.S. stock and bond markets during this period of time. U.S.
stocks provided a total return of 4.0%, as measured by the Standard & Poor's 500
Index, while the total return for bonds was 2.7%, as gauged by the Lehman
Intermediate Government/Corporate Bond Index. On the other hand, international
stocks were down 8.1%, as reported by the Morgan Stanley Europe, Australia and
Far East Index (EAFE).
Financial markets inevitably go through cycles, with various types of securities
providing different rates of return over time. The Saratoga Advantage Trust
consists of seven portfolios that allow investors to diversify across different
asset classes and investment styles.
The portfolios are managed by some of the world's leading institutional
investment advisory firms. Each of the advisors has been selected on the basis
of their: investment philosophy, research capabilities, long-term investment
performance, organizational stability and other key factors.
Specific information on each of the portfolios can be found in the pages that
follow. During the Trust's introductory period, all fees and expenses have been
paid by the Trust's manager, resulting in increased returns to our shareholders.
We encourage you to speak with your financial advisor if you have any questions
about your investment in the Trust or your allocation of assets among the
portfolios.
We remain dedicated to providing a high level of service and investment
performance. We appreciate your support and look forward to earning your
continued confidence. Thank you for investing with us.
Sincerely,
/s/ Bruce E. Ventimiglia
Bruce E. Ventimiglia
President and Chief Executive Officer
<PAGE>
U.S. GOVERNMENT MONEY MARKET PORTFOLIO
Advised by:
Sterling Capital Management
Charlotte, North Carolina
OBJECTIVE: SEEKS MAXIMUM CURRENT INCOME, CONSISTENT WITH THE MAINTENANCE OF
LIQUIDITY AND THE PRESERVATION OF CAPITAL. THE PORTFOLIO INVESTS EXCLUSIVELY IN
SHORT-TERM SECURITIES AND RELATED REPURCHASE AGREEMENTS ISSUED BY THE UNITED
STATES GOVERNMENT, ITS AGENCIES AND INSTRUMENTALITIES.
7-Day Compound Yield, February 28, 1995:
U.S. Government Money 90 Day T-Bills
Market Portfolio Average Discount Yield
- --------------------- ----------------------
6.12% 5.77%
By taking advantage of changes in short-term interest rates and utilizing a
variety of sectors within the short-term government market, Sterling Capital
Management seeks to maximize the Portfolio's yield while maintaining a constant
net asset value of $1.00 per share.
The Portfolio was invested entirely in U.S. agency discount notes as of February
28, 1995, due to higher yields versus Treasury bills. The average dollar-
weighted portfolio maturity was 11.6 days, compared with a maximum allowable
average maturity of 90 days. Although the economy is slowing, Sterling Capital
believes the Federal Reserve could possibly raise interest rates again.
Consequently, by maintaining a very short average maturity, there is greater
flexibility to reinvest assets at higher yields should interest rates increase.
SHARES OF THE U.S. GOVERNMENT MONEY MARKET PORTFOLIO ARE NOT GUARANTEED OR
INSURED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE U.S.
GOVERNMENT MONEY MARKET PORTFOLIO WILL BE ABLE TO MAINTAIN A CONSTANT NET ASSET
VALUE OF $1.00 PER SHARE.
2
<PAGE>
INVESTMENT QUALITY BOND PORTFOLIO
Advised by:
Fox Asset Management, Inc.
Little Silver, New Jersey
OBJECTIVE: SEEKS CURRENT INCOME AND REASONABLE STABILITY OF PRINCIPAL THROUGH
INVESTMENT IN A DIVERSIFIED PORTFOLIO OF INVESTMENT QUALITY, ACTIVELY MANAGED
FIXED INCOME SECURITIES.
Total aggregate return, September 1, 1994 - February 28, 1995:
Lehman Intermediate
Investment Quality Bond Government/Corporate Bond
Portfolio Index
- ----------------------- -------------------------
1.8% 2.7%
The Portfolio seeks to provide high income by investing primarily in investment-
grade bonds with maturities between two and 10 years. In the semi-annual
period ended February 28, 1995, the Portfolio distributed dividends of $.30 per
share.
Investments are normally divided approximately evenly between U.S. Government
and corporate securities. However, because corporates offer virtually no yield
advantage over U.S. Governments at this time, the Portfolio is currently
invested primarily in U.S. Government securities.
Fox Asset Management's goal is to provide superior returns with low risk.
Currently, it is concerned about the possibility of higher interest rates and
has therefore adopted a cautious investment stance to preserve principal. The
average maturity of the securities in the Portfolio was 3.7 years and the
average duration was 2.6 years at the end of February, well toward the shorter
end of the target maturity range.
The average weighted coupon in the Portfolio was 6.5% at the end of February,
and the average yield to maturity was 6.9%.
1. The Lehman Intermediate Government/Corporate Bond Index is composed of the
bonds in the Lehman Government/Corporate Bond Index that have maturities between
1 and 9.99 years. The Lehman Government/Corporate Bond Index consists of
approximately 5,400 issues. The securities must be investment grade (BAA or
higher) with amounts outstanding in excess of $1 million and have at least one
year to maturity. Total return comprises price appreciation/depreciation and
income as a percentage of the original investment. The indexes are rebalanced
monthly by market capitalization.
3
<PAGE>
MUNICIPAL BOND PORTFOLIO
Advised by:
Quest for Value Advisors
New York, New York
OBJECTIVE: SEEKS A HIGH LEVEL OF INTEREST INCOME EXEMPT FROM FEDERAL INCOME
TAXATION, CONSISTENT WITH PRUDENT INVESTMENT MANAGEMENT AND THE PRESERVATION OF
CAPITAL.
Total aggregate return, September 1, 1994 - February 28, 1995:
Municipal Bond Portfolio Lehman Municipal Bond Index
- ------------------------ ---------------------------
0.6% 3.5%
The Portfolio paid cash dividends totaling $.27 per share in the semi-annual
period ended February 28, 1995.
The municipal bond market has rebounded sharply since mid-November, following a
difficult market environment through most of 1994. Quest for Value currently
sees good value in municipal securities. Not only is there a projected shortage
of new issue supply in 1995, which could help support prices, but the budgetary
conditions of many state and local governments are improving.
The Portfolio is invested in a diversified group of municipal bonds with an
average weighted maturity of 19.4 years. As of February 28, 1995, 96% of the
Portfolio's investments were rated single A or higher by Standard & Poor's or
Moody's, indicating the high quality of the Portfolio. The four largest sectors
represented in the Portfolio were: water, 24.1%; housing, 17.3%; general
obligation, 13.8%; and education, 10.4%. The Portfolio is also diversified by
state, with the largest positions in securities of state and local governments
as follows: New York, 18.2%; Texas, 14.0%; Iowa, 11.9%; Massachusetts, 9.9%; and
Florida, 7.4%.
1. The Lehman Brothers Municipal Bond Index consists of approximately 25,000
municipal bonds which are selected to be representative of the long-term,
investment grade tax-exempt bond market. The bonds selected for the index have
the following characteristics: a minimum credit rating of at least Baa; an
original issue of at least $50 million; at least $3 million of the issue
outstanding; issued within the last five years; and a maturity of at least one
year.
4
<PAGE>
LARGE CAPITALIZATION VALUE PORTFOLIO
Advised by:
Quest for Value Advisors
New York, New York
OBJECTIVE: SEEKS TOTAL RETURN CONSISTING OF CAPITAL APPRECIATION AND DIVIDEND
INCOME BY INVESTING IN A DIVERSIFIED PORTFOLIO OF COMMON STOCKS THAT ARE
BELIEVED TO BE UNDERVALUED IN THE MARKET AND OFFER ABOVE-AVERAGE PRICE
APPRECIATION POTENTIAL.
Total aggregate return, September 1, 1994 - February 28, 1995:
Large Capitalization Value
Portfolio S & P 500 Index(1) S & P/Barra Value Index(2)
- -------------------------- ------------------ --------------------------
5.5% 4.0% 2.2%
The Portfolio beat the S&P 500 and the S&P Barra Value Index as a result of
favorable stock selection. Strong performers in the Portfolio included
Hercules, Inc., McDonnell Douglas Corp., Intel Corp. and EXEL Ltd.
The Portfolio invests in stocks that are believed to be mispriced in the market.
Companies are evaluated from a merchant banking approach -- as if the company as
a whole is a purchase candidate. In this way, Quest for Value Advisors seeks to
identify undervalued businesses that produce high returns on equity, generate
large free cash flows, hold strong competitive positions, are sound financially
and have managements that are devoted to the interests of shareholders.
As of February 28, 1995, the average return on equity of Portfolio companies was
well in excess of the average return on equity of the S&P 500 companies, while
the average price-earnings ratio of the stocks in the Portfolio was considerably
lower than the price-earnings ratio of the S&P 500. Quest for Value believes
this combination of high earning power and low relative market price helps
protect against severe price declines and offers opportunity for significant
investment profit.
The Portfolio owned the common stock of 29 companies as of February 28, 1995.
The five largest holdings were May Department Stores Co., a leading retailer;
McDonnell Douglas Corp., the largest U.S. manufacturer of military aircraft and
an important competitor in commercial aircraft; Citicorp, the nation's largest
bank holding company; EXEL, Ltd., a strongly capitalized specialty insurance
company; and General Electric Co., a diversified company with strong earnings
growth.
1. The Standard & Poor's 500 is a capital weighted index representing the
aggregate market value of the common equity of 500 stocks primarily traded on
the NYSE. These 500 stocks are composed of 400 industrial, 40 utility, 40
financial, and 20 transportation companies. The weight of each stock in the
index is proportional to its price times its shares outstanding. The Standard &
Poor's 500 is an unmanaged index and includes the reinvestment of all dividends.
2. The S&P/Barra Value Index is constructed by dividing the stocks in the S&P
500 Index according to price-to-book ratios. This unmanaged Index contains
stocks with lower price-to-book ratios and is market capitalization weighted.
5
<PAGE>
LARGE CAPITALIZATION GROWTH PORTFOLIO
Advised by:
Harris Bretall Sullivan & Smith, Inc.
San Francisco, California
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING IN A DIVERSIFIED PORTFOLIO OF
COMMON STOCKS THAT, IN THE ADVISOR'S OPINION, HAVE FASTER EARNINGS GROWTH
POTENTIAL THAN THE STANDARD & POOR'S 500.
Total aggregate return, September 1, 1994 - February 28, 1995:
Large Capitalization
Growth Portfolio S & P 500 Index(1) S & P/Barra Growth Index(2)
- --------------------- ------------------ ---------------------------
5.8% 4.0% 5.7%
Harris Bretall Sullivan & Smith analyzes a universe of approximately 300
established, high-quality, growth-oriented companies and ranks them based on
present value, trends in current earnings and price performance. The Portfolio
is invested in stocks that rank in the top one-fifth of this universe.
All investment decisions are made through a team approach. The Harris Bretall
Strategy Team, which meets four times a week, sets the firm's economic framework
and reviews specific holdings, recent news announcements and company data.
At the end of February, the Portfolio was invested in 43 stocks. Technology is
a major investment theme of the Portfolio. The advisor believes that technology
is revolutionizing industry and creating exceptional opportunities for astute
managements. The Portfolio is invested not only in companies that are
developing new technologies, but also in those that are using technology to gain
market share.
As of February 28, 1995, approximately one-quarter of the Portfolio was invested
in technology developers, including Microsoft Corp., Motorola, Inc., Intel Corp.
and Hewlett-Packard Co. Additionally, Portfolio companies using technology to
competitive advantage included: Home Depot, Inc., which is benefiting from a
sophisticated inventory management system; Charles Schwab Corp., which is
providing on-line services to clients; and Sensormatic Electronics Corp., which
is employing technology to help retailers solve theft problems.
1. The Standard & Poor's 500 is a capital weighted index representing the
aggregate market value of the common equity of 500 stocks primarily traded on
the NYSE. These 500 stocks are composed of 400 industrial, 40 utility, 40
financial, and 20 transportation companies. The weight of each stock in the
index is proportional to its price times its shares outstanding. The Standard &
Poor's 500 is an unmanaged index and includes the reinvestment of all dividends.
2. The S&P/Barra Growth Index is constructed by dividing the stocks in the S&P
500 Index according to price-to-book ratios. This unmanaged Index contains
stocks with higher price-to-book ratios and is market capitalization weighted.
6
<PAGE>
SMALL CAPITALIZATION PORTFOLIO
Advised by:
Axe Houghton Associates, Inc.
Rye Brook, New York
OBJECTIVE: SEEKS MAXIMUM CAPITAL APPRECIATION BY INVESTING IN A DIVERSIFIED
PORTFOLIO OF COMMON STOCKS OF SMALL CAPITALIZATION GROWTH COMPANIES.
Total aggregate return, September 1, 1994 - February 28, 1995:
Small Capitalization Portfolio Russell 2000 Index(1)
- ------------------------------ ---------------------
1.1% 0.6%
Although the common stocks of smaller companies underperformed large-
capitalization companies in the six months ended February 28, 1995, they have
historically outperformed large-capitalization issues over time, albeit with
greater volatility. Axe-Houghton focuses on smaller companies with projected
earnings growth rates and returns on equity twice that of the overall stock
market. In managing the Portfolio, Axe-Houghton invests in companies with
market capitalizations (that is, the total market value of a company's common
stock) up to $1 billion and will hold existing positions up to $2 billion. The
average market capitalization of Portfolio companies at February 28, 1995, was
approximately $500 million and the median capitalization was $340 million.
The Portfolio owned the common stock of 43 companies at the end of February.
Technology and healthcare were two of the industry sectors that helped drive
Portfolio performance during the period. Nonetheless, holdings were diversified
across a range of companies and industry groups, with no one stock representing
more than 3.5% of net assets.
Some of the Portfolio's representative holdings at the end of February included:
Century Telephone Enterprises, a local telephone company in Arizona; Kohl's
Corp., a midwest department store; La Quinta Inns, Inc., a hotel chain; and
Thomas Nelson, Inc., which publishes bibles and other religious books. Each of
these companies is characterized by high rates of growth, favorable returns on
equity and continued reinvestment in their businesses.
1. The Russell 2000 Index is comprised of the 2,000 smallest U.S. domiciled
publicly traded commons stocks which are included the Russell 3000 Index. The
common stocks included in the Russell 2000 Index represent approximately 10% of
the U.S. equity market as measured by market capitalization. The Russell 3000
Index is an unmanaged index of the 3,000 largest U.S. domiciled publicly traded
common stocks by market capitalization representing approximately 98% of the
U.S. publicly traded equity market. The Russell 2000 Index is an unmanaged
index whose performance reflects reinvested dividends.
7
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
Advised by:
Ivory & Sime Inc.
Edinburgh, Scotland
OBJECTIVE: SEEKS CAPITAL APPRECIATION BY INVESTING PRIMARILY IN A DIVERSIFIED
PORTFOLIO OF SECURITIES OF COMPANIES HEADQUARTERED OUTSIDE THE UNITED STATES.
Total aggregate return, September 1, 1994 - February 28, 1995:
International Equity Portfolio Morgan Stanley EAFE Index
(U.S. Dollars)(1)
- ------------------------------ -------------------------
(13.7%) (8.1%)
The six months ended February, 1995 was a difficult period for investors in
international securities, as stock markets in many nations were buffeted by
economic concerns and currency turmoil. Morgan Stanley's Europe, Australia and
Far East Index (EAFE), a widely followed benchmark, understated the degree of
price declines in international securities, since it does not include Mexico and
other Latin American markets, which were especially hard-hit. The performance
of the Portfolio was dampened by a large investment position in Japan.
Ivory & Sime focuses on areas of the world outside the United States that are
expected to experience superior economic growth. Individual stock selections
are based on detailed fundamental analysis and a strong emphasis on visiting the
companies in which investments are made.
As of February 28, 1995, the Portfolio was invested as follows: 37.4% in Japan;
16.8% on the European continent; 15.3% in the United Kingdom; 7.3% in Asia other
than Japan; 1.1% in Latin America; and 22.1% in cash equivalents. Despite the
severe decline of the Japanese stock market during this six-month period, Ivory
& Sime believes Japan remains one of the most attractive growth markets in the
world and expects a significant recovery over time. The firm also sees good
investment opportunities at reasonable prices in Hong Kong and the United
Kingdom.
Some of the Portfolio's holdings at the end of February included: Hopewell
Holdings Ltd., a Hong Kong based property developer and contractor; Roche
Holdings Ltd., a Swiss pharmaceuticals company which recently acquired Syntex;
and BET Plc, a diversified British company that is recovering from overexpansion
in the 1980s.
1. The Europe, Australia, Far East Index (EAFE) is a widely recognized index
prepared by Morgan Stanley Capital International. This unmanaged index
consists of non-U.S. companies which are listed on one of twenty foreign markets
and assumes the reinvestment of dividends. The Gross Domestic Product (GDP)
version of the index is used above.
8
<PAGE>
THE SARATOGA ADVANTAGE TRUST
U.S. GOVERNMENT MONEY MARKET PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
<C> <S> <C>
FEDERAL HOME LOAN BANK-38.7%
$330,000 5.85%, 3/08/95............................................. $329,624
395,000 5.87%, 3/14/95............................................. 394,163
---------------
Total Federal Home Loan Bank
(cost--$723,787)........................................... $723,787
---------------
FEDERAL HOME LOAN MORTGAGE CORPORATION-36.1%
$214,000 5.85%, 3/02/95............................................. $213,965
390,000 5.90%, 3/02/95............................................. 389,936
70,000 5.90%, 3/08/95............................................. 69,920
---------------
Total Federal Home Loan Mortgage Corporation
(cost--$673,821)........................................... $673,821
---------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-21.6%
$405,000 5.87%, 3/27/95
(cost--$403,283)........................................... $403,283
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$1,800,891)...................................... 96.4% $1,800,891
Other Assets in Excess of
Other Liabilities........................................ 3.6 66,597
--------------- ---------------
TOTAL NET ASSETS .......................................... 100.0% $1,867,488
--------------- ---------------
--------------- ---------------
</TABLE>
9
<PAGE>
THE SARATOGA ADVANTAGE TRUST
INVESTMENT QUALITY BOND PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
<C> <S> <C>
CORPORATE NOTES & BONDS - 19.0%
AUTOMOTIVE - 2.3%
$25,000 Ford Motor Credit Co.
7.75%, 10/01/99 ........................................... $25,019
---------------
ENERGY- 3.2%
10,000 Amoco Canada Petroleum Co.
7.25%, 12/01/02 ........................................... 9,799
25,000 E.I. Dupont De Nemours & Co.
8.50%, 2/15/03 ............................................ 26,059
---------------
35,858
---------------
MISCELLANEOUS FINANCIAL SERVICES - 4.8%
50,000 Lehman Brothers, Inc.
9.875%, 10/15/00 .......................................... 52,457
---------------
UTILITIES - 8.7%
100,000 Tennessee Valley Authority
6.875%, 1/15/02 ........................................... 96,374
---------------
Total Corporate Notes & Bonds
(cost -- $208,767)......................................... $209,708
---------------
U.S. TREASURY NOTES - 78.1%
$180,000 4.75%, 10/31/98 ........................................... $167,119
400,000 6.50%, 11/30/96 ........................................... 398,564
300,000 6.75%, 5/31/99 ............................................ 296,766
---------------
Total U.S. Treasury Notes
(cost -- $851,667)......................................... $862,449
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$1,060,434)........................................ 97.1% $1,072,157
Other Assets in Excess of
Other Liabilities......................................... 2.9 31,856
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $1,104,013
--------------- ---------------
--------------- ---------------
</TABLE>
10
<PAGE>
THE SARATOGA ADVANTAGE TRUST
MUNICIPAL BOND PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
<C> <S> <C>
MUNICIPAL NOTES & BONDS - 90.1%
ALABAMA - 4.6%
POLLUTION CONTROL - 2.3%
$10,000 Alabama Water Pollution Control Authority
Pollution Control Revenue
6.25%, 8/15/14............................................. $10,143
---------------
WATER/SEWER - 2.3%
10,000 Montgomery, Alabama Waterworks and Sewer
Systems Revenue (Series B)
6.30%, 9/01/10............................................. 10,215
---------------
20,358
---------------
CALIFORNIA - 4.5%
EDUCATION - 2.3%
10,000 California State Public Works
Various Community College Projects
6.00%, 12/01/12............................................ 10,091
---------------
WATER/SEWER - 2.2%
10,000 San Francisco, California Public Utilities
Community Water Revenue (Series A)
6.00%, 11/01/15............................................ 9,836
---------------
19,927
---------------
CONNECTICUT - 4.6%
HOUSING
20,000 Connecticut State Housing Finance Authority
Housing Mortgage Financing Program
6.50%, 5/15/18............................................. 20,156
---------------
FLORIDA - 7.4%
EDUCATION - 2.3%
10,000 Dade County Florida School Board
Certificates of Participation (Series A)
6.00%, 5/01/14............................................. 10,056
---------------
GENERAL OBLIGATION - 1.1%
5,000 Florida State Board of Education Capital Outlay
6.625%, 6/01/17............................................ 5,237
---------------
TURNPIKE/TOLL - 4.0%
20,000 Orlando & Orange County, Florida
Expressway Authority Revenue (Series A)
5.00%, 7/01/17............................................. 17,599
---------------
32,892
---------------
ILLINOIS - 2.1%
HEALTH/HOSPITAL
10,000 Illinois Health Facilities Authority Revenue
Lutheran Health System (Series A)
6.00%, 4/01/18 ............................................ 9,020
---------------
IOWA - 11.9%
WATER/SEWER
50,000 West Des Moines, Iowa
Water Revenue Bonds
6.80%, 12/01/13 ........................................... 52,509
---------------
11
<PAGE>
THE SARATOGA ADVANTAGE TRUST
MUNICIPAL BOND PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
MASSACHUSETTS - 9.9%
GENERAL OBLIGATION - 2.2%
$10,000 Boston, Massachusetts
General Obligation Bonds (Series B)
5.875%, 8/01/12............................................ $9,962
---------------
HOUSING - 2.3%
10,000 Massachusetts State Housing Finance Agency
Single Family
6.35%, 6/01/17 ............................................ 9,969
---------------
WATER/SEWER - 5.4%
Massachusetts State Water Resources Authority
15,000 5.50%, 11/01/15 (Series B)................................. 13,949
10,000 5.75%, 8/01/10 (Series A).................................. 9,939
---------------
23,888
---------------
43,819
---------------
NEW JERSEY - 2.3%
WATER/SEWER
10,000 Gloucester County, New Jersey
Utilities Authority Sewer Revenue
6.125%, 1/01/13............................................ 10,098
---------------
NEW YORK - 18.2%
GENERAL OBLIGATION - 4.5%
20,000 New York City
General Obligation Bonds (Series B)
7.00%, 10/01/19............................................ 20,052
---------------
HEALTH/HOSPITAL - 2.3%
10,000 New York State Medical Care Facilities
Mental Health Services (Series F)
6.25%, 2/15/10 ............................................ 9,980
---------------
HOUSING - 4.6%
20,000 New York State Mortgage Agency Revenue Bonds (Series A)
6.875%, 4/01/17 ........................................... 20,446
---------------
SALES TAX - 2.3%
10,000 New York State Local Government Assistance Corp.
6.25%, 4/01/18 ............................................ 10,013
---------------
TURNPIKE/TOLL - 4.5%
10,000 New York State Thruway Authority
Service Contract Revenue
6.00%, 4/01/10 ............................................ 9,834
10,000 Triborough Bridge & Tunnel Authority
Service Contract Revenue
6.00%, 1/01/15 ............................................ 10,019
---------------
19,853
---------------
80,344
---------------
PUERTO RICO - 2.3%
POWER/UTILITY
10,000 Puerto Rico Electric Power Authority
Power Revenue (Series R)
6.25%, 7/01/17............................................. 10,048
---------------
12
<PAGE>
THE SARATOGA ADVANTAGE TRUST
MUNICIPAL BOND PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
TEXAS - 14.0%
CORRECTIONAL FACILITIES - 2.3%
$10,000 East Texas Criminal Justice Facilities
City of Henderson Project
6.125%, 11/01/14........................................... $10,128
---------------
EDUCATION - 5.8%
10,000 University of Texas
Permanent University Funding (Series A)
6.25%, 7/01/13............................................. 10,163
15,000 University of Texas Revenue Bonds (Series B)
6.75%, 8/15/13............................................. 15,667
---------------
25,830
---------------
GENERAL OBLIGATION - 5.9%
25,000 San Antonio, Texas
General Obligation Bonds
6.625%, 8/01/14............................................ 26,001
---------------
61,959
---------------
WASHINGTON - 2.4%
POWER/UTILITY
10,000 Washington State Public Power Supply Systems (Series B)
7.25%, 7/01/12............................................. 10,699
---------------
WYOMING - 5.9%
HOUSING
25,000 Wyoming Community Development
Authority Housing Revenue
6.65%, 12/01/06............................................ 26,203
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$387,160)......................................... 90.1% $398,032
Other Assets in Excess of
Other Liabilities........................................ 9.9 43,931
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $441,963
--------------- ---------------
--------------- ---------------
</TABLE>
13
<PAGE>
THE SARATOGA ADVANTAGE TRUST
LARGE CAPITALIZATION VALUE PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
<C> <S> <C>
SHORT-TERM CORPORATE
NOTES - 10.1%
MISCELLANEOUS FINANCIAL SERVICES
$215,000 Federal National Mortgage Association
5.84%, 3/07/95
(cost-$214,791)............................................ $214,791
---------------
SHARES
---------------
COMMON STOCKS - 83.0%
AEROSPACE - 10.2%
1,820 AlliedSignal, Inc. ........................................... $69,160
3,100 Coltec Industries, Inc.* ..................................... 53,087
1,700 McDonnell Douglas Corp. ...................................... 95,200
---------------
217,447
---------------
BANKING - 6.8%
2,100 Citicorp...................................................... 94,500
1,335 Mellon Bank Corp. ............................................ 50,897
---------------
145,397
---------------
CHEMICALS - 5.5%
780 Hercules, Inc. ............................................... 34,222
1,050 Monsanto Co. ................................................. 83,212
---------------
117,434
---------------
CONGLOMERATES - 4.4%
1,700 General Electric Co. ......................................... 93,288
---------------
CONSUMER PRODUCTS - 5.7%
1,760 Hasbro, Inc. ................................................. 55,440
3,000 Mattel, Inc. ................................................. 67,125
---------------
122,565
---------------
DRUGS & MEDICAL PRODUCTS - 2.0%
840 Becton Dickinson & Co. ....................................... 44,100
---------------
ELECTRONICS - 3.1%
1,580 Arrow Electronics, Inc.* ..................................... 65,570
---------------
HEALTH/HOSPITAL - 2.9%
1,500 Columbia/HCA Healthcare Corp. ................................ 62,063
---------------
INSURANCE - 14.2%
600 American International Group, Inc. ........................... 62,250
2,210 EXEL Ltd. .................................................... 94,201
250 General Reinsurance Corp. .................................... 32,562
1,680 Progressive Corp., Ohio....................................... 65,310
1,160 UNUM Corp. ................................................... 49,300
---------------
303,623
---------------
MISCELLANEOUS FINANCIAL SERVICES - 8.8%
2,300 Countrywide Credit Industries, Inc. .......................... 37,375
1,150 Federal Home Loan Mortgage Corp. ............................. 66,700
600 Federal National Mortgage Assoc. ............................. 46,275
1,310 John Alden Financial Corp. ................................... 37,663
---------------
188,013
---------------
RAILROAD - 3.1%
1,000 Norfolk Southern Corp. ....................................... 66,125
---------------
14
<PAGE>
THE SARATOGA ADVANTAGE TRUST
LARGE CAPITALIZATION VALUE PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
SHARES VALUE
--------------- ---------------
RETAIL - 10.8%
2,750 May Department Stores Co. .................................... $100,375
1,000 Mercantile Stores Co., Inc. .................................. 41,625
2,100 Penney (J. C.) & Co., Inc. ................................... 90,038
---------------
232,038
---------------
TECHNOLOGY - 3.2%
850 Intel Corp. .................................................. 67,787
---------------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 2.3%
580 PepsiCo, Inc. ................................................ 22,693
980 Sara Lee Corp. ............................................... 25,725
---------------
48,418
---------------
Total Common Stocks
(cost--$1,633,772)......................................... $1,773,868
---------------
Total Investments
(cost--$1,848,563)....................................... 93.1% $1,988,659
Other Assets in Excess of
Other Liabilities........................................ 6.9 148,519
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $2,137,178
--------------- ---------------
--------------- ---------------
<FN>
-----------------------------------------------------------
* Non-income producing security.
</TABLE>
15
<PAGE>
THE SARATOGA ADVANTAGE TRUST
LARGE CAPITALIZATION GROWTH PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
SHARES VALUE
--------------- ---------------
<C> <S> <C>
COMMON STOCKS - 90.7%
BANKING - 6.8%
930 BankAmerica Corp. ............................................ $44,756
885 NationsBank Corp. ............................................ 44,140
1,740 Norwest Corp. ................................................ 44,805
---------------
133,701
---------------
CHEMICALS - 4.2%
700 Great Lakes Chemical Corp. ................................... 42,088
1,425 Morton International, Inc. ................................... 41,681
---------------
83,769
---------------
COMPUTER SERVICES - 9.2%
1,420 Adobe Systems, Inc. .......................................... 50,765
1,200 Autodesk, Inc. ............................................... 47,100
1,235 Cisco Systems, Inc.*.......................................... 41,681
1,020 Sybase, Inc.*................................................. 41,565
---------------
181,111
---------------
CONGLOMERATES - 2.2%
800 General Electric Co. ......................................... 43,900
---------------
DRUGS/MEDICAL PRODUCTS - 6.9%
665 Amgen, Inc.*.................................................. 45,885
1,205 Genzyme Corp. ................................................ 46,694
10 Genzyme Corp. - Tissue Repair................................. 40
1,030 Merck & Co., Inc. ............................................ 43,646
---------------
136,265
---------------
ELECTRONICS - 4.6%
2,575 American Power Conversion Corp.*.............................. 46,189
390 Hewlett - Packard Co. ........................................ 44,850
---------------
91,039
---------------
ENTERTAINMENT - 2.2%
805 The Walt Disney Co. .......................................... 42,967
---------------
FOOD SERVICES - 2.3%
2,255 Brinker International, Inc.*.................................. 44,818
---------------
INSURANCE - 4.2%
390 American International Group, Inc. ........................... 40,463
985 United Healthcare Corp. ...................................... 42,355
---------------
82,818
---------------
MACHINERY/ENGINEERING - 2.3%
1,350 Stewart & Stevenson Services, Inc. ........................... 44,550
---------------
MANUFACTURING - 2.2%
850 Tyco International Ltd. ...................................... 44,306
---------------
MEDIA/BROADCASTING - 6.7%
480 Capital Cities/ABC, Inc. ..................................... 42,480
815 Gannet Company, Inc. ......................................... 44,825
805 Tribune Co. .................................................. 44,979
---------------
132,284
---------------
MISCELLANEOUS FINANCIAL SERVICES - 8.9%
1,070 Dean Witter, Discover and Co. ................................ 43,201
1,415 Equifax, Inc. ................................................ 43,688
640 First Financial Management Corp. ............................. 44,240
1,000 Schwab (Charles) Corp. ....................................... 44,375
---------------
175,504
---------------
16
<PAGE>
THE SARATOGA ADVANTAGE TRUST
LARGE CAPITALIZATION GROWTH PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
SHARES VALUE
--------------- ---------------
RETAIL - 12.5%
1,385 Albertson's, Inc. ............................................ $42,589
1,270 Gap, Inc. .................................................... 41,275
895 Home Depot, Inc. ............................................. 40,163
1,755 Office Depot, Inc.*........................................... 41,023
1,677 Staples, Inc.*................................................ 40,667
175 Stride Rite Corp. ............................................ 2,253
1,430 Toys "R" Us, Inc.*............................................ 39,861
---------------
247,831
---------------
SECURITY/INVESTIGATION - 2.1%
1,470 Sensormatic Electronics Corp. ................................ 41,711
---------------
TECHNOLOGY - 13.4%
1,075 Cabletron Systems, Inc.*...................................... 42,597
2,170 Electronic Arts, Inc.*........................................ 46,655
565 Intel Corp. .................................................. 45,059
675 Microsoft Corp.*.............................................. 42,525
760 Motorola, Inc. ............................................... 43,700
1,305 Silicon Graphics, Inc.*....................................... 45,186
---------------
265,722
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$1,686,043)....................................... 90.7% $1,792,296
Other Assets in Excess of
Other Liabilities........................................ 9.3 184,179
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $1,976,475
--------------- ---------------
--------------- ---------------
<FN>
------------------------------------------------------------
*Non - income producing security.
</TABLE>
17
<PAGE>
THE SARATOGA ADVANTAGE TRUST
SMALL CAPITALIZATION PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
SHARES VALUE
--------------- ---------------
<C> <S> <C>
COMMON STOCKS - 89.3%
AIRLINES - 1.2%
1,300 ValuJet Airlines, Inc. *...................................... $37,537
---------------
AUTOMOTIVE - 3.4%
3,000 Wabash National Corp. ........................................ 106,500
---------------
BUILDING & CONSTRUCTION - 3.8%
5,000 Cavalier Homes, Inc. ......................................... 59,375
5,200 Southern Energy Homes, Inc. *................................. 58,500
---------------
117,875
---------------
COMPUTER SERVICES - 3.6%
4,200 Metatec Corp. (Class A) *..................................... 54,600
3,000 Minnesota Educational Computing Corp. *....................... 58,500
---------------
113,100
---------------
CONSUMER PRODUCTS - 1.8%
4,400 Inbrand Corp. *............................................... 55,000
---------------
DRUGS & MEDICAL PRODUCTS - 6.0%
1,400 Omnicare, Inc. ............................................... 68,075
2,000 Respironics, Inc. *........................................... 59,750
1,800 Steris Corp. *................................................ 59,625
---------------
187,450
---------------
ELECTRONICS - 2.0%
4,000 Methode Electronics, Inc. (Class A)........................... 63,000
---------------
HEALTHCARE SERVICES - 6.3%
2,000 Integrated Health Services, Inc. ............................. 76,500
2,400 MedPartners, Inc. *........................................... 42,000
3,000 Sun Healthcare Group, Inc. *.................................. 76,875
---------------
195,375
---------------
HOUSEHOLD PRODUCTS - 1.7%
1,400 Department 56, Inc. *......................................... 54,250
---------------
LEISURE - 5.8%
2,200 Cobra Golf, Inc. *............................................ 71,638
1,600 Coleman Co., Inc. *........................................... 56,400
2,000 Harley-Davidson, Inc. ........................................ 54,000
---------------
182,038
---------------
LODGING - 7.5%
3,200 Hospitality Franchise Systems, Inc. *......................... 90,800
3,430 LaQuinta Inns, Inc. .......................................... 85,321
2,800 ShoLodge, Inc. *.............................................. 58,100
---------------
234,221
---------------
MANUFACTURING - 1.8%
3,200 Special Devices, Inc. *....................................... 54,400
---------------
MISCELLANEOUS FINANCIAL SERVICES - 1.5%
1,260 Green Tree Financial Corp. ................................... 48,195
---------------
PERSONNEL SERVICES - 6.5%
1,600 Alternative Resources Corp. *................................. 54,000
3,000 Norrell Corp. ................................................ 59,250
2,600 Olsten Corp. ................................................. 89,375
---------------
202,625
---------------
18
<PAGE>
THE SARATOGA ADVANTAGE TRUST
SMALL CAPITALIZATION PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
SHARES VALUE
--------------- ---------------
PRINTING/PUBLISHING - 5.0%
1,600 Scholastic Corp. *............................................ $80,800
3,000 Thomas Nelson, Inc. .......................................... 73,500
---------------
154,300
---------------
RECREATION - 3.7%
2,400 Players International, Inc. *................................. 57,600
3,600 Sodak Gaming, Inc. *.......................................... 57,600
---------------
115,200
---------------
RETAIL - 12.3%
2,000 Barnes & Noble, Inc. *........................................ 59,000
2,000 Kohl's Corp. *................................................ 82,000
2,000 Micro Warehouse, Inc. *....................................... 57,500
2,600 Sunglass Hut International, Inc. *............................ 71,175
2,800 The Men's Wearhouse, Inc. *................................... 57,050
2,400 Tractor Supply Co. *.......................................... 55,800
---------------
382,525
---------------
TECHNOLOGY - 7.9%
2,400 California Microwave, Inc. *.................................. 70,200
2,600 Digital Link Corp. *.......................................... 61,100
2,600 Electronic Arts, Inc. *....................................... 55,900
2,400 Spectrian Corp. *............................................. 58,500
---------------
245,700
---------------
TELECOMMUNICATIONS - 5.6%
3,000 ALC Communications Corp. *.................................... 88,500
2,800 Century Telephone Enterprises................................. 87,150
---------------
175,650
---------------
TRANSPORTATION - 1.9%
3,000 Rural/Metro Corp. *........................................... 57,750
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$2,689,178)....................................... 89.3% $2,782,691
Other Assets in Excess of
Other Liabilities........................................ 10.7 334,029
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $3,116,720
--------------- ---------------
--------------- ---------------
<FN>
-----------------------------------------------------------
* Non-income producing security.
</TABLE>
19
<PAGE>
THE SARATOGA ADVANTAGE TRUST
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
SHARES VALUE
--------------- ---------------
<C> <S> <C>
COMMON STOCKS - 77.9%
ARGENTINA - 0.3%
TELECOMMUNICATIONS
200 Telefonica de Argentina ADR................................... $3,725
---------------
BRAZIL - 0.3%
TELECOMMUNICATIONS
130 Telecomunicacoes Brasileiras Sponsored ADR.................... 3,705
---------------
CHILE - 0.5%
METALS/MINING
290 Embotelladora Andina SA ADR................................... 6,960
---------------
FINLAND - 1.4%
TELECOMMUNICATIONS
265 Nokia Corp. ADR............................................... 18,735
---------------
FRANCE - 3.5%
AUTOMOTIVE- 1.2%
334 Valeo SA Sponsored ADR........................................ 15,930
---------------
OIL/GAS - 1.0%
396 Elf Acquitaine ADR............................................ 14,197
---------------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 1.3%
566 LVMH Moet Hennessy Louis Vuitton ADR.......................... 18,183
---------------
48,310
---------------
GERMANY - 2.8%
BANKING - 1.4%
40 Deutsche Bank AG ADR.......................................... 19,599
---------------
MACHINERY - 1.4%
65 Mannesmann AG ADR............................................. 18,821
---------------
38,420
---------------
HONG KONG - 3.9%
CONGLOMERATES - 0.9%
560 Hutchison Whampoa Ltd. ADR.................................... 11,879
---------------
REAL ESTATE - 3.0%
3,000 Cheung Kong Holdings Ltd. ADR................................. 13,077
4,000 Hopewell Holdings Ltd. Sponsored ADR.......................... 15,262
2,000 Sun Hung Kai Properties Ltd. ADR.............................. 13,452
---------------
41,791
---------------
53,670
---------------
INDONESIA - 2.1%
TELECOMMUNICATIONS
800 Indonesian Satellite ADR *.................................... 28,500
---------------
ITALY - 1.2%
TELECOMMUNICATIONS
585 Stet Societa Finanziaria Telefonica Sponsored ADR............. 16,236
---------------
JAPAN - 37.4%
BANKING - 6.3%
209 Mitsubishi Trust & Banking Corp. ADR.......................... 29,611
230 Sakura Bank Ltd. ADR.......................................... 27,591
160 Sumitomo Bank Ltd. ADR........................................ 29,122
---------------
86,324
---------------
20
<PAGE>
THE SARATOGA ADVANTAGE TRUST
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
SHARES VALUE
--------------- ---------------
JAPAN (CONT'D)
BUILDING & CONSTRUCTION - 3.8%
248 Asahi Glass ADR............................................... $27,442
380 Taisei Construction Ltd. ADR.................................. 24,443
---------------
51,885
---------------
CONGLOMERATES - 1.9%
1,190 Mitsubishi Corp. Sponsored ADR................................ 25,598
---------------
ELECTRONICS - 8.9%
210 Kyocera Corp. ADR............................................. 27,300
270 Secom Ltd. ADR................................................ 28,592
175 Sharp Corp. ADR............................................... 24,975
495 Sony Corp. ADR................................................ 21,594
870 Victor Co. Japan Ltd. ADR..................................... 19,254
---------------
121,715
---------------
MANUFACTURING - 1.8%
180 Bridgestone Corp. ADR......................................... 24,572
---------------
METALS/MINING - 1.7%
650 Kawasaki Steel Corp. Sponsored ADR............................ 23,258
---------------
MISCELLANEOUS FINANCIAL SERVICES - 1.9%
145 Nomura Securities Ltd. ADR.................................... 25,042
---------------
PAPER PRODUCTS - 1.8%
259 OJI Paper Ltd. ADR............................................ 24,749
---------------
PHOTOGRAPHY - 1.7%
315 Canon, Inc. ADR............................................... 23,586
---------------
REAL ESTATE - 1.5%
199 Mitsubishi Estate Co. Ltd. ADR................................ 20,065
---------------
RETAIL - 1.9%
144 Ito-Yokado Co. Ltd. ADR....................................... 26,064
---------------
TELECOMMUNICATIONS - 2.1%
795 Nippon Telegraph & Telephone Corp. ADR *...................... 29,216
---------------
TEXTILES/APPAREL - 2.1%
425 Asahi Chemical Industries Ltd. ADR............................ 28,085
---------------
510,159
---------------
LUXEMBURG - 1.1%
BANKING
1,285 Espirito Santo Financial Holdings ADR......................... 14,938
---------------
MALAYSIA - 1.3%
ENTERTAINMENT
2,000 Genting Berhad SH Malay ADR................................... 17,313
---------------
NETHERLANDS - 2.6%
PRINTING/PUBLISHING
470 Wolters Kluwer NV Sponsored ADR............................... 35,215
---------------
SPAIN - 1.4%
BANKING
1,630 Banco Central Hispanoamer SA ADR.............................. 18,541
---------------
21
<PAGE>
THE SARATOGA ADVANTAGE TRUST
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
SHARES VALUE
--------------- ---------------
SWEDEN - 1.3%
CONSUMER PRODUCTS
366 Electrolux AB ADR............................................. $18,483
---------------
SWITZERLAND - 1.5%
DRUGS & MEDICAL PRODUCTS
365 Roche Holdings Ltd. Sponsored ADR............................. 20,120
---------------
UNITED KINGDOM - 15.3%
BANKING - 1.4%
500 Barclays Plc. ADR............................................. 19,313
---------------
CONGLOMERATES - 2.4%
2,500 BET Plc. ADR.................................................. 16,563
840 BTR Plc. ADR.................................................. 16,646
---------------
33,209
---------------
DRUGS & MEDICAL PRODUCTS - 1.3%
870 Glaxo Plc. ADR................................................ 17,509
---------------
LEISURE - 1.1%
1,270 Rank Organisation Plc. ADR.................................... 15,081
---------------
MANUFACTURING - 2.3%
3,300 Blue Circle Industries Plc. Sponsored ADR..................... 13,350
1,200 Tomkins Plc. ADR.............................................. 17,700
---------------
31,050
---------------
OIL/GAS - 1.2%
250 Shell Transport & Trading Plc. ADR............................ 16,750
---------------
PRINTING/PUBLISHING - 1.1%
2,300 Bowater Plc. ADR.............................................. 14,375
---------------
TELECOMMUNICATIONS - 1.3%
1,000 Cable & Wireless Plc. ADR..................................... 17,875
---------------
TEXTILES/APPAREL - 1.0%
1,700 Coats Viyella Plc. ADR........................................ 14,265
---------------
TOBACCO/BEVERAGES/FOOD PRODUCTS - 2.2%
1,100 B A T Industries Plc. ADR..................................... 14,575
948 Bass Plc. ADR................................................. 15,050
---------------
29,625
---------------
209,052
---------------
<CAPTION>
<S> <C> <C>
Total Investments
(cost--$1,169,847)....................................... 77.9% $1,062,082
Other Assets in Excess of
Other Liabilities........................................ 22.1 301,329
--------------- ---------------
TOTAL NET ASSETS............................................ 100.0% $1,363,411
--------------- ---------------
--------------- ---------------
<FN>
------------------------------------------------------------
*Non-income producing security.
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
FEBRUARY 28, 1995
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
<TABLE>
<CAPTION>
U.S. Large Large
Government Investment Municipal Capitalization Capitalization Small International
Money Market Quality Bond Bond Value Growth Capitalization Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ --------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost--$1,800,891, $1,060,434,
$387,160, $1,848,563,
$1,686,043, $2,689,178, and
$1,169,847, respectively)..... $1,800,891 $1,072,157 $398,032 $1,988,659 $1,792,296 $2,782,691 $1,062,082
Cash............................ 19,531 -- 24,886 98,769 159,006 332,325 214,637
Deferred organization expenses.. 60,314 60,314 60,314 60,314 60,314 60,314 60,314
Receivable from manager......... 56,770 56,229 59,150 60,360 63,455 64,968 59,098
Receivable for shares of
beneficial interest sold...... 46,165 44,478 12,037 74,875 90,275 204,518 124,505
Receivable for investments sold. -- 101,078 -- -- -- 165,649 --
Interest receivable............. -- 18,172 6,109 -- -- -- --
Dividends receivable............ -- -- -- 3,123 2,057 613 990
Foreign tax receivable.......... -- -- -- -- -- -- 46
---------- ---------- -------- ---------- ---------- ---------- ----------
Total Assets............... 1,983,671 1,352,428 560,528 2,286,100 2,167,403 3,611,078 1,521,672
---------- ---------- -------- ---------- ---------- ---------- ----------
LIABILITIES
Deferred organization payable... 66,199 66,199 66,199 66,199 66,199 66,199 66,199
Administration fee payable...... 20,769 20,769 20,769 20,769 20,769 20,769 20,769
Payable for shares of beneficial
interest redeemed............. -- 44,379 -- 29,119 9,278 17,348 --
Payable for investments
purchased.................... -- 43,919 -- -- 58,779 352,627 39,600
Due to custodian................ -- 44,304 -- -- -- -- --
Other payables and accrued
expenses..................... 29,215 28,845 31,597 32,835 35,903 37,415 31,693
---------- ---------- -------- ---------- ---------- ---------- ----------
Total Liabilities.......... 116,183 248,415 118,565 148,922 190,928 494,358 158,261
---------- ---------- -------- ---------- ---------- ---------- ----------
NET ASSETS
Par value ...................... 1,867 112 45 203 187 309 158
Paid-in-surplus................. 1,865,621 1,095,302 435,681 1,989,369 1,869,663 3,001,457 1,497,276
Accumulated undistributed net
investment income............. -- -- -- 9,262 2,793 976 1,038
Accumulated net realized
gain(loss) on investments..... -- (3,124) (4,635) (1,752) (2,421) 20,465 (27,296)
Net unrealized appreciation
(depreciation) on investments. -- 11,723 10,872 140,096 106,253 93,513 (107,765)
---------- ---------- -------- ---------- ---------- ---------- ----------
TOTAL NET ASSETS........... $1,867,488 $1,104,013 $441,963 $2,137,178 $1,976,475 $3,116,720 $1,363,411
---------- ---------- -------- ---------- ---------- ---------- ----------
---------- ---------- -------- ---------- ---------- ---------- ----------
Shares of beneficial interest
outstanding.................. 1,867,488 111,894 45,170 203,464 187,076 308,686 158,115
---------- ---------- -------- ---------- ---------- ---------- ----------
Net asset value and offering
price per share.............. $1.00 $9.86 $9.77 $10.50 $10.57 $10.10 $8.62
---------- ---------- -------- ---------- ---------- ---------- ----------
---------- ---------- -------- ---------- ---------- ---------- ----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
FOR THE PERIOD SEPTEMBER 2, 1994 (COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1995
STATEMENTS OF OPERATIONS (unaudited)
<TABLE>
<CAPTION>
U.S. Large Large
Government Investment Municipal Capitalization Capitalization Small International
Money Market Quality Bond Bond Value Growth Capitalization Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ --------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends....................... $ -- $ -- $ -- $ 8,947 $4,588 $4,094 $2,153
Interest........................ 22,042 22,259 7,580 6,857 -- -- --
------------ ------------ --------- -------------- -------------- -------------- -------------
Total investment income....... 22,042 22,259 7,580 15,804 4,588 4,094 2,153
------------ ------------ --------- -------------- -------------- -------------- -------------
OPERATING EXPENSES
Management fees (note 2a)....... 1,875 1,976 759 3,481 3,336 4,986 3,101
Administration fees (note 2c)... 20,769 20,769 20,769 20,769 20,769 20,769 20,769
Transfer and dividend disbursing
agent fees.................... 19,200 19,200 19,200 19,200 19,200 19,200 19,200
Amortization of deferred
organization expenses (note 1c) 6,599 6,599 6,599 6,599 6,599 6,599 6,599
Auditing fees................... 3,734 3,734 4,178 3,734 3,734 3,734 4,723
Reports and notices to
shareholders.................. 2,473 2,473 2,473 2,473 2,473 2,473 2,473
Custodian fees.................. 1,895 1,569 4,281 5,392 8,535 9,700 3,343
Legal fees...................... 742 742 742 742 742 742 742
Registration fees............... 598 383 148 692 644 991 489
Miscellaneous................... 760 760 760 760 760 760 760
------------ ------------ --------- -------------- -------------- -------------- -------------
Total operating expenses...... 58,645 58,205 59,909 63,842 66,792 69,954 62,199
Less: Management fees waived
and expense reimbursements
(note 2a).................. (58,645) (58,205) (59,909) (63,842) (66,792) (69,954) (62,199)
------------ ------------ --------- -------------- -------------- -------------- -------------
Net operating expenses..... 0 0 0 0 0 0 0
------------ ------------ --------- -------------- -------------- -------------- -------------
Net investment income.... 22,042 22,259 7,580 15,804 4,588 4,094 2,153
------------ ------------ --------- -------------- -------------- -------------- -------------
REALIZED AND UNREALIZED
GAIN(LOSS) ON INVESTMENTS-NET
Net realized gain (loss) on
investments................... -- (3,124) (4,635) (1,752) (2,421) 20,465 (27,296)
Net unrealized appreciation
(depreciation) on investments. -- 11,723 10,872 140,096 106,253 93,513 (107,765)
------------ ------------ --------- -------------- -------------- -------------- -------------
Net realized gain (loss) and
unrealized appreciation
(depreciation) on investments -- 8,599 6,237 138,344 103,832 113,978 (135,061)
------------ ------------ --------- -------------- -------------- -------------- -------------
Net increase (decrease) in net
assets resulting from
operations ................... $22,042 $30,858 $13,817 $154,148 $108,420 $118,072 ($132,908)
------------ ------------ --------- -------------- -------------- -------------- -------------
------------ ------------ --------- -------------- -------------- -------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
FOR THE PERIOD SEPTEMBER 2, 1994 (COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1995
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
U.S. Large Large Inter-
Government Investment Municipal Capitalization Capitalization Small national
Money Market Quality Bond Bond Value Growth Capitalization Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ --------- -------------- -------------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income. . . . . . . . . $22,042 $22,259 $7,580 $15,804 $4,588 $4,094 $2,153
Net realized gain (loss) on
investments. . . . . . . . . . . . . -- (3,124) (4,635) (1,752) (2,421) 20,465 (27,296)
Net unrealized appreciation
(depreciation) on investments. . . . -- 11,723 10,872 140,096 106,253 93,513 (107,765)
---------- ---------- ---------- ---------- --------- --------- ---------
Net increase (decrease) in net
assets resulting from operations . 22,042 30,858 13,817 154,148 108,420 118,072 (132,908)
---------- ---------- ---------- ---------- --------- --------- ---------
DIVIDENDS TO SHAREHOLDERS
Net investment income. . . . . . . . . (22,042) (22,259) (7,580) (6,542) (1,795) (3,118) (1,115)
---------- ---------- ---------- ---------- --------- --------- ---------
SHARE TRANSACTIONS OF BENEFICIAL
INTEREST
Net proceeds from sales. . . . . . . 1,792,893 1,426,420 571,243 2,305,675 2,451,207 3,211,324 1,700,192
Reinvestment of dividends. . . . . . . 21,923 20,817 7,520 6,455 1,761 2,947 1,106
Cost of shares redeemed. . . . . . . . (47,328) (351,823) (143,037) (322,558) (583,118) (212,505) (203,864)
---------- ---------- --------- ---------- --------- --------- ---------
Net increase in net assets from
share transactions of beneficial
interest . . . . . . . . . . . . . 1,767,488 1,095,414 435,726 1,989,572 1,869,850 3,001,766 1,497,434
---------- ---------- ---------- ---------- --------- --------- ---------
Total increase in net assets . . 1,767,488 1,104,013 441,963 2,137,178 1,976,475 3,116,720 1,363,411
NET ASSETS
Beginning of period. . . . . . . . . . 100,000 0 0 0 0 0 0
---------- ---------- ---------- ---------- --------- --------- ---------
End of period (including
undistributed net
investment income of $0, $0, $0,
$9,262, $2,793, $976 and $1,038,
respectively). . . . . . . . . . . .$1,867,488 $1,104,013 $441,963 $2,137,178 $1,976,475 $3,116,720 $1,363,411
---------- ---------- ---------- ---------- --------- --------- ---------
---------- ---------- ---------- ---------- --------- --------- ---------
SHARES OF BENEFICIAL INTEREST
ISSUED AND REDEEMED
Issued . . . . . . . . . . . . . . . . 1,792,893 145,663 59,744 234,648 244,543 330,073 180,775
Issued from reinvestment of
dividends . . . . . . . . . . . . . . 21,923 2,132 786 669 176 304 118
Redeemed . . . . . . . . . . . . . . . (47,328) (35,901) (15,360) (31,853) (57,643) (21,691) (22,778)
---------- ---------- ---------- ---------- --------- --------- ---------
Net increase . . . . . . . . . . . . 1,767,488 111,894 45,170 203,464 187,076 308,686 158,115
---------- ---------- ---------- ---------- --------- --------- ---------
---------- ---------- ---------- ---------- --------- --------- ---------
DIVIDENDS PER SHARE
Net investment income. . . . . . . . . $0.024 $0.298 $0.271 $0.047 $0.013 $0.014 $0.009
---------- ---------- ---------- ---------- --------- --------- ---------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
FEBRUARY 28, 1995
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Saratoga Advantage Trust (the "Trust") was organized on April 8, 1994
as a Delaware Business Trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open - end management investment company.
The Trust consists of seven Portfolios: the U.S. Government Money Market
Portfolio; the Investment Quality Bond Portfolio; the Municipal Bond Portfolio;
the Large Capitalization Value Portfolio; the Large Capitalization Growth
Portfolio; the Small Capitalization Portfolio and the International Equity
Portfolio. Saratoga Capital Management (the "Manager") serves as the Trusts'
manager. Each of the Portfolios are provided with discretionary advisory
services of an Adviser identified, retained, supervised and compensated by the
Manager. The following serve as Advisers (the "Advisers") to their respective
portfolio(s): Quest for Value Advisors - Municipal Bond and Large Capitalizaton
Value; Fox Asset Management, Inc. - Investment Quality Bond; Harris Bretall
Sullivan & Smith, Inc. - Large Capitalization Growth; Axe - Houghton Associates,
Inc. - Small Capitalization; Sterling Capital Management Company - U.S.
overnment Money Market and Ivory & Sime International, Inc. - International
Equity. Quest for Value Advisors (the "Administrator") provides the Trust with
administrative services. Quest for Value Distributors (the "Distributor") serves
as the Trusts' distributor. The Manager, Administrator and Distributor are all
affiliates of Oppenheimer Capital. On August 19, 1994, U.S. Government Money
Market issued 100,000 shares to the Manager for $100,000 to provide the initial
capital for the Trust.
The following is a summary of significant accounting policies consistently
followed by each Portfolio in the preparation of its financial statements:
(a) VALUATION OF INVESTMENTS
Investment securities listed on a national securities exchange and
securities traded in the over - the - counter National Market System are valued
at the last reported sale price on the valuation date; if there are no such
reported sales, the securities are valued at the last quoted bid price. Other
securities traded over - the - counter and not part of the National Market
System are valued at the last quoted bid price. Investment debt securities
(other than short - term obligations) are valued each day by an independent
pricing service approved by the Board of Trustees using methods which include
current market quotations from a major market maker in the securities and trader
- - reviewed "matrix" prices. Short - term debt securities having a remaining
maturity of sixty days or less are valued at amortized cost or amortized value,
which approximates market value. Any securities or other assets for which market
quotations are not readily available are valued at their fair value as
determined in good faith under procedures established by the Trusts' Board of
Trustees. The ability of issuers of debt securities held by the portfolios to
meet their obligations may be affected by economic or political developments in
a specific state, industry or region. U.S. Government Money Market values all of
its securities on the basis of amortized cost which approximates market value.
(b) FEDERAL INCOME TAX
It is each Portfolio's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable and tax - exempt income to
shareholders; accordingly, no federal income tax provision is required.
(c) DEFERRED ORGANIZATION EXPENSES
In connection with the Trusts' organization, each Portfolio incurred
approximately $67,000 in costs. These costs have been deferred and are being
amortized to expense on a straight - line basis over sixty months from
commencement of operations.
(d) SECURITY TRANSACTIONS AND OTHER INCOME
Security transactions are accounted for on the trade date. In determining
the gain or loss from the sale of securities, the cost of securities sold is
determined on the basis of identified cost. Dividend income is recorded on the
ex - dividend date and interest income is accrued as earned. Discounts or
premiums on debt securities purchased are accreted or amortized to interest
income over the lives of the respective securities.
(e) DIVIDENDS AND DISTRIBUTIONS
The following table summarizes each Portfolio's dividend and capital gain
declaration policy:
<TABLE>
<CAPTION>
INCOME SHORT-TERM LONG-TERM
DIVIDENDS CAPITAL GAINS CAPITAL GAINS
-----------------------------------------------------
<S> <C> <C> <C>
U.S. Government Money Market daily * annually annually
Investment Quality Bond daily * annually annually
Municipal Bond daily * annually annually
Large Capitalization Value annually annually annually
Large Capitalization Growth annually annually annually
Small Capitalization annually annually annually
International Equity annually annually annually
<FN>
* paid monthly
</TABLE>
Each Portfolio records dividends and distributions to its shareholders on
the ex - dividend date.
(f) ALLOCATION OF EXPENSES
Expenses specifically identifiable to a particular Portfolio are borne by
that Portfolio. Other expenses are allocated to each Portfolio based on its net
assets in relation to the total net assets of all the applicable Portfolios or
another reasonable basis.
2. MANAGEMENT FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(a) The management fees, payable monthly to the Manager, are computed
daily at the following annual rates of each Portfolios' average daily net
assets: .475% for U.S. Government Money Market; .55% for Investment Quality Bond
and Municipal Bond; .65% for Large Capitalization Value, Large Capitalization
Growth and Small Capitalization; and .75% for International Equity.
For the period September 2, 1994 (commencement of operations) to
February 28, 1995, the Manager has voluntarily waived all management fees and
reimbursed the Portfolios for all other operating expenses.
26
<PAGE>
FEBRUARY 28, 1995
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(b) The Manager pays a portion of its management fees to the Advisers at
the following annual rates of each Portfolios' average daily net assets: .125%
for U.S. Government Money Market; .20% for Investment Quality Bond and Municipal
Bond; .30% for Large Capitalization Value, Large Capitalization Growth and Small
Capitalization and .40% for International Equity.
(c) The administration fee is accrued daily and payable monthly to the
Administrator at an annual rate of $42,000 for each Portfolio, provided that
each Portfolio's net assets do not exceed $80 million. In the event that a
Portfolio's net assets exceed $80 million, an additional fee of .05% of net
assets in excess of $80 million shall be payable by the Portfolio. For the
period September 2, 1994 (commencement of operations) to February 28, 1995 each
Portfolio accrued $20,769 in administrative fees.
(d) Total brokerage commissions paid by Investment Quality Bond, Large
Capitalization Value and Small Capitalization were $317, $2,297 and $2,954,
respectively. Oppenheimer & Co., Inc., an affiliate of the Manager, received
$1,737 from Large Capitalization Value and Hoenig & Co., Inc. an affiliate of
Axe-Houghton Associates, Inc., received $317 and $2,328 from Investment Quality
Bond and Small Capitalization, respectively, for the period September 2, 1994
(commencement of operations) to February 28, 1995.
3. PURCHASE AND SALES OF SECURITIES
For the period September 2, 1994 (commencement of operations) to February
28, 1995, purchases and sales of investment securities, other than short - term
securities, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------------------------
<S> <C> <C>
Investment Quality Bond $1,244,046 $182,849
Municipal Bond 499,162 107,441
Large Capitalization Value 1,660,208 24,685
Large Capitalization Growth 1,756,563 68,087
Small Capitalization 3,383,831 717,218
International Equity 1,316,526 119,383
</TABLE>
For the period September 2, 1994 (commencement of operations) to
February 28, 1995, U.S. Government Money Market had purchases and
sales/maturities of short-term securities of $9,423,849 and $7,645,000,
respectively.
4. UNREALIZED APPRECIATION (DEPRECIATION) AND COST OF INVESTMENTS FOR FEDERAL
INCOME TAX PURPOSES
At February 28, 1995, the composition of unrealized appreciation
(depreciation) of investment securities and the cost of investments for Federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
Appreciation (Depreciation) Net Tax Cost
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Quality Bond $12,704 ($981) $11,723 $1,060,434
Municipal Bond 10,996 (124) 10,872 387,160
Large Capitalization Value 144,870 (4,774) 140,096 1,848,563
Large Capitalization Growth 142,637 (36,384) 106,253 1,686,043
Small Capitalization 142,735 (49,222) 93,513 2,689,178
International Equity 7,178 (114,943) (107,765) 1,169,847
</TABLE>
5. AUTHORIZED SHARES OF BENEFICIAL INTEREST AND PAR VALUE PER SHARE
Each Portfolio has unlimited shares of beneficial interest authorized with
$.001 par value per share.
27
<PAGE>
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)(UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT OPERATIONS DIVIDENDS RATIOS
------------------------ --------- ----------------------------------
NET DIVID-
REALIZED ENDS RATIO RATIO
AND TO OF NET OF NET
NET UN TOTAL HOLDERS OPERATING INVEST-
ASSET REALIZED FROM FROM NET NET EXPENSES MENTS PORT-
VALUE, NET GAIN INVEST- NET ASSET ASSETS TO TO FOLIO
BEGINNING INV- (LOSS) MENTS INVEST- VALUE, TOTAL END OF AVERAGE AVERAGE TURN-
OF MENT ON OPERA- MENTS END OF RE- PERIOD NET NET OVER
PERIOD INCOME MENTS TIONS INCOME PERIOD TURNS* (000) ASSETS 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) $9.86 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) $9.77 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.
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%
<FN>
(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.
- ------------------------------------------------------
(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>
28
